Wednesday, October 30, 2019
Computer aided design in mechanical engineering Essay
Computer aided design in mechanical engineering - Essay Example This lowered the cost of production per unit and enabled the production of goods that were cheap and could be bought by the general population. Ever since, the manufacturing process has undergone tremendous improvements, which has led to improved efficiency and lowered the cost of production further. The improvements in the electronics and computer design have led to the development of computer-controlled control systems. These systems are advantageous over previously used systems as they can be easily manipulated to change the output. Computer Aided Manufacturing (CAM) refers to the use of Numerical Control (NC) software applications to create G-code, which are the instructions fed to numerical control machines to produce the required output. The use of CAM has led to the production of high quality products. CAM can also be defined as the process of producing a manufacturing plan for the design of tools and models, and coordinating the machines, and simulation. The plan is then carried out on the production line. For machines to operate, they require a form of control. There are various types of control mechanism available including manual control, automatic control and computer control. Machines used for mass production are often expected to produce to repeat similar operations precisely and fast. They should repeat these processes repeatedly. This requires automation to improve the speed of these processes. Common techniques that are used in the control systems of machines include electrical systems, pneumatic systems, and mechanical systems. For such systems, if a change is required, the procedures necessary to effect the change are long, tedious, and expensive. Advances in computer and electronic technologies have been employed to design systems that are more flexible. The use of these technologies leads to an increase in the efficiency of machinery produced. The products produced are of better quality and are cheaper (Elanchezhan, Sunder &
Monday, October 28, 2019
Purchasing Power Parity; Does It Exist Essay Example for Free
Purchasing Power Parity; Does It Exist Essay Introduction            The Purchasing Power Parity doctrine is perhaps one of the most controversial financial theories. Over the years, it has had its ebbs and flows, with proponents expositing several mathematical and statistical formula to strengthen the theory, while critics have severally condemned the utility of the theory; however, according to Belassa1 the doctrine has managed to survive nevertheless. Belassa argues that, though in somewhat ambiguous terms, the doctrine has been invoked as early as during the Napoleonic wars, the christening and explanation of the doctrine came from Prof. Gustav Cassel during the First World War and was popularized after the Second World War. The author further posits that interests in the theory tend to be invoked when existing exchanges rates were thought to be unrealistic and there was, therefore, a search for what is considered equilibrium rates2.            Perhaps one of the controversies that have built up around the Purchasing Power Parity starts with the issue of definition. Different authors tend to come up with their own definition (version) of the theory, and as a result, the theory has come to mean different things to different authors3. Before looking at some of the conceptualizations of the theory that has generated over time, it is pertinent, to first examine the theory as was professed by its author Prof. Gustav Cassel.            Bunting4  presents the first exposition of the theory in Cassels’s Money and Foreign Exchange after 1914, which he said was one of the earliest and best explanation of the theory by the author. Bunting explains that the concept of purchasing power parity was borne out of the need to establish what determined exchange rates in Europe after the era of gold standard was gone, that is, when national currencies were on inconvertible basis. On this basis, Cassel explains that considering the fact that the primary reason a country’s currency is in demand in a foreign country is the need to purchase goods produced in that country. Thus, when normal, unrestricted trade between [two] countries have been established over time, the exchange rates become fixed relative to the purchasing power of each currency domestically, and as long as this domestic purchasing power of the currencies do not change, nothing will happen to the exch ange rates5. Further, the theory states that when the currencies of these countries undergo inflation, the â€Å"the normal rate of exchange will be equal to the old rate multiplied by the quotient of the degree of inflation in the one country and in the other†6. While this explanation describes the basic skeleton of the theory, there have been several adjustments and modifications of the meanings and concept of the theory as several authors tend to strengthen or criticize it. Some of these adjustments to the meaning of the theory will suffice to buttress this point.            Everett and his colleagues7 attempting to measure currency strengths and weakness with the purchasing power parity concept, posited that as long as there is unrestricted trades, exchange rates of currencies tend to obey the purchasing power of the currencies. In this regard, they succinctly conceive the theory to mean thus regardless of how currencies are denominated, when adjusted for units; all currencies tend to command the same basket of goods8. This definition is similar to that adopted by Klein et al.9, who likened the purchasing power parity doctrine to the law of One Price with the explanation that an identical good (or service) would command the same price, measured in a given numeraire system, all over the trading world10.            Belassa, however, gave a more elaborate explanation of the purchasing power doctrine, differentiating between the relative and absolute interpretations of the theory. According to him, the absolute version of purchasing power parity theory argues that when purchasing power parities are calculated as a ratio of consumer goods prices for any pair of countries, the result reflects the equilibrium rates of exchange. On the other hand, the relative version of the theory asserts that, when compared to a period when equilibrium rates prevailed, changes in the relative prices of goods would indicate the necessary adjustments in exchange rates11. In a sense, one can infer from these definitions that the absolute version of the theory seeks to establish ‘equilibrium’ exchanges rates between any pair of countries based on purchasing power of their currencies, while the relative version intends to measure the over and undervaluation of currencies at any period in time12.            Despite the controversies surrounding the validity and utility of this theory, recently, authors have sought to clothe the doctrine in â€Å"the garments of respectability†and in this regard, several statistical materials have been presented that more accurately reflects the relationship between power of currencies and exchange rates, as conceived in the theory 13. The purpose of this paper is, therefore, to examine some of the literatures regarding the theory and perhaps to infer from these, the implications and future research possibilities of the theory. Literature Review  Balassa, Bela (1964). The Purchasing-Power Parity Doctrine: A Reappraisal.            Belassa14 apparently belongs to the group of authors that intend to strengthen the validity and utility of the purchasing power parity doctrine. He begins by first differentiating between absolute and relative versions of the theory, as explained above. He, however, asserted that the doctrine as postulated by Cassel tends towards the absolute version when he states that the rate of exchange between two countries will be determined by the quotient between the general levels of prices in the two countries15. Further, he explains that theory as invoked by another author indicates that the German mark was undervalued against the dollar, while the mark too was overvalued, and the Austrian shilling, Danish crown and Dutch guilder all undervalued, by extending the theory to the currencies of less developed countries, their currencies appears to be undervalued against the dollar. The author contends that the deviation from the calculated exchanges were too much to be caused by errors.            In the bid to correct the perceived weakness in the theory, Belassa created a new model for the theory by introducing non-traded goods (services) into the traditional two-country, two-commodity model of the theory. This model of the theory is strengthened by the following assumptions; that there is only one limiting factor – labor, and constant input coefficient. Also, under the assumption of constant marginal rates of transformation, countries with relative higher productivity levels will experience higher relative price of non-traded commodity compared to another. From these propositions, the author posit that income levels play a significant level in the calculation of purchase powers and that purchasing power parities will be more closely related to exchange rates when prices are expressed in terms of wage units.            From this equation, the author posit that if we were to assume production of traded goods relative to non-traded goods constitutes the major difference in international productivity, currencies of country with higher productivity will appear to be overvalued using purchasing power parity calculations. However, if per capita income was to be used as a representative of levels of productivity, the ratio of purchasing power parity to exchange rate will be an increasing reflection of income levels            In providing empirical confirmation the proposed relationship between purchasing power parity, exchange rates and income levels, the author argues thus: â€Å"if differences in tastes do not counterbalance differences in productive endowments, there will be a tendency in each country to consume commodities with lower relative prices in larger quantities†16 . The result is that the purchasing power of country II’s currency will be undervalued if country I’s consumption pattern is used as weights and overestimated if country II’s consumption is used. This is shown in the tables below.            The second table above shows the comparison of the cost of household services in the United States and Italy for 1950. The author argue that after conversion at exchange rates, domestic services in Italy seem to cost about one-fifth of their United states’ price, barber and beauty shops cost one-fourth, laundry and dry cleaning the same cost. In the same vein, purchasing power equivalents for household services was 391 lira at US weights and 165lira at Italian weights. These figures confirm, the author argues, that services (non-traded goods) cost more, relatively, in countries with higher income levels. Thus, it buttresses the relationship between purchasing power parity, exchange rates and income levels. Bunting, H. Frederick (1939). The Purchasing Power Parity Theory Reexamined.            Bunting18, while conceding that the purchase power parity doctrine has been severally criticized, further adds his criticism by, according to him, submitting the theory to an improved statistical test. The basis of the argument set forth in this paper is that though the author of the doctrine of purchasing power parity discussed some likely exceptions to the theory, which could account for the differences observed between actual exchanges rates and parity calculated rates, several other exceptions that render the theory impracticable exists.            The author proffered an elaborate definition (explanation) of the theory, as conceived by Cassel and the proposed relationship between purchasing power of currencies and their exchange rates. Further, he went on to summarize the major exceptions to the general rule into seven main points, as discussed by Cassel in his book; Money and Foreign Exchange After 1914. Accordingly, he explained that exchange rates are expected to deviate from the calculated rates if, domestic prices fluctuate in relation to one another, due to any series of factors; tariffs and/or shipping costs change in relation to those prevalent in the base year used for the calculation; obstructions to trade other tariffs and shipping costs becomes operational during the year under consideration; sudden devaluation of currency occurs during the transition period; the activities of speculators affect exchange rates; governments are in need of foreign exchange, for example to pay international debts; and the base year or general price index is not properly selected, as defects in the price index used or the base year could cause predictive error in calculated rates. In sum, Bunting posits that though these exceptions are many and powerful, they do not fully subsume factors/reasons responsible for differences in actual rates and calculated rates.            In this regard, the author asserts that the critique of the theory can be simplified by considering problems of price levels and direction of change. On the issue of price level, he argues that, problems with choice of base year and the commodities that should make up the price indices to be used in the calculation shows ambiguity in the theory. First, with base year determination, the author argues that Cassel’s contention that it is only if we know the exchange rate which represents a certain equilibrium that we can calculate the rate which represents the same equilibrium at an altered value of the monetary units of the two countries19 i.e. we can only calculate the equilibrium rate now if we know the rate at a particular ‘base’ year; is faulty because there is no such thing in international trades. He argues that the fact that international economic conditions do not persist for long means that a given base year can only be reasonably used to measure relative price changes for only a short period of time.            On the commodity prices to be included in the price index, Bunting also faults Cassel’s insistence that ‘general’ price index should be used, arguing that not all goods are traded internationally. Thus changes in commodities not traded internationally can, therefore, have no effect on foreign country’s evaluation of a country’s currency. Further, on the direction of change, the author argues that Cassel’s contention that â€Å"when currencies are not on a convertible specie standard it is parities which determine exchange rates†20  tend to overlook the possibility that the direction of change could be the reverse i.e. price levels may be caused by changes in exchange rates. Thus, while Cassel concedes that the actions of speculators could cause changes in exchange rates without necessary price changes; there are several other factors that are capable of inducing change in exchange rates. Bunting mentions the following factors; Government monetary policies – alterations of central bank rates, stabilization funds, international government loans; Private international loans and special considerations such as large corporations transferring their capital holdings from one country to the other to protect their profits, or tourist expenditures and immigration remittances, which both involve the purchase of foreign currencies with no regard for the purchasing power of the currencies involved.            Subjecting the purchasing power parity theory to statistical tests, the author presents his result in the graphical form shown below. In the charts below, Franco-American exchange rates were compared for 1920s and 1930s. The solid line represents calculated rates while the broken line labeled no lag represents actual rates. The differences exhibited between the actual and calculated rates for the statistical test constitute discrepancy in the theory. The 1month, 2months and 3months lag periods were allowed in the assumption that time should be allowed for changes in purchasing power parities to effect a change in exchange rate, thus the 1-3months lag should show more correlation with the actual rates, however, this was not the case. The author concludes that proponents of the theory should simply recognize the fact that the theory as it stand is defective and needs to be refined. The authors of this paper proffered answers to criticisms of the validity and utility of the purchasing power parity theory, and especially to the claims that though the theory worked relatively in the 1920s, it failed in the 1970s by some other authors. Davutyan and John21 contend that possible reasons for the apparent failure of the purchasing power theory to predict exchange rates accurately when figures from the 1970s are used could include the fact that relatively to 1920; monetary policies were more coordinated in the 1970s. They therefore, assert that it is the coordination of monetary policies, not the failure of the purchasing power parity theory that causes conventional statistical tests to reject the validity of purchasing power parity for the 1970s. Providing evidence to support their claims, the authors posit that if we are to assume that there are no obstructions to trade, i.e. all goods are tradable and effective arbitrage refers to the relative version of the purchasing power theory, as explained by Bellassa22 above. In consolidating their argument, the authors contend that purchasing power parity tend to fail under two instances: when arbitragers fail to respond to profitable opportunities or when transaction costs and other impediments inhibit trades. However, they contend that the first factor might not be feasible, so the latter appears to be more important. Elucidating on the second factor, Davutyan and John  posit that under the assumption of zero transaction costs all goods are tradable, when this assumption is listed, goods could be divided into two categories, tradables with zero transaction costs and non-tradables with high transaction costs. Thus, in the absence of transaction costs, arbitrage keeps relative prices of tradable goods across countries equal, but this is not the case between non-tradables as well as between tradables and non-tradables. Therefore, when there are economic shocks, the equation above holds tradables but not for non-tradables. Furthermore, the authors contend that even with tradables, while the zero transaction costs is convenient in theory, it is not always so in reality. The fact is that relative transaction cost differs between countries and this too, tends to introduce errors into the purchasing power parity calculation, as with the non-tradables. Another source of error in purchasing power calculation, according to the authors, is unequal weights used for calculation. They argue that in the second equation above, the weights in the price index are the same for both countries; however, using CPI or wholesale price index or GNP deflators would violate the requirement for similar weights and could introduce error into the measurement. To support their claims, the authors present the data in the table below, where R2 and estimate of the regression coefficient supports the argument that purchasing power parity works.            Everett24 and his colleagues presented a practical and working model of the purchasing power parity theory and argued that by using this model of the theory to calculate exchange rates, currency strengths and weakness can be measured. Defining purchasing power parity, the authors contend that the primary concept of the theory is that when the forces of price mechanism are unrestricted, exchange rates tend to conform to the purchasing power of currencies. Thus, instead of price levels adjusting to exchange rates, the reverse is the case. In this regard, the authors assert that while this general idea of the theory applies to a world of floating exchange rates, their model of the purchasing power theory can be adapted to a variety of exchange rate regimes, such as managed floats, crawling pegs and fixed exchange rates.            In explaining this model of the purchasing power parity, the authors refer to what they called the parity chart. As shown below, the chart is derived thus: the horizontal axis measures time from a chosen time of origin – the base year; while the vertical axis measures two things, one, the difference in the percentage of the purchasing power of currencies and two, the percentage change in the actual exchange rate from the base year. While the dotted line represents the actual/observed exchange rates, the parity (solid) line represents parity (calculated) exchange rates over time.            Using the two country model to explain the ‘parity chart’, the authors explain that if we assume that there are no restrictions to trade, and the perfect base time, under this scenario, if the change in the purchasing power of country A’s currency differs from that of country B, the parity line in the chart above will have a positive or negative slope, depending on the sign of the difference between the purchasing power of the currencies under consideration. Further, if actual exchange rates were to be plotted on the same chart, the slope should conform closely to that of the parity line. What can be inferred from this explanation is that the parity line in the chart closely reflects the expected change in exchange rates that should follow changes in the purchasing power of country currencies.            To support their claims that the parity chart can be used to measure changes in exchange rates under any type of exchange rate regime, the authors presented empirical results of several currencies with different exchange rate regimes, these included the German mark-a more or less freely floating exchange rate; Spanish peseta-a strictly managed exchange rate; Colombian peso-a crawling peg currency; and South African rand-a fixed exchange rate25. The result for the German mark is presented below:            The authors explain that the vertical axis measures the percentage deviation from the calculated rate. While the line representing the inflation factor shows a fairly steady rise, in line with the well known fact of relatively lower rates of increases in the West German price level compared with most other countries, the line representing the exchange rate, on the other hand, shows no apparent trend, reflecting the fact that the exchange rates of West Germanys trading partners vis-à -vis the dollar on a trade-weighted basis may have moved in opposite directions. These two factors when compounded, yields the parity line.            After presenting empirical results for all the four representative countries listed above, the authors concluded that an indepth examination of the parity chart and line indicates that the parity line provides an effective and informed judgment about future currency movements. Further, that if â€Å"the parity rate diverges from the actual rate, this indicates that the currency is presently either over- or undervalued, and will therefore have to adjust, the longer the persistence of such a divergence, the more likely that an adjustment will occur soon†26.            This is another study that attempted to strengthen the validity and utility of the purchasing power parity doctrine. These authors, in this study, posited that purchasing power parity could be used to derive a more effective simulation or projection of world economy. Admitting that the theory has come to mean different thing to different writers, the authors adopted the law of ‘one price’ definition of the theory, which explains that an â€Å"identical good or service would command the same price, measured in a given numeraire system, all over the trading world†27.            The authors further state that though there are several controversial issues about the theory, such as what category of goods should be included in the calculation or what time should be used as origin/base in the calculation, they assert that any detailed exchange rate modeling system should obey the purchasing power parity rule, in the long run. Statistically estimating the movement of exchange rates in relation to the purchasing power parity principle for the 1970s, the authors presented the following formula:            According to the authors, this formula states that the â€Å"U.S. dollar terms, should have a common rate of change across all countries, namely, the U.S. rate of change of export prices†28. Thus, if the exchange rates during this time, had moved in accordance with the principle of purchasing power parity, then the estimates of: would be consistent with the hypothesis of purchasing power parity. Where a =O; b = -1.0; c = +1.0; eit =additive random error. Scatter diagrams of the data points of the two equations above are shown below. Conclusively, the authors assert that judging by these statistics, all the regression estimates in the charts above passed significance tests. Thus, it could be deduced that the relationship between purchasing power of currencies and the actual exchange rates was tightest for members of the EMS, but slightly less tight when the UK is included. Based on this evidence, the authors believe that their contention that, on average, purchasing power parity movements approximately reflects actual exchange rates in the 1970s has been adequately justified, and as a result, it could be generalized that calculations of purchasing power parity could be used in predicting movements of exchange rates.            John29 proffered answers to criticisms concerning the predictive errors observed with exchange rates calculated from purchasing power parity. They observed that studies carried out by several authors indicate that for several countries, the predictive error of purchasing power parity during the 1970s followed what they referred to as ‘random walk’ i.e. whatever the deviation between the parity rate and actual rates observed this month, next month it is likely to increase as decrease.            In this regard, the author argued that the basic idea behind the purchasing power parity doctrine is that in the long run, the differences between the parity rates and the actual exchange rates tend to disappear and the tow rates are equated. They argue that, though economic shocks, in whatever guise, could, in the short term, drive the actual rate from the parity rates, but in the absence of new shocks, the price mechanism tend to equate the tow rates, in the long run. Based on this argument, the author contend that predictive errors for purchasing power parity should not perform a random walk, instead there should be a gradual decline or increase towards the actual rate.            Supporting their claims that predictive errors in purchasing power parity does not perform random walk in the long run; the authors presented the results of empirical studies of several countries using data for over seventy years.            Following the same path with paper reviewed above, Yeager30 also sought to strengthen the validity and utility of the purchasing power parity theory. He started off his argument with the basic assumption that people primarily value currencies for what could be bought with it, based on this assumption, he argues, it is safe to presume that in an unrestricted market, people will tend to exchange such currencies for their relative purchasing powers. The author admits that the theory, in its basic form, as stated above, is loose and ambiguous, he posits, however, that the theory performs tow main functions. First, the theory gives an expression of what the equilibrium exchange rates should be for currencies, however crude this rate appears. And two, the theory act like a stabilizing force for exchange rates. Explaining this second function, he assert that when for any reason, actual exchange rates deviate from the equilibrium rates, the theory describes pressures at work tending to check and reverse this random departures from the range of equilibrium rates.            The author provides this example to buttress the point made above about the stabilizing powers of the parity theory:            Let us suppose, for example, that prevailing exchange rates unmistakably           undervalue the British pound in relation to the purchasing powers of the pound    and of foreign currencies. Foreigners -say Americans- will offer dollars for      pounds to buy British goods at bargain prices. Britons will offer relatively few pounds for dollars to buy, American goods at their apparently high prices.           Unmatched attempts to sell dollars and buy pounds will bid the exchange rate toward the equilibrium level.            In the same light, the author evaluates some of the numerous objections raised about the theory and posits that in most of these objections, the stabilizing pressures aspect of the theory has been mostly ignored. In sum, the author concludes that most of the discrepancies observed in purchasing power parity rates are due to â€Å"inappropriate base periods; disequilibrium exchange rates (including base-period rates), often imposed by official pegging; tariffs, quotas, and other interferences with trade, payments, and exchange rates.31†           Wyman32  extends the utility of the purchasing power parity further, by applying the concept of the doctrine to calculating gains or losses incurred by holding foreign items, such as foreign currencies or goods. Relating purchasing power parity to currency changes, the author explain that purchasing power is related to the exchange rates of currencies, in that, differential rates of inflation between, say the United States and a foreign country, influences the exchange rates between the monetary units if each country. Putting this definition into an equation, he states that the calculation of the purchasing power parity can be illustrated thus: If the exchange rate between the United States and a foreign country is 20FC = $1 where FC denotes a unit of ‘foreign currency’, if during the year, the US price level index changed from 100 to 110 and that of the foreign country changed from 100 to 120, the purchasing power parity rate can be calculated by determining an adjustment factor that would be applied to the exchange rate. The adjustment factor is calculated as:  Èt à · Øt = the adjustment factor for period t or (120,100t 110,100) = 1.0909 where Èt =  the price-level ratio in the United States defined as the general price-level index at            the end of period t divided by the general price-level index at the beginning of         period t Øt = the price-level ratio in the foreign country defined as the general price-level index at         the end of period t divided by the general price-level index at the beginning of         period t            Explaining this formula, the author assert that when the adjustment factor is applied to the exchange rate, for the example above, result is FC 20x 1.0909 = FC 21.8182=$1. So, if the actual exchange rate at the end of the time t is at the calculated rate of FC 21.8182 to $1, investors in either country will maintain their purchasing power relative to each other, however, if for example, the exchange rate was to be at FC 22 to $1, FC would have depreciated more than is necessary to maintain the purchasing power parity, and so US investors in need of the foreign currency would have exchanged the currency at a loss. The author went on to establish a multiequation system that can be employed in analyzing potential gains and losses in foreign exchange, based on the purchasing power parity concept. Ruble, L. William (1961). A Comparison of the Parity Ratio with Agricultural Net Income Measures: 1910-1958. Journal of Farm Economics, 43(1):101-112. And Stine O. C. (1946). Parity Prices. Journal of Farm Economics, 28(1):301-305.            These two works covered a slight different aspect of purchasing power parity. They were focused on the purchasing power of farmers, comparing prices changes in farm and non-farm products, and thus, what farmers are paid for their farm products and what they have to pay to buy non-farm products. Stine33  explains that in the years after the first World War, when the purchasing power parity concept was birthed and first applied as measurement in of changes in purchasing power, marked changes in general price levels was observed, as expected, however, it was also observed that farm products declined more rapidly and farther compared to non farm products. As a result, what farmers had to pay for products they buy was considerably different from what they earn from the sells of farm products.            Ruble34  supporting this line of argument, argues that since the prices received by farmers and prices paid by farmers affect the livelihood and wellbeing of the farming family, the parity ratio provides a good indicator of the standard of living of farmers. Further, contends that the level of the parity ratio is expected to give good indication of the following methods of estimating the standard of living of farmers: Net money income per capita, per farm, or per worker. Net real income per capita, per farm, or per worker. Income of farmers compared to income of non-farmers on a per      capita or per worker basis (the parity income concept)      However, data and result of empirical studies was presented to measure the relation between the parity ratio and the well being of farmers suggests that the parity ratio might not indeed properly reflects the general well being of farmers, if the well-being of farmers in general is expressed by the per capita, per farm, or per worker net income, real or money. In arriving at the figures in the table, the parity ratio was correlated separately with the per capita net agricultural income of the farm population, the net income of farm operators from farming per farm, and the net income of farm workers from farming per worker, income from all sources, and deflated by the index of prices paid by farmers for family-living items (1917-19 = 100) Summary            There is no denying the fact that the Purchasing Power Parity doctrine is an important theory in the financial world. It is true that a lot of controversies have been generated about its validity and utility, but it is also true that several authors have been able to categorically prove its validity, and more importantly, utility, in an array of fields. Just as the theory has come to mean different thing to different authors, it has also carved for itself, different functions, depending on the perspective one adopts. It is not surprising, therefore, that authors have been able to apply the doctrine to a number of endeavors, as seen in the reviews above.      In its most basic form, the concept argues that people primarily need currencies of other countries for the purpose of buying goods/commodities of that country. Therefore, people will only be prepared to exchange currencies for its relative worth. Here lies the relationship between purchasing power parity and the exchange rates of currencies i.e. when it is suspected that a currency is under or over valued, market forces will tend to force the rate back to the equilibrium level. Equilibrium here describes the rate achieved after trades have occurred between two countries, uninterrupted, for a certain period of time and a common exchange rate has been established, as a result.      From this very basic understanding of the theory, as proposed by the author Prof. Gustav Cassel, several modifications, adjustments, and extension of the theory have been proposed and proved. For example, Bellasa fine tuned the predictive value of the theory by modifying the basic two-country, two-commodity model, to include considerations for non-traded goods (services) and the per capita income of each country, which, he argues, play crucial role in the purchasing power of currencies. Klein and his colleagues  modified the theory and employed it in simulating/projecting changes in world economy; Everett and others , also modified the theory and proved it to be useful in appraising strengths and weaknesses of countries’ currencies; while John  showed that the predictive errors in rates calculated with the purchasing power parity concept could be as a result of         faults inherent in the calculation methods and data.      From the foregoing, one can only infer that purchasing power parity is still an important financial concept. Although, further academic and research efforts should be geared towards resolving some of the objections raised against the theory. It is obvious that criticism of the theory will further help to strengthen it, in the future, as we have seen it done in the past. Most of the objections raised have been somehow addressed, even if not completely resolved. One can, thus conveniently conclude that with time, the theory might be better fine tuned and become more effective at explaining and predicting exchange rates of currencies. Endnotes Balassa, Bela (1964). The Purchasing-Power Parity Doctrine: A Reappraisal. Ibid p.584 Klein, R. Lawrence, Shahrokh Fardoust and Victor Filatov (1981). Purchasing Power Parity in Medium Term Simulation of the World Economy; Balassa, Bela (1964) Bunting, H. Frederick (1939). The Purchasing Power Parity Theory Reexamined Bunting (1939) provided almost a word-for-word definition and explanation of the theory as postulated by Cassell. The author gives a better idea of the original theory Ibid p.283 Everett, M. Robert, Abraham M. George and Aryeh Blumberg (1980). Appraising Currency Strengths and Weaknesses: An Operational Model for Calculating Parity Exchange Rates. Ibid p.80 Klein et al., 1981 Ibid p.486 Belassa, 1964 p.584-585 This is personal opinion based on the definition of the absolute and relative PPP proffered by Bellasa, 1964 Ibid Ibid Belassa, 1964 p.585 quoting Cassel in his book Money and Foreign Exchange After 1914. Ibid  Ibid p.587 Bunting, H. Frederick (1939). The Purchasing Power Parity Theory Reexamined. Bunting, 1939 p.285 quoting Cassel in his book Money and Foreign Exchange After 1914. Bunting, 1939 p.288 Davutyan, Nurhan and John Pippenger (1985). Purchasing Power Parity Did Not Collapse During the 1970s Balassa, 1964 Davutyan and John, 1985 p.1151 Everett, M. Robert, Abraham M. George and Aryeh Blumberg (1980). Appraising Currency Strengths and Weaknesses: An Operational Model for Calculating Parity Exchange Rates. Ibid p.84 Ibid p.90 Klein, R. Lawrence, Shahrokh Fardoust and Victor Filatov (1981). Purchasing Power Parity in Medium Term Simulation of the World Economy. p.486 Ibid p.487 John, Pippenger (1982). Purchasing Power Parity: An Analysis of Predictive Error Yeager, B. Leland (1958). A Rehabilitation of Purchasing-Power Parity Ibid p.529 Wyman E. Harold (1976). Analysis of Gains or Losses from Foreign Monetary Items: An Application of Purchasing Power Parity Concepts. Stine O. C. (1946). Parity Prices Ruble, L. William (1961). A Comparison of the Parity Ratio with Agricultural Net Income Measures Bibliography Balassa, Bela (1964). The Purchasing-Power Parity Doctrine: A Reappraisal. The Journal         of Political Economy, Vol. 72:6 pp. 584-596. Bunting, H. Frederick (1939). The Purchasing Power Parity Theory Reexamined.         Southern Economic Journal, Vol. 5:3. pp. 282-301. Davutyan, Nurhan and John Pippenger (1985). Purchasing Power Parity Did Not           Collapse During the 1970s. The American Economic Review, Vol. 75:5.          pp.1151-1158. Everett, M. Robert, Abraham M. George and Aryeh Blumberg (1980). Appraising         Currency Strengths and Weaknesses: An Operational Model for Calculating    Parity Exchange Rates. Journal of International Business Studies, Vol. 11:2. pp.       80-91. John, Pippenger (1982). Purchasing Power Parity: An Analysis of Predictive Error. The Canadian Journal of Economics, Vol. 15:2, pp. 335-346. Klein, R. Lawrence, Shahrokh Fardoust and Victor Filatov (1981). Purchasing Power    Parity in Medium Term Simulation of the World Economy. The Scandinavian         Journal of Economics, Vol. 83: 4 pp. 479-496. Ruble, L. William (1961). A Comparison of the Parity Ratio with Agricultural Net        Income Measures: 1910-1958. Journal of Farm Economics, Vol. 43:1. pp. 101-         112. Stine O. C. (1946). Parity Prices. Journal of Farm Economics, Vol.28:1. pp.301-305. Wyman E. Harold (1976). Analysis of Gains or Losses from Foreign Monetary Items: An         Application of Purchasing Power Parity Concepts. The Accounting Review, Vol.           51: 3. pp. 545-558. Yeager, B. Leland (1958). A Rehabilitation of Purchasing-Power Parity. The Journal of           Political Economy, Vol. 66:6, pp. 516-530.
Saturday, October 26, 2019
Paideia, Schole, Paidia: Then and Now :: Philosophy Philosophical Essays
Paideia, Schole, Paidia: Then and Now ABSTRACT: Aristotle centers the citizen’s education (paideia) on leisure (schole). Its features, especially of play (paidia), are evoked to remedy deficiencies in three contemporary philosophies of leisure: classical, critical and communitarian. Paideia, the citizen's education, is extensively tied up with liberal studies in most of Aristotle's discussion in book eight of the Politics. But this tie-up intellectualizes the leisure at their root in the first few chapters of the book. While my undergraduates in leisure studies always need to be drawn up from their sole focus upon sport, perhaps my philosophy colleagues need relief to de-intellectualize paideia back down to schole. There are dimensions of Aristotle's comments which are remedial to contemporary streams of leisure theory. This paper will recapitulate his comments, then apply them to three types of contemporary theory. His first chapter justifies the reason why politics is not meddling when it takes an interest in the formation of its citizens. This is because any constitution will not be workable unless citizens' characters, their virtues, are compatible with it. His second chapter opens what should be taught. Without doubt, useful things should be taught. But not all useful things: useful things which "vulgarize" the citizen should not. To vulgarize is to make one less fit for the practice of virtue, the city's concern. Any occupation, art or science can vulgarize. An occupation will, if it is paid employment; that degrades the mind by absorbing it. An art will, if it deforms the body; the Spartans did that, by their excruciating and savage routines. And a science will, if it is pursued to its perfection of detail. Our bywords about workaholic compulsions, steroid stars, and nerdy scholars, show that we experience the three instances he speaks of, even if paradoxes appear that do not trouble him. Why learn anything at all that is useful, if we can't earn a living at it? How is it virtuous to be never the master but ever a dabbler? Is it not inherent in science to drive us to its ultimate details, one way toward its principles and another toward its applications? These three are more localized problems, however, than his fourth limitation on useful education. That the very same activity is first excluded from the teachable useful, and then is re-included merely by a change in its object, touches our Aristotle with an anachronistic subjectivity, whereby the subject constitutes whatever identity the object has.
Thursday, October 24, 2019
Arguments For ‘Invitation To Treat And An Offer
The English Law on the formation of contracts generally requires there to be an offer and a matching acceptance. The offer must set out and refer to the object for sale and all the important terms of the contract. The acceptance must indicate agreement to all the terms of contract. If it does not do so, the acceptance will be regarded as a counter-offer which is capable of rejecting the original offer, thereby making it incapable of acceptance later (Hyde v Wrench (1840) CC 49 ER 132).There are two offers, the one made by Susan through the advertisement on the 1st of March and that of Alice in response to the initial offer on the 27th of March that amounted to a counter-offer. There is also the issue of the application of the postal rule and its limitations in the case of Tahir, the issue of instantaneous communications and when the revocation of an offer becomes effective in the case of Emma and its rules.In Tahir’s case, the letter and enclosed Cheque he sent on the 27th of March would have been the most preferable choice of acceptance because the general postal rule would have applied easily which allows the effectiveness of a posted acceptance to start right from when it was posted, so as to enhance the effectiveness of businesses, if they can start working farther on the assumption that there is a binding contract between both parties as in Adams v Lindsell (1818).But, the fact that Susan defined the terms of the contract by stating the modes of acceptance and payment that was acceptable, which does not include a letter or a cheque makes the postal rule ineffective on Tahir’s letter, as it is unacceptable. Although, sending a letter as a form of acceptance was reasonable; there is no binding contract between Susan and Tahir because of the definition of terms and conditions of the offer. Alice’s letter on the 27th of March is a counter-offer which is capable of rejecting the original offer.If Alice had not altered the terms of the offer , which resulted in an offer of her own, The letter would have been an acceptance, and the usual rule when a letter of acceptance is sent in reply to an offer is that the acceptance takes effect on posting, ensuring there is a binding contract. However, this postal rule has no application here, since; the case of Holwell securities v Hughes (1974) makes it clear that the rule can be avoided by a specific request in the terms of the offer according to LAWTON L. J â€Å"Now in this case, the â€Å"notice in writing†was to be one â€Å"to the intending vendor.†It was to be an intimation to him that the grantee had exercised the option: he was the one who was to be fixed with the information contained in the writing. He never was, because the letter carrying the information went astray. The plaintiffs were unable to do what the agreement said they were to do, namely, fix the defendant with knowledge that they had decided to buy his property. If this construction of the o ption clause is correct, there is no room for the application of any rule of law relating to the acceptance of offers by posting letters since the option agreement stipulated what had to be done to exercise the option.On this ground alone I would dismiss the appeal†. Considering, the email Alice sent on the 28th of March, which would have been the most suitable form of acceptance as at that time, although it was sent on Friday, it was out of office hours and so Susan is unable to read it, therefore the acceptance was not communicated as the instantaneous communications rules requires as in Entores v Miles East Corp. It is generally agreed that the instantaneous communications will cover the email, and so the time of communication, rather than the time of sending, is the relevant time.Applying this rule to Alice’s email, the email has no effect because as at the time it was communicated the offer was no longer capable of acceptance. Alice has no binding contract with Sus an because her letter was a counter-offer and the email was communicated when the offer was already withdrawn. The case law on revocation of offers establishes that offers can be withdrawn at any time prior to acceptance (Payne v Cave (1789)), provided that the withdrawal is communicated to the offeree.The latter point is reinforced by the decision in Byrne v Van Tienhoven (1880), which concerns the revocation of an offer by telegram. Applying this to the dealings of Emma and Susan, If Susan received Emma’s email before the revocation was published in the papers, the revocation will be ineffective, and there will be a binding contract. This assumes, however, that the advert is deemed to be communicated to Emma as soon as it was published and available to read on the 29th of March, because the information in the advert is sufficient notification to Emma that Susan has withdrawn the offer.Although, Emma may want to argue that the offer was open until the 31st of March, there fore they have a binding contract. This is not so, using the case of Routledge v Grant (1828), in which it was held that a promise of this kind will not generally be binding. The reason is that the promise will generally not have provided any consideration for the promise.If Susan had been given any amount of money or valuable in return for keeping the offer open until the 31st of march, then consideration would have been provided, and she would be bounded to her promise but in the absence of such she is free to withdraw the offer anytime. Therefore, Emma’s email has no effect because, she bears the responsibility of reading the revocation in the paper as Susan has taken the most reasonable form of communicating the revocation in this case. In conclusion, there is no binding contract between Susan and the other parties.
Wednesday, October 23, 2019
Australia’s Foreign Relations to 1945
Introduction Australia’s presence and participation in global affairs have been commendable over decades now. Australia officially referred to as commonwealth of Australia is in the southern hemisphere. Australia comprises of the mainland of Australian continent, Tasmania Island and other smaller islands in the pacific and Indian oceans. Like other countries, Australia has undergone numerous milestones over the past centuries which have influenced its present developments. Australian foreign relations with other countries including the US, UK and other Asian countries are of great importance are.Having interacted with these countries at different times of history, Australia has been able to share common policies and interests with these nations. Firstly, the UK which colonized Australia since the 18th century had great influence on its current foreign policy. The trade relations between Australia and America as well as the joint participation in WW II influenced its foreign po licy and relations. These interactions are also evident with other Asian countries like New Zealand, Japan and China which have shared common experiences in war as well as trade.This essay will discuss the importance of Britain, Asia, and the US in shaping Australian foreign policy since the 1788 settlement to WW II (1945). Australia has a rich and appealing foreign policy which makes it a trusted ally to many nations across the globe. The foreign policy of Australia includes various separated but inter-related policies in the fields of trade, security, defence, foreign aid and international commitments. Being a signatory to different treaties in the UN, Australia has been steadfast in attending to issues of global interest.In regards to trade and foreign aid, Australia is always in the forefront in fostering the spirit of globalisation. It is however notable that the foreign policies and relations of Australia are fast in upholding and promoting the interests of Australia. As far a s security and defence is concerned, Australia is always vigilant in addressing any threat to national security. The development of the current and past foreign policies specifically between 1788 and 1945 was greatly influenced by the UK, US and Asia .The UK which was the first to arrive in Australia in the 18th century greatly influenced Australian foreign policy from settlement (1788) to the WW II. It is worth noting that Australia was a victim of tyranny of distance as well as a colony of Britain. Till 1942, Australia showed little or no independence in foreign policy. This is because it was under Britain influence. Despite that Australia was a dominion of Britain and that it had right to determine its foreign policy, it never showed independence. The issues of culture, military, economics and politics were greatly influenced by Britain.It is hereby notable that Britain had great importance in forging Australian foreign policy on the issues of politics, security, defence and econ omics. Since the settlement in 1788 to 1930s, Australia had no international embassies apart from London. The main concern for Australia was on trade and economics. Britain hereby played a key role in modelling Australian foreign policy on trade, culture and economics which helped in meeting the interests of the Australian citizens . US played a key role in building Australian foreign policy since 1788 to 1945.Based on the strong trade relations, Australian extended these relations from trade to security. The fears of Japan invasion in 1930s was a real problem to Australia. Despite this problem, Britain was unable to defend Australia thus seeking the support of US. Based on this phenomenon, it is evident that the fear of Japan invasion influenced Australian foreign policy between 1918 and 1945. Australia extended its trade ties with US to security and defence relations. This is one of the foreign policy of Australia whereby it sought to ensure strategic relations with other countrie s .The foreign policies adopted by Australia on security and defence before 1945 were influenced by the US. This can be attributed to the continued threat of Japanese threat and hostility to Australia. As a result of the open hostility between Australia and Japan during the Paris Pease Conference in 1919, Australia depended on US from defence. During this period, Australian defence planning borrowed from US. In the 1920s, Australian demonstrated an open stereotype and prejudice which was influenced by the US.There was a growing negative stereotype of Japanese by Australia is a potential threat to national security. In response to this scenario, Australia developed and implemented foreign policies which were aimed at enhancing its security and countering Japanese invasion. The foreign policy on security was also allied to the US as a potential strategic partner. The Japanese invasion in China in 1933 had a significant impact on Australian’s attention. In this regard, Australia moved fast to ensure it had strong ties with US, hence strengthening its defence. In light ith this phenomenon, it can be established that Australian foreign policy between 1918 and 1945 was influenced by US due to the threat of Japanese invasion hence prompting it to enter into strategic alliance with the US . The stay of British settlers in Australia since 1788 had great influence and importance to Australia’s foreign policy since 1788 to 1945. The models of Australia’s legal and political systems as well as policies on trade and security were influenced by Britain. The foreign policy on immigration adopted by Australia till 1945 was influenced by Britain.It is important noting that Britons dominated the culture, language and the entire make-up of Australian society. Due to the domination of Australia by Britain, its national identity was relatively indistinct from that of Britain. This made the two nations to share same philosophies and practices as far as foreign policy and relations were concerned. The immigration policies adopted by Australia favoured Irish and Britain. This manifests the strong influence of Britain to Australia’s foreign policies before 1945.The establishment of the Immigration Restriction Act was a major manifestation of Britain’s influence to Australian foreign policy. In this policy, Australia effectively banned Asia migration into the country for the next 50 years. There was also preceding legislations which prohibited the employment of contract labourers as well as the deportation of those already in the country. These developments had great influence on Australian foreign relations till 1945 . Asia has played a critical role in influencing the foreign policies of Australia from 1788 to 1945.The relationships between Australia and other Asian countries of; Malaysia, Singapore, New-Zealand, Japan, Indonesia, and China was of importance in modelling its foreign policy. The quest for peace and regional sta bility was a major issue which influenced Australia’s foreign policy. This can be evident in the 1944 agreement with New Zealand which dealt with welfare, security and advancement of people in the different independent territories. The need for peace and security for its people can be viewed as the major concern for Australia which influenced its foreign policy during this time.Alongside the security concerns, Australia was also focused on boosting its economic prospects. In order to ensure prosperity and sustainability in national development, Australia was keen to ensure regional cooperation with other Asian countries. This was aimed at enhancing the economic prospects of the country . The importance of US in the foreign policy of Australia is very evident through the continued cooperation between the two countries. In the periods before 1945, the US was regarded as Australia’s key ally in WW II.The entire foreign and defence policies of Australia directly depended o n US support. He strong ties between US and Australia influenced its foreign policy on the Southeast Asia. Despite that at times Australia acted independently on foreign policies, it always pursued policies which impressed the US. It is important noting that Australia was ever submissive and subservient to US wishes. Nevertheless, at times Australia pursued different foreign policies which contradicted those of US as in the case of Malaya and West New Guinea.The fear of Australia from foreign invasion had a role in the dependency of Australia’s foreign policy on US . Conclusion It is apparent that the foreign policy and relations of Australia to 1945 was influenced by Asia, Britain and America. The interactions of these countries with Australia played a key role in shaping its foreign policy from 1788 to 1945. The key issues of concern were defence, security, trade, and migration. As observed in the discussion, the US was very influential on the foreign policies of Australia on defence and security.This was also the case of Asia which influenced Australian foreign policy on regional cooperation and security. These insights demonstrate the significance of Britain, Asia and US in modelling Australian foreign policy between 1788 and 1945. Bibliography Dunn, Michael. Australia and the Empire: From 1788 to the Present (Sydney: Fontana/Collins, 1984), 75-154. Esthus, Raymond. From Enmity to Alliance: US-Australian Relations, 1931-1941 (Melbourne: Melbourne University Press, 1964), 83- 132. Grey, Jeffrey. A Military History of Australia (Cambridge: Cambridge University Press, 1999), 45-98.
Tuesday, October 22, 2019
pain assesment essays
pain assesment essays Running head: PAIN ASSESSMENT IN YOUNG CHILDREN The Wisconsin Childrens Hospital Pain Scale for Preverbal Children: A Descriptive Study Experiences of Nurses Using the University of Wisconsin Childrens Hospital Pain Scale for Preverbal Children: A Descriptive Study Most patients in the hospital setting experience pain. Pain is a subjective phenomenon that varies from person to person. The most relied upon indicator of pain is a patients verbal report of the pain, but what happens when the patient cannot verbalize his pain? This is the case with infants and other nonverbal patients. They experience pain but are unable to tell a nurse where it hurts, how it hurts, and the intensity to which it hurts. OConner-Von (2000) stated "if self-report is not available, physiologic or behavioral measures must be used" (p. 1), and "nurses are the key health care personnel responsible for continuous assessment in children in the health care setting" (p. 1). Nurses need a reliable and continuous means of pain assessment for the preverbal population. A study of the pediatric pain practices of national health professionals showed that only twenty percent of the sample used a behavioral assessment scale (Broome, Richtsmeier, Maikler, s report as to whether or not the patient was in pain. While this method of pain assessment can be accurate, it can also vary widely between nurses as no two nurses have the same perception or as...
Monday, October 21, 2019
The Magic Mountain essays
The Magic Mountain essays The Magic Mountain by Thomas Mann is a novel about a character that is able to become more educated in life due to his visit with his sick cousin. Hans Castorp the main character learns about life because of his decision to stay on the mountain in Davos. Hans becomes more educated through his experiences with different people that he meets during his stay there. Many experiences mentioned in the book help Hans to develop and grow as a person. There are many characters in the novel that contributed to Hanss growth each one teaching him something different. The first Character that Hans interacts with on the mountain that starts his growth in becoming more educated is his cousin, Joachim Ziemssen. Joachim has started Hanss growth of knowledge by inviting him to stay up on the mountain with him. In doing so he opens Hanss mind and soul to a world he was previously unfamiliar with. Joachim is of strong character, a soldier of the army. He lets Hans into the world of disease knowing it might be unsafe for him. Being a soldier, Joachim is strong and anxious to get better and return to his military duties. Being unsure of this new place Joachim has Hans feeling somewhat comfortable. The impressionable Hans has transported away from the life and obligations he has known, to the mountain environment and insular community of the sanitarium. While at the sanitarium ordinary life seems increasingly unreal to him; his perceptions are heightened as he becomes aware of his physical, spiritual and emotional vulnerability, as well as of his own sexuality. He is greatly attracted to one of the patients, a married women of Slavic background, Madame Clavdia Chauchat. Madame Chauchat reminds him of a schoolboy to whom he had been strangely drawn to as a child. She entices Hans with her beautiful features and spirit. To Hans, Clavdia represents the irrational forces of spirit, a willingness to live life for its o...
Sunday, October 20, 2019
Wentworth Institute of Technology Admissions Data
Wentworth Institute of Technology Admissions Data Over two-thirds of those who apply to Wentworth Institute of Technology are accepted. Learn more about what it takes to get into this college. The Wentworth Institute of Technology is an independent technical design and engineering college in Boston, Massachusetts. It is a member of the Colleges of the Fenway consortium. The 31-acre urban campus in the Fenway neighborhood of Boston is within walking distance of many of the citys cultural and recreational offerings as well as several other area colleges and universities. Wentworth has an average class size of 22 students and a student / faculty ratio of 15 to 1. The college offers 20 bachelors degree programs in the fields of engineering and technology; popular programs include architecture, business, and computer science. Wentworths curriculum also includes a large cooperative education program for students to gain professional, paid work experience before they graduate. Students are involved in campus life as well with 20 clubs and organizations active on campus. The Wentworth Leopards compete in the NCAA Division III Commonwealth Coast Conference and Eastern College Athletic Conference. Will you get in if you apply? Calculate your chances of getting in with this free tool from Cappex. Admissions Data (2016) Wentworth Institute of Technology Acceptance Rate: 71Â percentGPA, SAT and ACT Graph for Wentworth AdmissionsTest Scores: 25th / 75th PercentileSAT Critical Reading: 480 / 590SAT Math: 530 / 630SAT Writing: - / -What these SAT numbers meanACT Composite: 21Â / 28ACT English: 20 / 26ACT Math: 23Â / 28What these ACT numbers mean Enrollment (2016) Total Enrollment: 4,526 (4,317 undergraduates)Gender Breakdown: 80 percent Male / 20 percent Female91Â percent Full-time Costs (2016-17) Tuition and Fees: $33,724Books: $1,500 (why so much?)Room and Board: $13,530Other Expenses: $3,750Total Cost: $52,504 Wentworth Institute of Technology Financial Aid (2015-16) Percentage of New Students Receiving Aid: 97Â percentPercentage of New Students Receiving Types of AidGrants: 97 percentLoans: 75 percentAverage Amount of AidGrants: $13,291Loans: $10,152 Academic Programs Most Popular Majors: Architecture, Business, Computer Science, Construction ManagementWhat major is right for you? Sign up to take the free My Careers and Majors Quiz at Cappex. Graduation and Retention Rates First Year Student Retention (full-time students): 84 percent4-Year Graduation Rate: 47Â percent6-Year Graduation Rate: 65Â percent Intercollegiate Athletic Programs Mens Sports: Soccer, Rowing, Lacrosse, Volleyball, Tennis, Basketball, Baseball, Golf, Ice Hockey, Track and Field, Cross CountryWomens Sports: Soccer, Softball, Tennis, Volleyball, Basketball, Lacrosse If You Like Wentworth, You May Also Like These Schools Rochester Institute of Technology: Profile | GPA-SAT-ACT GraphDrexel University: Profile | GPA-SAT-ACT GraphSuffolk University: Profile | GPA-SAT-ACT GraphBoston University: Profile | GPA-SAT-ACT GraphUniversity of Rhode Island: Profile | GPA-SAT-ACT GraphUniversity of Hartford: Profile | GPA-SAT-ACT GraphSyracuse University: Profile | GPA-SAT-ACT GraphTufts University: Profile | GPA-SAT-ACT GraphMerrimack College: ProfileUniversity of New Haven: Profile | GPA-SAT-ACT GraphRoger Williams University: Profile | GPA-SAT-ACT GraphMassachusetts Institute of Technology: Profile | GPA-SAT-ACT GraphUniversity of Connecticut: Profile | GPA-SAT-ACT Graph Wentworth Institute of Technology Mission Statement mission statement from https://wit.edu/about/traditions-vision/mission-vision-values Wentworths core purpose and mission is to empower, inspire and innovate through experiential learning. Data Source: National Center for Educational Statistics
Saturday, October 19, 2019
Fast Food Nation Annotated Bibliography Example | Topics and Well Written Essays - 2500 words
Fast Food Nation - Annotated Bibliography Example The problem arises when the ‘consumed’ food is unhealthy for people. This is identified by Anup Shaha, in his article which is entitled "Effects of Consumerism," as he notes that "today’s commercial markets include a very wide variety of foods that are unhealthy, but attractively marketed to kids†(Shah). Thus, the popularity of fast food in a given society entails the prevalence of the habit of consumerism in that society. In this context, many of the reviewed articles about the issue of consumerism assert that advertising plays a big role in the popularity of a certain food diet in the society. Regarding the issue of fast food, children are the main audience to which fast food ads are directed in order to attract as many young people as possible to this kind of food. As noted by Sandra L. Calvert, in her article which is entitled "Children as Consumers: Advertising and Marketing," â€Å"because of age-based limits in children's ability to understand adver tiser intent, the Federal Communications Commission has placed safeguards into the television advertising marketplace to protect young child audiences" (Calvert). Similar arguments are made by Mary Story and Simone French, in their article which is entitled "Food Advertising and Marketing Directed at Children and Adolescents in the US," and Barbara Sweeny in her article which is entitled "Concerned about Marketing to Children?" Therefore, many of the reviewed articles raise the issue that consumerism is enhanced in a given society by the excessive use of ads that publicize about fast food.
Long-term financing of companies Essay Example | Topics and Well Written Essays - 1500 words
Long-term financing of companies - Essay Example If a company that has already undergone an IPO needs to raise substantial capital again and it chooses to issue new equity in order to finance it, this is called seasoned equity offering (Butler, Grullon & Wetson 2005). Seasoned equity offerings come in different variations as regards the terms of the offer such as offering the stocks at investors-at-large or through a rights offerings. Under the rights offering, the company can issue rights to the purchasing the new shares to recipient investors on a proportionate basis (Weller 1962). These rights can either be sold or utilised depending on the recipient investors (Weller 1962). In 2008, Tesco Plc has seasoned equity offering that amounted to 130 million pounds; this is consist of 3 million pounds in issue capital, and 127 million pounds in share premium (Tesco Plc 2009). According to Tesco Plc, part of this seasoned equity offering is to issue shares as stock options are exercised. The rest of it is used for additional financing to the company. On the other hand, Marks & Spencer has issued 0.5 million pounds in equity (Marks & Spencer 2009). In contrast to Tesco Plc, this issue of shares by Marks & Spencer is due to exercise of options. However, seasoned equity offerings are used by the two companies in raising funds to finance their operations. One major advantage of this source of long-term funding is the huge amount of capital that large companies such as Tesco and Marks & Spencer have access in the form of the stock market. As regards the size of the capital raised, seasoned offerings in the stock market really provide huge advantages to these companie s. Seasoned equity offerings also have some shortcomings. For one, after an SEO, it is very usual that the stock price of the company gets lower because of the increase in price. There is a period of time before the price of the stocks will incorporate the information about the company, and this
Friday, October 18, 2019
The Heiress Essay Example | Topics and Well Written Essays - 250 words
The Heiress - Essay Example By giving the buttons to Morris, I believe she was ending the relationship between her and Morris. I think the button symbolizes greed by Morris, as well as generosity of Catherine. This is a decision she makes with finality. The effect of bringing Catherine as a bold lady who was timid at the beginning of the play creates more realism to the play. I believe the actions of Catherine in the last scene were more definitive on liberation rather than an absolute bitterness reaction. She also appears to have begun to resemble her father through understanding the reality of what she went through. From the body language, voice and attitude, it becomes apparent that Catherine completely transformed at the end of the play. This play empowers women. It highlights on liberation from stifling relationships. Catherine appears strong enough to lead her own life without Morris as she ascends with a dreamy smile. The desertion of Morris and Catherine’s father’s rejection of him makes it conclusive that Catherine’s father was
Manage Essay Example | Topics and Well Written Essays - 1000 words
Manage - Essay Example To retweet (verb) intends to send another persons tweet to the followers (Mann & Stewart, 2011). Retweeting is a typical action on Twitter and mirrors the ubiquity of individual tweets. Unfollow - To unfollow on Twitter intends to quit subscribing or following someone elses tweets. You unfollow individuals by clicking on "follow" on your home page to see your followings (Walther, 2012). Mouse over "follow" to one side of any clients name and click the red "Unfollow" button. Tweet - Tweet is a message posted on Twitter with 140 or fewer characters, likewise called a post or an update. Tweet (verb) intends to send a tweet (i.e., post, upgrade, and message) by means of Twitter (Walther, 2012). Favorites- Favoriting a Tweet demonstrates that you preferred a particular Tweet. One can discover the greater part of anothers most loved Tweets by tapping on the top choices interface on their profile page (Hine, 2010). Summary- King James is one the most sensitive athletes when it comes to his usage of twitter. His motives in the social site are often geared towards less sensitive issues and far from issues that can spur discussions. His tweets are based on issues that nobody can doubt or question, for instance, the tweets â€Å"lest change the world†and â€Å"the best ahead†are general. He employs the use of positive energy by using the tweets like â€Å"serve and protect. King James has been keen not to generate hatred or questions from his fans. Analysis- He uses twitter to gunner support and motivation to succeed from his fans. Besides being a sportsman, he uses the handle to create a need among his followers to respect God and have a reason to life. King uses the technology, not for professional relationships in most cases but to stay close to his fans and updating them on what to expect in a match. The organization uses twitter mainly for promotion purposes. It seeks to ensure a solid support from its
Thursday, October 17, 2019
Individual case Study analysis Example | Topics and Well Written Essays - 1000 words
Individual analysis - Case Study Example However, within the combination of various factors that influence development, the government of Ireland embraces peace and socio-cultural integration so that the country is able to recognize business partners as part of their economic development stakeholders hence handling business partners with the diligent they require. Cut in government spending is also a factor which boosted performance of the economy of Ireland. Tax reduction was meant to reduce cost of investment and attract foreign investors in the country. That is why Microsoft was attracted to invest in information technology business in Ireland which generated a lot to economic activities and contributed positively towards the gross domestic product. Economic systems With control over the inflation, the country is able to gain from Foreign Direct Investment (FDI) increasing the number of business transaction between traders and intergovernmental organization to the benefit of the country. However, with peaceful transition in government, the economic state of the country has withstood the tough global economic challenges that face many countries in the global market resulting into heavy losses in business and trade as a whole (Gordon Bigelow, 2003, p. 45). The overall ability of a country to attract foreign investment also depends on membership of an economic trading block. In case of Ireland membership of European economic commission not only provided market to the country but also enabled it to diversify its export products. Initially Ireland depended on the markets of the united kingdom alone which relied mostly on agricultural products only. Through membership of the economic block Ireland was able to open up to competition for its products as well (Philip, 2000, p. 17). In accordance with the PESTEL system, it is important to highlight the role played by the legal issues to ensure that all trade processes are carried out in accordance with the Irish business laws so as to reduce suspicion on unw arranted business deals that are likely to jeopardize the economic state of the country. With the aid of available technology, Ireland was able to engage other countries into trade agreement within the global business laws so as to restrict illegal business while increasing legalized trade between countries and Ireland (Thomas A. Boylan, 2003, p. 64). Further, due to the attractiveness of the country integrated with PESTEL, Ireland was able to provide control, and benefit for foreign companies which overcame the cost and risks they uncured leading to high foreign direct investment. The tremendous economic growth is as a result of government commitment in the pledge to sustain and trusted regulations that would stabilize the political and socio-economic development to eradicate global recession for instance the 2008 recession that was felt by all the global financial controllers (Philip, 2000, p. 104). Many countries prefers trade with Ireland from the 2008 experience where Ireland s tood out as the only country that was not shaken by the 2008 economic recession, this greatly influenced the country’s GDP (Gross Domestic Product), this would lead to long term economic performance in the country (Philip, 2000, p. 89). In the initial stage, the independence
In Bruges Essay Example | Topics and Well Written Essays - 500 words
In Bruges - Essay Example While following orders to kill the priest, Ray accidentally shoots a young boy killing him. Harry sends Ken and Ray to for hiding in Bruges. Here, they have to wait for further instructions. One night the two men went out to explore the city. They witness a film shoot where a dwarf actor is involved. This seems to amuse Ray. He engages in romance with a drug dealer, Chloe, the assistant producer of the shooting film. Her ex-boyfriend, Eirik, appears and threatens to shoot Ray. Ray disarms and discharges the gun in the man’s face. Later Chloe discloses that she seduces tourists after which they would rob them Ken receives a call from Harry commanding him to kill Ray. Harry says that the purpose of sending them to Bruge was because he wanted Ray to have a good moment before dying. Ken is reluctant about killing Ray. When he tries to kill him, Ray tries to shoot himself but Ken stops him. Ken suggests that Ray should leave Bruges. He tries to escape but a couple he had assaulted spots him. Ken and Harry meet, and he tries to convince Harry to forgive Ray. Filled with rage Harry shoots Ken on the leg and goes ahead to kill Ray. He shoots Ray after he left leaves the building. He also hits the dwarf actor in the process. After knowing that he had killed the child, he kills himself. Roy hopes to live so that he can face the parents of the kid he killed for judgment. The writer does not show out clearly whether the film is a comedy or a tragedy. For example, Ray and Ken chanced a shooting film with a dwarf character. It is also thrilling where gangsters seem sympathetic. Harry, who kills himself after knowing that he had killed a boy, portrays it. On the other hand, there are planed killings. Harry orders Ken to kill Ray, and he shoots Ray in the attempt of killing him. The film is different from other films in that in other films; characters manage to rescue their counterparts from
Wednesday, October 16, 2019
Individual case Study analysis Example | Topics and Well Written Essays - 1000 words
Individual analysis - Case Study Example However, within the combination of various factors that influence development, the government of Ireland embraces peace and socio-cultural integration so that the country is able to recognize business partners as part of their economic development stakeholders hence handling business partners with the diligent they require. Cut in government spending is also a factor which boosted performance of the economy of Ireland. Tax reduction was meant to reduce cost of investment and attract foreign investors in the country. That is why Microsoft was attracted to invest in information technology business in Ireland which generated a lot to economic activities and contributed positively towards the gross domestic product. Economic systems With control over the inflation, the country is able to gain from Foreign Direct Investment (FDI) increasing the number of business transaction between traders and intergovernmental organization to the benefit of the country. However, with peaceful transition in government, the economic state of the country has withstood the tough global economic challenges that face many countries in the global market resulting into heavy losses in business and trade as a whole (Gordon Bigelow, 2003, p. 45). The overall ability of a country to attract foreign investment also depends on membership of an economic trading block. In case of Ireland membership of European economic commission not only provided market to the country but also enabled it to diversify its export products. Initially Ireland depended on the markets of the united kingdom alone which relied mostly on agricultural products only. Through membership of the economic block Ireland was able to open up to competition for its products as well (Philip, 2000, p. 17). In accordance with the PESTEL system, it is important to highlight the role played by the legal issues to ensure that all trade processes are carried out in accordance with the Irish business laws so as to reduce suspicion on unw arranted business deals that are likely to jeopardize the economic state of the country. With the aid of available technology, Ireland was able to engage other countries into trade agreement within the global business laws so as to restrict illegal business while increasing legalized trade between countries and Ireland (Thomas A. Boylan, 2003, p. 64). Further, due to the attractiveness of the country integrated with PESTEL, Ireland was able to provide control, and benefit for foreign companies which overcame the cost and risks they uncured leading to high foreign direct investment. The tremendous economic growth is as a result of government commitment in the pledge to sustain and trusted regulations that would stabilize the political and socio-economic development to eradicate global recession for instance the 2008 recession that was felt by all the global financial controllers (Philip, 2000, p. 104). Many countries prefers trade with Ireland from the 2008 experience where Ireland s tood out as the only country that was not shaken by the 2008 economic recession, this greatly influenced the country’s GDP (Gross Domestic Product), this would lead to long term economic performance in the country (Philip, 2000, p. 89). In the initial stage, the independence
Tuesday, October 15, 2019
Stocks Perference Essay Example | Topics and Well Written Essays - 500 words
Stocks Perference - Essay Example Also, the company might find it difficult to pay out high interest, as the current global economic scenario is quite uncertain and might turn for worse any day. Once the management trainees are hired, we could decide on a sound strategy and growth pattern for the company and subsequently go in for the public issue after a period of three months at least. This time is required for the trainees to familiarize themselves with the working of the company and think about ways to improve the sales and profits. I would however not recommend having any of the new management grads on the board as the board members must be experienced people with excellent track records. Employee Stock Option is a wonderful tool to retain talented employees and keep them happy. No doubt, this perquisite could be offered to the employees, especially the management trainees who join the company in the next few weeks. â€Å"Technically, under ESOP, a company offers its employees the chance (or option) to purchase a certain number of shares at a future point in time. Generally, these shares are offered at a pre-determined price, which as per the company’s expectations would be lower than the market price at the time when the employee can exercise the option (choose to buy). Of course, the reverse could be true, in which case the options have no value at all.†[Sify Business] In case the employee chooses to leave the company before the vesting period, the stock option ceases to exist and the employee cannot benefit from it. We could keep the vesting period as five years to encourage the trainees to keep working with us. Another advantage with ESOP would be the tax benefit for the company. Since the stocks would be a part of the employee’s compensation package, the employee would have to pay the tax on the amount and we would be saving that amount. If a substantial part of the salary is offered as ESOP, we could be sure of the dedication of the
Monday, October 14, 2019
Organ Donation Essay Example for Free
Organ Donation Essay 1. The purpose of this essay was to support my claim that organ donation has a lot of positive results. My plan with this essay to get the reader to be more informed of the process and list some statistics associated with it. I hope that the reader, if they were not fully aware of the topic, to do more research for themselves. 2. From this assignment, I learned how to gather data to support my arguments. I already felt strongly about this subject before writing on it. Though, I learned more about the underground black markets associated with organ harvesting. 3. The only difficulties I had were trying to make everything flow in the body of my paragraphs. Also, how to incorporate the down side of the issue. The editing part wasn’t too hard for me. 4. I enjoyed writing on a topic that I fully support as an individual. I also enjoyed reading articles related to the topic on how a life was dramatically improved or saved. I in addition, learned to better support my claims. 5. I decided to write on this topic due to the fact that I am signed up to be an organ donor myself. I am not currently discussing this topic in another course. I was not fully aware of the topic until I fully researched it before deciding to become one. 6. There is not anything else I would like for you to know. Should More Attention Be Given To Organ Donation? When it comes to organ donation, it is a very touchy subject for a lot of people. The majority of them are hesitant about registering to become an organ donor because they are usually ill informed about the process. Besides helping to save or drastically improve someone’s life, you can also give some kind of comfort to their grieving families. There are so many organs and tissues that can be donated and one can also be a living person in order to do it. A sad statistic about the organ donation waiting list is that every 48 hours, someone dies while waiting for an organ and never receiving it (Newton). So one has to wonder if the general public was more aware of this issue; they would be more willing to sign up. Although there are some religious sects have some stipulations against organ donations, the majority actually condone it to be an act of charity. Though the subject of organ donation is a very sensitive issue, there are many advantages to them being performed. The fact that it only takes one organ donor to save over eight lives is simply amazing and that the donor is able to give comfort to grieving families and improve someone’s way of life. Financial or celebrity status has no bearing on determining who is able to receive a transplant in the U.S. Also, the system for matching donors and recipients being regulated by the Federal Government should give people some ease about any wrong doing involving the sale of organs in the United States (Burande). An Ethics Committee was in fact put into place by organizations that specialize in the procurement of organs and every region and hospital has one. Hearts, lungs, livers, kidneys, pancreas, small intestines, and also the eyes could be donated and transplants have a highly successful transfer rate of up to 80 to 90 percent (Burande). A person can be a living person and still donate certain parts of organs and bone marrow (Burande). Children can even become organ donors with their parent’s consent and the family pays no bills associated with any kind of organ donation. The donor person’s medical history is more significant than a person’s age, so someone should never think that they are too old to eligible to donate (Organ Donation: Don’t let These Myths C onfuse You). A person can even donate their entire body for the benefit of research and the use of medical education. A lot of families are concerned that if their deceased loved one donates, that they will not be able to have an open casket funeral and that is simply not true (Organ Donation: Don’t let These Myths Confuse You). The respect of the deceased and their families is one of the top priorities when it comes to organ donation. The process also involves many steps, with the first being a referral when a patient is about to pass away to confirm if they are or are not a registered donor. Then a medical evaluation is done to see if the organs are suitable. After a declaration of death is made by the doctor, the next of kin signs a consent form. After transplant coordinators confirm the death with a medical examiner or coroner to see whether it’s under jurisdiction, the transplant surgeon finalizes the recipient as a proper match. The work of the surgical removal team is also ov erseen by the transplant coordinator. Last, after it’s all said and done, letters are sent out to the donor’s family, relevant doctors and nurses informing them of the outcome of the donation that was done. Just like any other medical procedure, there are some issues that do exist. Over 115,000 people are currently waiting for an organ in the U.S and every 48 hours, a person dies waiting to receive an organ and not getting one (Burande). Each year over a million people need organs to save or dramatically improve their life. There is also a black market that exists for some organs, especially kidneys, so naturally people are hesitant due to its unethical prospects (Adomaitis). This tends to happen more frequently in countries where the population is poor. Organs from living donors are transplanted from people that live in poverty into more prominent citizens that live elsewhere all due to the need for money. A new study was done out of Alberta, Canada that Canadians might be more willing to sign up to be registered donors if they were offered some kind of monetary compensation for their families (Verner). The families would be offered a tax break or help with funeral expenses and of course the process would be done legally and all safety precautions would be followed. The only problem that is foreseen from that is how to establish the cost of an organ when life itself is precious. When it comes to the subject of organ donation, there are many religious aspects concerning beliefs from various religions. Although, many religions actually encourage it because they consider it be an act of charity, but with stipulations when it comes to a person doing it. Jehovah’s Witnesses believe that if a person decides to donate, all organs and tissues must be drained of blood first (Adomaitis). The Amish approves it only if the recipient’s life will be definitely improved or saved (Adomaitis). Though, they are not opposed to it, Mennonites leave the decision to the individual or his/her family members. In closing, no matter how sensitive a person is when it comes to the subject of organ donation, it never hurts to fully research the topic. He or she might have to come upon making a decision one day concerning the matter and they should be fully informed of all the pros and cons. This concludes my essay on the issue of organ donation. Annotated Bibliography Burande, Abhay. Organ Donation Facts and Statistics. Dec 21, 2011, Retrieved from http://www.buzzle.com/articles/organ-donation-facts-and-statistics.html There are many statistical data to support the pros of organ transplants. The process is overseen by a committee in the U.S. that ensures its strict adherence. Adomaitis, Mary Beth. Cons of Organ Donating. Retrieved from http://dyinglovetoknow.com/ConsofOrganDonating Besides the pros of organ donation there are many cons associated with this issue. Black markets for organs and taking advantage of the poor to help the rich are sometimes concerns for many. Verner, Amy. Compensating Organ Donors Could Increase Donation Rates, Study Finds. The Globe Mail, Published Wednesday, Nov 07, 2012, Retrieved from http://www/the globeandmail.com/life/the-hot-button/compensating-organ-donors-could-increase-donations.html Studies have shown that people in Canada are more inclined to sign donor cards if they were monetarily compensated. The only issue is that of how to put a value on human life. Newton, Joshua. How Does The General Public View Posthumous Organ Donation? A Meta-Synthesis of the Qualitative Literature. BMC Public Health 2011, 11:791. Retrieved from http://www.biomedcentral.com/1471-2458/11/791 There are many individuals who are unwilling become organ donors posthumously, thus creating a disparity between the supply and demand for transplants. A meta-synthesis of literature was therefore conducted to determine the views of the general public concerning the issue. Organ Donation: Don’t let These Myths Confuse You, The Mayo Clinic, Retrieved from http://www.mayoclinic.com/health/organ-donation/FL00077 Many people are ill-informed about the organ donation process. This article lists many myths that are associated with organ donation and the truths to clarify on those myths.
Sunday, October 13, 2019
A Case Study For Vertical Integration Commerce Essay
A Case Study For Vertical Integration Commerce Essay The word vertical integration describes a style of management control. The oil industry has always been fertile ground for analysis of the reasons and effects vertical integration. One reasons of this popularity is that the stages of production are easily differentiated. The general perception is that Integration is a prerequisite for success of the company as the oil industry is populated by large Integrated companies that makes excessive profits. Vertically integrated businesses in a supply chain are united through a common owner. Vertical integration may also be a merger of two companies that are in various stages of production, (for example, an upstream company (ONGC) and a downstream company (HPCL) . Thereby merger with a company which is at a later stage in the production process (and therefore closer to the consumer end) is known as forward integration. Vertical integration may be contrasted with horizontal integration, the merger of companies that together are at the same stage of production, for example, merging of two upstream companies or two downstream companies. Joining further back in the process (if a downstream company merged with an upstream company, for example) is known as backward integration. An example of backward integration in India is of Reliance Industries Limited that started with textiles to polyester to petrochemicals and now refinery and exploration production. The integration of two organizations that are in completely different business lines is sometimes referred to as the conglomerate integration. Companies are downstream or upstream of the other depending on whether they are closer or farther from the end consumer (the sea, so to speak, to the river flowing production). The benefits of vertical integration come from the higher capacity that gives organizations control access to inputs (and to control the cost, quality and delivery of inputs). Some of the best examples of vertical integration have been in the Oil Industry. In 1970 and 1980, many companies that were principally engaged in the exploration and extraction of crude oil refineries decided to acquire downstream distribution networks. Companies like Shell and BP came to control all the steps involved in bringing a drop of oil from North Sea or Alaska to the fuel tank of the vehicles. . Reliance- A Case Study: The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is Indias largest private enterprise, with businesses in the energy and materials value chain. Groups annual Revenues are in excess of U.S. $66 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India. Backward vertical integration has been the foundation of the evolution and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical integration from polyester to fiber intermediates, plastics, petrochemicals to petroleum refining and oil and gas exploration and production to be fully integrated along the materials and energy value chain. The Groups Activities span Exploration and Production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fiber intermediates, plastics and chemicals), textiles, retail and special economic zones Infotel. Reliance enjoys its Global Leadership in Businesses, being the largest polyester yarn and fiber producer in the world and among the top five to ten Producers in the world in major petrochemical products. Key Milestones in the history of Reliance Group: 1958- Dhirubhai Ambani started Reliance Commercial Corporation in Mumbai. 1966- Reliance entered the textile industry and set up a mill at Naroda, Ahmedabad. 1975- World Bank team visits the mill and declares that it is as modern and well-managed as those in the developed countries. 1977- Reliance went public with Indias first IPO 1985- Reliance total assets: $227 million. 1986- Reliance Capital, a merchant bank was created. 1988- Reliance Industrial Infrastructure, a petroleum pipeline provider, came into line. 1988- Reliance sales exceed $404 million. 1991- Hazira petrochemical plant commissioned. 1992-Reliance became the first Indian corporation to raise capital from international markets through Global Depository Receipts offering, and sets a record with a Reliance issue that received over 1 million investor applications. 1993- Reliance Petroleum went public in Indias largest public offering to date. Sales exceeded $909million, making Reliance Petroleum Indias largest publicly traded company. Also Reliance offered the first Euro Convertible bond issue. 1994- Awarded Companion Membership of the Textile Institute (UK). Award is limited to 50 members who have substantially advanced the fiber industry. 1994- Reliance offered the second Euro issue of Global Depository Receipts. 1995- Reliance net profit exceeded $242 million. 1995- Reliance Mutual Funds, an asset management and mutual fund provider launched. 1997- Reliance became the first corporation in Asia to issue 50 to 100 year bonds in the United States. 1997- Worlds largest multifeed cracker commissioned in Hazira. 1998- Reliance revenue tops $3 billion and total assets approach $8 billion. 1999- Worlds largest petroleum refinery complex commissioned at Jamnagar. 1999- Reliance Infocomm, a mobile service provider is launched. 2000- Reliance revenues exceed $4 billion, and total assets are $11.8 billion. 2002- Reliance Industries Ltd. and Reliance Petroleum Ltd merge into Reliance Industries. The new firm is named to the Forbes Global 500 in 2003, entering at position 306. Backward integration of Reliance Industries Objectives of the Study The objectives of the proposed research are as follows: To study the various activities that can be successfully integrated in oil and gas companies. To study the effects of vertical integration on diferrent oil and gas companies. To analyze the effects of vertical integration on Reliance Industries. Research Methodology Collection of Secondary Data Secondary data will be collected from already integrated oil and gas companies and it will give an insight on the various activities which can be successfully integrated. The data would then be simulated to analyze the effect of vertical integration on Reliance Industries. Literature Review: Oil companies, both national and multinationals have often adopted a vertically integrated structure. Some of these companies are: Exxon Mobil: it was formed in 1999 by the merger of two companies- Exxon and Mobil. Before the merger, Exxon was an upstream major while Mobil was a Chemical Company and its chief products included basic olefins and aromatics, ethylene glycol and polyethylene. After the merger, the company has been operating in the following areas: Upstream ExxonMobil Exploration Company ExxonMobil Development Company ExxonMobil Production Company ExxonMobil Gas and Power Marketing Company ExxonMobil Upstream Research Company ExxonMobil Upstream Ventures Downstream ExxonMobil Refining and Supply Company Sea River Maritime ExxonMobil Fuels, Lubricants Specialties Marketing Company ExxonMobil Research and Engineering Company International Marine Transportation Chemical ExxonMobil Chemical Company ExxonMobil is an industry leader in almost every aspect of the energy and petrochemical business. Its activities range from the exploration and production of oil and gas to coal and copper mining, from the refining of petroleum products to the marketing of fuels (under the Exxon. Mobil and Esso brands). waxes. asphalt and chemicals. In addition. ExxonMobil is active in electric power generation. ExxonMobil Chemical is one of the largest petrochemical companies in the world. Its products include olefins, aromatics, synthetic rubber, polyethylene, polypropylene and oriented polypropylene packaging films. The company operates its 54 manufacturing plants in more than 20 countries and markets its products in more than 150 countries. Shell: Shell has vertically integrated its structure which has helped it develop commercial expertise in all stages of this vertical integration, from the initial search for oil (exploration) through its harvesting (production), transportation, refining and finally trading and marketing established the core competencies in the company was founded. Similar competencies are also developed for natural gas, which has become one of the most important businesses in which Shell is involved, and which contributes a significant proportion of the profits of the company. Royal Dutch- Petroleums subsidiary, Shell Oil, acquired Pennzoil-QuakerState, the largest producer of motor oil. The vertical acquisition, which included over 2000 Jiffy Lube oil change centers, was consistent with Shells parent companys strategy to acquire a company that complements its lubricant and oil-products businesses and Shells gas station chain. Royal Dutch-Shell was international from its earliest days. Formed in 1907 as an Anglo-Dutch alliance between Shell Transport and Trading and the Royal Dutch Petroleum Company, the Royal Dutch-Shell group was, at that time, the only serious international rival to Rockefellers Standard. By the time that Anglo-Persian was formed in 1909 Rockefellers Standard and Royal Dutch-Shell had already established powerful positions in the international oil industry. But although Anglo-Persian was a latecomer, it had the unique and crucial competitive advantage that it was the first mover in developing the oil reserves of the Middle East, where its first oil field at Masjid-i-Suleiman in southern Persia (later Iran) was a giant, containing vast reserves of crude oil which could be produced in great quantities at low cost. From these different beginnings, the firms that would become international majors, acting at times as rivals, at others as allies, proceeded to establish their mastery of the international oil industry Each of them set out to produce its own crude oil for processing at its own refineries, and to sell the resultant products to the final consumer through its own market outlets. Each also sought to achieve, as far as was possible, a balance between these successive stages in its operations. By this policy of operational vertical integration, each major was able to co-ordinate the flow of oil, under its own control, from its oil fields to its markets. In practice, no major was able to achieve a perfect balance between its upstream (producing) and downstream (marketing and refining) operations. Majors with more markets than production could not find new oil fields at will, while others with more production than markets risked fierce competitive battles with their established rivals if they tried to break into new markets. To rectify the imbalances, and to mitigate the rivalries, the majors adopted a combination of measures they contracted to sell each other crude and products, sometimes in very large quantities; they joined in market-sharing agreements, most famously the 1928 Achnacarry Agreement to share out markets by a quota system; and they formed regional alliances in which majors with surplus upstream capacity joined forces with others with surplus downstream capacity, so that they could balance their joint operations without engaging in competition. By these arrangements, the international flow of oil came to be channeled, not through open, transparent markets for crude and products, but through the closed circuits of the majors vertically integrated systems. There were, both then and later, differences between those who argued that vertical integration was the economically most efficient means of organizing the international flow of oil, and those who saw vertical integration not as an economic necessity, but as a way of suppressing competition and of enabling the majors to control the industry. To a large degree, however, vertical integration was historically determined by Rockefellers early dominance. Once he had established a high degree of monopolistic control, it became a competitive necessity for later entrants such as Royal Dutch Shell, and later Anglo- Persian, to integrate vertically in order to avoid having to negotiate on uneven terms with established competitors for purchases and/ or sales of oil.
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