When understanding the differences between cultures, there are a few key factors to consider. The first is that no two cultures are alike, and even within a culture, there can be vast regional differences. The second is that all cultures are constantly changing and evolving. The third is that, as an outsider looking in, it can be challenging to understand another culture’s nuances and subtleties (Rohm, 2010). Hence, this project section will explore the co-cultures within the United States of America (USA) and the United Arab Emirates (UAE) and how these regional differences play out in business interactions and social norms. We will also touch on how cultural intelligence can help bridge these gaps and build better relationships between people from different cultures.
There are many cultural differences between the United States and the United Arab Emirates. Understanding these differences is essential to communicate and working with people from both cultures effectively. For example, the United States is an essentially individualistic society, while the UAE is more communal. An individualistic culture implies that people are more independent and self-reliant (Rohm, 2010). On the other hand, a communal culture, which is dominant in the UAE, implies that people are more interdependent and reliant on others. This cultural difference between the two countries will likely cause tensions for the Johnson family as they attempt to integrate into both cultures. However, with patience and effort, they should be able to successfully manage these differences (Bechter & Grigoryants, 2011).
U.S. citizens tend to be more direct in their communication style, while Emiratis tend to be more indirect. For instance, Americans might say, “I need you to do this for me” Emiratis may say, “Can you help me with this?” This difference in communication style can lead to some initial misunderstandings, but it also creates opportunities for cultural learning (Bechter & Grigoryants, 2011). For example, one member of the Johnson family may learn about traditional Emirati wedding customs while another learns about American traditions. They will also be able to share their experiences and insights, strengthening their relationship (Rohm, 2010). Ultimately, the Johnson family will experience a unique co-culture in both countries. They will learn about the customs and values of Emiratis while also getting to know the culture and lifestyle of Americans. This will be an enriching experience that will help them better understand each other and their world.
The U.S. has a low power distance, meaning there is less hierarchy between people. The UAE has a high power distance, meaning there is a more apparent hierarchy between people. This difference will likely create a clash in the Johnson family’s co-culture, as equality is one of the most critical aspects of their co-culture (Rohm, 2010). The UAE also has a more traditional view of marriage, which the Johnson family may need to be more comfortable with. The U.S. also has a more liberal view of sex. At the same time, the UAE is more conservative than the U.S. This difference in views could lead to conflict between members of the Johnson family because they have been in the U.S., where they have been taught to view sex in a more liberal way (Alexander, 2021). Ultimately, the Johnson family will likely experience co-cultures that are different from their own, but they will still be able to get along. This difference can impact how decisions are made, and information is communicated.
There are also differences in how time is viewed between the two cultures. In the U.S., time is a scarce resource that needs to be managed efficiently. In the UAE, time is seen as more flexible, and there is less focus on punctuality. The Johnson family will also experience different food styles. The U.S. is known for its burgers and fries, while the UAE has a wide variety of delicious Arabic cuisine (UNESCO, 2009). The UAE also has a more relaxed attitude towards alcohol, while in the U.S., it is viewed as being more dangerous. The U.S. view of Islam is also different from the UAE. In the U.S., Muslims are often seen as a terrorist threat, while in UAE, they are viewed as a valuable part of society (Alexander, 2021). Therefore, Mr. Johnson and his family will experience various cultures in Dubai. They will have to learn about the customs and values of each culture to ensure that they can live comfortably and successfully in their new home.
The two cultures also have different views on dress codes. In the United States, people usually dress casually, whereas, in Dubai, people usually dress formally. The UAE is Muslim-dominated, while the United States is not (Alexander, 2021). The Muslims uphold moral values regarding dressing modestly, while the Americans uphold freedom of choice regarding clothing. Muslim women are required to cover their hair, and American women are not. They mostly dress in Hijab, while the U.S. natives enjoy freedom in the dressing of their choice. These differences will be an initial challenge for the Johnson family in terms of adapting to their new environment (Pervez, 2013). Since Mr. Marc’s wife, Karen wants to continue with the teaching profession in Dubai; she will have to adapt to the different work culture. Back in the US, Karen was free to dress as she pleased. In Dubai, she will have to dress conservatively and follow Muslim guidelines in terms of clothing (UNESCO, 2009). Mrs. Marc will also have to adjust to a new lifestyle as she is used to living in a bustling city with high-speed internet, shopping, and entertainment. The UAE is a slower-paced society where life revolves around religion and family.
There are also some critical regional differences between the United States and UAE that should be noted. The UAE is a much more collectivist society than the United States. This attribute implies that people in the UAE tend to emphasize group harmony and cooperation more than individualism and competition (Fornara, 2018). Also, the UAE is a much more conservative society than the United States. As a result, many cultural norms and behaviors considered commonplace in the U.S. – such as equal rights for women and acceptance of homosexuality – are not as prevalent in the UAE.
Further, the cost of living in the UAE is much higher than in the U.S. (UNESCO, 2009). This variance could be a significant obstacle for families relocating from the U.S. to the UAE. However, it is factual to argue that families who move between the United States and UAE will experience various cultural differences (Alexander, 2021). Most notably, they will likely experience different norms and values related to gender, sexuality, and social conservatism. While these differences may be challenging at first, ultimately Johnson family should be able to adapt and enjoy their new homes.
The two regions also experience different climatic and weather conditions, which would impact how the family lives. For example, in the United States, there is a temperate climate with plenty of rainfall. In Dubai, there is a desert climate with less rainfall and a lot more extremes in temperature. Summer temperatures in the UAE can reach 40 degrees Celsius in most countries (104 degrees Fahrenheit) (World Bank Climate Change Knowledge Portal, 2020). In the U.S., summertime temperatures are typically in the mid to high 30s Celsius (86-90 degrees Fahrenheit) (Climate Change Indicators: High and Low Temperatures | US EPA, 2016). Hence, before the Johnson family adapts to their new home, they will need to acclimate to the climate in UAE.
Another key difference is that the UAE has a much higher power distance than the United States. This discrepancy means that people in the UAE generally defer to those in positions of authority and expect them to make decisions for the group. In contrast, people in the United States tend to be more egalitarian and believe everyone should have a say in decision-making (Fornara, 2018). Consequently, the Johnson family may have to adjust to a different way of life in Dubai. For example, they might have to defer to local authorities when making decisions and be more patient when waiting for decisions to be made (UNESCO, 2009). Additionally, they may have to learn new customs and values to fit in. This culture shift could be difficult, but it would be worth it if the Johnson family could find a place that matched their lifestyle and personal values (Rohm, 2010).
Finally, there are also some notable differences in communication styles between the two cultures. Primarily, people in the UAE are more indirect communicators than those in the United States, which means that they may avoid conflict or confrontation by being less direct in their communications. The Emiratis may not always be as familiar with common American idioms and expressions, so they may have to employ different language techniques when communicating with Americans (U.S. Relations with the United Arab Emirates – United States Department of State, 2022). In particular, Emiratis may find it helpful to use idioms and expressions specific to their region. This way, they can be sure that their American counterparts understand them. Hence, the Johnson family’s experience in Dubai will likely differ from that of a family living in California (Kalliny et al., 2011). They will likely have to adjust their communication style to better match those around them. Additionally, they may need help understanding idiomatic expressions used in Emirati culture.
Generally, there are some notable differences between the cultures of the United States and the United Arab Emirates. For instance, people in the UAE are more collectivist, while people in the U.S. tend to be more individualistic (Fornara, 2018). There are also regional differences within each country. For example, southern states in the U.S. tend to be more traditional and religious than northern states, while in the UAE, Abu Dhabi is more conservative than Dubai (Kalliny et al., 2011). Despite these differences, there are many similarities between these two cultures. Both countries place high importance on family values and education. Arabic is spoken in both countries, although English is also widely spoken in the UAE. Moreover, both countries are known for their love of luxury goods and lavish lifestyles (Hanel et al., 2018).
Alexander, K. (2021). Beyond the Bedouin path: The evolution of Emirati national identity. Middle East Institute. https://www.mei.edu/publications/beyond-bedouin-path-evolution-emirati-national-identity
Bechter, C., & Grigoryants, O. (2011). Comparative National Cultural Perspective: Kazakhstan and the Middle East. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1812463
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Fornara, L. M. La. (2018). Islam’s (In)compatibility with the West?: Dress Code Restrictions in the Age of Feminism on JSTOR. Jstor.org. https://www.jstor.org/stable/10.2979/indjglolegstu.25.1.0463
Hanel, P. H. P., Maio, G. R., Soares, A. K. S., Vione, K. C., de Holanda Coelho, G. L., Gouveia, V. V., Patil, A. C., Kamble, S. V., & Manstead, A. S. R. (2018). Cross-Cultural Differences and Similarities in Human Value Instantiation. Frontiers in Psychology, 9. https://doi.org/10.3389/fpsyg.2018.00849
Kalliny, M., Saran, A., Ghanem, S., & Fisher, C. (2011). Cultural Differences and Similarities in Television Commercials in the Arab World and the United States. Journal of Global Marketing. https://www.tandfonline.com/doi/abs/10.1080/08911762.2011.545719
Rohm, F. W. (2010, September 12). American and Arab Cultural Lenses. Regent University. https://www.regent.edu/journal/inner-resources-for-leaders/american-vs-middle-eastern-culture-arab-culture/
U.S. Relations With United Arab Emirates – United States Department of State. (2022, November 2). United States Department of State. https://www.state.gov/u-s-relations-with-united-arab-emirates/
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Interest Rate And Inflation Free Writing Sample
There is widespread agreement on the fundamentals of monetary policy, providing a common foundation for debates about the precise measures that should be used in different circumstances. The central tenets of this agreement are that monetary policy should be implemented, that emphasis should be placed on price stability, and that higher or short-term interest rates will help curb inflation (Gabrielyan, 2019). Monetary economists must reject the monetary quantity theory if they are to participate in debates in which these assertions are assumed to be true. This school of thought holds that inflation rates may be managed by limiting the money supply increase. It is difficult to dismiss the overwhelming body of data showing a correlation between economic authorities, inflation, and interest rates. This evidence points inexorably toward the conclusion that faster money growth rates are linked to higher inflation and interest rates.
Historically, when monetarism was at its height, “monetary policy” meant “inflation control” because of this widespread understanding of the term. Inflation targeting has been used as a response to low inflation rather than as the strategic tool that initially caused low inflation. The expansion of inefficient practices and the absence of increasing commodity prices are other plausible causes for this phenomenon. Divergent expectations among economic agents are just one source of the difficulty gauging the predicted inflation rate (Taylor, 2019). However, the calculation and evaluation of future inflation are outside the scope of this study, so it is treated as if there were no controversy surrounding the concept.
However, the money supply can only have a limited effect on inflation because interest rates are modified predominantly to affect demand today. A rise or fall in inflation may result from changes in interest rate policy, which is thought to influence economic activity. Policymakers can only use interest rates to combat inflation now (Gabrielyan, 2019). By adjusting the policy rate of interest monthly, policymakers can make adjustments closer to the fine-tuning possible with other instruments. This paper aims to investigate, explain and reflect on the correlation between interest rates and inflation in economics.
There are two ways to look at a rise in overall prices within a certain period: inflation or a realistic price adjustment. Any correlation between the interest rate and the inflation rate will be lost if the ‘natural rate’ is unstable (Castillo-Martinez, Reis, Fazio, Ferreira, & Leonardi, 2019). There is a divide between entrepreneurs’ and savers’ ideal outcomes when the market interest rate is above or below the ‘natural rate. However, actual investment and savings are at the planned level. When the goal is to lower inflation, increasing the interest rate has the opposite impact and discourages spending. The currency’s price would certainly increase if interest rates were to rise (particularly if the increase was unexpected. There is no way to “catch up” and achieve the “ideal” pay or price level. New Keynesian Phillips Curve explains the relationship between inflation and GDP growth. As a recurrent phenomenon, inflation may be controlled by putting a cap on the growth of the money supply. The currency’s value would certainly increase if interest rates were to rise (particularly if the increase was unexpected) (Taylor, 2019). There is no way to “catch up” and achieve the “ideal” pay or price level.
Although the (post-Keynesian) spontaneous supply of money approach would effectively flip the direction of causation, it is reasonable to anticipate a link between the rate of fluctuation of the financial stock and that of prices, as was the case in the monetarist theory. That view is challenged by the post-Keynesian school of thought, which contends that the interest rate, not the stock of money, should be used as the policy tool since the latter is an endogenous quantity that the central bank cannot control (Castillo-Martinez, Reis, Fazio, Ferreira, & Leonardi, 2019). It will be a computed inflation rate (which might be negative) during the period in question if there are reasons causing prices to change (relative to the prior period). An increase in general price levels within a certain period may be interpreted in two different ways: as inflation or as a regular price adjustment.
However, Wicksell was worried about a chain reaction where a low (high) interest rate would cause more significant (lower) prices. According to Wicksell, the underlying general principle is: At each time and in whatever economic condition, there is always a particular interest rate, where the exchange value of the currency and the overall level of commodity prices have no propensity to vary (Özen, Özdemir, & Grima, 2020). Although Wicksell may be discussing inflation in this line, the ‘natural interest rate is thought to remain stable even when prices rise. The price level, however, consistently goes up or down. The ‘natural interest rate is compatible with constant inflation in the current models.
He considers the ‘natural rate of interest to be fluid. Any time the market rate deviates from the natural rate, like in Wicksell’s model, prices go up or down respectively. He suggests that if the market rate deviates from the ‘natural rate,’ prices will increase, and this pattern will be repeated in succeeding periods as long as the market rate deviates from the ‘natural rate (Özen, Özdemir, & Grima, 2020). As long as the gap between the natural rate’ and cost price persists, the amount of variation in price level is expected to be repeated, at least in theory. That is, the expectations enhanced Phillips curve unemployment and inflation have an inverse effect on one another.
Figure 1 Phillip curve
Any slight difference between the currency rate of interest and the ‘natural rate’ in Wicksell’s formulation would result in a continually increasing or falling price level. Therefore it was called the “knife edge” characteristic (Gabrielyan, 2019). It is essential to keep in mind that although the currency rate of interest tends to be sticky,
In the General Theory, Keynes explicitly opposed the concept of a unique ‘natural rate of interest, and in impact, argued that there is a normal interest rate relating to every level of quantity demanded that could bring investment and savings into balance (Gabrielyan, 2019). Keynes accepted the concept of the ‘natural rate of interest. Any equilibrium or ‘natural rate of interest would only be defined for a prescribed value of the fiscal stance, world demand, and set of ‘animal spirits influencing the investment. According to the models of the ‘new consensus in macroeconomics, there is no consistent ‘natural interest rate since it depends on many different variables. If the ‘natural rate’ constantly changes, any connection between the interest rate and the market price (or the inflation rate) will be obscured.
Even though the Wicksellian method stipulates roughly that a market interest rate above the ‘natural rate’ would result in reduced prices and possibly lower inflation, as investigated further below. A continuum of ‘natural rates’ is also implied by the neo-Wicksellian approach. The model shows that under policy rules of these sorts, equilibrium inflation relies purely upon the course of the difference between the natural rate of interest and the intercept term. They are showing the severity of central-bank policy (Tatliyer, 2017). If inflation were at the target rate, the output gap would be zero, and the difference between the lag in the interest rate and the lag in the ‘constant term would be zero. Therefore the corresponding Central Bank rate would equal the intercept term. ‘
However, the central bank controls fast nominal interest rates, and the actual variables that influence the normal rate of interest interact to determine the inflation rate. To the extent that the stance of fiscal policy is adjusted to account for exogenous fluctuations in the normal rate of interest caused by actual disruptions and is not adjusted in any other way, inflation will be stable; otherwise, it will fluctuate. The market equilibrium level is determined by the present and future actual interest rates and the present and future norms of monetary policy (Tatliyer, 2017). However, he notes that the conclusions of his study are ‘reminiscent of Wicksell’s recommendations.
Wicksell argued that policymakers’ inability to account for normal interest rate fluctuations accurately was the root cause of price fluctuation. When the current interest rate deviates from the ‘natural rate,’ as occurs in this theory when equilibrium is disrupted, there is a gap between investors’ and savers’ preferred outcomes. However, real investment and savings match the target investment level (Castillo-Martinez, Reis, Fazio, Ferreira, & Leonardi, 2019). Wanted investment is projected to be smaller than desired savings whenever the interest rate is above the ‘natural rate.’ Thus, even though the amount saved is less than the amount invested, the latter still takes place, and there remains, in fact, a savings gap.
Though it has been argued that the short end of the market is dominant when it is out of equilibrium, in this situation, investment is considered dominant. A simple explanation is that investment spending can only occur if banks are ready to make the required loans at the current interest rate. Consequently, banks play a pivotal role in this scenario by meeting the expected increased demand for loans to fund investment spending (Castillo-Martinez, Reis, Fazio, Ferreira, & Leonardi, 2019). Two things should be noted about this subject. To start, the idea that an interest rate below optimum would result in low savings and, by extension, low investment contradicts the loanable fund’s concept and an argument commonly given in the money demand literature.
Moreover, A higher interest rate to reduce inflation would have the opposite effect and reduce investment and capital creation under this theory. In this case, this would mean that the decrease in inflation is paid for by a heavy loss of investment and, by extension, productive capacity (Tatliyer, 2017). Second, if the investment is higher than savings, production and jobs will be higher than in a stable economy. The Phillips curve, which shows how an increase in economic activity predicts a rise in inflation, is Wicksell’s model one way this occurs.
For the time being, higher interest rates at specific points would result in lower prices at those points and then examine whether or not this would also result in reduced inflation. We build an introductory scenario to follow through on how the interest rate could affect inflation. The inflation rate is assumed to be, and it is assumed that the predicted inflation rate is also (Matheson, 2017). Maintaining the present nominal interest rate of r is anticipated to keep inflation at its current pace. As a result, the real interest rate r – is in line with a steady inflation rate and an actual price level that conforms to expectations. We provide a scenario that serves as a baseline.
The policy interest rate influences the economy in four ways. Lower interest rates influence demand since they increase the value of assets (after discounting for inflation). The wealth impact will remain if interest rates stay low (Castillo-Martinez, Reis, Fazio, Ferreira, & Leonardi, 2019). There is a level-to-level dynamic at play here, and we have yet to see how the demand level translates into inflation’s pace of change. The correlation between interest and currency exchange rates is seen in two ways.
First, a rise in interest rates (wildly unexpected) would likely boost the currency’s value. The rising inflation interest rate would have been affiliated with a deflationary exchange rate, leading to steadily increasing import prices (Matheson, 2017). The Phillips curve has no “catch-up” mechanism for getting wages or prices to the “optimal” level. Price changes are a reaction to other shifts in inflation and market activity, but they may also be the result of random shocks, errors, or expectations. The interest rate-demand relationship is somewhat tenuous, but in this context, we are more concerned with whether or not the demand is legitimate (the inflation connection). The New Keynesian Phillips Curve describes the correlation between inflation and GDP growth (NKPC). What follows is a breakdown of the main components of this strategy.
However, there is continuous inflation. Inflation of quantity demanded each firm’s unique product. The company figures in the possibility of future pricing changes in response to fluctuating marginal costs. Simply assuming that M is the markup of price P over estimated marginal costs, MC reveals this method’s important characteristic (Matheson, 2017). Prices seem cost-driven since nominal marginal costs change the ideal price level. Modest is the impact of interest rate shifts on inflation.
Inflation is a cyclical process, so it can be managed by limiting the money supply increase. By adjusting the policy rate of interest every month, policymakers can adjust closer to the fine-tuning possible with other instruments. Wicksell was worried about a chain reaction where a low (high) interest rate would cause more significant (lower) prices. When interest rates shift, it is expected that they will affect purchases and investments sensitive to interest rates. A rise in interest rates (wildly unexpected) would likely boost the currency’s value. If interest rates stay low, the wealth impact will remain. There is no “catch-up” mechanism for getting wages or prices to the “optimal” level. However, there is a continuous inflation of quantity demanded each firm’s unique product.
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Matheson, T. (2017). The Link Between Interest Rates and Inflation in Brazil. Retrieved from https://www.imf.org/external/np/blog/dialogo/091217.pdf
Özen, E., Özdemir, L., & Grima, S. (2020). The Relationship between the Exchange Rate, Interest Rate, and Inflation: The Case of Turkey. Scientific Annals of Economics and Business, 67(2), 259–275. https://doi.org/10.47743/saeb-2020-0014
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Taylor, J. B. (2019). Inflation targeting in high inflation emerging economies: lessons about rules and instruments. Journal of Applied Economics, 22(1), 102–115. https://doi.org/10.1080/15140326.2019.1565396
Cloud Security Essay Example For College
Cloud security is a set of measures and technologies used to secure data, applications, and services hosted in the cloud. The security of cloud computing systems is a significant concern as they are becoming more widely adopted. Companies rely on cloud-based services to store and manage sensitive data and must ensure that their systems are secure and resilient against threats (Tabrizchi & Kuchaki Rafsanjani, 2020). This essay will discuss cloud security from three perspectives: architecture, risks and threats, and vulnerabilities.
The architecture of a cloud system is an essential factor in determining its security. A cloud system comprises multiple components, including physical hardware, virtual machines, storage, and networks (Zheng et al., 2021). Organizations must consider each component’s security implications when designing their system. For example, physical hardware should be secure from tampering and unauthorized access. Virtual machines should also be secured from malicious actors and contain only the necessary components for the application or service. Network security is also essential, as it can protect the system from malicious attacks and unauthorized access. Therefore, proper configuration of the physical hardware, virtual machines, storage, and networks is essential for ensuring system security (Zheng et al., 2021). Security measures, such as encryption and access control, should be implemented to protect data from unauthorized access. A cloud system can be made secure and reliable by properly configuring the architecture and implementing security measures.
Risks and Threats
Cloud security is subject to a variety of risks and threats. These include malicious actors such as attackers, hackers, malicious insiders and natural disasters such as floods, fires, and power outages. Attackers use various methods to gain access to cloud systems, such as exploiting software vulnerabilities or using social engineering techniques (Bendiab et al., 2021). Hackers are often organized and well-funded, and they use sophisticated tools and techniques to gain access to cloud environments. Malicious insiders are individuals with legitimate access to cloud systems who use their access to harm the organization or steal data (Bendiab et al., 2021). Additionally, data stored in the cloud can be subject to denial of service attacks, disrupting the system and making it unavailable to users.
Thus, organizations must be aware of the potential for data breaches. As data is shared across multiple cloud services and devices, the risk of data breaches increases. Organizations should ensure that data is encrypted and access controls are in place to prevent unauthorized access. Organizations should also be aware of the potential for malicious insiders to abuse their access privileges (Saxena et al., 2020). They should implement access controls to prevent malicious insiders from accessing sensitive data or systems. Additionally, organizations should monitor user activity and implement two-factor authentication to reduce the risk of unauthorized access. Finally, organizations should ensure that their cloud infrastructure is updated regularly to address any security vulnerabilities. They should also engage in regular penetration testing to identify any security gaps in their cloud environment and ensure that their applications are secure.
Cloud systems are vulnerable to various threats, including malicious actors, natural disasters, and technical errors. Attackers can exploit these vulnerabilities to gain access to sensitive data or disrupt the system. Additionally, cloud systems can be subject to data leakage, which can occur when data is not correctly secured or accessed by unauthorized users (Sasubilli & Venkateswarlu, 2021). Organizations must take steps to identify and address potential vulnerabilities to ensure their systems’ security. To prevent malicious actors from compromising a cloud system, organizations should implement strong authentication, access control, and encryption measures (Sasubilli & Venkateswarlu, 2021). Additionally, organizations should deploy a comprehensive disaster recovery plan that includes regular backups and redundant data storage to mitigate the risk of natural disasters. Finally, to minimize the risk of technical errors, organizations should use automated monitoring tools, such as log analysis and system health checks, to detect potential problems before they cause outages.
Cloud security is an essential consideration for organizations that use cloud-based services. Organizations must consider the architecture of their systems, the risks and threats they face, and potential vulnerabilities when designing and implementing their cloud systems. By taking steps to mitigate the risks and threats, organizations can ensure that their systems are secure and resilient against malicious actors, natural disasters, and technical errors.
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Sasubilli, M. K., & Venkateswarlu, R. (2021, January). Cloud computing security challenges, threats and vulnerabilities. In 2021 6th International Conference on Inventive Computation Technologies (ICICT) (pp. 476-480). IEEE.
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Zheng, W., Muthu, B., & Kadry, S. N. (2021). Research on the design of analytical communication and information model for teaching resources with a cloud‐sharing platform. Computer Applications in Engineering Education, 29(2), 359–369.