Academic Writing Essay Example for Free

Academic Writing Essay My interest in International Relations and my decision to continue my education in this field is the outcome of my profound interest in Asian studies. Majoring in History of India, during my final year I became especially interested in the sphere of International Relations and Foreign Policy of India, writing my thesis on Indian Foreign Policy during Nehrus Government and Indian-Chinese relations. Two trips to India 1997 and 1998 allowed me to become better acquainted with this country, refine my knowledge of Hindi and collect unique data for my research. This unforgettable experience convinced me that I had made the right choice of study, leading me to apply for a PhD Degree so as to extend my research in this field. I have so far completed two years of the PhD program at St. Petersburg State University. My dissertation aims at disclosing those problems which still hinder the process of normalization between the two Asian countries, India and China, reflecting on how Indian scholars perceive these issues. See more: Satirical elements in the adventure of Huckleberry Finn essay Thus my research covers both Regional Studies and field of International Relations as a global world system where these two countries play an important role. My presentation of a paper on Indo-Chinese Relations in 1980s at the international conference East Asia St. Petersburg Europe: inter-civilization contacts and perspectives on economic cooperation held in St. Petersburg a year ago gave me the opportunity to meet many outstanding researchers, including my referee, Marcia Ristaino, who encouraged me to continue my studies focusing specifically on International Relations and Regional Studies. For that reason I applied and was accepted to the MA Program in International Relations and European Studies at Central European University in Budapest with a scholarship from Soros foundation. The courses I am taking here will provide me with a sound background in theoretical issues in International Relations. The reason of why I am applying for another Masters Degree is that the CEU program, despite its theoretical strength, has very few courses directly related to my major interest, Regional Studies and conflict resolution and peacekeeping. For this reason I would like to deepen my practical understanding of International Relations and relate it to a more focused concentration on conflict analysis and resolution through the program of the Carleton University. I am aware of the high reputation of your school and the excellent Masters program that you offer at the Norman Paterson School of International Affairs. I believe it will certainly help me with my research and career objectives either through work in diplomatic service or at an international organization where I will be able to apply my knowledge and skills obtained through studies at your University. Courses such as Conflict Analysis, International Mediation and Conflict Resolution and International Organizations in International Affairs will be very helpful for my analyzing of the problems in the South Asian subcontinent and beyond it and will allow me to deeper understand the reasons for numerous interstate and intrastate conflicts that persist in the region. Moreover these courses will be of particular relevance to my career plans which are to find employment with UN or a similar institution in the field of conflict resolution and peacekeeping. The possibility to combine theoretical studies with practical skills in conflict analysis and resolution at the Carleton University will enable me to become a good specialist who will be able to contribute to the common cause of peace in the world. I am eager to become a professional orientalist, as I believe this field of study will always be important in the changing world where Asian countries such as India and China play significant roles in the international arena. MA at the Carleton University would be a precious experience both in terms of my academic and professional career. I hope you will give me the opportunity to realize my ambition. (A CEU Student reproduced here with kind permission) Sample #2 Having majored in literary studies (world literature) as an undergraduate, I would now like to concentrate on English and American literature. I am especially interested in nineteenth-century literature, womens literature, Anglo-Saxon poetry, and folklore and folk literature. My personal literary projects have involved some combination of these subjects. For the oral section of my comprehensive exams, I specialized in nineteenth century novels by and about women. The relation ship between high and folk literature became the subject for my honors essay, which examined Toni Morrisons use of classical, biblical, African, and Afro-American folk tradition in her novel. I plan to work further on this essay, treating Morrisons other novels and perhaps preparing a paper suitable for publication. In my studies toward a doctoral degree, I hope to examine more closely the relationship between high and folk literature. My junior year and private studies of Anglo-Saxon language and literature have caused me to consider the question of where the divisions between folklore, folk literature, and high literature lie. Should I attend your school, I would like to resume my studies of Anglo-Saxon poetry, with special attention to its folk elements. Writing poetry also figures prominently in my academic and professional goals. I have just begun submitting to the smaller journals with some success and am gradually building a working manuscript for a collection. The dominant theme of this collection relies on poems that draw from classical, biblical, and folk traditions, as well as everyday experience, in order to celebrate the process of giving and taking life, whether literal or figurative. My poetry draws from and influences my academic studies. Much of what I read and study finds a place in my creative work as subject. At the same time, I study the art of literature by taking part in the creative process, experimenting with the tools used by other authors in the past. In terms of a career, I see myself teaching literature, writing criticism, and going into editing or publishing poetry. Doctoral studies would be valuable to me in several ways. First, your teaching assistantship program would provide me with the practical teaching experience I am eager to acquire. Further, earning a Ph. D. in English and American literature would advance my other two career goals by adding to my skills, both critical and creative, in working with language. Ultimately, however, I see the Ph. D. as an end in itself, as well as a professional stepping-stone; I enjoy studying literature for its own sake and would like to continue my studies on the level demanded by the Ph. D. program. The following is a shortened sample SOP (with technical details removed. ) Expert comments at the end of the paragraphs point out important features. After one years work experience as a research technician at [redacted], one of the USs leading research institutes, I want to return to academic study and undertake graduate studies in Cell Biology and Molecular Genetics at the University of [redacted]. Stating what you are doing now and what you are applying for is a simple, direct way of starting an SOP. After graduating with a first class degree from [redacted], University of [redacted], I felt I should gain some practical experience working in a research environment to gain first-hand knowledge of what the life of a research scientist entails. I have loved every minute of my work: especially the opportunity to participate in cutting-edge projects and discuss ideas with senior biologists. I soon realized that, although I enjoy handling the complex equipment and processing the results, I am not going to be satisfied with carrying out routine procedures under the direction of others. I want to be part of the team that directs the course of the project. My senior colleagues have encouraged my ambition and feel that I have the potential for graduate studies. Notice how the student tries to analyze the reasons for her choices. My love of biology started in high school. We had a young and enthusiastic teacher, Mrs [redacted], who took us on field trips and visits. She made sure we did as much practical work as was feasible, and demonstrated experiments that we hadnt the equipment or time to do ourselves. She also encouraged us to read. I remember the impact reading Maynard Smiths The Theory of Evolution had on me: I wanted to be able to explain such important ideas as clearly as he did. Quite naturally my first thoughts about a future career tended towards teaching – I wanted to be another Mrs [redacted]. It is good to explain how you became interested in your subject. However, dont go too far back! Notice that a specific example helps create interest. At undergraduate level, my interests became more focused. Although physiology and ecology came easy to me, it was biochemistry and cell biology that really captured my interest. We were fortunate to have good laboratories and excellent professors. I found that cell biology was an interdisciplinary undertaking: today you need a foundation in chemistry, physics and even IT to be at the forefront in this subject. This interdisciplinary aspect of the subject suits my abilities well. I have always performed well in all science subjects and find it challenging to apply the knowledge to practical problems. For this reason I chose to undertake a project in my final year on the behavior of protein molecules in high energy fields at [redacted]. The scientists at [redacted] were impressed with my practical skills and were happy to give me a recommendation that led to my present job. Details of courses and projects help to show focus. (This student went on to describe another important college project. She also gave a full description of her current scientific work. ) Many people have asked me why I did not proceed directly to graduate studies after graduating. The answer is that I wanted to make sure that I had chosen the right subject and the right place before embarking on a course of study that would involve many years of my life. The one-year gap has also given me time to work with the local Natural History Society: we take families on Sunday trips to the nearby National Park to help create awareness about environmental issues. I have also been a member and organizer of the [redacted] Film Society: we watch and discuss films from all over the world. I am looking forward to furthering my interest in film in the [redacted] Film club, at your university, and I also hope to use my passion for teaching in the [redacted] Social Outreach program. Explain the reasons for any unusual features of your career (taking a year out, poor performance, etc.). Include social and extracurricular activities to show balance in your life or because they are relevant to the course. In selecting the University of [redacted] I have been influenced by the way your research program addresses biological questions at the levels of molecule, gene and cell. I am particularly looking forward to such courses as Developmental Biology and Bioinformatics. I am also excited to interact with Professors [redacted] and [redacted] whose work is closest to what I want to pursue for the original research component of the MS degree. I have been corresponding with [redacted], a current student, from whom I have learned about the collaborative environment at [redacted] where I will interact with talented students, teachers and industry professionals. I believe that I will be able to contribute to and learn from the academically challenging environment at the University of [redacted]. Statement of Purpose(SOP) Name: ***** Major: Master of Science in Computer Science(MS in Computer Science) â€Å"Time and tide wait for no man†, this we all know. Having done an inspiring four-year course in Computer Science Engineering. I would like to put to use this knowledge to do my PhD in Computer Science. This would give me the leading edge in technology and the practical low-down and the information I require. For the past few decades man is advancing in to the unknown realms of science and technology. This advancement is to make life easy and to increase human comfort at home and at work and I would like to be an integral part of such betterment. For this, research would be of prime importance with hands on experience in real time Applications accompanied by in-depth knowledge of the subject. Technology,today,means power in the widest sense of tem and merely the power of mind. And it is this power potential that has given it the status it now enjoys. Right from my childhood I had a strong inclination to be a Compute Science Engineer. My interest in the subject has grown with each passing year and it has reached where even PhD will not quench my thirst for knowledge. I have come to terms with the fact that there is an enormous proportion of subject to be assimilated. I want to take up a research oriented course for my career. A natural aptitude for mathematics, a sense of logic, analytical ability, capacity for diligent work and high academic credentials secured me a place in Shri Vishnu Engineering College for Women. The four years curriculum exposed me to the entire gamut of computer courses thus laying a strong foundation for both my Hardware and Software fundamentals. My main areas of interest were Computer Graphics and Multimedia. I enjoyed the course in Networks and Operating Systems. My interest in Graphics and Database led me to prepare eye-catching illustrations to explain the electronic models. I have developed many Software programs in C, Unix , Java. My final year project was Enterprise Resources Planning Procurement Process System, under CMC Limited, A TATA Enterprise. The project was completed in a period of 3 months using Java, J2EE as front End and Oracle as the back End. The field of application of technology is what interests me the most. I want to acquire the learning that will enable me to contribute to the development pf a new software, which can improve efficiency and accuracy of work in varied sphere. Digital Processing is already transforming the world of Communications. My ambition is to work at the forefront of the technology with the ability to find innovative solutions to the changing needs. You might ask as to why a degree from United States of America only. Since 1994 computers have been out performing automobiles in terms of units sold annually in the U. S. A. All in all computers contributed nearly 10% of United States of America GDP. The United Sates of America is way ahead of any other nation in computer technology, manufacture and sales and would thus provide me the best infrastructure and know-how currently available. Besides, it is a country where Science and Technology is a way to achieve social progress and where improving human life’s very important. All these factors coupled together make the United States of America an ideal place to pursue my further studies. The distinguished faculty and excellent facilities at your university make its graduation program ideally suited to my professional goals. Your University provides me a dynamic atmosphere, which will shape me to be a thinker and a learner. The flexibility of the curriculum will give me the broad-based education I need to widen the scope of my knowledge and skills. The diversity of the student’s body will open my mind to new influences, new ideas and new ways of doing things. The world is literally becoming a global village where opportunities for work are transcending physical space. With the Cyberspace connections, Indian knowledge workers are increasingly contributing to the global work force. The international education will give me the training and the caliber to meet the global clients. I look forward to being an active contributing member of the student community at your University. Continuous progress is the key to life. And for progress, knowledge and proper guidance are essentials. I am sure, the quality knowledge and impeccable guidance will mould me to be in the learning mode all my life opening the way for constant growth as a person and a professional STATEMENT OF PURPOSE Respected Graduate Admission Committee: My name is **** . I pursued my undergraduate studies in Computer Science and Engineering at MVSR Engineering College, Osmania University, India. I am planning to pursue my higher education and I really hope to get enrolled into the Masters program, for the term starting Spring 08, at University of North Carolina at Charlotte. In the following paragraphs I have summarized my educational background, motivation for graduate study and my areas of interest. Starting off with my academic’s, I completed my schooling in ****, Warangal, India. My school helped me develop better in the field of science, right from the initial stages, with different techno fests, science expos and I have secured 74% marks in 10’Th standard though I secured 86% in mathematics. Then I said to myself that I am a far better performing student than these marks suggest. Hence to prove my capability to myself I worked hard with sincerity and devotion and obtained valuable marks of 83% in my Board of Intermediate at Sri Chaitanya Junior College, Hyderabad, India. At very young age as a student in high school, computer for me was only a means of entrainment as I found it exciting to play games and generating various mathematical series and patterns thorough BASIC programming. I was dumbfounded to know that games are nothing but programs. Curious to know how to program I developed a serious interest in Computers. This keen interest in mathematics along with a strong liking for computers, and particularly programming, prompted me to choose engineering with Computer Science as my major. This decision gave me ample opportunity to consolidate my creative energies and harness my technical aptitude. Early in my undergraduate study I was introduced to basic programming languages of C, C++ and Java. I understood the key features of each language and realized that one was an improvement of the other. Java being the most powerful and robust language of all fascinated me the most. My first computer science project was â€Å"Core Banking†, which performs the operations of creating an account, assigning an account number and handling transactions involving deposits and withdrawals. This program was initially written in C++ following the concepts of object-oriented programming. Later I modified the same program with some improvements like adding a GUI interface using Java. During the second year of my undergraduate studies, I had an opportunity to visit an IT company of my father’s friend. It was here that I actually saw hundreds of computers connected to each other and performing several different operations. I had many questions on my mind – â€Å"How are computers connected and if connected, how can they be managed? † Curious to know the answers and following the advice of my uncle, I read some books on Windows Networking. I was fascinated by the concepts of Domain, Active Directory, Group Policy and DNS. In the third year of my engineering studies, I was introduced to the subject of Computer Networks. Already having a sound knowledge in practical computer networking, I was at ease with this subject. During this course, I learnt the software side of networking i. e.  how to actually implement and develop different servers. The sessions in the labs were devoted in developing programs like implementation of connection-oriented and connectionless Echo Servers, concurrent multithreaded File Transfer Server and Chat Server. Currently in my fourth year, area of Distributed Systems and especially Peer-to-Peer Systems are of great interest to me. I undertook a project in Galaxie Software Solutions as an intern to design and develop a E-Care system, is an Help Desk System which can overcome some of the disadvantages of the existing software. My work in Galaxie Software Solutions gave me solid practical knowledge of many technologies and concepts such as Java, Oracle, XML, Object-Oriented Design and Programming.. I have also presented a paper entitled â€Å"Cryptography† at Parikaran 2K7 – a National level technical fest. My predominant research interests have evolved into three categories that I believe are interconnected. The three areas of interest are Computer networks, Distributed systems and Information Security. I would be very eager to work in any of these areas or interrelated areas like Networking or Distributed Systems along with Information Security. I worked as a teaching assistant for juniors in C, C++ and Oracle programming. The teaching experience has helped me to communicate articulately and interact effectively with diversity of peers. During the last two years, besides the college academics I spent most of my time attending a number of extra-curricular workshops, seminars and conferences in different fields of computer science. I look forward to a career in research where I cannot only use my academic background to achieve my research goals but also make original contributions to my field of interest. I believe that graduate studies would provide me with the opportunities to attend advanced courses and would be the stepping-stone to my career in research. University of North Carolina at Charlotte suits my research interests because of its advanced academic curriculum and world-class research groups. I believe that it is the best environment for me to achieve my goals while gaining experience and exposure to a diverse student body and faculty. I believe that no other school provides students with the combination of culture, education and research environment, required for an overall personality development, as offered by your institution. Summarizing all written above, I believe that my serious intention for study, my projects, my certifications and strong academic background in various areas of Computer Science will be beneficial for my graduate studies and research. Attending your prestigious institution would give me an opportunity to receive high-level education under the guidance of prominent professors and excellent teachers. I would regard my admission to University of North Carolina at Charlotte not only as a great honor but also as a great responsibility and challenge to prove myself. Thank you for your time and consideration. High Regards, {NAME}. While reasoning my intentions to pursue MS in Computer Science at Oklahoma State University I would like to throw some light on my career till now, I always fancied myself with Computers right from my childhood and thought of becoming a Software Engineer got implanted in my mind at an early age. A career in Engineering seemed the most challenging and logical extension of my abilities. I was given training in the basics of the operation and the applications of the computers during my school days. From that day onwards until the 10th standard I was constantly being taught different concepts of computer in different levels. The various concepts that I am thorough with, in school, are Word, QBasic and C Fundamentals. Science has been my favorable subject right from my school days and has always been one among the toppers of my class. I have even represented my school in many competitions. I have been the member of the quiz team of our school that has won many competitions. After my higher secondary I was determined to secure for myself a position in the Information Technology field, which deals with the areas of Computers, Communications and Networks. To accomplish this I had to qualify in the EAMCET Entrance Exam for Andhra Pradesh, India. I secured a good rank in the examination and secured a seat in Computer Science Engineering in V. R. Siddhartha Engineering College, Affiliated to Nagarjuna University. At VRSEC I had the good fortune of having a well-compiled syllabus, which placed equal emphasis on theoretical fundamentals as well as practical applications. Subjects such as Computer organization, Digital Logic Design, Microprocessor Applications laid a solid foundation in the theoretical aspects of the subjects. Practical application aspects were introduced to me through subjects such as Object Oriented Programming concepts, Data Structures, Relational Database Management Systems, Internet technologies. The areas, which are of special interest to me centered on Computer communications, Software Engineering, E-Commerce applications. I am interested in learning more about encryption and artificial intelligence. My interest in Networks began when I read about the various application fields it could be used, in the Information Technology magazine. I am a regular reader of magazines such as IEEE-spectrum, potentials, chip, computer networks, and computer today, which enabled me to be in touch with the latest developments in information technology. At VRSEC I had the opportunity to interact with some of the best professors in our region. I had the opportunity to do alive project in BPL Mobile Ltd. Coimbattore and project title is Mobile High Usage Roaming Alert and the project is being implemented by the company people right now and the project is done in VB and Oracle. The next step in my career towards achieving my career goal is to pursue my Masters Program in Computer Science. I have done considerable research in this area to pursue my Higher education in a reputed University and with a good course curriculum. I found about the education in USA and its recognition. I have therefore applied to the OSU in USA. Also with some advice from my college senior who are in various colleges in USA I have opted for this College. The course MS in Computer Science. The course has been designed to give me insight into the world of academic and industrial computing research. By focusing on several currently active areas it affords me the opportunity to gain an in-depth understanding of the topics of the course and in doing so, to develop the skills necessary to carry out innovative work with in the discipline of computing. I strongly believe that a software engineer should be instinctive, innovative, quick to adapt and adopt new technologies, which is only possible with solid foundation and profundity in his subjects. This entails and insightful and thorough understanding of the intricacies of the subject. That’s the reason why I am inclined towards MS in Computer Science. I am sure that with my interaction with the faculty and peers at your college will provide an ambience conducive for my transition from an undergraduate to a graduate. It is my strong belief that graduation from this institution will take me close to achieving my ultimate goal of becoming an efficient software engineer. While my sights are firmly set on graduation, it is my strong desire to pursue research program following my graduation. Computing Science plays an ever-increasing role in today’s society. Technological innovation has been one of the driving forces behind India’s rapid growth. It is therefore essential that every opportunity be afforded to talented Indian graduates to extend their education and skills in order to play an active role in managing the opportunities presented in the future. India is fast gaining a reputation for its computer industry and at the moment it is regarded as the centre for Software and as a result many of the top notch Multinational Corporations are establishing their contact centers in India. As a result an International Degree is focused to meet employment  opportunities with in the computing industry in India. Possible career opportunities for me in India include research and development roles in the development of new technologies such as software engineering, technical applications developers and consultants, network managers and other leading roles in computing industry. A fascination for Science Technology and keen interest in the ever-growing world of technology motivated me to take up engineering. I choose to major in Electrical Electronic Engineering with an intense urge to delve into the challenging field. During my under graduation program I learned the various fundamentals of Electrical Electronics Engineering which together with practical course work reinforce interest. Right from my school, I had a penchant towards Mathematics, Science and research in general. This basic interest led me to take up Mathematics, Physics and Chemistry as my major subjects in high school. As a part of my Physics project, I had constructed logic gates and simple latches using basic circuit elements. I was so astounded by the Power of Electrical Electronics. This interest made me to take Electrical Electronic Engineering. I would like to present my past performance as my credentials for my success in my future endeavors. My innate strength has been my quantitative and analytical abilities which instilled me a special interest for mathematical and physics. I had opted the same in my 10+2 with good marks. I was placed in the top 15% of one lakh who took engineering entrance examination. This performance helped me in getting admission into Sri Saradhi Institute of Engineering, Nuzvid, India. During the course of my undergraduate study I was exposed to various courses with applications like Electromagnetic field, Control systems, Power electronic, Electrical measurements, Linear Integrated Circuits, Electronics, Pulse and digital circuits, Computer methods in power system control, Digital Signal Processing, Power systems(1to 3), Electro mechanics(1 to 3) Micro processors Micro Controllers, High voltage engineering, Modeling of power system components, Utilization of electrical energy enhanced my subject. I secured good results in my engineering. I was well versed in programming languages like C, C++ Java. During my final year I decided to do project in Machine cutting using micro controller. From my kinder garden my medium of instruction is English. I had written GRE and got 1060 score, which adds to my English language proficiency. Excellence in any sphere of life can be achieved trough determination, hard work, preference and dedication. Yet lack of in depth knowledge of the subject leaves the conceptual skills incomplete. It in this concept that I would like to pursue a course that control system in your esteemed university. I am very much interested to do MS Computer Science in your esteemed college. I realize the need for me to study at the center stage of activity in these fields at your college in USA. My earnest desire to continue my future studies at your graduate school stems from that it is one of the top colleges in Ireland having fine record of academic excellence and is backed up by expert faculty and research facilities. The other reason why I want to study at your esteemed college is that it provides the kind of expose needed to broaden my thinking and indo any insular prejudices that might be still prevalent in me. Your college is a confluence of people from every nationality, religion and race. Overall development of the personality can be done and it helps me to broaden my concept from the narrower confines of nationalism to internationalism. I am clear as to my carrier aspiration. Educational I believe is a life long process. I there fore wish to pursue a doctoral degree after my MS and therefore combine research and teaching as carrier. I am fully aware that yours curriculum requires that I summon all my resources and I aver that I have the necessary commitment, intelligence and stamina to look forward to do it all. I am convinced that my study at your department would be meaningful and rewarding experience. I look forward to have a long and profitable association with your esteemed college. I especially thank you for giving me the opportunity given me to express about myself. Name : ******** Program Sought: MASTERS IN ENVIRONMENTAL ENGINEERING Semester Sought: Fall 2012. STATEMENT OF PURPOSE There is a very famous adage, â€Å"If you think education is expensive, and then try ignorance†. I could not agree more. I believe research is necessary to acquire data and formulate theories, but it is just as important to know how to apply those theories and use that data in the real world. To be competent and competitive I will require a master’s degree. A master’s degree will give me the up-to-date tools and knowledge that is the need of the hour. It is after a good deal of self-evaluation that I have decided to pursue graduate studies.

bob dylan Essay -- essays research papers

The Hurricane   Ã‚  Ã‚  Ã‚  Ã‚  Bob Dylan’s song, The Hurricane, brings to surface several of the themes covered in class this semester. The song explores general themes like community and responsibility, while also focusing on many of the sub-themes, such as justice and injustice, appearance and reality, and loyalty and abandonment. Throughout the song, the main characters constantly battle with the above themes in attempt to frame an innocent man. While the song brings up many of these themes, Dylan’s characters show little consistency with the texts covered, as the texts tend to try to find reconciliation in the characters, while Dylan’s characters feel no remorse in their actions.   Ã‚  Ã‚  Ã‚  Ã‚  The song starts as â€Å"Pistol shots ring out in the barroom night,† and the manager arrives to see the bartender in a pool of blood. â€Å"Here comes the story of the hurricane,/ The man the authorities came to blame/ for somethin’ that he never done,† Dylan continues. The hurricane is an up-and-coming middleweight boxer by the name of Rubin Carter. The song details his wrongful imprisonment, and exposes the injustice and irresponsibility of a community in Paterson, New Jersey.   Ã‚  Ã‚  Ã‚  Ã‚  The bar’s manager, Patty Valentine, acts as an enabler for this irresponsibility, allowing it to continue although she knows it is most likely not the truth. â€Å"Three bodies lyin’ there does Patty see/ And another man named Bello movin’ around mysterious...

International Finance: Study Notes

1) Market seeker design strategy focuses on current market, and current consumer’s needs for quick return on investment. For example US automobile firms manufacturing in Europe for local consumption are an example of market-seeking motivation. 2) Raw Material seekers extract unfinished goods used in the manufacture of a product. For example, a steelmaker uses iron ore and other metals in producing steel. A publishing company uses paper and ink to create books, newspapers, and magazines. Raw materials are carried on a company's balance sheet as inventory in the current assets section. 3) Political safety seekers acquire or establish new operations in countries that are considered unlikely to expropriate or interfere with private enterprise. For example, Hong Kong firms unvested heavily in the United States, United Kingdom, Canada, and Australia in anticipation of the consequences of China’s 1997 takeover of the British colony. ) Production Efficiency seekers produce in countries where one or more of the factors of production are underpriced relative to their productivity. Labour-intensive production of electronic components in Taiwan, Malaysia, and Mexico is an example of this motivation. 5) Knowledge seekers operate in foreign countries to gain access to technology or managerial expertise. An example, German, Dutch, and Japanese firms have purchased US located electronics firms for their technology. Source: Investopedia Question 2: Political risk is a type of risk faced by investors, corporations, and governments. It is a risk that can be understood and managed with reasoned foresight and investment. Broadly, political risk refers to the complications businesses and governments may face as a result of what are commonly referred to as political decisions—or â€Å"any political change that alters the expected outcome and value of a given economic action by changing the probability of achieving business objectives. †. Political risk faced by firms can be defined as â€Å"the risk of a strategic, financial, or personnel loss for a firm because of such nonmarket factors as macroeconomic and social policies (fiscal, monetary, trade, investment, industrial, income, labour, and developmental), or events related to political instability (terrorism, riots, coups, civil war, and insurrection). †Portfolio investors may face similar financial losses. Moreover, governments may face complications in their ability to execute diplomatic, military or other initiatives as a result of political risk. A low level of political risk in a given country does not necessarily correspond to a high degree of political freedom. Indeed, some of the more stable states are also the most authoritarian. Long-term assessments of political risk must account for the danger that a politically oppressive environment is only stable as long as top-down control is maintained and citizens prevented from a free exchange of ideas and goods with the outside world. Understanding risk as part probability and part impact provides insight into political risk. For a business, the implication for political risk is that there is a measure of likelihood that political events may complicate its pursuit of earnings through direct impacts (such as taxes or fees) or indirect impacts (such as opportunity cost forgone). As a result, political risk is similar to an expected value such that the likelihood of a political event occurring may reduce the desirability of that investment by reducing its anticipated returns. There are both macro- and micro-level political risks. Macro-level political risks have similar impacts across all foreign actors in a given location. While these are included in country risk analysis, it would be incorrect to equate macro-level political risk analysis with country risk as country risk only looks at national-level risks and also includes financial and economic risks. Micro-level risks focus on sector, firm, or project specific risk. Political risks are classified as follows: 1) Blocked Fund – Term for â€Å"reserving† funds by one bank for the benefit of another bank. Blocking of funds is an often used banking procedure to ensure that the same funds are not used twice. Often more beneficial to an investor than a bank guarantee. ) Ownership – Is the state or fact of exclusive rights and control over property, which may be an object, land/real estate or intellectual property. Ownership involves multiple rights, collectively referred to as title, which may be separated and held by different parties 3) Religion Heritage – Is the faith in which a person was predominantly raised or the faith a person's parents or previous generations have traditionally held. 4)Terrorism – Is the systematic use of terror especially as a means of coercion. No universally agreed, legally binding, criminal law definition of terrorism currently exists. Common definitions of terrorism refer only to those violent acts which are intended to create fear (terror), are perpetrated for a religious, political or ideological goal, deliberately target or disregard the safety of non-combatants (civilians), and are committed by non-government agencies. Some definitions also include acts of unlawful violence and war. The use of similar tactics by criminal organizations for protection rackets or to enforce a code of silence is usually not labeled terrorism though these same actions may be labeled terrorism when done by a politically motivated group. The word â€Å"terrorism† is politically and emotionally charged, and this greatly compounds the difficulty of providing a precise definition. Studies have found over 100 definitions of â€Å"terrorism†. The concept of terrorism may itself be controversial as it is often used by state authorities to delegitimize political or other opponents, and potentially legitimize the state's own use of armed force against opponents (such use of force may itself be described as â€Å"terror† by opponents of the state). Terrorism has been practiced by a broad array of political organizations for furthering their objectives. It has been practiced by both right-wing and left-wing political parties, nationalistic groups, religious groups, revolutionaries, and ruling governments. An abiding characteristic is the indiscriminate use of violence against noncombatants for the purpose of gaining publicity for a group, cause, or individual. 5)Protectionism is the economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to discourage imports and prevent foreign take-over of domestic markets and companies. This policy contrasts with free trade, where government barriers to trade and movement of capital are kept to a minimum. In recent years, it has become closely aligned with anti-globalization. The term is mostly used in the context of economics, where protectionism refers to policies or doctrines which protect businesses and workers within a country by restricting or regulating trade with foreign nations. Source: Wikipedia Question 3: Hedging means reducing or controlling risk. This is done by taking a position in the futures market that is opposite to the one in the physical market with the objective of reducing or limiting risks associated with price changes. Hedging is a two-step process. A gain or loss in the cash position due to changes in price levels will be countered by changes in the value of a futures position. For instance, a wheat farmer can sell wheat futures to protect the value of his crop prior to harvest. If there is a fall in price, the loss in the cash market position will be countered by a gain in futures position. Hedging is a mechanism to reduce the risk of adverse price movements of an asset. It’s an investment undertaken to reduce the risk of adverse movements of the underlying assets. We all agree with the fact that in investment risks and returns are the two sides of a coin. The underlying asset can be a security, currency, debt instruments or a commodity like crude oil. A Perfect Hedge is an offsetting investment which completely eliminates the risk of the price movements. However, this is practically not possible, as all investments do carry a risk. Reason for hedging Participating in hedging has reasons that are connected with price risk. Typically, traders take part in hedging so they can more effectively plan on set pricing (often employing the hedge ratio). Considering of course, gold or silver futures for instance as a hedge against inflation and falling currencies. Farmers, growers and producers alike near the source hedge to get a lock on pricing at some appointed time. Often they buy futures basically in order to protect against price drops. Producers, manufacturers and large consumers are commonly in the practice of hedging but rather to get a better handle on their cash flow or finished product/service costs. Surely in commodities that are known to be volatile in nature, where prices need a stabilization factor. Example : Where precious metals are used as raw materials. Trucking companies, the airlines and transportation companies all hedge to lock in lower prices. Electricity generation, in its used of natural gas also provides ample reason for hedging. Larger food companies needing the ingredients of grains and wheat flour for breads, cereals and baked goods (not to mention coffee and cocoa) and hedge for price protection. When successful it becomes an integral part of delivering their product to consumers. Some companies even hedge so that consumers may not be so hard pressed in the event of price climbs, perhaps seen as unreasonable by consumers. Reason against hedging The management of financial risk is difficult and conceptually demanding. Probably the most difficult issue is the actual recognition of where and how much financial risk is being incurred. Example: An Australian metal producer who borrows in USA as a partial hedge because their product is priced in USD in world markets. The problem with this â€Å"hedge† is that it actually would increase risk. The AUD is a commodity currency and when metal prices fall the AUD will generally be weaker. This means that our metal exporter finds that their USD loan is costing those more in AUD terms at the same time as revenue is collapsing. The reason for the problem is that the company failed to recognize the correlation between metal prices and the AUD exchange rate. Source: wikipedia Question 4: A balance of payments (BOP) sheet is an accounting record of all monetary transactions between a country and the rest of the world. These transactions include payments for the country's exports and imports of goods, services, and financial capital, as well as financial transfers. The BOP summarizes international transactions for a specific period, usually a year, and is prepared in a single currency, typically the domestic currency for the country concerned. Sources of funds for a nation, such as exports or the receipts of loans and investments, are recorded as positive or surplus tems. Uses of funds, such as for imports or to invest in foreign countries, are recorded as a negative or deficit item. When all components of the BOP sheet are included it must balance – that is, it must sum to zero – there can be no overall surplus or deficit. For example, if a country is importing more than it exports, its trade balance will be in deficit, but the shortfall will have to be counter balanced in other ways – such as by funds earned from its foreign investments, by running down reserves or by receiving loans from other countries. While the overall BOP sheet will always balance when all types of payments are included, imbalances are possible on individual elements of the BOP, such as the current account. This can result in surplus countries accumulating hoards of wealth, while deficit nations become increasingly indebted. Historically there have been different approaches to the question of how to correct imbalances and debate on whether they are something governments should be concerned about. Since 1974, the two principal divisions on the BOP have been the current account and the capital account. The current account shows the net amount a country is earning if it is in surplus, or spending if it is in deficit. It is the sum of the balance of trade (net earnings on exports – payments for imports) , factor income (earnings on foreign investments – payments made to foreign investors) and cash transfers. Its called the current account as it covers transactions in the â€Å"here and now† – those that don't give rise to future claims. The capital account records the net change in ownership of foreign assets. It includes the reserve account (the international operations of a nation's central bank), along with loans and investments between the country and the rest of world (but not the future regular repayments / dividends that the loans and investments yield, those are earnings and will be recorded in the current account). Expressed with the standard meaning for the capital account, the BOP identity is: [pic] The balancing item is simply an amount that accounts for any statistical errors and assures that the current and capital accounts sum to zero. At high level, by the principles of double entry accounting, an entry in the current account gives rise to an entry in the capital account, and in aggregate the two accounts should balance. A balance isn't always reflected in reported figures, which might, for example, report a surplus for both accounts, but when this happens it always means something has been missed—most commonly, the operations of the country's central bank. An actual balance sheet will typically have numerous sub headings under the principal divisions. For example, entries under Current account might include: †¢ Trade – buying and selling of goods and services Exports – a credit entry o Imports – a debit entry ? Trade balance – the sum of Exports and Imports †¢ Factor income – repayments and dividends from loans and investments o Factor earnings – a credit entry o Factor payments – a debit entry ? Factor income balance – the sum of earnings a nd payments. Especially in older balance sheets, a common division was between visible and invisible entries. Visible trade recorded imports and exports of physical goods (entries for trade in physical goods excluding services is now often called the merchandise balance). Invisible trade would record international buying and selling of services, and sometimes would be grouped with transfer and factor income as invisible earnings. In the case of any particular country, a balance reflecting the ratio of monetary receipts from foreign countries to total payments to foreign countries, as computed for a year, quarter, or other period of time. A favorable balance of payments results when receipts exceed payments, whereas an unfavorable balance of payments, or deficit, results when the reverse is true. The balance of payments reflects the diverse economic relations that exist between countries and lead to various international payments; these relations include foreign trade and the export of capital. The balance of payments also reflects international relations in the political, scientific, technological, and cultural spheres; this is seen, for example, in expenditures that arise from the maintenance of representations in foreign countries, from trips by official delegations and tourists, from the acquisition of patents and licenses, and from private transfers. In developed capitalist countries, the chief principals in international economic relations are private companies, including those engaged in commerce, industry, banking, insurance, and transport. The balance of payments forms as the spontaneous result of many isolated transactions an operation, for which no accurate account can be maintained. The balance of payments tables compiled in bourgeois states therefore represent only an approximate evaluation of receipts and payments. The item in the balance of payments tables that is called errors and omissions provides particular evidence of this fact. The balance of payments encompasses only the payments actually made during a given period. By contrast, the balance of international indebtedness, or balance of claims and liabilities, is the ratio of the foreign claims of a given country to the foreign liabilities of that country. The balance of payments in capitalist and developing nations includes scores of diverse items, which usually are grouped in the following categories, as recommended by the International Monetary Fund: foreign trade (exports and imports of commodities), services (including transport, tourism, insurance, government expenditures, banking services, and income from investments), unilateral transfers, the movement of long-term capital, the movement of short-term capital, change in the gold and currency reserves, and errors and omissions. The first three categories constitute the current account balance of payments, the next two are the balance of capital movements, and the last two are the balancing items. Analysis of the balance of payments is very important in describing a country’s place in the system of international economic relations, especially with respect to world trade. When receipts from the export of commodities consistently exceed import payments, this generally points to a country’s strength in world markets; this was the case with Japan and the Federal Republic of Germany in the late 1960’s and early 1970’s. On the other hand, import payments that exceed export earnings are an indication of economic difficulties related to the deficit of the balance of payments; this was the position of the USA in these same years. An important item in the current account balance of payments concerns the receipts and payments for foreign investments. This item reflects profit received from abroad and paid abroad, in the form of dividends, interest, and so forth. The profit represents a source of enormous income for capital-exporting imperialist states with large capital investments abroad, either in the form of direct investments or in the form of loans and credits. In 1971, for example, the income of Great Britain from foreign investments was ? 667 million, more than double the positive trade balance. The profit from foreign capital investments repatriated to the United States amounted to $10. 7 billion in 1971 and was the second most important item of receipts in the nation’s balance of payments, after the income from export commodities. This attests to the role of the United States as the center of financial exploitation in the capitalist world. The overwhelming majority of developing countries are importers of capital, and payments on foreign investments are one of the chief reasons for the overall balances of payments deficits. The payments on foreign investments absorb an ever greater portion of the export earnings of the developing countries. Foreign military expenditures are also included in the current account balance of payments. These expenditures are due to imperialist states’ policy of aggression and the maintenance of numerous military bases abroad. This is one of the most important reasons for the deficit in the balance of payments and the ensuing monetary crises. The enormous rise in state military and political expenditures abroad underlies the chronic deficit in the US balance of payments. Expenditures from the early 1960’s through the early 1970’s totaled more than $100 billion, some 40 percent more than the surplus for all other items in the USA’s balance of payments. Capital movement as reflected in the balance of payments is primarily in the form of the movement of long-term capital. Long-term capital movement includes direct investments, which provide for full ownership of enterprises or control of their operations; portfolio investments, made in the form of investments in overseas securities; and loans, credits, and subsidies. The export of capital—the outflow of capital from a given country—is reflected as an expenditure in the balance of payments; the import of capital, on the other hand, represents an influx of funds and is included as income. The export of capital, for example, to the developing countries, causes a flow of profit from the countries where the foreign capital has been placed; this ultimately has a negative effect on the balance of payments of the countries receiving foreign capital. At the same time, increased export of capital sometimes directly worsens the balance of payments of the imperialist states. The export of capital and military expenditures are precisely the reasons for the balance of payments deficit in the USA. The movement of short-term capital is related to the way money on deposit in foreign banks is constantly transferred between countries. These transfers are to a significant degree related to speculation with respect to change in exchange rates or interest on deposits. The indicator of a surplus or deficit of the balance of payments is important in describing the economic situation of a country. In capitalist nations, several methods are used for determining this balance; in the USA, for example, three methods are employed. The balancing indicator is most often the balance of the current transactions and the balance of the change in the gold and currency reserves. Various methods are used to regulate the balance of payments. One basic method involves the export of gold when there is a deficit balance and the import of gold when there is a surplus balance. The chronic balance of payments deficit in the USA in the 1960’s and early 1970’s led to a significant outflow of gold and a reduction in US gold reserves. The balance of payments deficit may also be covered by increasing short-term or long-term debts to creditor nations, which accumulate the corresponding obligations of their debtors. Because the gold reserves of the capitalist and developing countries are limited, foreign credits and loans are becoming the basic means of covering the balance of payments deficit; this is especially true in the case of developing countries. To improve the balance of payments situation, capitalist states frequently resort to a currency devaluation, which helps increase export receipts from tourism, the import of foreign capital, and so forth. The balance of payments situation of a capitalist country is a basic factor in determining the state of that country’s currency. For example, the crisis of the US dollar basically resulted from a sharp deterioration in the US balance of payments, which had a deficit of almost $10 billion in 1972. The US government was forced to devalue the dollar in 1971 and 1973 because of the drop in gold and currency reserves and the increase in foreign debts, both of which were caused by the chronic balance of payments deficit. In socialist countries, foreign economic relations are based on the state monopoly of foreign trade and the foreign-exchange monopoly. The balance of payments is planned as a component part of a general plan embracing the national economy, foreign trade, and currency. Payments of the member countries of the Council for Mutual Economic Assistance (COMECON) are mutually balanced through long-term planning of trade and payments between the countries; payments in transfer rubles are used. Because of the foreign-exchange monopoly, the balance of payments does not influence the situation of the monetary units of the socialist countries. In relations with the capitalist states, the Soviet Union and other socialist countries avoid balance of payments deficits through the planned use of foreign-exchange and gold resources and anticipated foreign-exchange receipts. Source: Finance Asia Question 5: Annualized  Ã‚  Ã‚   =  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Forward Price – Spot Price  Ã‚  x  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  12  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  x  100% Forward Premium  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚   Spot Price  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  # of months   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   forward Direct Quotation represents the value of a foreign currency in dollars (number of dollars per currency). In this case, the Japanese Yen is taken as the local currency and USD is taken as the foreign currency. Direct = ((120 -140) / 140)*(12 / 6)*100 = – 28. 5714% forward discount Indirect = 1 / Direct = 1/-28. 5714% = 3. 5% forward discount Question 6: A  type of diagram  where the curve falls at the outset and eventually rises to a point higher than the starting point, suggesting the letter J. While a J-curve can apply to data  in a variety of fields, such as medicine and political science, the J-curve effect is most  notable in both economics and private equity funds; after a certain policy or investment is made, an initial loss is followed by a significant gain. An example  of the  J-curve effect  is seen in economics  when a country's trade balance initially  worsens following a devaluation or depreciation of its currency. The higher exchange rate will at first correspond to more costly imports and less valuable exports, leading to a bigger initial deficit or a maller surplus. Due to the competitive, relatively low-priced exports, however, a country's exports will start to increase. Local consumers will also purchase less of the more expensive imports and focus on local goods. The trade balance eventually improves to better levels  compared to before devaluation. In private equity funds, the J-curve effect occurs when  funds experience negative returns for the first several years. This is a common experience, as the early years of the fund include capital drawdown and an investment portfolio that has yet to mature. If the fund is well managed, it will eventually recover from its initial losses and the returns will form a J-curve: losses in the beginning dip down below the initial value, and later returns show profits above the initial level. The theory of the J-curve is an explanation for the J-like pattern of change in a country's trade balance in response to a sudden or substantial depreciation (or devaluation) of the currency. Consider the adjoining diagram depicting two variables measured, hypothetically, over some period of time; the dollar/foreign exchange rate, E$/*, and the US current account balance, CA = EX – IM. The exchange rate is meant to represent the average value of the dollar against all other trading country currencies and would correspond to a dollar value index which is often constructed and reported. Since the units of these two data series would be in very different scales, we imagine the exchange rate is measured along the left axis, while the CA balance is measured in different units on the right-hand axis. With appropriately chosen scales we can line up the two series next to each other to see whether changes in the exchange rate seem to correlate with positive or negative changes in the CA balance. Source: Investopedia Question 7: Tax is to impose a financial charge or other levy upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities. Taxes consist of direct tax or indirect tax, and may be paid in money or as its labor equivalent (often but not always unpaid labour). A tax may be defined as a â€Å"pecuniary burden laid upon individuals or property owners to support the government, a payment exacted y legislative authority. † A tax â€Å"is not a voluntary payment or donation, but an enforced contribution, exacted pursuant to legislative authority† and is â€Å"any contribution imposed by government whether under the name of toll, tribute, tallage, gabel, impost, duty, custom, excise, subsidy, aid, supply, or other name. † The legal definition and the economic definition of taxes differ in that economists do not cons ider many transfers to governments to be taxes. For example, some transfers to the public sector are comparable to prices. Examples include tuition at public universities and fees for utilities provided by local governments. Governments also obtain resources by creating money (e. g. , printing bills and minting coins), through voluntary gifts (e. g. , contributions to public universities and museums), by imposing penalties (e. g. , traffic fines), by borrowing, and by confiscating wealth. From the view of economists, a tax is a non-penal, yet compulsory transfer of resources from the private to the public sector levied on a basis of predetermined criteria and without reference to specific benefit received. In modern taxation systems, taxes are levied in money; but, in-kind and corvee taxation is characteristic of traditional or pre-capitalist states and their functional equivalents. The method of taxation and the government expenditure of taxes raised is often highly debated in politics and economics. Tax collection is performed by a government agency such as Canada Revenue Agency, the Internal Revenue Service (IRS) in the United States, or Her Majesty's Revenue and Customs (HMRC) in the UK. When taxes are not fully paid, civil penalties (such as fines or forfeiture) or criminal penalties (such as incarceration) may be imposed on the non-paying entity or individual. Taxes are sometimes referred to as â€Å"direct taxes† or â€Å"indirect taxes†. The meaning of these terms can vary in different contexts, which can sometimes lead to confusion. An economic definition, by Atkinson, states that â€Å"†¦ direct taxes may be adjusted to the individual characteristics of the taxpayer, whereas indirect taxes are levied on transactions irrespective of the circumstances of buyer or seller. According to this definition, for example, income tax is â€Å"direct†, and sales tax is â€Å"indirect†. In law, the terms may have different meanings. In U. S. constitutional law, for instance, direct taxes refer to poll taxes and property taxes, which are based on simple existence or ownership. Indirect taxes are imposed on events, rights, privileges, and acti vities. Thus, a tax on the sale of property would be considered an indirect tax, whereas the tax on simply owning the property itself would be a direct tax. The distinction between direct and indirect taxation can be subtle but can be important under the law. The Advantages of Direct and Indirect Taxes Governments collect taxes by direct and indirect means. An example of a direct tax is payroll tax, where tax is deducted by an employer from an employee's income, and paid directly to a collection agency, such as the Internal Revenue Service in the United States. An indirect tax is a tax which is not paid directly to the collection agency by the person paying the tax, but goes an intermediary, who then passes the tax to the collection agency. Sales taxes are examples of indirect taxes. Progressive Advantage of Direct Taxes One advantage of direct taxation is that it is easy to apply in a progressive manner. Progressive taxes are a fair way of generating revenue, because multiple rates of taxation can be applied, based on the ability of the tax payer to pay the tax, especially if tax rates increase marginally. For example, a government may apply income tax to earnings at a rate of 10 percent, for all income earned up to $20,000. Then it applies a rate of 15 percent to income over $20,000. A person earning more than $20,000 will pay tax at a rate of 10 percent on the first $20,000 earned, and only pays 15 percent on earnings over that amount. Progressive, marginal, direct taxation is therefore fair because higher earners bear a greater part of the tax burden, based on their ability to pay higher rates of tax. Transparency of Direct Taxation Direct taxes, which go directly by the person bearing the burden of the tax, are transparent taxes. For example, when an employer deducts taxes from the wages of an employee, the employee can see the amount of tax deducted, as it is included on his or her wage statement, or pay-slip. Self-employed tax payers can also see the amount of tax they need to pay to the government, hen they complete their tax returns. In a democracy, tax transparency means that governments have to justify taxes they impose to their voters, and tax-paying voters always aware of the tax burdens imposed on them by politicians. Environmental Benefits of Indirect Taxation Governments use Indirect taxes, such as taxes added to the price of goods and services, to modify the behaviour of individuals in order to help a chieve environmental goals. For example, the true price of gasoline, at point of delivery to the public is low. The price does not encourage people to reduce their use of gasoline by using public transport, or buying more fuel-efficient vehicles. If a government wishes to reduce the use of gasoline as part of an environmental protection goal, it can artificially inflate the price of gasoline to the consumer, by imposing a sales tax to increase the price. When a government imposes a high enough tax on gasoline, it results in a reduction of demand for gasoline, and thus aids the government in implementing its environmental policy. Source: Wikinvest Question 8: The Bretton Woods system was established in 1944 as the major capitalist powers initiated a program of national regulation aimed at containing the contradictions of the world economy and preventing the development of socialist revolution. Its demise in 1971 inaugurated a new stage, characterised by the development of globalised production and the domination of an international financial market. When the US pulled the rug from under the previous system it did so in order to maintain its position of global hegemony in the new economic order which was beginning to emerge. It managed to do so but at great cost. The free market program it has so strenuously promoted over the past 30 years has intensified all the contradictions of the capitalist mode of production. At the same time, starting with the unilateral decision of August 15, 1971, the basis for collaboration between the major capitalist powers has been narrowing. The combined impact of these two processes has created the conditions for major economic, social and political upheavals in the world capitalist economy in the period immediately ahead. Source: Wordiq Question 9: There are many factors that influence the exchange rate of US dollar. Generally speaking, there are mainly four reasons: first, the health condition and the rate of return for investment of the US economy, secondly, the balance of international payment in the US, thirdly, the level of interest rates in the US compared with those in other countries, and fourthly, the rate of inflation. The following might be the reason why it’s expected to continue tight throught to the basement floor: †¢ Massive budget and trade deficits. †¢ Ultra-low interest rates. (Zero on the short end. ) †¢ $59 trillion in unfunded liabilities for Social Security, Medicare and Medicaid. Bernanke conjuring extra trillions out of thin air to buy Treasuries and mortgage-back securities and patch various holes in the U. S. economy. There is no reason to believe any of these problems will vanish in the months ahead. Yet the dollar will soar in 2010. Here’s why†¦ Two Reasons for a Dollar Rebound There are two main forces that could drive the dollar high er: †¢ All the problems mentioned above are already well recognized and priced into the greenback. †¢ Dollar psychology is overwhelmingly bearish. Just as 10 years ago, investors couldn’t imagine Internet stocks doing anything but soaring higher. Five years ago, they couldn’t imagine real estate doing anything but barrelling down the same one-way street. Record lows for the dollar are coinciding with enormous confidence that the dollar has nowhere to go but down. When extreme valuations are accompanied by unbridled optimism or abject pessimism, it virtually always marks a turning point – and an opportunity. This is no exception. Commentators seem to forget that all currency values are contingent. You can’t just look at fundamentals in the United States. You have to look at them abroad, too. And there isn’t uch out there right now that’s terribly positive†¦ America’s Fellow Heavyweights Have Problems, Too Take Europe, for example†¦ †¢ Eurozone: In the third quarter, the 16-nation Eurozone grew at a 1. 5% annual rate. The U. S economy, by comparison, grew at 3. 5%. European consumers and most business sectors are still feeling the pain from the deepest recession since the 1930s. The continent is likely to be the weakest region for global expansion next year, according to Julian Callow, Chief European Economist at Barclays Capital in London. †¢ United Kingdom: This is no bastion of strength, either. Europe’s biggest economy outside the Eurozone is still in recession, due to overly indebted British households and tight credit. British GDP contracted at an annualized 1. 6% in the third quarter. †¢ Japan: The world’s second-largest economy has its own problems, too. At 172% of GDP, Japan’s government debt is by far the largest among rich nations. What’s more, it’s expected to reach 200% next year – and hit 300% within a decade. Rising social security costs and the weak economy are the primary culprits. The new government there is trying to prevent a double-dip recession by spending even more. But with government debt soaring to records, talk of new stimulus measures is already pushing up long-term rates and threatening to curtail the impact of fresh spending. Source: Economics help Question 10: Standard deviation is a widely used measurement of variability or diversity used in statistics and probability theory. It shows how much variation or â€Å"dispersion† there is from the â€Å"average† (mean, or expected/budgeted value). A low standard deviation indicates that the data points tend to be very close to the mean, whereas high standard deviation indicates that the data are spread out over a large range of values. Technically, the standard deviation of a statistical population, data set, or probability distribution is the square root of its variance. It is algebraically simpler though practically less robust than the average absolute deviation. A useful property of standard deviation is that, unlike variance, it is expressed in the same units as the data. Note, however, that for measurements with percentage as unit, the standard deviation will have percentage points as unit. In addition to expressing the variability of a population, standard deviation is commonly used to measure confidence in statistical conclusions. For example, the margin of error in polling data is determined by calculating the expected standard deviation in the results if the same poll were to be conducted multiple times. The reported margin of error is typically about twice the standard deviation – the radius of a 95 percent confidence interval. In science, researchers commonly report the standard deviation of experimental data, and only effects that fall far outside the range of standard deviation are considered statistically significant – normal random error or variation in the measurements is in this way distinguished from causal variation. Standard deviation is also important in finance, where the standard deviation on the rate of return on an investment is a measure of the volatility of the investment. When only a sample of data from a population is available, the population standard deviation can be estimated by a modified quantity called the sample standard deviation [pic] Risks can be reduced in four main ways: Avoidance, Diversification, Hedging and Insurance by transferring risk. Systemic risk, also called market risk or un-diversifiable risk, is a risk of security that cannot be reduced through diversification. Participants in the market, like hedge funds, can be the source of an increase in systemic risk and transfer of risk to them may, paradoxically, increase the exposure to systemic risk. Unsystematic risk also called the diversifiable risk or residual risk. The risk that is unique to a company such as a strike, the outcome of unfavorable litigation, or a natural catastrophe that can be eliminated through diversification. A ratio developed by Nobel laureate  William F. Sharpe to measure risk-adjusted performance. The  Sharpe ratio  is calculated by subtracting the risk-free rate – such as  that of the  10-year U. S. Treasury bond –  from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns. The Sharpe ratio formula is: [pic] The Sharpe ratio tells us whether a portfolio's returns  are due to smart investment decisions or a result of excess risk. This measurement is very useful because  although one portfolio or fund can reap higher returns than its peers, it is only a good investment if those higher returns do not come with too much additional risk. The greater a portfolio's Sharpe ratio, the better its risk-adjusted performance has been. A negative Sharpe ratio indicates that a risk-less asset would perform better than the security being analyzed. A variation of the Sharpe ratio is the Sortino ratio, which removes the effects of upward price movements on standard deviation to measure only return against downward price volatility. The Treynor ratio (sometimes called the reward-to-volatility ratio or Treynor measure), named after Jack L. Treynor, is a measurement of the returns earned in excess of that which could have been earned on an investment that has no diversifiable risk (e. g. Treasury Bills or a completely diversified portfolio), per each unit of market risk assumed. The Treynor measure is similar to the Sharpe measure, but the Treynor measure uses the portfolio’s beta instead of the portfolio’s standard deviation. The Treynor measure is calculated as follows: (rp – rf) / ? p In this equation, rp = the average return on the portfolio, rf = the average risk-free rate, and ? p = the weighted average beta of the portfolio. The Treynor measure is found by dividing the portfolio risk premium by the portfolio risk as measured by the beta. An asset’s Treynor measure in isolation also means little. It also must be measured against the market’s Treynor measure, which is calculated by dividing the market risk premium, or the return on the market minus the risk-free rate by the beta of the market, which is 1. 0. If the asset’s Treynor measure is greater than the market’s Treynor measure, the asset has outperformed on a risk-adjusted basis. Source: Investopedia SECTION B: ESSAY QUESTIONS Question 1: One of the primary uses of PPP is in lessening the misleading effects of shifts in a national currency. This is particularly an issue when calculating a nation's Gross Domestic Product (GDP). For example, if the riel falls in value to 80% of its value on the dollar, the GDP as expressed in US dollars will also drop to 80%. This does not accurately reflect the standard of living in that country (a common use of GDP), however, because the devaluation of the riel is most likely due to international trade issues that will not yet have had any effect on the average Cambodian. By using purchasing power parity, however, one is not misled by the temporary devaluation of the riel in relation to the dollar — a Big Mac ® still costs 9,000 riel in Cambodia and $3 USD in the US, and so the Big Mac ® index exchange rate remains the same. Purchasing power parity is, of course, an imperfect device for determining things such as GDP, as the exchange rate will vary based on the basket item used for the index. This effect is lessened by looking at a large sample of commodities, rather than one or two, but this simply minimizes the problem rather than eliminating it entirely. It is also worth noting that PPP lumps items together into broad classes, not taking into account things such as quality — a hat is a hat is a hat, and its value in the index remains static, even though a shoddy hat's value on the international market would be much lower than a well-made hat's value. According to interest rate parity the difference between the (risk free) interest rates paid on two currencies should be equal to the differences between the spot and forward rates. If interest rate parity is violated, then an arbitrage opportunity exists. The simplest example of this is what would happen if the forward rate was the same as the spot rate but the interest rates were different, then investors would: 1. borrow in the currency with the lower rate 2. convert the cash at spot rates 3. enter into a forward contract to convert the cash plus the expected interest at the same rate 4. nvest the money at the higher rate 5. convert back through the forward contract 6. repay the principal and the interest, knowing the latter will be less than the interest received. Therefore, we can expect interest rate parity to apply. However, there is evidence of forward rate bias. Covered interest rate parity Assuming the arbitrage opportunity described above does not exist, then the relations hip for US dollars and pounds sterling is: (1 + r? )/(1+r$) = (? /$f)/(? /$s) where r? is the sterling interest rate (till the date of the forward), r$ is the dollar interest rate, /$f is the forward sterling to dollar rate, ?/$s is the spot sterling to dollar rate Unless interest rates are very high or the period considered is long, this is a very good approximation: r? = r$ + f where f is the forward premium: (? /$f)/(? /$s) -1 The above relationship is derived from assuming that covered interest arbitrage opportunities should not last, and is therefore called covered interest rate parity. Uncovered interest rate parity Assuming uncovered interest arbitrage leads us to a slightly different relationship: r = r2 + E[? S] where E[? S] is the expected change is exchange rates. This is called uncovered interest rate parity. As the forward rate will be the market expectation of the change in rates, this is equivalent to covered interest rate parity – unless one is speculating on market expectations being wrong. The evidence on uncovered interest rate parity is mixed. The effect proposes that if the real interest rate is equal to the nominal interest rate minus the expected inflation rate, and if the rea interest rate were to be held constant, that the nominal rate and the inflation rate have to be adjusted on a one-for-one basis. Real interest rate = nominal interest rate – inflation rate. In simple terms: an increase in inflation will result in an increase in the nominal interest rate. For example, if the real interest rate is held at a constant 5. 5% and inflation increased from 2% to 3%, the Fisher Effect indicates that the nominal interest rate would have to increase from 7. 5% (5. 5% real rate + 2% inflation rate) to 8. 5% (5. 5% real rate + 3% inflation rate). International Fisher Effect theory that the currency of a nation with a comparatively higher interest rate will depreciate in value in comparison to the currency of a nation with a comparatively lower interest rate. It further implies that the extent of depreciation will be equal to the difference in interest rates in those two nations. It is based on the observation that the level of real interest rate in an economy is closely linked to the level of local inflation rate and is independent of a government's monetary policies. Thus, in general, the higher the inflation rate, the lower the value of currency. Source: Investopedia Question 2: Firstly, Comparative advantage was first described by Robert Torrens in 1815 in an essay on the Corn Laws. He concluded it was to England's advantage to trade with Portugal in return for grain, even though it might be possible to produce that grain more cheaply in England than Portugal. However, the concept is usually attributed to David Ricardo who explained it in his 1817 book On the Principles of Political Economy and Taxation in an example involving England and Portugal. In Portugal it is possible to produce both wine and cloth with less labor than it would take to produce the same quantities in England. However the relative costs of producing those two goods are different in the two countries. In England it is very hard to produce wine, and only moderately difficult to produce cloth. In Portugal both are easy to produce. Therefore while it is cheaper to produce cloth in Portugal than England, it is cheaper still for Portugal to produce excess wine, and trade that for English cloth. Conversely England benefits from this trade because its cost for producing cloth has not changed but it can now get wine at a lower price, closer to the cost of cloth. The conclusion drawn is that each country can gain by specializing in the good where it has comparative advantage, and trading that good for the other. Example: Two men live alone on an isolated island. To survive they must undertake a few basic economic activities like water carrying, fishing, cooking and shelter construction and maintenance. The first man is young, strong, and educated. He is also faster, better, and more productive at everything. He has an absolute advantage in all activities. The second man is old, weak, and uneducated. He has an absolute disadvantage in all economic activities. In some activities the difference between the two is great; in others it is small. Despite the fact that the younger man has absolute advantage in all activities, it is not in the interest of either of them to work in isolation since they both can benefit from specialization and exchange. If the two men divide the work according to comparative advantage then the young man will specialize in tasks at which he is most productive, while the older man will concentrate on tasks where his productivity is only a little less than that of the young man. Such an arrangement will increase total production for a given amount of labor supplied by both men and it will benefit both of them. Imperfect market refers to a type of  market that does not operate under the rigid rules of perfect competition. Perfect competition implies an industry or market in which no one supplier can influence prices, barriers to entry and exit are small, all suppliers offer the same goods, there are a large number of   suppliers and buyers, and information on pricing and process is readily available. Forms of imperfect competition include monopoly, oligopoly, monopolistic competition, monopsony and oligopsony. Thirdly, a product life cycle refers to the time period between the launch of a product into the market till it is finally withdrawn. In a nut shell, product life cycle or PLC is an odyssey from new and innovative to old and outdated! This cycle is split into four different stages which encompass the product's journey from its entry to exit from the market. The product life cycle theory is used to comprehend and analyze various maturity stages of products and industries. Product innovation and diffusion influence long-term patterns of international trade. This term product life cycle was used for the first time in 1965, by Theodore Levitt in an Harvard Business Review article: â€Å"Exploit the Product Life Cycle†. Anything that satisfies a consumer's need is called a ‘product'. It may be a tangible product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking, health care, hotel service, airline service). Irrespective of the kind of product, all products introduced into the market undergo a common life cycle. To understand what this product life cycle theory is all about, let us have a quick look at its definition. This cycle is based on the all familiar biological life cycle, wherein a seed is planted (introduction stage), germinates (growth stage), sends out roots in the ground and shoots with branches and leaves against gravity, thereby maturing into an adult (maturity stage). As the plant lives its life and nears old age, it shrivels up, shrinks and dies out (decline stage). Similarly, a product also has a life cycle of its own. A product's entry or launching phase into the market corresponds to the introduction stage. As the product gains popularity and wins the trust of consumers it begins to grow. Further, with increasing sales, the product captures enough market share and gets stable in the market. This is called the maturity stage. However, after some time, the product gets overpowered by latest technological developments and entry of superior competitors in the market. Soon the product becomes obsolete and needs to be withdrawn from the market. This is the decline phase. This was the crux of a product life cycle theory and the graph of a product's life cycle looks like a bell-shaped curve. Let us delve more into this management theory. Source: Buzzle Question 3: | | |Belize |Costa Rica | |Earnings before taxes | |1,000,000. 00 |1,500,000. 0 | |corporate income tax Rate | |0. 4 |0. 3 | |Tax | |400,000. 00 |450,000. 00 | |Earnings after taxes | |600,000. 00 |1,050,000. 00 | | | |300,000. 0 |525,000. 00 | |Dividend wtax rate   | |0. 1 |0 | |Dividend wtax amount | |30,000. 00 |0 | |Remitted amount after wtax | |270,000. 00 |525,000. 0 | | | | | | |Current US Corporate income tax rate | | |5% | |Dividend received by US parent after US Corporate tax | | |26,2500. 00 | |Net Dividend Received | |270,000. 0 |498,750. 00 | | | | | | |Total Earning before tax |250,000. 00 | | | | | | | | |Total Dividend received by Gramboa |768,750. 0 | | | |Total Tax pa id |906,250. 00 | | | | | | | | |Overall effective tax  rate |36. 35% | | | Question 4: Option 1 – No Hedging Assume that the expected spot rate in 90 Days is indeed $1. 7850/?. Now: a) 90 days putX = 1. 75P = 0. 015 b) 90 daysX = 1. 71P = 0. 01 3 months laterExercise Option (a) Received = (1. 75 – 0. 015) * 3mil = $5,205,000. 00 Answer: Do Not exercise Option 2 – Forward Hedge Buy a forward hedge at 90 Days forward rate at $1. 7550/? Now enter F @ 1,755 Money receivable in $ = 1. 755 x 3m = $5. 265m Option 3 – Money Market Hedge 1) Day 1 – Borrow ? , Amount borrowed = ? (3m / (1 + (14/4) /100)) = ? 2,898,550. 00 2) Day 1 – Convert all ? to $ = $1. 762 x 2,898,550. 00 = $5,107,246. 00 Option 1: Put $5,107,246. 0 to US bank @ 6% Option 2: Use $5,107,246. 00 as capital investment 3 months later:Option 1 Received ? 3 mil to pay ? 3 mil to British Bank Dollars in pocket = $5,107,246. 00 * (1+6%* 3/12) = $5,183,854. 69 Option 2 Received ? 3 mil to pay ? 3 mil to bank $5,107,246. 00 (1+12%*3/12) = $5,260,463. 00 Conclusion Money market is the best option as the m oney received is more than Put option hedge. Forward hedge resulted in receiving more than money market hedge wheras no hedging is assuming that the expected spot rate is reached but that is leaving it to chance. — END OF ASSIGNMENT–

Human Resource Management Development Into A Prevailing...

Consequently, is it not surprising that the literature of the 1990s points to human resource management’s development into a prevailing application of research. Marciano (1995) suggests that human resource management had practically displaced â€Å"personnel and in many schools threatening to supplant industrial relations and organizational behavior† (p. 223). Yet, at the same time defining human resource management was elusive with the inability â€Å"in identifying its boundaries, or in distinguishing it from related disciplines† (p. 223). Conversely, the literature turns its attention to the association between human resource management and â€Å"performance often incorporating aspects of business and HR strategy† as illustrated by Guest (1999),†¦show more content†¦20). Previous years, working for a company meant that an employee had assurances that they would have employment without the risk of losing their job, including opportunities for advancement, which â€Å"have been replaced with faint promises of trust† (p. 20) and â€Å"as a result, relationships with employees become transitional with employees giving their time and not much more† (p. 20). Aghazadeh (1999) also suggests that â€Å"operating managers and HR professionals† (p. 21) take responsibility for creating and maintaining a close collaboration to reconsider and reshape the numerous activities within an organization, including an affirmation towards the dedication and focus on results. Examination of the 21st century literature discovers a change in direction whereby the major focus of discussion revolves around the need for strategic approaches and further development of core competencies for human resource management, in the new millennium. Hays Kearney’s (2001) astute observations reveal that human resource management practices have continued to undergo infinite modifications. These frequent changes, according to Hays Kearney (2001), characterized a trend that predominantly embodied ubiquitous discontent with the profession, stemming from its conventional focus with limited procedures and the excessive exuberance imposing its policies. Nevertheless, the authors further indicate that due to external stresses such as the â€Å"fiscal crises, aShow MoreRelatedThe Position Analysis Of A Worker Oriented Approach For Gathering And Analyzing Job Information1540 Words   |  7 Pagesis to identify general job characteristics, and is primarily employed by human resource and personnel functions of organizations (Aamodt, 2012). The PAQ is not used by human resource functions for operational purposes, such as wok design or training programs, due to its generalized perspective on job analysis. 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