The Relationship Between Exchange Rates and Commodity Prices

The Relationship Between Exchange Rates and Commodity Prices Over the last several years, the value of the Canadian Dollar (CAD) has been on an upward trend, greatly appreciating relative to the American Dollar. A rise in commodity pricesInterest rate fluctuationsInternational factors and speculation Many economic analysts believe that the rise in the value of the Canadian Dollar is due to a rise in commodity prices stemming from increased American demand for commodities. Canada exports a great deal of natural resources, such as natural gas and timber to the United States. Increased demand for those goods, all else being equal, causes the price of that good to rise and the quantity consumed of that good to go up. When Canadian companies sell more goods at a higher price to Americans, the Canadian dollar to gains in value relative to the U.S. dollar, through one of two mechanisms: 1. Canadian Producers Sell to U.S. Buyers Who Pay in CAD This mechanism is quite straightforward. To make purchases in Canadian Dollars, American buyers must first sell American Dollars on the foreign exchange market in order to  buy Canadian Dollars. This action causes the number of American Dollars on the market to rise and the number of Canadian Dollars to fall. To keep the market in equilibrium, the value of the American Dollar must fall (to offset the larger quantity available) and the value of the Canadian Dollar must rise. 2. Canadian Producers Sell to U.S. Buyers Who Pay in USD This mechanism is only slightly more complicated. Canadian producers will often sell their products to Americans in exchange for American Dollars, as it is inconvenient for their customers to use foreign exchange markets. However, the Canadian producer will have to pay most of their expenses, such as employee wages, in Canadian Dollars. No problem; they sell the American Dollars they received from sales, and purchase Canadian Dollars. This then has the same effect as mechanism 1. Now that weve seen how the Canadian and American Dollars are linked to changes in commodity prices due to increased demand, next well see if the data matches the theory. How to Test the Theory One way to test our theory is to see if commodity prices and the exchange rate have been moving in tandem. If we find that they are not moving in tandem, or that they are completely unrelated, well know that changes in currency prices are not causing exchange rate fluctuations. If commodity prices and exchange rates do move together, the theory may still hold. In this  case, such correlation does not prove causation as there could be some other third factor causing exchange rates and commodity prices to move in the same direction. Though the existence of correlation between the two is the first step in uncovering evidence in support of the theory, on its own such a relationship simply does not disprove the theory. Canadas Commodity Price Index (CPI) In A Beginners Guide to Exchange Rates and the Foreign Exchange Market,  we learned that the Bank of Canada developed a Commodity Price Index (CPI), which tracks changes in the prices of commodities which Canada exports. The CPI can be broken down into three basic components, which are weighted to reflect the relative magnitude of those exports: Energy: 34.9%Food: 18.8%Industrial Materials: 46.3%(Metals 14.4%, Minerals 2.3%, Forest Products 29.6%) Lets take a look at the monthly exchange rate and Commodity Price Index data for 2002 and 2003 (24 months). The exchange rate data comes from the St. Louis Fed - FRED II and the CPI data is from The Bank of Canada. The CPI data has also been broken down into its three main components, so we can see if any one commodity group is a factor in the exchange rate fluctuations. The exchange rate and commodity price data for the 24 months can be seen at the bottom of this page. Increases in the Canadian Dollar and CPI The first thing to note is how the Canadian Dollar, the Commodity Price Index, and the 3 components of the index have all risen over the 2-year period. In percentage terms, we have the following increases: Canadian Dollar - Up 21.771%Commodity Price Index - Up 46.754%Energy - Up 100.232%Food - Up 13.682%Industrial Materials - Up 21.729% The Commodity Price Index has risen twice as fast as the Canadian Dollar. The bulk of this increase seems to be due to higher energy prices, most notably higher natural gas and crude oil prices. The price of food and industrial materials has also risen during this period, though not nearly as quickly as energy prices. Computing the Correlation Between Exchange Rates and CPI We can determine if these prices are moving together, by computing the correlation between the exchange rate and the various CPI factors. The economics glossary defines correlation in the following way: Two random variables are positively correlated if high values of one are likely to be associated with high values of the other. They are negatively correlated if high values of one are likely to be associated with low values of the other. Correlation coefficients are between -1 and 1, inclusive, by definition. They are greater than zero for positive correlation and less than zero for negative correlations. A correlation coefficient of 0.5 or 0.6 would indicate that the exchange rate and the commodity price index move in the same direction, whereas a low correlation, such as 0 or 0.1 would indicate that the two are unrelated. Keep in mind that our 24 months of data is a very limited sample, so we need to take these measures with a grain of salt. Correlation Coefficients for the 24 months of 2002-2003 Exch Rate Commodity Index .746Exch Rate Energy .193Exch Rate Food .825Exch Rate Ind Mat .883Energy Food .336Energy Ind Mat .169Food Ind Mat .600 We see that the Canadian-American exchange rate is very highly correlated with the Commodity Price Index over this period. This is strong evidence that increased commodity prices are causing a hike in the exchange rate. Interestingly enough, it appears that according to the correlation coefficients, rising energy prices have very little to do with the rise of the Canadian Dollar, but higher prices for food and industrial materials may be playing a big role. Energy prices hikes also do not correlate well with rises in food and industrial materials costs (.336 and .169 respectively), but food prices and industrial material prices do move in tandem (.600 correlation). For our theory to hold true, we need the rising prices to be caused by increased American spending on Canadian food and industrial materials. In the final section, well see if Americans are truly are buying more of these Canadian goods. Exchange Rate Data DATE 1 CDN = CPI Energy Food Ind. Mat Jan 02 0.63 89.7 82.1 92.5 94.9 Feb 02 0.63 91.7 85.3 92.6 96.7 Mar 02 0.63 99.8 103.6 91.9 100.0 Apr 02 0.63 102.3 113.8 89.4 98.1 May 02 0.65 103.3 116.6 90.8 97.5 Jun 02 0.65 100.3 109.5 90.7 96.6 Jul 02 0.65 101.0 109.7 94.3 96.7 Aug 02 0.64 101.8 114.5 96.3 93.6 Sep 02 0.63 105.1 123.2 99.8 92.1 Oct 02 0.63 107.2 129.5 99.6 91.7 Nov 02 0.64 104.2 122.4 98.9 91.2 Dec 02 0.64 111.2 140.0 97.8 92.7 Jan 03 0.65 118.0 157.0 97.0 94.2 Feb 03 0.66 133.9 194.5 98.5 98.2 Mar 03 0.68 122.7 165.0 99.5 97.2 Apr 03 0.69 115.2 143.8 99.4 98.0 May 03 0.72 119.0 151.1 102.1 99.4 Jun 03 0.74 122.9 16.9 102.6 103.0 Jul 03 0.72 118.7 146.1 101.9 103.0 Aug 03 0.72 120.6 147.2 101.8 106.2 Sep 03 0.73 118.4 135.0 102.6 111.2 Oct 03 0.76 119.6 139.9 103.7 109.5 Nov 03 0.76 121.3 139.7 107.1 111.9 Dec 03 0.76 131.6 164.3 105.1 115.5 Were Americans Buying More Canadian Commodities? Weve seen that the Canadian-American exchange rate and commodity prices, particularly the price of food and industrial materials, have moved in tandem over the last two years. If Americans are buying more Canadian food and industrial materials, then our explanation for the data makes sense. Increased American demand for these Canadian products would simultaneously cause an increase in the price of those products, and an increase in the value of the Canadian Dollar, at the expense of the American one. The Data Unfortunately, we have very limited data about the number of goods the American are importing, but what evidence we have looks promising. In The Trade Deficit and Exchange Rates, we looked at Canadian and American trade patterns. With data provided by the U.S. Census Bureau, we see that the U.S. dollar value of imports from Canada has actually went down from 2001 to 2002. In 2001, Americans imported $216 billion of Canadian goods, in 2002 that figure dropped to $209 billion. But by the first 11 months of 2003, the U.S. had already imported $206 billion in goods and services from Canada showing an increase year-over-year. What Does This Mean? One thing we have to remember, though, is that these are dollar values of imports. All this is telling us is that in terms of U.S. Dollars, Americans are spending slightly less on Canadian imports. Since both the value of the U.S. Dollar and the price of commodities has changed, we need to do some mathematics to find out if the Americans are importing more or fewer goods. For the sake of this exercise, we will assume the United States imports nothing but commodities from Canada. This assumption does not greatly affect the results, but it certainly makes the math much easier. Well consider 2 months year-over-year, October 2002 and October 2003, to show how the number of exports has increased significantly between these two years. U.S. Imports From Canada: October 2002 For the month of October 2002, the United States imported $19.0 billion of goods from Canada. The commodity price index for that month was 107.2. So if a unit of Canadian commodities cost $107.20 that month, the U.S. bought 177,238,805 units of commodities from Canada during that month. (177,238,805 $19B / $107.20) U.S. Imports From Canada: October 2003 For the month of October 2003, the United States imported $20.4 billion of goods from Canada. The commodity price index for that month was 119.6. So if a unit of Canadian commodities cost $119.60 that month, the U.S. bought 170,568,561 units of commodities from Canada during that month. (170,568,561 $20.4B / $119.60). Conclusions From this calculation, we see that the United States bought 3.7% fewer goods over this period, despite a price hike of 11.57%. From our primer on price elasticity of demand, we see that the price elasticity of demand for these goods is 0.3, meaning theyre very inelastic. From this we can conclude one of two things: The demand for these goods are not at all sensitive to price changes so American producers were willing to absorb the price hike.The demand for these goods at every price level increased (relative to former demand levels), but this effect was more than offset by the large jump in prices, so overall quantity purchased declined slightly. In my view, number 2 looks a lot more likely. During that period, the U.S. economy had been spurred by massive government deficit spending. Between the 3rd quarter of 2002 and the 3rd quarter of 2003, the U.S. Gross Domestic Product increased by 5.8%. This GDP growth indicates increased economic production, which would likely require increased use of raw materials such as timber. The evidence that increased demand for Canadian commodities has caused the rise in both commodity prices and the Canadian Dollar is strong, but not overwhelming.

Pros and Cons of European currency union Essay Example | Topics and Well Written Essays - 1750 words

Pros and Cons of European currency union - Essay Example One of the biggest advantages of Euro is that it saves a lot of time and effort of the travelers who choose to travel with Europe. For instance if there is a Soccer game in Spain which a Greek citizen wants to witness, he/she can just straight away catch a flight and reach the Soccer stadium in Spain and watch the game. There is no need to covert the currency into some other currency. The same has resulted in saving a lot of time and effort of the European Citizens. This was not the case prior to the introduction of Euro. The people had to exchange money every now and then to meet their demands but after the introduction things have changed for better. The introduction of Euro has brought in many significant changes in the European Economy. The most noticeable of them all is the economic integrity brought by the introduction of the Euro. The positive effects are not restricted to economy but they also positively influence the political climate in the European countries. This paper will throw light upon the benefits and the problems of the European single currency, which is Euro. In addition to this the paper will also focus upon the affect on other currencies by the present rise in the value of the Euro. "Having a single currency and an economic and monetary union strengthens Europe's role in international fora and organizations like the International Monetary Fund, World Bank, and Organization for Economic Co-operation and Development." (The Euro & You). Euro strengthens the position of all the European countries, having a single currency helps a lot in the growth of the country and in this particular case Europe on the whole. Euro is very frequently used in international trade; it has very quickly become a part and parcel of the lives of many businessmen who carry out trade at large scales. Countries also have started using Euro as the currency for International trade. "A single currency makes Europe a strong partner to trade with and facilitates access to a genuine single market for foreign companies, who will benefit from lower costs of doing business in Europe." (The Euro & You). Another major advantage is the clarity in prices whenever an European citizen travels to another European country it becomes very easy to compare and buy the products of his/her choice; this facility was not available to the citizens prior to the launch of the Euro. Earlier even if a Tourist wanted to buy a product desperately, he/she was made to think thrice about it because of the different currencies within Europe but these days there is transparency in prices with regard to the currencies and this has only happened because of the introduction of the Euro. Euro has brought in a lot of Economic and financial stability, a Businessman is much less prone to risk when using Euro as his/her currency. Single currency keeps the inflation rate under a good check, which is extremely important for an economy and the Euro does exactly that. It keeps interest rates and the rate of inflation under check hence it can be said that the Euro plays a pivotal role in maintaining the economic growth of the European nations. Problems of the European Single Currency The biggest disadvantage is that it increases the financial cost of an institution in getting adjusted to the new currency. The

Japanese Cinema Essay Example | Topics and Well Written Essays - 2000 words

Japanese Cinema - Essay Example We have observed that in the 21st century that there has been a drastic increase in the rate of rape cases that are reported, sexual harassment, child molestation in Japan."Japanese film-makers were beginning to spice up their period stories with a dash of  sex and violence." Sigmund Freud a very famous psychologist believed that sex and violence are one of the requirements of every human. According to Freud if an individual involves insexual activities as a result of these movies it is quite legit as this is what we see and adapt. I completely disagree with his approach as exploitation due to any reason is not acceptable at any cost as it propagates the spread of social evils in the society. After the Second World War there was immense brutality and violence in Japan. It has been observed that the rules that deal with sexuality and violence in Japan are quite gender biased and the content is usually loaded with sexuality and violence causing indirect propagation of these sins."Not only was there more sex and violence, but the very manner in which they were made appealed to the young." The reason why such content is quite popular is because most of the people prefer watching such stuff as a source of entertainment but they do not realize that this leaves a profound impact on their mind resulting in creating desires within them. These desires cause them to opt for various ill means to overcome their temptations which force them to involve in these misdeeds. Today what I believe is the reason behind incorporating sex in the movies is because it sells.Like I mentioned earlier that people prefer watching stuff with bold content hence the reason to add such scenes is basically to attract the masses. At times it is quite relevant to add such stuff as it helps to bring about the depth of the characters and to show the level of intimacy between them. The issue has merely gained so much popularity is because today movies, TV shows novels etc. sell such content on regular basis. It has been recorded that in Japan when there is any form of sexual exploitation or any physical violence against women are considered to be standard form of entertainment which people thoroughly enjoy in movies which belong to the action or adventure genre. It is pretty astonishing that when it comes to Japan there is a vast variety of content available that deals with sexually provoking material but the rape rate tends to be tremendously low within the region. The the mes that involve sexual activities are quite common when it comes to Japanese legacy and they do not find any type of shame when associating themselves to it. There is a very controversial issue about pictorial representation of genetical areas. Japan does not allow to replicate/represent in pictorial form but does not prohibit the exploitation of such parts in movies, novels, TV shows etc. unlike the united states. The rape cases that take place in japan are majorly underreported and are usually done by underage individuals or gangs. Since the Japanese society is based on virtues like cooperation, order, duty etc. hence such activities are considered to be shameful for the families and majority of the time are not reported at all. This provokes those individuals who involve in such

Summary of Articles Heart of Darkness Essay Example for Free

Summary of Articles Heart of Darkness Essay Summary 5 Authoritative Articles â€Å"Racism in Heart of Darkness† Chinua Achebes article  An Image of Africa: Racism in Conrads Heart of Darkness' was basically written about the racism Achebe encountered in â€Å"Heart of Darkness†. Achebe criticizes Joseph Conrad for his racist stereotypes towards the continent and people of Africa. Achebe claims that Conrad spread the image that people imagined rather than portraying Africa in its true form. Africans were shown in â€Å"Heart of Darkness† as savages with no way to speak other than grunting. To Conrad, the Africans were not real characters in his story, but were backgrounds or props. Chinua Achebe responded with his own novel, â€Å"Things Fall Apart†: it was a contrast to Heart of Darkness and comparable works by other European writers. In â€Å"Things Fall Apart†, Achebe tells the story of Okonkwo, an Ibo man who is actually represented as a functioning person. Africans are represented as actual individuals with intelligence and a language, not just one massive conglomerate of dumb thoughtless natives. Their customs are not regarded as crazy and foreign, but as normal everyday life no different than the assortment of Western customs. And the land itself is described as a mix of towns and farms, not a foreign dangerous land. In basically every way, â€Å"Things Fall Apart† challenges typecasts set forward in Heart of Darkness. Overall it is a useful article that contains a good amount of information and I would recommend it to other students. Suzanne Fields wrote an article on the racism in â€Å"Heart of Darkness† she actually defended Conrad. She thought that although, he wrote about racist things he presented in the way that was the norm at the time. She stated that it wasn’t racist because that was how people perceived them not because he had anything against them racially. Suzanne felt that his observations can’t be called racist because that was only how he saw it. It was informative and I would tell other students to read the article because it shows Conrad’s book in a different light than most people do. It was a reputable article written on â€Å"Real Clear Politics† by an actual writer. When Dr. John Laflin wrote an article about the argument that the â€Å"Heart of Darkness† was racist he originally felt it seemed racist, but upon further analysis it isn’t actually racist. He thought when first reading seeing the ord ner and the way he described them as creatures made it seem racist. When he more closely examined the work he noticed that he actually referred to his own people as creatures which showed that all people has animalistic tendencies. He also noted that Conrad did in fact give the natives human qualities. Dr, Laflin showed both sides of the argument on the racism in â€Å"Heart of Darkness† and he made it an easy to read informative work. It definitely was a great article and a good resource. On British/UK fiction Jackie Patrick wrote an article about all aspects of â€Å"Heart of Darkness†. She mentions racism and says it wouldn’t be politically correct in today’s culture, but in Conrad’s time period it was normal and therefore not racist. She says although he alienates the natives from the whites he doesn’t consider them a different species and doesn’t actually see them as animals. She states that in today’s culture that the writing he put forth wouldn’t be acceptable, but in his time period the word ner was historically correct. Although the article was about all aspects of â€Å"Heart of Darkness† she still shows her take on the racism in â€Å"Heart of Darkness†. It was a useful article and was on a reputable site with an easy to use set up. Dr. Leon Litvack compared Achebe’s article on â€Å"Heart of Darkness† to Cederic Watt’s response to the reading. Cederic believed Achebe didn’t read deep enough in to the text and was naive in his understanding of the novel. While Achebe was completely up in arms about the racism portrayed in â€Å"Heart of Darkness† saying that the natives were shown as animals, Watts vehemently fought against those views saying that Conrad gave the natives human qualities. They showed restraint when faced with cannibalism and Kurtz did not show the same self-control. Watts contradicts everything that Achebe wrote and says that Achebe took things out of context and didn’t understand the novel. This article showed two completely different views and compared them giving good information from both sides of the arguments. It would be a good article for students to read because it basically has two articles in one and it compares them.

Essay --

NAME: Angela Ferreira †¨ STUDENT NUMBER: 543939†¨ COURSE: FVPA†¨ ASSIGNMENT: Assignment one Stuart Hall: the work of representation†¨ DUE DATE: 12 March TUTOR NAME: Amanda Mullins Plagiarism declaration†¨ I know that plagiarism is wrong. Plagiarism is to use another’s work and to pretend that it is one’s own.†¨ I have used the author date convention for citation and referencing. Each significant contribution to and quotation in this essay from the work or works of other people has been acknowledged through citation and reference.†¨ This essay is my own work.†¨ I have not submitted this work, or a substantial portion thereof, for assessment previously.†¨ I have not allowed and will not allow anyone to copy my work with the intention of passing it off as his or her own work.†¨ I have done the word processing and formatting of this assignment myself. I understand that the correct formatting is part of the mark for this assignment and that it is therefore wrong for another person to do it for me. —————Angela Ferreira—————————- Signature†¨Ã¢â‚¬ ¨12 March 2014 ———————————– Date Angela Ferreira Student number: 543939FVPA ASSIGNMENT 1 STUART HALL: THE WORK OF REPRESENTATION QUESTION 1 The approach that Saussure adopted to understanding representation as a sign system is called ‘The Semiotic Approach’ or ‘Semiotics’ (HALL 1997: pg 31) Question 2 The sign The sign can take different forms such as: sounds, images, objects and so on. However, signs only really become signs when we invest meaning into them (HALL 1997: pg34). The sign consists of multiple attribute... ...the keys’, in simple- history is recorded by the victorious and those on top will filter, give access to and withhold information of their choosing.  Reference list 1) Biko, S, 1988. Some African Culture Concepts. In P.H. Cotzee et al (eds) Philosophy From Africa. London: International Thompsen publishing 2) Fritz, F. 1937. Die Judenfrage im Unterricht. Nà ¼rnberg: Der Stà ¼rmer-Abteilung Buchverlag 3) Hall, S. (ed). 1997. Representation: Cultural Representations and Signifying practises. London: Thousand Oaks; New Delhi: Sage publications in association with Open University. 4)McLuhan , M. 1964. Understanding Media. McGraw-Hill: Canada 5) Peter Gabriel, Biko, 1980. real world music Ltd, EMI music publishing. Courtesy of PeterGabriel.com 6) The Concise Oxford Dictionary of current English, 1990. 8th edition. Walton street, New York, Oxford.

Criminal Justice: the Right Job for You

I am going to be talking about 3 key social issues contributing to the need for criminal justice practitioners and providing examples for each issue. I will also be explaining the role of the criminal justice professional in serving individual and societal needs. Lastly I will explain how key social issues impact the role of the criminal justice professional and provide 2-3 examples to support my position. One key social issue contributing to the need for criminal justice practitioners is prison crowding. Prison overcrowding is one of America's most serious criminal justice issues. The problem is because of insufficient jail and prison space, for which the solution is to build more jail and prison facilities. According to a 2008 study by the Pew Center on the States, the United States has the highest incarceration rate in the world, with one in 100 Americans under the supervision of the criminal justice system. Mandatory minimum sentences for drug crimes are a key factor in the high rate of incarceration. Another key issue contributing to the need for criminal justice practitioners is immigration. Immigration raises three significant, controversial issues in criminal justice. The first is the time and resources necessary to deport immigrants, whether they are documented or undocumented, and who have been convicted of crimes. The second is whether and to what extent local law enforcement resources should be used locating and removing undocumented immigrants. The third issue is the extent to which law enforcement emphasis should be on persons who transport and employ undocumented immigrants, rather than on the immigrants themselves. A major issue contributing to the need for criminal justice practitioners is poverty. You can read also  Justice System Position Paper The severity of poverty often goes hand in hand with the amount of crimes committed. Money is often reinvested from the open market to the black market to bring about high yet risky return in urban areas. Risks such as these are even higher when this activity is controlled by violent mob-type organizations and gangs, whose existences are structured around capitalizing on the poverty of others. Realistic and reachable role models are far and few between, if any exist at all, which causes the children of those who live in these areas to look up to more unsavory figures who are living the high life through low living. While living in poverty some people resort to crime to support their habits (drugs and/or alcohol) and/or support their families. Because of this crime rates go up, the amount of people incarcerated goes up, and the tax dollars go up to keep the prisons and jails running. The role of criminal justice professionals in serving individual and societal needs is very broad. There are many positions in the criminal justice field in many different areas with different tasks and responsibilities. Criminal justice professionals spend a lot of time resolving conflicts and negotiating with various parties inside and outside their organizations. They handle complaints, settle disputes, and resolve grievances and conflicts, usually by negotiating with several parties. Sometimes they perform this task in conjunction with another one, evaluating information to determine compliance, which requires them to review relevant information and use their individual judgment to determine whether events or processes comply with laws, regulations, or standards. Criminal Justice professionals oversee safety, gather information and documentation, provide testimony, and they are expected to regularly provide information to supervisors, co-workers, and subordinates to support their positions. One key social issue that impacts the role of criminal justice professionals is requiring more correctional officers or detention officers due to overcrowding. Yet there are more inmates in jails and prisons and there are not enough correctional officers or detention officers to staff the prisons and jails. In return the staff are overworked with mandatory overtime and compensated with extra days off instead of overtime pay. Immigration is another key social issue that impacts the role of criminal justice professionals. There is a continuous battle about controlling the border of Mexico and how to control it. There is much violence at the border from illegal immigrants and drug cartels. Border Patrol Agents lives are put at risk every day trying to protect the border because of this violence. There are many social issues contributing to the need for criminal justice practitioners and there always will be. The need will increase with time as will crime because of these social issues. There will always be a place in society for the criminal justice practitioner.

The Epidemic Of Hiv / Aids - 1013 Words

A story was told of a young woman who went to Miami Beach, Florida for spring break. She went out to a club, had some drinks and met a guy. Unfortunately, she later had unprotected sex with this guy she just met. The next morning went she woke up in her hotel room on her night table was a note which read, â€Å"I gave you AIDs last night.† Can you imagine how heartbroken this young girl felt, is my life over, what do I do now? HIV/AIDs is a plague that is unleashed through sexual contact or the body fluids of an infected individual. AIDS, Acquired Immune Deficiency Syndrome surfaced in late 1970, as doctors across the United States reported cases of an unusual disease among healthy homosexual men. In 1983 research in laboratories in the†¦show more content†¦The treatment of HIV/ AIDs is very complex and the medications are quite costly. If not treated HIV will eventually become full blown AIDs. Treatment begins in an infected individual when their CD4 T cell count begins to be affected by the infection. According to Dr. Linda Street, â€Å"CD4 T cell are a type of white blood cells that fight against infection in the body. They also indicate or measure the HIV virus in the body.† The higher the CD4 count the stronger the immune system. The appropriate medication regime is then mapped out for the individual’s care. HIV/AIDs medications are usually referred to as antiretroviral or combination therapy drugs. Antiretrovirals are need to treat the HIV within the body; it helps to rebuild a weaken immune system. Antiretrovirals often can repair the damages HIV infection has already caused in the body. If an individual is given two different antiretrovirals this is called combination therapy. This measure is often done because one form of antiretroviral will not be able to combat against the infection effectively. HIV medications are taken on a daily basis for the rest of the individual’s life. To date the FDA has approve the use of thirty one antiretrovirals to fight against HIV infection and improve the quality of life for infected persons. There are side effects associated with these antiretrovirals and combination therapy drugs. Some of the common side effects associated with HIV treatments are