Service Quality for Retail Banking in the UK Research Proposal

Service Quality for Retail Banking in the UK - Research Proposal Example In a series of papers presented by Parasuraman et al., they propose the model for measuring the quality of service rendered using the five factors or dimensions. These dimensions include tangibles, Reliability, Responsiveness, Assurance and empathy. While tangibles is a measure of the facilities, assets, personnel and other materials in the bank that add to the service provided to the customer, the reliability is the ability to perform the way it was promised. Responsiveness is a measure of the willingness to help customers and provide them with prompt service. Assurance measures the competence, courtesy, credibility and security of the service provided, while the empathy is about the caring and individualised service that the bank provides to its customers. This would help the bank in realising whether its customers are satisfactory on all grounds and whether there are any gaps in the satisfaction level. The metrics would follow the same standard set by the previously referred autho rs. The Gap method of questionnaire will be adopted to measure the service quality of the bank. The objective of the project is to study the existing service levels in the bank and to quantify them by assigning appropriate metrics. This project will be carried out using the following methodology: 1. 1. A detailed literature review will be done initially to understand and assimilate the importance of using Servqual is a measure for measuring service quality. For this extensive reading will be done of papers and books on the subject. This information will be organised to identify the best metrics that could be employed to measure every one of the dimensions listed in the above list. In addition to this, the literature review will also help in identifying the various analysis methods that were employed by various people during their own research activities. The ideal one suited for banks will be identified and marked out for later usage. 2. The literary review will also provide information on the analysis or research done by others in the same area of work. The responses that they obtained and the conclusions that they drew will also be identified and listed. In order to identify these appropriate journals and books will be taken up and the articles, papers and texts will be noted down for reference. Ideas and concepts introduced by them will also be noted down to match with the technique adopted in this program. This will be finally verified while cross checking the results of the program and the reasons for deviation, if any, will also be identified. These justifications will also be listed in the results of the project. 3. In line with the analysis methodology chosen and the metrics identified, a questionnaire for the survey will be framed. This would provide qualitative as well as quantitative data for further analysis. The questionnaire will be framed in such a way that both the customers and the employees are

Case study Example | Topics and Well Written Essays - 1000 words - 32

Case Study Example Printed catalog is the major focus area of IKEA marketing strategy. In fact the company spends most of its marketing budget on this area every year. Catalog entailing 300 to 400 pages is produced in 30 languages in 59 editions. Around 200 million catalog copies were circulated in 2012. In 2013 IKEA catalog incorporated new characteristics of special symbols that could be read by IKEA Android and iPhone apps. When the symbols are scanned, customers are fascinated by the presentation of detailed information about IKEA products. These apps also offer 3D product models and videos explaining ‘how to’ (Copeland and Hartline, 495). Similar real experience applies in the internet as attested by (Copeland and Hartline, 495). Customers are allowed to download programs that guide them in redesigning kitchens, bathroom and bedrooms. Customers can also view products online. Data entailing local events of every store, product and service specials as well as promotions, is also available in the website. This expands customer knowledge of products, services, motivation, events among other concerned business information. However, the drawback with regard to the website is that it does not entirely allow customers to purchase items online. Consumers have to visit the stores to access and purchase products. About 30 percent of the product line is allowed for purchase online. Moreover, in order to reach its target customers, IKEA catalog employs the use of radio, television and communication via the internet. The fact that IKEA lets its consumers to experience shopping experience by themselves, motivates customers towards purchasing items at IKEA stores. The materials that IKEA provides for its customers make it easier to shop. The showrooms in the floor display furniture of the company with several accessories that will make the style noticeable for consumers. This frees the customers from salespersons working on commission, according to Copeland and Hartline, (497). This

Exchange Rate and Inflation in Pakistan Economy

Exchange Rate and Inflation in Pakistan Economy Inflation exchange rate are two main factors of macro-economics. Inflation is an increase in the level of prices of goods services in an economy by the passage of time. Exchange rate is very important factor in economic which impact imports exports of country. A country does not always want the exchange rate to fluctuate because an exchange rate influences the levels of its imports exports, which are the component of fiscal policy. Policy makers want to hold rate at a particular level or within a certain range in order to achieve given domestic policy goals related to the level of growth of GDP. In the perfect mobility the exchange rate movements and an adjustment of goods market is relative to asset market and consistent expectations. The extends that output responds to a monetary expansion in the short run, this acts as an effect on exchange depreciation which lead to an increase in interest rates (Dornbusch, 1976). There are three types of ways which gives stickiness in prices, the prices set by the firms in that currencies, the firms set the prices for currencies of consumers, or firms set the prices in the currencies of producers (Engel, 2001). When the exchange rates changes, the changes appear in the relative prices and make to generate additional uncertainty for equilibrium in markets. However, there is also defining that the changes in terms of trade play the larger role of changes in the exchange rates which affect the variability of exchange rates (Stockman, 1980). Inflation is one of the key indicators of the country and provides important information on the state of the economy and sound macroeconomic policies that govern it. Inflation is the production of the expenses of manner of things arise which leads to the advancement of the last in the price of meals. For example, if the matter is hardy and this leads to the increment of the price of the production of the costs of increasing, and in turn this leads to increasing prices to keep the crowd his profits. The discretionary nature of the existing monetary policy in Pakistan is inflation, and it is targeting to hit on the Pakistani economy by focusing attention on the monetary policy. So the government of Pakistan is to make monetary policy more transparent for achieving the explicit goal, and decreasing the inflation. Therefore, it is increasing the public understanding of the strategy of central bank to deliver the target, so the State Bank of Pakistan helps to provide an anchor for inflati on expectations in the economy. The State Bank of Pakistan (SBP) has achieving a low rate of inflation in a high priority, and also aims to support the national country objectives of Pakistan to meet the economic diversification and competitiveness in the form of export from the world. 1.2 Problem statement This study is to examine the impact of exchange rate on inflation in Pakistan economy. 1.3 Hypothesis H1: The Exchange rate explains the inflation. 1.4 Outline of the Study The variability of industrial production output higher in the regime of fixed exchange rates instead of regime of flexible exchange rates (Flood Hodrick, 1986). The effect of consumption goods purchases by the government is not the private utility, but per capita real government expenditure are the composite of individual consumption of goods. So notice that the demand of money depends on consumption of goods rather than income and that is the important distinction of closed economies (Obstfeld Rogoff, 1995). Pakistan major import is crude oil which is purchased in dollars. If foreign exchange rate increases, it has increased the cost of oil that has adverse impact on the economy of Pakistan. Inflation is also caused by international loans and the national debt. As nations borrow money, have to deal with the interest that the final prices increase as a way to keep up with debts. The main problem of Pakistan is external debt, which has altered the economic balance. The most immediate effect of inflation is the declining purchasing power of the rupee and its depreciation. This study has been helpful for economic policy makers, foreign investors, economic analysts, business students who are interested in macro-economics studies. This study identifies how two macro-economic factors are related with each other. 1.5 Definitions Variables: For this study the following variables have utilized:- Exchange Rates à ¢Ã¢â€š ¬Ã¢â‚¬Å" Independent Variable: The exchange rates are foreign exchange rate between two currencies. Every country has a foreign exchange market and is one of the largest markets in all countries of the world. It converts 3.2 trillion USD currency conversion. It has two types i.e. fixed and floating exchange rates. Meese and Rogoff (1988), it depends on fundamentals such as money supplies, real incomes, interest rates and inflation. Listen Read phonetically Dictionary View detailed dictionary Inflation à ¢Ã¢â€š ¬Ã¢â‚¬Å" Dependent Variable: Inflation has increased the level of prices of commodity, goods and services in an economy by the passage of time. Price inflation measure is the rate of inflation, the annual percentage change in general price index (usually the Consumer Price Index) over time. Effects of inflation on the economy have manifold and simultaneously positive and negative. Negative effects of inflation include a decrease in the real value of money and other monetary items over time, uncertainty over future inflation which discourages investment and savings, and high inflation leads to shortages of goods if consumers begin hoarding out of concern that prices increase in the future. Positive effects include a development of economic recessions, and debt assistance by reducing the real level of debt. CHAPTER 2: LITERATURE REVIEW The analysis of the monetary determinants of inflation is of obvious interest for the nations that pursue a policy of inflation targeting. This study focuses on Pakistani economy that is currently following an Inflation targeting approach or did so in the recent past. Currency stability plays an important role for the monetary authorities in this economy. Exception of real money growth rule is included in the estimation of Phillips curves for the four economies Bayesian model averaging (McCallum, 1999). Entrepreneurs seek stability in the course says that keeps the price of imported items from growth due to rupee depreciation, which is not only support the economy in general, but also producers who use huge amounts of imported cases in the production of exportable surplus. Since the start of this fiscal year, while the rupee has lost about 2.5 percent of its value beside the dollar and its depreciation rate is unlikely to accelerate in the coming months due to continued inflow of foreign capital and funds. Also include the support of IMF, partial release of the fund, a coalition of U.S., which is part of its payment obligations by the Friends of Democratic Pakistan, extremely strong inflow of return of foreign workers of portfolio investments and possible raise up in exports and foreign direct investment in the third quarter of fiscal year. The current stability of the rupee has helped to contain imported inflation and the weakening of inflationary expectations. Bankers expect that trend continues throughout this financial year, a national unit is depreciated more than 7.0-7.5 percent during the entire fiscal year, against 19.5 percent last year. Businesses verify that the bankers are the forward currency cover in accordance with this expectation. What Pakistan needs today is not a platform to launch an à ¢Ã¢â€š ¬Ã…“economic revival programà ¢Ã¢â€š ¬? but what people need is an actual à ¢Ã¢â€š ¬Ã‹Å"economic revival.à ¢Ã¢â€š ¬Ã¢â€ž ¢ The main problem of Pakistan is the foreign debt which has risen to unmanageable proportions in the last decade and the repayment of which has created turbulence in external balance of Pakistan to such an extent that it does not meet its minimum necessary development requirements. At present Pakistan cannot survive without fresh borrowings from foreign donor agencies. As emphasized by Choudhri and Hakura (2006), an important policy debate for the contemporaneous monetary and exchange rate policy implementations is to reveal the degree to which changes in exchange rates or import prices impact or pass-through into domestic consumer prices. Presently there are three rates of exchange i.e. the bank rate, the inter bank rate and the open market rate. The overall effect on the foreign exchange rates should not be more than 5 to 6 per cent as the increased inflow of foreign exchange have neutralize the effect of the increased demand of private imports. If the foreign exchange earners and remitters keep on getting a fair exchange rate for earnings, it is visualized that in the next few years exports can touch the $15 billion mark and overseas Pakistani remittances can fetch $5 billion. It was concluded that the exchange rate feed shock on domestic inflation, first at the level of prices of the manufacturer and then the level of consumer prices and the im pact of shocks on the variables of price the various stages of the supply is different. The purchasing power parity theory doctrine means different things to different people. There are two versions of this theory that is called the à ¢Ã¢â€š ¬Ã‹Å"absoluteà ¢Ã¢â€š ¬Ã¢â€ž ¢ and the à ¢Ã¢â€š ¬Ã‹Å"relativeà ¢Ã¢â€š ¬Ã¢â€ž ¢ interpretation. The first version of purchasing power theory calculated as a ratio of consumer goods prices for any country that has tended to the equilibrium rates of exchange. In the second version of relative interpretation the rate of exchange rate have been determined between the two countries and quoted with general levels of prices of two countries. This version amend the international trade theory which have been the part of PPP, in which the non-traded goods (services) has been introduced, but the advantage is greater in regards of traded goods than non-traded goods, because of the assumptions of marginal rates of transformation. The correlation among purchasing power parity and exchange rates provides the international comparison of national incomes and living standards (Balassa, 1964). Lawrence (1976) gave another review of this purchasing power parity theory. It has define two applications in economics, the first application use of the conversion factor to transfer the data in one national way to another. The use of PPP is mainly the body of (index number theory) and applications of GDP that have improved over the years and path breaking studies in the area continue to appear. The second application of PPP did not have the widespread acceptance, which has remained the unsophisticated applications. Stockman (1980) develops the model of determination of prices of goods and exchange rates. The changes in commodity prices due to supply and demand affect the change in exchange rates by purchasing power parity deviations.The changes in exchange rates have failed to resemble the changes in prices of goods, because exchange rates more volatile than prices levels and inflation rates. The study proposes the equilibrium of exchange rates behavior and different international goods that have been traded. This relationship cannot exploited by the government, because greater the changes in terms of trade the larger the changes in exchange rates variability. The deviations from PPP persists that variation of exchange rates more than ratios of price indexes. The results found the two interpretation of the relationship between exchange rates and terms of trade. In the first, the causes that affect the changes in exchange rates also affect the change in terms of trade because prices of goods do not adjust to clear the markets. This interpretation also found in the research of Dornbusch (1976), and Isard (1977), the analysis formally differentiates the system with respect to exchange rates and allow prices to change but not the changing in asset stocks. The interpretation presented the elasticity approach of the foreign exchange market and the relation between the trade and exchange rates. Real supply and demand shocks affect prices and the derived demand of exchange rates. These changes in demand for foreign exchange result the supply and demand shocks and that should affect the equilibrium of exchange rates. In second interpretation the expected rate of change of exchange rates revealed on the forward foreign exchange market. This should be related the anticipated change in the terms of trade and the inflation differentials. A persuasive argument about the level of exchange rates is only associated with not causes of the relative prices changes. Bilson (1985) gives the empirical findings about macroeconomic and flexible exchange rate of the U.S dollar related to PPP theory. From the perspective of this research, the sluggish price adjustment in the commodity markets resulted in increased variability in exchange rates. For the demonstration of result it is important because the instability of floating exchange rate is due to the inherent differences between commodity and foreign exchange markets. The determination of the expected future rate is impossible, because it is more difficult to reject the forward parity condition. The major part of the forward parity is the variation in the premium is due to the forecast. The object of this study is to determine that if the forward parity failed is the cause of instability in the same way that the failure of purchasing power parity. The findings develop that currency risk premium is the important factor relative to floating rate system, and movement in the exchange rate are dominate d by the non speculative activity and it has the adverse effect on world economy. Meese and Rogoff (1983) analyzed the outcome of sample forecasting accuracy on various models. The study estimated the horizons of the dollar with different country currencies, like Dutch mark, Japanese yen, and Britain pound that traded to weight the dollar exchange rates. It has also studied the flexible exchange rates with the monetary models of sticky price, so the model of sticky price, which incorporates the current account. The first model is structural models in which it requires to generate the forecasts of exchange rates and explanatory variables. It contains the explanatory power, but it is predicted badly because the explanatory variables are difficult to predict. The second is the univariate time series model in which it identifies a variety of prefiltering techniques involves differencing, de-seasonalizing and removing time trends. The relative performance of these techniques is of interest in itself. The third model use is the random walk model. It is also linked with this univariate time series model. It is used as the predictor of the current spot rate with the entire future spot rate, and it requires no estimation. In this study the performance of estimated univariate time series models or candidate structural model is no good instead it is worst. From a methodological stand point the view that the outcome of sample model fit is an important criterion when evaluating exchange rate, but the estimation of out of sample is failure with time series models that are well approximated the major country exchange rates. Feinberg and Kaplan (1992) evaluated and interact the real exchange rates index expectations is developed and used to explore the role of determination on domestic producer prices. The fact that time path of the exchange rate has directly affected the input costs, and the price of substitutes strongly. To examine the links between both actual and anticipated movements in the dollar and relative domestic producer prices, it chooses to analyze price responses to real exchange rate changes. The effect is dependent on the nature of substitutability between imports and domestic goods. The major finding is that the period of appreciation and depreciation over the past 10 years to inhibit the pass through in to domestic prices. In depreciation the market share to enjoy the continued good times kept prices other than expected. The theory of optimum currency areas, which is usually presented by the other name called flexible exchange rate system, but it is proponent as a device of depreciation that takes place of unemployment when the balance of payment is deficit and appreciation when it replaces inflation when it is surplus. The problem can be exposed and more revealed by defining a currency area within when exchange rates are fixed. Three answers can be given, first certain parts of the world are going through the process of economic integration, so new experience can be made and what constitutes the optimum currency area can be given the meaning of these experiments. Second those countries that have flexible exchange rates are likely to face problems with the theory of optimum currency areas, so these do not coincide the optimum currency areas with the national currency. Third the idea that illustrates the functions of currencies which have been treated in economic literature, and sometimes neglected in the problems of economic policy. In the currency area, countries with different currencies including national country currencies interact pace of employment in deficit, because there is the haveingness to inflation by the surplus countries. The argument for flexible exchange rate system is based on national currencies, and is valid about mobility of factor, so if it is high in the country and low in the foreign countries, the flexible exchange rates system on home country currencies has to work effectively. The concept of optimum currency area has practically applicable only in those areas, where the state has the political organization in the country. The factor mobility is most considered and is more relative rather than absolute concept, with both industrial and geographical factors. It is likely to change the alterations with time over time in conditions, with the conditions of political and economic stability. Money is the convenience that restricts the optimum number of curre ncies, so in terms of this argument the optimum currency area which is composed in number of countries (Mundell, 1961). In another review, the author defines the stabilization of capital mobility policy under the exchange rates which is fixed and flexible in the currencies markets. It concerns the theoretical and practical approach of the increased mobility of capital. Obstfeld and Rogoff (1995) analyses the global macroeconomic dynamics to supply framework based on competition and nominal prices. The effects of macroeconomic policies on output and exchange rates have not been yet persuaded to abandon. The framework which integrated exchange rates dynamics and current account yields is a new perspective, it realize that when prices are sticky the government should spend on shock raises short run output and long run output. The assumption is that home and foreign government purchases the consumption goods that do not directly affect the private utility, but the per capita real government consumption expenditure is a composite consumption of individual goods. It explains that the composite consumption for the services is to balance the opportunity cost and notice that the money depends on consumption rather than income, that distinction is more important in closed economies. The results of this study develop framework that give new foundations about some of the fundamentals problems in international finance. It realizes that the existing Keynesian model is incomplete to offer a satisfactory treatment of exchange rates, output and the current account, but the model which is used in this study is more complex, because it yields simple and intuitive insights of monetary and fiscal policies. It can be extended in a number of dimensions, including non traded goods, market behavior, government spending, and labor market distortions and so on. It goes beyond the essentially statistical approach that handles the current account and exchange rates issues, most importantly this approach allows to analyze the welfare implications of policies. Melvin (1985) has regarded and focused that how the choice of an exchange rate system can affect the stability of the economy. The appropriate nature of the exchange rate system has differed of the disturbance to the economy. It presented the evidence that indicate that the approach is more consistent according to practice by actual country. The other approach is to reach the desirable price stability, in which some mechanism tells the floating rates superiority has become less in the face of monetary shocks. It finds that the flexibility in exchange rates depends not on openness and less important in the mobility of capital, but its positive effects were found for the economic development. The purpose of this study is to consider the determinants of exchange rates system choice, which indicates the theoretical approach with the country choices. The result found that the choice of an exchange rate system has the role of the disturbance to the economy. It suggests that the money shock s are the key of exchange rate system choice in an economy, in which it seeks to minimize the fluctuations in the country price levels. It also suggests that the greater the price shocks the more is a float, so it affects greatly domestic money shocks. Lothian and Taylor (1996) examine the real exchange rate behavior, and explain the variations in sample of stationary univariate equations in real exchange rates. The study investigates the additional insight in the exchange rates behavior that can be gained by considering the floating rate from the perspective of the data. These issues can be best understood on the subject of real exchange rates stability among the currencies of the major developed countries. Some of the pre-float studies support the fairly stable exchange rates in the long run. Subsequently, Dornbusch (1976), and Frenkel (1981), gave largely as the result of studies published, and reject the hypothesis of random walk performance of real exchange rates. The PPP shows the empirical movements in real exchange rates were highly persistent and effective. Although the PPP is reject the hypothesis of non-stationary behavior of exchange rates in long run. The result of this study shows that the longest span of two countrie s exchange rates are significantly mean reverting. The first model result indicates the 80 percent of the variation in the exchange rates of the history data of two countries. By using of another model, the results explaining the performance of remarkably well in the floating, so that this model produce better forecasts of the actual exchange rates. In line with recent studies, it fined that this process of mean reverting is quit slow, with estimated adjustment of data. In the long run the PPP equilibrium is remaining a useful empirical approximation. Gerlach (1988) examine the dynamic interrelationship between innovations in monthly industrial production in a set of economies, specifically this study attempt the output fluctuations that have been correlated during the periods of fixed and flexible exchange rates. The current has to manage exchange rates flexibility that has reduces the interdependence across countries. It should follow the recent article of Flood and Hodrick (1986) in which it is argued that the variability have been higher during a regime of fixed exchange rates instead of flexible exchange rates, but the conclusion of author is striking so sharply. The results of this study of multiple country output movements under fixed and flexible exchange rates are clear. The variances of growth rates should be higher in the flexible exchange rates and in the fixed exchange rates periods. These variances are statistically significant related to the degree of openness and national income. Thirdly the output movements are co rrelated across countries under exchange rate regime, particularly the co movements in output are more important in the business cycle frequently during the recent years of managed exchange rates flexibility. CHAPTER 3: RESEARCH METHODS 3.1 Method of Data Collection The Data of Consumer price index (Inflation) has been collected from federal bureau of statistics while the data of exchange rate has been collected from Pacific Exchange Rate Service, both are the secondary, published source of data. 3.2 Sampling Technique The sampling technique that has been applicable is à ¢Ã¢â€š ¬Ã…“convenience samplingà ¢Ã¢â€š ¬? as it is easily accessible to collect the relevant information from the source and it is inexpensive and hence, gets a gross estimate of the results. (What is The Advantage of Convenience Sampling, 2007-2010). 3.3 Sample size The sample size is selected on the basis of limitations and scope of the research therefore, Last 54 years i.e., 1947 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 2010, data of inflation and exchange rate is decided to be examined. 3.4 Research Model developed From the above defined and explanations of both the dependent i.e. inflation and independent i.e. exchange rates variables and also discussing the effects of exchange rate on inflation and how it have affects on economic of a country. In this study first analysis is the correlation between these two variables, and identifies the significant relationship. Then it analyzes and evaluates the empirical investigation in regression model as a statistical tool. The simple regression model which can be defined in the equation that represented below: Inflation = ÃŽÂ ²Ãƒ Ã‚ ¾ + ÃŽÂ ²(exchange rate) + ÃŽÂ µ Whereas, ÃŽÂ ²Ãƒ Ã‚ ¾ = the intercept of the equation. ÃŽÂ ² (exchange rate) = the changing coefficient of exchange rate. ÃŽÂ µ = the error term of the equation. From the above explained model, the study develop the following estimation and used for the establishment of the model. Therefore, all the compatible data has entered in to SPSS for statistical analysis. 3.5 Statistical Technique The statistical test that has been applied is single linear regression. This is because only one independent variable and one dependent variable to be used in this research. Frankel (1979) defined that most of the recent work on floating exchange rate goes under the name of the monetary or asset view. The exchange rate is moving to equilibrate the international demand for assets, rather than the international demand for the flow of goods. But with the asset view there is à ¢Ã¢â€š ¬Ã‹Å"Chicago Theoryà ¢Ã¢â€š ¬Ã¢â€ž ¢ in which assumes that prices are perfectly flexible. As the consequences when nominal interest rate changes, it has also reflect the changes in expected inflation rate, so as the domestic currency expected to lose value through inflation and depreciation. This is the rise in the exchange rates and gets the positive relationship between positive exchange rate and inflation. CHAPTER 4: RESULTS 4.1 Findings and Interpretation of the result The simple linear regression technique is used to determine the explanation of dependent variable i.e. inflation due to independent variable i.e. exchange rate. The analysis of the result is defined below: Table à ¢Ã¢â€š ¬Ã¢â‚¬Å" 4.1 Model Summary Model R Square Adj. R Square F Sig. 1 .226 .211 15.207 .000 The table à ¢Ã¢â€š ¬Ã¢â‚¬Å" 4.1 shows that the regression model is best fit to predict as F test value is significant. The variation of regression model is explained by 22.6% i.e. the change in inflation is 22.6% by the exchange rate. Table à ¢Ã¢â€š ¬Ã¢â‚¬Å"4.2 Coefficients Model Un-standardized Coefficients Standardized Coefficients T Sig. B Std. Error Beta 1(Constant) Exchange Rate 121.725 .794 6.887 .204 .476 17.673 3.900 .000 .000 Table à ¢Ã¢â€š ¬Ã¢â‚¬Å" 4.2 the coefficients results show that there is the positive affiliation between exchange rates with related to inflation in Pakistan. The results reflect that the exchange rates beta has the positive value and the T-value of both the variables is significant statistically at 0.05. From the above applied regression model, the result concludes in the way that it explains the relationship of both the dependent and independent variables significantly. The Inflation and exchange rates result shows that the beta value of the variable and T-value is significant at the 0.000 level. So the results conclude that the exchange rates value should significantly play its role in the relationship with related to inflation, but the exchange rates should not individually play a significant role in the relationship with inflation. The hypothesis is not rejected and that the exchange rate explains the inflation by 22.6%. The equation of regression model is written below: Inflation = 121.725 + 0.794 (exchange rate) + ÃŽÂ µ 4.3 Hypothesis Assessment Summary Hypothesis R Square F Sig. Regression Coefficient ÃŽÂ ² T Empirical Conclusion Exchange rate explains inflation. .226 15.207 P .794 3.900 Accepted The hypothesis of this study is that exchange rate explains the inflation, which is being accepted and exchange rate is explaining inflation by 22.6%. These findings support to recent theories that suggested the foreign exchange market efficiency with the existence of risk at equilibrium. Wihlborg (1982) examined the relation of interest rates, exchange rate and currency risks in this study. It identifies the test which empirically shows the impact of currency on interest rates and exchange rates. In this study there are three different ways in which the importance of currency risks for interest rate and exchange rate determination. The results presented here that substantiate the changes in the level of currency risk have a non-negligible impact on the changes of exchange rates and on rates of interest of relative between currencies. CHAPTER 5: CONCLUSION, DISCUSSIONS, IMPLICATIONS AND FUTURE RESEARCH 5.1 Conclusion This study is concluded to examine the dependency of exchange rate on inflation by using the data of consumer price index (CPI) as inflation and the data of exchange rate on yearly basis. The result of this study is highly significant so that the hypothesis of this study is not rejected. The result shows that 22.6% variation in inflation is due to the exchange rate in Pakistan. The analysis of this study also shows that if exchange rate becomes zero, the inflation exist to some extent. For example, if one unit of exchange rate increases, the inflation increases only by 0.794 times. 5.2 Discussions This study has applied exchange rate as independent variable and consumer price index (CPI) as dependent variable. For the availability of data, all the data should be available on daily monthly and yearly basis, but the data is used in order to consistent as yearly basis. The regression model has been formulated for these variable relationship investigations. The study developed the hypothesis that the exchange rate explains the inflation in Pakistan, and the findings are supported by the analysis done by Balassa (1964), Meese Rogoff (1983), Frankel (1979), and Mc Callum (1999) etc. 5.3 Implications and The result also accompanies that the exchange rates are the strength of character of foreign exchange market in Pakistan, and it should effect on each of the related variables as an inflationary basis. Therefore the State Bank of Pakistan and Government officials should realize the role of exchange rates in the economy and try to maintain exchange rates to stop or decrease the consumer price index in Pakistan, so that the price range of every thing should be in range of common men. Also Government should addres Exchange Rate and Inflation in Pakistan Economy Exchange Rate and Inflation in Pakistan Economy Inflation exchange rate are two main factors of macro-economics. Inflation is an increase in the level of prices of goods services in an economy by the passage of time. Exchange rate is very important factor in economic which impact imports exports of country. A country does not always want the exchange rate to fluctuate because an exchange rate influences the levels of its imports exports, which are the component of fiscal policy. Policy makers want to hold rate at a particular level or within a certain range in order to achieve given domestic policy goals related to the level of growth of GDP. In the perfect mobility the exchange rate movements and an adjustment of goods market is relative to asset market and consistent expectations. The extends that output responds to a monetary expansion in the short run, this acts as an effect on exchange depreciation which lead to an increase in interest rates (Dornbusch, 1976). There are three types of ways which gives stickiness in prices, the prices set by the firms in that currencies, the firms set the prices for currencies of consumers, or firms set the prices in the currencies of producers (Engel, 2001). When the exchange rates changes, the changes appear in the relative prices and make to generate additional uncertainty for equilibrium in markets. However, there is also defining that the changes in terms of trade play the larger role of changes in the exchange rates which affect the variability of exchange rates (Stockman, 1980). Inflation is one of the key indicators of the country and provides important information on the state of the economy and sound macroeconomic policies that govern it. Inflation is the production of the expenses of manner of things arise which leads to the advancement of the last in the price of meals. For example, if the matter is hardy and this leads to the increment of the price of the production of the costs of increasing, and in turn this leads to increasing prices to keep the crowd his profits. The discretionary nature of the existing monetary policy in Pakistan is inflation, and it is targeting to hit on the Pakistani economy by focusing attention on the monetary policy. So the government of Pakistan is to make monetary policy more transparent for achieving the explicit goal, and decreasing the inflation. Therefore, it is increasing the public understanding of the strategy of central bank to deliver the target, so the State Bank of Pakistan helps to provide an anchor for inflati on expectations in the economy. The State Bank of Pakistan (SBP) has achieving a low rate of inflation in a high priority, and also aims to support the national country objectives of Pakistan to meet the economic diversification and competitiveness in the form of export from the world. 1.2 Problem statement This study is to examine the impact of exchange rate on inflation in Pakistan economy. 1.3 Hypothesis H1: The Exchange rate explains the inflation. 1.4 Outline of the Study The variability of industrial production output higher in the regime of fixed exchange rates instead of regime of flexible exchange rates (Flood Hodrick, 1986). The effect of consumption goods purchases by the government is not the private utility, but per capita real government expenditure are the composite of individual consumption of goods. So notice that the demand of money depends on consumption of goods rather than income and that is the important distinction of closed economies (Obstfeld Rogoff, 1995). Pakistan major import is crude oil which is purchased in dollars. If foreign exchange rate increases, it has increased the cost of oil that has adverse impact on the economy of Pakistan. Inflation is also caused by international loans and the national debt. As nations borrow money, have to deal with the interest that the final prices increase as a way to keep up with debts. The main problem of Pakistan is external debt, which has altered the economic balance. The most immediate effect of inflation is the declining purchasing power of the rupee and its depreciation. This study has been helpful for economic policy makers, foreign investors, economic analysts, business students who are interested in macro-economics studies. This study identifies how two macro-economic factors are related with each other. 1.5 Definitions Variables: For this study the following variables have utilized:- Exchange Rates à ¢Ã¢â€š ¬Ã¢â‚¬Å" Independent Variable: The exchange rates are foreign exchange rate between two currencies. Every country has a foreign exchange market and is one of the largest markets in all countries of the world. It converts 3.2 trillion USD currency conversion. It has two types i.e. fixed and floating exchange rates. Meese and Rogoff (1988), it depends on fundamentals such as money supplies, real incomes, interest rates and inflation. Listen Read phonetically Dictionary View detailed dictionary Inflation à ¢Ã¢â€š ¬Ã¢â‚¬Å" Dependent Variable: Inflation has increased the level of prices of commodity, goods and services in an economy by the passage of time. Price inflation measure is the rate of inflation, the annual percentage change in general price index (usually the Consumer Price Index) over time. Effects of inflation on the economy have manifold and simultaneously positive and negative. Negative effects of inflation include a decrease in the real value of money and other monetary items over time, uncertainty over future inflation which discourages investment and savings, and high inflation leads to shortages of goods if consumers begin hoarding out of concern that prices increase in the future. Positive effects include a development of economic recessions, and debt assistance by reducing the real level of debt. CHAPTER 2: LITERATURE REVIEW The analysis of the monetary determinants of inflation is of obvious interest for the nations that pursue a policy of inflation targeting. This study focuses on Pakistani economy that is currently following an Inflation targeting approach or did so in the recent past. Currency stability plays an important role for the monetary authorities in this economy. Exception of real money growth rule is included in the estimation of Phillips curves for the four economies Bayesian model averaging (McCallum, 1999). Entrepreneurs seek stability in the course says that keeps the price of imported items from growth due to rupee depreciation, which is not only support the economy in general, but also producers who use huge amounts of imported cases in the production of exportable surplus. Since the start of this fiscal year, while the rupee has lost about 2.5 percent of its value beside the dollar and its depreciation rate is unlikely to accelerate in the coming months due to continued inflow of foreign capital and funds. Also include the support of IMF, partial release of the fund, a coalition of U.S., which is part of its payment obligations by the Friends of Democratic Pakistan, extremely strong inflow of return of foreign workers of portfolio investments and possible raise up in exports and foreign direct investment in the third quarter of fiscal year. The current stability of the rupee has helped to contain imported inflation and the weakening of inflationary expectations. Bankers expect that trend continues throughout this financial year, a national unit is depreciated more than 7.0-7.5 percent during the entire fiscal year, against 19.5 percent last year. Businesses verify that the bankers are the forward currency cover in accordance with this expectation. What Pakistan needs today is not a platform to launch an à ¢Ã¢â€š ¬Ã…“economic revival programà ¢Ã¢â€š ¬? but what people need is an actual à ¢Ã¢â€š ¬Ã‹Å"economic revival.à ¢Ã¢â€š ¬Ã¢â€ž ¢ The main problem of Pakistan is the foreign debt which has risen to unmanageable proportions in the last decade and the repayment of which has created turbulence in external balance of Pakistan to such an extent that it does not meet its minimum necessary development requirements. At present Pakistan cannot survive without fresh borrowings from foreign donor agencies. As emphasized by Choudhri and Hakura (2006), an important policy debate for the contemporaneous monetary and exchange rate policy implementations is to reveal the degree to which changes in exchange rates or import prices impact or pass-through into domestic consumer prices. Presently there are three rates of exchange i.e. the bank rate, the inter bank rate and the open market rate. The overall effect on the foreign exchange rates should not be more than 5 to 6 per cent as the increased inflow of foreign exchange have neutralize the effect of the increased demand of private imports. If the foreign exchange earners and remitters keep on getting a fair exchange rate for earnings, it is visualized that in the next few years exports can touch the $15 billion mark and overseas Pakistani remittances can fetch $5 billion. It was concluded that the exchange rate feed shock on domestic inflation, first at the level of prices of the manufacturer and then the level of consumer prices and the im pact of shocks on the variables of price the various stages of the supply is different. The purchasing power parity theory doctrine means different things to different people. There are two versions of this theory that is called the à ¢Ã¢â€š ¬Ã‹Å"absoluteà ¢Ã¢â€š ¬Ã¢â€ž ¢ and the à ¢Ã¢â€š ¬Ã‹Å"relativeà ¢Ã¢â€š ¬Ã¢â€ž ¢ interpretation. The first version of purchasing power theory calculated as a ratio of consumer goods prices for any country that has tended to the equilibrium rates of exchange. In the second version of relative interpretation the rate of exchange rate have been determined between the two countries and quoted with general levels of prices of two countries. This version amend the international trade theory which have been the part of PPP, in which the non-traded goods (services) has been introduced, but the advantage is greater in regards of traded goods than non-traded goods, because of the assumptions of marginal rates of transformation. The correlation among purchasing power parity and exchange rates provides the international comparison of national incomes and living standards (Balassa, 1964). Lawrence (1976) gave another review of this purchasing power parity theory. It has define two applications in economics, the first application use of the conversion factor to transfer the data in one national way to another. The use of PPP is mainly the body of (index number theory) and applications of GDP that have improved over the years and path breaking studies in the area continue to appear. The second application of PPP did not have the widespread acceptance, which has remained the unsophisticated applications. Stockman (1980) develops the model of determination of prices of goods and exchange rates. The changes in commodity prices due to supply and demand affect the change in exchange rates by purchasing power parity deviations.The changes in exchange rates have failed to resemble the changes in prices of goods, because exchange rates more volatile than prices levels and inflation rates. The study proposes the equilibrium of exchange rates behavior and different international goods that have been traded. This relationship cannot exploited by the government, because greater the changes in terms of trade the larger the changes in exchange rates variability. The deviations from PPP persists that variation of exchange rates more than ratios of price indexes. The results found the two interpretation of the relationship between exchange rates and terms of trade. In the first, the causes that affect the changes in exchange rates also affect the change in terms of trade because prices of goods do not adjust to clear the markets. This interpretation also found in the research of Dornbusch (1976), and Isard (1977), the analysis formally differentiates the system with respect to exchange rates and allow prices to change but not the changing in asset stocks. The interpretation presented the elasticity approach of the foreign exchange market and the relation between the trade and exchange rates. Real supply and demand shocks affect prices and the derived demand of exchange rates. These changes in demand for foreign exchange result the supply and demand shocks and that should affect the equilibrium of exchange rates. In second interpretation the expected rate of change of exchange rates revealed on the forward foreign exchange market. This should be related the anticipated change in the terms of trade and the inflation differentials. A persuasive argument about the level of exchange rates is only associated with not causes of the relative prices changes. Bilson (1985) gives the empirical findings about macroeconomic and flexible exchange rate of the U.S dollar related to PPP theory. From the perspective of this research, the sluggish price adjustment in the commodity markets resulted in increased variability in exchange rates. For the demonstration of result it is important because the instability of floating exchange rate is due to the inherent differences between commodity and foreign exchange markets. The determination of the expected future rate is impossible, because it is more difficult to reject the forward parity condition. The major part of the forward parity is the variation in the premium is due to the forecast. The object of this study is to determine that if the forward parity failed is the cause of instability in the same way that the failure of purchasing power parity. The findings develop that currency risk premium is the important factor relative to floating rate system, and movement in the exchange rate are dominate d by the non speculative activity and it has the adverse effect on world economy. Meese and Rogoff (1983) analyzed the outcome of sample forecasting accuracy on various models. The study estimated the horizons of the dollar with different country currencies, like Dutch mark, Japanese yen, and Britain pound that traded to weight the dollar exchange rates. It has also studied the flexible exchange rates with the monetary models of sticky price, so the model of sticky price, which incorporates the current account. The first model is structural models in which it requires to generate the forecasts of exchange rates and explanatory variables. It contains the explanatory power, but it is predicted badly because the explanatory variables are difficult to predict. The second is the univariate time series model in which it identifies a variety of prefiltering techniques involves differencing, de-seasonalizing and removing time trends. The relative performance of these techniques is of interest in itself. The third model use is the random walk model. It is also linked with this univariate time series model. It is used as the predictor of the current spot rate with the entire future spot rate, and it requires no estimation. In this study the performance of estimated univariate time series models or candidate structural model is no good instead it is worst. From a methodological stand point the view that the outcome of sample model fit is an important criterion when evaluating exchange rate, but the estimation of out of sample is failure with time series models that are well approximated the major country exchange rates. Feinberg and Kaplan (1992) evaluated and interact the real exchange rates index expectations is developed and used to explore the role of determination on domestic producer prices. The fact that time path of the exchange rate has directly affected the input costs, and the price of substitutes strongly. To examine the links between both actual and anticipated movements in the dollar and relative domestic producer prices, it chooses to analyze price responses to real exchange rate changes. The effect is dependent on the nature of substitutability between imports and domestic goods. The major finding is that the period of appreciation and depreciation over the past 10 years to inhibit the pass through in to domestic prices. In depreciation the market share to enjoy the continued good times kept prices other than expected. The theory of optimum currency areas, which is usually presented by the other name called flexible exchange rate system, but it is proponent as a device of depreciation that takes place of unemployment when the balance of payment is deficit and appreciation when it replaces inflation when it is surplus. The problem can be exposed and more revealed by defining a currency area within when exchange rates are fixed. Three answers can be given, first certain parts of the world are going through the process of economic integration, so new experience can be made and what constitutes the optimum currency area can be given the meaning of these experiments. Second those countries that have flexible exchange rates are likely to face problems with the theory of optimum currency areas, so these do not coincide the optimum currency areas with the national currency. Third the idea that illustrates the functions of currencies which have been treated in economic literature, and sometimes neglected in the problems of economic policy. In the currency area, countries with different currencies including national country currencies interact pace of employment in deficit, because there is the haveingness to inflation by the surplus countries. The argument for flexible exchange rate system is based on national currencies, and is valid about mobility of factor, so if it is high in the country and low in the foreign countries, the flexible exchange rates system on home country currencies has to work effectively. The concept of optimum currency area has practically applicable only in those areas, where the state has the political organization in the country. The factor mobility is most considered and is more relative rather than absolute concept, with both industrial and geographical factors. It is likely to change the alterations with time over time in conditions, with the conditions of political and economic stability. Money is the convenience that restricts the optimum number of curre ncies, so in terms of this argument the optimum currency area which is composed in number of countries (Mundell, 1961). In another review, the author defines the stabilization of capital mobility policy under the exchange rates which is fixed and flexible in the currencies markets. It concerns the theoretical and practical approach of the increased mobility of capital. Obstfeld and Rogoff (1995) analyses the global macroeconomic dynamics to supply framework based on competition and nominal prices. The effects of macroeconomic policies on output and exchange rates have not been yet persuaded to abandon. The framework which integrated exchange rates dynamics and current account yields is a new perspective, it realize that when prices are sticky the government should spend on shock raises short run output and long run output. The assumption is that home and foreign government purchases the consumption goods that do not directly affect the private utility, but the per capita real government consumption expenditure is a composite consumption of individual goods. It explains that the composite consumption for the services is to balance the opportunity cost and notice that the money depends on consumption rather than income, that distinction is more important in closed economies. The results of this study develop framework that give new foundations about some of the fundamentals problems in international finance. It realizes that the existing Keynesian model is incomplete to offer a satisfactory treatment of exchange rates, output and the current account, but the model which is used in this study is more complex, because it yields simple and intuitive insights of monetary and fiscal policies. It can be extended in a number of dimensions, including non traded goods, market behavior, government spending, and labor market distortions and so on. It goes beyond the essentially statistical approach that handles the current account and exchange rates issues, most importantly this approach allows to analyze the welfare implications of policies. Melvin (1985) has regarded and focused that how the choice of an exchange rate system can affect the stability of the economy. The appropriate nature of the exchange rate system has differed of the disturbance to the economy. It presented the evidence that indicate that the approach is more consistent according to practice by actual country. The other approach is to reach the desirable price stability, in which some mechanism tells the floating rates superiority has become less in the face of monetary shocks. It finds that the flexibility in exchange rates depends not on openness and less important in the mobility of capital, but its positive effects were found for the economic development. The purpose of this study is to consider the determinants of exchange rates system choice, which indicates the theoretical approach with the country choices. The result found that the choice of an exchange rate system has the role of the disturbance to the economy. It suggests that the money shock s are the key of exchange rate system choice in an economy, in which it seeks to minimize the fluctuations in the country price levels. It also suggests that the greater the price shocks the more is a float, so it affects greatly domestic money shocks. Lothian and Taylor (1996) examine the real exchange rate behavior, and explain the variations in sample of stationary univariate equations in real exchange rates. The study investigates the additional insight in the exchange rates behavior that can be gained by considering the floating rate from the perspective of the data. These issues can be best understood on the subject of real exchange rates stability among the currencies of the major developed countries. Some of the pre-float studies support the fairly stable exchange rates in the long run. Subsequently, Dornbusch (1976), and Frenkel (1981), gave largely as the result of studies published, and reject the hypothesis of random walk performance of real exchange rates. The PPP shows the empirical movements in real exchange rates were highly persistent and effective. Although the PPP is reject the hypothesis of non-stationary behavior of exchange rates in long run. The result of this study shows that the longest span of two countrie s exchange rates are significantly mean reverting. The first model result indicates the 80 percent of the variation in the exchange rates of the history data of two countries. By using of another model, the results explaining the performance of remarkably well in the floating, so that this model produce better forecasts of the actual exchange rates. In line with recent studies, it fined that this process of mean reverting is quit slow, with estimated adjustment of data. In the long run the PPP equilibrium is remaining a useful empirical approximation. Gerlach (1988) examine the dynamic interrelationship between innovations in monthly industrial production in a set of economies, specifically this study attempt the output fluctuations that have been correlated during the periods of fixed and flexible exchange rates. The current has to manage exchange rates flexibility that has reduces the interdependence across countries. It should follow the recent article of Flood and Hodrick (1986) in which it is argued that the variability have been higher during a regime of fixed exchange rates instead of flexible exchange rates, but the conclusion of author is striking so sharply. The results of this study of multiple country output movements under fixed and flexible exchange rates are clear. The variances of growth rates should be higher in the flexible exchange rates and in the fixed exchange rates periods. These variances are statistically significant related to the degree of openness and national income. Thirdly the output movements are co rrelated across countries under exchange rate regime, particularly the co movements in output are more important in the business cycle frequently during the recent years of managed exchange rates flexibility. CHAPTER 3: RESEARCH METHODS 3.1 Method of Data Collection The Data of Consumer price index (Inflation) has been collected from federal bureau of statistics while the data of exchange rate has been collected from Pacific Exchange Rate Service, both are the secondary, published source of data. 3.2 Sampling Technique The sampling technique that has been applicable is à ¢Ã¢â€š ¬Ã…“convenience samplingà ¢Ã¢â€š ¬? as it is easily accessible to collect the relevant information from the source and it is inexpensive and hence, gets a gross estimate of the results. (What is The Advantage of Convenience Sampling, 2007-2010). 3.3 Sample size The sample size is selected on the basis of limitations and scope of the research therefore, Last 54 years i.e., 1947 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 2010, data of inflation and exchange rate is decided to be examined. 3.4 Research Model developed From the above defined and explanations of both the dependent i.e. inflation and independent i.e. exchange rates variables and also discussing the effects of exchange rate on inflation and how it have affects on economic of a country. In this study first analysis is the correlation between these two variables, and identifies the significant relationship. Then it analyzes and evaluates the empirical investigation in regression model as a statistical tool. The simple regression model which can be defined in the equation that represented below: Inflation = ÃŽÂ ²Ãƒ Ã‚ ¾ + ÃŽÂ ²(exchange rate) + ÃŽÂ µ Whereas, ÃŽÂ ²Ãƒ Ã‚ ¾ = the intercept of the equation. ÃŽÂ ² (exchange rate) = the changing coefficient of exchange rate. ÃŽÂ µ = the error term of the equation. From the above explained model, the study develop the following estimation and used for the establishment of the model. Therefore, all the compatible data has entered in to SPSS for statistical analysis. 3.5 Statistical Technique The statistical test that has been applied is single linear regression. This is because only one independent variable and one dependent variable to be used in this research. Frankel (1979) defined that most of the recent work on floating exchange rate goes under the name of the monetary or asset view. The exchange rate is moving to equilibrate the international demand for assets, rather than the international demand for the flow of goods. But with the asset view there is à ¢Ã¢â€š ¬Ã‹Å"Chicago Theoryà ¢Ã¢â€š ¬Ã¢â€ž ¢ in which assumes that prices are perfectly flexible. As the consequences when nominal interest rate changes, it has also reflect the changes in expected inflation rate, so as the domestic currency expected to lose value through inflation and depreciation. This is the rise in the exchange rates and gets the positive relationship between positive exchange rate and inflation. CHAPTER 4: RESULTS 4.1 Findings and Interpretation of the result The simple linear regression technique is used to determine the explanation of dependent variable i.e. inflation due to independent variable i.e. exchange rate. The analysis of the result is defined below: Table à ¢Ã¢â€š ¬Ã¢â‚¬Å" 4.1 Model Summary Model R Square Adj. R Square F Sig. 1 .226 .211 15.207 .000 The table à ¢Ã¢â€š ¬Ã¢â‚¬Å" 4.1 shows that the regression model is best fit to predict as F test value is significant. The variation of regression model is explained by 22.6% i.e. the change in inflation is 22.6% by the exchange rate. Table à ¢Ã¢â€š ¬Ã¢â‚¬Å"4.2 Coefficients Model Un-standardized Coefficients Standardized Coefficients T Sig. B Std. Error Beta 1(Constant) Exchange Rate 121.725 .794 6.887 .204 .476 17.673 3.900 .000 .000 Table à ¢Ã¢â€š ¬Ã¢â‚¬Å" 4.2 the coefficients results show that there is the positive affiliation between exchange rates with related to inflation in Pakistan. The results reflect that the exchange rates beta has the positive value and the T-value of both the variables is significant statistically at 0.05. From the above applied regression model, the result concludes in the way that it explains the relationship of both the dependent and independent variables significantly. The Inflation and exchange rates result shows that the beta value of the variable and T-value is significant at the 0.000 level. So the results conclude that the exchange rates value should significantly play its role in the relationship with related to inflation, but the exchange rates should not individually play a significant role in the relationship with inflation. The hypothesis is not rejected and that the exchange rate explains the inflation by 22.6%. The equation of regression model is written below: Inflation = 121.725 + 0.794 (exchange rate) + ÃŽÂ µ 4.3 Hypothesis Assessment Summary Hypothesis R Square F Sig. Regression Coefficient ÃŽÂ ² T Empirical Conclusion Exchange rate explains inflation. .226 15.207 P .794 3.900 Accepted The hypothesis of this study is that exchange rate explains the inflation, which is being accepted and exchange rate is explaining inflation by 22.6%. These findings support to recent theories that suggested the foreign exchange market efficiency with the existence of risk at equilibrium. Wihlborg (1982) examined the relation of interest rates, exchange rate and currency risks in this study. It identifies the test which empirically shows the impact of currency on interest rates and exchange rates. In this study there are three different ways in which the importance of currency risks for interest rate and exchange rate determination. The results presented here that substantiate the changes in the level of currency risk have a non-negligible impact on the changes of exchange rates and on rates of interest of relative between currencies. CHAPTER 5: CONCLUSION, DISCUSSIONS, IMPLICATIONS AND FUTURE RESEARCH 5.1 Conclusion This study is concluded to examine the dependency of exchange rate on inflation by using the data of consumer price index (CPI) as inflation and the data of exchange rate on yearly basis. The result of this study is highly significant so that the hypothesis of this study is not rejected. The result shows that 22.6% variation in inflation is due to the exchange rate in Pakistan. The analysis of this study also shows that if exchange rate becomes zero, the inflation exist to some extent. For example, if one unit of exchange rate increases, the inflation increases only by 0.794 times. 5.2 Discussions This study has applied exchange rate as independent variable and consumer price index (CPI) as dependent variable. For the availability of data, all the data should be available on daily monthly and yearly basis, but the data is used in order to consistent as yearly basis. The regression model has been formulated for these variable relationship investigations. The study developed the hypothesis that the exchange rate explains the inflation in Pakistan, and the findings are supported by the analysis done by Balassa (1964), Meese Rogoff (1983), Frankel (1979), and Mc Callum (1999) etc. 5.3 Implications and The result also accompanies that the exchange rates are the strength of character of foreign exchange market in Pakistan, and it should effect on each of the related variables as an inflationary basis. Therefore the State Bank of Pakistan and Government officials should realize the role of exchange rates in the economy and try to maintain exchange rates to stop or decrease the consumer price index in Pakistan, so that the price range of every thing should be in range of common men. Also Government should addres

The Search for Identity in Amy Tans The Joy Luck Club Essay -- Joy Lu

The Search for Identity in The Joy Luck Club  Ã‚        Ã‚  Ã‚  Ã‚  Ã‚   When Chinese immigrants enter the United States of America, it is evident from the start that they are in a world far different than their homeland. Face to face with a dominant culture that often times acts and thinks in ways contrary to their previous lives, immigrants are on a difficult path of attempting to become an American. Chinese immigrants find themselves often caught between two worlds: the old world of structured, traditional and didactic China and the new world of mobile, young and prosperous America. They nostalgically look back at China longing for a simpler life but look at the United States as a land of opportunity and freedom that they did not know in China. For this is why they came to America in the first place, to provide for their children and themselves what they could not in China. To do this, of course, they are faced with the challenge of assimilating. Learning the language, acquiring education, owning property, etc. are all ways to seiz e the American Dream. However this poses a problem for the Chinese immigrant for, in the process of assimilation, they lose some of their Chinese culture. This especially rings true for the children of Chinese immigrants: the second-generation Chinese Americans. Second-generation Chinese Americans are faced with a special challenge. Their parents have endured the struggle to come to this coun... ... October 19%.: 256,257. Shear, Walter. "Generational Differences and the Diaspora." Critigue Spring 1993: 193-199. Tan, Amy. The Joy Luck Club. Vintage Contemporaries. New York: A Division of Random House, Inc., 199 1. Tsai, Shan-Shan Henry. The Chinese Experience in America. Bloomington and Indianapolis: Indiana University Press, 1986. Xu, Ben. "Memory and the Ethnic Self. Reading Amy Tan's The Joy Luck Club."Meleus. Spring 1994: 3 -16. Yung, Judy. Chinese Women in America: A Pictorial History. Seattle and London: University of Washington Press, 1989. (several found in Gale Literary Database t)v-(http://www.galenet.com/servlet/GLD/hits?c...n=10&1=d&NA=Amy+Tan=&The+Joy+-Luck+Club)   

Morton Salt Essay

1. Briefly describe salt production, from brine production to finished round cans. Salt is obtained by introducing water into salt caverns which in turn dissolves the salt deposits within the caverns, allowing the salt solution (brine) to be brought to the surface for further processing. The brine is boiled in order to remove most of the liquid, resulting in salt crystal deposits. The salt crystal deposits are then further dried to remove all residual moisture to produce the final product; salt. The finished product is stored within a silo awaiting production. The round cans used for packaging salt are produced on-site. The cans are produced by gluing two sheets of chip board and rolled into a continuous tube. The tube is then cut into long sections and then cut again into can-size pieces. The finished pieces are moved on conveyor to where the various parts can be assembled into cans and glued. Once the cans are formed, they are filled with salt and the pour spout is added to the can . Once completed, the finished cans containing salt are loaded onto pallets and placed into inventory awaiting shipping to distributors. 2. Briefly describe quality assurance efforts in round can production. Quality is checked primarily by visual inspection including verifying the assembly was done correctly, checking the filled cans for correct weight, inspecting cans to ensure labels are correctly aligned, and checking to see whether metal pour spouts are correctly attached. 3. What are some of the possible reasons why the company continues to use the old processing equipment instead of buying new, more modern equipment? The company may not have updated its equipment because of the high cost of investment in new machinery. 4. Where would you place salt production in the product-process spectrum? Salt production would be a low variety, high volume operation which would place it as a repetitive production or continuous flow in the product-process matrix. 5. Determine the approximate number of tons of salt produced annually. (3,800,000 cans per year) x (26 ounces of salt per can) = 98,800,000 ounces per year. (98,800,000 ounces per year) / (16 ounces per pound) = 6,175,000 pounds per year. (6,175,000 pounds per year) / (2000 pounds per ton) = 3,087.5 tons of salt per year. 6. What improvements can you suggest for the plant? a.Application of Statistical Process Control (SPC) to reduce the cost of quality. b.Develop a plan to overhaul the existing equipment and to purchase new equipment as a joint effort among finance, purchasing and manufacturing areas. c.Synchronize production, distribution and capacity planning to make sure that there is sufficient capacity in the silos to handle the incoming salt from brine production. Reduce operating expense by introducing computerized QA for round can production for the following processes: electronically measure filled can weight, use a computerized laser to measure and ensure labels are properly aligned, use a mechanical stress test to ensure metal spouts are correctly attached

Ggr252 Notes Essay

To gain a better understanding of the retail and commercial activity in the Toronto area, two different types of retail will be evaluated in the following report. The character, market orientation and location of a retail space all play crucial role in contributing to the success of the business. All three aspects of the retail spheres will be carefully assessed in order to make direct comparisons between the two types of retail businesses. The two retail systems that will be contrasted includes the ancillary retail system in downtown Toronto and the Retail Strip on Spadina, south of Baldwin. Part A – Ancillary Retail (First Canadian Place) The ancillary retail system in downtown Toronto is one of the most unique retail systems in the world. It is an underground shopping center that connects all the major banks and towers in the core of the city. The specific area that we investigate is called â€Å"First Canadian Place† and it is located on King & Bay St. This geographic region is one of the most densely engaged regions in all of Canada and this is because of the large skyscrapers that are located on top of this retail center. Its primary customers are upper-middle class workers that are working in the surrounding banks and institutions. Most of the consumers are not wearing jackets and this suggests that they were able to access this center without going outdoors. This is a significant advantage because people are more willing to go to areas that are easily accessible. The retail center is easily accessible by many different types of transportation. There are two subway stations that are located within this are a and there are also buses on the street level. As well, it is very accessible by foot because the retail center is connected to many other different shopping centers in the core of Toronto. There are many different types of stores in this retail center but they are all focused on â€Å"white collars†. Most of the customers are workers in large firms and they want quick access to different types of stores. This is why there is a large amount of fast-food/food court stores that allow workers to have their lunch quickly and efficiently. The busiest time of the day for this retail center is during lunch hour and rush hours because it is very convenient for all the workers to access this center. A 15 minute pedestrian count during lunch hours (around 1:30pm) indicated that approximately 1993 people access this ancillary retail system. This system  is in private property because it is under many large skyscrapers which are owned by private firms. This system is not very easy to navigate because of the complex connections of different shopping centers. Part B – Spadina, South of Baldwin (China Town) The retail strip on Spadina, south of Baldwin (known as China Town) is a completely different type of retail center. This retail is located outside and it is very easy to navigate since the arrangement of the retail stores is not complex. The streetcar track on Spadina helps people to identify the directions more easily (North ↔ South). This area is accessible by public transportation as a result of the frequent availability of streetcars and subway. There are also parking spots on either side of the road that can accommodate for cars. The area surrounding this retail strip consists of schools, university, and small houses. There are a wide variety of stores within the retail strip, offering customers many selections to choose from. Most of the retail spaces consist of restaurants, fashion and accessories stores, and family health services. However, there are also other services being offered, such as banking services, furthermore, there are meat shop and supermarket. This retail space is considered to be public as the entire business strip is not managed or controlled as a whole by any rules and regulations. And most evidently, the retail strip itself is located on a public street. It is possible that the city planners may have designed the street and the retail area to accommodate for the needs of the surrounding residential area. However, the actual stores and their specific styles and characteristics that each retail business offers are mainly unplanned (there might be some planned aspects). In the pedestrian count that was conducted during lunch time (around 1:30pm), a total of 327 pedestrians were counted during the 15-minute count. Chinatown is geared toward the market segment of low to mid-income individuals. Thus, most of the pedestrians are dressed in casual wear and jackets (Note: stores are located outside – winter period). The majority of consumers in this retail strip are Asians who speak Cantonese or mandarin and large portion of them are seniors. Part C – Compare and Contrast After careful analysis of the above two retail spaces, many similarities and differences can be drawn. First and foremost, both business entities consist of multiple retail stores that offer a vast variety of goods and services. This allows customers to have and opportunity to be exposed to a great selection of goods and services, and also creates convenience for the shoppers. In considering the physical location and layout of the two retail spaces, it is evident that both are located where a large amount of traffic can be found. People arrive at these areas by cars, transit (streetcars in China Town/buses in First Canadian Place, subway, cars for both), and walk, etc. This brings more customers to the businesses, and also helps accommodate for large amounts of traffic, which may be created as a result of it. Therefore, in terms of accessibility, both locations are very convenient to customers everywhere because of public access. The Ancillary Retail System is located in one of the most important commercial centers in Canada. There is a large population working above this system and this allows the system to have many customers during the weekdays. The disadvantage is that workers do not work during weekends would cause the system to have less customers, or the stores in the system might not be even opened during the weekends. The major disadvantage to the retail strip is that since the strip is located outdoors, many people would not be willing to shop outdoors in the cold winter. It is possible that the number of customers in the summer would be greater than the numbers in the winter, but it is more likely that customers would prefer the PATH since the system would have the air conditioning turned on in the summer. In both of the retail areas, we can see their different layouts. In First Canadian Place, most of the food services are centralized in the food court, whereas in the retail strip there are no spe cific patterns or layouts. This might be because it is a public space and the retail center is unplanned. The two different types of retail vary in their composition. The PATH system has more chaining retails than those in the retail strip. The stores’ degree of speciality in the strip is higher, this is because the stores are independent and owned by individuals that has the freedom to decorate the store and sell as they wish, without rules and regulations. Through the evidence from my observations, I believe that the retail strip  is less managed than the Ancillary System, because of the nature of the area. The retail strip is located on a public road, the city planners at most are doing their jobs setting out this area as retail but not as much as planning each store and how many stores of different types for this strip to be successful. The Ancillary Retail though, is a planned center, the land is owned as private property, and therefore, the stores run under rules and regulations. Before the stores can open in this planned center, marketing would have been done to see if th e center can accommodate another such shop in there. I believe that everything that goes in the PATH is carefully monitored and managed by a department under its private owner. Although own is private and one is public, one is planned and one is unplanned, despite these differences, they also have many similarities that kept them both running; their styles and selections attract different kinds of customers. The different specialty stores on the retail strip would attract customers that are looking for uniqueness and those that are looking for Oriental-style cuisines, and the stores in the Ancillary Retail would provide customer with convenience to their everyday needs and quick services such as the fast food services to customers who work nearby. Overall, these two different retail areas have their own qualities that attract customers, and everyday there are changes in the market and changes are made in those types of retail everywhere to suit out changing needs.

“Cat’s Eye” and “Jane Eyre” Essays

â€Å"Cat’s Eye† and â€Å"Jane Eyre† Essays â€Å"Cat’s Eye† and â€Å"Jane Eyre† Essay â€Å"Cat’s Eye† and â€Å"Jane Eyre† Essay Essay Topic: Jane Eyre Literature Differences between the two writers start at the beginning of their lives as they both have very diverse backgrounds. Bronte was born into an upper class family in 1816, a time when men were seen as being superior and intellectually stronger than their female counterparts. However Bronte and her two sisters were determined to break the prejudice of the time in order to pursue their natural talents and ambition. The discrimination of the time was so prominent that Jane Eyre was published under the pseudonym, Currer Bell, a more neutral name. In doing so Bronte made a significant contribution to the world of literature and womans rights. Alternatively Atwoods novels were not so influential as she was born in a time of equality into a family of great academic success. Atwood is a contemporary Canadian writer who has received numerous accolades and scholarships in recognition of her literary skills. This diverse background is mirrored in the two novels through the characters and the language. This makes it very interesting for me to compare the two writers as both display the ability to capture ones attention with the same theme yet their styles are poles apart. This adds to the variety and depth of creative writing. Cats Eye is written in a very unique and graphic style and this is prevalent throughout the book. The story is told with a wealth of description and vivid language. A plethora of descriptive forms are used throughout to great effect. Similes are frequently used to describe a host of things and this literary device allows the author to express the story in a graphic and at times shocking manner. For example It sounds like a cavity being filled, in a tooth, inside my head. This is obviously very effective as it allows an insight into how Elaine perceives the situations surrounding her. Similes are also used to illustrate the images that Elaine encounters as in the case of the Receding darkness, like a tunnel. This effective method of description enhances the readers own feelings towards the characters in the book and the pain that Elaine feels. This device is used to provoke maximum empathy from the audience as in the case of the covert feet peeling that were Smooth, like mushrooms. Similes are used to such effect that they become a tell tale sign of Atwoods style. Jane Eyre is written very differently to Cats Eye and this is obvious from the scarce use of similes that play such an important role in Atwoods novel. I found a small number of occasions when this device was used and the image of rising from a chair Like a spring is very effective in illustrating her character as it shows that Jane shot up from the chair at great speed and that it was the only way her character would allow her to go as she is constantly struggling against her oppressors, just as a spring is always trying to burst open. Cats Eye is not only very graphic which is in extreme contrast to the author of Jane Eyre but the literature is riddled with colloquialisms and American dialect, used to successfully express a whole host of varying conditions. Elaine is describing Cordelias bangs when we first read, an obvious Americanism for fringe. The colloquialisms are often harsh and on occasions blasphemous. This causes a great schism between Bronte and Attwood as Brontes language is archaic and is bound by the rigid social mores of the late twentieth century. Swear words are usually used in connection with Cordelia, as they are effective in illustrating her precocious mannerisms and scornful disposition. On the occasions that Elaine uses foul language it implies a sense of corruption in a young girl that is and should remain innocent. An example of this is the Cat piss, fragrance of the nightshade. They also show a contrast in her thoughts and similar thoughts of other young girls as she so readily admits that the smell of Shit blend in her mind into an image of ultra sophistication. The author uses colloquialism in such a diverse manner that they can also show the innocence, and to an extent the corruption, of Cordelia as is evident when she is informing the girls about titties and the Safe that they found. This Americanism is a shroud around the true identity and use of a condom. Yet other Americanisms such as Sidewalks and downtown are an outward sign of the novels setting. Once again Bronte shows a great contrast; this is because she uses very little and insignificant amounts of colloquialisms. This is because at the time the book was written any improper English would be unacceptable especially any cursing. The archaic style of Jane Eyre is also apparent from the now dated English. An excellent example of this is the use of inversion Bessie answered not as this is now no longer seen as necessary. Onomatopoeia is used effectively to describe various sounds, often contributing to the graphic realism that recurs throughout the novel. These sounds are generally used to heighten all of our senses to the descriptions that are engaged in order to explicitly illustrate the message that Atwood is aiming to convey. The apples mush under Elaines feet as she walks toward Carol giving the sentence an amount of life and interest. The Word Sqooshing is used to describe the ringing of clothes, in the wringer; this is childlike yet descriptive. One example of onomatopoeia in particular is used to simulate the Crash of the metaphorical ten stacks of plates that Cordelia has devised. The word crash is ruthless and imposing, it dominates Elaine as when it is spoken it causes her to feel extreme distress. However in Brontes Jane Eyre Onomatopoeia is not a predominant characteristic. I deduce that this is due to the difference in writing calibre as Atwood can be a much lighter read whereas Bronte provides a challenging and substantial novel. I think that the lack of onomatopoeia is because it is often seen as being childlike and un-descriptive. Although I personally feel that the name Jane Eyre is strong and rigid I believe that this it is short with only two syllables yet it gives the impression of being meaningful and solid. I think that this is used to reflect Janes character. Atwood uses metaphors to add to her patchwork of literary tools. A very prominent example of this is the introduction of Rudolph the reindeer; he is a metaphor for Elaine as there is Something wrong with him as Elaine believes that there is something wrong with her. Yet Rudolphs abnormality becomes his saving grace, as ironically it is this that helps makes him a Christmas hero. This gives Elaine hope as she can relate to him, as they both have abnormalities and they both wish to be wanted. Because Rudolph can succeed in doing this I think that she hopes that the same will happen to her. Metaphors are used when Elaine is watching the flaccid bubbles of the porridge. I adored the motion that I too could see what Elaine was seeing because the imagery was so successful. This same scene travels around the kitchen to Pinpoint bubbles of hot water in the Inking the water brown. This metaphor I feel is very effective as most readers would never think of a coffee percolator inking the water brown and because of this originality I believe that it gives the description more depth and impact. Bronte also uses metaphors and they play an important role in Jane Eyre so much so that Bronte uses them straight from the outset. When Jane is reading a book illustrating how the northern ocean boils round the naked melancholy isles. This is a metaphor for the isolation that Jane feels as she too is surrounded by harsh elitist assailants. Metaphors also play a big role in Janes first meeting of Mr. Brocklehurst, as he is a black pillar and a Stony stranger. These metaphors give him an image of massiveness, imperturbability, callousness and a rigidly harsh character. Elaine the central character in Cats Eye is a victim of savage and unrelenting bullying. She is betrayed throughout this in such a manner that there are various views that the audience will take. The view that one chooses to adopt governs the amount of empathy they will feel for Elaine. I presume that this most probably stems from how one will relate to Elaine in accordance to their personal character. Our first impression of how Elaine reacts when in the company of Cordelia comes when they meet for the first time. Elaine is dumb-founded by Cordelias ostentatious greeting and is shy of her families and her own grubbiness. This gives the reader the impression that Elaine; is not a dominant person, lacks confidence and is a girl who is naturally a little quiet and does not react very well in uncomfortable situations. Yet at this point Elaine seems no different from many other girls her age, as it is perfectly normal for a young girl to be shy when outnumbered and in a strange environment. However our first impression of Jane is incredibly different as Janes personality is the absolute opposite of Elaines. This is immediately obvious from the outset as Jane illustrates the scene of Mrs. Reed reclined on a sofa with her little darlings, clustered round her this is said in a very sarcastic tone as Jane says for the time neither quarrelling nor crying. Elaine would never feel any sort of contempt towards her oppressors yet Jane readily derides the Reed family and notices their faults. This gives the reader the distinct impression that Jane has a strong sense of justice. We arrive at a clearer picture of Elaine and her friends, when she is buried in initially a hole. This Game is a facade and is obviously seedier than it first appears, indeed Elaine preliminarily thought it was a game then when she Cant hear. the voices of her friends above her on the other side of planks and sodden earth. she feels sadness and a sense of betrayal once she realises It is not one. (Game), This is a turning point for Elaine as this is the first instance that she has become a victim of Cordelia and the others, yet it is worth noting at this point that she feels the same emotions that most other people would feel. This is not the difference between Elaine and most other people; it is how she reacted which is the significant point. After being released from her underground prison, The game or another game continued. This portrays Elaine to be Spineless and this would be uncharacteristic for most of the audience. It makes us feel anger towards Elaine, as she is being foolish for permitting herself to be manipulated, ridiculed and humiliated. Elaine makes a profound comment at the end of this paragraph as she describes this as the point at which I lost power. This comment is very perturbing and it portrays Elaine as a powerless victim. Although she is decisive about the above comments she also very unsure and confused about the exact details regarding the burial incident. This leads the audience to believe that the episode was so terrifying that it has been erased from her memory. Elaine is depicted as being confused. This is also the case for her ninth birthday party when all that she can remember Is a sense of shame and failure. At this point I felt very little compassion for Elaine although I did feel increasing amounts of contempt for Cordelia. Similarly there is a single moment in Jane Eyre when the audience realise the character and calibre of the person that Jane is and I believe that this is the red room incident, which has its similarities to Elaines burial incident. On Mrs. Reeds instruction Jane was borne to the red room as she resisted all the way like a mad cat after Jane hit john Reed in defence after he repeatedly struck her. This shows the first major difference in the two girls dispositions as Elaine was freely led into her hole whereas Jane did everything in her power to prevent the anticipated incarceration and so was physically dragged. When Bessie and Abbot thrust Jane upon a stool it was her impulse, to rise from it like a spring. This portrays to the audience that Jane is a spirited and resilient young girl and the complete antithesis of Elaine. Eventually when Jane was imprisoned it becomes apparent that the red room is very frightening for Jane as this was where Mr. Reed had died. This did not stop Janes adrenalin from running after the previous battle as she felt like a revolted slave this feeling was followed by a torrent of questions and injustice as she felt forever condemned. Once again Jane is questioning her persecutors whereas Elaine remains a compliant and willing victim. However the room began to take its toll on Jane and she like Elaine started to feel inadequate, as she was not a handsome, romping child. Her courage began to sink as time drew on and her spirit dissipated away. This was unlike Elaine as she never had any courage and so had none to loose. Janes spirit descends so low that she begged her oppressors to be freed and this was most uncharacteristic of Jane. However her Plea for mercy was ignored causing Jane to have a species of fit. This was a common response for Elaine as she too had tendencies to faint and so became an escape mechanism. As a result of the burial incident and Cordelias persecution Elaine describes her wrong memory of how lethal deadly nightshade can be, and it is apparent for the first time that she has a preoccupation with death. The audience later realises that Elaine also resorts to self mutilation in the endless time when Cordelia had such power over her as it gave her something definite to think about. This new discovery provokes the audience to perceive Elaine in two major different ways. The first that she is a disturbed and very badly affected young girl because of the bullying thereby provoking sympathy and heartache; yet others may feel that she is foolish for hurting herself and purposely damaging her body because of bullying that could easily have been stopped by almost any elder, if she had confided in them. Contrastingly Jane was affected by her ordeal in a very different way although she as well as Elaine also suffered from memory loss. Jane immediately confided in the first possible person regarding her ordeal, which would be completely unimaginable for Elaine. This person was the apothecary Mr. Lloyd, usually employed for the servants medical needs and had come to visit Jane. She also confided in great detail to Helen Burns later on in the book. Although she too did suffer from some long-term effects as Jane admitted that she still felt reverberations to this day Elains state deteriorates throughout the novel she becomes a mutilated wreck due to the relentless oppression. Cordelias methods of keeping the bullying covert are hugely successful as letting anyone in on the goings on would be unthinkable. Elaine is such a willing victim due to a multitude of reasons that are all intertwined. She believes that the bullying is for her Own good because they are, her best friends who are just helping her improve. This serves to make the audience feel that she is foolish, yet for others it will make them feel compassion for the obvious pain and injustice that she has to endure. She is also terrified of losing her best friends as she has never had any before Elaine obviously wants to feel like she belongs and is wanted by her friends and it is chiefly this feeling that keeps her silent. Another contributory factor is the relentless bullying is not black and white as it is not physical or involving obvious hatred Elaine feels that if she were to confide in anybody they would not understand as she had not had any palpable harm caused to her. This fear was confirmed when her mother confides that She wishes she knew what to do. Elaine does not confide in anybody about her mistreatment because she believes that it is her own fault, for not having more backbone. This seems irrelevant to the more mature reader who can clearly see the distinctive differences between friends giving constructive criticism and a group of protagonists degrading a self-conscious young girl. Elaine is possibly like this because of her lack of self worth and her craving for friendship.

Free Essays on Queen Elizabeth The 1st

Elizabeth, The Struggle for the Throne is a biography on Queen Elizabeth the 1st written by David Starkey. The book tells about the life and times of Queen Elizabeth. Elizabeth Tudor was born September 7, 1533 in Greenwich Palace. Her parents were Henry the 8th and Anne Boleyn. Elizabeth’s mother was executed on false accusations of incest and adultery. Anne was beheaded on May 19, 1536. Henry and Anne’s marriage was declared null and void and Elizabeth, just like her half-sister, Mary, was declared illegimate and deprived of her rightful place in the line of succession. Henry the 8th had six wives and three children. Henry wanted a son and his 3rd wife, Jane Seymour, gave him Edward but died during childbirth. Elizabeth was crowned Queen in November 17, 1558 at the age of twenty-five. Elizabeth was the third in line for the throne and had to wait on her brother, Edward to pass away in the summer of 1553, then her sister, Mary passed away in 1558. Queen Elizabeth never married or had children even though she had many suitors. During her reign as Queen, Elizabeth re-established the Protestant Church in England. She labeled herself Supreme Governor of the Church of England. Queen Elizabeth was a dedicated Protestant. She prayed daily and enjoyed the traditional style of worship in contrast to the sermon-based service becoming more popular. Elizabeth was not a religious extremist. The time during the Queen’s reign is often referred to as â€Å"The Golden Age†. She was greatly admired and considered one of the most loved monarchs. During her time England was and still is one of the most powerful and prosperous countries in the world. Elizabeth reigned as Queen of England until the day she died on March 24, 1603 in Richmond Palace. Elizabeth, The Struggle for the Throne is a very informative biography about Queen Elizabeth the 1st. It tells about her entire life from when she was a baby living in Greenwich P... Free Essays on Queen Elizabeth The 1st Free Essays on Queen Elizabeth The 1st Elizabeth, The Struggle for the Throne is a biography on Queen Elizabeth the 1st written by David Starkey. The book tells about the life and times of Queen Elizabeth. Elizabeth Tudor was born September 7, 1533 in Greenwich Palace. Her parents were Henry the 8th and Anne Boleyn. Elizabeth’s mother was executed on false accusations of incest and adultery. Anne was beheaded on May 19, 1536. Henry and Anne’s marriage was declared null and void and Elizabeth, just like her half-sister, Mary, was declared illegimate and deprived of her rightful place in the line of succession. Henry the 8th had six wives and three children. Henry wanted a son and his 3rd wife, Jane Seymour, gave him Edward but died during childbirth. Elizabeth was crowned Queen in November 17, 1558 at the age of twenty-five. Elizabeth was the third in line for the throne and had to wait on her brother, Edward to pass away in the summer of 1553, then her sister, Mary passed away in 1558. Queen Elizabeth never married or had children even though she had many suitors. During her reign as Queen, Elizabeth re-established the Protestant Church in England. She labeled herself Supreme Governor of the Church of England. Queen Elizabeth was a dedicated Protestant. She prayed daily and enjoyed the traditional style of worship in contrast to the sermon-based service becoming more popular. Elizabeth was not a religious extremist. The time during the Queen’s reign is often referred to as â€Å"The Golden Age†. She was greatly admired and considered one of the most loved monarchs. During her time England was and still is one of the most powerful and prosperous countries in the world. Elizabeth reigned as Queen of England until the day she died on March 24, 1603 in Richmond Palace. Elizabeth, The Struggle for the Throne is a very informative biography about Queen Elizabeth the 1st. It tells about her entire life from when she was a baby living in Greenwich P...