Answer questions Assignment Example | Topics and Well Written Essays - 2500 words - 1

Answer questions - Assignment Example Starting a project requires definition of what the project is required to accomplish. A project starts with an idea them the vision that must be associated with the vision of the business. Project charter acts as the starting point where it established the foundation of the project. This must include the business needs and the deliverables to be executed. All the stipulations must be tied up to roles and responsibilities of the project development team. Human and material resources must be well defined (Goldratt, 1997). Often, an organization must put more efforts in estimation of the cost of the project in the chartering stage. The risks affecting the projects are also considered and their effects to the duration and cost of the project evaluated. The benefits and cost estimates must be supported using consistent approaches which provide realistic estimates for both costs and benefits. The establishment of the vision of a project in accordance with the project charter facilitates the success of the project. The project charter must corresponds to the business case put across to demonstrate that the project is viable and will assist in achieving the financial, employee and customer goals. The project chartering phase allows for establishment of an effective process that identifies and resolves various issues and actions that arise during the project development process. The chartering process forms the first step in execution of Lean project (Leach & Lawrence, 2005). Getting the sponsors and management to sign is normally difficult. Only one person is required in championing the project and passing it around. A good charter must be in a position to offer a written documentation that efficiently approves the launch and the requests of the efforts in project planning. Furthermore, the documentation of the project charter allows for collaboration of the major stakeholders and improves the deliverables. This must fairly represent the views of major

Purchasing power parity Essay Example | Topics and Well Written Essays - 1750 words

Purchasing power parity - Essay Example bsolute purchasing power parity to distinguish it from a related theory relative purchasing power parity, which predicts the relationship between the two countries relative inflation rates and the change in the exchange rate of their currencies (Wikipedia, 2006). It is important in international economics for at least three reasons. First, it provides a particularly simple theory of exchange rate determination: it predicts that, if the relative price of two currencies is flexible, then it will adjust to equal the ratio of their price levels. Second, if this kind of adjustment does not take place, the ratio of price levels can nonetheless provide a reference point against which the current exchange rate can be deemed to be "under- or over-valued" relative to its PPP level. Finally, irrespective of whether PPP will ever occur in practice, deviations from it must be taken into account in making international and interregional comparisons of real income (Neary, 2004). The theory assumes that the actions of importers and exporters, motivated by cross country price differences, induces changes in the spot exchange rate. In another vein, PPP suggests that transactions on a countrys current account, affect the value of the exchange rate on the foreign exchange market. This contrast with the interest rate parity theory which assumes that the actions of investors, whose transactions are recorded on the capital account, induces changes in the exchange rate (Suranovic, 1999). Although earlier studies, like Froot and Rogoff (1995) had reported evidence of short run violations, many economists as Mc Donald (1996), Wu (1996) and others still hold the view that over the long run, relative price may move in proportion to the nominal exchange rate so that the real exchange rate will revert to its parity. Hence, it becomes important to test PPP as a long run relationship. PPP theory is based on an extension and variation of the "law of one price" as applied to the aggregate