Abercrombie Fitch an Upscale Sporting Goods Retailer Becomes a Leader in Trendy Apparel Essay Example For Students

Abercrombie Fitch: an Upscale Sporting Goods Retailer Becomes a Leader in Trendy Apparel Essay Abercrombie Fitch: An Upscale Sporting Goods Retailer Becomes a Leader in Trendy Apparel Kevin Feldpausch Strayer University Bus 499 Professor Toiya Evans July 22, 2010 ? 1. Recognize and depict the best ecological dangers that have prompt ramifications for A F. Abercrombie and Fitch has been a pioneer in the retail style business for a long time and have showcased their garments line to speak to a more youthful gathering of individuals for the most part in secondary school and school. They were accused of a claim asserting that their laborers and models were predominately tall, thin, gorgeous white individuals. This could be viewed as a danger since they were not recruiting anybody of another race. I feel like this could hurt theirs deals and at last give them the notoriety of a being a bigot organization. 2. Recognize and portray the best open doors accessible in the commercial center for AF to seek after. Abercrombie and Fitch was hit hard during the downturn and would not offer lower costs and limits like their rivals did. As of late they have presented another inventory, still somewhat indecent as their indexes were previously, yet AF feels that the introduction will be useful for the organization. AF has likewise improved its dress variety to offer more determination and brought down costs and cut expenses. This could be simply the opportunity that they have to set up themselves as a lower evaluated retailer to recapture a portion of their clients who may shop somewhere else for a superior deal, for example, American Eagle and Aeropostale. 3. Recognize and portray AF’s most noteworthy authoritative qualities. Abercrombie Fitch’s most prominent hierarchical quality is their garments line. They are notable everywhere throughout the world and offer to youthful purchasers. They have marked themselves as a pioneer in the style business and purchasers will in general see Abercrombie garments as best in class in design. Abercrombie employs youthful, attractive individuals for their stores and makes them wear their garments while working. At the point when clients enter the store they see the garments on the partners and this is a decent method to show their most up to date attire line. They have a successful showcasing procedure by showing their garments on the partners and furthermore with the lists that certainly make consideration. 4. Distinguish and portray the company’s most noteworthy shortcomings. The company’ most prominent shortcoming is the significant expense of their dress and their constrained client base. AF’s garments is more expensive than a significant number of its contending stores. It is seen as being overrated. The vast majority of AF’s stores are situated in shopping centers and are in close rivalry with opponents, for example, American Eagle or Aeropostale, which both offer comparable attire at a lower cost. Their client base is centered around secondary school and school matured purchasers who are slender and attractive. These are the individuals they market to and this limits the quantity of purchasers for their garments. 5. Depict how AF’s qualities can be utilized to avoid natural dangers to promote the company’s achievement in the business. Abercrombie Fitch has a strong money related and showcase position in the business and this could assist them with pushing in front of the opposition. In spite of the fact that they have had some negative exposure before, with claims of being a supremacist organization, poor selections of trademarks on their shirts, and sexual promotions and indexes, they appear to conquer this and keep on developing. It appears the terrible exposure has not prevented buyers from purchasing their garments since they have marked themselves in the business just like a pioneer in the most popular trend. 6. Portray how AF’ qualities can be utilized to make the most of chances to encourage the company’s accomplishment in the business. .ud94f1e89eb6f1f65fb469f63cf46d4ec , .ud94f1e89eb6f1f65fb469f63cf46d4ec .postImageUrl , .ud94f1e89eb6f1f65fb469f63cf46d4ec .focused content territory { min-stature: 80px; position: relative; } .ud94f1e89eb6f1f65fb469f63cf46d4ec , .ud94f1e89eb6f1f65fb469f63cf46d4ec:hover , .ud94f1e89eb6f1f65fb469f63cf46d4ec:visited , .ud94f1e89eb6f1f65fb469f63cf46d4ec:active { border:0!important; } .ud94f1e89eb6f1f65fb469f63cf46d4ec .clearfix:after { content: ; show: table; clear: both; } .ud94f1e89eb6f1f65fb469f63cf46d4ec { show: square; change: foundation shading 250ms; webkit-progress: foundation shading 250ms; width: 100%; murkiness: 1; change: darkness 250ms; webkit-change: obscurity 250ms; foundation shading: #95A5A6; } .ud94f1e89eb6f1f65fb469f63cf46d4ec:active , .ud94f1e89eb6f1f65fb469f63cf46d4ec:hover { haziness: 1; change: mistiness 250ms; webkit-change: darkness 250ms; foundation shading: #2C3E50; } .ud94f1e89eb6f1f65fb469f63cf46d4ec .focused content region { width: 100%; position: relative; } .ud94f1e89eb6f1f65fb469f63cf46d4ec .ctaText { fringe base: 0 strong #fff; shading: #2980B9; text dimension: 16px; textual style weight: intense; edge: 0; cushioning: 0; text-beautification: underline; } .ud94f1e89eb6f1f65fb469f63cf46d4ec .postTitle { shading: #FFFFFF; text dimension: 16px; textual style weight: 600; edge: 0; cushioning: 0; width: 100%; } .ud94f1e89eb6f1f65fb469f63cf46d4ec .ctaButton { foundation shading: #7F8C8D!important; shading: #2980B9; outskirt: none; outskirt range: 3px; box-shadow: none; text dimension: 14px; text style weight: striking; line-tallness: 26px; moz-outskirt sweep: 3px; text-adjust: focus; text-adornment: none; text-shadow: none; width: 80px; min-tallness: 80px; foundation: url(https://artscolumbia.org/wp-content/modules/intelly-related-posts/resources/pictures/basic arrow.png)no-rehash; position: outright; right: 0; top: 0; } .ud94f1e89eb6f1f65fb469f63cf46d4ec:hover .ctaButton { foundation shading: #34495E!important; } .ud94f1e89eb6f1f65fb469 f63cf46d4ec .focused content { show: table; stature: 80px; cushioning left: 18px; top: 0; } .ud94f1e89eb6f1f65fb469f63cf46d4ec-content { show: table-cell; edge: 0; cushioning: 0; cushioning right: 108px; position: relative; vertical-adjust: center; width: 100%; } .ud94f1e89eb6f1f65fb469f63cf46d4ec:after { content: ; show: square; clear: both; } READ: Hamlet: Contrast Plays A Major Role EssayThe quality of having gained notoriety for quality apparel is going to set Abercrombie separated from others in the design retail industry. Their showcasing technique in the past has went under overwhelming analysis for being to sexual, particularly since they are attempting to interest a more youthful gathering of individuals. Be that as it may, this has just made the Abercrombie Fitch name progressively alluring. The manner in which they market to their purchasers appears to work well indeed and they are proceeding to do as such. Considering the style and nature of dress AF offers, their clients are eager to follow through on the greater expense since they have an inclination that they need to wear the brand and have the â€Å"look† of Abercrombie. This is the explanation that Abercrombie Fitch will remain the pioneer in industry and keep on developing. ? References www. zimbio. com/Abercrombie+and+Fitch+Clothing/articles/LLQljU8UVsp/abercrombie +polos+Abercrombie+Clothing+070ces www. cbsnews. com www. usatoday. com www. wikiswot. com/SWOT/7_Apparel/Abercrombie___Fitch. html

Softball, not only a sport but my life. free essay sample

Life resembles a game. The exertion you set up as a regular occurrence are the outcome you find in the last occasion. There are the two positives and negatives, yet I have found that when things are adverse is the point at which you gain proficiency with the most and develop as a player and as an individual. In any game you have individuals that will impact you that are on you group and your adversaries. I have discovered that once you get passed the impediments, you thrive as an individual. To me softball just hasn’t been a game it has been my life and now and again all I truly needed to anticipate. All through center school softball truly wasn’t my thing however once I got into secondary school it transformed into my game the main thing I needed to do. It was the main game that had tested me intellectually and caused me to learn genuine exercises too. We will compose a custom exposition test on Softball, a game as well as my life. or then again any comparative subject explicitly for you Don't WasteYour Time Recruit WRITER Just 13.90/page My first year was the hardest year of my life particularly the start. My stone the individual I turned upward to had gotten remarried and was moving out of the state to West Virginia. My father leaving had affected me extraordinarily leaving me feeling desolate and upset about things I never had been vexed about. However, fortunately for me I found an outlet that helped me traverse my battles as an individual. At the point when I felt tragic I had a group to make me grin, or distraught I had something else to concentrate on. Softball instructed me to confide in individuals more and be increasingly open. Softball by then in life was a game as well as it was my life my solitary method of feeling happy with me as an individual yet in addition with everything at home. The mentors and partners I had all through secondary school enlivened me to be better, push the breaking point, and endeavor to be the best. At training I needed to endure my molding exercises as well as do them to my fulle st potential and push the breaking point. Not long after that I not just wound up needed to utilize my fullest potential on the field however with all that I did in life school work, tasks, and exactly at being a companion. I had battled with two things in softball keeping an inspirational mentality and hitting. So I continued taking a shot at my hitting and got trained at the plate just picking pitches I was certain I could get a bit of. This control helped me with everything using sound judgment, finishing my schoolwork to my fullest potential, and being the best individual I might be. My inspirational disposition was more enthusiastically to take a shot at however. It took me loads of growing up and mental assurance to push through just depending on the negatives and take a gander at all the beneficial things I had done. By overcoming my antagonistic hardest obstacle I had become an idealistic and constructive individual. Softball has assisted with being resolved, be the most ide al individual I can be, and make sense of how to through extreme things throughout everyday life. Continually being in a serious domain had helped me in the study hall and with life continually needing to be my best. Without softball being there to push me I don’t trust I would be the place I am at in my life today, a dedicated sure hopeful individual continually endeavoring to be my best and work harder to show signs of improvement at any assignment I am attempting to finish. For me softball was not only a game it was my establishment my beginning and end, something I would never abandon.

2 04CrusadesFacts Essay

2 04CrusadesFacts Essay 2 04CrusadesFacts Essay 1. What is a Crusade? Reestablish Christian principle over the region. 2. Significance of the Holy Land: hallowed for Judaism, Christianity and Islam. For Jews it is the guaranteed country. For Christians this is the place Jesus carried on with his life. For Islam Jerusalem is the holiest spot on earth Where Muhammad rose to paradise. 3. Byzantine Emperor: Alexius I Comnenus 4. Roman Catholic Pope: Most impressive figure in Europe. 5. Causes: a. ______all___ needed pardoning of sins and access to Christian blessed locales. b. ___pope______ needed to bring together Christianity c. _____knights____ needed experience and fortune d. _____kings____ needed more land e. ______merchants___ needed to extend markets and obtain new items f. _____peasants____wanted opportunity from administration on the house 6. Diminish the Hermit: sorted out workers and strays to go out and lecture the expression of God 7. The Crusades a. First Crusade 1096-1099 The principal Crusaders, drove by ___Godfrey of bouillon ______________________________, walked from Constantinople through grounds held by the Seljuk Turks to Antioch. ___constantinople_______, _____Antioch______, and ____Jerusalem_______ were caught by the Crusaders. The _____Edessa__________ and __the kingdom____________ were set up. The greater part of the Crusaders who had endure _and __returned home___________________. b. Second Crusade 1147-1149 Energy for the Crusades was at a __all time high________________. Sacred Orders of knights rode and battled, such as_____Teutonic knights___________, __Knights Hospitaller____________, and _____Knights Templar___________. Be that as it may, crusader assaults were inadequately composed, coming about in _____________. Like the First Crusade, numerous Crusaders ____returned home______________. c. Third Crusade 1187-1192 Saladin: believed that the Christian armed forces were unbelievers advertisement should have been ousted Richard the Lionheart (King Richard I): stayed to lead the Christian militaries d. Fourth Crusade 1202-1204 This Crusade was begun by the Pope, for the most part to ____increase________ the authority of the Church. The significant achievement of this Crusade end up being ____weakening ___________ the Byzantines enough that they could no longer hold off ______Muslim expantion______________. e. Last Crusades 1217-1272 Campaigns #5-8 were ____disorganized_____________ military endeavors with _____limited support___________. 8. Generally speaking Outcome of The Crusades: They all Failed 9. Children’s Crusade: A much discussed occasion

Swearing Words Are Rarely, If Ever, Inert For Meaning - 1100 Words

Swearing: Words Are Rarely, If Ever, Inert For Meaning (Essay Sample) Content: SwearingStudents Name:Institution:Words are rarely, if ever, inert for meaningIn every day of our social interactions within the society, language is considered the preliminary communication medium. This is one of the most powerful ideas that guide communication in civility. In their book, The Keys to Academic English, Hale and Basides have sufficiently laid out the elements of effective communication. They focus most of their discussion on the extent to which the offensive capacity of the swearing language can impact communication. The two authors consider communication and language interconnection by depicting the formation and function of language as a predominant factor to the onset of a formal communication, (Hale and Basides, 2013).Further, Hale and Basides challenge the utility and efficiency of multilingualism. They assert that the proficiency registered by communication is a higher ideal rather than the ability to converse in multiple language. Their book tak es a deep exploration into scholarly communication through a les model where words used offensively affect the potential communication of an academic register, (Hale and Basides, 2013). Besides, the strategy to understand a language is portrayed by the desire or need for control over the form and content in language. Jay, 2009 suggests that the language content and form are the background against which an effective academic communication is keened on.Hale and Basides in their established framework argue that the academic register should not only follow established rules which are conventional to civility during communication, but also conform to what the social rules within the target audience dictates. According to Hale and Basides, 2013, "words are rarely, if ever, inert for meaning" (p. 57), since they are accompanied with several diverse meanings which vary from one social definition to another. Words, depend on the context of communication and the audience being involved, (Jay, 2009).The presence of swearing word in any communication makes it impossible to a meaningful communication. It is inappropriate for an individual to use swearing in academic registers. . Register refers to a special type of language that is socially defined, by formality or for specific application in a trade, profession, skill or other social division (Hale Basides, 2013, p. 58). On the other hand it is worth noting that offensive language is always accompanied by a socio-ethnic inspiration. For instance, in some communities, how some of its members apply the expressive language is often integrated down to their relationships with other members of the community, (White, 2002, pg. 31). Although not all expressive words are offensive, it is equally important to make sure that an individuals register does not offend to an extent of attracting condemnation from law enforcements such as hate speech, sexual harassment, Obscene telephone call or verbal abuse, (Jay, 2009)Swearing languag e can be given a binary prism approach on the nature of abusive or non-abusive swearing. Swearing is not static. Swearing is not static and is subject to a dichotomy that identifies swearing "as both socially integrative and for insult" (White, 2002, 31). Farrelly, 2015 in her article argues that everyone has the right to offend since the freedom to offend is a right fundamental to democracy. She suggests to endorse views of Abbot, 2012 that the test of hurt feelings is not compatible with free expression, and that for free speech to gain a meaning, it is the right of others to express what they dislike and it is the freedom to be objectionable and obnoxious.Although swearing allows individuals to vent their emotions, and conversational swearing is not itself insulting, it is subject to degeneration of abusive language, (McEnery, 2004). It would therefore befit an individual to exhibit a mastery of contest and evaluate situations so the register of choice enhances effectiveness in c ommunication. In other words, swear words should not only be shaped by situational factors in particular social settings (White, 2002, p. 32), but also facilitate communicative purposes, (McEnery, 2004).Using an appropriate register requires an individual to possess an elaborate repertoire. A developed repertoire avoids diction which may seem to dehumanize people, or desensitize race through descriptive and prescriptive language, (Freud, 2015). Failure to use euphemism stigmatizes people to their detriment. For instance, sexist language facilitates gendered discrimination. Conversely, terms such as handicapped or disabled to refer to people with disability are politically incorrect and they negate inherent dignity of these people, (Halmari, 2011). In this light, language should be used to promote the social advantage of the interlocutors, (Hale and Basides, 2013). Futhermore, language is a key factor in ordering harmonious relationship among people, (Rassool,2014).Nationally, a regi ster should be composed of communication which enhance cultural and social processes. Altogether, language relations should facilitate social cohesion as well as individual and national interests. Bahabha argues the need to give voice to what he suggests as border lives Bhabha also suggests to address our cultural differences in terms of our cultural values, therefore people or groups from different societies practice different expectation and demand on living which can cause conflict between each other as they may have different opinions and perspective on how their cultural Differences and values are being practiced.However, swearing words...

Causes Of The Great Awakening - 799 Words

4. Explain the causes of the Great Awakening, and describe its effects on American religion, education, and politics. Over time people felt that religion was dying, and not many people really had one or practiced one, people felt that they needed to revive religion and this was known as the Great Awakening. This Great Awakening started with the fundamentals of religion, and tried to bring people back to christianity. John Edwards was like the leader, he was the head preacher and explained that good salvation game from God and not from doing good. During this Great Awakening, there was another preacher who soon came along, his name was George Whitefield. George Whitefield brought emotion out of people, he was a great speaker, but†¦show more content†¦Since people were always busy working and doing other things, their spare time was for practicing their religion and worshiping. People’s hobbies and things they liked to do such as painting and other arts were also a waste of peoples time. Reading was not very common either, not only were they a waste of time but they were also very expe nsive as well. One of the people who printed books and papers in New York was a man named John Peter Zenger, he wrote about things against the governor and was soon sent to prison because of these acts. 6. Describe the basic features of colonial politics, including the role of various official and informal political institutions. Royal colonies were colonies that were given governors directly from the king. There were eleven colonies, eight of them were royal colonies, and the other three were proprietary colonies which mean that the people that controlled them were local proprietors. Most governors in these colonies got the job done and did a lot for their colonies, but there were some that became corrupt. More people were beginning to be able to vote, although it was limited to only men who were white, more white men were able to vote as well. 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Dead Man Walking Analysis Of The Movie Essay Example For Students

Dead Man Walking Analysis Of The Movie Essay People in society today have changed their feelings towards humanity and religious practises. This change is seen clearly in the movie Dead Man Walking. The characters go through changes in their view of religion and their feelings about human morality and humanity towards each other. The characters of Sister Helen, Matthew, and the victims parents all went through these changes during the movie for different reasons. These emotional changes that the characters went through are very common. Everyone changes their ideals and morals depending on their situation. Matthews ideals changed because he feared that he was going to die alone. Sister Helens feelings changed because she saw a side of Matthew that no one else was able to see. The parents of the victim Hope were filled with revenge because of what Matthew did, not why he did it. The father of the victim Walter was very sympathetic, he understanding of what Matthew was going through. SISTER HELEN Sister Helen was very unsure about what she was doing in life. She became a nun to give back to the community which gave her good Christian morals and values. By becoming a nun she was able to teach others to respect life and become more like Jesus A Son of God. As a child Sister Helen was taught to be very supportive and to give this support to those who needed her help. When confronted with Matthew, Sister Helen tries to see the good in him and show him the respect she believes he deserves. She believes that there is good in all man and that every person deserves respect. Sister Helen understands that what Matthew did was wrong, but she also knows that every person is worth more than their worst act, and that ,No man deserves to die . . . . In Sister Helens mind every man deserves a chance. From insight into her background and Christian upbringing Sister Helen is able to see and feel for Matthew as a person and not as an object of scum or as a monster . The medias understanding and the victims parents understanding is that Sister Helen believes that Matthew was wronged by the system. They feel like they have been betrayed by a Gods messenger Sister Helen. To them Sister Helen is on Matthews side by helping him find God. Sister Helen is being torn apart because she does no want to hurt anyones feelings. She is compassionate and sympathetic to everyones feelings, but does not mean to hurt any by her actions of helping a murderer find God. At the end of the movie Sister Helen wants Matthew to see a face of love Hers not one of hate and resentment The Victims Parents. This means a lot to her because she has seen Matthew the person no longer Matthew the monster. Sister Helen felt compassionate towards Matthew because of the person he had become through getting to know her and understand what she believed and wanted. MATTHEW At the beginning of the movie Matthew is rude and abrupt to Sister Helen thats what happens on death row, you start to hate and resent everyone. Matthew never thought that he would be visiting with a nun. Soon Matthew trusts Sister Helen and persuades her to help him by filing a petition not to kill him by lethal injection. This was a turning point in his attitude in understanding right and wrong. Matthew thinks that he got screwed by the system thats why hes going to die, not because he did something wrong. Matthew never had anyone that really cared about him except Sister Helen. .uaf7a15ed7702812a19c85b662ba1527d , .uaf7a15ed7702812a19c85b662ba1527d .postImageUrl , .uaf7a15ed7702812a19c85b662ba1527d .centered-text-area { min-height: 80px; position: relative; } .uaf7a15ed7702812a19c85b662ba1527d , .uaf7a15ed7702812a19c85b662ba1527d:hover , .uaf7a15ed7702812a19c85b662ba1527d:visited , .uaf7a15ed7702812a19c85b662ba1527d:active { border:0!important; } .uaf7a15ed7702812a19c85b662ba1527d .clearfix:after { content: ""; display: table; clear: both; } .uaf7a15ed7702812a19c85b662ba1527d { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .uaf7a15ed7702812a19c85b662ba1527d:active , .uaf7a15ed7702812a19c85b662ba1527d:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .uaf7a15ed7702812a19c85b662ba1527d .centered-text-area { width: 100%; position: relative ; } .uaf7a15ed7702812a19c85b662ba1527d .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .uaf7a15ed7702812a19c85b662ba1527d .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .uaf7a15ed7702812a19c85b662ba1527d .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .uaf7a15ed7702812a19c85b662ba1527d:hover .ctaButton { background-color: #34495E!important; } .uaf7a15ed7702812a19c85b662ba1527d .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .uaf7a15ed7702812a19c85b662ba1527d .uaf7a15ed7702812a19c85b662ba1527d-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .uaf7a15ed7702812a19c85b662ba1527d:after { content: ""; display: block; clear: both; } READ: Poetry Analysis for you EssayMatthew was always lonely and only cared about number one Himself . By talking and sharing with Sister Helen he starts to understand what he did was wrong. Matthews mother was asked to pled for his life. This allowed the media and the parents of the victims to see him as someones child much like their own, and to explain that he was good boy not a monster. She explained in court that he had, had a hard life but he was a good boy. Matthew wanted to protect his mother and not let her see him on trial for what he did. Matthew wanted to keep his pride by not seeing his mother crying for him. He wanted her to be happy and to not worry about him. This compassion is crucial to the total change in ideals and morals that Matthew has now After knowing Sister Helen. Matthew was going through a lot of changes now that he was going to die within a week. His understanding of life and humanity changed drastically from being a racist, saying that all the Black are victims and keep having slavery, to feeling compassion to everyone. Many of these feelings are because of his understanding of human life, as his life nears the end. This changes are all caused by the situation he is in. At the end Matthew hopes that the father of Walter the victim can forgive him and accept that he knows what he was wrong and should be punished for it, but not punished to death. Hopes farther does forgive him at the vary end of the movie. As for the parents of Hope, Matthew hopes that his death makes them happy even after the death of their son. Matthew also accepts responsibility for what he did and Sister Helen explains to him that by doing that he is now a son of God and can die with dignity. This is what was needed for Matthew, as a person.

Use tables or graphs to illustrate the price stability performance of Japan Essay Example

Use tables or graphs to illustrate the price stability performance of Japan Essay Japans economic slump, which began with a stock market crash in 1989, now lies in its fourth recession in ten years. The Asian banking and financial crisis has had a profound effect on this, the second largest economy in the world. Japanese under performing banks are carrying Yen150 trillion ($1.3 trillion) of bad loans. State-run corporations are dragging productivity down, unemployment is rising and Japanese consumer confidence remains low. Macroeconomic policy is proving highly unstable as Japans illness that of deflation remains predominant. Price stability is defined as the sustained absence of both inflation and deflation. (Mc Aleese: p.294, 2001). Further economic agents can make decisions regarding economic activity without being concerned about the fluctuation of the general price level. Along with effective fiscal policy, the control of government spending, low unemployment levels, controlled interest rates and hence inflation rates, macroeconomic policy is maintained. The most serious aspect of Japans economic sickness is deflation. Japans paralysis, where ineffective control measures have had many negative results, will now be discussed. Price Stability: We will write a custom essay sample on Use tables or graphs to illustrate the price stability performance of Japan specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Use tables or graphs to illustrate the price stability performance of Japan specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Use tables or graphs to illustrate the price stability performance of Japan specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Price stability, or rather instability in Japans case, is characterised by the prolonged presence of deflation. The stock market is hovering around a 19 year low. The Nikkei 225, the most commonly used Share Price Index, had stood at 14 times the Dow through the 1980s. However in February 2002 it dropped below the Dow Jones Industrial for the first time since 1957. Japans persistent decline in the general price level is again indicated by the Consumer Price Index. Prices have shown a 1% fall per annum. These falling price levels have increased real debt burdens. National debt stands at over 130% of GDP (www.economist.com). Also Japans banks are chronically weak and burdened by duff loans of Yen37 trillion, about 7% of GDP. So Japanese banks have been left carrying excess bad loans, forcing them to cut lending. Together with depressed consumer spending it has proved impossible for the Bank of Japan to deliver the negative real interest rates that the economy needs to revive demand. Interest rates in Japan stand at virtually 0%. However most companies are not investing but paying down their debts (mentioned above). This adverse impact on investment is also due to the fact that real long-term interest rates in Japan have reached high percentages. The fact that interest rates stand at zero has kept inefficient firms afloat and delayed restructuring. This has contradicted Japans bust advantage. Structural adjustment and creative destruction can prove positive outcomes of negative fluctuations. However, rigid labour and product markets, along with the Japanese keiretsu relationship have hindered the weeding out of inefficient firms. Simultaneously, low interest rates have led to low inflation rates (-0.6% in 2001). This has reflected weak demand and thus the economic slowdown. These supply-side factors, such as the intensification of global competition and deregulation, have put additional downward pressure on prices. This is contributing to the high debt ratio and subsequent price destruction. This bout of recession and deflation has not only had negative impact on CPI, share prices, investment and inflation but also on property prices. Since 1991, commercial property prices have dropped by an average of 84% in Japans six biggest cities (www.economist.com). Housing demand has also collapsed since 1996. Analysis: It remains evident that Japans economy lies in uncertainty, where consistent unstable price performance has given rise to the lost decade. Its current situation comprises of internal factors (e.g. buyer uncertainty) and external factors (e.g. the U.S. current bubble burst). These counter-cyclical variables have had the following negative effect the decrease in economic activity in Japan has led to the increased unemployment rate (+5.3%), bankruptcies, non-performance loans etc. Analysing Japans current prolonged crisis, it becomes evident that it displays attributes of Keynesian economics. The existing shifts in aggregate demand, the low rate of investment and price rigidities, all clearly display this. Price stability is an indispensable prerequisite to ensure sustainable development of the economy (Masaru Hayami, Governor Bank of Japan). 77 year-old Mr. Hayami however has failed so far to deliver such a position. This political paralysis, where political resistance to reform is demonstrated, is hindering Japans recovery. Again, the current Japanese Prime Minister, Junichiro Koizumi (elected April 2001), who unveiled a series of economic reforms has met with little success against this rigid political system, resistant to reform. Furthermore his termination of Makiko Tanaka (his Foreign Minister) in January 2002, along with his lack of co-operation with Economics Minister, Heizo Takenaka, has left Japan still in search of a cure. Is there Evidence of Inflation or Deflation in Japan at the moment? What problems might be associated with very low inflation or deflation? Deflation is defined as the persistent decline in the general price level of goods and services1. The most common measure of inflation statistics is the Consumer Price Index (CPI). In Japan, this has fallen at a rate of about 1% since 1999. If the GDP Deflator is used this deflationary trend can be traced back to 1995. The difference between potential and actual GDP is called the output gap. This is another indicator of price stability (or instability). Price stability is defined as the sustained absence of deflation (falling prices) and inflation (rising prices). It is fundamental to the second pillar of the new consensus, macroeconomic stability. Therefore policy makers welcome disinflation and low inflation. Owing to the bias2 in constructing CPI indices, an inflation rate of 0-2% has become acceptable. There are certain costs of changing prices regardless of whether these are due to high inflation or deflation. There is a loss in efficiency as menu costs and shoe leather costs are incurred. Additionally, the necessary fiscal and monetary policies required to attain stability are costly. More specifically, why is deflation problematic? Initially, falling prices seem like a good thing and people feel as if they have more money in their pockets to spend. Even those on a fixed income, (state pensions, social welfare) benefit from an increase in real income. In spite of all this, the far-reaching contagion effects of deflation mean it is a phenomenon to be avoided. Rather than spending more on the goods, which they can now afford, a continuous fall in prices means that consumer and investor spending actually slows down. Consumers and businesses are reluctant to buy goods, which they expect to drop in value in the near future. Such speculation curbs investment and saving increases. In an effort to encourage borrowing for investment, nominal interest rates fall and approach zero. Since the nominal interest rate is the opportunity cost of holding money, savings further increase. This fall in investment demand and activity retards economic growth. Furthermore, since the nominal interest rate cannot fall below zero, the real interest rate will always be positive. In times of deflation, the burden of debt therefore increases. It would seem that lenders gain and borrowers lose. The problem for lenders occurs when debt rises too high and borrowers cannot afford repayments. Banks who earn profits through loan repayments cannot attract big borrowers. T his type of debt deflation is the main problem in the Japanese economy today but is also reminiscent of the Great Depression in the 1930s. In times of low economic growth, it is typical to lower the currency value thereby making exports more attractive to foreign investors. However, the low nominal interest rates induced by deflation have caused foreign demand for the Yen to rise. The Yen remains strong and exports remain relatively expensive. On the whole, wages are accepted to be ratchet. This means that even if prices are falling, the nominal wage rate will not fall. Higher debt repayments and squeezed profits mean that the pressure on companies to cut costs is twofold. This leads to a Darwinian shake-out as companies see job cuts as the only option to save on costs. Deflation is clearly at the root of Japans failing economy. Policy makers must now look to the formulation and implementation of an effective plan to fight deflation if there is any hope of a recovery.