The Impacts Of Fiscal And Monetary Policy Economics Essay

The Impacts Of Fiscal And Monetary Policy Economics Essay In this paper we are going to analyze the impact of monetary and fiscal policy in the UK economy by initially using the IS-LM BP framework and later on Philips curve under flexible and fixed exchange rate regimes by supposing perfect capital mobility. The LM curve outlines the point at which there is an equilibrium condition of quantity of money demanded and quantity of money supplied (Dornbusch and Fisher 1994). As aggregate output rises, there is an increase for money demand and rise in the interest rates where the money demanded equals money supplied by resulting in the equilibrium. The IS curves shows out the point at which the total quantity of goods produced equals the total quantity of goods demanded (Dornbusch and Fisher 1994a). At any level of the interest rate, the IS curve shows us what aggregate output has to be for the goods market to be in equilibrium. By rising the interest rates, planned investment spending and net exports fall, which as a result lowers aggregate demand. In the first part of the literature review we will present how monetary and fiscal policy can be implemented under flexible exchange rate regimes, while in the second part there will be analysis of how monetary and fiscal policy can be implemented under flexible exchange rate regimes. The last part of this literature review we will explain the Philips curve under the above mentioned policies. Fiscal Policy under Flexible Exchange Rates In this section we will demonstrate the impact of fiscal policy in the UK economy by using IS-LM BP model. An expansionary fiscal policy will involve an increase in government spending or a decrease in taxes. At any interest rate, if there is an increase in government spending there will be an increase in aggregate demand. This leads to an increase in the demand for goods which is shown by the IS curve which moved to the right as shown in Figure 1. At point E1 at the new equilibrium, where the goods market is in equilibrium but money market is not, resulted in an increase in income, which naturally consequences in increase in demand for money leading to an increase in the interest rates at i2. While there is an increase in the foreign interest rate there is a capital inflow because of the fact that foreign investors seek to take over the advantage of higher returns by buying domestic assets. As the interest rate is increased above the foreign interest rate, capital inflows as foreign investors seek to take advantage of the higher return by buying domestic assets, Blinder B. (2006). The capital inflow because of the rise in interest rates pushes the interest rates back to initial equilibrium and because of the fact that investors buy pounds it increases the demand for pound in the foreign exchange market, which leads to the appreciation of the pound. By appreciating the pound, UK assets become more expensive in relation to foreign assets and as a result the net exports decreases. Any decrease in the net exports (NX), shifts the IS to the left until the capital inflow stops. Because the IS shifts to the left, the domestic interest rate will equal the foreign interest rates and will go back to the initial equilibrium Eo. This means that the fiscal policy under flexible exchange rate regime and perfect capital mobility has a little effect in increasing national output Oliver.B (2009). Monetary Policy under Flexible Exchange Rates By using IS-LM BP framework, we can also explain the effects of the monetary policy under flexible exchange rates regime as we explained in the fiscal policy. An increase in the money supply for any given interest rate it shifts the LM to the right and giving pressure on the domestic interest rate, Ahtiala P (1998). The shift of the LM curve to the right by increasing money supply is shown in the Figure 2. Because of the increase in money supply, there will be a fall in the interest rate which will lead to a capital outflow. An increase in the money supply also causes pound to depreciate in the domestic market. Because of the depreciation of the pound and fall in the interest rates in the UK market, the domestic assets become inexpensive in relation to foreign assets which results in an increase in the net exports (NX). An increase in the net exports also increases aggregate demand which shifts the IS curve to the right at the point E2 as it is shown in Figure 2. By shifting the IS curve to the right at point E2, there is an increase in the output as well from the initial equilibrium to the Y1. This shift to the right of the IS curve increases the output and the domestic interest rate then equals to the foreign interest rate. In this case, because of the increase in the natural output and the adjustment of the interest rates, it is very obvious that fiscal policy is more effective rath er than monetary policy under the flexible exchange rate regime, Dornbusch and Fisher (1994b). Fiscal Policy under Fixed Exchange Rates Under fixed exchange rate regime, an increase in government spending or a tax cut will shift the IS curve to the right from the initial equilibrium Eo to the point E1 as it is illustrated in the Figure 3. When the IS shifts to the right, more specifically at the point E1, interest rates increases and by doing so, there will be more capital inflow in the country from foreign investors. This is very much simple, since the higher the interest rates, the more the attractive domestic assets will be for international investors and as a result the higher will be the inflows of foreign capital in the domestic market Zapatero and Cadenillas (2000). The inflow of capital in the country and the increase demand for pounds leads to an appreciation of the pound. The shift of the IS from the initial position to ISà ¢Ã¢â€š ¬Ã¢â€ž ¢ creates a new equilibrium E2 where the output of the economy is higher. Thus, the use of fiscal policy under fixed exchange rate is more effective in creating higher dom estic output in an economy. Under the fixed exchange rate regime, if a Central Bank decides to increase money supply, the LM curve shifts to the right from the initial equilibrium E0 to the new equilibrium E1 as it is illustrated in the Figure 4. At the new equilibrium, the interest rate decreases, so there will be more outflow of the domestic capital to foreign markets. By the fact the there is an outflow of the domestic capital in the foreign markets, the demand for pounds will decrease which leads to a depreciation of the pound. According to Mishkin (2007), when the domestic currency is depreciated, the central bank must sell its international reserves and buy the domestic currency. It is obvious that by buying the domestic currency from the central bank, its supply decreases and there is a less money in circulation, which means that a money decrease shifts the LM curve to the left by bringing it to its initial equilibrium Eo. From the facts above and from the figure we can conclude that the monetary policy under fixed exchange rate regime is not effective in raising domestic output. This negative relationship between unemployment and inflation in the short run is explained by the Philips curve. In contrary, in the long run Philips curve is vertical line which is at the natural rate of unemployment. To explain the Philips curve, we must use the aggregate demand and aggregate supply in order to see the swap between inflation and unemployment, Nason and Smith (2008). If an expansionary fiscal or monetary policy is implemented, the aggregate demand will increase and it will move the economy to the higher output (in the short run), which will decline the unemployment. However, in the long run, because of the fact that aggregate demand increased and prices have increased, produces buy capital and pay workers at a higher price, which means that the IS will shift to the right, unemployment will start to rise again and the economy will end up at the initial output. In conclusion, it depends from the type of the economy in order to prove the effectiveness of the fiscal and monetary policy. Usually, in a open economy, if a country chooses to keep fixed exchange rate the fiscal policy is very effective tool for increasing the domestic output, however, monetary policy is not effective. On the other hand, if a country decides to keep flexible exchange rate regime the effectiveness of monetary or fiscal policy would be opposite to the fixed exchange rate regime.

Glory Days, When Horsepower and Passion Ruled Detroit :: essays research papers

Glory Days, When Horsepower and Passion Ruled Detroit   Ã‚  Ã‚  Ã‚  Ã‚  The book Glory Days, When Horsepower and Passion Ruled Detroit by Jim Wangers is a comprehensive look at Pontiac Motor Division in its heyday through the eyes of its chief advertiser. The rise and fall of the pop culture fad of muscle cars at Pontiac and its fall during the early 1970’s is explained in this book from a man who played a large part in Pontiac’s success. There are many candid stories and little known facts presented by the author to precisely let the reader understand the thoughts of Pontiac and how it accomplished its goal of selling overly fast cars to our nations youth. Glory Days, When Horsepower and Passion ruled Detroit is an interesting and enjoyable guide to Pontiac’s heyday through the author’s personal experiences and explanations about Pontiac muscle cars.   Ã‚  Ã‚  Ã‚  Ã‚  Many of Jim Wangers personal experiences were very fascinating and made the book very tough to put down. One of his most appealing experiences was when he personally became a Pontiac sponsored race driver. Wangers told the story of how he won the 1960 NHRA Championship and how he narrowly lost by only tenths of a second in the final race. He explained through vivid details on how he raced to sell the cars he was promoting through his advertising. He coined the phrase, â€Å"Win on Sunday, Sell on Monday†. Jim explains another tantalizing story about how he and John Delorean created the first muscle car.   Ã‚  Ã‚  Ã‚  Ã‚  John Delorean and Jim Wangers would frequently test Pontiac’s new cars out at Pontiac’s test track in upper Michigan. They both figured out the idea of putting this larger engine in this small Lemans. When this happened the muscle car era was born. This was the first account of a factory putting a large engine in a small car. Wangers then explained that he and Delorean had changed American pop culture forever with their muscle car. His account on how this was done and how America was changed with this simple idea was simply amazing. Wangers also pulls in readers with his history of the cars that Pontiac made.   Ã‚  Ã‚  Ã‚  Ã‚  The most influential car Pontiac made was the GTO. He told the tale of how this mid-size car changed the auto industry and shaped a whole generation of children in the 1960’s. The tale on how this was accomplished by Wangers was told with clever side stories about promotional contests and cunning advertising the enraged the U.

Great Depression Themes in 42nd Street :: essays research papers

Great Depression Themes in 42nd Street   Ã‚  Ã‚  Ã‚  Ã‚  Seen through a particular light and given specific occasions in the film, we can see how 42nd Street echoes the general attitudes of the Great Depression. Particular characters in the film exemplify the wealthy citizens of the time, the common laborer, and Julian Marsh (Warner Baxter) portrays a life-force, Franklin Roosevelt, bringing hope along with his New Deal.  Ã‚  Ã‚  Ã‚  Ã‚  Throughout the film, there is a dichotomy exhibited through the members of the production and the financiers, namely Abner Dillon. He represents the side of competitive capitalism, while the actors stand for a community. The actors identify with each other because they are all in the same situation and each need the job to survive. Abner, on the other hand, has the money to throw around whimsically, for the difficulties facing the nation do not have the devastating effect on the wealthy that they have on other classes. Hard times have fallen on the nation and they realize that it will take a group effort to pull themselves out of the Depression. While the competition is cut-throat and individualized off of the set, as we see with Dorothy Brach’s arrangement with Abner Dillon, the sense of collectivity is emphasized on stage.   Ã‚  Ã‚  Ã‚  Ã‚  Leading the march against the depression and maintaining the collective voice, is Julian Marsh. He can be equated with Franklin Roosevelt his work ethic can be seen as a reflection of the New Deal. As Roosevelt gave hope, optimism, and unity to the nation; Marsh gives the same to the cast members of 42nd Street. Marsh fights for the actors because he is in the same situation as them, not exclusive of it like Abner. He is in poor health, and yet, he takes responsibility on; seemingly, he cannot afford to pass up the job. He realizes that it is going to take a lot of hard work to make the show a success (end the depression) so he works the actors night, day, and in-between. Marsh may seem like a slave driver, but this is because he knows that it is going to take an immense amount of work for the show to go on. A key scene in the film is when Abner is going to pull out of the production, but Julian pleads for him not to. Obviously, we see that Julian is looking out for the interests of the hundreds of workers who need the show, while Abner is merely concerned with his own selfish desires.

Competition Level Between Shanghai Port and Busan Port

Shanghai Port Is located In the front edge of the Yawning River Delta and It becomes the first busiest container port In the world whereas Bushman Port which Is located In the southern part of the Korean peninsula ranked the fifth. Both ports handle approximately 90% of the total container throughput, and they are also the major hubs of the seaborne transportation in the world (World Port Source AAA, World Port Source Bibb).This essay will discuss the level of competition between Bushman Port and Shanghai Port, and identify the external factors that should be considered by both ports' management in developing their strategic development plans. Level of competition The late growth of China on a global scale in recent years has affected on both Bushman Port and Shanghai Port In several levels of competition. There are three key competitions between them which are geographical positioning, transshipment capableness and low comparative costs.In terms of geographical positioning, Bushman Port has become an appropriate choice due to Its location between Japan and China. It has mm water depth and planning to Increase up to mm In 2020, and Its world class infrastructure allows the calling of mega large vessels. Furthermore, Bushman Port has 41 container berths and systematic connections for global logistics corporations to help save costs and time, so it can act as a feeder hub aiming for small ports for a majority of North-East Asian transshipment carriers.For example, inland transport in Northern China will be expensive and inconvenient, thus exporters or importers choose to transport their shipments to Bushman Port first then Shanghai Port (BAA 013). On the other hand, China created Shanghai as a finance shipping hub because Shanghai Is a port city. It became an international maritime capital because It focused on economic Instead of political logic (BAA 2013). Similarly, both Shanghai Port and Bushman Port are part of the mall trunk line functioning as hub port for relative countries, but Shanghai Port has the ambition to challenge Bushman Port as the main hub port of Northeast Asia.This Is because the growth of container volume In China ports has been fuelled by the decision of many multinational companies to locate production of a whole range of consumer goods from their domestic plants, mainly in USA and Europe, to China where production costs are much cheaper (Park, Anderson & Choc 2006). However, the inconsistent weather of China has benefited South Korea. For instance, ports in China are forced to close for up to two weeks of each calendar year due to fog and stormy weather.Moreover, Shanghai Port could not compete with Bushman Port deep water harbor, causing It failed to attract mega huge vessels from big corporation to call (Shepherd 2011). Regarding to reinstatement capabilities, Shepherd (2011) stated that the newly extended feeder network of Bushman Port connects with over sixty others ports In China, five In Russia, and thirty In Japan, making Its as the chosen destination for huge vessels and to transshipment cargo. Conversely, the development of Hangs New Port which is traffic and establishing transshipment capabilities comparing to its old Wigwagging container terminal.Moreover, Shanghai Port is improving its customs clearance procedure and cargo handling system to attract more transshipment cargo (McKinney 2011). Consequently, both ports have similar transshipment capabilities which are also the main competitiveness between them. Towards low comparative costs, in order to attract more transshipment cargo, Bushman Port promoted ‘Free Trade Zone', reducing port tariffs, and exempting 100% of Transshipment Entrance Fee since 2003 as the marketing strategies to attract foreign investment and compete with Shanghai Port (Park, Anderson and Choc 2006). For example, the exemption of the $2. 0 for 1 TEE entrance fee could reduce the $2,200 fee for a vessel carrying 1,000 TIES, and it also provides exclusive berths for coastal shipping companies and offers volume incentives to secure more cargo volumes (BAA 2013). On the other hand, Shanghai Port utilized a Volume Incentive System for shipping companies when the transportation volume is increased by more than 20% compared with the previous year. In addition, the Shanghai Port has also been trying to improve competitiveness by discounting port tariff in the Hangs New Port, and plan to establish logistics Free Trade Zone in the hinterland (Park, Anderson and Choc 2006).External factors in developing strategic plans There are several external factors that should be considered by Bushman Port and Shanghai Port in developing their strategies development plans. The first factor is the government involvement. According to Lee, Lee, Gang & Lee (201 1), port management had changed rapidly in recent years due to the structural changes in international trade and sea transport, so government plays an important role to cope with the changes of envi ronment.The establishment of co-petition and global network between competitors will generate positive impact on efficiency and access of the port management strategies with the special government support (Shepherd 2011). In addition, government can encourage shipping companies to form alliances where they can connect their transport system hence improving services. Moreover, the supplementary government supports with positive impact on efficiency, credibility, and competitiveness of the port management strategies could lead Bushman Port to have greater impact function as a Northeast Sais's hub-Port (McKinney 2011).Additionally, the advancement of government policies are followed by the changes made in the environment of port management. How government involves in port management will impact on the port's future developing of plans. In Shanghai, the central government had not implicated in the ownership of ports, but had got involved in an oversight role for strategic planning. For example, local authority had rights to undertake the ports planning, but still all plans had to be approved by central government (Xx 2007). This cooperation between government and port management will lead to improvement of international trade.Furthermore, comply with the Port Laws, it can encourage foreign investment as to build an attractive business environment in Shanghai Port, presenting Shanghai Port as an International Shipping Centre (SC) (McKinney 2011). Secondly, the growth of ports in the world had been affected due to the global economic downturn in 2012. Negative economic growth will not only put current projects at risks, but also the future project. This will the government to have less revenues and resources (Waters 2012). Therefore, the government should step in and take control of the situation.Government needs to prepare the country to become a low cost and high productivity place to invest which then attracts foreign investments, helping the country to generate profits. For example, government could implement strategies, such as education and direct investment (FED) to promote the local economy for future development of ports (Port Technology 2013). The investment in human capital or education can produce workers with better knowledge, and the productivity will increase when workers have more capabilities.Moreover, governments can send port employees to countries like Singapore and Hong Kong to familiarize with their operating system as they are the world most efficient ports. This will improve the port technology and productivity whilst workers return. Furthermore, economic growth can be achieved with the redevelopment of Bushman North Port and the nearer completion of Bushman New Port had as it will create whereas Shanghai Port can also benefited from the increase of national strength in China (Xx 2007). Another factor is the inland transport system.A well developed port should also include efficient inland transport. This is because mul tinational shipping company will normally choose port with speedy and productivity connection between the port and inland transportation to faster deliver cargoes to their customers (ROR, Lanai & Maim 2007). Therefore, both South Korea and China government should increase attention and funding towards the improvement of inland transport system within the port, such as railway network which connect to major cities in the countries.Moreover, the investments in rail and road access could help Bushman Port and Shanghai Port to remain as the major container hubs in the world, and create a swift, simple and cheap choice of transportation to transfer cargo within the countries as well as produce more Jobs for the locals (Shepherd 2011). In addition, governments could also focus on congestion robber especially in the city to allow trucks to transport goods more rapidly. For example, encouraging trucks to operate in certain hours and taking a detour road can help to save time and cost (Lee 2 013).As a result, good connection of inland transport could help Bushman Port and Shanghai Port reduces the problem of congestion, and also allows cargoes could smoothly move through the port. Apart from the previous mentioned factors, environmental pollution is another key external factor that Bushman Port and Shanghai Port have to consider in developing their strategic development Lana. There are several causes of the port environmental pollution. For instance, diesel engines at ports, trucks, trains, and cargo handling equipment, creating a lot of air pollution that has affected the health of port workers, and residents living in the communities.In addition, major ports especially Shanghai operating around residential areas or city, causing both workers and residents to face extraordinarily high health risks which related to air pollution. According from the human epidemiological and California studies, diesel exhaust increases risks of cancer, and approximately 70% of the cancer risk is caused by air pollution (NRC 2004). Furthermore, the dredging berth and deepening access channels of Shanghai Port and Bushman Port in order to accommodate large vessels in the future are causing water pollution.It not only damages the water quality, marine life and ecosystems, traffic Jams, and could be loud, ugly and brightly lit at night. These effects also pose negative health effects to human. For instance, noise pollution has been linked to hearing impairment, high blood pressure, lack of sleep, performance reduction, and even aggression behavior. Bright lights at night and the flashing lights of straddle carries and forklifts could influence surrounding residents, leading stress and irritation (NRC 2004).Consequently, Bushman Port and Shanghai Port have to do their best to avoid, to prevent, to control, and to measure the environmental pollution which caused by several port operations, with the ultimate aim to become a green port. Conclusion In conclusion, Bushman Po rt and Shanghai Port have their own respective advantages to compete with each other in several aspects in order to gain competitive advantages in the marine industry. However, there are several external factors that Bushman Port and Shanghai Port have to take into consideration while developing their strategic development plans in order to avoid the disadvantages to them.

Courage

Courage is not a lack of fear; it is doing something in spite of fear. This type of courage is exemplified in the book The Kite Runner by Khaled Hosseini when Amir Jan, the main character, risks his life for another. Amir truly reflects the qualities of a courageous person. One way Amir confronts his fears and acts courageously is when he puts his own life in danger to save the life of a child. He willingly disguises himself with a beard and travels to Afghanistan to free his best friend’s son from captivity.He knows upfront that if he is caught in a disguise, he will probably be executed, but he goes anyway. He stands up to the Taliban believing in his heart that it is the right thing to do. Another way Amir Jan shows bravery is when he starts arguing and making demands for the child’s release. He does this knowing that confrontation is not tolerated in Afghanistan. Making any type of demand almost always means death, but Amir refuses to back down. He perseveres knowin g he will probably lose his life.Some may not agree that Amir is really a hero because he spent most of his childhood hiding behind the courage of others. Although this is true, it has no bearing on whom he is as an adult. Most people would agree that a person should not be judged solely by his past failures, but rather on the strength of his developed character. Amir truly is a man of honorable character. He shows first hand how people can change when he stands up for what is right. Mankind needs to look at the good deeds that come out of past failures.Amir certainly has changed, and his actions reflect this change. He overcomes the fears and failures that haunt his past, and becomes a person of great courage, one who is truly respected because he is willing to do what others would not do. Thus, in the end Amir Jan shows who he really is. He is a brave, heroic character. He risks his life for the love of another human being, and he brings freedom to an innocent child. What a remark able feat! Thank God for the courage of Amir Jan!

Human Competition According Adam Smith and Karl Marx

â€Å"Human competition† according to â€Å"Adam Smith† is brought about by â€Å"selfish interests† (Ebenstein & Ebenstein, 2000, pp. 494 – 495).â€Å"Adam Smith† made this extremely clear when he said that â€Å"the free decentralized action of economic agents in a system of competition and private property brings advantages for each of them†¦each one moved by his selfish interest† (Ebenstein & Ebenstein, 2000, pp. 494 – 495). Interestingly, this is an unconscious thought of an individual according to â€Å"Adam Smith† (Ebenstein & Ebenstein, 2000, pp. 494 – 495).Causes of Human Competition According to Adam Smith â€Å"Adam Smith† said that competition was actually brought about by individual’s pursuit of a better life (Ebenstein & Ebenstein, 2000, pp. 494 – 495). People constantly find ways to reach their objectives not only to satisfy their own selfish interests but to enhance ones personal condition as well (Ebenstein & Ebenstein, 2000, pp. 494 – 495).Consequences of Human Competition According to Adam Smith What’s good about the unconscious desire of man to achieve self-interest is that, eventually, he or she will not only achieve a better life but that of others in the society as well (Ebenstein & Ebenstein, 2000, pp. 494 – 495).Human Competition According to Karl Marx â€Å"Human competition† according to â€Å"Karl Marx† is determined by his or her material conditions (Marx’s Theory of Human Nature: Alienation, n.d., n.p.). â€Å"Karl Marx† stated that â€Å"human competition† is highly related to the satisfaction of simple economic needs (Marx’s Theory of Human Nature: Alienation, n.d., n.p.).Causes of Human Competition According to Karl Marx Meanwhile, the following are some of the causes of â€Å"human competition† according to â€Å"Karl Marx†:First of all, â€Å"human competition† according to â€Å"Karl Marx† sprouted from â€Å"man’s existence† (Marx’s Theory of Human Nature: Alienation, n.d., n.p.). It means that the existence of man requires satisfaction of human economic needs and so the aforementioned cause â€Å"human competition† (Marx’s Theory of Human Nature: Alienation, n.d., n.p.).Furthermore, the historical act technically referred to as â€Å"the act of producing the means to satisfy human economic needs† also brought about â€Å"human competition† (Marx’s Theory of Human Nature: Alienation, n.d., n.p.).Last but not least, survival is another cause of â€Å"human competition† (Marx’s Theory of Human Nature: Alienation, n.d., n.p.). â€Å"Karl Marx† explained that since man â€Å"enters into a conscio us relation with nature for survival†, then he or she obliges himself or herself to â€Å"produce his or her means of subsistence† which eventually leads to human competition (Marx’s Theory of Human Nature: Alienation, n.d., n.p.).Consequences of Human Competition According to Karl Marx The following are some of the consequences of â€Å"human competition†:First of all is that it leads to the â€Å"division of society into economic classes† (Marx’s Theory of Human Nature: Alienation, n.d., n.p.). For instance, in the â€Å"means of production†, â€Å"human competition† already exists because there are two types that exist, namely: â€Å"1) owners or the capitalists; and 2) non-owners of the means of production or the workers† (Marx’s Theory of Human Nature: Alienation, n.d., n.p.).These two types compete for ownership with regards to anything that may be utilized to â€Å"produce material needs and maintain existence† (Marx’s Theory of Human Nature: Alienation, n.d., n.p.).In addition to that, since â€Å"human competition† is highly related to the â€Å"mode of production†, it has also led to the â€Å"determination of the totality of the social superstructure† (Marx’s Theory of Human Nature: Alienation, n.d., n.p.). Simply put, â€Å"human competition† then also determines the composition of the State as well as political institutions (Marx’s Theory of Human Nature: Alienation, n.d., n.p.).

Organizational Structure Research Paper Example | Topics and Well Written Essays - 1500 words

Organizational Structure - Research Paper Example As the discussion stresses Position Analysis and Questionnaire (PAQ) is considered to be a sophisticated and straightforwardly applied technique in the process of job analysis. It entails a standard form, which requires approximately two hours to be filled; in fact, it is easily scored due to its applicability to a broad variety of jobs. One of the PAQ’s significance involves its contribution to job analysis process, whereby it enables analysis based on 187 job elements. In this case, these elements involve worker-oriented nature, whereby they are characterized to imply human behaviors, which are involved in various jobs.         Ã‚  From this essay it is clear that  Position Analysis Questionnaire (PAQ) is designed in a way that gathers detailed information regarding duties and responsibilities of the position that exists in the organization; this aspect can be utilized for redesigning customer service job to increase efficiency and improve quality, since HRM have can set standards for desired capacity of applicants based on information gathered through PAQ. On the other hand, this information facilitates establishment or revising of position description in order to facilitate redesigning process of customer service job. In addition, information gathered through PAQ facilitates evaluation of position for relevant classification to ensure that human resource managers have a consistent approach in the redesigning process.  ... Therefore, elements of job analysis facilitate setting of foundation for training needs and the process of learning (Heron, 2005). 2. Importance of Position Analysis and Questionnaire (PAQ) and two ways it can be used for redesign customer service job to increase efficiency and improve quality. Position Analysis and Questionnaire (PAQ) is considered to be a sophisticated and straightforwardly applied technique in the process of job analysis. It entails a standard form, which requires approximately two hours to be filled; in fact, it is easily scored due to its applicability to a broad variety of jobs. One of the PAQ’s significance involves its contribution to job analysis process, whereby it enables analysis based on 187 job elements (Brannick & Levine, 2002). In this case, these elements involve worker-oriented nature, whereby they are characterized to imply human behaviors, which are involved in various jobs. Firstly, Position Analysis Questionnaire (PAQ) is designed in a wa y that gathers detailed information regarding duties and responsibilities of the position that exists in the organization; this aspect can be utilized for redesigning customer service job to increase efficiency and improve quality, since HRM have can set standards for desired capacity of applicants based on information gathered through PAQ. On the other hand, this information facilitates establishment or revising of position description in order to facilitate redesigning process of customer service job. In addition, information gathered through PAQ facilitates evaluation of position for relevant classification to ensure that human resource managers have a consistent approach in the redesigning process.