The purpose of this assignment is to analyse whether the Covered Interest Rate Parity (CIRP) holds in the relationship between two actual currencies. I decided to focus on the euro and the dollar because it is the financial instrument the most active and the most used in the world. Since the euro has been introduce in 1999 its value has fluctuated vis a vis the dollar. At the beginning it has lost some of its value, then it appreciated and now its value is widely above the one in 1999. €uro has reached its peak vis a vis the dollar in November 2007 at USD $1.45/1€. Ups and downs of the exchange rate have coincided with variations of the interest rates between investments in the Euro zone and in the US. CIRP links these two variables and when it holds, investments made in two different countries should have the same value at the end of the period.
[...] Mobility within the firm was one of the main priority for Million, who was also in favour of promoting young executives and reluctant to redundancies. The promoting and recruiting are mainly based on discussions with the appliers. He has to meet the Human Resource Manager twice, and also a specialist. Moreover, Million use to observe a lot the employees at work, in order to make his idea on their potential and capacities. He strongly believes in the adaptability of workers in the banking sector, and that is why he bet on the firm's existing potential. [...]
[...] Changes in employment practices (use of subcontractors or agency staffs, hiving-off tasks, buying in, substitution, etc.) Variations, which respond to new legislation, for example payroll taxes or their abolition, new health and safety requirements Changes in Government policies (investment incentives, regional or trade grants, etc.) What should emerge from this “virtuous circle” is a solid reflexion and logical staffing demand schedule for varying dates in the future which can then be compared with the compulsory supply schedules. The comparisons will then indicate what steps must be taken to achieve the manpower balance. [...]
[...] But those who stayed proved their performance and made the current success of the firm. A strong team was actually built around solid potentials, and dialogue as well as regular competencies checking were put forward. Yet one drawback of the change has to be highlighted. The relatively closed aspect of the banking sector is indeed quite visible here. Crédit du Nord didn't question whether it needed other competencies. It has only redistributed the manpower, selected the most performant workers, but did not really ask the sector if other jobs had to be designed. [...]
[...] Problems and the solutions brought In 1997, when the two firms Société Générale and the Crédit du Nord came to merge, the personnel manager had to face a great reshuffling of the workforce from both sides. Indeed, a huge social plan was designed, and about thousands of persons were fired. Once seen the importance of planning the manpower in a society, it is then obvious that the decisions made in that field had to be well though out, in order to meet the growth objectives expected by the operation. [...]
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