“Freakonomics” by Steven D. Levitt and Stephen J. Dubner Essay

Freakonomics, by Steven D. Levitt and Stephen J. Dubner, is book that not your typical economist would write it was co-authored in 2005 and if morality represents how we would like the world to work, then economics represent how it actually does work in this award-winning book. Steven D. Levitt is a not your typical economist. He is a much-heralded scholar who studies the riddles of everyday life- from cheating and crime to sports and child rearing and whose conclusions turn the conventional wisdom on its head (freakonomics.com). Stephen J. Dubner is an award-winning author and journalist (freakonomics.com). These two authors team up to create a very insightful groundbreaking collaboration. They set out to to explore the inner workings of a crack gang, the truth about real estate agents, the secrets of the Ku Klux Klan, and much more. Through much story telling and insightful knowledge, they show that economics is at the root, the study of incentives (freakonomics.com). There is not one underlying theme the book, Freakonomics, is built around, but there are many reoccurring themes throughout. The three major themes that I found occur throughout the book are: positive vs. normative analysis, incentives are the cornerstone of modern life, and the idea of â€Å"tournament† style markets, â€Å"winner take all†. Freakonomics is a brilliant, provocative investigation into motives: what are they, how they can be changed, and how they affect what people do. It is also a deceptively easy read: its style is very humorous and really grips the reader throughout the book. Freakonomics tackles some of our most basic assumptions about the way people, and society, work. I believe that Freakonomics demonstrates the basic economic principles. I will defend this argument through the underlying themes of Freakonomics. Positive vs. normative analysis is one of the many underlying themes of Freakonomics. The conclusions derived from each chapter will often surprise the reader. These conclusions may also not agree with your personal beliefs, but that is the basis of positive vs. normative analysis. Positive economics is objective and fact bases, while normative economics is subjective and  value based. Positive economic analysis statements do not always have to be true, but in order to be considered a positive analysis you must be able to test and prove or disprove the statement. Normative analyses are opinion based, so they cannot be proved or disproved. This basic economic principle is not always easy to understand because the consumer is usually very value based. Public policies are typically revolved around normative economic statements meaning the disagreements carry on because neither side can prove that is correct or incorrect. There are many examples of positive vs. normative analysis throughout Freakonomics, in chapter four, on crime and abortion, the authors brought forth the issue of how crime rates relate to abortion and backed it up with the statistical information. This is an example of positive analysis because the statistical information supports the issue being argued. Normative analysis of the issue between crime and abortion would be that they are not correlated to one another because it pledges the fidelity to notions of the way the world should be. Also, in chapter five, the coauthors believe that a child’s academic success does not come from parental efforts and they explained this through the data presented in the book. One would think a parental figure would help a child’s development in the classroom, but in reality its other external factors that does. This clearly illustrates the difference between an analytical approach that considers the world, as it is (positive analysis ) and an analytical approach that is based on how the world should be (normative analysis). Incentives are the cornerstone for modern life, people respond to incentives. An understanding of incentives is the key to clearly understanding any human behavior. Incentives are a thing that motivates or encourages one to do something. Incentives are everywhere in the world especially in economics. Corporations are often given tax incentives for hiring more employees. Incentives are a payment or concession to stimulate greater output or investment. In Freakonomics, Levitt and Dubner believe incentives equivalent to the study of economics. In chapter one, Dubner and Levitt exclaim that incentives come in three varieties: moral incentives, social incentives, and economic incentives. Moral incentives are which one acts out of conscience or conviction. Social incentives are by which actions  are related to shame or glory. Economic incentives are causing people to act in their own personal financial interest. In chapter one, we saw the example of a day care center in Haifa, Israel, in which a fine was levied for parents picking up their child late from day care. Once the fine was implemented, we started seeing parents showing up late because it allowed more personal free time. Once this economic incentive was levied parents found that the free time outweighed the economic incentive. Parents were only picking up their child on time because there was somewhat of an incentive socially and morally. They morally or socially believed they had to pick up their child on time, but now that an economic incentive was implemented they did not feel morally responsible to be on time and just paid the fine. Also in chapter one, we saw the incentive for teachers and their students to do well on standardized testing for more school funding or even to keep their job, so teachers act out irrationally and help students ch eat on standardizing testing. Incentives are found in everyday life they are in every situation depending on one’s personal beliefs, which also can relate back to normative vs. positive analysis. In chapter two, real estate agents don’t have moral incentive to get the best price for their customers house being sold. Getting the optimal price on a house and time consuming. Since real estate agents make 3 to 6% commission on houses they have little incentive to put more work in then needed for a small amount of money more. They feel their time is more valuable then putting forth more effort in selling a house knowing they can sell it faster at a cheaper price. There are many examples throughout the book of incentives, but the one I found most interesting was the issue of drug dealers still living at home in chapter three. Levitt and Dubner use dealing crack cocaine as an example of an incentive to better yourself and make money through harsh working environments, but it is also an example of a basic economic principle called â€Å"tournament type markets†. They strategically use the example of dealing crack cocaine as a â€Å"tournament† type market by convincing the reader this is a â€Å"winner take all† field of work. Street-level drug salesman usually are motivated by the idea of getting promoted in the drug business, so they ultimately try to maximize the gang’s profits. Higher ranker officials however are more interested in making money since they are already in a position of high status. Overall in this market there are many players, but  one by one they are eliminated. At the end, a victor emerges and takes home the â€Å"prize† or money. As stated in the book, the top 120 â€Å"managers† in the Black disciples gang represented just 2.2 percent of the full-fledged gang membership, but took home well more than half the money. This is a â€Å"tournament† style market because these â€Å"managers† emerged from all the other competitors and are now high ranking, they won the â€Å"tournament† in essence. Overall I believe Freakonomics illustrates basic economic principles. Levitt and Dubner lay out many underlying themes in the book, Freakonomics, but there are many reoccurring themes throughout. The three major themes that I found throughout the book are: positive vs. normative analysis, incentives are the cornerstone of modern life, and the idea of â€Å"tournament† style markets, â€Å"winner take all†. These three basic economic principles are just a few of the major themes in the book, but I believe are enough evidence to convinced the reader that Freakonomics does cover major economic principles and is a book of economics. In all, Freakonomics is a brilliant book that incorporates everyday ideas into economic ones. It truly is a book about economics and the evidence given proves this. Works Cited â€Å"Freakonomics.† Freakonomics RSS. N.p., n.d. Web. 17 June 2014. Levitt, Steven D., and Stephen J. Dubner. Freakonomics: A Rogue Economist Explores the Hidden Side of Everything. New York: William Morrow, 2005. Print.

Paper – Sensory Marketing

English Paper Julien BECQUEVORT BAC 3 – Intermediate 1 2011-2012 English Paper Julien BECQUEVORT BAC 3 – Intermediate 1 2011-2012 The sensory marketing The sensory marketing Table of contents Introduction2 Sensory marketing2 Visual marketing4 Sound marketing5 Olfactory marketing6 Gustatory marketing7 Tactile marketing8 Personal opinion9 Conclusion10 Bibliography12 Introduction Even if one  does  not realize,  sensory marketing  is ubiquitous in  marketing campaigns and  it may explain  most of our  purchasing decisions. The soothing ambience  of a store,  pleasant odor  diffused,  attractive colors,†¦ can influence the customer’s decision.Sensory marketing can be defined as â€Å"a  marketing technique that  seeks  one or  more of the five senses of the consumer. Its aim is to  attract customers  by increasing  their welfare  in order to positively influence  their behavior  vis-a-vis a  product or a  point of sale†. To approach sensory marketing, I decided to begin by a short description of the topic. After, I will talk about the five types of sensory marketing : visual, sound, olfactory, gustatory and touch. To finish, I will expose you my personal opinion about the subject. Sensory marketingCompared with traditional marketing, the sensory marketing focuses more on the five senses : sight, hearing, taste, smell and touch. The sensory marketing creates around the product a multisensory atmosphere that boosts their attractiveness. According to specialists, the use of the five senses in a marketing campaign would allow companies to increase their sales by arousing customer’s emotions. Nowadays, with the growth of the supply for a product, it is very important for a company to differentiate itself from its competitors. We notice that more and more companies use the sensory marketing to do it.Despite the fact that Kotler stressed already in 1973 the importance of the atmosphere in a store, the sensory marketing has only really developed until the 2000’s. It is still a young aspect of the marketing strategies. But today, more and more marketing specialists attach importance to the sensory marketing because it is a great success. This success can be explained in two ways. On the one hand, sensory perception brings a comfortable feeling, a sense of reality that the consumer looks for because of the development of virtual in our society.On the other hand, the consumer looks for a sensorial experience with all senses and especially with a back to the nature in a context of increasing urbanization. But some specialists say it is unethical to play with people’s feeling and emotions in a commercial aim. In fact, the sensory marketing can be used in an abusive way, trying to manipulate the customer. However, it is not like â€Å"neuromarketing† that is completely unethical. This type of marketing consists in a study of the mechanisms of the br ain when it receives commercial stimuli.Professionals of marketing can adapt their advertising campaigns based on the results of the study. It’s difficult for consumers to not buy the product with this type of marketing. But concerning sensory marketing, if the consumer has been once fooled on a product because of a sensory marketing, he will not be fooled a second time. Today’s marketing would be a marketing based on the five senses at the same time. That is called â€Å"polysensorality† by the marketers. However, it’s really difficult to set up for most of products. Now, I will give you some concrete examples in order to better understand what the sensory marketing is.It would be interesting to diffuse a smell of hot chocolate in a chocolate department. This strategy, combined with an attractive visual aspect of the product, will guide the consumer towards the product. Moreover, tastings in stores can also increase the sales of the product. The consumer can be aware of the product’s quality, smell, texture, etc. Nature et Decouvertes is a pioneer among the sensory marketers. When we are in the store, all our senses are stimulated. For example, all the products are exposed and we can touch and test everyone. It is really entertaining for the clients.Concerning the smell, odours of essential oils are spread in the shop, and even outside of it. It makes the passers want to enter the store. Moreover, we can hear a relaxing music. People often buy a CD and essential oils to recreate this relaxing atmosphere at home. Nature et Decouvertes has well understood that the sensory marketing can increase purchases but also enhance the image of this brand. Visual marketing The visual marketing is used by the professionals of marketing since a lot of years. The beauty and the design have always been very important in the marketing.People are always looking for aesthetic. Colours and forms, department’s arrangements of a shop are im portant factors for the product’s success. It influences the consumers and triggers emotional reactions that play a role in the purchase decision. The sight is the most highlighted sense in a marketing campaign. The client has his first impression of a product, whatever it is, by the sight. Visual aspects are essential and sellers try to attract people thanks to the sight. For example, in an automobile showroom, everything is studied.The lighting, the colours and the positions of the cars can influence people who look for aestheticism. But the visual marketing has also evolved with new technologies. Nowadays, beautiful pictures are broadcasted on LCD or LED screens. In travel agencies, pictures of withe sand and blue seas scrolled on a screen and invite to evasion. People are more likely to push the door to enter the agency. Apple has also developed a strong visual marketing for its products. We can found the iPod, the MP3 players of Apple, in a wide range of colours.Before, the iMac was also available in different colours and the product was transparent in order to make the machine more pleasant. All the products of Apple are design and beautiful. Apple is specialized in the visual marketing because the brand has understood that the customer will choose more easily a product which is beautiful. Sound marketing The sound marketing is a recent side of the sensory marketing. Marketers have now understood that hearing is primordial in a communication campaign. The sound marketing must represent the brand and the product.It’s really important for a brand to have a specific music, a jingle or a voice which can allow people to identify the brand in question. Uncle Ben’s, U and Leclerc are linked to a specific voice that differentiates themselves from competitors. These voices play a role of jingle and the auditors recognize immediately the brand. Music is also used in stores and shops to sell a product. But it’s recent. Different studies have proven that music influence the perception of time and the customers stay longer and more easily in a store which trend music is played.According to these studies, a soft music, like classical music, encourages to stroll and relaxes the customers. The particular sound of a product is also used by producers hoping to differentiate it. For example, in the world of household electrical appliances, the sound of the buttons is different depending on the brand. But the most striking example is the engine’s sound of a Harley Davidson. No engine makes a noise similar to a Harley Davidson. This is one of the biggest selling points of the brand and it was studied during a long time by mechanics. Please, follow this link ttp://www. youtube. com/watch? v=31GBuRHxsDo&feature=fvwp&NR=1 Olfactory marketing Since more or less two decades, marketers have discovered that odour in an advertising campaign has a lot of influence on the purchase decisions of the customer. Before the 90â€℠¢s, this sense was totally put aside. It was very difficult to implement the olfactory marketing because the technologies did not permit it. Since few years, marketers have understood that the power of odours is something that they should not overlook as the olfactory memory is the most powerful.The olfactory marketing is very important to highlight a product or a brand. When we walk on the street, we can smell delicious odours coming from a restaurant, a bakery or store which sells coffee. All these odours attract the customers and trigger an emotional process that lost any sense of time. Customers like to go to shops and store where it smells good. It’s normal. Some brands like Nature et Decouvertes and Sephora have succeeded in attract the customer and the passers with odour. But olfactory marketing is not limited only to odours in shops and stores, it cans also be found within the products.For example, it’s important that a cosmetic cream smells good. In order to d ifferentiate their products from the others, it’s essential for a company to use different flavours. It’s the same for cleaning products. A lot of brands like Mr Propre, Carolin or Dreft use different scents for their cleaning products. These products do not only evoke cleanliness but also evoke evasion and pleasure thanks to the odours. A third example is the 3M company who has commercialized flavoured strawberry post – its. The target of this marketing’s type is essentially teenagers and especially young girls.However, olfactory marketing goes further and an odour diffuser, the â€Å"SmellBox†, was created to diffuse fragrances in a shop or a store. This box is connected to a computer and diffuses odours that are linked with the broadcasted pictures on the screen. Today, it is the most advanced application of the olfactory marketing. Gustatory marketing With this type of marketing, there are two possibilities  : either the consumer likes the pr oduct either he doesn’t like and doesn’t buy it. Taste marketing is often used in supermarkets where different brand representatives propose to taste new products.Clients appreciate this practice because they can judge the product for free. And this technique increases sales because people buy it after having tasted it so they don’t take a risk and know that they like it. Obviously, this marketing is usually used for food products. But there are some exceptions. Indeed, gustative marketing can be a good way to promote a product. For example, a jewelry demonstration accompanied by a chocolate fondue. Or we can also find candies in some stores. Moreover, gustative marketing is essential for toothpaste’s brands too.Today, the trend is traveling and people like new flavors of the world. There is a strong growth in sales of exotic spices and especially from Asia, very trendy at the moment. So, food industries have their gustative laboratories in order to taste new relishes depending on the trend and desires of consumers. Thus, this sort of marketing is not easy because we always have to adapt to the new flavors appreciated by people. So, there are gustatory trends that we have to follow all the time to satisfy customers. Tactile marketing This sort of marketing uses the touch to optimize sales of a product.This sense has more and more importance in communication campaigns, and professionals know it. Indeed, consumers need to touch the product in order to have a precise idea of its quality. For example, at the supermarket, customers like palpating fruits and vegetables and they think that they can evaluate their quality in this way. In fact, the touch creates a familiarity with the product. So, tactile marketing has a gigantic power and sellers have to use it in order to enhance sales. Moreover, people prefer going to a store which proposes to touch products, so this sort of marketing increase the number of clients.That’s why more and more enterprises look for textures appreciated by consumers. Today, for example, the trend is cashmere. Indeed, this textile inspires sweetness, comfort, protection, etc. As the touch refers to the qualities and functions of the product, the choice of the material and the form is essential. More the texture is successful, more consumers will want to buy it. We can well see this phenomenon in bedding store where people always lie on mattresses. Clients want to test the thickness and comfort, and prices become even less important. Food industries have also understood the advantages of this marketing.Children and teenagers like the combination of different textures as crunchy and sweet. For example, Danette created a new product to satisfy consumers : liquid chocolate accompanied by crunchy balls. We can also find chewing-gum crisps outside and liquids inside. Tactile marketing can also be applied for a service. Indeed, a hotel will be judged on the softness of the sheets, the thic kness of the towels, pillows’ quality, etc. If the client appreciates all of these things, he will have a good image of the hotel. So, the touch is a factor essential for product’s success. Personal opinionI have chosen this topic because I am really interested in the marketing sciences. I think that it is very important for a firm or a company to deeply understand how behave customers when they receive commercial stimuli. Otherwise, I would choose as master options marketing and management’s services. I hope that I will learn even more with the lecture of consumer’s behaviour. During my studies in management, we have seen lots of strategies and techniques to attract the customer to a product or service, but I think that the sensory marketing is the most interesting and is really booming.We can see more and more strategies of sensory marketing today. I think for example at the cover of the jam’s jars of Bonne Maman brand. The cover is squared with blue and white or red and white. Moreover, the writing on the label looks like handwriting. It really reminds jams of long ago. Another example is the development of the free distribution of new products in the street. When we walk on the street, we can see huge cars giving for example chocolate, cans of Coca-Cola, †¦ This is linked with gustatory marketing. Just yesterday, I went to a copy centre and the merchant had put an essential oil diffuser in the store.It was really nice to photocopy sheets in this atmosphere. Even if a copy centre does not need to use sensory marketing in order to attract customers, I think that it is a good initiative and it works. I will go back there to make photocopies. I think that more and more brand and retailers must use the sensory marketing. The customers asks for it, it is more sympathetic that our senses are requested when we do shopping or when we see an advertising. Moreover, studies and surveys have proved that the sensory marketing real ly influences the purchase decisions.It has to be developed by all the brands, if it is possible obviously. During the lectures of market research, we have seen lots of studies that showed that the marketing sensory has a lot of influence on consumers. For example, we have seen, supported by figures, that the purchases are more important if the music in the store is slow than fast. Moreover, if it is coupled with a nice odour, the amount of purchases is much more important. We have also learned that the light plays an important role in a restaurant. If the light is bright, the number of wine bottles purchased is higher than if the light is subdued.Per contra, the spent time in the restaurant and the amount of the bill is higher if the light is subdued. Recently, I have participated to a market research concerning the bookshop Libris Agora. We were asked during the study to analyse different odours that could be diffuse in the bookstore. It is typically a sensory marketing strategy. Personally, I am for a strong sensory marketing strategy. As I said before, it can attract lots of people to a store. For example, I like when trend and good music is played in a shop.I have already noticed that I stay more easily in a store where dance and electro music is played, maybe because I love this kind of music. Contrary to what my analysis says, I will never go to a store where classic music is broadcasted or maybe I will stay maximum five minutes. I think that it is because I am young and that does not attract me at all. Nevertheless, I can understand that people like this type of music and that classic music encourages people to stay longer in a store. One of the sensory marketing strategies that I like the most is the gustatory one.I really like to taste different products when I am at the supermarket or when I go to a fruit and vegetables seller. Usually, if the products are good, I put them in the cart. In order to further differentiate from the competition, brands a nd retailers should enhance their sensory marketing strategies. They should couple visual marketing with olfactory marketing, etc. However, the consumers must not receive too much sensory stimuli at once time. If it is the case, I think he feels oppressed and uncomfortable and he will certainly run away from the product or the store.Retailers have to find the right middle between the different strategies of sensory marketing. Moreover, the sensory marketing is not popular with everyone. I know some people who feel uncomfortable with odour of essential oils. I think that the big problem of the sensory marketing is to find the right settings in order to reach as many people as possible. Conclusion Throughout this report, I tried to explain what the sensory marketing is and how the five senses can play a role in the purchase decision. I also  tried to  give concrete examples  to  make this  report more understandable.We can see that in a context of an increasing supply, compa nies have to differentiate themselves from each other. It requires a very thorough marketing and more and more companies rely on sensory marketing to attract customers to their products. According to experts, marketing of tomorrow will be a â€Å"polysensory† marketing through which all senses of the consumer and prospect will be awakened. Nowadays, thanks to new technologies, this type of marketing is possible and some companies like Nature et Decouvertes use already this concept of â€Å"polysensority† marketing.The discipline of sensory marketing is now booming but it is very important to not oppress the customer with too much commercial and sensory stimuli. The sensory marketing must be carefully considered before being implemented. Bibliography http://marketing. oboulo. com/marketing-sensoriel-exemple-zara-h-m-killafornia-1 05054. html http://en. wikipedia. org/wiki/Sense http://fr. wikipedia. org/wiki/Marketing_sensoriel http://www. netpme. fr/marketing/704-marke ting-sensoriel. html http://www. journaldunet. com/management/dossiers/0606139marketing/cestquoi. shtml

Entertainment Law Essay Example | Topics and Well Written Essays - 4500 words

Entertainment Law - Essay Example The prime intention of the law concerning intellectual property is to defend the producers along with other creators involved in making intellectual based goods or services through providing them with certain time-restricted rights. The law relating to intellectual property aims at fostering fair trade which would in turn contribute towards making superior financial along with social advancements by a significant level (WIPO, n.d.). Discussion In order to determine the impact of intellectual property law upon the organisers, participants and spectators of festivals in the United Kingdom, it can be apparently observed that the aforesaid law supports the development of the UK in terms of encouraging innovation concerning the application of pioneering technologies in any business field. Furthermore, the law relating to IP in the UK tends to lessen the risks involved in inventing as well as generating new products or brands, stimulate innovation and most significantly facilitate greater financial growth at large. Thus, on a positive note, it can be affirmed that IP law plays a decisive role towards the development of the UK by a greater degree (Hargreaves, 2011). It is worth mentioning that IP law can be duly considered as one of the vital areas of business law which largely affects the organisers, participants and the spectators of the festivals in the UK. This can be justified with reference to the fact that there lays several issues related to IP that generally erupt while conducting festivals in the UK. In this regard, one of the crucial IP related issues can be demonstrated as the unofficial recording of any festival performance in the form of photography or sound recordings. From the viewpoint of the organisers relating to IP law, the protection of IP at any festival by adopting as well as executing effective IP tools comprising copyright, trademarks and performers’ rights can affect or impose extensive impact especially upon the organisers of festival s in the UK by a certain degree. In relation to the participants, the IP law can affect them in terms of providing warning to them and the media regarding the aspect that the traditional knowledge of the performances along with the displays of the participants are not adapted or copied without prior approval of the participants. In addition, it can be stated that apart from the organisers as well as the participants, the IP law also affects the spectators of festivals in the UK by a significant level. This can be justified with reference to the fact that the prohibition of taking the photographs of the participants who perform in the festivals might affect the spectators in the UK by a certain degree. As the spectators possess the desire to have a close view of their respective favourite participants in the form of performers, the restriction towards not providing such facility might eventually affect the spectators of festivals in the UK at large (Janke, 2009). Conclusion Thus, on the basis of the above discussion, it can be affirm

Replacing a Legacy AIS Application Research Paper - 1

Replacing a Legacy AIS Application - Research Paper Example This paper illustrates that Implementation of Accounting Information System (AIS) helps in the collection of transaction data of an organization and then processing them to form useful financial information which could be utilized in a more effective way by its users. The users include any of the stakeholders of a company. Like any other system, AIS is also a system consisting of different components which are interrelated to each other. Each of the sub-systems that make up the whole system performs several specific tasks which get integrated to be able to perform the ultimate task. Different components of AIS include People, Procedures, Software, Data, and infrastructure for information technology. The company is a publicly traded company must be requiring a lot of transactions to be carried out every day. Hence in order to increase its efficiency, new effective AIS is the necessity for the organization. New AIS, replacing the old inefficient existing AIS of the company, can prove a dvantageous for the organization. Well devised AIS could be beneficial for the company to effectively handle the increasing volume of information generated through different business transactions carried out every day by the company. Recently, with the advent of IFRS and its requirements, most of the organizations are required to be more cautious while preparing their financial statements. All the information represented in the financial statements is required to be relevant and realistically represented so as to facilitate proper decision making by its end users. New technologically improved AIS would help the company management to take various critical decisions which could have a significant positive impact on increasing the effectiveness of the management of the company, thereby increasing the profitability of the company. Various critical decisions that could be facilitated through the improved AIS of the company could be related to the accurate and precise information regardin g the outstanding debt of the company, the sales trend, the assets possessed by the company, cash inflows and cash outflows, performance of the different product lines of the company, the trend of returns generated by the company, etc. AIS would primarily serve three purposes associated with it. They are a) It would help to effectively store the data related to all the business transactions of the company, b) The data would be then processed into useful information which would facilitate various decision-making process and c) It would help in safeguarding the assets of the company through effective control mechanisms using AIS.

Ehtno-Drama (Drama Creation) Paper Baed on ELL(English Language Term

Ehtno-Drama (Drama Creation) Baed on ELL(English Language Learner) Interview - Term Paper Example He had to Google maps to know where to go and master the Google directions keenly not to get lost. This was because the one who brought him to America went back immediately because of problems that arose immediately after they took off from the Airport. On asking him on the initial difficulties he faced in America he said that he had problems in the English language which posed a barrier in communication. He describes an incident when he developed health issues and reported to the hospital in New Jersey. He was unable completely to communicate with the nurse at the reception. This made the nurse to confront him with a racist language. Telling him, â€Å"You immigrant why come to America and you do not know how to speak English?† Do you think we are terrorists like you? This he said made him to give up on the medication and go home. Lucky enough the health complication healed after some days without ant treatment. He further told me that from that day he enrolled for English lessons at a certain college in New Jersey so that in the future he could not face other discriminative encounters like that. He even stopped wearing his Arab clothes and wore like Americans to conceal identity on suspecting eyes. Further, on the question of a facing a different culture and how he overcome it he told me that despite the cultural differences between Qatar citizens and the Americans he coped well with it. He said that the American foods were different to theirs. Even living styles of the Americans were very different in terms of clothing, entertainment and interactions. He said that he observed that mostly the White Americans despise the Black Americans something that does not happen in Qatar. He said that the Qatar people are so friendly and welcoming to fellow citizens and foreigners. He had no problem with coping with American culture because with time he adjusted very well and become part of the citizens by making of many American friends who taught him

Cyber Terrorism Case Study Example | Topics and Well Written Essays - 1250 words

Cyber Terrorism - Case Study Example It is generally understood to mean unlawful attacks and threats of attack against computers, networks, and the information stored therein when done to intimidate or coerce a government or its people in furtherance of political or social objectives. Further, to qualify as cyber terrorism, an attack should result in violence against persons or property, or at least cause enough harm to generate fear. Attacks that lead to death or bodily injury, explosions, plane crashes, water contamination or severe economic loss would be examples† (Denning, 2000, p.1). Two other definitions of the term were created by the U.S. Federal Emergency Management Agency (FEMA) and Coleman whose definitions are as follows: â€Å"unlawful attacks and threats of attack against computers, networks, and the information stored therein when done to intimidate or coerce a government or its people in furtherance of political or social objectives† (Wilson, 2008); and â€Å"the premeditated use of disrupt ive activities, or the threat thereof, against computers and/or networks, with the intention to cause harm or further social, ideological, religious, political or similar objectives, or to intimidate any person in furtherance of such objectives† (Coleman, 2003). ... Statement of the Purpose The purpose of the current case study is to present details on cyber-attack that had persisted between Pakistan and India over their territorial conflict on Kashmir. According to Vatis (2001), â€Å"this conflict illustrates the vulnerability of critical infrastructure systems to cyber attacks and the increasing willingness of groups to target sensitive systems during political conflicts† (p. 5). The case study, therefore, enhances awareness on conflicting parties’ increased vulnerabilities to cyber terrorist attacks and, thus, should focus on installing increased protection and security measures to prevent destructive disruptions. Description of the Subject The case covered the conflict between India and Pakistan over a territory: Kashmir. Historical events have traced the geopolitical dispute after the British occupation in 1947. Armed conflicts were used through the years before 1998 to resolve problems, after that the dispute eventually reso rted to electronic warfare ranging from hacking incidents to web defacements that disrupted websites in both private and public sectors of India and Pakistan. Chronology of the Case Study The India – Pakistan conflict over Kashmir could be traced from the end of the British occupation in 1947, when, according to a summarized discourse: â€Å"two countries stood where there once was one. Pakistan separated with the intention of being the nation for the Muslims of India. Kashmir, the roots of the boundary dispute between the two nations, was an autonomous state under British rule and remained so post-partition, when initially given a choice between Pakistan and India. Eventually though,

Operations Management (please refer to uploaded file) Essay

Operations Management (please refer to uploaded file) - Essay Example On the other hand, a service supply chain deals with the intangibles due to which little physical inputs are required. Even the number of suppliers in a service-based supply chains are limited to an extent. Raw materials required by the internet service providers are limited to only offices and servers. The costs incurred by the service supply chain are less as compared to the product supply chain (Veronneau and Roy, 2009). Logistics is essential in product-base supply chain as the manufacturing industry highly depends on the transportation of physical goods from one destination to another. If the raw materials are not transferred from one place to another, the supply chain will be broken which halts the operations of the company and the company is forced to use different modes of transportation; land, sea or air. Furthermore, the cost of logistics is quite high depending on the size and weight of the raw material that is being moved (Min and Zhou, 2002). On the other hand, for a service industry logistics is irrelevant as the industry directly deals with the intangibles. The cost incurred by the product-based industry for logistics are utilised by the service-based industry for upgrading servers and for maintenance (Veronneau and Roy, 2009). This upgrade and maintenance allows enhancement in the speed and communication between the clients and the internet service providers. In a traditional product-based supply chain, finished goods are those products that have been completely transformed from raw material to products that are ready to be sold (Simatupang and Sidharan, 2002). For Coca Cola Company, a finished good represents a chilled bottle of coke ready to be served to the customers to meet their demand. In a service industry, a finished good represents quality service to the clients. This means that the customer should be satisfied with the internet

To what extent are the different economic reform outcomes in China and Essay

To what extent are the different economic reform outcomes in China and Russia (or plus Eastern Europe) due to the pace of reform - Essay Example Thus, with the help of liberal policies, these economies significantly progressed and grown to match up the growth of the western developed nations. The reform in China had taken place in 1978 but in Russia it took place in 1991. This essay tries to enumerate the contrasting reforming strategies undertaken in Russia and China. The essay will also elaborate the economic outcomes of the reforms. The reforms of China and Russia were both considered to be Communist reforms but the outcomes of the reforms were different in the two countries. After the demise of communism, the reforms of Russia took place at a relatively faster rate. However, in China, the free market oriented reforms took place gradually over years (Eich, Gust and Soto, 2012, p.5-8). The communist government of China has tackled these reforms over years. Thus, it is highly rational to analyze the causes and outcomes of the different pace based reforms in the two countries (Hanson and Teague, 2013, p.3-4). The centrally framed Five-Year plan model of China (1953-1957) was gradually abandoned in 1978, when the country transformed itself into a free market economy. The reforms were undertaken by the Chinese Communist Party for improving the competency of the Chinese economy in terms of a fourfold modernization path. The head of the Communist Party, Premier Zhou Enlai, had claimed that the reforms had aimed to improve the agricultural, industrial, service and technology sectors of the country (Eich, Gust and Soto, 2012, p.9). The first reform in China took place from 1966 to 1976, it was known as the Cultural Revolution. The reform was undertaken for improving the social status of the people of China. Ruthless political power and control imposed on the Chinese individuals were removed through this reform. The second phase of reform took place in 1970, when the officials of the central planning system complained about the inefficiency and weakness of the system (Joshua,

To what extent does international trade explain the remarkable success Essay - 1

To what extent does international trade explain the remarkable success of the East Asian economies since 1945 - Essay Example Deng Xiaoping, at the Third Plenum of the 11th Party Congress of the Chinese Communist Party (CCP) in 1978, criticized the Cultural Revolution and insisted that CCP should prioritize economic growth (Hess 22). This incident is widely recognized as the beginning of China’s financial reform period and undeniable economic wonder, as an outcome of which China became the second biggest and most vigorous economy in the world. This paper discusses the evolution of China’s financial reform. In 1978, Deng Xiaoping and his peers from the Party’s Central Committee gathered in Beijing and agreed that financial reform was the only solution to the political and economic problems confronting China (Tam 83). China, during that time, was an impoverished, strictly regulated agrarian economy on the brink of failure. The initial period of financial reforms was characterized by a marked growth of financial institutions. From 1978 to 1988, leading banks, including the central bank, were founded, as well as numerous financial agencies, credit cooperatives, and trust and investment firms at municipal, provincial, and central level (Zhu 1505). In 1983, two highly significant events occurred: first, the People’s Bank of China (PBoC) took on the functions of a central bank; and, second, PBoC’s commercial banking operations were divided into four state-owned, autonomous banks, popularly called the ‘Big Four’— the People’s Construction Bank o f China, the Agricultural Bank of China, the Bank of China, and the recently established Industrial and Commercial Bank of China (Hess 25). Institution building began in the initial reform period with the formation of a two-level banking structure. In 1995, central banking experienced a new push when a new policy on the PBoC was implemented that provided the central bank the legal structure to function under the headship of the State Council in a market-driven setting (Riedel and Jin 79). At

The Cause and Effects of the Great Depression Essay Example for Free

The Cause and Effects of the Great Depression Essay Many people speculate that the stock market crash of 1929 was the main cause of The Great Depression. In fact, The Great Depression was caused by a series of factors, and the effects of the depression were felt for many years after the stock market crash of 1929. By looking at the stock market crash of 1929, bank failures, reduction of purchasing, American economic policy with Europe, and drought conditions, it becomes apparent that The Great Depression was caused by more than just the stock market crash. The effects were detrimental beyond the financial crisis experienced during this time period. The first and most obvious known factor in the development of The Great Depression is the stock market crash of 1929. The Money Alert website states that, â€Å"When the stock market crashed in 1929, it didn’t happen on a single day. Instead, the stock market continued to plummet over the course of a few days setting in motion one of the most devastating periods in the history of the United States† (The Money Alert). Many investors would buy stocks on a margin where they would purchase the stocks with borrowed money. This was a great option for buyers when the stock market was on the rise. However, when the stocks plummeted, the financial institutions that had loaned the money for the stock purchase went to collect the capital that had been loaned out and were unable to do so. This, in effect, caused banks to lose money as a result of being unable to collect on the debt, and the investors were unable to collect their losses. In addition to private investors, banks and businesses were investing in margin loans as well. So, these poor investment strategies led the banking industry to lose the majority of their assets, including money from bank customers that had no knowledge that their money was being used for this purpose. Since no government regulations were in place to protect investors and banks in this circumstance, this ultimately led to the effect of the stock market crash, which paved the way for America to go into The Great Depression. The banking industry’s reaction to the stock market crash, would be the next major cause of the Great Depression. The banking industry as a whole after the stock market crashed was going bankrupt due to not being able to carry the â€Å"bad debt† that was created from using customer money to buy stock. Because the banks were out of money, they were unable to cover customer withdrawals from their bank, causing many bank customers to lose all of their savings. With the uncertainty of the future of the banking industry, many people withdrew all of their savings, which caused more than 9,000 banks to close their doors and go out of business (Kelly). Due to the effects of the Great Depression, and the collapse of the banking industry, the government created regulations to prevent similar failure in the future. For Example, the SEC, (or Securities Exchange Commission), which regulates the sell and trade of stocks, bonds and other investments was created as a result of The Great Depression. The FDIC (or Federal Deposit Insurance Corporation), was created to insure bank accounts so that that the consumer would be protected if the bank were to go out of business (Kelly). The Great Depressions effect on the banking industry led to many useful changes to the banking industry and helped restore confidence in banks in the American people. The next major factor that contributed to the Great Depression was the reduction of goods being purchased during the time period. After the stock market crashed, consumers from all economic classes in America were uncertain of the stability of the economy, and stopped purchasing consumer goods. The effect of not purchasing goods caused many companies to begin to produce a surplus, or an excess of goods, which caused companies to reduce their unneeded workforce (Kelly). Since so many people were out of work, they too were unable to purchase goods, and soon a domino effect was created and many companies went out of business. During this time period, many people purchased goods on payment plans, similar to the modern credit system we use today, and their inability to pay caused many companies to repossess the purchased goods. This caused companies to have additional inventory of products that contributed to the lack of need to manufacture additional products (Kelly). By this time, more than 25% of the workforce was now out of work, and due to the overproduction of goods and overstock of inventory, there weren’t enough consumers to purchase these goods (Kelly). Another major contributing factor to The Great Depression was America’s economic policy with Europe. During the midst of the depression, the government decided to create the Smoot-Hawley Tariff to help protect American companies by taxing import goods from Europe. The government initially created the Smoot-Hawley Tariff to protect America by making foreign agricultural goods more expensive than domestic products so that foreign goods would cost more than local grown goods(Kelly). Due to many revisions during the initial stages of the tariff, many other American businesses were included in its protection. The effect of the tariff on trade with Europe caused unstable relations with European countries. Also, many of the European nations began to boycott goods sold by American companies in an act of retaliation for the tariff (Kelly). Having this tariff in effect during the Great Depression caused a prolonged recovery in the American economy due to the decline in Europe purchasing consumer goods from America, in addition to the decline of domestic goods purchases. The final major contributing factor in the great depression was the massive drought that took place during the 1930s. Though the drought wasn’t a direct cause to the depression, it did, however, add to the turmoil that was taking place during this time period. The drought of the 1930s had a very drastic effect on many reigns of the United States which caused both economic and ecologic problems to the country. The economic problems caused by the Great Depression were mostly concentrated in the Mississippi valley, where farmers were unable to pay the tax on the land and most were left no choice but to sell their farms for no profit. This caused a decline in agriculture goods available in America, due to the lack of farming during this time period (Kelly). The ecological effects of the drought, combined with the effects of over-farming the land, caused the Dust Bowl. The Dust Bowl was caused by over-farming the land and not correctly rotating the crops. By not rotating the crops correctly, the top soil became damaged. Because of the damages to the top soil, the land became infertile, and many people were forced to abandon their land or sell off their property. The timing of the drought, along with the effects that it had on the economy, forced the Great Depression further into turmoil and made recovery even more out of reach for the country (Bonnifield). The stock market crash did, however, act as the match that lit the fire that was The Great Depression. Along with the stock market, the cause of the depression was also contributed to the banking industry’s inability to cover losses sustained during the stock market crash. Also, the reduction of manufacturing and purchasing goods caused a toxic cycle of workers not being able to work, in turn not being able to consume goods, which further sank the country into financial hardship. With the tariffs in effect with Europe, the consumption of America’s goods by foreign nations greatly decreased, which caused the country to fall further behind in recovery of the economic turn-down. In addition to these circumstances, the timing of the drought that occurred in this time period caused many of the farmers supporting our agriculture to fold, and created one of the largest man-made natural disasters in history. Careful of these factors shows that it took more than a crisis in the stock market to cause America to go into the greatest economic slump ever experienced in the history of our country.

IKEA SWOT, Porters 5 and PESTEL Analysis

IKEA SWOT, Porters 5 and PESTEL Analysis Jump to: SWOT, Porters 5  Forces, PESTEL INTRODUCTION IKEA has created its own brand name in the world of furnishing at an affordable price. IKEA strives to make a better life for many by offering wide variety of well-designed, practical home furnishing items at affordable prices. History IKEA was found in 1943 by Ingvar Kamprad in small village Agunnaryd , Sweden. Originally company sold the basic household goods at discount prices later kamprad start to sell the home furnishing and 10 year later IKEA opened its first showroom, clearly demonstrates the function and quality of its low-price products. In 1955 IKEA introduce its own Designing furniture and in 1956 flat packs and self-assembly were launch (which reduced production and transport costs) and in later year IKEA has opened 301 stores all over Europe and Asia which shows the success of company. Present In 2002, IKEA Group was worlds top furniture retailers. The total number of stores 301 operated by IKEA in 37 countries/territories. The IKEA Group itself owns 267 stores in 25 countries with 123,000 co-workers and generating annual sales of more than 21.5 billion euro (these facts are taken from IKEA website). There are wide range of products in IKEA stores from plants and living room furnishings to toys and whole kitchens. At IKEA their vision is to create a better everyday life for the many people what make IKEA as worlds top furniture retailers, matchless approaches of IKEA attract the customer whether its affordable price, portable furniture or the unique design in store, Swedish cafà © in the stores, child care facility in the stores SWOT Analysis of IKEA Strengths One of the strongest strengths of IKEA is their strong brand name: IKEA is widely known brand in Europe and some Asian countries. In 2002 IKEA was the worlds most famous furniture retailer. [  [1]  ] Unique selling point of IKEA is low prices and flat pack furniture which is economical for customer and easy to transport Exclusive furniture design catch the attention of the customer Cheap Prices of IKEA furniture offers value to Customer Exclusive furniture design catch the attention of the customer As published in Business Times Ikea catalogue is the third most printed book in the world after Bible and Harry Potter [2] Furniture are easy to assemble and easy to ship IKEA has Strong potential of Global sourcing Powerful advertising campaign IKEA has built its own brand name and consistently strives to maintain it   In mid- 1990s IKEA had launched a high profile advertising campaign in USA intending to raise awareness of the IKEA brand UK wide advertising campaign in September 2007 titled Home is the Most Important Place in the World using estate agent signs with the term Not for Sale written on them as part of the wider campaign Wallets for Oyster cards and tube map are sponsored by IKEA IKEA consciously runs advertising campaign to create brand awareness. IKEA maintain Long-term Relationship with suppliers IKEA has preserved long-term relationship with its suppliers. IKEA purchases products in high volume from suppliers which allows IKEA to keep their product prices low It has about 45 trading service offices in 31 countries. This enables them to develop close relationships with more than 1,350 suppliers in 50 countries Product improvement IKEA is actively taking initiatives in environment changes, they strongly cares about forest and support the suppliers to minimize the total impact on the climates by contributing in forest projects. Weakness Supplier dependencies One of the main weakness of the IKEA is that it is dependent on the supplier for its manufacturing their products By totally dependencies on suppliers IKEA convert its strength to IKEA does not manufacture anything itself and is heavily dependent on the supplier. By limiting the manufacturing facilities means more dependencies on the suppliers. Ikea furnitures need to assemble yourself may be its is unattractive to certain groups of consumers Store design can be confusing for those customer who need particular item Swedish design may not so appealing to other regions of world Major Reliability on European Markets 90% of IKEA stores are based in European regions and rest in America, Middle East and Asia , Ikea is limiting themselves to enter into the Competition can take benefit of IKEAs non existences in the other fast growing retails markets like America, Middle East and Asia by expanding their businesses. Quality and standards Its difficult to maintain high Quality and standards globally due to the size and scale of products People generally associate the low prices with bad quality of products and non durability Ikea furnitures not manufacture for lifetime Opportunities Expansion in untouched retails market IKEA should extent their business or stores from international to global market , by developing in other regions like Asia and Eastern Europe By expanding in fast growing retails markets IKEA can capture additional share in Asia and Eastern Europe Only 10% percentages of stores were in underdeveloped markets. Its an excellent opportunity for IKEA to expand and grow their businesses in the untouched markets Development in Ecommerce IKEA should enlarge their internet present in markets Fast growing virtual markets in the Internet revolution era gives an excellent opportunity to IKEA to enlarge their place in the online business all over the world like ebay , Amazon.com, Inc IKEA can expand their business by collaboration of local companies and suppliers. By developing E-commerce site and local company alliances gives an opportunity to achieve growth in existing business and can gain new acquisition In additional it will help to increase customer service satisfaction and customer feedback Also it can reduce the work pressure from store to certain level Design various type of Store It will be good opportunities for IKEA to try new outlay of store to easily find the particular products which will increase the growth sales and customer satisfaction Minimizing waste (IKEA and the new EU legislation on chemicals) IKEA avoids use of chemicals and materials that can be of any harm to people and the environment. All IKEA products for all markets, everywhere in the world will adhere to the chemical restrictions in the REACH legislation. Efficient use of materials IKEA strives to use fewest resources to make the best possible products, without having any negative effect on the functionality or the design or the look of the products. The main material used in the manufacturing of the products is wood, cotton, metal, plastic, glass and rattan and we work towards using as many renewable and recyclable materials as possible. Threats Impact of European economy As IKEA is predominantly present in European region, any adverse effects in this region will impact the business of IKEA. Major sales and purchasing are done is European markets. In order to avoid such situation, it needs to secure place in other retail market and increase awareness of the IKEA brand and products worldwide Competition Indirect threat of competition One of the fastest growing competitive retail market in Europe and other businesses regions of IKEA Difficult to preserve good quality and design at cheap prices when competition is increasing rapidly growing e.g. In USA Wal-Mart , room to go , kmart ,In Japan Nitori Co and MUJI Even average retailers are producing low cost values flat packed furniture, which can put tremendous impact on the IKEA. Advantages of competition Competition is aggressively offer similar product Most of retailers promising to serve on high quality of and service Educating customer on quality of woods, construction techniques and so on Competitions are offering free delivery of assembled furniture whereas IKEA is not giving any options to customer on the transportation Summary of IKEA SWOT ANALYSIS SWOT analysis describes IKEAs strengths and weakness, as well as encountering the threats with opportunities which will secure IKEAs place in the retail market Strength of IKEA group in the world of retail markets is their Vision IKEA strives to make a better life for many by offering wide variety of well-designed, practical home furnishing items at affordable prices which display their clear business idea.[3] IKEA buy massive from the suppliers and gain advantage of low cost product which is one of strongest strength of IKEA , as they can sale the finished goods in cheaper than competitors IKEA is good long term business relationship with the suppliers and weakness is the total dependencies on the supplier which can be the threat in their future business. Business Strategy of IKEA gives the Excellent opportunities to expand their services to the world widely and but by limiting their expansion only to the European and selected Asian countries can be biggest threats and can be advantage to the competitors due to the non-existences of IKEA Porters 5 forces analysis of IKEA Competition from Substitutes: HIGH The furniture retails market is on developing stage. Competition from Substitute it is high in the modern time people consider better products if it is costly. The switching costs are high and Substitute will be other brands supplier at high prices. Other options might be cheap furniture from local supplier. But IKEA can competitive advantage from low prices, unique design and flat pack furniture Bargaining power of buyers: LOW IKEA focuses on large segments and target individual customers young people aged around 20 to 40 years as in the modern world people prefers compact and foldable furniture so it is easy use and transport. IKEA products are affordable for everyone because of the low prices. There is high customer loyalty therefore low bargaining power of customers. One more reason of low bargaining power can the brand name of IKEA, consumer can buy the same furnitures from capitation but because of the IKEA trademark they prefer to buy. Furnitures Industry is growing tremendously, there is very high switching cost for the buyers and with the product differentiation is prime factors. Therefore Because of the brand and large collection of product the customer loyal and preference is IKEA Threat of New Entrants : LOW The Home Furnishings House wares Retail industry is developed markets and IKEA has its own reputation and experiences players in retail markets. It is very difficult to compete against with big players in the industry as to build to own status brand lots of resources such as unique design, technology, low cost products, infrastructure and human resources. IKEA having a very long experience in its field and it has established itself differently from competitors. IKEA stores and distinguished itself as a functional home products .In Retail industry, low cost and use new technology is very essential and IKEA spent years to establish this reputation .However for a new entrant it is difficult to get. Bargaining power of supplier: LOW IKEA deals with suppliers for Wood cotton, metal, plastic, glass and rattan. IKEA have more 1,300 direct suppliers and about 10,000 sub-suppliers in 60 countries and 28 distribution centres and 11 customer distribution centres in 16 countries. IKEA had set up its own code and conducts for the suppliers. Being a Multinational brand there is a competition among supplier for selling to IKEA. They purchase in huge volume of material from the suppliers at low cost IKEA buy massively from these suppliers to deliver in the European market The Bargaining power of suppliers is low as they can lose their one of biggest clients Rivalry among existing firms: HIGH IKEA competitors are mainly in the Home Furnishings House wares Retail industry and competition from Substitutes too high in the industry. Some competitors for IKEA such as Wal-Marts, TGT, kmart in Japan Nitori Co. Many manufacturers provide furniture with same functions and design. As published in Business Times we can take Example of TGT has recruited top designer Thomas OBrien to develop a range of low-priced furnishings and In Japan Nitori Co. has a lock on low-cost furniture.[4] Competition is putting a lot of resources to manufacture the same type of products Strategic Position of IKEA IKEA PESTLE analysis Political Factors Governments have put various taxes, duties and vat on IKEA products their constitutions in different countries. Changes in the government and trading policies can threat to IKEA For example Russian government has kept on hold all new investment and delaying unpredictability of the administrative processes for Mega-Samara mall sports in Russia because of the delay IKEA have to postponed the 30 new stores in the country[5] Awareness of political situation of every country where company is operating Important Many countries offers incentive to attract the foreign investment like Malaysia , china and Thailand IKEA has grown from a small company to largest home furniture retailer in the world, Political factors has direct impact and is interrelated on other aspect. Political factors can control the process of business and greatly impact on the operating industry. As IKEAs major business is on the European regions, it has to adopt the guidelines and policy formed by the EU. Economical Factors Interest rates and exchange rates have a direct impact on company. Some time foreign currency exchange fluctuation may be beneficial or un beneficial for IKEA Due to recession demand for home furniture declined as people dont have money to buy expenses products and customers go for cheap alternatives. Fluctuation in cost of raw material can be threat for the IKEA , as they dont produces on its own , but buy from whole seller Recession has impacted on all kind of industry more or less it has effected on IKEA In todays time global warming is important concern to every business should consider to reducing elements effect the environment Social Factors IKEA takes initiatives and founded a committed to invest in the social programmes on a global level which can give IKEA a recognized globally IKEA is proactively trying to fight against Child labour and give better life to children Everyone is trying to save and reduce the causes of global warming does IKEA is The IKEA contributed much in the society as they provide recyclable products and try to minimize the waste Technological Factors IKEA products are eco-friendly IKEA should consider natural resources like using solar power renewal energy usage and energy efficiencies One of Important aspect which should be take into account as a need of new trends in changing business styles and enhance the competitive advantage which development of E-commerce and entre the world of Online business (virtual markets) Legal Factors Governments may put a negative as well as positive impact on IKEA as it is operating all over the globe hence it may vary according to different countries. In 2004 Irish Government had implement law of restricting the maximum size of a retail outlet to 6,000 (units?) to save the small business but retails giant of home furnishing wants IKEAs plan to build stores in Dublin and usual size of IKEA stores is four time bigger caused the law be put up for debate. In Jan 2005 The Government has agreed to change the planning laws clearing the way for furniture stores such as Ikea to open in Ireland IKEA and the new EU legislation on chemicals IKEA avoids use of chemicals and materials that can be of any harm to people and the environment. All IKEA products for all markets, everywhere in the world will adhere to the chemical restrictions in the REACH legislation. Environmental Factors Product Development IKEA is proactively taking initiatives in climate change projects. As 50% of the raw material is from the forest, it strongly cares about forest. The effort is to leave minimum impact on environment. It contributes to many forestry projects and honour certification by the Forest Stewardship Council Erase the Waste IKEA believes in using Waste by-products generated due to manufacturing where possible. In 2006, IKEA implemented the EU directive on Waste Electrical and Electronic Equipment (WEEE) and IKEA stores now accept and recycle IKEA electrical produce and electronic devices. Customers can also return certain types of waste such as discarded packaging, spent batteries and low-energy bulbs for proper recycling and disposal. In 2006, IKEA stores and distribution centres handled 281,734 tons of waste, of which 81% was sorted for recycling reuse or energy recover. In the pursuit of recycling, as of October 1, 2008, IKEA USA no longer sells throwaway bags. IKEA products are recyclable and make minimum usage of polythene. Product Development IKEA is proactively taking initiatives in climate change projects. As 50% of the raw material is from the forest, it strongly cares about forest. The effort is to leave minimum impact on environment. It contributes to many forestry projects and honours certification by the Forest Stewardship Council Climate changing IKEA ensures that the products and resources are customized to reduce any negative impact on the environment. IKEA Group and WWF co-operate in projects at intended to reducing carbon dioxide emissions generated by IKEA operations.[6] Conclusion IKEA is well recognized brand for flat pack furniture and Swedish design in the world of furnishings, also they are leading retailers in globally. IKEA should explore their new opportunities into asian market as there is no major competition in flat pack furnishing and also due to over population in some asian countries flat pack can be eye catching for new customer as IKEA captured 90% of European . IKEA should seek to introduce new technologies to reduce use of wood.

Overpopulation :: Human Population

During the first 2 million or so years of its history the human population was a minor element in the world ecosystem, with at most 10 million members. In the New Stone Age, less than 10,000 years ago, the number of humans began to increase more rapidly. The rough equilibrium maintained before Neolithic times gave way when the human population developed agriculture and animal husbandry and no longer had to spread out in search of game. With the abandonment of a hunting-gathering way of life and the rise of permanent settlements and eventually cities, the human population underwent dramatic growth. By the beginning of the Christian era it had reached 250 million, and by 1650, half a billion. Growth of population during 20th century was very rapid. In 1994 the total world population was estimated at about 5. 6 billion people. It increased nearly by 4 billions of people during past 100 years. The most significant world trend is that death rates are currently falling in poor and rich countries alike, while birthrates remain high in most poor countries and low in most rich ones. Exceptions are the generally higher death rates of Africa and the high birthrates of the rich oil-producing countries. The most populous countries, in descending order, are China, India, the United States, Indonesia, Brazil, and Russia. The U.S. population totaled about 260. 8 million in 1994. In the 1990s about 4. 1 million children were born annually in the United States, and more than 2. 1 million persons died yearly. The greater number of births is due in part to a fertility rate that has increased by nearly 20 percent since the mid-1980s. International immigration, both legal and illegal, is another major element in U.S. population growth. Legal immigration has recently amounted to about 1 million per year; illegal immigration is thought to be several hundred thousand. In China, the world's most populous country, the 1994 population was estimated at nearly 1. 2 billion, more than double the 1953 census population of 584 million in mainland China. China's annual increase has been estimated at 1. 1 percent annually. India's population of more than 911. 6 million people (1994 est.) is increasing faster than that of China, and if present trends continue, it will soon catch up with or surpass China. Since the disintegration of the USSR, Indonesia and Brazil are now the fourth and fifth most populous countries, with 1994 estimated populations of 199.

religion Essay -- essays research papers

My Religious Odyssey You can take the girl out of Catholic School†¦ Most people grow up with some type of belief system. Judaism, Christianity, Islam and even Agnosticism are some examples. It wasn’t until I had a child that I realized that religion was just man’s way of explaining God. Even as a kid, however, I always believed in a higher being. Not just because of my very heavy-handed Catholic upbringing. I questioned many things about my religion. Since I loved science, I was confused about how the â€Å"Big Bang† and Adam and Eve coexisted, but I always knew that God existed. I had no scientific irrefutable evidence – I just had faith. You know how they say everything you ever really need to know you learned by first grade? Well it wasn’t until I had both my faith and my life tested, that I fully came to realize that one’s spiritual journey in life doesn’t have so much to do with what religion one surrounds herself with, as much as the faith that one has in God. Faith is what defines a personâ€⠄¢s spirituality as opposed to specific religions. I was raised in a Catholic upbringing. I grew up in Chicago, which has the second largest archdiocese in the U.S. I was baptized as an infant at St. Sabina’s and attended high school at Mother McAuley Liberal Arts, run by the Sisters of Mercy nuns. Catholicism is a religion steeped in ritual and tradition and so I vividly remember my first holy communion in the first or second grade, and my Confirmation, when in the seventh grade I reaffirmed my decision to be both a Catholic and a Christian. I also remember the many hours of study, every year, in religion classes that were required in each grade level. I had cousins who weren’t Catholic who spoke of religion classes taking place only in Sunday school. I did not have Sunday school. I had Monday, Tuesday, Wednesday, Thursday and Friday school. Every class attended mass at least one other day during the week, in addition to Sunday. I remember learning how to pray the rosary beads and knowing certain holy days and saints, important to the Catholic religion. We also participated in confession, where we told a priest about our sins and transgressions, and he gave us a penance to absolve us from guilt. If one is looking for a pomp and circumstance religion, then Catholicism is the one for you. Since about eighty-five percent of the school also attended the church, th... ...c ministry featured both the gospel music I had come to love at Lincoln Heights in addition to the hymns I grew up with at St. Margaret. The pastor believed that he was a sinner just like me and spoke of the church in terms of God’s people, versus a building. Most importantly, I felt a strong connection between myself and God and the other worshippers. They seemed to sense that I needed assistance in my spiritual odyssey, and reached out to me. Most of the congregation had attended Carmel Presbyterian for generations and were looking for new people to help rejuvenate the church. They openly embraced my family and we happily reciprocated. I had finally found a church home. Throughout my religious odyssey, from Catholicism to Baptist beliefs to Presbyterian creed, faith in God remained the one consistent sustaining value in my life. Faith helped me determine that religion by itself is not the most important qualifier in a person’s spiritual odyssey. Faith also helped me to develop a closer relationship with God and is what helped fortify my spiritual growth throughout difficult life struggles. Faith in God versus faith in religion is what most matters on life’s spiritual journey.

Consolidation in Banking Essay

1.Introduction In our daily life , we can receive banking service from banks and branches whose headquarters may from different city, region or nation . This is because banking consolidation has improved banking expansion in the past decades. It is a fact that many banks regard consolidation as a strategy for their growth and development in new market . Consolidation usually consist of mergers and acquisitions. The former one means two independent companies combine as a new one ,the latter one means a bank has a controlling interest in other firms but they still remain independently. (Heffernan, 2005 ) The following part of the article will be divided in third parts. The first part will focus the reasons , trends and effects of consolidation in banking industry. The second part is mainly about the benefits and disadvantages of consolidations for the industry and society. The last part is evaluation about challenges consolidation bring to the regulators. 2.Consolidation in Banking Sector 2.1. Reasons for Consolidation in the Financial Sector There are lots of issues concerning about banking consolidation. The basic one is the motivation. Why banks want to mergers and acquisitions? DeYoung, Evanoff and Molyneux think the primary reason for banking consolidation is financial and technological innovations in the industry ( DeYoung, Evanoff and Molyneux,2009) . This is concerned to be a significant factor because after a wave of new technology, the structure in the industry will change since all banks make changes to fit to innovations. Thus many small banks struggle to survive or go bankruptcy after innovations, finally they decide to consolidation to get better development. To the larger banks, they are stronger in competition, they are willing to consolidate with those smaller banks to be more competitive in the market . However, Researches show that technologies spread to small banks rapidly because of third-party technology vendors and decreasing costing of technology delivery in recent years. (Frame and White ,2004; cited in DeYoung ,2007 ). Therefore this cannot be regard as an significant reason now. Some researchers argue that the better explanation for banking consolidation is the relationship paradigm between market power and profitability (market-power theory). (Shepherd ,1982 and Berger ,1995. Cited in Santillà ¡n-Salgado ,2005 ). They address that in banking industry, â€Å" firms with large market shares can reach the minimum economic scale of operations to develop a differentiated base of products which can be priced at a premium to obtain extraordinary profits(efficiency-structure hypothesis).† ( Santillà ¡n-Salgado ,2005, p85).Due to this reason, in order to earn more profits , banks want to increase market shares. Mergers and acquisitions are the most important way for corporate restructuring and enlarge corporate scale in new markets.

Critique an Article

Introduction In order to benefit and fully understand what exactly a certain article is researching or auguring it needs to be analysed and critiqued to the point of understanding so to demonstrate this, the author of this material is going to analyse and critique the article, Factors influencing the food choices of Irish children and adolescents: a qualitative investigation. To achieve this in a well structured, well laid out piece of literature the author will use a checklist devised to critique a qualitative research study, in which it will be clear to recognise under appropriate headings.To conclude this assignment the author will mention any difficulties or problems that occurred through out the assignment. Title The title is very short but clearly states what the article is about. Parahoo (2006) mentions that the title should indicate the exact area of study and mention the population from who the information was collected. The title also is very informative with regards to the research method used as it's clearly stated. Author As indicated on the article, the authors have well recognisable qualifications.Amanda Fitzgerald is from School of Psychology, national University of Ireland, Galway, and is also corresponding author. Caroline Heary is also form School of Psychology, National University of Ireland, Galway. Elizabeth Nixon is from School of Psychology, Trinity College Dublin, Ireland and Collete Kelly is from the School Of Health Sciences, National University of Ireland, Galway, Ireland. Abstract There is an abstract as such but titled summary which acts as the same purpose, as Parahoo (2006) states that an abstract is a short summary of a study.The research problem being that there is relatively little research done to explore the factors that influence the food choices of children and adolescents form their point of view is mentioned in this summary. The methodology of this study uses focus group discussions of 29 young people, in different age g roups, ages ranging from 9-10, 13-14 and 16-18 years. From these discussions an inductive thematic analysis identified three key factors influencing food choices.Parahoo (2006) suggests that the abstract should mention the main findings which are referred to in this summary as, that their were developmental differences between children’s and adolescents perceptions of factors influencing food choice. Statement of the Phenomenon of Interest The phenomenon of interest is stated in the introduction as the author clearly mentions that this study was to understand the processes used to make food choices from the participants perspective.The researcher has mentioned that few studies have set out to qualitatively examine young people's own views so this is an indication that the researcher wants to explore the participants own experiences through a qualitative method i. e. Focus groups. The philosophical underpinnings are clearly that the author has identified that few qualitatively studies have been carried out to examine the factors influencing the food choices of Irish children and adolescents from their own perspective. Also the researcher wants to access how they interact with others in the environment about food choices.Purpose The purpose of this study was evident from the title and clearly explained in-depth through out the article. The purpose of this study was to explore differences between children’s and adolescents’ views regarding influences on their food choices. The researcher doesn't go too much into detail about how this research helps nurses but does mention that this study has useful implications for clinicians. Overall the use of the information obtained in this research would be of use to nursing in nutrional education for similar each groups in hospital.Method The researcher obtained the information from the participants using semi-structured interviews to guide focus group discussions. The use of focus groups is very suitab le in this qualitative study. Parahoo (2006) mentions that choosing focus groups as apposed to individual interviews helps to get more in-depth information from the participants' experience about a certain topic, it aids the researcher to get a wider view from all different experiences and leads participants to freely discuss and share their ideas.The use of focus groups enabled all the participants to share their own experiences and opinions about the phenomenon. Sampling The researcher mentions the participants selected and states the ratio of males and females and gives the age groups. The location or venue isn't mentioned at all. Purposive sampling is indeed used and as Parahoo (2006) points out that researchers use this type of sampling as they select the most appropriate candidates to be able to answer the questions being asked.The questions being asked were aimed at children and adolescents so the aged group selected was between 9-18 years, so they were suitable. Data Collect ion The data collected is focused on human experiences as the researcher mentions the use of focus groups which were semi-structured to guide the participants to share their own ideas. The focus group discussions were tape recorded, transcribed and double- checked for accuracy. Ethical approval was obtained from the research ethics committee and parents had to provide written consent as well as consent from the participants themselves.The researcher didn’t mention if data saturation had occurred but did mention that following the inductive analysis procedure, categories emerged following repeated readings of the transcripts which identified key concepts. The researcher explains how the data was obtained using an inductive analysis procedure that were transcribed resulting in emerging categories. Data Analysis The focus group discussions were analysed separately and the researcher explains that an inductive thematic analysis was used and explains what this method does.The rese archer has remained true to data by using semi-structured interviews which are used in qualitative research and also by using direct quotes which in-riches the data. The researcher does not give direct headings and emphasis to the creditability, audibility and fittingness in the article but they are evident from reading the article. Credibility According to Parahoo (2006), credibility is when a study carried out shows the participants ideas from their perpespectives about the research.The participants do recognise the experience as their own as they explain their answers using scenarios. Audibility Audibility refers to the data produced in a certain study that enables readers to understand the original methods and conclusions used in previous research ( Parahoo, 2006). The reader can follow the way the researcher has carried out the research as the researcher sticks to the qualitative method used to collect information from the participants, through semi-structured interviews.The re searcher does mention that the research process used is that of a qualitative process. Fittingness The findings can be applied to people outside the study as the researcher mentions that this study gives a detailed account of young people's food choices from their view points so this information can be used to help other people in understanding. The results can benefit parents along with health care workers, working with that age group, towards building nutrition among children and adolescents.The researcher clearly states that the data in this research piece does support the compatible use of an integrated theoretical framework as its based on the Social Cognitive Theory (SCT) and ecological theory so young people's food choices can be explained, as the researcher wanted to understand how the participants engaged with others in their environment about food choices. Findings The reader can gather that the findings are broken down into three different categories, intra-individual fac tors, intra-familial factors and extra-familial factors. The researchers use of semi-structured interviews long with direct quotes containing scenarios made the data more rich. In the introduction great amount of detail is given to mention about other research and interventions. The researcher highlights that the results from this study helps in previous research. Also mentioned was that other research had found similar ideas among young people. Conclusions, Implications and Recommendations It provides a clear conclusion from the in-depth data received from young people about their perceptions of factors influencing their food choices and gives us an understanding of differences between the age groups preferences.The researcher does state that the findings are useful in passing on information to nutrition education providers with regards to the factors that do effect children and adolescents food choices. As mentioned previously, its not out rightly stated in this study that the fin dings are made explicit to nurses but one could argue that the findings can be used by a registered nurse in providing nutritional care to this age group. Conclusion This article was very informative and the researcher did make clear from the very beginning, the research method used.This research study was made more rich and descriptive through the use of direct quotes to describe scenarios. This research study had many strengths as well as limitations. The format in which the summary was presented wasn't very appropriate as its font size and style made it hard to read. Also the researcher failed to mention the exact location and venue where the focus groups took place, along with that, the ratio of girls to boys wasn’t equal, 13 boys to 16 girls.No opt out option was mentioned to the participants. The researcher did use explanations very well as certain terms were defined but too much detail was given in the introduction and discussion. Also too much referencing was used in one paragraph in the introduction. Overall this assignment made me aware of the procedure and method involved in critiquing an article and helped me understand the research process in general.

Evaluate the Current State of the Economy Essay

Labor market conditions are important especially for the following categories, businesses, individuals, and governments. The nation’s labor market conditions are constantly monitored by statistical analysis, unemployment rate being the primary metric. In April of 2014, the unemployment rate fell from 6.7% percent to 6.3% percent (Bureau of Labor Statistics. May 2014), which was the lowest rate since September of 2008. Since January the unemployment rate had been somewhat flat, but in April 2014 it dropped. However in April, the labor force additionally dropped by 806,000 (Bureau of Labor Statistics, May 2014) meaning the current ratio drop from 6.7% to 6.3% comparatively remains approximately the same as the constant trend. In other words, because of the decrease in workforce, the drop in unemployment may be partially a result of the decrease in workforce. The consistent level of unemployment makes shifts on AD and AS curve minor. When unemployment decreases, as it did in April, a correlation linking the drop in unemployment to an increased demand of goods and services can be made. This increased demand requires the productivity of companies to increase to meet the supply deficit, creating more jobs for individuals. With a greater demand for goods and services, there is a greater need for people to produce them, therefore a decrease in unemployment. Additionally, the decrease in unemployment means household income will improve, providing them with more disposable income. As noted above, because of the increase in demand (seen in the decline in the unemployment rate), a direct correlation can be made to an increase in supply, though delayed. The increase in supply increases the number of new employees as employers look to meet the demand for goods and services, shifting the AS  curve to the right as well. In most cases unemployment remains constant, but in US, the high unemployment rate (compared to the past) can have a negative effect on the economy. The steady unemployment rate can reduce the supply of labor in the economy, as unemployed people become discouraged and stop looking for jobs. This would shift the aggregate supply curve to the left. Also employers may use the threat of unemployment to cut wages, exploiting their workers. Expectations The great intangible factor directly affecting the economy currently is people’s expectations for future economic growth. These economic expectations influence the economy greatly. If businesses and households are more optimistic about the future of the economy, they are more likely to buy large items and make new investments, increasing the aggregate demand. The AD can change in a variety of ways. Peoples expectations causes them to spend less or be forced to cut spending, it causes the government to cut its spending, and it causes businesses to be more money conscious when choosing what their investment in goods will be from other companies. As a gauge, many people look at the gross domestic product (GDP), the broadest measure of economic activity, which grew at a 0.1% annual pace in the first quarter of 2014 (U.S. Bureau of Economic Analysis, April 2014). This is slow growth compared to recent annual rates of 2% to 3% (U.S. Bureau of Economic Analysis, April 2014). Many think the slowdown was caused by the long winter felt throughout the country. These slow growth rates shift both the AD and AS curves to the left, as consumers and business feel the affect or people’s â€Å"wait and see† attitude in economy. Assuming this is all weather based, the economy should bounce as household moral improves with the warmer spring and summer weather. Consumer expectations are also reflected in their spending. Consumer spending rose 0.3 percent last month after a downwardly revised gain of 0.2 percent in January (Mutikani, Lucia, March 2014), positive for now, but on a larger scale reports show the slowdown in real GDP growth is reflected in the downturn in exports. The exports of industrial supplies and materials as well as foods, feeds, and beverages  declined after increasing in the fourth quarter of 2013. (U.S. Bureau of Economic Analysis, April 2014). Additionally, imports have also declined by 0.4 percent in April, after increasing 1.8 percent in the first quarter of 2014 (Bureau of Labor Statistics. April 2014). The April drop was the first monthly decrease since the index fell 0.9 percent in November 2013 (Bureau of Labor Statistics. April 2014). Import prices also fell 0.3 percent over the past 12 months and have not recorded a year-over-year advance since the index increased 0.9 percent from July 2012 to July 2013 (Bureau of Labor Statistics. April 2014). There drops in the US economy are felt in the household sector through the implementation of monetary and physical policy which are used to combat economic declines which directly affect consumer’s expectation and spending habits. Consumer Income As mentioned above, consumers are still buying things. Consumer spending continues to be a bright spot, growing at a 3% annual pace. (Mutikani, Lucia, March 2014). This occurred even though prices of goods and services bought by U.S. residents rose 1.4 percent in the first quarter, after rising 1.5 percent in the fourth quarter of 2013. Both energy prices and food prices turned up. Excluding food and energy, prices increased 1.4 percent in the first quarter after rising 1.8 percent in the fourth quarter (U.S. Bureau of Economic Analysis, April 2014). This illustrates the shift in AD tow the right. Meaning consumers are willing to pay higher prices at current production rates. The increase in consumables indicates consumers have more disposable income to spend on goods and services, and they are not choosing to save. Personal income and personal saving statistic showing that personal income adjusted for inflation and taxes increased 1.9 percent in the first quarter, compared with 0.8 percent in the fourth quarter of 2013 (Mutikani, Lucia, March 2014). Incomes also rose 0.3 percent last month after rising by the same margin in January. Additionally, inflation has remained low. Combining  these factors, consumer spending, price increases, low inflation, increased personal income, will inevitably be forecasted by business as indicators to increase production. Increased production also increase supply, shifting AS to the right as business attempt to meet consumer demand. Interest Rates Interest rates in the United States are the lowest they have been in years. This indicates the policy and stance taken by the government for lending money. The government is trying to entice consumers to file for loans as well as encourage banks to lend and approve loans. With interest rates this low and consumer income increasing, one would expect consumers to increase their buying of more significant items. The aggregate demand curve shows, at various price levels, the quantity of goods and services produced domestically that consumers, businesses, and governments are willing to purchase. The increase in demand for low interest loans would shift the AD curve as a shift to the right. Domestically, the Federal Reserve expected to remain in a â€Å"wait-and-see† mode, hoping to get a clearer picture of U.S.’s future economic strength (Kurtz, Annalyn, April 2014). Moreover, the Federal Reserve has been buying bonds to stimulate the U.S. economy on and off since 2008, but the central bank is now gradually bringing that program to an end. The withdrawal process is expected to reduce bond purchases to around $45 billion a month (Kurtz, Annalyn, April 2014), and this process potentially will shift the nations monetary policy to focus more on interest rates rather than adjustments to the monetary base. These changes to the interest rates will impact capital goods decisions made by consumers and by businesses. Lower interest rates will lower the costs of major products, such as houses, and will increase business capital project spending because of the reduction in long-term investment costs. Such changes will move the aggregate demand curve will down and to the right. But, in the event of an interest rate hike, the higher real interest rates  will make capital goods relatively more expensive and cause the aggregate demand curve to shift up and to the left. Recommendations America’s recent financial crisis and the anticipated future economic outlook can be traced back to 2007 when the U.S. housing bubble burst. The bank failures created a dominos affect, creating an economic meltdown in all sectors of the US economy. Despite government attempts to help the situation, the economy has slowed and has slipped in and out of recession. As a result, the current government policies have not been effective, creating hesitations in consumer spending. Since 2008, the actions taken by the Federal Reserve have put the U.S.’s economy in jeopardy. To stem the economic slide of the U.S. housing collapse, the Federal Reserve has printed off trillions of dollars and has increased government spending in the economy hoping the influx of cash will jump start economic activity. But is has had an inverse affect. This dilution of the monetary base has diluted the value of the U.S. dollar (USD) domestically and internationally and has caused concern of consumer spending in the loanable funds market. Consumer spending is a 69% of the US GDP (The World Bank, 2013). An increase in spending would stimulate additional demand for products. With an increase in demand, business would increase productivity resulting in an improved GDP and lower unemployment. Additionally, in 2014 one of the greatest uses of a consumer’s income is to pay health care costs. The Bureau of Economic Analysis noted that the increase in health care costs was driven primarily by the implementation of the Affordable Care Act. Removing the Affordable Health Care Act will improve consumer spending, as their disposable income percentage will increase. When the financial crisis began in 2008, the U.S. national debt stood approximately at $10 trillion. Based on the US Treasuries own figures, the national debt will reach be close to $20.0 trillion by the end of this decade (US Treasury Department – Treasury Direct, 2014), greater than our nation’s GDP. Reducing government  debt takes a long time, especially with the current international influences (China, Japan, EU). A fiscal policy to increased taxes and reduced government spending would be a place to start. Additionally, a reduction in monetary base will again, strengthen the USD internationally, helping facilitate and increase import/exports. Part 2: Evaluation of Recommendations Keynesian Perspective: Based upon the thorough analysis completed above, the Keynesian model is an appropriate mechanism for stimulating an economy that is growing but at a much slower rate than what is typical during a period of economic expansion. After a couple of years of substantive growth, the numbers for the first quarter of 2014 showed a GDP increase of just 0.1%. While the unemployment numbers continue to show a decline. While stubbornly remaining at 6.7% nationally through April, the most recent numbers show significant decline to 6.3%. The mortgage interest rates fell recently to 4.29% as the housing market has slowed down recently. While the Fed is beginning to slow down buying treasury bonds, it will continue to keep interest rates low until all signs point to GDP growth returning to a normal rate of 3.28% annually. Those numbers are indicative of annual GDP growth rates from 1948 to 2009. The first quarter of 2009 saw the economy shrink by nearly 5% following the market collapse and the bank bailouts just before President Obama took office. Subsequently, the bailout of GM and Chrysler in 2009 also impacted the economy as well, but was necessary to save the industry and jobs in Detroit and elsewhere for parts manufacturers and suppliers. The risk of course was the loss of more than a million jobs, but in the end the loss was $10.5 billion in taxpayer money not repaid by GM. Classical Macroeconomic theory assumes that market conditions will sort themselves out, but the confluence of catastrophic economic issues such as: the real estate market collapse, bank insolvency, the stock market collapse and the auto industry bailouts meant looking at long-term solutions would  not provide the confidence in the markets and consumers alike. Short-term or stop gap measures needed to stem the downward spiral to depression and economic contraction were and are required to right the economic ship. Keynesian economic theory is more prone to acceptance of government stimulus as it relied on government spending during economic downturns. They Keynesians believe that the economy is made up of consumer spending, business investment and government spending and because of this, Fed monetary policy adjustments should be made to promote banks to make loans, businesses to invest in growth and expansion and consumers to have more buying power due to lower interest rates. When consumer spending is decreasing, the Keynesian theory believes that the government spending can help with economic growth. The current course of action taken by the Fed and the President should be continued for the foreseeable future until economic conditions stabilize back to the norms over the last 60-plus years. Once GDP growth returns to expansionist highs and inflation begins to rise, there may be a need to take corrective action again to slow the economy down, but for now that is not an issue. Since economic growth is lacking, government intervention is needed to help regulate and jumpstart the economy. This will allow banks to lend more, businesses to invest more and households to spend more. It is crucial for these three entities to do as such since it will help the economy grow and progress. Classical Perspective: A portion of the AS curve that is almost vertical is associated with a real GDP rate that fully employs a nation’s resources. At a rate of output, the nation has reached the limitation of its short run capacity, so an attempt to increase employment or output beyond this rat would result only in a higher aver price level. The theory is built on the fact that in the long run, a nations move gradually and automatically moves toward full employment. This inexorable like movement toward full employment is the  result of supply and demand forces that cause prices (wages, interest rates, and exchange rates) to adjust so that markets clear. And after enough time, the market will settle the supply and demand in all markets, and thereby eliminate any imbalances, such as employment. Since many classical economists do not believe that government spending gives power to the public sector and decreasing the private sector, they do not fully agree with too much government spending as it ex ploits a lot of economic resources. Example: â€Å"Suppose a nation had excessive unemployment. Classical economist would agree that a major cause of the unemployment was an average real wage rate that was above equilibrium. At this wage rate the amount of labor supplied exceeds the amount demanded, resulting in unemployment. The excessive supply of labor would put downward pressure on real wages. Falling real wages would then have two reinforcing affects that acted simultaneously to bring the labor market back into equilibrium. First, lower real wages would increase the incentive for businesses to hire workers; second, they would reduce the number of individuals in the workforce. For instance, instead of looking for work, some individuals might stay in school or remain homemakers. If real wages fell the amount of labor supplied would equal the amount demanded and unemployment would be solved.† (Marthinsen, John E. (2007)) The classical perspective emphasizes on the belief that government spending is detrimental to the economy and that the market itself is self-sufficient and can automatically adjust to increases and decrease of employment, consumer spending, business investment and so on. The current government policies have not been effective and when looking at it from this classical perspective, it might be necessary for the government to step back and let the mark equilibrate itself. References: Bureau of Labor Statistics. (April 2014), U.S. Import and Export Price Indexes Retrieved from http://www.bls.gov/news.release/ximpim.nr0.htm Bureau of Labor Statistics. (May 2014), Labor Force Statistics from the Current Population Survey Retrieved from http://data.bls.gov/timeseries/LNS14000000 Conerly, Bill (2014) Economic Forecast 2014-2015: Looking Better With Help From Oil And Gas Retrieved from http://www.forbes.com/sites/billconerly/2014/01/22/economic-forecast-2014-2015-looking-better-with-help-from-oil-and-gas/ Congressional Budget Office, (February 2014). The Budget and Economic Outlook: 2014 to 2024 Retrieved from http://www.cbo.gov/publication/45010 Kurtz, Annalyn, (April 2014). U.S. Economy Slows to Stall-Speed Retrieved from http://money.cnn.com/2014/04/30/investing/gdp-economy Marthinsen, John E. (2007) Managing in a Global Economy: Demystifying International Macroeconomics. Mason, OH: Thomas Southwestern Mutikani, Lucia (March 2014). U.S. consumers lift spending, but sentiment slips. Retrieved from http://www.reuters.com/article/2014/03/28/us-usa-economy-idUSBREA2R0UB20140328 The World Bank. (2013). Household final consumption expenditure, etc. (% of GDP) Retrieved from http://data.worldbank.org/indicator/NE.CON.PETC.ZS U.S. Bureau of Economic Analysis, (April 2014). National Income and Product Accounts Gross Domestic Product: First Quarter 2014 (advance estimate). Retrieved from https://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm US Treasury Department – Treasury Direct, (2014). Historical Debt Outstanding – Annual 2000 – 2012 Retrieved from http://www.treasurydirect.gov/govt/reports/pd/histdebt/histdebt_histo5.htm