BUSINESS ENVIRONMENT

Contemporary Issues in the Business Environment



Contemporary Issues in the Business Environment

Introduction

Since the crisis began in 2007, has created a great strain on the role that has the dollar, has been questioned by powers such as China and Russia. The major central banks and governments are negotiating on the debate about reforming the current international monetary system by the U.S. government happened in the early 70's. Until today, the dollar has remained the reserve currency with no real support after breaking his last ties with the gold standard. The recent appeal of some major countries to include in the global financial system reform a section on the "currency" is therefore justified. However, upon examination, it appears that its basis is largely "political" and is primarily intended to enter the United States in the rank of a multipolar world become when the implications "financial" is very limited, as try to prove it. Although to date no concrete proposal has been put forward detailed, those who advocate such reforms appear to be based on the concept of "Special Drawing Rights" ("SDRs") "issued" in due time by the IMF. It would thus be a "money of account" whose value is based on that of a fixed "basket" of currencies.

The UN has just appear what was getting adjourned in abstruse in the corridors of power. The bureau proposes to ameliorate the all-embracing budgetary system, a new Bretton Woods to alter the dollar hegemony. Since the beginning of the acclaim crisis in mid-2007 the astriction about the role of the dollar in the budgetary architectonics has been questioned by some of the worlds above powers, abnormally China and Russia (Benjamin 2000, pp. 91).

The world today is dominated by money and financial institutions. An unhealthy and unsustainable situation. A new currency, the ethical (global name derived from the word ethics), should be introduced gradually over the world to replace existing currencies in order to reduce abuse and increase the fairness and honesty. A new institution, the Global Peace Fund should be created to bring real value to the financial world and the world in general.

Arguments for the Introduction of New World Currency

The collapse of the financial system of the United States is generating a great deal of mistrust in the banking system and the dollar as international reserve currency. International reserves of countries like China that is in dollars, they begin to threaten. The Chinese government believes that the dollar is having an unstable behavior and that is dragging the types of change that generates a large volatility. Instability, volatility or variability that is not good for international economic relations.

The collapse of the financial system of the United States is generating a great deal of mistrust in the banking system and the dollar as international reserve currency. International reserves of countries like China that is in dollars, they begin to threaten. The Chinese government believes that the dollar is having an unstable behavior and that is dragging the types of change that generates ...