Ethics Kantian Ethics - 2099 Words

Ethics essay – Kantian ethics a.) Explain Kant’s concept of duty Immanuel Kant was a German philosopher who was concerned with producing an ethical theory that was logical and absolute, and did not change depending on the situation, countering the views of John Locke and other empiricists of the time. His ethics are based on duty, rather than looking at the end product of an action. He thought that his theory was so important that it could be rivalled with the Copernican revolution, in that it would utterly change everyone’s concept of morality in the same profound manner. There are two main dictionary definitions of duty, obeying a superior, and obeying the moral law in doing the right thing, and Kant was concerned with the latter. In†¦show more content†¦He himself uses the example of a good shopkeeper, in which a small child gives a shopkeeper a large amount of money for a cheap product, unaware of its value. Firstly, the shopkeeper could give the child the wrong amount of money, which would of course be immoral, or they could give the correct amount of change, but with the intention of improving their reputation, and business with it. They should give the correct change, with only the good will in mind, not with the intention of good business. It is the shopkeeper’s duty to act with integrity, as to not treat people as means to ends, and it is our duty as well. Kant believed that there must be some reason, some reward for our doing good actions. This he described as the `summum bonum`, or the greatest good. We are not able to gain the summum bonum in this life – as Kant observed people who were not living morally, but living happily, and vice versa – so we must be able to get there in the afterlife. He postulated the existence of heaven because of this, and it’s in heaven that we achieve this in the afterlife. Finally, the three postulates of reason are three things that are needed for this theory to work. These include freedom, immortality, and the existence of God. He realised that we must be able to make our own decisions freely, that we have the ability to make wrong decisions as well the correct ones. There must an afterlife for us to able to reach the summumShow MoreRelatedThe Ethics Of Kantian Ethics3078 Words   |  13 PagesThe impact of Kantian ethics has been truly extensive in the philosophical community for centuries now. Numerous philosophers have accepted, disputed and further developed the Kantian style of ethics in the modern era. German philosopher Immanuel Kant has established a theory based on a simple few concepts. Some of the key features of this theory are intrinsic goodness, moral worth and a few others that I will establish further later in the essay. In this thesis I will be highlighting if consequencesRead MoreEthics Vs. Kantian Ethics1249 Words   |  5 Pag esprominent ethical theories that arose were utilitarianism and deontological ethics. Both ethical theories developed to establish and justify a set of different moral rules and principles. Utilitarianism, otherwise known as consequentialism, is an ethical theory that sees the best moral decision is one that maximizes utility, which implies that no moral decision is intrinsically right or wrong. Deontological ethics or Kantian ethics is a normative ethical theory that judges the morality of a decision isRead MoreKantian Ethics1459 Words   |  6 Pageslives it is their responsibility to make certain that young children will learn to make logical decisions that would contribute in a positive way in society. An ethical theory that would best describe people that influence young children would be Kantian`s ethics. His ethical theory elucidates that morality is when we act based on duty for duty`s sake not for self-interest. For this reason in order to respect the law, a sense of duty to one`s actions is necessary (Kant, 287). Based on this analysis, youngRead MoreKantian Ethics And Communitarian Ethics Essay1448 Words   |  6 Pagesgood? In order to answer this question, I will analyze two concepts: Kantian Ethics and Communitarian Ethics. Using Ethical Issues in Modern Medicine by Bonnie Steinbock, Alex London, and John Arras, I will explain both concepts and their understanding of moral reasoning. Focusing on categorical imperatives and the universality test, I will explain Kantian ethics in reference to the good will. I will then explain Communitarian ethics in reference to collectivism. Using both ethical concepts, I willRead MoreKantian Ethics and Christian Ethics1400 Words   |  6 PagesKantian Ethics and Christian Ethics Immanuel Kant the founder of the Categorical Imperative (CI) argues that morality is based on standards of rationality. Therefore, to act in disaccord with the CI is to act irrationally or immorally. In comparison to Christianity, to act immorally is to act in disagreement with Gods laws. Kants CI is formulated into three different ways, which include: The Universal Law Formulation, The Humanity or End in Itself Formulation, and The Kingdom of Ends FormulationRead MoreOn Utilitarianism and Kantian Ethics 1681 Words   |  7 Pages1. Introduction There is little doubt that Utilitarianism and Kantian Ethics are by far the two most important ethical theories throughout contemporary philosophy. Though both attempt to answer questions about morality and behavior, the two theories have many fundamental differences: one evaluates actions in terms of the utility they produce whereas the other considers whether actions fulfill duty; one emphasizes consequence where the other highlights intentions; one sees desire as essential whileRead MoreAristotelian Ethics And Kantian Ethics1303 Words   |  6 PagesAristotelian ethics is more concern with the personality of a person and their ability to do good without strict rules or guidance, while utilitarianism and Kantian tell you what your duty is and what you need to do to be a moral person. The responsibility always falls back to the person no matter what principle they follow, but Aristotelian ethics doesn’t condemn you if your decision leads to bad consequence or unhappiness. 3. Virtue ethics seems more realistic than utilitarianism and Kantian ethicsRead MoreEdward Snowden Kantian Ethics1885 Words   |  5 Pagesï » ¿ Edward Snowden, Kantian Ethics Edward Snowden the Ethical Issue In early 2013 a man by the name of Edward Joseph Snowden began leaking classified National Security Agency (NSA) documents to media outlets, which in turn ended up in public ears. These documents, mainly involving intelligence Snowden acquired while working as an NSA contractor, are mostly related to global surveillance programs run by the NSA. This has raised multiple ethical issues ranging from national security, information privacyRead MoreThe Ethical Concepts Of Kantian Ethics Essay1043 Words   |  5 Pagesstudies belongs to the analysis of ethics, morality and law as the main regulators of the human behavior in the society Kant is known as the founder of the deontological ethics (Kantianism), which presents a rational alternative to the utilitarian ethics and ideas. Particularly, the deontological findings and categorical imperative of Kant prove that it is virtually impossible to act immorally. The aim of this paper is to analyze the ethical concepts of Kantian ethics and pro ve the fact that acting immorallyRead MoreKantian Philosophy : Kantian Duty Ethics Essay1309 Words   |  6 Pages2. Define and describe Kantian Duty Ethics, with reference to the Principle of Universalizability and the Principle of Humanity. Do you find this theory plausible? Why or why not? Kantian Duty Ethics is named after its creator Immanuel Kant. The way the Kantian approaches morality is by Deontological ethical theory. The word deontology comes from the Greek word deon, which translates to duty. (thefreedictionary) In deontological ethics it’s believed that morality is primarily a matter of rights and

Racism And Nativism - 1083 Words

1. What is nativism and xenophobia and how are they being expressed in today’s society? (20 points) - Nativism is known as a policy in which protects native born people from immigrants that are seen to be a threat or dangerous. Xenophobia is an intense fear or prejudice against people from other nations. Nativism can be seen today when thinking about politics, President Trump wants to â€Å"build a wall† to keep the immigrants from coming into the united states because in his eyes and some others, they are considered to be dangerous. Xenophobia happens every day to those who are colored, something simple like walking down the street a woman might hold onto her purse in fear she might get robbed by them or, a colored person going into a store.†¦show more content†¦4. Why has a majority in the United States harbored such a long and deep distrust of Catholics? Explain what events, persons, or characteristics served to prolong such anti-Catholic behavior into the 20th century. (10 points) - The Native Americans and the Know-Nothing promoted anti-Catholicism, the Know-No thing made it their job to diminish the growth of Catholic power. Prejudices on anti-Catholicism was shown in textbooks at schools, showing priest living a luxury life while people were living in poverty and starving. Then in 1844, Philadelphia school board decided to except the Catholic bible during bible readings. This caused an uproar with an anti-Catholicism group demanding that the use of the Catholic Bible be kept out of public schools. This caused large crowds to gather, trying to find a solution. However, the crowd became too hectic and violence broke out. After was the election of 1855, Catholic voters were attacked and destroyed Catholic property. 5. How was anti-Semitism promoted in the United States during late 1800s and through World War II? (10 points) - One of the ways anti-Semitism was promoted was through Henry Ford, since Ford was a publisher he was able to print a document stating Jewish conspiracies plotting to destroy Christian civilization and create Jewish sovereignty. Ford had such a popular audience that many believed what he had wrote. Even after he retracted his document due to forgery he continued toShow MoreRelatedNativism and Racism after the Civil War663 Words   |  3 Pagesperspective in Nativism and Racism. Both of these ideologies have various differences with definite degrees being successful during the elements of American history. Elements contained by immigrant groups or policies such as the â€Å"Jim Crow Laws† or â€Å"Ku Klux Klan† have significantly reformed patterns within America’s settlements. The term â€Å"nativism† is appealed for ethnic, religious, cultural or racial reasons. It is also referred as discrimination based on where you come from. The upsurge of nativism was causedRead MoreAnti- Immigration Attitudes in America Essay608 Words   |  3 PagesThe ideologies of racism and nativism affect people by racially driven hate crimes and the overall human treatment of immigrants and foreigners today, and must be changed by first changing the anti-immigrant attitudes in America. The social structures of politics and laws affect both immigrants and U.S. citizens alike and can only be changed by reforming America’s immigration system. Racial prejudice and nativism are still social issues that define our present reality and affect us all. EverydayRead MoreThe Effects Of Nativism1490 Words   |  6 Pagesopportunity, their American Dream? As a result of concerns such as these, the belief in Nativism became strongly held by the American people, which was commonly showcased through family values, private organizations, and federal laws. However, Nativism wasn’t universal. Advocates for Chinese immigration, such as Mark Twain and Jane Addams, supported immigrant’s attempts at Americanized living, despite criticisms. Nativism originated from the belief and fear of the economic and social repercussions of ChineseRead MoreEth/125 Week61601 Words   |  7 Pages 5. The fear or hatred of strangers or foreigners is known as a. nativism. b. xenophobia. c. ethnocentrism. d. racism. 6. The most important force causing people to emigrate has been a. war. b. political repression. c. economic. d. religion. 7. Beliefs and policies favoring native-born citizens over immigrants is called a. racism. b. ethnocentrism. c. nativism. d. absolute deprivation. 8. Border deaths along the United States-MexicoRead MoreAfrican Authors And The African Diaspora1455 Words   |  6 PagesHunger by Marechera has been used as a secondary reference. The paper presents the various reactions highlighted in the works, and then seeks to analyse and argue for possible reasons for the presented reactions, touches upon the theme of African nativism, and most importantly analyses colonial power structures that still dominate the discourse in and about Africa. The following paragraph presents some illustrations of the reactions towards the English African diaspora characterised by Aidoo’s workRead MoreArgumentative Essay On Prejudice And Prejudice804 Words   |  4 Pagesof what prejudice means, Judice translates to judge in Latin, therefore the term â€Å"prejudice† literally translates into â€Å"pre-judgment†. There are innumerable forms of negative preconceived notions that exist in our world today, the biggest one being racism, which often is a stem of having anti-immigration views. Immigration prejudice is not unknown to any person who lives in America and has eyes and ears to know it exists, but it’s important to know that prejudice is not innate, it is learned, and asRead More History of Latino/a Immigration to the U.S. Essay1475 Words   |  6 Pagesmyths provides a realization that it is important not to formulate polices based on preconceptions of racialized groups. Therefore, reforming immigration policies is a complex issue and must be handled properly without any racism or nativism. Creating policies based on racism or natives would only deny the equal access to opportunities for immigrants to achieve the American dream. Nativists are campaigning for tighter immigration restrictions because all of the Latino/as, particularly the MexicansRead MoreContemporary Issues Stemming From Racial Oppression787 Words   |  4 Pagesfeel adverse to diversity, and this has resulted in most of them feeling dislike for students that are different than them. 6. What racist practices was I taught in school? A. A major practice that was perpetrated within my school would be aversive racism; in which race was not discussed, and if it was would result in little or no changes to some of the racist practices. Oftentimes people within my community would look for ways to avoid talking directly about race; however would make ill-suited jokesRead MoreImmigration In The 19th Century Essay895 Words   |  4 Pagesmade up as much as 70 percent of all immigrants. This is a dramatic increase considering that in midcentury these immigrants only made up 1 percent of the immigrant population. This overhaul of new immigrants led to severe hostility, bias, and nativism. Nativism is the belief that native-born white Americans were superior to newcomers. Competition for jobs and housing had never been higher in the late 19th century. America was in an economic recession and most immigrants were willing to work for muchRead MoreRacism : African American Land And African Slave Trade900 Words   |  4 Pages Racism is a quandary that’s all too familiar in our modern society. It’s an issue that dates back thousands of years and is very much noticeable in American history. Since the domination of Native American land and African Slave Trade, we’ve come a long way, but racism still has a lingering presence and perhaps always will. The years between 1870 and 1900 began the age of segregation. The late 19th century in the US involved the increase of both nativism and racism. White supremacy lasted with traditions

The Causes Of Segregation - 1472 Words

One of the biggest problems in the world is segregation, which is something that not everyone talks about. There are programs, clubs, billboards, and propaganda that try to send a message to society about segregation. But are people really listening? To me segregation means to make certain groups, and divide them because of their differences. When I hear the word segregation, I automatically think of race, because that is societies bias makes people think. Many people think that each race has to follow their own culture, and I do not agree with that. There are thousands of different culture all around the world, with their own unique types of celebration. How would a human being not what to explore one in the world? Segregation is a real†¦show more content†¦The Government tried to separate people of 3 groups into suburban communities, white people, middle-class and the lower-middle class. The Government did not include African-Americans, and other colored people in the com munities, instead they were pushed into urban housing projects. I do not agree with this because there was been many laws that prevents and â€Å"eliminated† division of people. The FHA was in a project of mass-producing entire subdivision for whites, and the only requirements was to not sell any of the homes or any homes near the new houses to black people or else their loans would be in risk. In the New Deal, the Federal government made maps of color-coded. The map indicated where it was saf to insure mortgages and anywhere where African-Americans lived, which was colored red to indicate the neighborhoods that were too risky to insure mortgages. Some African-American families were able to buy the homes, but were prohibited to by the FHA. Now in day, the houses would cost as minimal as $300,000-$400,000. Later in the 1968, the FHA let’s African-American families buy homes in Daly City or Levittown, but no families would because the houses were no longer affordable . This was one of the biggest problems that caused Milwaukee to become so segregated. And when there is a cause, there comes an effect. Segregation effects not just one gender or one race, it affects all humans in many types of reasons. There areShow MoreRelatedIndirect Causes Of De Juure Segregation700 Words   |  3 Pages1. De jure segregation is segregation enforced by the law. De jure segregation has been banned in the United States since the 1950’s but that doesn’t eliminate segregation as a whole in the country. De facto segregation is, â€Å"the segregation of races by fact rather than by legal requirements†. This means that segregation can take place indirectly from lawful decision making. Examples of de jure segregation is through the drawing of district lines, the residential patterns and the parents’ â€Å"choice†Read MoreThe Impact Of Urban Population And The Current Causes Social Segregation944 Words   |  4 Pagesnegatively impact on the urban population and the current causes social segregation. Regarding the recent academic research in human geography field, can be possible to associate this social segregation with the ‘gentrification’. Thus, the gentrification can be defined as the dynamic process that displaces the local and low-income population of the district due to the urban revitalization of the area. Exploration of the social segregation in the Australian context (Melbourne and Sydney), might beRead MoreThe Civil Rights Act Of 19641689 Words   |  7 PagesThe Civil Rights Act of 1964 ended state and local laws that involved segregation, prohibiting legal discrimination based on ethnicity, color, race, sex, and religion. Now, after much time has passed, people can pose the question: how prominent is segregation in today’s society? In particular, Chicago, the third largest city in the United States, poses interesting dynamics concerning this question. For one, the city consistently has high crime and murder rates in specific areas, while other partsRead MoreThe Rhetorical Analysis Of Martin Luther King Jr.1139 Words   |  5 Pagespity, and Martin Luther King Jr. uses it to his advantage by pointing out many examples of the harsh treatment towards the black people. For example, he makes the statement, â€Å"Perhaps it is easy for those who have never felt the stinging darts of segregation to say, â€Å"Wait.† But when you have seen vicious mobs lynch your mothers and fathers at will and drown your sisters and brothers at whim; when you have seen the hate filled policemen curse, kick and even kill your black brothers and sisters; whenRead MoreEssay on Occupational Segregation994 Words   |  4 PagesOccupational Segregation Since the beginning of time, from all accounts, there has been some form of inequality between genders in society. This has become especially true in the workplace and for some people occupational segregation may be to blame. Occupational segregation is the grouping of similar jobs at similar workplaces. Not to be confused with job segregation which looks at specific jobs within specific workplaces, occupational segregation focuses on the occupation as a whole. An exampleRead MoreSegregation And Effects On African American Communities1523 Words   |  7 PagesAndrew Garcia Dr. Markel 23rd July 2015 Phil 483 Segregation and Effects on African-American Communities I suppose the majority of society would have the illusion that segregation in the United States died with the Civil Rights Act in 1964 and Brown v Board of Education of Topeka in 1954. What most fail to realize is the profound, and devastating effect segregation continues to have on minorities, particularly the African American communities. Throughout the relative young history of the UnitedRead MoreMilwaukee Of The Civil Rights Movement1287 Words   |  6 Pagesopportunities, poverty, and segregation.Racial segregation in Milwaukee and around the world has always been a phenomenon with intricate historical roots. The complex history of slavery, employment discrimination, tax inequity, redlining, discriminatory housing policies, and multiple other issue have lead Milwaukee to be segregated. Despite the fact that Milwaukee’s has a unique history, social forces and government policies created and reinforced residential segregation throughout the united states, so whyRead MoreRa cial Segregation Within The United States780 Words   |  4 Pagescontemporary debate regarding the distinctive patterns of poverty among African Americans revolves around the question, â€Å"is it class or race that causes (and perpetuates) such misfortune of African Americans?† Scholars have looked at patterns of residential segregation in their attempts to answer such a question. Massey and Denton explore racial residential segregation in the United States throughout the 20th century. They argue that the making and concentration of the (African American) underclass in innerRead MoreThe Letter From A Birmingham Jail865 Words   |  4 PagesBeverly Daniel Tatum, race relations are a main topic. While King writes about the effects and injustices of segregation, Beverly writes about the causes of self-segregation. These two works have a few things in common that is discussed, such as the inferiority complex that may stem from the segregation, racism and segregation cause mis trust and contempt, and racism is the cause for segregation. These three things are common between the two works, while King writes about the injustice’s taking placeRead MoreThe Civil Rights Movement in the 1950s Essay550 Words   |  3 Pagessituation: â€Å"just carve on my tombstone, Here lies a Black man killed fighting a yellow man for the protection of a white man. Some took up draft resistance in protest. The refusal to comply with segregation laws within the military was punished with custody. Returning to segregation at the end of the war caused the politicisation of many black Americans. The ensuing civil disobedience campaign, the non-violent resistance to the law, was one of the catalysts of the civil

Empirical Investigation of Structural Breaks †MyAssignmenthelp

Question: Disacuss about the Empirical Investigation of Structural Breaks. Answer: Introduction: IMF effectiveness is dependent on whether the players see it as impartial and competent. According to the article, IMF is like a referee officiating a football match where it depends if the players see it as impartial and competent (Eun and Resnick, 2014). The effectiveness of this institution are limited by failure to meet its challenges. As an advisor, the institutions impartiality is called into question because it doesnt always know what to advise. According to the article, there are four challenges that pose a threat to the legitimacy of the IMF and thus the institutions capacity to execute its main functions (Kirton, 2009). Organizing surveillance through which the institution monitors policies made by its member countries both financial and economic policies is the first unmet challenge. This highlights possible risks to advises that are needed on policy adjustments. The funds original mandate was to focus on engaging in ruthless truth telling that would make exchange rates to be stable. However, the surveillance moved from the main focus of exchange rates issues to virtually everything and anything with implications for financial and economic stability (Levi, 2016). There is no longer the blunt truth telling as envisaged and this can be clearly shown because the fund did not warn the U.S of the subprime crisis , the Greek debt crisis or the global financial crisis. On the three events, the IMF batted 0 to 3 showed that it has no capacity to highlight risks to stability. The second unmet challenge is the conditionality that IMF gives its loans out with. This is the commitment that governments makes in terms of policy in order to receive assistance (Imf., 2016). The disagreements comes in when questions of the number of commitments and what kind of commitments that the IMF asks from the governments. This is because in some of the commitments , the IMF infringes on the sovereignty of the member country and so according to the article, the member countries do not view the IMF institution as an institution that is out here trying to promote the welfare of the individual member states (Hartley, 2011). If the IMF and the member country have similar objectives , why are there conditions set in the first place. The third unmet challenge is that there is disagreement about the role of IMF in sovereign debt management. This challenge is created by the absence of a legal framework that is needed to resolve debt crises , also contributing to this challenge is the existence of multiple stakeholders and transaction costs that are significant. Confusion is brought about when we consider the form that involvement should take (O'brien, 2017). IMF should provide liquidity assistance when the debt that a member country holds is sustainable but private investors are not able to provide coordination in the provision of liquidity required and they only facilitate to debt restructure when the burden of debt is unsustainable. Deep questions arises when statements about whether debt sustainability concept is meaningful and whether the IMF is able to determine a member states sustainable debt. In reflecting on this uncertainties, the institution has continued to lend to its member states and put off the restructuring decision. This model allows investors to create a moral hazard and cut their losses. This is because restructuring disrupts the economy and is also costly for the country. The fourth unmet challenge according to the article is impartiality problem by the fund which is an issue raise due to governance problems (Grath, 2005). When members have disproportionate voice which enables some member states to sway decision making and make decisions that are in line with their national interest, this is seen as if the institution is not partial. Some of the decision made by some member states that have a lot of influence are at odds with both the interest of the stability of the IMF and its membership. Also, some members are inadequately represented and they see the decisions made by the funds as neglecting their interests. Consequently, the two sides are reluctant to give IMF the autonomy in choosing tactics and designing programs. The failure by the IMF to meet the four challenges causes its impartiality and competence to be questions by those who criticize its modus operandi (Bodie and Merton, 2001). The funds inability to solve these challenges leads members to question its legitimacy according to the article. Legitimacy determines if the governments and their constituencies will to bend to its authority and accept its recommendations. According to political theorists, legitimacy has two sources. The publics assessment about the performance of the Fund is referred to as output legitimacy. If the funds advice brings in good results, then the agents would be willing to acknowledge its authority. Second, input legitimacy refers to the process through which power is exercised and decisions are reached. The first three challenges , that is , surveillance, conditionality relevance and the utility of the funds approach to debt problems can be solved through output legitimacy (Costa, 2006). On the other hand, the fourth challenge which is the funds failure to adopt a system of governance raises questions about its input legitimacy. The legitimacy problem will have to be solved so that the fund can be effective in its mandate. Today, there are several theories that explain the formation of the exchange rate and the nature of its dynamics. So, one of the most famous theories is the theory of purchasing power parity (or ability) (Power Purchasing Parity). According to this doctrine, the rates of any two currencies must be adjusted one to one according to the change in the price levels in these two countries. A simple example gives an idea of the action of PPP theory and International Fishers effect Summing up, it can be pointed out that the currency purchasing power parity doctrine can be a good tool for forecasting the exchange rate provided there are significant differences in the price levels of the countries being compared (Shapiro, 2014). The accuracy of the exchange rate forecast is a derivative of the accuracy of the forecast of price levels in the two countries, and therefore the time range of applying the principles of PPP is measured from one to five years. The forecast rate for a period of less than one year is not justified for the inability to get rid of many random factors in the main trend of the development of the phenomenon. This is the presence of a lag between price changes and adjustments to this exchange rate, and intra-annual seasonal and conjunctural fluctuations. Forecasts for more than five years can have a significant error. The PPP theory has rather limited forecasting possibilities, gives an idea of the prerequisites for long-term behavior of exchange rates, but can not explain the run-up of rates for short periods. The key to understanding the behavior of the exchange rate in the short term is consideration currencies that form the exchange rate from the position of the asset market and the theory of demand for assets (Manzur, 2008). The modern approach to the asset market stresses that, for short periods (less than a year), the decision to own domestic or foreign assets (that is, cash in national or foreign currency) will play a much greater role in determining the exchange rate than the demand for export or import goods. Those. export-import flows are considered as secondary exchange rate factors. According to the theory of demand for assets, the most important factor that affects the demand for domestic (national) and foreign money (t his time we consider the non-cash form of cash) is the expected return on these assets relative to each other friend The expected income for the deposit of a certain currency in the transfer to foreign currency consists of the interest rate of this currency and its expected price (+) or depreciation (-). When, for example, Americans or foreigners expect that the income on dollar deposits will be higher than the income on deposits in euros, then the demand for dollar deposits will be higher and, accordingly, the lower one for deposits in euros This will encourage investors to convert funds into current assets. Nevertheless, at the end of the investment period, they may incur exchange rate losses e changes in the exchange rate, which, with a surplus, will block the interest income. To prevent such losses, investors must enter into fixed-term contracts, i. agreements with the redemption of currency, at the rate of "spot" plus the interest earned on the invested assets. These agreements from interest arbitrage is a connecting link between the difference in interest rates of the national money markets of the two countries and the forward rates of the respective currencies (Madura, 2012). This link acts as the basis of the theory of interest parity. To understand the mechanism of the action of this theory, one should consider its formalized form. Purchasing power parity is an economic theory that states that people in a given country should be able to buy services and goods at a price that is similar to people from another country. The theory states that once the exchange rate difference is accounted for, then all the prices of goods and services would be the same. The ability of purchasing power is illustrated by real per capita spending. The basis for calculating PPP used by organizations such as UNDP is Gross National Product (GNP) (Olekalns, 2001). Since GNP cannot be compared directly, an International Comparison Project (ICP) is formed which aims to "adjust" the real GDP rate, so it can be compared. For this purpose is determined a number of commodities as a package for the basis of comparison internationally. The resulting number, to reflect the standard benefits, is then "adjusted" again with the Atkinson formula. This adjustment is deemed necessary, as a $ 500 increase for a country that already has a GNP of US $ 500 0 will have a different benefit from the same increase for a new country with a GNI of US $ 1000. On the other hand, the international Fishers effect theory states that a change that is expected in the exchange rate between currencies of two currencies is roughly equivalent to the difference between their nominal interest rates(Holmes, 2002). Using the interest rate difference to explain the occurrence of changes in foreign exchange rates. IFE theory is closely related to theory of PPP because interest rates are often correlated closely with the rate of inflation, therefore it can be concluded that the difference in interest rates which occurs between several countries can be caused by the difference in the rate of inflation. On the theory of Interest Rate Parity and Power Parity Purchasing, the theory allows us to estimate the future of the exchange rate expected. Interest Rate Parity is related to risk-free interest rate while Purchasing Power Parity theory of exchange rate is related to an inflation rate. Putting them together basically tells us that interest rates are risk-free related to the rate of inflation (Valsamakis, Vivian and Du Toit, 2010). This brings us to the International Fisher Effect, The international Fisher effect states that the real interest rate is the same across countries. Real interest in risk-free rate minus the inflation rate. Real interest rates are generally used more often compared with the nominal interest rate to measure currency exchange rate movements. The nominal interest rate is not an accurate measuring tool, because it still contains inflation element inside. International Fisher Impacts Impact The relationship between the difference between the two countries' interest rates and the expected change in exchange rates under IFE is as follows: first, the actual return for investors is the interest rate offered on the securities market term deposit money banking short, where the investor's actual return depends on the foreign interest rate if and the change of the foreign exchange. According to IFE, the effective return of foreign investment should, on average, be an effective return on investment domestic, therefore, IFE states that estimates of investment in local money market investments: Where r is an effective return on foreign deposits and i is the deposit interest rate of the country of origin. Then it can determine as evidenced above, the IFE theory states that when interest if, e will be positive because of the relatively small foreign interest rate reflecting the relatively low estimated foreign inflation, in other words, foreign currency will appreciate when foreign interest rates are smaller compared to origin interest rate. A financial derivative is an agreement between two parties where the payments conditions are also agreed by the two parties. Derivatives are from underlying assets such as contracts, swaps or even stocks. Some of the conditions include purchasing the asset at the price and at the date which the underlying asset achieves that price(Valsamakis, Vivian and Du Toit, 2010).. A common derivative is a call option that gives the buyer the option but not the obligation to buy the stock at a certain date and at a certain price. The PPP and IFE theories make derivatives unnecessary because of the inflation factor. As we know, the two theories factor in inflation of underlying assets but derivatives are meant to protect the buyer from purchasing the underlying asset with inflation factored in. Advantages of derivatives Transactions of derivatives take place in future therefore giving a chance to individuals and traders to execute all sorts of strategies in the futures and options Therefore, if the individual want to short some stock for a long time they can do it in this market. There is benefit of leverage in this market because people can transact huge transactions with small amounts hence trading with derivatives requires a less amount of money. Derivatives are a great risk management tool with a lot of benefit to the user. There are several criticisms that associated with these theories. The purchasing power parity theory does not factor in the tarrifs and the demand for derivatives can be different. Also another criticism of this theory is the differing taxes in different regions. Evaluate the differing ways in which derivatives can protect against the failings of IFE and PPP. As speculators take a market risk position, speculation is a spare part that makes futures and options markets(derivative market) work well and efficiently w. A speculator in futures trading is one goal, which is profit (profit) from its success in anticipating price movements. The time horizon of the speculator is very different from the hedger, commercial users, and other professional users, therefore tends to act as a bridge between large market users and other market users, with different time horizons. So speculation is a major component because the speculator improves market liquidity, and also increases market efficiency. A speculator in futures trading is with one goal, which is to profit from its success in anticipating price movements. Inflation and interest rates challenges are overcome by these speculation. Hedging is a strategy created to reduce the occurrence of unexpected business risks which includes inflation, in addition to the possibility of profit from the investment. Differential interest rates Differential interest rates between the two countries predict future changes in spot exchange rates. In the financial risk hedge, there are factors that cause exchange rate changes (Manzur, 2008). Knowledge of this will help in forecasting the direction of currency movement. These factors include differential inflation, monetary policy, trade balance, the balance of payments, international monetary reserve, national budget, and deferential interest rate, and associated currency behavior, unofficial exchange rate, forward exchange quotes. Not all hedges are financial instruments. For example, a producer who exports to another country can hedge the currency exchange risk by calculating his production costs in the currency he wants (Taylor, 2013). 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