Effects of Quantitative Easing on Food Prices Research Paper

Effects of Quantitative Easing on Food Prices - Research Paper Example Eventually, this leads to inflation. This paper demonstrates the effects that come about because of employing quantitative easing on food prices. Rise in food prices One of the established effects of quantitative easing is that it results to a rise in food prices. The reason behind this fact is that quantitative easing entails making of more money in order to assist in solving the situation affecting the economy. However, making of more money contributes in undervaluing the present ones in the economy of a country. Therefore, the country tends to experience hyperinflation. The inflation results to a rise in various commodities. Some of these commodities include raw materials associated with the production of food. Rise in raw materials especially in the agricultural sector forces most of the producers to increase the selling price of their products. Eventually the final consumer ends-up buying food at a higher price than usual. In every financial year, food producers tend to look on when they can be able to make more profits from the price of their commodities. Therefore, the producers are forced to increase their prices with an aim of avoiding incurring losses when inflation occurs especially because of quantitative easing (Duncan 162). ... Most of the small-scale farmers stops farming because of rising prices of various agricultural commodities ending up reducing their production. When most of the small-scale farmers fail to produce more goods as expected, the price of food in the market rises. In some cases, most of the small-scale farmers’ stops enacting agricultural related activities because of farming difficulties due to rise in prices of commodities. This creates a high deficit on the farm products hence a rise in food prices. Rise in international prices of raw materials and agricultural products Apart from the small-scale farmers being affected by inflation because of quantitative easing, large-scale farmers also tend to experience the same effects. Apart from the above outlined examples, showing effects of inflation due to quantitative easing, inflation also causes a rise in the import price index. This means that various raw materials related to agriculture like farming inputs that include fertilizers tend to rise in their prices. Some of other imported agricultural inputs that tend to rise in their prices because of inflation include farming machines and chemicals. Moreover, some of the seeds imported from other countries rise in their costs due to inflation. Failure of farmers to access the inputs contributes to low production of food hence rise in their prices. High cost of inputs makes most of the farmers fail to buy much of the products contributing to a decline in their activities. A decline in farming activities means that the production of law materials will eventually be low. This contributes in making the prices of the produced food rise. Rise in cost of activities in food manufacturing industries There is established evidence that inflation cause

Mgt a 2 r Essay Example | Topics and Well Written Essays - 500 words

Mgt a 2 r - Essay Example It is true to say that recruiters at the annual career fair of the Miami University of Oxford have been demonstrating biasness in acquiring of personnel for their organizations. In this case, the bias hiring of employees is an unconscious unethical behavior on their part. It is bias in nature to only hire Miami graduates into their company because graduates from different institutions are not considered as potential candidates for roles in the represented organizations. The decision is considered unconscious because the recruiter who is an Alumnus of the University may be fixed to the notion that the institution produces highly qualified individuals or the reason the organization placed them, as a recruiter at the University was to fetch another graduate. The two decisions made by the recruiter are based on the background of the candidate that is affiliation to the learning institution and credit claim. Favoritism is a term used to refer to granting a favor to someone because of background similarity. In doing so, one eliminates those from different backgrounds (Banaji, Mahzarin, Max, and Dolly 5). The unethical behavior affects the performance of an organization in the long term. People belonging to the same background do not necessarily mean they possess the same talents that an organization requires. Unwanted talents or lack of the necessary talents in an organization is a liability. Investing resources in individuals who contribute to the organization minimally in terms of earning revenue is a financial loss to a business. Expenditure that exceeds revenue is an indication of business failure. For this reason, the recruitment strategy that the organizations apply in acquiring personnel in reference to the annual Career Fair of Miami University is a fail on the part of managers for it affects an organization’s performance