Writing 102 Essay Example | Topics and Well Written Essays - 1000 words

Writing 102 - Essay Example Red even comes to believe in Andy’s innocence. In the initial days of his prison life, Andy has difficulties adjusting. Most of the prisoners think of him as a snob. As a result, he undergoes many tribulations including rape from a prison gang that refers to themselves as the sisters. Red is the prison smuggler from whom you can get anything you need from the outside. After a while in prison, Andy begins to work for the guards, filling their tax returns (King 56). This makes him a hero in the prison community. He also helps to set up a prison library. In the process of working for them, he begins to launder money for them, reducing his chances of getting out of prison. Andy admits to Red that he had friend set up a false identity through which he now has a lot of money. He dreams of an escape from prison and he dreams of Red going with him to Mexico. One day he manages to escape and his escape signifies hope for the other prisoners. Eventually, Red gets out of jail and finds the rock that Andy had described to him, underneath which the keys to the bank’s safety deposit box were to be. He instead find a letter inviting him to join Andy in Mexico and a $100 0 gift. Red feels a sense of renewed hope as he plans to join Andy in Mexico. The movie ‘Shawshank Redemption’ is based on Stephen King’s book. It was adapted screen directed by Frank Darabont. Just like the book, the movie takes one through the journey of despair that inmates can go through, and the importance of having hope and a strong spirit. Unlike the book however, the movies uses film language to bring forth its theme of despair and hope. Film language includes lighting effects, music, and different camera angles (The Shawshank Redemption, Dir Frank Darabont). In the movie, most scenes do not have background music to represent the lack of life that is characteristic of life in prison. There is only one scene that has music when Andy

The obstacles and opportunities faced by either South Africa Essay Example for Free

The obstacles and opportunities faced by either South Africa Essay What are the obstacles and opportunities faced by either South Africa or Mozambique in their attempts to improve economic and political development? Introduction In this essay I will attempt to look at the obstacles and opportunities faced by Mozambique in their attempts to improve economic and political development. I will look at the reasons why Portugal found it hard to decolonise her possessions because she could not neocolonise them. I will look at how Mozambiques problems were exacerbated by civil aid programmes and the conflicts between itself and other African countries. Mozambique: advantages and disadvantages Mozambique is situated at the South Eastern side of Africa. It is the nearest port for Malawi, Zimbabwe and the northern part of South Africa. It has some crucial resources geographically which give it an advantage over other African states. It is also strategically important as it provides easy access to other countries. It is roughly three times the size of England. One of the biggest disadvantages that Mozambique has is that there is no navy or air force to protect its coastal waters that are open to exploitation and capitalisation as there is no marketing control. The only way that this exploitation and capitalisation can be controlled is by the development of a better infrastructure of rail and roads. This is highly unlikely to be achieved due to the lack of cooperation between the regions. There are no coastal protection vessels and also no ways of collecting excise duties. These would be necessary to allow the maximisation of export quantity and therefore allow the country to capitalise, which would give it macro economic stability. Economics and conflict Historically Mozambiques trade was heavily influenced by Islamic and Arab traders. The main exports were gold and slaves. Until the 1930s most of its business was controlled by large Portuguese organisations, this only changed after the coup in 1926, which brought an end to these companies. Before this coup the pan Lusitanian community were based on Lisbon and its governmental control and policies. The regime led to fascist policies and principles. Plantations were developed but were only maintainable through forced labour. This forced labour meant that demand increased and there need to be an increase in the forced labour, creating a perpetual circle and demand for more workers. In the Post War boom commodity prices increased dramatically and led to a further demand from the whites for better services etc. There was an increase in tensions from neo traditionalists, which was exacerbated in the cold war of the 1960s, with military intervention. There were no compromises from Portuguese as Portugal could not decolonise as it could not neocolonise. Alongside the military intervention was an increasing demand for independence. In June 1962 3 exiled groups, Manu, Idenamo and Unami under the allegiance of Julius Nyerere form a front for the liberation of Mozambique called the Frelimo. This was a unified coalition of indigenous opposition to Portuguese rule. In 1964 they crossed the river and started an armed conflict against Portugal and its rule. South African support is given through Rhenamo, and the Rhodesians also react against the conflict. The result of the conflict meant that Portugal was overthrown when they retreat in 1974. Frelimo holds traditional government until 25/6/1975 when independence is declared. It is around this time that the Mozambique support for Rhodesia escalates and the civil war starts. What they want to achieve are military buffer zones were they can use for training grounds in order to train their soldiers. Frelimos Marxist Leninist beliefs that everything should be controlled through a central government is one of the main issues. By the 1990s Mozambique is almost bankrupt and there follows in 1992 democratic elections. Tensions still exist between people on the inner circles of individual parties; the old guard are refuting the intervention of the International Monetary Fund as it would give them no option but to embrace European international practices. Poor education and a lack of a civil service only compound the problem. There is a wholesale exodus of the Portuguese nationals. There is surprisingly a relatively civil relationship between Frelimo and Renamo which leads to an acknowledgement of fairness in the voting process, not skewing the vote in favour of one or another. This was the political starting point to the acquisition, marketisation and capitalisation of untold riches for the Mozambique people. MOZAMBIQUE TODAY Following the conflicts that I have discussed above, the state of Mozambiques economy is still very poor. Its position in the global economy is 168th out of 174. Its annual growth rate is averaging out at about 14% but the benefits are very slow in trickling down to the people. There is a need for public sector reform and good governance to improve this. Variations in national markets cannot be controlled by the producers, and revenue collection remains a problem. Much of the revenue collected is in the urban areas but only benefits the elite in the city. Military spending has reduced dramatically, and the first role of governance has to be defence in order to protect a country. The International Monetary Fund instructed Mozambique to sell off its Para -state industries, and it now relies heavily on foreign aid to survive. The debt level is high although most countries have cut it to 25%, with Britain completely wiping out their portion. Underdevelopment has favoured the middle class bourgeoisie, opening up the markets to allow for borrowing and thus creating some financial stability. There has been a reduction in tariffs and inflation has dropped from 71% 9% allowing for the redistribution of wealth. The downside to this is that it creates unemployment, putting more people back into the trap of poverty, and smuggling is rife as people see it as the only way to survive. One may ask does the medicine cure the patient or help to kill it? People have very little escape from poverty in these areas as there is no infrastructure and any journeys must be made on foot. Even a trip to the doctor, something that is taken for granted in western civilised societies could mean a walk of about 45 kilometres, if you didnt die on the way. The very aid that was supposed to help the people to improve their lives often made them worse. As Tordoff tells us these were grandiose, overcapitalised agricultural schemes that carried very few benefits for the peasant farmer, thus still being resultant in the food shortage and hunger. The projects often also caused environmental damage. The debt was only increased by this because of the money being misspent on unsuccessful programs, and the loss of export income. The inability to earn wages led to further poverty and strife in the urban communities. The main priorities in Mozambique are ones of sanitation, clean water, and vaccination. This has been shown to work in other countries like Kenya. There is lots of power over business from multinational organisations such as Mitsubishi and Enron. The question one needs to ask is who is it that benefits? Is it the people of the country or the business men in the city? What is the motivation behind people and countries who offer aid? Is it just another opportunity to exploit and profit from the rich natural resources that the country has to offer? Conclusion Mozambique is still relatively poor as a country in economic terms, although it is rich in others such as copious fishing waters that are underused in the global markets due to poor infrastructure. Mozambique was lead by the Portuguese government who were ill equipped to compete adequately on an international and global level. When globalisation took off in other African states, Mozambique was left behind, and never had an industrial revolution. This meant that although there was plenty of opportunity to further develop the country and equip it with the ability to trade on global levels, other capitalist states and markets were far more advanced, with a good infrastructure that opened them up to the markets. The people of Mozambique were poorly educated, many of them illiterate, and because of this they were exploited by other nations. Many of the countries inhabitants are rough peasants and this exploitation led to a fascist dictatorship. They did not have the opportunities like other countries such as Ghana under the leadership of Nkrumah. Places like this could colonise as the leaders had skewed their colonies and economies and bequeathed more education to its inhabitants. Mozambique was never going to be able to match the massive trading powers of France and Britain, as Portugal had never prepared it to do so. Portugal had exploited it but not developed it. The idea behind neocolonisation was to allow maintenance of economic control but allowing it no input. There were no representatives around the table to help with the management of decolonisation. The only way that Portugal could decolonise Mozambique was through a bloody battle, often in a very vicious manner. The advancing system of France meant also meant that their military were stretched to the limits in trying to protect its country, but stood no chance and were often abandoned, as happened in the civil war. Prior to all this all decisions about the country had gone through the president in Paris, who operated in a Masonic way. Post-modern ideas of independence for Mozambique were hindered by the failure of the Westminster model of government, due to incompatibilities and ill equipped governments. There were often visible aspects of leaders becoming economy holders of the empire of entrepreneurship. Mozambiques problems were confounded and exacerbated by the civil aid programmes that supposedly came to help them. The growth centred approach to poverty only compounded this further. Targeted intervention was of no use as the poverty was so widespread. The average wage was well below the poverty line and there was an even harder exertion for the women to secure rewards that were commensurate with their contributions to the independence struggle. They were often given the opportunity to go to the markets with their produce but were then taxed heavily, and losing out on any sort of profit they may have made, basically a form of legalised extortion. Problems with landmines meant that the land was very dangerous to work on, with a high risk of injury or death. These also helped to slow down economic redevelopment. Many of us will remember the campaigns that were led by Princess Diana showing the terrible injuries that people had suffered through landmines detonating as they worked. There was a plea for international aid to be brought in to clear away the landmines and to give the people a fair chance to improve themselves and their towns. By implementing harsh and complicated economic pressures on its people, this is difficult enough in a wealthy modern state, the picture is even worse when we talk about African countries. The problems with a rapidly collapsing infrastructure, or as in the case of Mozambique, a non existent infrastructure, alongside its entrenched parastatal sector hostile to any change, which may threaten its interests, the problems not only escalate but become utterly formidable. In addition to this, the private sector becomes a strange amalgamation of disparate unrelated components. It consists of large multinationals, medium local sized organisations usually run by Asians, and a huge informal sector that largely comprises of peasant farmers. This means that the private sector is unbalanced and isolated to some extent. Considering all these points it is clear that there should be no rush for the imposition of multi party democracies and an unfettered market economy, even if it was possible to do so for Mozambique. Surely any change should be done gradually, with long term strategies that work alongside and slowly change the present systems. To sum up, arguments for structural adjustment policies of the International Monetary Fund, and lately on an increasing level in the World Bank, only focus on the microeconomic structures, and not the macroeconomic structures of all African countries including Mozambique. One must recognise the role played by recession in the West, due to declining terms of trade for primary products and the oil crisises. Those who believe in structural adjustment believe that the majority of african states share a common state corporatism that is economically corrosive and unproductive. Originally the motivation behind these programmes was to liberalise trade, reduce the role of government and parastate industries in the economy, and to end various subsidies to various sections of the population. It was believed that this would end the balance of payment crises and therefore promote economic growth. By the early 1990s it had been shown that this was not actually the case and that policy based lending had not acheived the intended goals. A new policy was now required to correct this, and the International Monetary Fund now decided that they needed to create a series of rational law based societies throughout sub-Saharan africa. This policy would need to make it clear that investment decisions were to be made on economic grounds, rather than on politically motivated grounds. This plainly put any emphasis of blame, due to previous policy failure, about the economic crisis in Mozambique and esoecially in Mozambique, was laregely a creation of the individual african states themselves. This removed any liability and responsibility on the west, protecting its own interests again. If there is no benefit to themselves there is a reluctance to become involved in the countries problems. The retention of these types of attitudes mean that Mozambiques problems are unlikely to see any significant change in the near future. There will be change but only very slowly as discussed earlier. In my beleif I think the Mozambique people have always been given a rough deal, and cannot see that it will change quickly, as the people who hold the power and capability to enforce change are fearful that they may lose some independance, i.e. the middle class bourguoise. The fear of a lack of control for those in the city, means that the poorer members of society are repressed continually, and because they do not have the capability or knowledge to do something about it, it is unlikely that it will change. I agree that the support given through international aid is necessary, but it should be helping the peasant farmers and the poorer members of society, not just the big boys in the city. This only extenuates the gap between the haves and have nots. Bibliography Tordoff W. Government and politics in Africa.(3rd ed) 1997. Macmillan press. London Clapham.C.Third World politics: an introduction. 1985. Croom Helm. London Chabal. P.Political Domination in Africa.Reflections on the limits of power. 1986. Canbridge University Press. London Cammack P. Capitalism and democracy in the Third .World. 1997. Leicester University Press. Leicester.. McLean. I. Concise dictionary of politics. 1996. Oxford University Press. Oxford. Webliography www.homeoffice.gov.uk www.wto.org www.wtowatch.org www.worldbank.org/research/bulletin www.dfid.gov.uk

Death Of A Saleman. Is Willy L Essay -- essays research papers

According to Arthur Miller, “The tragic feeling is invoked whenever we are in the presence of a character, any character, who is ready to sacrifice his life, if need be, to secure one thing, his sense of personal dignity.'; Willy Loman was willing to do that, no matter what the cost. That makes Willy Loman an excellent example of Aristotle’s tragic hero. Willy is far from a perfect man. He is a flawed human being, and his flaws are very much like our own. He wants what we want--dignity, success, respect, and a decent standard of living. He was not born in a high social class and he never lived in high society but he believed that his was in an upper class of society. He told himself so many times that his family and him were not average, that they were better that th...

Five force model of PIXAR

Threat of new entrants: High Advanced technologies make it difficult for new competitors to enter the market because they have to develop those technologies before effectively competing. The requirement for advanced technologies positively affects PIXAR. The PIXAR has a high level technology development department, so the threat of new competitors is the technology. Threat of substitute products or services: Moderate I consider substitute products to be theater or other forms of entertainment. Internet is also a substitute form of entertainment as the concept of instant messaging was very popular at this time. Also, we can see the beginning of the popular social network Facebook gain traction as it was launched in 2004. Rivalry among existing competitors: High Since there are only a few key players with similar percentage of market share (ranges from 14%-19%), the competition between them is strong. To be more competitive, the growing trend is to consolidate and acquire other studios. For example, Vivendi acquired Universal in 2000, which was then acquired by GE in 2004 and Viacom acquired DreamWorks in 2006. Power of buyers: Moderate I assess this threat to be moderate as there are many potential consumers with limited financial impact on the industry. In addition, the industry is dominated by key players thus is able to limit the options for the buyers. On the contrary, even though there are only a few options, there are effectively zero switching costs for customers. Hence, watching a film by one company does not make it more costly or difficult to then watch a film from a competitor. Power of suppliers: Moderate I assess this threat to be moderate since with technology, hand-drawn animation is being replaced by computer technology. In addition, the needs for these computer animation skills start to be outsourced from North America to Asia Pacific where there are significant lower costs coupled with high quality computer animation production.

Nowhere Without A Mentor Essay

As the journey called life unfolds, imagine what one would be without mentors. Mentor is a vague word used to describe a person who helps another, who is trusted by another, who is a counselor to another, but most of all is someone who influences another. With no mentors or guides the title character in the novel Siddhartha by Herman Hesse, would not have found self. The three characters that have the greatest influence on Siddhartha are Gotama Buddha, Kamala and Vasudeva. From Gotama Buddha, Siddhartha realizes he would rather walk his own path than follow another’s. After pursuing Buddha’s followings with his companion Govinda, Siddhartha has a revelation while he is conversing with Gotama. † ‘That is why I am going on my way- not to seek another and better doctrine, for I know there is none, but to leave all doctrines and all teachers and to reach my goal alone- or die’ â€Å"(34). This quote shows how Gotama has influenced Siddhartha to seek Self unaccompanied, marking a significant turning point in Siddhartha’s journey. Subsequent to Siddhartha’s encounter with Buddha, he meets a beautiful woman named Kamala who drastically changes him. The author of Siddhartha explains in detail how the title character slowly takes on characteristics of average citizens while living with Kamala. â€Å"Gradually, along with his growing riches, Siddhartha himself acquired some of the characteristics of the ordinary people, some of their childishness and some of their anxiety†(77). At this point in the novel, Siddhartha begins to be disgusted with himself, and recognizes that life with Kamala is not the place he should be in to find peace. Shortly after he apprehends this, Siddhartha leaves Kamala only to find a peaceful Ferryman, named Vasudeva who introduces Siddhartha to a river. In the following quote, Vasudeva explains to Siddhartha the power of the river that they live by. â€Å"‘The river knows everything; one can learn everything from it'†(105). This quote shows how Vasudeva introduced Siddhartha to the river that led him to find peace. After Siddhartha’s long journey and his encounters with many people who influence him, he finds peace within himself. The three characters that have  the greatest influence on Siddhartha are Gotama Buddha, Kamala and Vasudeva. Gotama Buddha helps Siddhartha realize that peace is found without teachers, Kamala changes Siddhartha into an ordinary citizen and Vasudeva introduces Siddhartha to a river that leads him to find peace. Although Siddhartha has much help during his journey to find peace, his own strong will is the deciding factor in him reaching his goal.

Turn Baking Soda Into Washing Soda

Turn Baking Soda Into Washing Soda These are easy instructions for making sodium carbonate, also known as washing soda or soda ash, from baking soda or sodium bicarbonate. Make Sodium Carbonate Sodium bicarbonate is CHNaO3, while sodium carbonate is Na2CO3. Simply heat baking soda or sodium bicarbonate in a 200 F oven for about an hour. Carbon dioxide and water will be given off, leaving dry sodium carbonate. This is the soda ash. The chemical reaction for the process is: 2 NaHCO3(s) → Na2CO3(s) CO2(g) H2O(g) The compound will readily absorb water, forming the hydrate (returning to baking soda). You can store the dry sodium carbonate in a sealed container or with a desiccant to keep it dry or allow it to form the hydrate, as desired. While sodium carbonate is fairly stable, it slowly decomposes in dry air to form sodium oxide and carbon dioxide. The decomposition reaction can be accelerated by heating the washing soda to  851 C (1124 K). Key Takeaways: Baking and Washing Soda Sodium bicarbonate (baking soda) and sodium carbonate (washing soda) are similar molecules. The difference is  how much water is incorporated into the molecule.If you bake baking soda, it decomposes to form washing soda, releasing carbon dioxide and water.Over time, washing soda decomposes for form sodium oxide, releasing carbon dioxide. Warmer conditions speed the decomposition process. Uses for Washing Soda Washing soda is a good all-purpose cleaner. Its high alkalinity helps it cut grease, soften water, and disinfect surfaces. Keep in mind, sodium carbonate solution irritates the skin and can produce chemical burns in pure form. Wear gloves when using it! Sodium carbonate is used to adjust swimming pool pH, prevent caking in foods, and as a treatment for ringworm and eczema. Its also used on a commercial scale for making glass and paper products.

Free Essays on Definition of Code Hero (Hemingway)

According to Ernest Hemingway, the code hero is a man who lives correctly, following the ideals of honor, courage and endurance in a world that is sometimes chaotic, often stressful, and always painful. The code hero or heroine (like Catherine Barkley) must perform his or her work well to create a kind of personal meaning amidst the greater meaninglessness. Still, life is filled with misfortunes, and a code hero is known by how he endures those misfortunes. Ultimately, the code hero will lose in his conflict with life because he will die. But all that matters is how one faces death. In fact, one should court death, in the bull ring, on the battlefield, against big fish, because facing death teaches us how to live. Along with this, the code hero must create and follow certain rituals regarding death because those rituals help us. The bullfighter must have grace and must make his kills clean. He must face noble animals. He must put on his suit a certain way. Similarly, a fisherman shouldn't go out too far. He should respect the boundaries the fish have established for fishermen. Religion is helpful only in that it provides us with rituals. But religions are wrong when they promise life after death.... Free Essays on Definition of Code Hero (Hemingway) Free Essays on Definition of Code Hero (Hemingway) According to Ernest Hemingway, the code hero is a man who lives correctly, following the ideals of honor, courage and endurance in a world that is sometimes chaotic, often stressful, and always painful. The code hero or heroine (like Catherine Barkley) must perform his or her work well to create a kind of personal meaning amidst the greater meaninglessness. Still, life is filled with misfortunes, and a code hero is known by how he endures those misfortunes. Ultimately, the code hero will lose in his conflict with life because he will die. But all that matters is how one faces death. In fact, one should court death, in the bull ring, on the battlefield, against big fish, because facing death teaches us how to live. Along with this, the code hero must create and follow certain rituals regarding death because those rituals help us. The bullfighter must have grace and must make his kills clean. He must face noble animals. He must put on his suit a certain way. Similarly, a fisherman shouldn't go out too far. He should respect the boundaries the fish have established for fishermen. Religion is helpful only in that it provides us with rituals. But religions are wrong when they promise life after death....

Rules for Writing out Numbers

Rules for Writing out Numbers Why do so many people find it difficult to remember the rules for using numbers in formal writing? Probably because the rules seem a little fuzzy sometimes. So what can you do? Its no mystery: as with anything, read and study the rules several times, and it will all seem natural, eventually. Writing Numbers One through Ten Spell out numbers one through ten, as in this example: My little brother ate four apples before dinner and became ill.Why do parents always check to see if babies have ten toes? Writing Numbers Above Ten Spell out numbers above ten, unless writing the number would involve using more than two words. For example: I have sixty-three dead bugs in my collection.My cousin has 207 bugs in his.This site has given me a thousand helpful hints for my homework.My grandmother is seventy-two today.My little sister had about 4,763 measles on her face. Always Spell Out Numbers that Begin Sentences It would look odd to begin a sentence with a numeral. Four hundred fifty people attended the birthday party. However, you should try to avoid using long, clunky numbers at the beginning of a sentence. Instead of writing that four hundred and fifty people attended a party, you could re-write: There were 450 people at the party. Dates, Phone Numbers, and Time Use numbers for dates: My birthday is on March 16.He was born on Valentines Day, 1975. And use numbers for phone numbers: The phone number for the school is 800-555-6262The international code for England is 44. And use numbers for telling time if using a.m. or p.m.: The alarm will sound at 7 p.m.I make my bed at 7 a.m. each morning. But spell out times when using oclock or when the a.m. or p.m. are omitted: The alarm will sound at seven oclock.I make my bed at seven each morning.

Alfred Hitchcock Essay Example | Topics and Well Written Essays - 2500 words

Alfred Hitchcock - Essay Example Margot once had a relationship with Mark Halliday (Robert Cummings), a crime writer for American TV, but broke it off when Mark went to America. The meticulous planning of his wife's murder invariably brings Tony under the spotlight but does not diminish his stature by one iota for the sole reason that he is not desperately trying as someone in his position should do. Tony's diabolical character and the macabre detail of the film make it not only a three dimensional suspense thriller but also a multidimensional critique of upper echelons of the society. German Expressionism and post-modernism could have influenced Hitchcock to a greater extent because he uses a lot of symbolism and mise-en-scene that borders on imaginative handling of the plot. Mise-en-scene is a production technique that enables the director to achieve some of the mood effects through improvisation. Hitchcock's incredible manner of seamlessly integrating the plot and then resolving it by using that uncannily characteristic deus ex machina in the form an untiring intelligent sleuth is obvious throughout the story. Though a number of films were made in keeping with this novel discovery, none of them could match the 'master effect' of it as "Pandora's Box" did. German Expressionism had a big impact on Hollywood by way of influencing some of the big studios to employ German migrs wh o were mostly cinematographers and directors fleeing Nazi rule in Germany.Expressionism, particularly, had a positive effect on horror genre and noir genre - both highly receptive to imaginary influences in design and production. Though the very far fetched features associated with this movement, were gradually rejected, the visual aesthetics of it continue to appeal to generations of film-makers till the present day. The plot thickens here with more suspense being added by Margot's susceptibility and naivety. When Margot is alone at home, Swann the hired would-be assassin sneaks in with a key that's been left for him. Tony calls his wife on the telephone, luring her out of the bedroom, and Swann strangles her with a stocking. But Margot buries a pair of scissors in her killer's back. Through some fancy maneuvering, Tony is able to make it appear that his wife acted against a blackmailer in cold blood. She's arrested and sentenced to death, but a police inspector (John Williams) beg ins to unravel Tony's story. Critics have not spared Hitchcock and his films of their poison pen. We should take a closer look at the Montage technique used in this film. From the 1930s to the 1950s, montage sequences often combined numerous short shots with special optical effects such as fades, dissolves, split screens, double and triple exposures and even music. There were special artistes to assemble these effects other than the director. Hitchcock made use of this technique to achieve a coordinated synthesis between the conveyed impression of a set and the anticipated response of the audience. Critics did not appreciate this technique much. Hitchcock's first American movie, Rebecca (1940), won the Best Picture Academy Award., but in spite of this achievement the critic in "Variety" (March 27, 1940) gave it a bad review. He wrote "Dave Selznick's picture is too tragic and deeply psychological to hit the fancy of wide audience appeal. General

Soundscapes in which Music operates in a Worship Setting Essay

Soundscapes in which Music operates in a Worship Setting - Essay Example The "Tao Meditation", is used to convey the worshiper into a deeper and more peaceful state of worship and spiritual growth. The music is focused in soft Tibetan sounds, with wind chimes, gongs, bells and gentle natural sounds to convey a deeper sense of inner peace and a desire to enter into the inner reaches of ones spirituality. The covey of the simple music allows for the worshiper to find a peaceful oasis of relaxation and stress relief from the business of life, to tap into the inner energies of spiritual awareness and silence. The setting, that I experienced was a simple room, lots of natural light where the worshipers like myself sit in simple seating set in a semi circle, with a screen at the opening of the circle that provided the features that impact upon the sight sensory experience. The leadership by a competence alternative worship leader gently brought one into a sensory but spiritual experience. The significance of the experience is the fulfillment of the inner spirit ual finding release in the gentle art of meditation. There was no specifically set ritual, just a simple group desire to come together to enjoy and experience a deeper and more meaningful spirituality. The ritual if any; or indeed order, was the gentle leading of the group by the leader into the peaceful state of meditation. ... The leadership by a competence alternative worship leader gently brought one into a sensory but spiritual experience. The significance of the experience is the fulfillment of the inner spiritual finding release in the gentle art of meditation. There was no specifically set ritual, just a simple group desire to come together to enjoy and experience a deeper and more meaningful spirituality. The ritual if any; or indeed order, was the gentle leading of the group by the leader into the peaceful state of meditation. Gently listening to the noises and sounds of the music and visualizing the scenes being shown on the screen, before us, invoked this. The meditation allowed each of group of worshipers to concentrate on their own personal spiritual journey and belief structure. The simplicity of the meditation enacted a sense of restfulness, peace and an inner desire to enjoin with the God force or life force within each of us. This was drawn out by viewing the many simple and colorful shapes that were sometimes floated, phased in and out on the screen before us then melting into the distance of the landscape on the screen. The group were able to discuss the experience after its conclusion in a facilitated discussion led by the worship leader. Many of the participants were able to explain that it allowed them to tune into the higher self or as some put it, the "God force" within us. What I enjoyed about the experience was that it allowed one to maintain ones own identity and individuality, without placing formal belief structures and dogmatic systems before the simplicity of simply and gently worshiping and enjoying peace with God. The second experience was completely different in its setting and style. The setting was a Methodist Church, which

Colour Essay Example | Topics and Well Written Essays - 500 words

Colour - Essay Example This research investigates the complex meaning of the color red, considering the ways its meaning can vary amongst individuals, cultures, and subcultures. In examining the colour red, one of the most overarching considerations is establishing an epistemological framework between cultures. Friedman & Miyake (2004) investigated the extent language shapes human perception. This study primarily revealed that cultures with more complex vocabularies for designating colour subsequently perceived colour in different ways. In terms of red, this is significant as it is difficult to speak of a singular ‘red’ throughout world culture, but rather a series of approximating notions of ‘redness’ that are at best pragmatically linked. This notion of redness has assumed symbolic recognition in global society. One of the most prominent such instances is the notion of red as embodying revolutionary ideas, or more specifically socialism and communism. Earl (1996) examined this thematic implementation of red in a variety of 20th century social contexts. Undoubtedly influenced by the Red Star communist symbol, as well as the Russian semantic linkage between red and ‘beautiful’, red came to acquire such prominent symbolic properties that countries with communist regimes were even referred to as ‘red’ countries. This symbolism extended to specific social movements; for instance, the perceived intrusion of communism into the United Kingdom and United States was referred to as the Red Scare. While there is the distinct possibility that these political notions of redness were influenced by deeper human instinctual perceptions of red, the symbolic perception of red also varies across cultures. In this way, rather than ‘red’ purely embodying revolutionary ideology, the color also connotes passion and virility. For instance, from a comprehensive qualitative approach, red roses, hearts, or even candy harkens these essential qualities. Ball (2001, p. 43)

Media WRITING Essay Example | Topics and Well Written Essays - 750 words - 1

Media WRITING - Essay Example notice of public and simultaneously to attract governing bodies in taking measures against such occurrences rather than to assimilate views or to interpret a particular course of action. The intended audiences for this news were the general public. After going through the article, it can be stated that the reporter intended to depict the social concerns related with the safety and security of women in the modern day society. The institution behind this particular material can be identified as the online news publishing media. When assessing the types of industries and corporations involved in media writing, various segments such as radio broadcasting, television, film entertainment, print media and advertising among others can be identified which attempt broadcasting updated news from different genres for the general public either within the local or national or in the global periphery. The media writing illustrated through the aforementioned article hereby reveals the propaganda of online news broadcasting. The content of the material presented in the article can also be stated as well-written in a manner which is easier to be interpreted by the general public. No offensive abbreviations or ground-breaking and persuasive forms of writing have been used in this article being presented with adequate justification to gain the consciousness of the public towards such social issues. The article published by Metro Newspaper on 6th February 2013 with the title â€Å"Forgotten cruise ship becomes sand Banksy with aid of street artists† can be categorised as an advertising media writing which depicts the talent of a group of urban street artists giving a new shape to a corroded old ship by making attractive paintings on its rusted body. It can thus be stated that the media writing exhibited in this article is based upon a ‘writing for advertising’ style as the article intended to convey its audiences with a message regarding the group of talented urban based street

Select a topic from EITHER (i) social justice, OR (ii) God's Essay

Select a topic from EITHER (i) social justice, OR (ii) God's existence, OR (iii) death and meaning in life. Which thinker or p - Essay Example The 15-year old fictional character has viewed the relationship between the two as necessary for the point of appreciation. In her thoughts, one cannot appreciate life if death does not exist to be the human race’s inevitable end. On the other hand, Sophie thought that one could not think of death alone without having realised how great it is to live (Gaarder, 1994). These contentions offer a thought-provoking exploration in taking both death and the meaning of life into perspective. This paper then explores the presence of thoughts regarding death and the meaning of life. In so doing, thinkers in the field of philosophy are examined and later reduced to a list of whom this paper think offers the best arguments and conclusions as per the matter concerned. The selection of such philosophers is consequently justified. Life and the Minds that Explored its Meaning Beginning to explore the meaning of life is in itself broad and complicated. If three persons are inquired upon with t hat question, it is highly likely that the person asking would get three unique interpretations. It then comes as less surprising when philosophers in the day have to offer different perspectives of their own. If one would even think of it, philosophers--no matter which timeline he/she belongs to--attempts to unravel the meaning of life in his/her own angle. As an illustration, the schools of thought of Socrates, Plato, and Aristotle could be accounted for as one unique quest from the other. First, many would attribute Socrates to be among the thinkers responsible for the founding what is now known as the philosophy of the Western culture (Long, 1988). This form of recognition stems from the philosopher’s notoriety in being provocative of many ideas, questioning the society’s status quo, and stirring the thoughts of the youth during his time. These ideologies were Socrates’ form of investigating on the meaning of life. Although not an outright move, it was his w ay of challenging society’s thoughts on what is the meaning of life for them. Consequently, his move on continuous inquiry of things was his way of giving a picture of the meaning of life. Without doing so may be equal to life without meaning. On the other hand, Plato--though a student of Socrates--was his own man in terms of philosophical contribution. Particularly, his role in the early foundations of science and Western philosophy is considered to be another one that is essential to the prosperity of the knowledge up to this day. Aristotle, who was Plato’s student, meanwhile had a broad range of focus and dealt largely with the physical sciences. The student-teacher thought may have differed in content but just like Socrates, the central ideologies of the two philosophers have each had their own version of revealing the meaning of life. An example would be Aristotle tackling the concept of end purpose. This school of thought can be taken as the philosopher’s own version of finding an answer for what life’s meaning is--given that finding out ‘why are we here’ and what the purpose of an individual is in the world has been among the pressing questions long been asked since humankind has been intrigued with (Gaarder, 1994). Nevertheless, although Socrates, Plato, and Aristotle could be credited as the pillars of the quest in life’s meaning, this paper considers other philosophers like Immanuel Kant to be the ones

Media WRITING Essay Example | Topics and Well Written Essays - 750 words - 1

Media WRITING - Essay Example notice of public and simultaneously to attract governing bodies in taking measures against such occurrences rather than to assimilate views or to interpret a particular course of action. The intended audiences for this news were the general public. After going through the article, it can be stated that the reporter intended to depict the social concerns related with the safety and security of women in the modern day society. The institution behind this particular material can be identified as the online news publishing media. When assessing the types of industries and corporations involved in media writing, various segments such as radio broadcasting, television, film entertainment, print media and advertising among others can be identified which attempt broadcasting updated news from different genres for the general public either within the local or national or in the global periphery. The media writing illustrated through the aforementioned article hereby reveals the propaganda of online news broadcasting. The content of the material presented in the article can also be stated as well-written in a manner which is easier to be interpreted by the general public. No offensive abbreviations or ground-breaking and persuasive forms of writing have been used in this article being presented with adequate justification to gain the consciousness of the public towards such social issues. The article published by Metro Newspaper on 6th February 2013 with the title â€Å"Forgotten cruise ship becomes sand Banksy with aid of street artists† can be categorised as an advertising media writing which depicts the talent of a group of urban street artists giving a new shape to a corroded old ship by making attractive paintings on its rusted body. It can thus be stated that the media writing exhibited in this article is based upon a ‘writing for advertising’ style as the article intended to convey its audiences with a message regarding the group of talented urban based street

This novel is peopled with a landscape of loners and outcasts Essay

This novel is peopled with a landscape of loners and outcasts - Essay Example two great novels, which are â€Å"The Grapes of Wrath† which had rightfully earned him a Pulitzer Prize and also eventually, the Nobel Prize for Literature while the â€Å"Of Mice and Men† is a much shorter work but equally a realistic portrait of the travails of poor, working men who often had to travel to faraway places in search of meaningful work. In the absence of that, these migrant workers were forced to accept any jobs they can find at any wage that can offer a chance of keeping body and soul together. This novella is peopled with a landscape of loners and outcasts; people who are essentially rejects of society, in a sense, but somehow have to struggle on and exerted their best efforts to attain their dreams. â€Å"Of Mice and Men† was set in the context of the Great Depression during which a lot of people were thrown out of work compounded by the problems of itinerant migrants who in desperate situations have to somehow find a job. These workers transfer from one ranch or a farm to another ranch or farm doing menial tasks but despite doing backbreaking farm labor, a few of the characters in the novella found it appropriate to dream of finally owning a farm. A poor worker, like an itinerant farm hand, can still attain his dream if he works hard enough and strives to attain his dream, which may seem at first impossible to most people or even impractical to some people. It is the right of anybody to have a dream and the dream was what binds the two protagonists in the novella. George Milton is a quick-witted worker while Lennie Small is mentally retarded but the two of them surprisingly found good fellowship in each other. George has a good understanding of Lennie and took care of him in a way, out of pity for this mental impairment although ironically, Lennie Small is a big man physically. Most of the characters in the story are loners because they are migrant workers who out of necessity do not have roots in one place but move from one farm to another

TH Empire Ltd Essay Example for Free

TH Empire Ltd Essay To whom it may concern: It is with great pleasure to provide you with a summary about our business and our operations. TH Empire Ltd. is a British trading company that was established in 1995 and was incorporated in 2008 under the rules and laws of the United Kingdom. TH Empire Ltd. is based in the United Kingdom and is operating across the Middle East and other wider regions. The company has been successful in the market with a 10 year experience and is expanding its business in the region The core business of our company is the provision of market research consultancy and presentation, including provision of marketing services with great emphasis on construction, oil field industry and marine works. It has operations in all the Gulf Regions and Middle East markets, with recent expansion in Europe and UK. TH Empire Ltd has an established connection with companies, related to construction of bridges, towers, roads and hotels. It is also involved in oil services such as drilling, maintenance and air pollution control, with great experience in digital mapping, geophysical surveying, and oil exploration with agencies throughout the Middle East. We are also developing relationships with various chambers of commerce and professional unions to liaise us with our corporate clients. We are actively taking part in all major construction, oil field service and marine works events worldwide, sharing our ideas and innovations, refining our expertise to provide leading edge solutions to our clients. Â  We organize our tools and expertise to elaborate customized solutions to meet the needs and targets of our clients. We provide Representation services, Communication strategies and media relations, Promotional materials production, Event and exhibition management, Sales and branches offices opening, Agent network development, Liaison with Middle Eastern and international institutions. If your company is interested to start business with us; kindly send us your company’s activities and catalogues including the services you provide for the negotiation process to begin. Note: We are looking for huge companies (undertaking huge projects) with efficient business procedures and are interested in the aforementioned services Business will be in Libya and Saudi Arabia Waiting for your reply Thank you

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