How Does Economy Affect The Mexican Economy - 965 Words

The Mexican economy is currently the 15th largest economy in the world with a GDP of $2.2 trillion (â€Å"Index of Economic Freedom†, 2017). In comparison, the United States had a GDP of $18.57 trillion in 2016 (â€Å"United States GPD†, 2017). Fears of a Trump presidency initially caused predictions for a slower GDP growth in 2017, but as fears are eased Mexico’s finance ministry has increased their predictions for the GDP growth to an estimated 1.5% to 2.5% increase for 2017, raised from the previous estimate of 1.3% to 2.3% (Harrup, 2017). The GDP growth rate continues to increase from previous years. In 2015, the GDP was measured at 2.3%, which was a 0.9% increase from 2013 (â€Å"Mexican GDP Growth Rate† 2017). The economy also benefits from free†¦show more content†¦Because of Mexico’s large manufacturing industry, the country produces and exports the same amount of goods as all other Latin American countries combined (Amadeo, 2017). Another dependent factor of Mexico’s economy is tourism. It is the eighth most visited country in the world and ranks number one among visitors to Latin America. A total of 8.9% of the country’s GDP comes from tourism income which is the nation’s fifth biggest source of revenue (Wood, 2017). Tourism also helps create jobs in Mexico, but it is generally confined to a small area of resort towns along the Caribbean coast such as Cancun, the Riviera Maya, and Los Cabos in the Baja Peninsula on the Pacific Ocean coast. The unemployment rate in Mexico is currently at 4.5% which is generally considered low. Mexico splits its criteria to be considered living in poverty into two categories: moderate poverty and extreme poverty. The Mexican government estimates that 33% of its population lives in moderate poverty while 9% live in extreme poverty (â€Å"Mexico†, 2017). Mexican people also face a high degree of income inequality, with the second highest level of any country of economic disparities between the extremely rich and the extremely poor, according to the Organization for Economic Co-operation and Development (OECD) which measures economic progress and world trade. The richest 1% of the country hold 43% of Mexico’sShow MoreRelatedThe Border Cities Of El Paso And Ciudad Juarez1525 Words   |  7 PagesAlong the Texas/Mexico border there are many border cities, and among the border cities there is a trend that points to an advantage of prosperity on the US side compared to the Mexica n side of the border. The border cities of El Paso and Ciudad Juarez show an example of the US advantage over the Mexican side; El Paso is a Texas city on the Texas/Mexico border, and in 2014 it was the city with the lowest crime rate in the US ; Ciudad Juarez, on the other hand was known as one of the deadliest citiesRead MoreMoney Laundering and Mexican Drug Cartels Essay1417 Words   |  6 PagesThe Mexican drug cartels have been smuggling drugs across the boarder of Mexico to the United States of America for decades. The Mexican drug cartels are a drug smuggling criminal organization. In other words they run a narcotic drug business. * In my research, I will be discussing about the money being laundered by the Mexican drug cartels from the U.S. to Mexico. The cartels need to launder their money in order to be able to take their drug money back to their country of Mexico. The Mexican drugRead MoreThe Rio Grande Valley, And Immigration1426 Words   |  6 Pagespurpose of this research paper is to demonstrate that immigration to the Rio Grande valley has had a negative impact. Effects immigration has on the Valley s economy, employment, and education are discussed. The concepts of informal and underground economy by Richardson, C. and Pisani, M. are covered to demonstrate the unique economy the Rio Grande has. Poverty rates at a national and local level are compared. Studies by Richardson, C. and Pagan, J. are used for their statistical informationRead MoreMass Deportation Of Illegal Immigrants1582 Words   |  7 PagesMass Deportation of Illegal Mexican Immigrants Cannot Solve America’s Immigration Problems. Immigration and deportation reformation has been one of the hot topics in the 2016 election. Many have chosen which candidate to vote for based on their point of view on immigration and deportation matters. Some supported Donald Trump because he promised to deport all illegal immigrants if he becomes president while others supported Hillary Clinton because she was against mass deportation. In most cases, massRead MoreThe Influencs of Mexican Drug Cartels on Every Day Life in Mexico708 Words   |  3 Pages EQ: How have Mexican cartels changed life for the everyday person in Mexico and what can the government do to stop their influence for future generations? The Mexican drug war has been going on for many decades now affecting many generations. Drug trafficking has gain more power by its sinister leaders that maintain power at all cost. This affects how mexico is perceived in the United States and rest of the world. The drug cartels have been taking advantage of Mexicans poor education ratesRead MoreImmigration Is Not New Topic1097 Words   |  5 Pagesfamily immigrated from Michoacà ¡n to Mexico State, some others decided to immigrate to the USA. My generation is the fourth in the USA, my great grand parents came to USA in Braceros program, but my generation is the first to establish USA as their home. How many people do they have similar situation, or a history of migration? In this paper, I will discuss what is missing in â€Å"The immigration equation.† Immigration is a sensitive problem in this country where the majority population has a history of immigrationRead MoreEco 372 Week 5919 Words   |  4 PagesInternational Trade and Finance Speech International Trade and Finance Speech The current state of the U.S. macro economy is made up of a plethora of highly involved processes. I am going to attempt to explain some simple terms and concepts focused on international trade and foreign exchange rates. Foreign Exchange Rates One needs to have a base level understanding of what defines an exchange rate. According to Investopedia, a foreign exchange rate is â€Å"The price of one countrys currencyRead MorePros and Cons of NAFTA Essay1603 Words   |  7 Pagesresult of the growing global trend towards free trade between countries. The economies of these three countries have been interdependent to a degree for a long time. Because of these reasons, the NAFTA has eliminated almost all tariffs between the US, Canada and Mexico, and helped lessen the difficulties previously imposed upon free trade and investment in North America. In doing so, it has both helped and damaged the economies of its countries. Although it has increased trade in North America, reducedRead MoreShould Marijuana Be Legalized?1672 Words   |  7 Pagespropaganda has won public support for these laws. Only recently, U.S. citizens have started to question why marijuana is illegal. I feel that it would be beneficial to discard these laws and beliefs of the past. We need to analyze how the legalization of marijuana would positively affect the United States and its citizens in the following fields: medical, criminology, and financial. I support the legalization of marijuana not because I use this herb, because I do not and would not even if it was legal muchRead MoreThe Price Of Everything Raises Essay1207 Words   |  5 Pagesis a choice we have, different elements affect that choice. We might not realize all those outside factors at the time of purchase, but as Alfred Marshall said, prices are always changing, affecting our spending. One of those outside factors is the foreign exchange market. â€Å"The foreign exchange market spans the globe, with prices moving and currencies trading somewhere—every hour of every business day† (Eiteman, Stonehill, Moffett, 2016, p. 119). What does this mean to consumers? It depends on whether

My Favorite Class - 1024 Words

Education, in my eyes, is to learn and be inspired by the knowledge you obtain. School must be a fun place to be in order to grab the attention of the students, or else students would rather be on his or her phone or sleep. My physics teacher, during junior year of high school, is the definition of what school should be. He inspires everyone in the class towards the subject at hand. Due to the inspiration led to knowledge that most people wouldnt have if you run a clock in- clock out outlook. He made the class fun by having group work, labs, class discussion, and experiments that he performed. Mr. Sanfords physics class was my favorite class because the inspiration he gave me, because I am still captured by the subject. Every†¦show more content†¦In a lot of my cases, when people have a question about space and what goes on up there I always have an answer to it. People come to me asking about space facts, and its all because of Mr. Sanford and his physics class. Im to the point where I don’t need a beginners guide on complicated and confusing facts about space, I just know how to interpret that language, because when discussing space it can get complicated. Having the drive to research a topic such as astronomy and all the mysteries that it comes with, really gives you a mindset of researching other thigs as well. I have started researching ancient Egypt, and other anomalous topics, such as the Vatican and all the mysteries that it holds. This desire to know, is all due to Mr. Sanfords class, and ultimately starts very interesting topics with my friends and family. One of the best parts of the class was that it was fun, and that makes school a lot more barrable. At the start of class, Mr. Sanford would play a video or two, which everyone enjoyed. These videos could range from what we were actually learning about, whether it was sound, gravity, or light. Some days he would play us a video of an interesting thing about space research. Most t eachers that play a video people tend to lay their head down and sleep, but in his class, everyone wanted to know what was being said; therefore, everyone paid attention and didnt cause any ruckus. He would also demonstrate physics in action byShow MoreRelatedMy Favorite Class Of The Class764 Words   |  4 Pageslunch bell rings, while most kids’ favorite class of the day is lunch, it is my least favorite. I’ve figured out a way to prevent myself from being pushed around in the halls on the daily since im basically invisible to all of the other kids. Everyone sprints out the door into the hallways while I wait at my desk for about 20 seconds so that by the time I leave the classroom everyone else is already in the cafeteria and out of the halls. I walk to my locker and grab my lunch and book. Everyday I sitRead MoreMy Favorite Class1331 Words   |  6 PagesEver since I could remember, my favorite class as fluctuated from year to year until I reached high school. In elementary school, I dreaded science class because coming up with a topic for the science project was frustrating. When I was younger, I enjoyed language arts class primarily for the grammar lessons and discussion lectures on books, but in high school, keeping up with the readings were overwhelming. For instance, one time it took me one hour to read five pages of Harper Lee’s To Kill aRead MoreMy Favorite Class2070 Words   |  9 Pages7. What I liked, disliked, and would change about the class Overall, the class has been an incredible experience. I will truly never forget the lessons that I have learned, the friends that I have made, and the people that I have helped and gotten to know. The class is a great opportunity and I think that anyone who is able to take it should at least consider it. Although there were most definitely some struggles throughout the year, I will not deny that I enjoyed the majority of the year. It hasRead MoreHot or Not?: My Favorite Readings from Class637 Words   |  3 Pagesthis class I wasnt sure how I would like it or how good I would do in it because i have heard many things about it. At first, it was very, very hard class to take because we had to read Hamilton and I freaking hated it. Absolutely hated it. HATED IT. But after we were done with Hamilton and I really got the hang of doing packets I found out that it is not that horrible. On the plus side we do get to read some actually good stuff. Although we haven’t had many readin gs this semester my favorite onesRead MoreMy Three Favorite Stories from English Class599 Words   |  2 Pages Many times when you read different texts you will get a sense of wonderment and complete adoration for it. When you truly like something this much it will have that effect. This is my favorite three stories from Mr. McGee’s freshman Honors English Class. The first story that I really enjoyed from McGee’s class was the story known as â€Å"Slam, Dunk, Hook†. This story is all about Basketball. The feelings when you play, the intense emotions of the game, and the craziest and most adored moves ofRead MoreGraduation Speech - Original Writing1375 Words   |  6 PagesMr. Bausch s language arts class. For our first assignment we had to make a cereal box about our selves. Once we were finished we had to present in front of the class. Once my name was called I went up and stood in front of the class. My legs were shaking and my heart was pumping. I speed right through it and hurried back to my seat I was so proud of my self. Now in eighth grade, we had to present a motivation speech, I got up and confidently presented it to the class. I have changed a lot over aRead MoreMy First Day Of Grade At Springfield Essay1249 Words   |  5 PagesI remember my first day of 4th grade at Springfield local. I was nervous, the teache r who would be teaching me was known to have made students do a lot of writing. Of course I have written out small sentences and maybe some alphabetical practice on paper before, but I have never written thoughts or ideas that coursed through my nine year old brain. We were advised to bring a journal to keep all year throughout the class, to write about whatever topic the teacher desired to assign to the classroomRead MoreMy Favorite Pieces Of Literature910 Words   |  4 Pages â€Å"Examples of My Favorite Pieces of Literature† There are many different types of Literature, and throughout high school, most of us read and study famous pieces written by popular authors. I enjoyed reading and studying all types of literature in school, but my favorite was a story or poem that talked about how to overcome the obstacles and unforeseen circumstances we sometimes face in life. 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What Impacts Will the Aging Population of Germany Have on Its Economy Free Essays

string(157) " the argument that with the on-set of population aging, an increasing share of the elderly in the German market caused changes in its consumption structure\." The objective of this research paper is to explore, analyze and survey the implications of Germany’s demographics on the country’s economy. The motivation behind this study is to add to the understanding of social-economic issues in one of the Eurozone’s heavyweights and its impact for years to come. This paper looks into Germany’s demographic trends, consumption trends, savings trends, Germany’s pension policy and labor market effects. We will write a custom essay sample on What Impacts Will the Aging Population of Germany Have on Its Economy or any similar topic only for you Order Now This paper draws on estimates and analyses from relevant literature, including scholarly journals and government publications to illustrate and quantify its points. Conclusions drawn from this study shows that the definitive impact of population aging on economic growth is reflected in consumption, savings, labor pool and dependency burdens. Practical implications can be surmised from this paper; policy makers, native citizens, immigrants and other stakeholders might wish to refer to this paper for an understanding and perspective of the social phenomenon and derive solutions to problems in its sphere. However there are limitations to this research as it is done through literature review and the demographic-economic variables are not constant. Further research will be required to gather concise and quantifiable data to support its claims. Introduction Germany’s aging problem is serious because during the past 30 years, German women have produced children at an average rate of less than 1. 4 babies per lifetime (Tim Colebatch, 2004). In 2009 The Federal Statistic’s Office (Germany) forecast Germany’s rapidly aging population was likely to decline by 20 percent to around 65 million by 2060. The drop will be accompanied by a dramatic shift in the amount of elderly people in Germany. Of the country’s current 81 million inhabitants, some 20. 6 percent are now aged 65 (2011). But in 2060, assuming that fertility rate remain constant and life expectancy increase at a steady rate, that percentage will increase to 33 percent. Following a rapid recovery from the 2008-2009 recessions, economic growth has slowed in the second half of 2011 for Germany (OECD,2012). Policy makers are faced with domestic issues interfering with mid-term growth potential, one of them namely rapid population aging. Deutsche Bundesbank published a report in April 2012 announcing that if the dampening effects of demographics can be mitigated by appropriate reform measures, it will largely be possible to maintain the current rate of potential growth of roughly 11/4% per y ear until 2020. With Europe struggling to cope with the Debt Crisis, an economic powerhouse such as Germany is under the pressure to come up with solutions and lead the union. However with its workforce fading into bottomless vacuum of tax dependents, it does not reflect well onto Germany’s financial health and strength as a sovereign nation. This paper intends to examine the situation in Germany and reach a conclusion that population aging increases the dependent population burden in views of both taxpayers and the nation’s budget; aggregate consumption expenditure decreases; the savings rate declines and shrinks the pool of available capital; working-age population reduces, while the labor productivity in Germany is not impacted heavily. Moreover, this paper will outline a perspective stakeholders should adopt to illustrate that as long as effective reform or measures can be implemented, the negative impact of the aging population on economic growth is likely to be minimized. Main arguments Dependency burdens Population aging increases the dependent population burden. Germany’s pension system is known as the most generous pension system and public welfare. Costs of public retirement insurance are almost 12% of GDP, more than 2. times as much as the U. S. Social Security System (Axel Borsch-Supan, et al. ,2003), and it accounts for a high proportion of retirees’ income. The weight of this tremendous systems is taxing on Germany’s finances as well as the need for tax-payers’ support. To ease the pressure of an aging population on the government budget, Germany has carried out a series of reforms. In what was called â€Å"the greatest social reform after war â€Å"by former Labor Minister F ranz Liszt initiated in the spring of 2001. The main contents include reducing benefits, settling the level of premium expenditure, a pay-as-you-go pension system and developing a new type of private pension to fill the loss of welfare income. This reform, especially with measures to expand private pension types, will probably promote economic development. The Fund pension system is conducive for German government to supply a large number of retirees without increasing the load of employees and taxpayers. From a macroeconomic perspective, this series of system can help reduce the government budget pressure from an aging population. From micro-economic perspective, it can also bring higher personal income. Unfortunately, there is a big difference between the actual implementation of Liszt reform and the government’s promise. The new fund pension system in Germany is being undertaken on a relatively small scale, while the current non-accumulation fund insurance system is still in the highest flight. The final result is that, the German retirees are almost entirely likely to depend on the government. Overall, the public welfare accounted for 61% of net income after tax for families of 60 years old or above. The substantial increase in social welfare spending for the elderly in the GNP will continue to enlarge, as it is bound to limit the expanding of production, and influence the capital investment and economic efficiency, and add the burden on the national economy. Thus, with the development of population aging and extension of the average life expectancy of the aging of the population, it might be appropriate to extend the retirement age limit, in order to reduce dependent population and relatively increase the accumulation funds to expand production. Germany plans to raise the retirement age to 67 years of age, because of such considerations. But at the same time, the heavy new employment pressure requires Germany to strike a balance between extending retirement age and easing the employment pressure. Consumption The next section puts forward the argument that with the on-set of population aging, an increasing share of the elderly in the German market caused changes in its consumption structure. You read "What Impacts Will the Aging Population of Germany Have on Its Economy" in category "Papers" Overall, the consumption expenditure shows a gradual widening tendency during the aging process; however, Germany has already entered the aging society, so consumption expenditure showed a decreasing trend. This table shows the percentage of elderly family with an excess of the annuity income over expenditures. Annuity income is more than consumer spending and it increases with age. The decline in consumer spending is so significant that for about a quarter of the elderly aged 75 and above, the annuity income is more than 50% higher than consumer spending. In fact, almost all of this decline can be attributed to a decrease of food, travel and traffic expenses, the marginal utility of consumption reduction will probably decrease in the elderly, due to deteriorating health or being lonely. It is worth noticing that in Germany, food, travel and traffic expenses can hardly be offset by more health spending, because almost all health fees are covered by compulsory health insurance. (Wise, 2004) To some extent, the influence of population aging on consumption inhibited economic development. In this case, to speed up the development of older industries, government should focus on the development of travel, real estate and pension services for older people in order to promote consumption growth and the prosperity of the silver hair market. Savings The world’s population is aging, accordingly, bank balances might probably stop growing. People tend to reduce their savings after retirement, while the younger generation are not as canny as older generations. As a result, savings rate will drop significantly (Diana Farrell, et al. , electric shavers, 2005). Because aggregate saving equals to investment (Lachlan McGregor, 2008), so if left unchecked, the slowdown of the global savings rate will reduce the amount of money available for investment and then hinder economic growth. It is not easy to find a solution. Stimulating economic growth in itself is not a solution, nor is the future productivity revolution or technological breakthroughs. To add to future global savings and financial wealth, the German government and the family need to increase their savings rate, and earn a higher return on assets. These changes involve tough choices, but it can provide a brighter future. As the elderly make up the larger proportion of the population, the total amount for investment and wealth accumulation will be reduced. The expected decline of growth rate for Germany’s financial wealth will fall to 2. 4% from 3. 8%. One thing is certain: the decline in the household savings rate can shrink the pool of available capital. Because of continuing budget deficit, government may push up interest rates and crowd out private investment. In the next few years, the rise in the cost of economic dependence will force government to implete better fiscal discipline. The only meaningful way to offset the population pressure to the upcoming global financial wealth is increasing savings rate of government and households, and a more efficient allocation of capital for the economy, thereby increasing the return. In Germany, to achieve the required rate of return, the policy makers must improve competitiveness, encourage innovation in financial sector and the economy as a whole, and raise the legal protection of investors and creditors. As for increasing the savings rate, the key to is to overcome inertia. When the enterprises automatically register their employees on a voluntary savings plan rather than requiring people to become active, participation rate might increase significantly. Of course, the government can also increase the savings rate of Germany directly. Labor Pool With an increase in the proportion of the elderly population, the proportion of working-age population will accordingly decrease, which goes against German economic development (David E. Bloom, et al. , 2001). Labor force can be an effective motivation of rapid economic growth. However, a demographic draft report of the German federal government indicated that the working age population may reduce from 50 million to 26. 5 million in 2050, which is a decrease of nearly a half. According to the draft, the employment reduction would bring disastrous consequences to the economy of Germany. Moreover, it is much more difficult for older workers to adapt to the fast-paced production activities, especially in the labor-intensive production, so population aging is not conducive to the improvement of labor. In this case, a targeted immigration plan is very useful to enable Germany’ to maintain its competitiveness. It is estimated that in order to make the employment potential of Germany remain at the level in 2004, at least 300 thousand to 500 thousand immigrants are needed annually. The appeal of that idea stems from two considerations: immigrants are relatively young, and hence their arrival reduces the average age of both the population and the labor force; and they can be expected to add more to the national product than they use up as consumers in terms of health-care, and thus to provide net support for the rising numbers of elderly dependents in the population. On closer inspection, however, there is a problem: immigrants get older, like everyone else, and a sustained policy of higher immigration has little long-term impact on either the median age or the age composition of the population. As Espenshade (1994, p. 766) noted, â€Å"immigration is a clumsy and unrealistic policy alternative to offset a shortage of domestic labor or to correct a perceived imbalance in the pensioner to worker ratio. † The effect of population aging to enhance labor productivity is negative which can be reflected on that the speed of aging workforce to accept new knowledge, science and technology is slower than that of the young. Relatively the elderly population shows a weak ability to adapt to new industries. Thus, to some extent, new product development and technological innovation are largely influenced by the aging problem. In the case of rapid scientific and technological development, and faster advancement of knowledge and increasingly keen competition, population aging has greater negative influence on labor productivity and economic growth. As for Germany, it gives priority to technology-intensive industries and to improve labor productivity mainly relies on science and technology, so the demand for mental exertion is much higher than physical. As a result, the negative influence of population aging on increase labor productivity is likely to be limited, on the other side, the experience of skilled older workers will have a positive effect to improve labor productivity in Germany. Conclusion Overall, it is argued in this essay that population aging in terms of the acroeconomics is not conducive to economic development, and its negative impact is mainly manifested in the above-mentioned four areas, while the elderly population do not entirely represent an economic burden as they can be profitable consumers, among them there are still some people engaged in economic activities with relatively abundant accumulation of experience and knowledge which can make up for the physical insufficiency. Thus, to some extent, these peo ple contribute to the economic development. In fact, an effective way to mitigate the adverse effects of an aging population and labor force, is by accelerating the development of a knowledge-based economy in high-tech industries. (i. e. to improve the level of automation in production and reduce the demand for workers’ physical strength. ) We should also see that the development of the knowledge-based economy led to changes in the industrial structure and occupational structure and the increasingly high demand for workers intelligence. With the expectancy of population average life, the health status of the elderly is gradually improving, older workers will make a greater contribution than ever for economic development. Therefore, the rational development and utilization of elderly human resources, will become an important issue to mitigate the adverse impact of population aging on economic development. Appendix Percentage of Elderly in Age Group with a Ratio of Annuity Income to Consumption Expenditures in Germany [pic] Bibliography Asghar Zaidi and Malgorzata Rejniak (2010). Fiscal Policy and Sustainability in View of Crisis and Population Aging in Central and Eastern European Countries. Axel Borsch-Supan et al. (2005). aging, pension reform, and capital flows:a multi-country simulation model. Cambridge. National Bureau of Economic Research. David A. Wise (2004). Studies in the Economics of Aging. National Bureau of Economic Research. David E. Bloomet al. (2001). Economic Growth and the Demographic Transition. Cambridge: National Bureau of Economic Research. David N. Weil (2006). Population Aging. Cambridge. National Bureau of Economic Research. Michael D. Hurd (2006). The Economics Of Individual Aging. University of New York at Stony Brook. How to cite What Impacts Will the Aging Population of Germany Have on Its Economy, Papers

Information System Motor Sales Management †Myassignmenthelp.Com

Question: Explain Information System Motor Sales Management? Answer: Introducation The ABC motors is a car selling and vendor company which majorly deals with selling and renting of the various types of vehicles, however the type of vehicles sold and rent are the busses, Lorries, pickup, tractors; however they also sell the motorbikes. In addition to this the company also rents some vehicles mainly the tractors and the Lorries at fair prices. The current system is made of the various departments and they face a lot of challenges in the record keeping process, since they do record their transactions in a book manually where they face challenges while making stock, sales and rental analysis, however they tend to lose their records and they may misplace a very important data management. The company however has the major structures which is divided in terms of the departments, these departments includes management department where the general manager is located and they mainly deals with overall operations ,there is also the inventory manager this is the one responsible for the recording of the available vehicle in the stock, The sales manager who mainly deals with the vehicles to be sold and he issue the vehicles to the owners after they are bought. However the organization has also the financial manager this mainly receives the money from the customers who want to purchase or rent a certain machinery or vehicle. All these managers are the one who controls the operation of the company ,however when the customers visits the company they record their details in the finance department including their name and the required machinery and whether is rental or purchase then they proceed to the show room so that can be able to select their desirable vehicles. After the customers selecting their desirable machinery they proceed to finance department and make payments, the finance manager issues the customers with the receipt where using the receipt the sales manager or the rental manager issues the machinery to the customers. Operational problems. The ABC motors company has various operations and there are various challenges that company faces, the challenges are in terms of the data storage and the operation process, among the following are some of the challenges faced by the company management. Poor record management-the records are managed manually where the stock record ,rental records and the sale records are captured in the books records which can be easily damaged. Long waiting queues. The customers has been coming for services in this company this is because of high quality service offered here and the discounted prices by the company to the customers and due to the poor record capturing and searching from the book records. Time consumption and wastage. The use of the book type of record keeping make the user of the system spend a lot of time to retrieve the record and his leads to waste time for both the customers and the respective staffs. Challenges in record storage. The company however is also facing some challenges when it comes to record storage where it leads to more expenditure in purchase of the storage cabinets this requires a large storage room for the cabinets as well. Challenges in record retrieval, The company get a lot of challenges while trying to retrieve the storage of the records either for storage or the sales and rental books and tends to take a lot of time and increases the queues. Lack of data backup. The company data at this moment has no formal backup ,this makes it risky for in case the data get lost at any given time and in case of the complain from the customer and they can end up claiming for refund of any purchase. Loss of data. The company can end up losing the data in case the files get misplaced and this makes the company lack data for future reference to analyse the sales trends. Poor decision making. The current system the management cannot make good decision since the they cannot be able to do analysis of their sales, store and rental records. system acquisition method Due to various challenges ,in this company the management decided to put in place the accounting management system ,this Is to allow that the company manages all those challenges ,this is to ensure that the company will be able to integrate all the relevant departments ,this will enable the central storage of the company records (Rainer, 2015). The company has decided to acquire new computerized system which will enable them store the records, ease the records retrieval and also it enable the data backup. During the system acquisition the company used the commercial software which will be customized to be use by the ABC motor company; this software will be able to link the entire departments, this will as a result lead to improved service delivery and will result to services delivery. system flowchart of the sales procedures. The system will streamline how the details of the information flow this indicates how the customer visits the company, order for product and make payments; however the system will also enable the store manger to record the stock of the vehicles which are in rent. The below is the flow chart for the system which indicates the way information is feed in the system. Control problems in the system and fraud are possible in this system. This system is quite efficient ,however there are some challenges which are involved in the system some of these challenges include the fraudulent cases ,these cases includes the following : The issuing of authentication details to unauthorized users: This causes the leaking of information to the public which makes the information to be at risk of data loss. Malicious attack :This is a case where the attackers tends to hack into the network system ,the process will enable the attackers to destroy the system or even cause harm to the computer stored files. The crashing of the computers systems: The crashing of the computer system leads to loss of the computer data is lost, however the data can only be obtained from the back up data . Infection by viruses and the malicious software: The virus are much infectious to electronic files ,however the computers tend to loss data ,however through the virus attack the malicious attackers can access the data or even make some alteration to the record. Development and adoption of the accounting software packages. This company requires the accounting software, this software will be developed using a standard features that the users can make use of the system .The adopted system is made to ensure that the record is maintained (Jelassi, 2014). However there are various modules that are meant to be used by the system users as below: Store manager modules. This module is used to by the store manager where he updates the records of the vehicles bought and in the records ,this module is also used to update the records ,however through this module the store manger check on the deficiency of the stock of the machinery( Rainer,2015). . Sales manager modules. This is a module that is used by the sales manager where all the sold products are recorded here the way sales are made ,however the sales manager is able to do the analysis of the sales made and be able to do the profit and loss analysis( Courtney, 2015). Finance manager modules. This module for the proposed account system is meant to be used by the finance manager ,however this allows the company to keep the sales records ,however the company can be able to analyze the record in terms of the type of the vehicles sold in the company. Rental manager modules. This is the module that is meant to be use by the rental manager, the rental manager keeps the record of the vehicles being hired by the company, and therefore the manager can also be able to give a summary of the sales made accordingly (Carter , 2013). Current market size. There is a wide pool of customers who are the major target to the company ,this is where the company can be able to sell their products to the customers ,however the customers were also able hire the vehicles and machinery respectively (Blanning,2012). The below list indicates the various customers targeted by the company as shown below: The large scale farmers, these were the customers who could rent the tractors for a certain period in order to till their large scale farms. The wedding brides, these people are the one who rent the cars for the wedding program. The cars buyers, these are the people who visits the company to buy the new cars according to their needs. Leaders in the market and what gives them the competitive advantage. There are various companies who do offer the similar services, however these companies are competitive since most of them have variety of products, however the main competitive advantage is use of availability of various services which includes the following: They allow their clients to rent their services at low cost. They provides more products to their customers than other related companies . They provide online booking of their products by the customers. They have already installed accounting software which is used to record and store their sales details. They have a cloud backup facility this enables them to ensure that they have their data secure in case the computers fails. Current challenges accounting software. The account software is very important in the organization, however there are various challenges that are involved in the accounting software, some of these software challenges which includes (Liebowitz, 2015): The system is not accessible by the online customers thus it is not possible for the customers (Silver,2014). The system is not fully customized to fit the various companys needs and thus some of the transaction of the bank tends to remain un catered for. The system is also limited to some few limitations where they only cover few needs. The other limitation is that the system administrators are unable to back up their data in the remote server therefore in case of the local data loss their data get lost. References Liebowitz, J.(2015) .Expert Systems for Business Management. Englewood Cliffs Yourdon Press,500. Silver.M.(2014). Systems that Support Decision Makers. Chichester :Wiley publishers,250. Carter , G.(2013). Building Organizational Decision Support Systems. San Diego: Academic Press,230. Blanning, R.(2012). Current Research in Decision Support Systems. Los Alamitos: IEEE Computer Society Press,650. Courtney, F.(2015).Decision Support Models and Expert System. New Yorks:Macmillan,2011 Jelassi, T.(2014). Decision Support Systems: Experiences and Expectation. North-Holland Amsterdam publishers,200 . Rainer, R.(2015). Executive Information Systems. New York: Wiley, 268.