European Union Crisis

The main aim of EU was to establish economic Integration but due to some reasons it had led Global Economic Crisis. Eurozone Debt crisis has resulted from a combination of complex factor.The reason for Euro zone crisis are discussed as follows:

1: Rising government debt levels

Government debt of Eurozone, Germany and crisis countries compared to Eurozone GDP Government deficit of Eurozone compared to USA and UK In 1992, members of the European Union signed the Maastricht Treaty, under which they pledged to limit their deficit spending and debt levels. However, a number of EU member states, including Greece and Italy, were able to circumvent these rules and mask their deficit and debt levels through the use of complex currency and credit derivatives structures.

2: Monetary policy inflexibility

Since membership of the eurozone establishesable to "print money" in order to pay creditors and ease their risk of default. (Such an option is not available to a state such as France.) By "printing money" a country's currency is devalued relative to its (euro zone) trading partners, making its exports cheaper, in principle leading to an improving balance of trade, increased GDP and higher tax revenues in nominal terms.

3: Trade imbalances

 During 1999-2007, the  countries (Portugal, Ireland, Italy and Spain) had far worse balance of payment positions. Whereas German trade surpluses increased as a percentage of GDP after 1999, the deficits of Italy, France and Spain all worsened. More recently, Greece's trading position has improved in the period November 2010 to October 2011 imports dropped 12% while exports grew 15% (40% to non-EU countries in comparison to October 2010).

4: Loss of confidence

Prior to development of the crisis it was assumed by both regulators and banks that sovereign debt from the eurozone was safe. Banks had substantial holdings of bonds from weaker economies such as Greece which offered a small premium and seemingly were equally sound. As the crisis developed it became obvious that Greek, and possibly other countries, bonds offered substantially more risk. 

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• Objective and Function of European Union

Objective and Function of European Union

    Objective of European Union

     1:Elimination of custom duties among member states.

    2:Elimination of obstacles to the free flow of import and export of goods and    

         services among member nations

     3:Free movement of capital and people within the block.

    4:Acceptance of common agricultural policies , transport policies,    

         health and safety regulations  and educational degrees.

     5:Common measures for consumer protection.

    6:Common laws to maintain competition throughout  the  community and       to fight monopolies or illegal cartels.

    7:Regional funds to encourage the economic development of      

  certain countries.

   8:Greater monetary and fiscal co-ordination among member states    and certain common monetary and fiscal policies. 

Function of European Union:

      

 1: Internal Market:     

 Two of the original core objectives of the European Economic Community were the development of a common market, subsequently renamed the single market, and a customs union between its member states. The single market involves the free circulation of goods, capital, people and services within the EU,^[ and the customs union involves the application of a common external tariff on all goods entering the market. Once goods have been admitted into the market they cannot be subjected to customs duties, discriminatory taxes or import quotas, as they travel internally.

     

 2: Competition:

The EU operates a competition policy intended to ensure undistorted competition within the single market. The Commission as the competition regulator for the single market is responsible for antitrust issues, approving mergers, breaking up cartels, working for economic liberalisation and preventing state aid.

   

 3:Monetary union:

The euro is designed to help build a single market by, for example: easing travel of citizens and goods, eliminating exchange rate problems, providing price transparency, creating a single financial market, price stability and low interest rates, and providing a currency used internationally and protected against shocks by the large amount of internal trade within the euro zone. Since its launch the euro has become the second reserve currency in the world with a quarter of foreign exchanges reserves being in euro. The euro, and the monetary policies of those who have adopted it in agreement with the EU, are under the control of the European Central Bank (ECB).

      

4:Financial supervision:

The European System of Financial Supervisors is an institutional architecture of the EU's framework of financial supervision composed by three authorities: the European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority. The aim of this financial control system is to ensure the economic stability of the EU.

     

5:Energy:

 The EU has had legislative power in the area of energy policy for most of its existence; this has its roots in the original European Coal and Steel Community. The EU has some key points in its energy policy: increase competition in the internal market, encourage investment and boost interconnections between electricity grids; diversify energy resources with better systems to respond to a crisis; use existing energy supplies more efficiently while increasing use of renewable energy; and finally increase funding for new energy technologies.

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European Union

European Union is a umbrella organisation including the European countries that have European eliminated economic, trade and immigration between the member countries of the union. The European union is a unique economic and political partnership between 27 European countries.

 

History of European Union:

European union was created after math of the second world war. The treaty of paris, creating the European coal and steel community in 1951 with six member: Belgium, France, Italy, Luxumberg, Netherland and West Germany.

In 1957 the same six countries sign the treaties of rome, creating the European economic community and European atomic energy community.

On 1 November 1993, under the third Delors Commission, the Maastricht Treaty became effective, creating the European Union with its pillar system including foreign and home affairs alongside the European Community.

1995:  Austria, Finland and Sweden join the European Union (EU).

1999: Europe’s single currency – the euro  – is officially launched and 11 EU Member States adopt it as their official currency, forming what is known as the euro zone.

2001: Greece joins the euro zone.The Treaty of Nice is signed, introducing reforms to the EU’s institutions to prepare for the expansion of the Union with the admission of ten new Member States in 2004.

2002: The euro becomes a reality on 1 January, when euro notes and coins replace national currencies in 12 of the 15 countries which are members of the EU: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. A ‘convention on the future of Europe’ is launched, with 105 members representing national governments and parliaments in the Member States and countries waiting to join the EU, the European Commission and the European Parliament.

Currency:

The euro is also the most widely used currency in the EU, which is in use in 17 member states known as the Eurozone. All other member states, apart from Denmark and the United Kingdom, which have special opt-outs, have committed to changing over to the euro once they have fulfilled the requirements needed to do so.

European Union Headquater:

European union headquater is in Brussels, Belgium .

It Selected as the headquarters of the European Union  because of its centralized location in Europe.


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• Objective and Function of European Union
• European Union Crisis

What is Business

Human beings are continuously engaged in some activity or other in order to satisfy their unlimited wants. Every day we come across the word 'business' or 'businessman' directly or indirectly. Business has become essential part of modern world.

Business is an economic activity, which is related with continuous and regular production and distribution of goods and services for satisfying human wants.

All of us need food, clothing and shelter. We also have many other household requirements to be satisfied in our daily lives. We met these requirements from the shopkeeper. The shopkeeper gets from wholesaler. The wholesaler gets from manufacturers. The shopkeeper, the wholesaler, the manufacturer are doing business and therefore they are called as Businessman.

Definitions of Business:

Stephenson defines business as, "The regular production or purchase and sale of goods undertaken with an objective of earning profit and acquiring wealth through the satisfaction of human wants."

According to Dicksee, "Business refers to a form of activity conducted with an objective of earning profits for the benefit of those on whose behalf the activity is conducted."

Lewis Henry defines business as, "Human activity directed towards producing or acquiring wealth through buying and selling of goods."

Thus, the term business means continuous production and distribution of goods and services with the aim of earning profits under uncertain market conditions.

Features of Business:

Characteristics or features of business are discussed in following points :-

1. Exchange of goods and services

All business activities are directly or indirectly concerned with the exchange of goods or services for money or money's worth.

2. Deals in numerous transactions

In business, the exchange of goods and services is a regular feature. A businessman regularly deals in a number of transactions and not just one or two transactions.

3. Profit is the main Objective

The business is carried on with the intention of earning a profit. The profit is a reward for the services of a businessman.

4. Business skills for economic success

Anyone cannot run a business. To be a good businessman, one needs to have good business qualities and skills. A businessman needs experience and skill to run a business.

5. Risks and Uncertainties

Business is subject to risks and uncertainties. Some risks, such as risks of loss due to fire and theft can be insured. There are also uncertainties, such as loss due to change in demand or fall in price cannot be insured and must be borne by the businessman.

6. Buyer and Seller

Every business transaction has minimum two parties that is a buyer and a seller. Business is nothing but a contract or an agreement between buyer and seller.

7. Connected with production

Business activity may be connected with production of goods or services. In this case, it is called as industrial activity. The industry may be primary or secondary.

8. Marketing and Distribution of goods

Business activity may be concerned with marketing or distribution of goods in which case it is called as commercial activity.

9. Deals in goods and services

In business there has to be dealings in goods and service.

Goods may be divided into following two categories :-

  1.Consumer goods : Goods which are used by final consumer for consumption are called consumer goods e.g. T.V., Soaps, etc.

  2.Producer goods : Goods used by producer for further production are called producers goods e.g. Machinery, equipments, etc. Services are intangible but can be exchanged for value like providing transport, warehousing and insurance services, etc.

10. To Satisfy human wants

The businessman also desires to satisfy human wants through conduct of business. By producing and supplying various commodities, businessmen try to promote consumer's satisfaction.

11. Social obligations

Modern business is service oriented. Modern businessmen are conscious of their social responsibility. Today's business is service-oriented rather than profit-oriented.

Lucknow University MBA

DEPARTMENT OF BUSINESS ADMINISTRATION
The Department of Business Administration is a pioneer in the field of Management Education. Established in 1956, as a full-fledged department under the Faculty of Commerce, the Department has the proud distinction of having its faculty trained at the Center for Advancement of Management Education, Stanford University, California  (USA). The faculty of the department has a combination of academic, research, business and international teaching experience.




INSTITUTE OF MANAGEMENT SCIENCES
The Institute of Management Sciences, University of Lucknow is a pioneering Institute in the field of modern management education. It was established in 2001 as an umbrella institute for self - financing management programs approved by AICTE/UGC /University of Lucknow. The Institute is located in the second campus of the University .The continuing endeavor of IMS is to evolve itself as an Institute that can provide skilled professionals to various sectors of the economy.

About Lucknow University

The University of Lucknow is a university in the city of Lucknow, Uttar Pradesh, India. It is affiliated to University Grants Commission;Association of Commonwealth Universities (ACU); Association of Indian Universities (AIU); Distance Education Council (DEC). Other accreditations include National Assessment and Accreditation Council (NAAC); National Council of Teacher Education (NCTE); Bar Council of India (BCI). It was affiliated to UGC in the year 1921. Most of the courses have an 'Yearly' system, although some of the new courses, likeBBA (Bachelor in Business Administration) and MBA have opted for a Semester system.


History

The University of Lucknow grew out of the prestigious Canning College, Lucknow,founded in 1867 by Raja Dakshinaranjan Mukherjee and also grew out of King George's Medical College and Isabella Thoburn College.

Lucknow University was set up as a result of the far-reaching recommendations of the Sadler Commission which had been set up in 1917 to just investigate the "“conditions and prospects of the University of Calcutta".

The Honorable Raja Sir Muhammad Ali Mohammad Khan of Mahmudabad made a strong plea in the Pioneer for the creation of a separate University at Lucknow which was reinforced by all the Taluqdars of Awadh. Sir Harcourt Butler, the then Lt. Governor of United Provinces gave active support to the idea.

Lucknow University was established in law by the Governor General on November 25, 1920. Sir Harcourt Butler laid the foundation stone of the University on March 19, 1921, and Dr. Gyanendra Nath Chakravarti became its first vice-chancellor. On July 17, 1921 classes commenced.