Monetary Policy in Kuwait Essay Example | Topics and Well Written Essays - 2250 words

Monetary Policy in Kuwait - Essay Example The instruments include means that are available to monetary authorities and that are used to achieve the ultimate aims. Central banks generally use a number of key instruments such as changes in the ratio of legal reserves, the discount rate or the central bank rate, and open market operations. Very often, these instruments are enhanced by using other supplementary instruments, known as direct instruments, generally in the form of instructions issued by the central bank. Direct instruments are much used by developing countries because the nature of the economic problems of these countries and their economic conditions do not allow their monetary authorities to be quite free in applying traditional instruments of monetary policy. It relates to existing legal and institutional procedures, particularly as the interest rate on the Kuwaiti dinar is governed by legal limits, in addition to issues related to the degree of competition inside the banking system. It also relates to the basic features of the Kuwaiti economy, not only as an economy based on the philosophy of free markets and free capital movement, but also as an oil economy of high exposure, depending on imports to meet a major portion of consumption and investment demand. Talking about the monetary policy goals as shown above should not m... Talking about the monetary policy goals as shown above should not mitigate the important role central banks may play in other economic areas, especially in the area of developing money and capital markets in countries where these markets are lacking. The development of such markets will enable central banks to use one of the important instruments of monetary policy, i.e. open market operations. The Central Bank of Kuwait and the organization of banking business specified the goals of the Central Bank of Kuwait, similar to those of central banks in general. The goals related to the function of the monetary policy of the Central Bank of Kuwait can be stated as follows: To endeavour to secure the stability of the Kuwaiti currency and its free convertibility into foreign currencies. To endeavour to direct credit policy in such a manner as to assist economic progress and the growth of the national in-come. To supervise the banking system in the State of Kuwait. Since the mid-eighties the Central Bank of Kuwait has been on a course dictated by the nature of new developments witnessed by the Kuwaiti economy as a result of a number of internal and external effects of the securities market crisis on the whole economic condition, including the emergence of the difficult debt problem as a key issue threatening the financial system in the country. The Central Bank of Kuwait had no alternative but to make the protection of the banking and financial system its top priority and to take necessary measures to identify repercussions of the securities market crisis and prevent the accumulation of its negative effects on both the Kuwait economy and community. Based on the priority of this commitment, the Central Bank adopted a number of measures,

Logitech Essay Example | Topics and Well Written Essays - 1000 words

Logitech - Essay Example The company's retail sales and marketing activities are classified into three geographical divisions namely Americas (including North and South America), Europe-Middle East-Africa, and Asia Pacific. In order to minimize production costs and take advantage of the other benefits of business process outsourcing, it has set up its manufacturing plant in Suzhou, China in 1994. Other productions are outsourced from different countries in Asia. During the fiscal year 2007, it reports revenue of $2.06 million and net income of $.229 million (Logitech Annual Report 2007). The mission statement of Logitech is communicated as follows: "Logitech brings to market tools that enrich the interface between people and information" (Logitech Company Profile 2008) This emphasizes the business organization's commitment in focusing on computer peripherals. However, it should be noted that it did not limit itself to its current lines indicating its openness to changes and willingness to respond to emerging consumer needs. The company' strategic intent can be seen through its growth outlook presented in its 2007 Annual Report. Logitech communicates its major strategy of innovation in order to sustain steady growth and development. The company's goal is to further develop new products and improve existing ones in order to maximize consumers' comfort. Also, the business organization is keen on focusing into growth markets in order to drive revenue. c. Problem Identification The United States is one of the major markets of Logitech. Even though it cannot be possibly identified how much share this market has in the company's revenue, it should be noted that the forecasted economic recession in US will adversely reflect in the company's operation. Logitech thus, needs to take this into in order for it to continue its highly profitable operation. II. Environmental Analysis a. External Environmental Analysis In general, the operation of Logitech is dependent in its ability to introduce innovative products in the market noting that the information technology market is subject to fast product obsolescence. Since the company has global coverage, it is also exposed to the fluctuations in the exchange rates. The weakening of the dollar due to the economic recession makes its income in the United States lower when expressed in Swiss franc. The industry environment of Logitech can be assessed through the use Porter's Five Forces model. Buyers. The evolution of a hypercompetitive business environment heightens the bargaining power of consumers. It should be noted that sales are directly affected by consumer demand. Thus, consumer needs should properly be identified and products should be created to best respond to these needs. Suppliers. Supplier power is also high in the market where Logitech