Tobacco Companies in Our Society Essay -- Smoking Cigarettes Tobacco E

Tobacco Companies in Our Society The tobacco industry seems like a beneficial addition to our economy. It has basically been a socially acceptable business in the past because it brings jobs to our people and tax money to the government to redistribute; but consider the cost of tobacco related treatment, mortality and disability- it exceeds the benefit to the producer by two hundred billion dollars US. (4) Tobacco is a very profitable industry determined to grow despite government loss or public health. Its history has demonstrated how money can blind morals like an addiction that is never satisfied. Past lawsuits were mostly unsuccessful because the juries blamed the smoker even though the definition of criminal negligence fits the industry’s acts perfectly. Some may argue for the industry in the name of free enterprise but since they have had such a clear understanding of the dangers of their product it changes the understanding of their business tactics and motives. The success of the industry has merely b een a reflection of its immoral practices. These practices have been observed through its use of the media in regards to children, the tests that used underage smokers, the use of revenue to avoid the law, the use of nicotine manipulation and the suppression of research. Tobacco companies have relied on the media to lure children. They quickly realized that ‘the company that dominates is that which most effectively targets young†(Imperial Tobacco document.) To counteract the idea of disease and other negative aspects of tobacco, the industry used imagery in the media such as natural settings and healthy actors doing active things. This helps them to insinuate that smoking leads to success, romance, sophistication and other advancements in their lifestyle, which was easily imprinted in the minds of children. A document found among Imperial tobacco files described their priority: â€Å"†¦having our imagery reach those non-reading young people who frequent malls should be our chief goal.†(1.170) Unaware of how important the under 18 market was to the industry, the government could only attempt to lengthen the distance between schools and billboards because they’re ineffective attempts were ignored by the large corporations . With many billboards concentrated in small areas it put the idea in children’s minds that smoking was socially acceptable and that t... ...ut throughout the past two decades, the realization of folly has called for a step in a new direction. For our society to finally rid ourselves of this parasite the change would have to be very slow; it would have to start with putting the entire industry in the hands of the government. In this way the corporation owners would truly be penalized while the product would be safer and the country would benefit from the profits. Marketing to children, testing underage smokers, using money to avoid the law, manipulating nicotine and suppressing research are among many of the immoral practices of the industry. Although they are very numerous and diverse they all share the same motive: to get rich. Money has become more important than compassion in the minds of the industry’s players. The success of the industry is merely a reflection of its immoral practices. Bibliography: 1.) Smoke and Mirrors: The Canadian Tobacco War 1996 Rob Cunningham 2.) Galen.library.ucsf.edu/tobacco   Ã‚  Ã‚  Ã‚  Ã‚   A)/mangina/report/exhibits.html   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  B)/bw.html 3.) www.courts.gov.bc.ca/Jdb%2txt.html 4.) Smoking, The Artificial Passion; 1989 David Krogh 5.) http://www.tobaccopapers.org/DocofWeek-apr28.htm

You Must Depend Only on Yourself :: Arguementative

Depending on Yourself Have you ever been told something by somebody, acted upon what you were told, then found out what they told you was wrong? This just goes to show that you should never rely on anybody else's word. I have always been told that attitute is everything. If you want to do accomplish something, your attitute towards your goal is the most important factor in your success. However, my personal experiences say otherwise. In seventh grade P.E. class, I had taken up the attitute that P.E. is a waste of time, and was not motivated to actively exert effort in the class. This kept up throughout the year, and my grade at the end was a "B". The next year, I decided I had better change my ways. I made sure to show enthusiasm and effort throughout the year. My final grade this time? Still a "B". This has forever disheartened me from trying to get an A in P.E., since it seems that nothing you do can change your grade. Even if you change your attitute, the result can be the same. The necessity of self-reliance becomes more and more apparent if you start to search for examples. For instance, several of my friends had a certain teacher for a physics class, who was often wrong in his teachings, but unwilling to admit to his mistakes. They had to compare what he had taught them with information in other places, to make sure he wasn't teaching the lessons incorrectly. Due to his mistakes, they had to rely on themselves, not the word of the teacher. My parents always tell me that if I don't want homework to be such a chore, that I have to motivate myself. I took their advice with an open mind, and got myself motivated for a history essay. But when the time came to write it, it was just as bad as any other. You Must Depend Only on Yourself :: Arguementative Depending on Yourself Have you ever been told something by somebody, acted upon what you were told, then found out what they told you was wrong? This just goes to show that you should never rely on anybody else's word. I have always been told that attitute is everything. If you want to do accomplish something, your attitute towards your goal is the most important factor in your success. However, my personal experiences say otherwise. In seventh grade P.E. class, I had taken up the attitute that P.E. is a waste of time, and was not motivated to actively exert effort in the class. This kept up throughout the year, and my grade at the end was a "B". The next year, I decided I had better change my ways. I made sure to show enthusiasm and effort throughout the year. My final grade this time? Still a "B". This has forever disheartened me from trying to get an A in P.E., since it seems that nothing you do can change your grade. Even if you change your attitute, the result can be the same. The necessity of self-reliance becomes more and more apparent if you start to search for examples. For instance, several of my friends had a certain teacher for a physics class, who was often wrong in his teachings, but unwilling to admit to his mistakes. They had to compare what he had taught them with information in other places, to make sure he wasn't teaching the lessons incorrectly. Due to his mistakes, they had to rely on themselves, not the word of the teacher. My parents always tell me that if I don't want homework to be such a chore, that I have to motivate myself. I took their advice with an open mind, and got myself motivated for a history essay. But when the time came to write it, it was just as bad as any other.

Life Defined by a Single Moment in Scarlet Letter, Red Badge of Courage

A Life Defined by a Single Moment in Hawthorne's The Scarlet Letter, Stephen Crane's Red Badge of Courage, and  Dostoevsky's Crime and Punishment    Life can be changed by a decision made during a single moment. Despite the natural gifts of courage or intelligence of a person, a single mistake can isolate him from the rest of society. In one case this can be cause by public conception. The public believes that this person is morally inferior and singles out that person for ridicule. However, it can also be self-imposed isolation. Either way, that person cannot rejoin his society until he has redeemed himself. In Hawthorne's The Scarlet Letter, both kinds of moral isolation are examined. Hester Prynne is placed in the public's scorn for her adulterous act. The scarlet "A" that she is forced to wear as a penance ensures that no one, especially Hester herself, will forget what she did. Through the public's condemnation of her act, Hester eventually finds her salvation and purges herself of guilt. She becomes a stronger person because of this new understanding and gains the community's respect for her charity. Dimmesdale, on the other hand, does not face his sin publicly until ... ...no matter how intelligent or "extraordinary," can go their entire lives without making a bad decision. In order for them to return morally to the other members of their society, their redemption must contain certain factors. First, it is not necessary for a confession to be public unless the transgressor believes that it is a requirement for forgiveness. Then the person must believe that the redeeming act is equal to the mistake and that he is cleared of guilt. After he forgives himself, he is no longer morally isolated and returns to society whether or not the society has forgiven him.   

Lack of Connection between Educational Research and Practice Essay

Educational research is conducted on the premise that an expansion of knowledge in the area of classroom teaching should automatically lead to improvements in the classroom, not only with respect to teaching styles but also the academic progress of students. All the same, this enhancement of knowledge is not always welcomed by teachers (Kennedy, The Connection). According to Mary M.  Kennedy, the author of â€Å"The Connection between Research and Practice,† teachers may fail to apply new knowledge based on research for the following reasons: (1) The research is not authoritative or convincing enough to move teachers to alter their practices; (2) The teachers find it difficult to directly apply the new knowledge because they consider it irrelevant to their particular concerns or questions on the subject of teaching; (3) The research findings may not have been communicated in an understandable way; and (4) It is impossible for the educational system to accept the changes entailed by new research-based knowledge (Kennedy, The Connection). G.  Reid Lyon, the Chief of the Child Development and Behavior Branch of the National Institute of Child Health and Human Development, U. S. Department of Health and Human Services, expresses dismay at the lack of connection between educational research and practice: Scientific research can inform beginning reading instruction. We know from research that reading is a language-based activity. Reading does not develop naturally, and for many children, specific decoding, word recognition, and reading comprehension skills must be taught directly and systematically. We have also learned that preschool children benefit significantly from being read to. The evidence suggests strongly that educators can foster reading development by providing kindergarten children with instruction that develops print concepts, familiarity with the purposes of reading and writing, age-appropriate vocabulary and language comprehension skills, and familiarity with the language structure. †¦One hopes that scientific research informs beginning reading instruction, but it is not always so. Unfortunately, many teachers and administrators who could benefit from research to guide reading instructional practices do not yet trust the idea that research can inform their teaching (Lyon). The lack of connection between educational research and practice astounds many researchers. Even so, this lack of connection is sometimes approved by researchers. In the case of reading, for example, there are researchers who perceive that theories are â€Å"neither practical nor profitable† given that reading is â€Å"a complex phenomenon (Calfee and Drum 183). † These researchers even assume that â€Å"theoretical analysis is unnecessary, if not impossible† in this area (Calfee and Drum 183). Thus, there appears confusion with regards to applying educational research in the classroom. Seeing that the educational researchers do not always agree amongst themselves, it is unsurprising that teachers find it hard to understand new research-based knowledge before they can apply it. Teachers may not only disagree with educational researchers, but they also disagree with education reformers that base their ideals on current educational research after sifting through the disagreements among researchers (Kennedy, Reform Ideals). Research suggests that the teaching practice is strongly influenced by the values of the teachers themselves (Aguirre and Speer; Brickhouse). In other words, teachers may simply disagree with educational research that blatantly conflicts with their beliefs about their practice. According to Argyris and Schon, such is the difference between â€Å"espoused theories† and â€Å"theories in use. † Despite the advice of researchers as well as reformers, teachers may simply find it impossible to apply educational research in the classroom when their own beliefs conflict with the ideals of others. Kennedy has experienced the conflict between teacher practice and expectations while teaching in a different culture. Working in Thailand, without immediately appreciating the practice of teaching expected in the new culture, she was rather confused about the method of teaching that she was expected to adopt. She believed that she was right in her teaching style; however, the expectations of the Thai school administrators and students differed. â€Å"It took me a long time to adjust my practice to accommodate their expectations,† she wrote later (Kennedy, Learning to Teach). Of course, if she had failed to adjust, she would have found it difficult to succeed in the new culture as a teacher. Educational research is meant to influence teacher practice (Kennedy, Means and Ends). Nevertheless, resistance to change is a reality that must be confronted by all organizations, whether they are academic in nature or purely for profit. Teachers may believe that a certain educational finding is irrelevant to their concerns or questions about teaching. Still, the real reason why teachers do not always apply current educational research in the classroom is that they believe that their own practices are correct at any given time. In spite of Kennedy’s focus on the connection between educational research and practice, it took her a â€Å"long time to adjust† to a new culture of schooling. Given that educational research is growing by leaps and bounds nowadays, it is but natural for other teachers also to take a long time to adjust to new knowledge in the classroom. Change may sometimes be imposed upon the teachers, as in the case of new technologies that must be adopted in our times in a large number of schools around the globe (Bell, Codde and Bell). When change is not imposed upon the teachers, it is difficult for them to decide on the kinds of changes to adopt and disregard. According to a website on education: Educational research is potentially a great resource for supporting learner-centered practices, but there is a disjuncture between the worlds of the educational researcher and the practitioner (whether faculty member, instructional technologist, or learning designer). A few ears ago at the International Conference on Learning Sciences held in Ann Arbor, keynote speaker Linda Roberts commented on a 500+ page proceeding, saying â€Å"This is fabulous, relevant, and meaningful work†¦ the only problem is: no one who needs it is going to read it. † That is, there is not much of a bridge between research and practice (â€Å"Bridging Teaching and Learning Research and Practice†). Educational research has consistently focused on student-centered practices. Nonetheless, the constantly growing amount of research is expected to bewilder teachers about the appropriate teaching styles to adopt at any given time. The adoption of new technologies was considered necessary change. In cases where change is not considered urgent, however, there is bound to remain a wide gap between educational research and teacher practice. As mentioned previously, even educational researchers disagree about the kinds of changes that must be considered relevant or irrelevant. Hence, teachers are left with no choice but to take â€Å"a long time to adjust. † Teachers may additionally choose not to adjust to new knowledge. This is because the teacher’s values are imperative in the classroom. His or her belief system may not concede to a certain change in teaching style. Besides, change is often very difficult to adjust to. Hence, the lack of connection between educational research and practice is unavoidable in reality.

E-Business and E-Commerce

INTRODUCTION E-Business is important in future perspectives considering that the amount of trade conducted electronically have grown extraordinarily since the spread of the Internet. E-bussiness uses the internet and other networks as well as a variety of Internet technologies to support e-commerce and business processes. It includes e-commerce, which is the buying and selling of products or services over the Internet. The Internet and related technologies have changed the way businesses are operated and people work. I.E-BUSINESS A. What is it Many businesses today are using Internet technologies to conduct business processes over the Internet. E-business can be defined as the use of the Internet and other networks, as well as Internet technologies to work and facilitate business processes, electronic commerce and enterprise collaboration within a company and with its customers, suppliers and business partners. Generally, any online exchange of information, money, resources and servi ces is a part of e-business. B. E-business infrastructureE-business infrastructure made up of a variety of components. It includes hardware, softwares, support services, human capital and telecommunication networks. Examples of hardware are computers, servers and routers. Human capital, such as information system specialists and programmers, is important to operate e-business processes. In addition, many companies use networks such as intranet that is a private network inside a company for managers and employees, and extranet, which links a company with its customers, suppliers and business partners outside the company.Other companies use a virtual private network (VPN) which provides a private line through the internet. It uses the public Internet backbone as a channel for private data communication (3:20). Thus, a VPN allows remote offices, business partners and customers to use the Internet, rather than expensive private lines, to reach company networks by using tunneling softwar e. This software encrypts data and then sends the data to their destination. II. E-COMMERCE A. What is itE-commerce is the buying, selling, marketing and servicing of products, services and information over the Internet and other networks. Many businesses use the Internet, intranet and extranet to support the commercial processes including advertising, sales, customer support and Internet security. Most advertisements on the Web are in the form of sending e-mails and banner ads, which is in shape of a long horizontal rectangle on the top of the Web page (3:10). These advertisements could attract a huge number of visitors to the advertised Web site.E-commerce website must help customers to welcome and serve them personally and efficiently in order to increase customer loyalty. B. E-commerce advantages and disadvantages E commerce has several advantages. For sellers, e-commerce is an effective way to reduce costs and enlarge their markets. They cut additional labor cost and they do no t need to print and distribute mail order catalogs. In addition, e -commerce allows customers to compare prices at different websites.Then, they make purchases at their homes at any time. E-commerce websites offer variety of products for example electronic books, music files and computer softwares. However, e-commerce has some disadvantages. Consumers are not willing to buy some products over the Internet because of security and quality concerns. Online furniture businesses, for example, have failed because customers want to test the comfort of an expensive item such as sofa before they purchase it (1:1).

Hybridity

According to Bhabha, hybridity is the straddling of two cultures and the consequent ability to negotiate the difference. Bhabha developed his concept of hybridity from literary and cultural theory to describe the construction of culture and identity within conditions of colonial antagonism and inequality. For Bhabha, hybridity is the process by which the colonial governing authority tries to convert the identity of the colonized within a singular universal framework. The colonizers would look at the colonized in their own environment and judge their behavior and practices from their own frame of reference.Bhabha contends that a new hybrid identity or subject-position emerges from the interweaving of elements of the colonizer and colonized challenging the validity of any essentialist cultural identity. Hybridity is positioned as an antidote to essentialism, or the belief in invariable and fixed properties which define the ‘whatness’ of a given entity. (The Location of Cul ture 1994) According to Ashcroft, most postcolonial writing has focused on the hybridized nature of postcolonial culture as strength rather than a weakness. It is not a case of the oppressor obliterating the oppressed or the colonizer silencing the colonized.In practice it stresses the mutuality of the process. The clash of cultures can impact as much upon the colonizer as the colonized. It is proof that even under the most potent of oppression those distinctive aspects of the culture of the oppressed can survive and become an integral part of the new formations which arise. (Papastergiadis 1997) Ashcroft says how â€Å"hybridity and the power it releases may well be seen as the characteristic feature and contribution of the post-colonial, allowing a means of evading the replication of the binary categories of the past and developing new anti-monolithic models of cultural exchange and growth†.In conclusion, I believe that hybridity is everywhere. It represents in many instanc es the triumph of the postcolonial or the subaltern over the hegemonic. The resistant always appropriates the cultural onslaught and modifies its products or processes for its own purposes. Hybridity can be a history of slavery colonialism, and rape, inherited in terms of race. It is a difficult and painful history of interracial identity. It deals with issues of choosing one’s affiliations or having ones affiliations thrust upon one.

International Finance

The nomenclature of the global economic arena Is the saying that the world Is flat and that It comes In a full circle; but where corporate power has transcended barriers and territorial borders, Terrorism remains as the bane of existence. Terrorism Is that plague that reeks In every corporate dominated land. It wasn't Just the twin WET towers plummeting at the darted vision of terror but it was the networked failure of man's economic progress.The global news of today is resplendent of the clatter of bullets, the tyranny of armed tanks and most importantly, the breakthrough of man's bestial brutality. Truncated calls, crashing stock markets, wary economists; the economic world witnessed the horror on 9/1 1, 26/11 etc. Brokers lay crestfallen, investors chose survivals over super profits; above all, the business of man failed. The first question that can be gawked on is how does the economy of the world suffer after the aftermath of a terrorist activity?In the advent of superior global ization, countries favor entry Into the markets by relying on exporting goods and services, which leads to the feasibility of rapid and broad outlook of global markets; It will also reduce the heavy dependence on high remissive physical faceless, which can offer much understandability, flexibility for reacting to unforeseeable market changes and rapid adjustments. Foreign direct Investment or FDA remains one of the key backstabbers for an aspiring global economy.Major investments in major countries of the world stand on shaky ground when such events happen in the light of the economy. When it comes to global economics, transaction costs and economies of scale, Foreign Direct Investment is a priority among financial planners, but the risky affair of dwindling between what is to e injected in the economy and what is to be exported are deemed to be worrisome. Global Markets have the trend to reprimand failure more severely than rewarding success, which have made risk minimizing strateg ies a pathway for business promoters and planners.The yester years before the first fatal blow of terrorism to the global business arena saw a stupendous growth of International ventures; but after the wrath experienced by the international markets: it took into concentrating of domestic affiliations and concentrations. This was evident by the fall of international monetary saving and faith. Money laundering has led to the modern day malaise of terrorism financing. Tightening money laundering laws in the United states still remain ineffective at the gawking reality of a global banking giant- HASH having fallen prey to such accusations.Hash's banking activities in Saudi Arabia, specifically activities pertaining to referencing banking with AY Rajah Bank were brought under the radar. An investigation claimed that the Saudi bank had financed terrorist activities In purview of the September 11 investigations. In fact, it is now Infamously known as the- â€Å"Early Financial benefactor of the al- Qaeda†. Although, there was a hiatus In the banking transactions of HASH and AY Rajah bank; but both the banks have resumed their dealings. Two Bangladesh banks have been accused on salary grounds.Tighter norms and stringent Basel laws could be the trump card but the Course structures pertaining to international business have witnessed a setback in lieu of worsening international ties; it is well evident by the declining education of international studies in the United States, as per the stats relating to enrollments in International Business Courses and Foreign language courses. During the past few ears, managers have moved from the focus of proactive exploration concerning international opportunities in the global arena to a rather defensive posture that emphasizes on the vulnerability of foreign operations and global threats.The September 11 attack alone caused around 40 billion of insurance losses in USA. There was an liquidity need addressed by the federal rese rve along with the delay of major global stock markets like NYSE, FETES etc. The nightmares of the Ells (Foreign institutional Investors has Just begun with the sharp shoot ups of the gold and other commodities prices. As the dollar recovered, it rather showed how the economy could have a domino effect in Just a moment of a terror attack.Although stocks recovered from the short bearish phase of the 26/11 attack in Iambi; it can't offer a solution for the momentary involuntary losses in the global economy. The worst part is that how can a manager appropriate against such costs? The cost of human labor, wealth and resources? It is not Just the infrastructure being marred or the sabbatical day being a black day but it is the vulnerability of corporate giants in front of the tryst with terrorism. The cost born for provisioning against such losses cannot be anticipated.They can seep through any advent of the business; whether it's the hijacked plane or the bakery which gets bombarded; th e vivid imagination of terror cripples the masculinity of business. The real question that looms on every single business maker is that who is supposed to bear this impossible to inappropriate cost? The government or the various international bodies? Yes, there is indeed something scarier than the sublime crisis, and it is the sublime crisis of human empathy and brotherhood. What might seem as the biggest looming threat to the business of the world can actually be a way to fight this common malaise forever.It is the world cooperation of various international bodies and government bodies including multinational corporations to bring an end to this plaguing condition. In the face of such a terror; the rescue can only be the pooled efforts of every individual who dreams of international cooperation and benefit. Rather than basking on the indifference curve, it might be the time of our corporate lives to pull our socks even higher; so that each individual with its own competence forms t he army of seamless unity and strength. International Finance Chapter 4 Practice Problems Percentage Depreciation †¢ Assume the spot rate of the British pound is $1. 73. The expected spot rate one year from now is assumed to be $1. 66. What percentage depreciation does this reflect? †¢ ($1 66 – $1 73)/$1 73 = –4. 05% ($1. 66 $1. 73)/$1. 73 4 05% Expected depreciation of 4. 05% percent Inflation Effects on Exchange Rates †¢ Assume that the U. S. inflation rate becomes high relative to Canadian inflation. Other things being equal, how should this affect the (a) U. S. demand for Canadian dollars, (b) supply of Canadian dollars for sale, and (c) equilibrium value of the Canadian dollar? Demand for Canadian dollars should increase, ? Supply of Canadian dollars for sale should decrease, and ? The Canadian dollar’s value should increase. 1 Interest Rate Effects on Exchange Rates †¢ Assume U. S. interest rates fall relative to British interest rates. Other things being equal, how should this affect the (a) U. S. demand for British pounds, (b) supply of pounds for sale, and (c) equilibrium value of the pound? ? Demand for pounds should increase, ? Supply of pounds for sale should decrease, and ? The pound’s value should increase. Income Effects on Exchange Rates †¢ Assume that the U.S. income level rises at a much higher rate than does the Canadian income level. Other things being equal, how should this affect the (a) U. S. demand for Canadian dollars, (b) supply of Canadian dollars for sale, and (c) equilibrium value of th Canadian dollar? f the C di d ll ? ? Assuming no effect on U. S. interest rates, demand for dollars should increase, ? Supply of dollars for sale may not be affected, and ? The dollar’s value should increase. Trade Restriction Effects on Exchange Rates †¢ Assume that the Japanese government relaxes its controls on imports by Japanese companies.Other things being equal, how should this affect the (a) U. S. demand for Japanese yen, (b) supply of yen for sale, and (c) equilibrium value of the yen? ? Demand for yen should not be affected, ? Supply of yen for sale should increase, and ? The value of yen should decrease. 2 Effects of Real Interest Rates †¢ What is the expected relationship between the relative real interest rates of two countries and the exchange rate of their currencies? ? The higher the real interest rate of a country relative to another country, the stronger will be its home currency, other things equal. Speculative Effects on Exchange Rates Explain why a public forecast about future interest rates could affect the value of the dollar today. Why do some forecasts by well-respected economists have no impact on today’s value of the dollar? ? Speculators can use anticipated interest rate movements to forecast exchange rate movements. ? Th may purchase f i securities b They h foreign iti because of their f th i expectations about currency movements, since their yield will be affected by changes in a cur rency’s value. ? These purchases of securities require an exchange of currencies, which can immediately affect the equilibrium value of exchange rates. It was already anticipated by market participants or is not different from investors’ original expectations. Interaction of Exchange Rates †¢ Assume that there are substantial capital flows among Canada, the U. S. , and Japan. If interest rates in Canada decline to a level below the U. S. interest rate, and inflationary expectations remain unchanged, how could this affect the value of the Canadian dollar against the U. S. dollar? ? If interest rates in Canada decline, there may be an increase in capital flows from Canada to the U. S. ? In addition, U. S. investors may attempt to capitalize on higher U.S. interest rates, while U. S. investors reduce their investments in Canada’s securities. ? This places downward pressure on the Canadian dollar’s value. 3 Interaction of Exchange Rates †¢ How might this affect the value of the Canadian dollar against the Japanese yen? ? Japanese investors that previously invested in Canada may , p shift to the U. S. Thus, the reduced flow of funds from Japan would place downward pressure on the Canadian dollar against the Japanese yen. Relative Importance of Factors Affecting Exchange Rate Risk †¢ Assume that the level of capital flows between the U.S. and the country of Krendo is negligible and will continue to be. But there is a substantial amount of trade between the U. S. and the country of Krendo. Which affect, high inflation or high interest rates will be seen in the value of the Krendo’s currency? Krendo s †¢ The inflation effect will be stronger than the interest rate effect because inflation affects trade flows. ? The high inflation should cause downward pressure on the kren. Speculation †¢ Blue Demon Bank expects that the Mexican peso will depreciate against the dollar from its spot rate of $. 5 to $. 14 in 10 days. The following interbank lending and borrowing rates exist: U. S. dollar Mexican peso Lending Rate Borrowing Rate 8. 0% 8. 3% 8. 5% 8. 7% Assume that Blue Demon Bank has a borrowing capacity of either $10 million or 70 million pesos in the interbank market, depending on which currency it wants to borrow. How could Blue Demon Bank attempt to capitalize on its expectations without using deposited funds? Estimate the profits that could be generated from this strategy. 4 Speculation 1. Borrow MXP70 million 2.Convert the MXP70 million to dollars: MXP70,000,000 ? $. 15 = $10,500,000 3. Lend the dollars through the interbank market at 8. 0% annualized over a 10-day period. The amount accumulated in 10 days is: $10,500,000 ? [1 + (8% ? 10/360)] [ ] = $10,500,000 ? [1. 002222] = $10,523,333 4. Repay the peso loan. The repayment amount on the peso loan is: MXP70,000,000 ? [1 + (8. 7% ? 10/360)] = 70,000,000 ? [1. 002417] = MXP70,169,167 5. Based on the expected spot rate of $. 14, the am ount of dollars needed to repay the peso loan is: MXP70,169,167 ? $. 14 = $9,823,683 6.After repaying the loan, Blue Demon Bank will have a speculative profit of: $10,523,333 – $9,823,683 = $699,650 Speculation †¢ Assume all the preceding information with this exception: Blue Demon Bank expects the peso to appreciate from its present spot rate of $. 15 to $. 17 in 30 days. How could it attempt to capitalize on its expectations without using deposited funds? Estimate the profits that could be generated from this strategy. Speculation 1. Borrow $10 million 2. Convert the $10 million to pesos (MXP): $10,000,000/$. 15 = MXP66,666,667 3. Lend the pesos through the interbank market at 8. % annualized over a 30-day period. The amount accumulated in 30 days is: MXP66,666,667 ? [1 + (8. 5% ? 30/360)] [ ] = 66,666,667 ? [1. 007083] = MXP67,138,889 4. Repay the dollar loan. The repayment amount on the dollar loan is: $10,000,000 ? [1 + (8. 3% ? 30/360)] = $10,000,000 ? [1. 006917] = $10,069,170 5. Convert the pesos to dollars to repay the loan. The amount of dollars to be received in 30 days (based on the expected spot rate of $. 17) is: MXP67,138,889 ? $. 17 = $11,413,611 6. The profits are (could be): $11,413,611 – $10,069,170 = $1,344,441 5 International Finance The nomenclature of the global economic arena Is the saying that the world Is flat and that It comes In a full circle; but where corporate power has transcended barriers and territorial borders, Terrorism remains as the bane of existence. Terrorism Is that plague that reeks In every corporate dominated land. It wasn't Just the twin WET towers plummeting at the darted vision of terror but it was the networked failure of man's economic progress.The global news of today is resplendent of the clatter of bullets, the tyranny of armed tanks and most importantly, the breakthrough of man's bestial brutality. Truncated calls, crashing stock markets, wary economists; the economic world witnessed the horror on 9/1 1, 26/11 etc. Brokers lay crestfallen, investors chose survivals over super profits; above all, the business of man failed. The first question that can be gawked on is how does the economy of the world suffer after the aftermath of a terrorist activity?In the advent of superior global ization, countries favor entry Into the markets by relying on exporting goods and services, which leads to the feasibility of rapid and broad outlook of global markets; It will also reduce the heavy dependence on high remissive physical faceless, which can offer much understandability, flexibility for reacting to unforeseeable market changes and rapid adjustments. Foreign direct Investment or FDA remains one of the key backstabbers for an aspiring global economy.Major investments in major countries of the world stand on shaky ground when such events happen in the light of the economy. When it comes to global economics, transaction costs and economies of scale, Foreign Direct Investment is a priority among financial planners, but the risky affair of dwindling between what is to e injected in the economy and what is to be exported are deemed to be worrisome. Global Markets have the trend to reprimand failure more severely than rewarding success, which have made risk minimizing strateg ies a pathway for business promoters and planners.The yester years before the first fatal blow of terrorism to the global business arena saw a stupendous growth of International ventures; but after the wrath experienced by the international markets: it took into concentrating of domestic affiliations and concentrations. This was evident by the fall of international monetary saving and faith. Money laundering has led to the modern day malaise of terrorism financing. Tightening money laundering laws in the United states still remain ineffective at the gawking reality of a global banking giant- HASH having fallen prey to such accusations.Hash's banking activities in Saudi Arabia, specifically activities pertaining to referencing banking with AY Rajah Bank were brought under the radar. An investigation claimed that the Saudi bank had financed terrorist activities In purview of the September 11 investigations. In fact, it is now Infamously known as the- â€Å"Early Financial benefactor of the al- Qaeda†. Although, there was a hiatus In the banking transactions of HASH and AY Rajah bank; but both the banks have resumed their dealings. Two Bangladesh banks have been accused on salary grounds.Tighter norms and stringent Basel laws could be the trump card but the Course structures pertaining to international business have witnessed a setback in lieu of worsening international ties; it is well evident by the declining education of international studies in the United States, as per the stats relating to enrollments in International Business Courses and Foreign language courses. During the past few ears, managers have moved from the focus of proactive exploration concerning international opportunities in the global arena to a rather defensive posture that emphasizes on the vulnerability of foreign operations and global threats.The September 11 attack alone caused around 40 billion of insurance losses in USA. There was an liquidity need addressed by the federal rese rve along with the delay of major global stock markets like NYSE, FETES etc. The nightmares of the Ells (Foreign institutional Investors has Just begun with the sharp shoot ups of the gold and other commodities prices. As the dollar recovered, it rather showed how the economy could have a domino effect in Just a moment of a terror attack.Although stocks recovered from the short bearish phase of the 26/11 attack in Iambi; it can't offer a solution for the momentary involuntary losses in the global economy. The worst part is that how can a manager appropriate against such costs? The cost of human labor, wealth and resources? It is not Just the infrastructure being marred or the sabbatical day being a black day but it is the vulnerability of corporate giants in front of the tryst with terrorism. The cost born for provisioning against such losses cannot be anticipated.They can seep through any advent of the business; whether it's the hijacked plane or the bakery which gets bombarded; th e vivid imagination of terror cripples the masculinity of business. The real question that looms on every single business maker is that who is supposed to bear this impossible to inappropriate cost? The government or the various international bodies? Yes, there is indeed something scarier than the sublime crisis, and it is the sublime crisis of human empathy and brotherhood. What might seem as the biggest looming threat to the business of the world can actually be a way to fight this common malaise forever.It is the world cooperation of various international bodies and government bodies including multinational corporations to bring an end to this plaguing condition. In the face of such a terror; the rescue can only be the pooled efforts of every individual who dreams of international cooperation and benefit. Rather than basking on the indifference curve, it might be the time of our corporate lives to pull our socks even higher; so that each individual with its own competence forms t he army of seamless unity and strength. International Finance Abstract: The assignment requires one to select one major economic sector in Tanzania and †¢Evaluate the FDI’S flow and †¢the importance of FDI’s in that sector during the past 4 years. †¢Identify the likely impairing factors to FDI’s in that sector. †¢Recommend what the government should do to attract more FDI’S Method After selecting the one major economic sector which is Agricultural sector, data were requested which will provide the end results of this assignment. ? Table of Contents 1. Introduction: Tanzania’s Economy4 2. Evaluation of Tanzania’s FDI’s flow5 . Importance of FDI in Agriculture in the past 4 years7 †¢Capital:7 †¢Technology:8 †¢Market Access:8 4. Factors Impairing FDI’s in Tanzania8 †¢Poor Infrastructure8 †¢Capacity8 †¢Bureaucracy8 †¢Corruption9 †¢Seasonality9 †¢Access to finance9 †¢Regulatory framework9 5. Recommendation to attract more FDI ’s10 6. Conclusion10 References. 12 1. Introduction: Tanzania’s Economy Tanzania is one of the world's poorest economies in terms of per capita income, with GDP growth of average 7% per year between 2000 and 2008 on strong gold production and tourism.However, the economy heavily depends on agriculture, which accounts for more than one-fourth of GDP, provides 85% of exports, and employs about 60% of the work force. Tanzania also depends on the World Bank, the IMF, and bilateral donors to provide funds to rehabilitate Tanzania's aging economic infrastructure, including rail and port infrastructure that are important trade links for inland countries. With the recent banking reforms that have helped increase private-sector growth and investment, and the government has increased spending on agriculture to 7% of its budget.Continued donor assistance and solid macroeconomic policies supported a positive growth rate, despite the world recession. Also, in 2008, Tanzania receive d the world's largest Millennium Challenge Compact grant, worth $698 million. Dar es Salaam used fiscal stimulus and loosened monetary policy to ease the impact of the global recession. GDP growth in 2009-10 was a respectable 6% per year due to high gold prices and increased production. Tanzania's economy was forecast to grow by 7. 2 percent in 2012, up from an estimated 6. 0 percent this year, provided weather conditions improve as reported by the International Monetary Fund (IMF).However, Tanzania's economy will grow by a median 6. 7 percent this year from 7. 0 percent last year, weighed down by chronic energy shortages, as reported by a Reuter’s poll. The median forecast by a poll of 11 analysts showed gross domestic product would rebound to 7. 1 percent next year in east Africa's second-largest economy. The downside risks to the growth outlook emanate mostly from the power rationing that has been going on in the country. It has compelled firms to resort to less productive sources of power. The Washington-based body earlier this year cut its 2011 growth projection for Tanzania from 7. percent because of widespread power outages triggered by drought in the predominantly hydropower producing country. Africa's fourth biggest gold producer, Tanzania mainly depends on tourism, mining and agriculture and is increasingly attracting higher investor interest in telecommunications, energy, manufacturing, financial services and transport. 2. Evaluation of Tanzania’s FDI’s flow The Government of Tanzania (GOT) generally has a favorable attitude toward foreign direct investment (FDI) and has made significant efforts to encourage foreign investment.After several years of growing FDI, new FDI declined sharply from USD 6. 68 billion in 2008 to USD 2. 3 billion in 2009. The number of new foreign projects registered at TIC dropped to 503 last year from 768 in 2008. There is no restriction in foreign exchange. Foreign investors generally receive national treatment; however, the Tourism Act of 2007 bars foreigners from engaging in some tourism-related businesses. The Dar Es Salaam Stock Exchange forbids companies with more than 60 percent foreign ownership from listing.There are no laws or regulations authorizing private firms to limit or prohibit foreign investment, participation, or control, and firms generally do not restrict foreign participation in practice. The global economic crisis had minimal impact on the Tanzanian financial sector due to its relatively low global integration, however tourist arrivals dropped up to 20 percent, new tourist projects fell by 50 percent, and FDI dropped within the natural resource sector, resulting in layoffs at gold mining firms and stalled mineral and gas exploration and development projects.The Tanzanian Investment Center (TIC), established by the Tanzanian Investment Act of 1997, is the focal point for all investors’ inquiries, screens foreign investments, and facilitates project sta rt-ups. Filing with TIC is not mandatory, but offers incentives for joint ventures with Tanzanians and wholly owned foreign projects above USD 300,000. The review process takes up to 10 days, and involves multiple GOT agencies, which are required by law to cooperate fully with TIC in facilitating foreign investment, but in practice can create bureaucratic delays.TIC continues to improve investment facilitation services, provide joint venture opportunities between local and foreign investors, and disseminate investment information. TIC does not have specific criteria for screening or approving projects, but considers factors such as: foreign exchange generation and savings, import substitution, employment creation, linkages to the local economy, technology transfer, and expansion of production of goods and services. Among investment and trade opportunities promoted by the TIC are agriculture, mining, tourism, telecommunications, financial services, and energy and transportation infra structure.The Economic Processing Zones Act 2006 authorized the establishment of Special Economic Zones (SEZs) to augment investments in the light industry, agro-processing industry and agriculture sectors. Greenfield foreign direct investments are allowed through this legislation. The Export Processing Zones Authority continues to promote Export Processing Zones (EPZ) to attract investments in agribusiness, textiles and electronics and Spatial Development Initiatives (SDI). Investors in EPZs are eligible for tax exemptions. Investments on the Dar es Salaam Stock Exchange (DSE) are open to foreign investors, but capped at 60 percent.Foreign investors are barred from participating in government securities. The financial sector has continued to expand, with an increase in foreign-affiliated financial institutions and banks operating in Tanzania. As of December 2009, the Bank of Tanzania listed a total of 27 commercial banks licensed and operating in Tanzania, over half of which are fo reign-affiliated banks. Competition among these foreign commercial banks has resulted in significant improvement in the efficiency and quality of financial services.Tanzania expected to increase foreign direct investment (FDI) by 16 percent in 2010 from $645 million last year as the global economy recovers. Foreign direct investment in 2009 dropped from $679 million the year before as a result of the global financial crisis. The FDI inflows into east Africa's second largest economy were expected to surge to $800 million in 2011. Tanzania's economy mainly depends on tourism, mining and agriculture. Its telecommunications, energy, manufacturing, financial services and transport sectors are attracting rising investor interest.It is expected that most of the investments in 2010/11 will focus on tourism, agriculture and telecoms. The government is implementing investment reforms to woo foreign capital. According to the World Bank's Doing Business in the East African Community 2010 report , Tanzania fares poorly in key areas such as closing and starting a business, protecting investors, access to credit, cross border trade and issuance of construction permits. 3. Importance of FDI in Agriculture in the past 4 years Tanzania has more than 44 million hectares of arable land, and a wide variety of ecological zones, climates and water resources.The country could feed most of the East, Central and Southern African countries with food deficits. 80% of the population in Tanzania lives in rural areas and are in some way or another depending on agriculture. The agricultural sector is vital to Tanzania’s economy and therefore also to the reduction and eradication of poverty. Other advantages of FDIs in agricultural sector in Tanzania are as follows: †¢Capital: First and foremost FDI brings much needed capital to Tanzania. This helps the country to achieve rates of domestic investment higher than their domestic savings.Besides, the financial resources that FDI bring s in are in long term and non-debt creating. †¢Technology: There are a number of ways in which FDI through TNCs can help develop indigenous technology. Firstly TNCs usually bring in modern technology in agriculture and practices to Tanzania and help it upgrade its existing technology. †¢Market Access: TNCs in the agricultural sector has enabled Tanzania to better exploit its comparative advantage in international trade and thus gain access to global markets. 4. Factors Impairing FDI’s in Tanzania †¢Poor Infrastructure Lack of stable power has led to power outages throughout the country.It has compelled firms to resort to less productive sources of power. These power outages triggered by drought due to high reliance in the predominantly hydropower. Another significant constraint to improving FDI in Tanzania through agriculture is poor infrastructure within Tanzania. Insufficient investment in the road network has resulted in just 4,000 kilometers of Tanzaniaâ₠¬â„¢s 85,000 km road network being paved. Most of these unpaved roads are feeder roads in rural areas, and many routes become impassable after heavy rains. The country’s two railway systems are also unreliable, with dilapidated infrastructure and outdated rolling stock. Capacity TIC currently lacks the capacity to address the complicated and non-transparent investment clearance processes, to collect comprehensive and timely data for the research needed to facilitate both policy making and investment decision-making. †¢Bureaucracy Bureaucratic intransigence continues to pose a severe obstacle to doing business in Tanzania as in the rest of East Africa. Investors looking to startup businesses in Tanzania often complain about the level of red tape associated with issues such as the issuance of business licenses, company registration, building permits, land certificates and taxation. Corruption Corruption is an endemic problem in Tanzania and is often cited as one of the big gest hindrances to doing business. The World Bank 2006 Enterprise Survey indicates that 49. 5% of the surveyed companies reports that they expect to make informal payments to achieve specific goals. According to the 2006 IFC-World Bank Enterprise Survey, 20% of the companies surveyed expect to give gifts or make informal payments to get an operating license, and 32% to get a construction permit. †¢SeasonalityMore than 75% of Tanzanian enterprises are heavily affected by seasonality, whereby farmers sell their produce when prices are lowest and buy inputs for the next cropping season when prices are highest. †¢Access to finance Most enterprises in the rural areas are small scale and engage in or rely on agriculture. Bearing the above constraint, these small enterprises have a comparatively high risk, high transaction costs and low volumes, limiting access to capital. †¢Regulatory framework The economic growth potential of investments in agricultural land is questionabl e due to an inadequate regulatory framework governing (FDI) in the sector.FDI in agricultural sector in Tanzania can even jeopardize local resource users land rights. In such that farmers are giving away their most valuable assets to profit-seeking entities, based on information asymmetries and persuasion. 5. Recommendation to attract more FDI’s Including the ongoing reforms to woo investments, TIC continues to improve investment facilitation services, provide joint venture opportunities between local and foreign investors, and disseminate investment information.In order to attract more FDIs in the agricultural sector and to increase productivity and high quality output, effort is needed to understand and eliminate the barriers to smallholders that inhibit the growth of productivity. The structural problems facing smallholders such as limited access to information, to input and output and financial markets need rethinking that will attract more FDI to the sector. Such an arra ngement would involve smallholders being better organized in producer associations.Producer associations can improve productivity, reduce costs through supply chain linkages and improve competitiveness. They manage to do so by improving access to necessary and affordable input (technologies and credit). The second challenge is to build integration of production, transport, processing and marketing to take advantage of supply and demand value addition. Third is to ensure the introduction of innovation and knowledge on a continuing basis without subjecting members to high consultancy fees given the socio-economic conditions of smallholders. 6. ConclusionApart from general determinants such as macroeconomic stability, efficient institutions, political stability and a good regulatory framework, the smallholder institutional setup has positive impact on FDI flow into the sector. It has been observed that crops whose smallholders are well organized attracted more FDI. An important implica tion of the result is that FDI to the agricultural sector is not solely driven by policies and incentives to foreign investment and that the institutional setup of smallholder farmers can play an important role in promoting investments to the sector.In the short and medium term, efforts to foster integration and creation of strong bonds between smallholders and investors through integrated producer schemes can increase FDI to the sector and thus increase productivity. Other determinants such as investment regulatory frameworks, policies that promote macroeconomic economic stability, and improved physical infrastructure also have a role to play both in the short and long run. In the long run, more FDI can be attained by developing strong institutions in all sectors. ?