Archive for the ‘Encyclopedia’ category

Listening Skills in Business

September 29th, 2009

Expressive skills and receptive skills make up the two skills of communication. Speaking and writing are generally referred to as expressive skills they provide the means by which we express ourselves to others. The receptive skills, listening and reading, are the ways in which we receive information.

It has been reported that senior officers of major North American corporations spend up to 80 percent of their working time in meetings,discussions, face-to-face conversations, or telephone conversations. Most employees spend about 60 percent of the work day listening. Since such a large percentage of one’s waking time is consumed by listeningactivities, it is clear that we could increase our productivity through listening training.

Listening consumens about half of all communication time, yet people typically listen with only about 25 percent of their attention. Ineffective listeningis costly, whether it occurs in families, businesses, government, or international affairs. Most people make numerous listening mistakes every day, but the costs financial and otherwise are seldom analyzed. Because of listening mistakes, appointments have to be rescheduled, letters retyped, and shipments rerouted. Any number of catastrophes can arise from a failed communication regardless of the type of industry. Productivity is affected and profits suffer.

Research indicates that we hear only 25 percent of what is said and, after two months, remember only one-half of that. This has not always been the case. In first grade we heard 90 percent of what was said, in second grade 80 percent, in seventh grade 43 percent, and by ninth grade only 25 percent. It is imperative that we strive to improve our listeningskills. When havingdifficulty understanding a document that we’re reading, we can reread it for clarification. However, we cannot relisten to oral messages, unless they are mechanically recorded. The listener may misunderstand, misinterpret, or forget a high percentage of the original message. With proper training, though, listening skills can be improved. It has been proven that with extended, focused trainingin listening, one can more than double one’s listening efficiency and effectiveness. » Read more: Listening Skills in Business

Protection Of Property and Intellectual

September 13th, 2009

Local authorities, of course, provide police protection from theft of inventory and other company property by customers, employees, or outsiders. Yet there is another property that many businesses have that is at least as valuable which is also protected by law—secrets, patents, copyrights, and trademarks/names.

Business Secrets. Businesses frequently keep secret information that is the heart of this business. Customer lists for an insurance company or a stockbroker are examples. State and federal law severely punishes anyone who steals or makes use of such property. The most famous secret in the world might be the formula for Coca-Cola. If any person or company can duplicate Coca-Cola, they may produce and sell it under their own name. The law protects the secret from theft but not from duplication.

Patents. Patents are a protection given by the federal government for inventions. A patent gives the inventor the exclusive rights for seventeen years to use or license the invention. Anyone infringing on the patented product is subject to fine and imprisonment. » Read more: Protection Of Property and Intellectual

International Monetary Fund

September 11th, 2009

The International Monetary Fund was established to foster international trade and currency conversion, which it does through consultation and loan activities. When created in 1946, the IMF had 39 member countries; by November 1999 the membership in the IMF had grown to 182 member countries. As of this writing, every major country is now a member, including the former communist countries, as are includes numerous small countries. The only exceptions are Cuba and North Korea.

To join the IMF, a country must deposit a sum of money called a quota subscription, the amount of which is based on the wealth of the country’s economy. Quotas are reconsidered every five years and can be increased or decreased based on IMF needs and the prosperity of the member country. In 1999, the United States contributed the largest percentage of the annual contributions 18 percent because it had the largest, richest economy in the world. Voting rights are allocated in proportion to the quota subscription.

Industry in Transformation Securitization

September 11th, 2009

With population growing in coastal, as well as hurricane, and  earthquake-prone areas in the United States and scientists predicting a 100 percent chance of a major earthquake in the century before 2010, the insurance industry is faced with a potential megadisaster earthquake or hurricane that could produce insured losses in the $75,000,000,000 to $100,000,000,000 range.

Losses of that magnitude would wreak havoc to the industry (see Table 3 for a list of the ten largest catastrophes as of 1999). In 1996, the industry started to securitize its catastrophe risk by packaging insurance risk as securities that could be traded in the capital markets, whose combined $26 trillion is 80 times greater than the capital of the insurance industry. To date, the industry has been successful in selling more than $4 billion worth of catastrophe-linked securities, it plans to build on these successes and continue to spread catastrophe risks to the capital markets through the issuance of catastrophe securities. As the insurance industry continues to converge with the capital markets and the financial services industry, other lines of business are likely to be securitized. » Read more: Industry in Transformation Securitization

International investment

September 8th, 2009

International business is not a new phenomenon it extends back into history beyond the Phoenicians. Products have been traded across borders throughout recorded civilization, extending back beyond the Silk Road that once connected East with West from Xian to Rome. The Silk Road was probably the most influential international trade route of the last two millennia, literally shaping the world as we know it. For example, pasta, cheese, and ice cream, as well as the compass and explosives, among other things, were brought to the Western world from China via the Silk Road.

What is relatively new, beginning with large U.S. companies in the 1950s and 1960s and with European and Japanese companies in the 1970s and 1980s, is the large number of companies engaged in international investment with interrelated production and sales operations located around the world. At no other time in economic history have countries been more economically interdependent than they are today. Although the second half of the twentieth century saw the highest sustained growth rates of gross domestic product (GDP) in history, the growth in the international flow of goods and services has consistently surpassed the growth rate of the world economy. Simultaneously, the growth in international financial flows including foreign direct investment, portfolio investment, and trading in currencies has achieved a life of its own. Daily international financial flows now exceed $1 trillion. » Read more: International investment