011

CAUSES OF THE FINANCIAL PROBLEMS THAT BESET MY AGE GROUP

Do you agree with me if I say that everybody in this world has financial problems? I absolutely think everybody will agree with me as all people from teenagers until old ones are facing this problem. I am a teenager and I think being a teenager is so fun and there is no doubt about it. Plus, this would be more fun if the youth had more money, thus no more financial crisis among the teenagers. However, this is quite difficult to get money as teenagers do not have steady jobs. So unless one has a rich generous family or relative, money is not easy to come by. Now, there are many causes of the financial problem that beset my aged group.

First and foremost, teenagers usually need money for education purposes. This is the main needs for teenagers as a student. They need to buy stationeries and books and nowadays, all academic books are quite expensive especially books for college or university students. For example, if they want to buy a dictionary it already cost at forty five ringgit and above. It is already expensive for students especially for those who come from poor family. Some students cannot afford to buy all that books. They are not allowed to be in debt first. So, sometimes they have to borrow the money first from someone.

Next, the second cause is teenagers do not know how to manage their finance well. It is very important for them to know that we survive on pocket money, so each of them should have weekly or monthly budget. This can avoid them from spending our money on unnecessary things or needs. They must know the differences between needs and desires. Then only they can spend their money in proper way. If their friends buy something that they fancy, they surely admire to have one like them. To illustrate, students love to buy new branded hand phone especially when they get scholarship. So, they should think properly. If it is not necessary, just forget it and do not let them from being influenced by their friends.

The other factor of the financial crisis having by my aged group is not all youths come from rich family. Their families are not afforded to bear all their needs. Sometimes, these groups of youths need to earn some pocket money by doing part time job. They will send some money to their parents to ease the burden of their parents. However, those who come from rich family are very lucky because their parents still can afford to bear their family and they do not have so many problems on finance.

To conclude, teenagers always having problems with finance if they are not able to manage the budget well. They must realize that if they were to go out and buy everything that we fancy, even a working man’s salary would not be enough. So, they should have made a policy for their own self that is to buy only when it is necessary and if they have the money. Otherwise, just forget about what they desire because if they cannot afford it, the chances are they do not need it.


(NURUL SYAFIQAH BINTI RAMLEE)
(104104)

010

THE EFFECT OF GLOBAL WARMING ON THE ECONOMY OF THE WORLD

Global warming needs no foreword. Society is already acquainted with this phenomenon as it is happening now. Every day, our world reconstructs itself little by little due to global warming. Thus, the changing processes give a drastic impact on us. Besides effects on social, our economy also receives the consequences. There are three main effects of global warming on economy and that is lowering the imports and exports of a country, loss of revenue or income and the number of investors and labourers decreases.

Firstly, the global warming would minimize the imports and exports of a country. As the climate change due to global warming, agriculture will also be affected thus reducing the production of food. Moreover, assets that can be imported and exported are destroyed by disasters such as droughts, floods, typhoons and hurricanes. Since the quantity of food is not enough and most of the assets are ruined, import and export activities would come to a halt. For example, drought in Russia reduced the wheat harvest by more than one-third. Russia also would suffer large crop losses due to wildfires cause by the dry spell.

Secondly, a country would experience a great loss on its income or revenue. The victims of disasters due to global warming will not be able to pay taxes considering assets like their houses are demolished. For instance, in Pakistan, the heaviest monsoon rains on record have sent rivers rampaging over huge swaths of countryside which left fourteen million Pakistanis homeless and poor. Plus, sell and buy activities become inactive as people are busy rebuilding their traumatic life. Import and exports that stop too would not generate income to the country. Hence, global warming will prevent income or revenue to a country.

Lastly, the number of investors and labourers decreases. Investors are not inclining to invest their money on a country that is experiencing loss due to global warming. For example, global warming damages properties and real estate assets. Thus, it is not profitable and gives a total loss for the investors. Furthermore, for the labourers, most of them are busy restoring their houses and work place that devastated by the disasters such as wildfires, rising sea levels, and extreme weather events which definitely cost them months to rebuild. Therefore, the economy will depreciate since the needed people are not active and present in the economic related activities.

In conclusion, the economy of the world will definitely crumble if global warming continues to progress. Global warming is a critical issue and it is the responsibilities of every single human to reduce it. Scientists scattered across the globe have produced predictions that we will face a string of terrible catastrophes unless we act to prepare ourselves and deal with the underlying causes of global warming. The effects of global warming are now happening as minutes passed by. We are the ones that cause global warming and we are the ones that should improve it.

SARAH BINTI ZULKEFLI (104313)

009

CAUSE AND EFFECT OF ENRON COMPANY TO UNITED STATES OF AMERICA

Economy is all about the movement of money. The downs of the economy of a country really give a big impact to people in it, and this is called economic crisis. One of the examples of the world’s largest economic crisis is Enron scandal. The causes of downfall of this company really affect the United States of America.

Since Enron Company use mark-to-market accounting process, investors were often given false or misleading reports due to the large discrepancies of attempting to match profits and cash. The dishonest of the employees to manage the business caused the company to face bankruptcy. Lastly, Enron Company made a habit of booking costs of cancelled projects as asset.

The negative impact that obviously can be seen from this scandal is that many employees lost their jobs. To make matters worse, many of these employees were prevent from selling their stock even as the stock price declined in value. Lastly, they may lose most of their entire life savings as the ongoing financial viability of the auditing firm is in dangerous situation.

Besides that, the scandal caused the dissolution of Arthur Anderson, which at that time was one of the world's top accounting firms. New rules and regulation were also made for big business to avoid such this problem. Last but not least, this scandal had caused some murder and suicide among the employees because they faced a lot of pressure.

As a conclusion, economy is such a big area to be worked on. It controls a lot of things especially when it comes to the income of your country or even yourself. We can learn that the crime of gaining money or financial benefits by a trick or lying will never pays. Or else, if you do not understand about economy well, do not invest in it.

NUR FITRIAH BINTI KHAIRUDDIN (103462)