The European Dimension Of The Cold War - 1458 Words

The Cold War between two rival super powers – the young United States of America and the Union of Soviet Socialist Republics – was an inevitable one. The relationship between the former war allies had begun to dissolve during the Second World War and eventually came to blows in 1947. First, it’s important to note that the Cold War was something that was only between the USA and the USSR is a fallacy. David Reynolds’ piece titled The European Dimension to the Cold War is a historiographical piece that details how the American view of the struggle being just between the USSR and the USA as they â€Å"eye each other with watchful suspicion† isn’t exactly on point. Reynolds states the fact right away that many scholars are stressing European forces and problems had a bigger role in shaping this era than not and explains that one of the most distinctive changes in the post-war period is that the European powers began to align more to the liberal, socialistic left than the conservative right, where they were in the inter-war period. Communist Parties all over saw a rise in favor from the people, especially in Hungary and Czechoslovakia, but had little to nothing to do with the Soviets; Hungary was largely Catholic and historically anti-Slav, and the Red Army left Czechoslovakia after an agreement with Western powers (Reynolds). The â€Å"swing† to the left posed problems for not only the United States and Britain but also for Stalin in the Soviet Union as well, with the demand forShow MoreRelatedEuropean Integration And The European Union1638 Words   |  7 PagesAlthough European integration has primarily come about through the European Union and its policies, the idea of a united Europe can be traced back to Ancient Greece. The first we hear of Europe as a geographic concept was in the 7th/8th century BC through the infamous Myth of Europa (Greekmythology.com, 2015). The myth is about a Phoenician princess, Europa (after which the continent was named), who has a dream where she was called to by an unknown land telling her, she belongs to it (GreekmythologyRead MoreThe Conflict Between Ussr And Usa During The Cold War1178 Words   |  5 Pagesemerging from decolonization were lead by a strong nationalism (Col lins English Dictionary, 2007). After World War II, most of the European countries did not have enough economic and political stability to sustain to the different revolts taking place in their colonies and to help them to improve social and economic developments. But, it was inconceivable, for economic reasons, for these European countries to let their colonies being independent. Only, USA and the Soviet Union took positions against colonialismRead MoreThe Political Affairs Of Latin America925 Words   |  4 Pagesto ensure that Latin American governments are compatible with U.S. interests. This dates back, as previously said, to the time of the Monroe doctrine, when the United-States wanted to protect its expansion and dominance in the two Continent form European powers. Following this was the onset of the Truman Doctrine of 1947, which sought to contain the spread of communism, especially within what they considered their own sphere of influence†¦i.e. Latin America. Followi ng the collapse of the soviet blockRead MoreHistorical Timeline Of East West Relationship Essay1372 Words   |  6 PagesHistorical Timeline of East-West Relationship Post World War II Having formed an alliance of convenience for the purpose of defeating their common axis enemy led by Hitler of Germany, the climate of distrust between the United Socialist Soviet Republics (USSR) and the west led by the United States of America (USA) still continued after the world war. Prior to the world war two, there were tensions between the USSR and the USA over the refusal of the Americans to recognize the government of the BolshevikRead MoreThe International Organization For Migration1716 Words   |  7 Pagesplan, expressing the future goals the European government believes will help solves this crisis. The International Organization for Migration said, between January and November 2015 more than 750,000 migrants are predicted to arrive in Europe from across the Mediterranean. As a union, Europe is showing the world that they are not a cohesive organization prepared to face the future with respects to the mass migration. The policy concerning migration at the European Union level states that each nationRead MoreOrigins of the Cold War Essay1295 Words   |  6 PagesOrigins of the Cold War The purpose of this paper is to explore the origins of the Cold War. To accomplish this exploration, the works of W.A. Williams, Robert Jervis, and Arthur Schlesinger, Jr. serves as the foundation. Before a closer examination of these works, a short explanation of the three common viewpoints regarding the study of the Cold War is warranted. These viewpoints are Attribution, Structural, and Misperception. With these viewpoints to guide the way, the above authorsRead MoreWhy The Eu Fta / Epa Is Necessary861 Words   |  4 PagesThe aim of this paper is to examine why the EU-Japan FTA/EPA is necessary. The European Union (EU) and Japan has been recognised as ‘natural strategic partnership’ with common interests or shared values over normal global partners (Atanassova-Cornelis, 2010: 479). Currently their relationship implicates a wider range of fields beyond trade; for instance, security, political, cultural and research cooperation; there are ongoing negotiations for Free Trade Agreement (FTA)/Economic partnership AgreementRead MoreEssay about The Impact of Globalization on State Relationships879 Words   |  4 Pagesbreaking down barriers. While globalization has many dimensions, economic integration is particularly interesting since it holds the greatest promise for preventing future wars. The period before the First World War was characterized by a similar period of economic integration that caused political scientists, such as Norman Angell, to speculate that war had become impossible, yet only a few years later World War I broke out. In order to determine if war will again stop the processes of globalizationRead MoreThe Bi-Polar World Order Essay2174 Words   |  9 Pagesthe World War II (WWII), a new world order was beginning to appear. The old and weak European powers, were devastated from the war, and could no longer hold the world on its shoulders. Subsequently, new superpowers had to take over the control; they were the USSR and the USA. Soon after the end of WWII, new international tensions became apparent after the break of the Grand Alliance (Taylor, 1993, p. 49). The disagreements between the new superpowers grew to a point where the Cold War became a factRead MoreEuropean Union And Its Impact On The United States1444 Words   |  6 PagesSince 1950 European Union (EU) was created it has promoted peace, prosperity and values among the member nations and its neighbouring countries. EU’s influential tools, has helped transform many European states into functioning democracies and prosperous countries. EU’s membership has grown from 6 to 28 countries (Enlargement, 2014), satisfying a historic vow to integrate the continent bringing in most states of Central and Eastern Europe (CEE) by peaceful ideals.EU has anticipated the enlargement

The Pillar Of Religion Forms - 1444 Words

The pillar of religion forms one of the essential cornerstones of societal living that provides doctrines and guiding principles about how people should live and interact. The command of virtually all religions is often inclined on the preservation of peace so that every human being can live amicably next to their neighbor. The message of peace is often preached during the eruption of wars and conflicts where the existence of this virtue is nearly negligible. The numerous religions that exist globally refer to the scriptures that justify the maintenance of peace in a situation where fights and battles are experienced. This paper discusses the importance of religious values when it comes to the subject of war and peace. The common†¦show more content†¦Religions such as Christianity, Hinduism, Buddhism, and Islam are totally against killing an innocent human being, murdering them, or even subjecting them to torturous conditions that can eventually lead to their death. It is only exceptional and rare cases where the use of force to kill is justified, and this is one in a very specified circumstance. The process of carrying out a comparative view of different scriptures of the various religions when it comes to the topic of war demonstrates that there is one central rule that applies when it comes to killing and the repercussions that comes with it. For instance, the followers of the Buddhist religion firmly believe that people who participate in war or any form of violence often end up trembling because life is sacred and it is supposed to be revered by every individual. This teaching is well stated in the book of Dhammapada, which explains that, â€Å"A person should put themselves in the shoes of their other counterpart, so that they can understand that killing is in total violation of the law† (Hogan 957). Furthermore, these scriptures clarify the fact that a person should not compel another individual to take part in an activity that will end up killing and taking away innocent lives. The same concept is elaborated in the Christian scriptures that hold a lot of disregardShow MoreRelatedCompare And Contrast The Three Pillars Of Islam1157 Words   |  5 PagesPillars of Islam Compared to Christian Beliefs In Islam and Christianity, there are similar and different beliefs and practices. In Islam, the five pillars form the core of the religion. Muslims go about their lives abiding by these pillars (â€Å"Islam†). In Christianity, there are not necessarily pillars, but there are commandments that one should live their life by (â€Å"Christianity†). The three pillars of Islam that will be identified resemble some of the beliefs in Christianity. The declaration of faithRead MoreDifferences Between Islam And Islam884 Words   |  4 PagesMuslim is not a religion is it a way of life. The Muslim religion is called Islam. The Islam religion is based on the belief on Allah and the teachings of Muhammad. Even though in the Islam religion they only believe in Allah they view Jesus as a profit in the religion. Christians believe in Jesus also but Muslims do not believe everything that the Christians do. They have their own prayers, rituals, and traditions just like every other relig ion. Muslims are viewed in a negative way because of theirRead MoreThe Islamic Religion And Islam1301 Words   |  6 Pagesâ€Å"These three religions, Judaism, Christianity and, Islam, all support a peaceful world and advocate peace in their main teachings and sacred texts.† (Mt Alvernia Task sheet) There are more than three religions in the world but these three religions are some of the main religions that profoundly support this statement. The Islamic religion is often portrayed by the Western media as a violent religion that does not teach or believe in interfaith or world peace, however through an interfaith understandingRead More World History Argumentative Paper- Religion’s Effect on Society1072 Words   |  5 Pages From the start of civilization, religion has played a crucial role in the development of most societies. The proof of its influence is evident in the way daily life was carried out. Religion had the power to affect everything from social status to common law, thus dominating a large portion of the culture. In ancient Egyptian, Islamic, and Indian society, religion had the capacity to establish how the average person would conduct their daily life. In the area surrounding the Nile River, thereRead MoreEssay on Islam: A Religion and Culture1630 Words   |  7 PagesIslam: A Religion and Culture Islam is one of the oldest religions in history dating back to about 600 AD. It began when a man named Muhammad heard a voice from the heavens instructing him to proclaim the word of god. Currently there are over 800 million followers of the Muslim religion. The main text of the religion is the Quran which is said to be the word of God, or Allah as called in Muslim. Within the Quran, The five pillars of Islam are proclaimed along with many other concepts very uniqueRead MoreEssay on The Five Pillars of Islam551 Words   |  3 Pages The Five Pillars are the frameworks of a Muslims life. Revealed to the prophet Muhammad by Allah, the Five Pillars are the basis of Islamic religion. On another occasion, when the prophet (Muhammad) was asked to give a definition of Islam, he named those five pillars.(www.unn.ac.uk...) The Five Pillars are: bearing witness to Allah, establishing prayers, giving alms, fasting during Ramadan, and making a pilgrimage to Mecca. The Five Pillars are the major duties in the life of a Muslim. ShahadahRead MoreIs The Heart Of Islam?983 Words   |  4 PagesWhat, in your opinion, is the heart of Islam? The heart of Islam is The One True God. The concept of one God is the basis on which the entire religion of Islam revolves around. This concept is the foundation upon with the religion of Islam is built. In fact, the actual definition of Islam means submission; submission to their one true God. Islam followers are called Muslim and the definition of Muslim means one who surrenders or submits to the will of God. Based on these definitions alone, itRead MoreHinduism And The Islamic Religion1329 Words   |  6 Pagesto man in the form of priests, kings or prophets and finally it has, settled on Heavenly Beings which are worshipped by different religions. Two of the more prominent religions in society are Hinduism and the Islamic religion. The Origins of Worship | Urantia Book | Urantia Foundation. 2015. Hinduism Hinduism has acquired over 900 million followers worldwide which has boosted it to the third largest religion. Founded roughly 4000 years ago, Hinduism is also one of the oldest religions to still existRead MoreEssay on The Five Pillars of Islam1497 Words   |  6 PagesLike many other religions, the Muslim faith has experienced many changes and branches. Like Christianity, the original faith is still practiced by some, but others have started new branches with their own unique interpretation being Muslim. Despite these differences within the Muslim religion, one set of rules for moral guidance is central to all. These rules are the Five Pillars of Islam. The Five Pillars act as a moral compass for Muslims and are universally accepted as they are mentioned specificallyRead MoreChristianity, Hinduism, Buddhism, And Hinduism1173 Words   |  5 Pages A. Sarkissian Religion All human beings are born equal and have the same features: nose, eyes, mouth, legs, etc... However, what make each and every individual different are their beliefs and the standard they go by. This is when religion kicks in. Religion is a European invention used to differentiate systems of belief in ways that are new to many of those systems. This separates everyone, including those that are non-religious. Even though the world has over fifty religions, there are only about

Good Manager in the Business World

Question: Why Good Managers are so Rare? Answer: Main Argument of the Article The main argument of the article is the rarity of the good manager in the business world and its implications. In the argument it explores the idea of finding a right talent for the right job in the managerial post. The business organisations need to hire managers by appropriately evaluating their talent to achieve the competitive advantage in the industry. It further explores the effect of not having a good manager in the organisation and that are from employee engagement and satisfaction from the job to profitability to satisfaction of the customer (Augier and Teece, 2009). In the later part the article also explores the talent and traits of the good managers which makes them so rare in the market. The explorations are back by the solid data where the articles show that 82% of the manager selection in the organisation is not as per the talent required. The effect is also visible as 30% of the US company employees and 13% of globally, finds their job engaging. The reason is that the manager hols the 70% of the total score for the employee engagement (Beck and Harter, 2014). The article expresses that a better sourcing of manager would increase the profitability, better attendance and performance of the employee, satisfied customer, and higher standard of safety. TheMain Assumptions and the Limitation of the Articles In the article the link between the bad managers and the poor employee performance is not clear. The research looked at the 27 millions of the employee of more than 100 organisations and that covers 2.5 million work units (Beck and Harter, 2014). There the variation of the performance is immense. The low consistency is preventing to directly correlate the employee engagement and performance with the poor managerial skills. Without this clear indication the later findings could not be substantiated as the effect of the poor people management of the manager (Daft, 2006).The reader must have to keep in mind that the better performance in the regard of the profitability, customer satisfaction, better performance and attendance of the staffs, and lower incident of the safety issue is not only the effect of the good managers presence in the organisation. There could be other motivation and circumstances in the organisation. Methods andMethodology of the Research There is primary and secondary research methodology. Primary research types to answer different questions and issues through fresh research. In the secondary research the old relevant research, books, govt data and other some already stored relevant and reliable information are used to answer the questions or issues. In the article the both the method were used. In the primary research the qualitative methods were used where the managers were interviewed. This data are unquantifiable and cannot be numerically converted (Peffers et al., 2007). On the other hand the secondary research can be seen when the article takes about two studies conducted in 2012 in large scale and that found out that 30% in US employee and 13% internationally are engaged. This is an external source of information and secondary in nature. Conclusion and the Findings The main findings of the article is the chance of finding good manager among the general population based on the five talent standard of motivating employee, assertiveness, ability to create accountability, relationship building capacity and unbiased and productivity oriented decision making ability. The research finds that only 10% of the population have all the above talents. It also finds that only 20% of the population posses some talents to be manager (Beck and Harter, 2014). Though the research finds out that the companies have been able to control this odds and there they have around 18% of the manager with good management quality. From these dates the article finds out that there is great chance of finding out good manages in the teams of the organisation as the chances of finding them is one in ten. That is why the organisation should search these talents more effectively. It also concluded that the companies make 82% wrong decisions at the time of hiring managers. Main Idea Related with MGT100 The main idea of the article is to explore the role and availability of good manger in the organisation. The article states that good manager with great latent is important for the organisation in its competitive advantage. The article finds out the employee engagement and job performance data of the business organisation. Then through sequential analysis it finds out that only 10% population possesses the five talents to become good managers. The article also discussed about the imperative of having a good manger in the organisation. All these approaches have a link with the subject of organisation and managements role in that. In the organisation the managers have different role like the interpersonal role, roles related to information and roles related to decision making. The importance of the interpersonal role is given in the article through the discussion of the employee engagement and the manager role (Aswathappa and Reddy, 2009).The implication of the good manager and managem ent practices on the company performance is also discussed in the article. Main Idea and its Application There are three level of management in the organisations. The three levels are top, middle and the line level of management. The top level of management decides the business strategy, planning and the direction of the business. The middle level managers make the operating decisions and direct the line managers. The line managers are in contact with the ordinary employee of the organisation and they implement the policies and plans in the organisation they also provides effective feedback to the upper managers. Now at the time of recruitment of the line managers the middle level mangers and for middle level managers the top management are involved in the selection decision making (Cummings and Worley, 2014). Now the selection need to be management talent based. The selection panel management can look for the talents in the teams of the organisation as the research suggest that one in ten people have the required talent and may be they are there in the organisation to be discovered. Th e selection of the middle level management can be done from the 18% good management talent base in the organisation. Idea Relation to Real Problems or Dilemmas of the Management One of the problems is the conflict management. Out of the five talents that the managers should have is the assertiveness which would be useful for the conflict management. The relationship building talent also promote open and transparent communication through trust worthy approach and that also helps in the conflict resolution. On the other hand there are employee performance related issue. That means the management lacks the motivation talent and that is why the employee engagement is low. This low moral then hits the performance of the company (Cummings and Worley, 2014).There are also ethical problem that the organisation faces. There the manager needs to promote accountability culture in the organisation to reduce such issue. Team dynamics is one of the dilemmas and the work suffers. The talent for relation building can also come for help in that situation where the manager ensures trust on him or her to make the work efficient. Recommendation The research is critical for the effective and efficient functioning of the organisation. There is real scarcity of good managerial talent in the organisation. But the report indicates that an efficient team in the organisation might have some good management talent hidden in it. The manager should have an observation skill to find out these talents for the organisation. The article differentiates between to skills and the talent for the management post. The talent also becomes critical for the success of the organisation as that influences many factors which drive the organisation to the success (Simons, 2013).The talent cannot be cultivated but only be identified. That is why the management need to develop managers identifying technique rather than developing training module to improve management talent. Indirect Quotation The role of the manager can be described through the individualistic approach (Cie?li?ska, 2007). Here the manager has the ability to influence the situation and the result is dependent on the managerial ability in performing the duty of the job. Direct Quotation The key drivers of employee engagement identified include communication, opportunities for employees to feed their views upwards and thinking that their managers are committed to the organisation (Kular et al., 2008). Reference Aswathappa, K., and Reddy, G. S. (2009).Organisational behaviour(Vol. 12). Himalaya Publishing House. Augier, M., and Teece, D. J. (2009). Dynamic capabilities and the role of managers in business strategy and economic performance.Organization science,20(2), 410-421. Beck, R., and Harter, J. (2014). Why good managers are so rare.Harvard Business Review Blog,(https://blogs. hbr. org/2014/03/why-good-managers-are-sorare, 01.04. 2015). Cie?li?ska, K. (2007). The basic roles of manager in business organization.Roczniki Akademii Rolniczej w Poznaniu, 3-12. Cummings, T. G., Worley, C. G. (2014).Organization development and change. Cengage learning. Daft, R. (2006).Organization theory and design. Cengage learning. Kular, S., Gatenby, M., Rees, C., Soane, E., Truss, K. (2008). Employee engagement: a literature review. Peffers, K., Tuunanen, T., Rothenberger, M. A., and Chatterjee, S. (2007). A design science research methodology for information systems research.Journal of management information systems,24(3), 45-77. Simons, R. (2013).Levers of organization design: How managers use accountability systems for greater performance and commitment. Harvard Business Press.

Psycho Movie Paper free essay sample

One of the best aspects of Psycho is the outstanding camera work. The movie is full of unexpected surprises that makes the audience jump, gasp or scream in surprise and fright. Hitchcock uses constant shadow and â€Å"pop out† techniques that enhance the suspense and give rise to tension that build and builds until it is unleashed in startling ‘pop out’ scenes that leave the audience gasping. The film effects, especially during the murder scenes, I believe made the movie. The scene where Arbogast decides to investigate the Bates household while Norman is away and Norman’s â€Å"mother† pops out from the room and seemingly murders the unsuspecting detective is a great example of this kind of camera work. The film also incorporates elements of the unknown using shadows to keep up the mystery and suspense. The infamous shower scene where Norman Bates stalks into the bathroom as a shadowy figure that has come to murder Janet Leigh gives the audience a spine tingling feeling of fear and keeps the audience guessing as to who the real murderer is. We will write a custom essay sample on Psycho Movie Paper or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The movie was also shot in black and white which adds to the eerie feeling. Hitchcock uses close ups of the actors, shot from odd angles to crete an uneasy feeling for the viewer. The scene when Marian is on her way down the highway after buying her used car, she is filmed driving towards destination but the camera angle is mostly a mid-shot of her view driving the car. After the murder of Marion Crane, the camera zoomed up close to the face of the victim giving the viewers a frightening view of a dead person. The bottom line is that a curtain flying back and a helpless women in the shower being slashed to death while violins screeched violently in the background made many young teens of the time fear their bathtubs and showers. One of the greatest aspects of the movie was the endless string of plot twists and turns. Not only is the plotline immense, but it is full of unexpected events, 360 degree turns and a myriad of suspenseful situations that keep the audience on the edge of their seats. Unexpected events keep the plot rolling along like Marion Crane running away and stealing money. The police officer that questions Marion when she was on the run built up suspense as it led the audience to believe that she might get caught with the 4000 dollars that she stole. The dinner with Marion and Norman before she was murdered gave the sense that Norman was a weird guy who stuffed birds. Plot twist such as Marion Crane being suddenly murdered and Arbogast, the detective, who was close to solving the case being unexpectedly murdered kept the audience guessing. The movie ended with the huge surprise of Norman Bates’ mother, the leading suspect in the murders, turning out to have been dead for two years while her son, Norman committed the murders. Janet Leigh plays an excellent role as Marion Crane, who is on the run with 4000 dollars in search of a new life. The fact that she makes a stop at the Bates Motel adds blood and gore to the movie to make the must-see horror flick of its time. Another thing that made Psycho stand out from other horror movies before it was the type of conflict that the film Horror films up to then had been mostly about man battling oversized or bigger than life monsters. This was just man against a little nerdy man. Hitchcock’s Psycho was inspired by the real life notorious serial killer, Ed Gein. The horror movie audience was used to seeing people battling oversized, non-human creatures such as Godzilla, Dracula, Frankenstein or the Creature from the Black Lagoon. Psycho was one of the first movies to use a psychotic person as the bad guy in a horror context. Psycho inspired movies such as; Friday the 13th with Jason Forgees and Halloween with Michael Myers. Both of these classics followed Psycho’s storyline using the concept of a crazed man with maternal issues killing people with a large knife. The movie, Psycho is a classic film that used innovative camera work combined with a fantastic plot full of unexpected twists and turns and a new type of villain to create a movie that would be used as a horror model for decades. Alfred Hitchcock was a genius who was not afraid to take chances and step outside the box to keep the audience on their toes, or under their seats. Psych has stood the test of time. It was widely considered one of the best horror movies of all time when it came out and it has served as a model and stood up favorably since then.

Research Paper on Gangs Essay Example

Research Paper on Gangs Essay A gang is a specific group of people, who are united on the basis of a certain idea, purpose, kind of activity, preferences, age, and exist and ‘work’ on a particular territory. Every band is often opposed by the other one, which possesses some other believes and supports another idea. This reason always become the basis for numerous conflicts, even wars. According to the opinion of the general public, every gang exists only to commit all sort of crimes. Crimes have always accompanied the human civilization and criminals acted individually very seldom. The most typical and effective way to commit crimes is gathering into gangs. Gangs have a very complicated and strict structure or organization. There is always the head of a gang. This gang member is probably the oldest one and likely possesses the smallest criminal record and they always have great authority and power to control the activity of the gang and recruit new members. The members of the gangs often try to identify themselves with clothes, haircuts, various symbols or signs. The topic of gangs is quite important and stressing, because only in the US there are 30,000 gangs, with 760,000 members who are dangerous for people around. Many people all over the world are targets of the attack of various gangs who do it from different motives and purposes. The topic about gangs should present the historical background of the problem, deep analysis of the functioning of gangs, their structure, and reasons of creation and results of their activity. Quite useful will be tables and graphs with statistics on the topic. Finally, a good research paper should present the ways which are helpful for people to protect themselves from the attacks and various tips with useful advice how to act when you face gang members on the street. We will write a custom essay sample on Research Paper on Gangs specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Research Paper on Gangs specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Research Paper on Gangs specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Students who need to write research paper on gangs in America will have to read much to understand the topic well. There are many reliable books, encyclopedias, magazines and newspapers which are dedicated to the research of the gangs and their nature. Students should not limit themselves with the reading of the literary sources, but free example research papers on gangs in prison will be interesting and helpful to those students who can not find enough facts concerning the topic and want to know how a paper should be organized. Nearly every free sample research paper on street gangs is prepared by a professional writer who shows the proper way of paper writing. Reading such a paper you realize the structure of the paper, format and the way of presentation of data. At EssayLib.com custom writing service you can buy a custom research paper on Gangs topics. Your research paper will be written from scratch. We hire top-rated Ph.D. and Master’s writers only to provide students with professional research paper assistance at affordable rates. Each customer will get a non-plagiarized paper with timely delivery. Just visit our website and fill in the order form with all paper details: Enjoy our professional research paper writing service!

Exchange Trip Tragedy

Exchange Trip Tragedy What is important for ensuring the safety on school field trip? Hashtag: #Germanwings Exchange Trip Tragedy Two teachers and 16 of their 10th-grade students perished when German Wings Flight 4U9525 crashed in the French Alps last March 24. These high school students spent a weeklong exchange trip in a town near Barcelona and on their way back to Haltern, a rural town, 80 kilometers North East of Dusseldorf, Germany when the tragedy occurred. School-sponsored off school field trips are designed to enhance classroom learning, cultivate a variety of interest among students, and expose them to a different culture. An â€Å"Exchange Trip† exclusively provides students with an opportunity to study language and gain overseas experience. For instance, the 10th graders who were on board Flight AU9525 were given the opportunity to learn Spanish language and culture in a town near Barcelona. However, although the objective of school field trip greatly benefits students in terms of knowledge and skills, such activity is risky and involved several health and safety concerns. Most parents are worried about field trip’s inherent risk of injuries such as falls, slips, and others and the ratio of teachers to students in ensuring the safety of each participant. The above concerns are legitimate as in reality, a significant number of students perished or were severely injured during their field trips. For instance, seven students of a State University crossing a river during their educational tour died when the water suddenly surged and swept them away. Two middle school students on a field trip were severely injured when the small aircraft carrying them skidded off the runway and went down on a steep embankment at Rock Airport in Pennsylvania, U.S. in 2011. In 2014, hundreds of Korean high school students on a field trip to Holiday Island drowned when their ferry suddenly sank and swept away by subsequent strong currents and underflow. Why Are You Not in Class and There Bleeding Ensuring the Safety on School Field Trip Most schools’ field trip policy holds trip leaders directly responsible for the safety of all students, staff, and volunteers, during a field trip. Under this policy, trip leaders are commonly expected to perform several basic duties such as warn and inform, provide instructions and safety equipment, supervise, and provide swift and appropriate post-injury care. Supervising hundreds of students at all times and exercising close control over them during a field trip seems nearly impossible for field trip leaders but it can be done through systematic accounting and assigning the right number of supervisors for a particular field trip. For instance, a number of students, age, maturity, type and duration of a field trip, transportation, and emergency requirements are factors for determining the number of chaperones required. Since field trips concern parents, it is critical for trip leaders or teachers to acquire permission and provide parents with necessary information such as the purpose of the trip, food and clothing requirements, and others. Controlling students during a field trip is much easier when they are well informed and committed to their own safety. For instance, students who clearly understand the reasons for safety guidelines are likely to internalize a commitment to safeguard themselves and others and become a vigilant teacher’s partner in safety. For as long as safety measures are strictly followed, air travel according to study is still one of the safest forms of travel. In fact, although surviving an aircraft accident is low, commercial airlines accidents are relatively rare. School-sponsored exchange trips, therefore, should continue and not be discouraged by the recent German Wings crash.

Medical School Personal Statement Example | Topics and Well Written Essays - 750 words

Medical School - Personal Statement Example n and suffering in this world be minimized, I see a career in a medical related discipline as my way of helping other become happy in their life and, in return, for them to be able give back to society by living a healthy and productive life. My specific area of interest is to either become an orthopedic surgeon or to work in an area of internal medicine. Through it all, I feel that my role in either of these two areas will help me help others improve their overall well-being. Having grown up in a low-income household within a poor bedrock community, I can see myself working in such an area as I begin my medical career. Just as various individuals have come into my life through the years to motivate me to escape a life of poverty, I feel I can help instill a passion in others to do the same. Also, as a disproportionate number of poor people live in ill-health, without adequate access to quality medical care, this is definitely an area that I can feel I can be an asset. Looking back on my life, I can say that my interest in pursuing a career in medicine began when I was in middle school. As a teenager, even though I lived in a poorer demographic group, I honestly felt full of hope and optimism for the future. I thought everyone was filled with such hope, yet various incidences and my own studies quickly made me realize the the world is full of oppression and despair. I knew then, as I know now, that I want to be an agent of change for these individuals. As I moved through my adolescent years, I had various friends who had parents die of cancer or heart disease. I also saw family members become extremely ill due to their poor health, and this began to trouble me. Asking myself why people did not always seem to take adequate care of themselves, I realized that it was because they likely did not know any better. At that time I decided that I could be such a person that bought medical knowledge and care to those in my community. Hence my desire now to

Cost of Production - Larson & Larson Company Assignment

Cost of Production - Larson & Larson Company - Assignment Example 8660/12800 = ?0.68/unit For T, 50 labour hours @ ?12 + ?1800 for 2,400 Rate per unit = ?2400/2400 = ?1/unit Part b ABC system would be used if the other costs such as run and inspection are actually considered to obtain the true value of the project costs. With the weighted percentages, it can be possible to determine the product value considering each part of the process. In addition to the works on OAR, we calculate according the apportionment of the other expenses such that we will have the calculation that includes all the aspects for ABC as follows: For R, 68 x ? 12 apportioned appropriately in the ratio 3:4:3 then calculated for one unit by dividing by 560, the value is then added to other cost due to material and direct labour hours. = ?1.46/unit The total unit cost of R being ?2.69/ unit ?2.69/ unit1.46/ unit = ?3.15/unit For S, = 50 x ? 12 in the ratio 3:4:3 and calculated for one unit by dividing by 12,800 = 600/12800 = ?0.05/unit Total unit cost being 0.68 + 0.05 = ?0.73/u nit For T, would similarly be obtained as 58 x ?12/600 + ?1/unit =?2.26/unit Part c ABC as a method or accpunting model as developed inorder to solve problems related to accounting that has actually evolved over time due to the change in technology as well operations within the industries (Warren, Reeve & Fess 2005). It is clear that overhead costs have been increasing in companies to the point that it may be extremely difficult to use the direct methods which only emphasized on resources as well as the absorbed costs of the out. This assumed at a great expense, the impact of operations and the many intermediaries involved which comprise of the majority of the overhead costs. ABC therefore is the only practical remedy to the inefficiencies of the traditional accounting methods. At the core of ABC there exist very important principles and arguments which contribute to differentiating it from other accounting methods. ABC holds that the cost objects will consume the activities contrar y to the principle of other traditional accounting methods which argue that cost objects may only consume the resources (Naidu, Babu & Rajendra 2006). In normal operations, the costs actually will end utilizing the activities in the production line which actually depend on the resources. This aspect makes ABC more realistic and effective in determine the unit cost of production. Whereas other traditional methods base on volume allocation of the production resources, ABC considers the drivers at each level and their effect on production to determine the allocation. The drivers considered include activity drivers as well as the activity drivers which check every other production element and its cause effect relationship to the output. Further difference and principle of ABC comes from the fact that the traditional accounting are developed on the basis of structures while ABC actually depends on the process itself and therefore takes care of the various that may occur in the process. A BC begins from the process as it moves upwards to assess the amount of resources utilized and that might be required. Critically, ABC analyses the activities with the understanding that it is not easy or possible to manage costs but the activities causing the costs are manageable so that in the end, it is the activities that the organization takes or that is taken in the production process which will determine the costs (Pryor 1998). The

Economic analysis of the new system Essay Example | Topics and Well Written Essays - 250 words

Economic analysis of the new system - Essay Example The new economic system requires monthly equipment training (1 hour training), Monthly software training (1 hour training), and monthly IT training on new system software. The return on investment is very significant to a company because it predicts the ratio or percentage of profits or gains to cost. However, the company manager need to understand that return on investment does not talk about time nor does it show how long a business might take to gain a certain percentage. In addition, it does not demonstrate the risk or danger of an investment. Payback analysis is very significant since it shows the duration a business takes for the entire gains from an investment to reach the cumulative cost. Therefore, investments with less time for payback have lower risks or danger than those with much time or longer periods have. The benefits are tangible and intangible. The tangible benefits are enhanced quality and inventory. In addition, it facilitates inclusion of all devices with real components, it give mobile users time to carry out practical transactions in absence of an available terminal. It improves lead-time reduction, helps to ensure all devices are built with the correct components the first time, a dramatic reduction in costly material scraps and wasted overhead that result from rework and by minimizing the risk of mixed components. It also Improve operator efficiencies, PCVs use of mobile devices gives users the freedom to perform real-time transactions while they work without having to seek out an available terminal. Additionally, intangible Benefits are indirect benefits that cannot be seen. For instance, such benefits are enhancing customer service via increased access and increased company control, which in turn avoids misuse of company resources. Further, it Increases company’s tr ansparency and responsibility, less chance of "losing" documents and

Effect of Globalization on Business and Profit Making

Effect of Globalization on Business and Profit Making Chapter 1 Throughout history, profit-making entities (among other) have constructed an ever-more-global economy. In the last 15 years or so, unprecedented changes in communications and computer technologies have given the process new momentum. Multinational corporations manufacture products in many countries and sell to consumers around the world. Money, know-how and raw materials move ever more rapidly across national borders. Along with products and finances, ideas and cultures mingle more unreservedly. As globally mobile capital reorganises business firms, it sweeps away regulation and undermines local and national politics. Globalisation creates new spins of old trading ideas (auctions are becoming increasingly prevalent in buying and selling); it starts new markets and it contributes to wealth, even as it causes extensive distress, chaos, and strife. It is both a source of tyranny and a medium for global movements of social integrity and liberation. Undoubtedly, in the first quarter of the 21st century, the profit-making firm functions in an environment full of global opportunities and threats; and in the wake of recent corporate scandals, the firm, simultaneously, is heavily constrained by ethical self-restraining as well as innovative regulations enforced by domestic and global-governance institutions. 1 Globalisation According to A.T. Kearney/Foreign Policy Globalization Index (2003), which is based on indicators such as economic integration, technological connectivity, personal contact, and political engagement (see Table 1 below), from about 1999 to 2003, global foreign direct investment and portfolio capital flows slowed down significantly thus contributing to the weakening of globalisation. Other global trends, especially international tourism, telephone traffic and worldwide access to the internet stayed strong helping to compensate for the weakening of international economic ties, thus deepening global links overall. What are the lessons that the profit-making firm may derive from the globalisation of economic activity? It appears that global markets, as discussed in the remainder of the section, ‘offer to the firm less legal restrictions, induce reduction in excess capacity, cause higher market concentration and contribute to higher profits. Consider 1, which links together two 2-dimensional diagrams: one has its origin in the southwest with global concentration measured on the vertical axis and profits on the horizontal; the other has its origin in the northeast with excess capacity measured on the vertical axis and legal restrictions on the horizontal. As it is discussed below, globalisation enables firms to move ‘northeast from point A to point B. Table 1 A.T. Kearney/Foreign Policy Globalization Index (2003) The 2003 results do not show causation, but they do point to significant correlations; they demonstrate that the most global countries are those where residents live the longest, healthiest lives; women enjoy the strongest social, educational, and economic progress; global integration leads to secularisation. For the third year in a row, in 2003, Ireland ranks as the most global, due to the countrys deep economic links and high levels of personal contact with the rest of the world. Western Europe claimed six out of the ten most globally integrated countries in this years survey. And the USA broke into the top ten, ranking first in the number of secure servers and internet hosts per capita. Countries from Central and Eastern Europe, Australasia, and Southeast Asia also made it into the upper tier (the five most global countries are reported above followed by the top five global firms in Europe and Asia). Ranking indicators  · Economic integration: trade, foreign direct investment, portfolio capital flows, and investment income.  · Technological connectivity: internet users, internet hosts, and secured servers.  · Personal contact: international travel and tourism, international telephone traffic, and remittances and personal transfers (including worker remittances, compensation to employees, and other person-to-person and non-governmental transfers).  · Political engagement: memberships in international organisations, personnel and financial contributions to UN Security Council missions, international treaties ratified, and governmental transfers. 1.1 Legal restrictions As globalisation expands, many firms find themselves (by choice or coincidence) operating in countries that impose less legal business regulations relative to their home countries. Global firms put pressure on local governments to establish more favourable business regulations or refrain from enforcing their regulatory laws (regardless of how minimal or fair they are) or, if such laws do not exist, to avoid applying them. As a result, less regulated or totally unregulated markets reduce barriers on the flow of goods and money across borders, creating a more integrated and profitable global economy. Over regulation: Business firms in developing nations face much larger regulatory constraints than those in developed nations; as reported in Doing Business in 2005 [World Bank, (2004), p.3], â€Å"(a) they face 3 times the administrative costs, and nearly twice as many bureaucratic procedures and delays associated with them. And they have fewer than half the protections of property rights of rich countries. (b) Heavy regulation and weak property rights exclude the poor from doing business. In poor countiers 40% of the economy is informal. Women, young and low-skilled workers are hurt the most.† The lowering of over regulatory constraints is actively pursued because it brings benefits to firms (they spend less money and time on dealing with regulations) and to governments (they spend fewer resources regulating and more providing social services). Moreover, fewer regulations attract foreign firms with all benefits and, of course, costs associated with them. Hence, globalisation enables firms to benefit from the removal of unnecessary regulations and the establishing of trade-encouraging, incentive-loaded laws. At the same time though due to ‘global complexity, the emergence of new innovative technology-driven markets as well as inability of regulatory authorities to enforce the existing legal enactments (reformed or not), some firms, as described below under illicit trade, may avoid compliance with domestic or international laws. Illicit trade: The fact that, globally, unlawful trade in products and services involving intellectual property, money laundering, third shift production and alien smuggling has been on the rise, implies that authorities in various countries experience hard time in dealing with the problem. As Naim (2003) writes, intellectual property illegalities, a modern kind of piracy, involves business software, shampoos, motorbikes, medical drugs, industrial valves, supply of illegally copied copyrighted music, and among other, theft of brand names. In Naims words: â€Å"Governments have attempted to protect intellectual property rights through various means, most notably the World Trade Organizations Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Several other organizations such as the World Intellectual Property Organization, the World Customs Union, and Interpol are also involved. Yet the large and growing volume of this trade, or a simple stroll in the streets of Manhattan or Madrid, show that governments are far from winning this fight.† Additionally, deregulations of financial markets have given rise to rogue global banking, tax havens, and money laundering. All these factors make possible cross-border money transfers, while simultaneously, improvements in electronic technologies make distance less of a barrier and turn money into e-money defined by Naim as â€Å"cards with microchips that can store large amounts of money and thus can be easily transported outside regular channels or simply exchanged among individuals.† Naim states that â€Å"estimates of the volume of global money laundering range between 2 and 5 percent of the worlds annual gross national product, or between $800 billion and $2 trillion. †¦ The sophistication of technology, the complex web of financial institutions that crisscross the globe, and the ease with which â€Å"dirty† funds can be electronically morphed into legitimate assets make the regulation of international flows of money a daunting task† magnified by the introduction of e-money.† Moreover, according to the United Nations, alien smuggling is the fastest growing business of organised crime. According to Naim, this kind of modern enslavement has become a $7 billion a year enterprise and it involves mostly women and children; and contrary to the efforts made by governments to curtail the problem, especially in the UK, Southern Europe and in the USA, the problem is becoming more difficult and complicated over time. Again, Naim puts it graphically: â€Å"A woman can be â€Å"bought† in Timisoara, Romania, for between $50 and $200 and â€Å"resold† in Western Europe for 10 times that price. The United Nations Childrens Fund estimates that cross-border smugglers in Central and Western Africa enslave 200,000 children a year. Traffickers initially tempt victims with job offers or, in the case of children, with offers of adoption in wealthier countries, and then keep the victims in subservience through physical violence, debt bondage, passport confiscation, and threats of arrest, deportation, or violence against their families back home.† And of course, intellectual property, humans, and financial capital are not the only products and/or services traded illegally for big profits by global networks. There are also markets in human organs, endangered species, stolen fine art, and deadly industrial waste. The unlawful worldwide trades in all these merchandise and services share numerous essential characteristics such as high-tech innovations, societal and political transformations and open fresh markets. Fast spreading globalisation causes the regulatory environment to become more complex which serves as a cover for opportunistic profit through illicit trade, networks and markets. At the same time, governments are becoming increasingly ineffective in dealing with the problem. Although the global community attempts to regulate global business activity through entities such as the World Trade Organization (WTO), the International Monetary Fund (IMF) the World Bank (WB), alliances such as the G-7, or the G-20, and treaties such as the Kyoto Protocol, the global business environment, by and large, is becoming gradually freer. 1.2 Global concentration As legal constraints become wobblier, the power of global firms, in terms of concentration, increases. Widespread merger and acquisition (MA) activities between already big industrial and financial firms started during the 1990s. The new gigantic corporations, by and large, control a large global market share in their respective industries. The build up in global concentration has sweeping implications for the 21st century. As reported by Mohamed (2004) â€Å"total global mergers activity grew from over $150 billion in 1992 to over $2000 billion in 1998, when eight of the worlds ten largest mergers took place. By 1999 it was over $330 billion.† The enhanced mass and influence of these new giants has been central to the intuition that globalisation advances at a blazing speed. In general, most of these global activities, such as MA, foreign direct investment and international trade, are between developed nations. Mohamed reports that â€Å"this concentration of economic power and activity is clearly illustrated by the fact that over 95% of the companies on the Fortune 500 (ranked by value of sales) and FT (Financial Times) 500 (ranked by market capitalization) lists are developed-country companies. In addition, only a handful of developing-country companies feature on the list of the top 300 companies ranked by expenditure on research and development (RD). When one considers that developed countries have less than 20% of the worlds population then the magnitude of the disparities in the global economy cannot be more evident.† Escalated global economic concentration was caused by a number of actions. There was a shift towards focusing on core activities that led to unbundling of formerly diversified conglomerates. There were vast investments in knowledge capital, primarily in hardware, software and information technology (IT) services. Much of the RD outlays of multinational corporations has been on IT, which has helped develop coordination of all aspects of their dealings internationally. There has been globalisation of mass media (e.g., CNN and BBC), which has led to the creation of global franchises (e.g., McDonalds and Wal-Mart), global brands (e.g., Nike) and global marketing infrastructure. The global reach, multiplication and liberalisation of financial markets as well as rapid growth of international capital flows since the 1970s contributed to the growth of multinational corporations. Much of the funds for the new giants came from institutional investors, who prefer big companies that sell popular brands, control large market shares, invest significantly on RD and focus on their nucleus activities. Additionally, as reported by Mohamed, â€Å"the process of global concentration that started in the 1990s happens not only in leading companies but also upstream in their suppliers and downstream in companies distributing their products. The leading companies have pressured their suppliers and distributors to work more closely with them and to become global leaders in their own areas by also growing through MAs. This process has further concentrated the global economy.† 1.3 Excess capacity The massiveness of the global market (the market size effect) along with adaptive, flexible and responsive marketing (the marketing effect) enables global firms to sell more. Additionally, they sell at reduced prices because of lower production costs due to outsourcing and insourcing as well as due to new inexpensive technologies such as the internet and the cell phone (the cost effect). Obviously, market and marketing effects induce firms to reduce their excess capacity but cost effects enable firms to add excess capacity. Whether or not the reduction in excess capacity is in absolute value greater than the increase in excess capacity is an empirical question. Undoubtedly, global manufacturing is on the rise enabling firms to become more adaptable, more flexible in production and distribution as well as more responsive to the needs of customers; and since the global economy is on the rebound after the depths it reached in 2008/2009, see Table 2, it is perhaps reasonable to believe that rising global demand will contribute to a reduction in excess capacity which, in absolute value, would exceed the increase in excess capacity leading to more profit and, hopefully, to improved global economic well-being. Finally, as stated by Helpman (2006), in this global economy we have experienced rapid expansion of trade in services and trade in intermediate inputs. With respect to exports [Helpman, (2006), p.590], â€Å"only a small fraction of firms export, they are larger and more productive than firms that serve only the domestic market, and more firms export to larger markets. A small fraction of firms engage in FDI, and these firms are larger and more productive than exporting firms.† And although according to Helpman (2006, p.591), the theory of comparative advantage, as an explanation of intersectoral international trade, and the theory of imperfect competition, as an explanation of intra-industry trade, are still valid, globalisation brings â€Å"to trade theory a new focus: the organizational choices of individual firms. By focusing on the characteristics of individual firms, the theory can address new questions: Which firms serve foreign markets? And how do they serve them, i.e., which choose to export and which choose to serve foreign markets via FDI? Under what circumstances do they outsource in a foreign country rather than at home? And if they choose integration, under what circumstances do they choose to integrate in a foreign country, via FDI, rather than to integrate at home?† Table 2 Real projected gross domestic product (GDP) and growth rates of GDP for regions (in billions of 2005 dollars) 2000-2015 GDP Year 2000 2005 2006 2007 2008 2009 2010 2015 W 39190.56 44828.46 46641.28 48405.39 49297.02 47992.14 49005.27 58114.16 D 29313.46 32197.09 33091.60 33890.60 34017.97 32749.26 33146.61 37232.39 D less US 18220.25 19763.70 20300.67 20825.75 20895.84 19955.19 20032.69 22162.27 DE 8416.01 10729.04 11507.29 12319.63 12977.47 13056.42 13653.30 18126.72 FCP 1461.09 1902.34 2042.39 2195.16 2301.59 2186.46 2205.35 2755.04 EM 5890.55 7647.06 8198.94 8812.17 9278.61 9278.48 9704.73 12953.24 Annual growth rates Year 2001 2005 2006 2007 2008 2009 2010 2015 W 1.71 3.38 4.04 3.78 1.84 -2.65 2.11 3.45 D 1.27 2.31 2.78 2.41 0.38 -3.73 1.21 2.32 D less US 1.59 1.84 2.72 2.59 0.34 -4.50 0.39 2.07 DE 2.78 6.30 7.25 7.06 5.34 0.61 4.57 5.68 FCP 4.50 5.72 7.36 7.48 4.85 -5.00 0.86 4.57 EM 3.55 6.09 7.22 7.48 5.29 0.00 4.59 5.78 Notes: W = World; D = Developed nations; D less US = Developed nations less US; DE = Developing nations; FCP = Former centrally planned nations EM = Emerging market nations. Source: Data found in World Bank World Development Indicators, International Financial Statistics of the IMF, Global Insight, and Oxford Economic Forecasting, as well as estimated and projected values developed by the Economic Research Service all converted to a 2005 base year. Available at http://www.ers.usda.gov/Data/Macroeconomics/Data/ProjectedRealGDPValues.xls. 1.4 Insourcing and urbanisation in developing economies Insourcing (incoming foreign direct investment) and outsourcing (outgoing foreign direct investment) have been contributing to net benefits of formal firms in both developed and developing nations and in turn to the well being of all. Drezner (2004, p.22), in response to rhetoric against outsourcing in the USA, states that â€Å"outsourcing of American jobs to other countries has become a problem of epic proportion. Fortunately, this alarmism is misguided. Outsourcing actually brings far more benefits than costs, both now and in the long run. If its critics succeed in provoking a new wave of American protectionism, the consequences will be disastrous for the U.S. economy and for the American workers they claim to defend.† In developing nations though, insourcing has been transforming local economies in new directions that cause global anxiety. Demographics in China, India and many more economies indicate that populations, in search of jobs and a better life, have been migrating towards urban, industrialised, centres, abandoning their agrarian lands, creating megacities and giving rise to urbanisation-type problems. (See self-explanatory projected population data for China and India in Tables 3 and 4). Table 3 Urban, rural population trends in China Population (000s) 1985 2005 2025 Total 1,070,175 1,321,569 1,480,430 Urban [Proportion (%)] 241,766 [22.6] 507,725 [38.4] 773,155 [52.2] Rural [Proportion (%)] 828,409 [77.4] 813,845 [61.6] 707,275 [47.5] Source: Available at http://ww2.unhabitat.org/habrdd/conditions/eastasia/china.htm. Table 4 Megacity population trends in India Population (000s) 1991 2011 Total 844,272 1,292,506 Delhi 8,723 24,867 Mumbai 12,572 21,780 Calcutta 10,916 16,509 Source: Available at http://www.ifpindia.org/ecrire/upload/press_ifp_website/ indiapolis_articlerelu.pdf. Megacity build-up and abandonment of agrarian lands have been occurring throughout the developing world1. In all these countries, historical data seems to support two stages of development: In Stage I, prior to insourcing, most of the population lives in the agrarian sector on subsistence agriculture and/or on meagre wages from selling their labour. Overpopulation forces people to exist under perpetually poor conditions causing the supply of labour to be perfectly elastic since there is around abundant low-skilled perfectly substitutable agrarian labour. In general, in this stage of development, the agrarian sector may be described by 2, where A = agrarian, e = equilibrium, WA = wage rate, LA = labour, DA = demand of labour, and LA = supply of labour2. Point V corresponds to the amount of available labour in the sector, point T to the amount of labour employed by the informal economy at equilibrium (point e) and (V-T) to the surplus of labour in the agrarian sector. Insourcing gives rise to Stage II. Incoming foreign direct investment takes root in urban centres (in most cases near the coast, e.g., China) and offers higher wages to attract labour from agrarian regions. In this stage, the industrial sector may be described by 3, where I = industrial. It is assumed that at We supply of labour in the industrial sector is equal to zero (workers would have no incentive to migrate if they cannot receive higher wages). Equilibrium initially occurs at eI, where DI is equal to SI, and labourers get paid WeI > We. At this market wage rate, the industrial sector absorbs portion TU of the total surplus labour available in the countryside. In turn, because there is still unused surplus labour in the agrarian sector (portion UV), more insourcing triggers higher demand for labour in the industrial sector (DI ¢) and migration of the remaining surplus labour; additional migration to urban areas causes the labour supply to become more elastic (the supply functi on flattens and rotates out to SI ¢). At the new and final equilibrium of eI ¢, WeI ¢ The above analysis implies many benefits: employment and income improve; know-how spreads through technology transfer; saving, investment, and tax revenue increase greatly contributing to growth; in addition to the above, people may prefer the city because it is more likely to endeavour entrepreneurial opportunities, find formal education for their children, have access to healthcare, enjoy entertainment, live cosmopolitan lives, and take advantage of proximity to major transposition hubs (for travelling to other countries and inside their own). However, the analysis implies costs as well, especially as they relate to urbanisation, such as: pollution (air, water and land); crime (especially in inner city areas); traffic jams; crowded housing; loss of arable land; food shortages (since people abandon their agrarian fields in the country and/or because they turn agrarian fields near the city into suburbs); creation and stagnation of an informal economy; lack of socialising due to isolation from, and alienation of, neighbours; deterioration in education (due to capacity limitations) as well as healthcare, transportation and governmental services (especially in utilities, fire and police protection); and finally, dependency on food importation, foreign direct investment and foreign capital markets. 1.4.1 Development views: ‘romantic, ‘parasite and ‘dual economy In addition to the above, urbanisation in developing nations spawns informal business firms, which, in general, do not pay taxes or abide by laws and regulations. According to some economists, such firms do not contribute to the overall growth of the economy. Development economists agree though that registered, law abiding, efficiently run entities known as formal business firms have to be encouraged to exist through incentives and governmental policy for they are the only capable of boosting economic growth and development. According to the United Nations (2008, p.1), â€Å"four billion people around the world are robbed of the chance to better their lives and climb out of poverty, because they are excluded from the rule of law.† Informal business firms account for up to about half of economic activity in developing nations but researchers disagree about their role. As explained by La Porta and Shleifer (2008, pp.275-276), â€Å"there are three broad views of this role, (referred) to as the romantic view, the parasite view, and the dual economy ‘dual for short view (otherwise known as the) ‘Wal-Mart theory of development.† In the ‘romantic view, associated with de Soto (2000), informal firms, which are similar to formal (for example, they attract equally talented employees), are held back by barriers to official recognition: lack of secure property titles, deeds, securities and contracts that describe the economically significant aspects of assets. The lowering of such barriers would improve the ability of firms to borrow against registered and secured property-based collateral; additionally, it would enable them to more easily acquire, and/or merge with, other firms. In contrast, the ‘parasite view holds that informal firms, led by less-able, mostly uneducated, entrepreneurs, choose to stay small; as such, they lack the needed scale to operate efficiently and, conveniently, they enjoy cost advantages since they do not pay taxes, offer fringe benefits to employees, follow safety requirements in the workplace or abide by other regulations and the rule of law. These firms impair the economys growth: they reduce overall productivity and they take away market share from more productive formal firms because of their cost advantage over them. Hence, governmental initiatives to uproot these ‘parasites (such as enhancing audit capabilities to reduce tax evasion and enforce regulations) would contribute to efficiency, employment, growth and development. Finally, according to the ‘dual view, informal and formal firms may coexist as long as government tax and regulatory policies support the development of formal firms without encouraging or discouraging informal firms. Unlike the romantic view, this view holds that formal firms are different than informal: formal firms attract more skilful employees, their owners are better entrepreneurs, they are officially recognised, they can raise capital and they abide by regulations. Unlike the parasite view, the dual view maintains that informal firms are not a threat to formal firms because, for the same products, they charge higher prices (due to inefficient production and thus high costs) and because they mostly operate in different markets selling to different clients. La Porta and Shleifer (2008, p.278) report that empirical evidence supports the ‘Wal-Mart theory of economic development and they stress that â€Å"the dual view sees the (informal) firms as providers of a livelihood to millions, perhaps billions, of extremely poor people, and it cautions against any policies that would raise the costs of these firms. This view sees the hope of economic development in policies, such as human capital, tax, and regulatory policies, that promote the creation of (formal) firms, letting the (informal) ones die as the economy develops.† 2 The increasing relevance of auctions Firms may participate in auctions as buyers (bidders) or sellers (auctioneers). As buyers, they want to maximise buyer surplus (the difference between what they would be willing to bid at and the bid they actually pay). As sellers, they want to maximise profit (the difference between the bid they would be willing to sell at and the cost of the auctions object). Although any entity may rely on auctions for selling and buying, a few ‘liaison firms have become very famous over their valuable and pioneering business concepts. Such firms are Christies, Sothebys, and eBay.com. Retail, franchise or land acquisition, government procurement, and various services, among many more, rely on auction-type selling and buying. For example, retail stores (such as Filenes Basement in Boston) report a price on an items tag but the actual price paid by the client is lower the more time the item is up for sale on the floor; in turn, unsold items are donated to charitable organisations. Similarly, sellers in fresh produce markets lower prices towards the end of the day prior to disposing off the items. Governments purchase military assets and/or services of engineers for public infrastructure by relying on bids submitted by the sellers of those services and franchise owners bid for the privilege to own a franchise licence. Home developers, often, buy land in multiple lots through auctions and, of course, eBay has turned every single person on the planet into a potential auctioneer and/or a bidder. Auction results depend on many factors such as type of auctions or design, information of bidders valuations (which may be identical or different) and their attitudes towards risk, whether or not bidders bid on many or on a bundle of units and, of course, on whether or not bidders and auctioneers act ethically. For more details and a guide to literature see Klemperer (1999). 2.1 Bidders (or buyers) Table 5 describes five well-known auction types. Bidders in an English auction would have the incentive to bid higher than other bidders but lower than their true valuation. An advantage to English auctions is that, during the auction, bidders may swiftly revise bids upwards (up to but not higher than whatever they are willing to pay) based on information about the valuations of other bidders in the auction. Bidders in Dutch and First-Price Sealed-Bid auctions would have the incentive to bid strategically so that they never lose to someone with a lower valuation of the item under auction. A strategy for the bidder in these auctions would be to shade down the bid to the unknown second highest bid. As explained by Pepall et al. (2005, pp.640-641), each bidder may estimate the second highest bid as follows: assuming that each bidder in the auction believes that her valuation is the highest, if bidders draw from a uniform distribution [0, Ï…] with all N bidders equally spaced on this interval (where Ï… = highest bid), then the average of the highest value in samples of size N drawn from [0, Ï…], or the second highest bid, would be [(N 1) / N]Ï…. (For example, if there are N = 5 bidders and a bidders highest valuation is $100, then the second highest valuation is [(5 1) / 5] $100 = $80; hence, the optimal bid for this bidder would be $80). But, if the bidder is wrong on her beli ef that she is the highest bidder she may lose the auction. Thus, bid shading implies a possible benefit an Effect of Globalization on Business and Profit Making Effect of Globalization on Business and Profit Making Chapter 1 Throughout history, profit-making entities (among other) have constructed an ever-more-global economy. In the last 15 years or so, unprecedented changes in communications and computer technologies have given the process new momentum. Multinational corporations manufacture products in many countries and sell to consumers around the world. Money, know-how and raw materials move ever more rapidly across national borders. Along with products and finances, ideas and cultures mingle more unreservedly. As globally mobile capital reorganises business firms, it sweeps away regulation and undermines local and national politics. Globalisation creates new spins of old trading ideas (auctions are becoming increasingly prevalent in buying and selling); it starts new markets and it contributes to wealth, even as it causes extensive distress, chaos, and strife. It is both a source of tyranny and a medium for global movements of social integrity and liberation. Undoubtedly, in the first quarter of the 21st century, the profit-making firm functions in an environment full of global opportunities and threats; and in the wake of recent corporate scandals, the firm, simultaneously, is heavily constrained by ethical self-restraining as well as innovative regulations enforced by domestic and global-governance institutions. 1 Globalisation According to A.T. Kearney/Foreign Policy Globalization Index (2003), which is based on indicators such as economic integration, technological connectivity, personal contact, and political engagement (see Table 1 below), from about 1999 to 2003, global foreign direct investment and portfolio capital flows slowed down significantly thus contributing to the weakening of globalisation. Other global trends, especially international tourism, telephone traffic and worldwide access to the internet stayed strong helping to compensate for the weakening of international economic ties, thus deepening global links overall. What are the lessons that the profit-making firm may derive from the globalisation of economic activity? It appears that global markets, as discussed in the remainder of the section, ‘offer to the firm less legal restrictions, induce reduction in excess capacity, cause higher market concentration and contribute to higher profits. Consider 1, which links together two 2-dimensional diagrams: one has its origin in the southwest with global concentration measured on the vertical axis and profits on the horizontal; the other has its origin in the northeast with excess capacity measured on the vertical axis and legal restrictions on the horizontal. As it is discussed below, globalisation enables firms to move ‘northeast from point A to point B. Table 1 A.T. Kearney/Foreign Policy Globalization Index (2003) The 2003 results do not show causation, but they do point to significant correlations; they demonstrate that the most global countries are those where residents live the longest, healthiest lives; women enjoy the strongest social, educational, and economic progress; global integration leads to secularisation. For the third year in a row, in 2003, Ireland ranks as the most global, due to the countrys deep economic links and high levels of personal contact with the rest of the world. Western Europe claimed six out of the ten most globally integrated countries in this years survey. And the USA broke into the top ten, ranking first in the number of secure servers and internet hosts per capita. Countries from Central and Eastern Europe, Australasia, and Southeast Asia also made it into the upper tier (the five most global countries are reported above followed by the top five global firms in Europe and Asia). Ranking indicators  · Economic integration: trade, foreign direct investment, portfolio capital flows, and investment income.  · Technological connectivity: internet users, internet hosts, and secured servers.  · Personal contact: international travel and tourism, international telephone traffic, and remittances and personal transfers (including worker remittances, compensation to employees, and other person-to-person and non-governmental transfers).  · Political engagement: memberships in international organisations, personnel and financial contributions to UN Security Council missions, international treaties ratified, and governmental transfers. 1.1 Legal restrictions As globalisation expands, many firms find themselves (by choice or coincidence) operating in countries that impose less legal business regulations relative to their home countries. Global firms put pressure on local governments to establish more favourable business regulations or refrain from enforcing their regulatory laws (regardless of how minimal or fair they are) or, if such laws do not exist, to avoid applying them. As a result, less regulated or totally unregulated markets reduce barriers on the flow of goods and money across borders, creating a more integrated and profitable global economy. Over regulation: Business firms in developing nations face much larger regulatory constraints than those in developed nations; as reported in Doing Business in 2005 [World Bank, (2004), p.3], â€Å"(a) they face 3 times the administrative costs, and nearly twice as many bureaucratic procedures and delays associated with them. And they have fewer than half the protections of property rights of rich countries. (b) Heavy regulation and weak property rights exclude the poor from doing business. In poor countiers 40% of the economy is informal. Women, young and low-skilled workers are hurt the most.† The lowering of over regulatory constraints is actively pursued because it brings benefits to firms (they spend less money and time on dealing with regulations) and to governments (they spend fewer resources regulating and more providing social services). Moreover, fewer regulations attract foreign firms with all benefits and, of course, costs associated with them. Hence, globalisation enables firms to benefit from the removal of unnecessary regulations and the establishing of trade-encouraging, incentive-loaded laws. At the same time though due to ‘global complexity, the emergence of new innovative technology-driven markets as well as inability of regulatory authorities to enforce the existing legal enactments (reformed or not), some firms, as described below under illicit trade, may avoid compliance with domestic or international laws. Illicit trade: The fact that, globally, unlawful trade in products and services involving intellectual property, money laundering, third shift production and alien smuggling has been on the rise, implies that authorities in various countries experience hard time in dealing with the problem. As Naim (2003) writes, intellectual property illegalities, a modern kind of piracy, involves business software, shampoos, motorbikes, medical drugs, industrial valves, supply of illegally copied copyrighted music, and among other, theft of brand names. In Naims words: â€Å"Governments have attempted to protect intellectual property rights through various means, most notably the World Trade Organizations Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Several other organizations such as the World Intellectual Property Organization, the World Customs Union, and Interpol are also involved. Yet the large and growing volume of this trade, or a simple stroll in the streets of Manhattan or Madrid, show that governments are far from winning this fight.† Additionally, deregulations of financial markets have given rise to rogue global banking, tax havens, and money laundering. All these factors make possible cross-border money transfers, while simultaneously, improvements in electronic technologies make distance less of a barrier and turn money into e-money defined by Naim as â€Å"cards with microchips that can store large amounts of money and thus can be easily transported outside regular channels or simply exchanged among individuals.† Naim states that â€Å"estimates of the volume of global money laundering range between 2 and 5 percent of the worlds annual gross national product, or between $800 billion and $2 trillion. †¦ The sophistication of technology, the complex web of financial institutions that crisscross the globe, and the ease with which â€Å"dirty† funds can be electronically morphed into legitimate assets make the regulation of international flows of money a daunting task† magnified by the introduction of e-money.† Moreover, according to the United Nations, alien smuggling is the fastest growing business of organised crime. According to Naim, this kind of modern enslavement has become a $7 billion a year enterprise and it involves mostly women and children; and contrary to the efforts made by governments to curtail the problem, especially in the UK, Southern Europe and in the USA, the problem is becoming more difficult and complicated over time. Again, Naim puts it graphically: â€Å"A woman can be â€Å"bought† in Timisoara, Romania, for between $50 and $200 and â€Å"resold† in Western Europe for 10 times that price. The United Nations Childrens Fund estimates that cross-border smugglers in Central and Western Africa enslave 200,000 children a year. Traffickers initially tempt victims with job offers or, in the case of children, with offers of adoption in wealthier countries, and then keep the victims in subservience through physical violence, debt bondage, passport confiscation, and threats of arrest, deportation, or violence against their families back home.† And of course, intellectual property, humans, and financial capital are not the only products and/or services traded illegally for big profits by global networks. There are also markets in human organs, endangered species, stolen fine art, and deadly industrial waste. The unlawful worldwide trades in all these merchandise and services share numerous essential characteristics such as high-tech innovations, societal and political transformations and open fresh markets. Fast spreading globalisation causes the regulatory environment to become more complex which serves as a cover for opportunistic profit through illicit trade, networks and markets. At the same time, governments are becoming increasingly ineffective in dealing with the problem. Although the global community attempts to regulate global business activity through entities such as the World Trade Organization (WTO), the International Monetary Fund (IMF) the World Bank (WB), alliances such as the G-7, or the G-20, and treaties such as the Kyoto Protocol, the global business environment, by and large, is becoming gradually freer. 1.2 Global concentration As legal constraints become wobblier, the power of global firms, in terms of concentration, increases. Widespread merger and acquisition (MA) activities between already big industrial and financial firms started during the 1990s. The new gigantic corporations, by and large, control a large global market share in their respective industries. The build up in global concentration has sweeping implications for the 21st century. As reported by Mohamed (2004) â€Å"total global mergers activity grew from over $150 billion in 1992 to over $2000 billion in 1998, when eight of the worlds ten largest mergers took place. By 1999 it was over $330 billion.† The enhanced mass and influence of these new giants has been central to the intuition that globalisation advances at a blazing speed. In general, most of these global activities, such as MA, foreign direct investment and international trade, are between developed nations. Mohamed reports that â€Å"this concentration of economic power and activity is clearly illustrated by the fact that over 95% of the companies on the Fortune 500 (ranked by value of sales) and FT (Financial Times) 500 (ranked by market capitalization) lists are developed-country companies. In addition, only a handful of developing-country companies feature on the list of the top 300 companies ranked by expenditure on research and development (RD). When one considers that developed countries have less than 20% of the worlds population then the magnitude of the disparities in the global economy cannot be more evident.† Escalated global economic concentration was caused by a number of actions. There was a shift towards focusing on core activities that led to unbundling of formerly diversified conglomerates. There were vast investments in knowledge capital, primarily in hardware, software and information technology (IT) services. Much of the RD outlays of multinational corporations has been on IT, which has helped develop coordination of all aspects of their dealings internationally. There has been globalisation of mass media (e.g., CNN and BBC), which has led to the creation of global franchises (e.g., McDonalds and Wal-Mart), global brands (e.g., Nike) and global marketing infrastructure. The global reach, multiplication and liberalisation of financial markets as well as rapid growth of international capital flows since the 1970s contributed to the growth of multinational corporations. Much of the funds for the new giants came from institutional investors, who prefer big companies that sell popular brands, control large market shares, invest significantly on RD and focus on their nucleus activities. Additionally, as reported by Mohamed, â€Å"the process of global concentration that started in the 1990s happens not only in leading companies but also upstream in their suppliers and downstream in companies distributing their products. The leading companies have pressured their suppliers and distributors to work more closely with them and to become global leaders in their own areas by also growing through MAs. This process has further concentrated the global economy.† 1.3 Excess capacity The massiveness of the global market (the market size effect) along with adaptive, flexible and responsive marketing (the marketing effect) enables global firms to sell more. Additionally, they sell at reduced prices because of lower production costs due to outsourcing and insourcing as well as due to new inexpensive technologies such as the internet and the cell phone (the cost effect). Obviously, market and marketing effects induce firms to reduce their excess capacity but cost effects enable firms to add excess capacity. Whether or not the reduction in excess capacity is in absolute value greater than the increase in excess capacity is an empirical question. Undoubtedly, global manufacturing is on the rise enabling firms to become more adaptable, more flexible in production and distribution as well as more responsive to the needs of customers; and since the global economy is on the rebound after the depths it reached in 2008/2009, see Table 2, it is perhaps reasonable to believe that rising global demand will contribute to a reduction in excess capacity which, in absolute value, would exceed the increase in excess capacity leading to more profit and, hopefully, to improved global economic well-being. Finally, as stated by Helpman (2006), in this global economy we have experienced rapid expansion of trade in services and trade in intermediate inputs. With respect to exports [Helpman, (2006), p.590], â€Å"only a small fraction of firms export, they are larger and more productive than firms that serve only the domestic market, and more firms export to larger markets. A small fraction of firms engage in FDI, and these firms are larger and more productive than exporting firms.† And although according to Helpman (2006, p.591), the theory of comparative advantage, as an explanation of intersectoral international trade, and the theory of imperfect competition, as an explanation of intra-industry trade, are still valid, globalisation brings â€Å"to trade theory a new focus: the organizational choices of individual firms. By focusing on the characteristics of individual firms, the theory can address new questions: Which firms serve foreign markets? And how do they serve them, i.e., which choose to export and which choose to serve foreign markets via FDI? Under what circumstances do they outsource in a foreign country rather than at home? And if they choose integration, under what circumstances do they choose to integrate in a foreign country, via FDI, rather than to integrate at home?† Table 2 Real projected gross domestic product (GDP) and growth rates of GDP for regions (in billions of 2005 dollars) 2000-2015 GDP Year 2000 2005 2006 2007 2008 2009 2010 2015 W 39190.56 44828.46 46641.28 48405.39 49297.02 47992.14 49005.27 58114.16 D 29313.46 32197.09 33091.60 33890.60 34017.97 32749.26 33146.61 37232.39 D less US 18220.25 19763.70 20300.67 20825.75 20895.84 19955.19 20032.69 22162.27 DE 8416.01 10729.04 11507.29 12319.63 12977.47 13056.42 13653.30 18126.72 FCP 1461.09 1902.34 2042.39 2195.16 2301.59 2186.46 2205.35 2755.04 EM 5890.55 7647.06 8198.94 8812.17 9278.61 9278.48 9704.73 12953.24 Annual growth rates Year 2001 2005 2006 2007 2008 2009 2010 2015 W 1.71 3.38 4.04 3.78 1.84 -2.65 2.11 3.45 D 1.27 2.31 2.78 2.41 0.38 -3.73 1.21 2.32 D less US 1.59 1.84 2.72 2.59 0.34 -4.50 0.39 2.07 DE 2.78 6.30 7.25 7.06 5.34 0.61 4.57 5.68 FCP 4.50 5.72 7.36 7.48 4.85 -5.00 0.86 4.57 EM 3.55 6.09 7.22 7.48 5.29 0.00 4.59 5.78 Notes: W = World; D = Developed nations; D less US = Developed nations less US; DE = Developing nations; FCP = Former centrally planned nations EM = Emerging market nations. Source: Data found in World Bank World Development Indicators, International Financial Statistics of the IMF, Global Insight, and Oxford Economic Forecasting, as well as estimated and projected values developed by the Economic Research Service all converted to a 2005 base year. Available at http://www.ers.usda.gov/Data/Macroeconomics/Data/ProjectedRealGDPValues.xls. 1.4 Insourcing and urbanisation in developing economies Insourcing (incoming foreign direct investment) and outsourcing (outgoing foreign direct investment) have been contributing to net benefits of formal firms in both developed and developing nations and in turn to the well being of all. Drezner (2004, p.22), in response to rhetoric against outsourcing in the USA, states that â€Å"outsourcing of American jobs to other countries has become a problem of epic proportion. Fortunately, this alarmism is misguided. Outsourcing actually brings far more benefits than costs, both now and in the long run. If its critics succeed in provoking a new wave of American protectionism, the consequences will be disastrous for the U.S. economy and for the American workers they claim to defend.† In developing nations though, insourcing has been transforming local economies in new directions that cause global anxiety. Demographics in China, India and many more economies indicate that populations, in search of jobs and a better life, have been migrating towards urban, industrialised, centres, abandoning their agrarian lands, creating megacities and giving rise to urbanisation-type problems. (See self-explanatory projected population data for China and India in Tables 3 and 4). Table 3 Urban, rural population trends in China Population (000s) 1985 2005 2025 Total 1,070,175 1,321,569 1,480,430 Urban [Proportion (%)] 241,766 [22.6] 507,725 [38.4] 773,155 [52.2] Rural [Proportion (%)] 828,409 [77.4] 813,845 [61.6] 707,275 [47.5] Source: Available at http://ww2.unhabitat.org/habrdd/conditions/eastasia/china.htm. Table 4 Megacity population trends in India Population (000s) 1991 2011 Total 844,272 1,292,506 Delhi 8,723 24,867 Mumbai 12,572 21,780 Calcutta 10,916 16,509 Source: Available at http://www.ifpindia.org/ecrire/upload/press_ifp_website/ indiapolis_articlerelu.pdf. Megacity build-up and abandonment of agrarian lands have been occurring throughout the developing world1. In all these countries, historical data seems to support two stages of development: In Stage I, prior to insourcing, most of the population lives in the agrarian sector on subsistence agriculture and/or on meagre wages from selling their labour. Overpopulation forces people to exist under perpetually poor conditions causing the supply of labour to be perfectly elastic since there is around abundant low-skilled perfectly substitutable agrarian labour. In general, in this stage of development, the agrarian sector may be described by 2, where A = agrarian, e = equilibrium, WA = wage rate, LA = labour, DA = demand of labour, and LA = supply of labour2. Point V corresponds to the amount of available labour in the sector, point T to the amount of labour employed by the informal economy at equilibrium (point e) and (V-T) to the surplus of labour in the agrarian sector. Insourcing gives rise to Stage II. Incoming foreign direct investment takes root in urban centres (in most cases near the coast, e.g., China) and offers higher wages to attract labour from agrarian regions. In this stage, the industrial sector may be described by 3, where I = industrial. It is assumed that at We supply of labour in the industrial sector is equal to zero (workers would have no incentive to migrate if they cannot receive higher wages). Equilibrium initially occurs at eI, where DI is equal to SI, and labourers get paid WeI > We. At this market wage rate, the industrial sector absorbs portion TU of the total surplus labour available in the countryside. In turn, because there is still unused surplus labour in the agrarian sector (portion UV), more insourcing triggers higher demand for labour in the industrial sector (DI ¢) and migration of the remaining surplus labour; additional migration to urban areas causes the labour supply to become more elastic (the supply functi on flattens and rotates out to SI ¢). At the new and final equilibrium of eI ¢, WeI ¢ The above analysis implies many benefits: employment and income improve; know-how spreads through technology transfer; saving, investment, and tax revenue increase greatly contributing to growth; in addition to the above, people may prefer the city because it is more likely to endeavour entrepreneurial opportunities, find formal education for their children, have access to healthcare, enjoy entertainment, live cosmopolitan lives, and take advantage of proximity to major transposition hubs (for travelling to other countries and inside their own). However, the analysis implies costs as well, especially as they relate to urbanisation, such as: pollution (air, water and land); crime (especially in inner city areas); traffic jams; crowded housing; loss of arable land; food shortages (since people abandon their agrarian fields in the country and/or because they turn agrarian fields near the city into suburbs); creation and stagnation of an informal economy; lack of socialising due to isolation from, and alienation of, neighbours; deterioration in education (due to capacity limitations) as well as healthcare, transportation and governmental services (especially in utilities, fire and police protection); and finally, dependency on food importation, foreign direct investment and foreign capital markets. 1.4.1 Development views: ‘romantic, ‘parasite and ‘dual economy In addition to the above, urbanisation in developing nations spawns informal business firms, which, in general, do not pay taxes or abide by laws and regulations. According to some economists, such firms do not contribute to the overall growth of the economy. Development economists agree though that registered, law abiding, efficiently run entities known as formal business firms have to be encouraged to exist through incentives and governmental policy for they are the only capable of boosting economic growth and development. According to the United Nations (2008, p.1), â€Å"four billion people around the world are robbed of the chance to better their lives and climb out of poverty, because they are excluded from the rule of law.† Informal business firms account for up to about half of economic activity in developing nations but researchers disagree about their role. As explained by La Porta and Shleifer (2008, pp.275-276), â€Å"there are three broad views of this role, (referred) to as the romantic view, the parasite view, and the dual economy ‘dual for short view (otherwise known as the) ‘Wal-Mart theory of development.† In the ‘romantic view, associated with de Soto (2000), informal firms, which are similar to formal (for example, they attract equally talented employees), are held back by barriers to official recognition: lack of secure property titles, deeds, securities and contracts that describe the economically significant aspects of assets. The lowering of such barriers would improve the ability of firms to borrow against registered and secured property-based collateral; additionally, it would enable them to more easily acquire, and/or merge with, other firms. In contrast, the ‘parasite view holds that informal firms, led by less-able, mostly uneducated, entrepreneurs, choose to stay small; as such, they lack the needed scale to operate efficiently and, conveniently, they enjoy cost advantages since they do not pay taxes, offer fringe benefits to employees, follow safety requirements in the workplace or abide by other regulations and the rule of law. These firms impair the economys growth: they reduce overall productivity and they take away market share from more productive formal firms because of their cost advantage over them. Hence, governmental initiatives to uproot these ‘parasites (such as enhancing audit capabilities to reduce tax evasion and enforce regulations) would contribute to efficiency, employment, growth and development. Finally, according to the ‘dual view, informal and formal firms may coexist as long as government tax and regulatory policies support the development of formal firms without encouraging or discouraging informal firms. Unlike the romantic view, this view holds that formal firms are different than informal: formal firms attract more skilful employees, their owners are better entrepreneurs, they are officially recognised, they can raise capital and they abide by regulations. Unlike the parasite view, the dual view maintains that informal firms are not a threat to formal firms because, for the same products, they charge higher prices (due to inefficient production and thus high costs) and because they mostly operate in different markets selling to different clients. La Porta and Shleifer (2008, p.278) report that empirical evidence supports the ‘Wal-Mart theory of economic development and they stress that â€Å"the dual view sees the (informal) firms as providers of a livelihood to millions, perhaps billions, of extremely poor people, and it cautions against any policies that would raise the costs of these firms. This view sees the hope of economic development in policies, such as human capital, tax, and regulatory policies, that promote the creation of (formal) firms, letting the (informal) ones die as the economy develops.† 2 The increasing relevance of auctions Firms may participate in auctions as buyers (bidders) or sellers (auctioneers). As buyers, they want to maximise buyer surplus (the difference between what they would be willing to bid at and the bid they actually pay). As sellers, they want to maximise profit (the difference between the bid they would be willing to sell at and the cost of the auctions object). Although any entity may rely on auctions for selling and buying, a few ‘liaison firms have become very famous over their valuable and pioneering business concepts. Such firms are Christies, Sothebys, and eBay.com. Retail, franchise or land acquisition, government procurement, and various services, among many more, rely on auction-type selling and buying. For example, retail stores (such as Filenes Basement in Boston) report a price on an items tag but the actual price paid by the client is lower the more time the item is up for sale on the floor; in turn, unsold items are donated to charitable organisations. Similarly, sellers in fresh produce markets lower prices towards the end of the day prior to disposing off the items. Governments purchase military assets and/or services of engineers for public infrastructure by relying on bids submitted by the sellers of those services and franchise owners bid for the privilege to own a franchise licence. Home developers, often, buy land in multiple lots through auctions and, of course, eBay has turned every single person on the planet into a potential auctioneer and/or a bidder. Auction results depend on many factors such as type of auctions or design, information of bidders valuations (which may be identical or different) and their attitudes towards risk, whether or not bidders bid on many or on a bundle of units and, of course, on whether or not bidders and auctioneers act ethically. For more details and a guide to literature see Klemperer (1999). 2.1 Bidders (or buyers) Table 5 describes five well-known auction types. Bidders in an English auction would have the incentive to bid higher than other bidders but lower than their true valuation. An advantage to English auctions is that, during the auction, bidders may swiftly revise bids upwards (up to but not higher than whatever they are willing to pay) based on information about the valuations of other bidders in the auction. Bidders in Dutch and First-Price Sealed-Bid auctions would have the incentive to bid strategically so that they never lose to someone with a lower valuation of the item under auction. A strategy for the bidder in these auctions would be to shade down the bid to the unknown second highest bid. As explained by Pepall et al. (2005, pp.640-641), each bidder may estimate the second highest bid as follows: assuming that each bidder in the auction believes that her valuation is the highest, if bidders draw from a uniform distribution [0, Ï…] with all N bidders equally spaced on this interval (where Ï… = highest bid), then the average of the highest value in samples of size N drawn from [0, Ï…], or the second highest bid, would be [(N 1) / N]Ï…. (For example, if there are N = 5 bidders and a bidders highest valuation is $100, then the second highest valuation is [(5 1) / 5] $100 = $80; hence, the optimal bid for this bidder would be $80). But, if the bidder is wrong on her beli ef that she is the highest bidder she may lose the auction. Thus, bid shading implies a possible benefit an