Interoffice memorandum Essay Example | Topics and Well Written Essays - 500 words

Interoffice memorandum - Essay Example In this regard, I just need to pay about $24000 tuition fee for my next two semesters till July 2015. After I graduate, the first five years I am setting three goals for myself. First, I plan to buy a car, second get married and third to get insurance. Meanwhile, if I find a full-time job, it shall me achieve these three goals by utilizing half of my salary for this purpose. I plan to save $300 per month for marriage, $200 for health and retirement insurances and the rest I plan to buy a car. If my salary comes about $4000/per month, I shall save $18000 for marriage (2012 average $28000 in USA), and I will be able to buy a car of ($90000) worth. Coming to my long term goals, I wish to focus for the real estate and find investment opportunities. In my opinion, my job shall help me save an amount which would be enough to pay down payment for my house. Moreover, I plan to invest for finance production. The two projects shall cost me 60% of my salary. In crux, I shall need to save above $2000 each month to achieve these goals. I also need to fill my expense planning charts. This shall entitle me to generate an understanding of my goals in detail. The first chart shall help me calculate the total amount to set aside each month for my fixed expenses. It is important to note that I have plans to invest $1500 into savings blank when I set in the target to save $2000 every month. In the second chart, it shall show the total monthly expenses that are flexible. The final budget will constitute the total amount of fixed and flexible expenses. As per my goal, if my first salary as $4000, so I expect to save at least $705 per month. In order to save my receipts and I shall provide all the details of my flexible daily expenses in the chart for June. My expenses shall include food, housing, transportation and others. As per my calculation, my food expense is $56.52 than my budget. However, I have been travelling for

There are five questions with different marks so question with 15 Essay

There are five questions with different marks so question with 15 marks have more word count ...even the answers should be suppo - Essay Example The world trade organisation (WTO) is one such body which is a contract enforcing governments to maintain their trade policies within the agreed upon rules. The core objectives are to set and enforce rules for global trade, to offer a forum for negotiating and scrutinizing further trade liberalization and to settle trade disputes. In addition, WTO seeks to enhance transparency in decision making process, assist developing nations gain fully from global trading system and cooperate with other global economic organisations. These objectives are similar to those of GATT, but WTO pursues these goals more comprehensively.1 The new Australian government is taking severe steps in its bid to uphold the Absolute Protection for Wild Whales Act 2013. In addition, the government of Australia seeks to ban entirely the importation, distribution and sale of whale and whale products within its borders. The government gives reasons that Japan and other governments have been weak in upholding the laws stipulated in the international whaling commission. The international whaling commission was set to introduce zero catching limits for profitable whaling as well as keeping whale catch limits under scrutiny. All this was in a bid to enhance and foster the recovery of depleted whale populations. The ban applies to the vending of domestic products and products from foreign countries. This includes goods that Australian travellers bring into the country from abroad. Article I: 1 Article I: 1 of the GATT 1947 prohibits discrimination among like products coming from or destined for different countries. In the Canada-autos case, the measure at issue was Canada’s duty exemption for imports by certain manufacturers in partnership with Canadian value added. Automobile imports and imported automobiles materials were the product at issue. The appellate body/ key panel upheld that duty exemption was inconsistent to the article I:1 on the grounds that the article covers de jure and de fa cto unfairness. Moreover, the duty exemption at issue in verity was given only to imports from a smaller number of countries in which the exporter was associated with suitable Canadian manufacturers. Canada’s defence was abandoned on grounds that duty exemption was given to certain countries other than all manufacturers from all countries. In relation to Australian current issue, the country has not violated article I: 1 since the ban is not discriminatory in nature. The ban covers all aspects of whale products from foreign countries. Further, Australia is not discriminatory since it also bans whale products that Australian travellers bring into the country. One may argue that products brought by tourists do not constitute trade goods and thus this is discrimination. However, the country seals this loophole as people may exploit it to continue the usage and sale of whale products. Article III: 4 Article III: 4 were set in the case of Korea –various measures on beef; th e appellate body established three components that have to be fulfilled for the violation to arise. One, the traded in and national products at issue are â€Å"like products† that the determination is the issue at â€Å"law, directive, or obligation affecting their domestic sale, offering for sale, purchase, transport, delivery or sale†. The final component is that imported goods are given â€Å"less favourable† dealing than that given to like domestic products. In relations to article

Commercial Risk in International Business

Commercial Risk in International Business What is International business ? International business is a term used to collectively describe all commercial transactions (private and governmental, sales, investments, logistics, and transportation) that take place between two or more nations. Usually, private companies undertake such transactions for profit; governments undertake them for profit and for political reasons. A multinational enterprise (MNE) is a company that has a worldwide approach to markets and production or one with operations in more than a country. An MNE is often called multinational corporation (MNC) or transnational company (TCN). Well known MNCs include fast food companies such as McDonalds and Yum Brands, vehicle manufacturers such as General Motors, Ford Motor Company and Toyota, consumer electronics companies like Samsung, LG and Sony, and energy companies such as ExxonMobil, Shell and BP. Most of the largest corporations operate in multiple national markets. Areas of study within this topic include differences in legal systems, political systems, economic policy, language, accounting standards, labor standards, living standards, environmental standards, local culture, corporate culture, foreign exchange market, tariffs, import and export regulations, trade agreements, climate, education and many more topics. Each of these factors requires significant changes in how individual business units operate from one country to the next. The conduct of international operations depends on companies objectives and the means with which they carry them out. The operations affect and are affected by the physical and societal factors and the competitive environment. Objectives of International Business: sales expansion, resource acquisition, risk minimization. What are Risk In International Business ? Companies doing business across international borders face many of the same risks as would normally be evident in strictly domestic transactions. For example, * Buyer insolvency (purchaser cannot pay); * Non-acceptance (buyer rejects goods as different from the agreed upon specifications); * Credit risk (allowing the buyer to take possession of goods prior to payment); * Regulatory risk (e.g., a change in rules that prevents the transaction); * Intervention (governmental action to prevent a transaction being completed); * Political risk (change in leadership interfering with transactions or prices); and * War and Acts of God. * The risks that exist in international trade can be divided into two major groups: Economic risks . Risk of insolvency of the buyer, . Risk of protracted default the failure of the buyer to pay the amount due within six months after the due date . Risk of non acceptance . Surrendering economic sovereignty * Political risks . Risk of cancellation or non renewal of export or import licences . War risks . Risk of expropriation or confiscation of the importers company . Risk of the imposition of an import ban after the shipment of the goods . Transfer risk imposition of exchange controls by the importers country or foreign currency shortages . Surrendering political sovereignty  · Exchange rates * Price for which the currency of a country can be exchanged for another countrys currency. Factors that influence exchange rate include (1) interest rates, (2) inflation rate, (3) trade balance, (4) political stability, (5) internal harmony, (6) high degree of transparency in the conduct of leaders and administrators, (7) general state of economy, and (8) quality of governance. Risks in international trade can be divided under several types, such as: Economic risks: * Risk of concession in economic control * Risk of insolvency of the buyer * Risk of non-acceptance * Risk of protracted default i.e. the failure of the buyer to pay off the due amount after six months of the due date * Risk of Exchange rate * Political risks: * Risk of non- renewal of import and exports licenses * Risks due to war * Risk of the imposition of an import ban after the delivery of the goods * Surrendering of political sovereignty Buyer Country risks * Changes in the policies of the government * Exchange control regulations * Lack of foreign currency * Trade embargoes Commercial risk: * A banks lack of ability to honor its responsibilities * A buyers failure pertaining to payment due to financial limitations * A sellers inability to provide the required quantity or quality of goods Others Risks : * Cultural differences e.g., some cultures consider the payment of an incentive to help trading is absolutely lawful * Lack of knowledge of overseas markets * Language barriers * Inclination to corrupt business associates * Legal protection for breach of contract or non-payment is low * Effects of unpredictable business environment and fluctuating exchange rates * Sovereign risk the ability of the government of a country to pay off its debts * Natural risk due to the various kinds natural catastrophes, which cannot be controlled There are many other risks which are the following. (1) Strategic Risk (2) Operational Risk (3) Political Risk (4) Country Risk (5) Technological Risk (6) Environmental Risk (7) Economic Risk (8) Financial Risk (9) Terrorism Risk Strategic Risk: The ability of a firm to make a strategic decision in order to respond to the forces that are a source of risk. These forces also impact the competiveness of a firm. Porter defines them as: threat of new entrants in the industry, threat of substitute goods and services, intensity of competition within the industry, bargaining power of suppliers, and bargaining power of consumers. Operational Risk: This is caused by the assets and financial capital that aid in the day-to-day business operations. The breakdown of machineries, supply and demand of the resources and products, shortfall of the goods and services, lack of perfect logistic and inventory will lead to inefficiency of production. By controlling costs, unnecessary waste will be reduced, and the process improvement may enhance the lead-time, reduce variance and contribute to efficiency in globalization. Political Risk: The political actions and instability may make it difficult for companies to operate efficiently in these countries due to negative publicity and impact created by individuals in the top government. A firm cannot effectively operate to its full capacity in order to maximize profit in such an unstable countrys political turbulence. A new and hostile government may replace the friendly one, and hence expropriate foreign assets. Country Risk: The culture or the instability of a country may create risks that may make it difficult for multinational companies to operate safely, effectively, and efficiently. Some of the country risks come from the governments policies, economic conditions, security factors, and political conditions. Solving one of these problems without all of the problems (aggregate) together will not be enough in mitigating the country risk. Technological Risk: Lack of security in electronic transactions, the cost of developing new technology, and the fact that these new technology may fail, and when all of these are coupled with the outdated existing technology, the result may create a dangerous effect in doing business in the international arena. Environmental Risk: Air, water, and environmental pollution may affect the health of the citizens, and lead to public outcry of the citizens. These problems may also lead to damaging the reputation of the companies that do business in that area. Economic Risk: This comes from the inability of a country to meet its financial obligations. The changing of foreign-investment or/and domestic fiscal or monetary policies. The effect of exchange-rate and interest rate make it difficult to conduct international business. Financial Risk: This area is affected by the currency exchange rate, government flexibility in allowing the firms to repatriate profits or funds outside the country. The devaluation and inflation will also impact the firms ability to operate at an efficient capacity and still be stable. Most countries make it difficult for foreign firms to repatriate funds thus forcing these firms to invest its funds at a less optimal level. Sometimes, firms assets are confiscated and that contributes to financial losses. Terrorism Risk: These are attacks that may stem from lack of hope; confidence; differences in culture and religious philosophy, and/or merely hate of companies by citizens of host countries. It leads to potential hostile attitudes, sabotage of foreign companies and/or kidnapping of the employers and employees. Such frustrating situations make it difficult to operate in these countries. CASES * October 2006 International Risk North Korea Future Implications International Risk has drawn up a report which explores the strategic thinking of the North Korean regime and their logic for conducting nuclear tests. The report outlines the likely future implications for Asia. * September 2005 International Risk Assessment: INDIA BUSINESS RISK OPPORTUNITIES India continues to establish itself as an emerging global force attracting increasing foreign direct investment. In response to the ever changing business climate, companies need to develop strategies to increase competitiveness and improve profitability. When expanding into new and developing markets, there are various elements that help make the endeavour successful as well as risks which can lead to severe disappointment. With India being touted as the new market and global player, it is critical that companies understand and appreciate both the opportunities and challenges faced by foreign investors. In short, provided companies take appropriate action to, India works. It represents a huge opportunity for the investor who has the appetite for detail, is patient and looks to the long term. International Risk, the premier international risk mitigation and investigation company, provides a strategic assessment on the risks and opportunities for foreign investors entering this exciting market. * May 2005 International Risk Macau Strategic Risk Assessment In the five years since its return to Chinese sovereignty, the former Portuguese colony of Macau has witnessed unprecedented economic growth, driven by huge investment inflows into its gaming and tourist industries and an explosion in visitor arrivals, particularly from the mainland. Whilst there are positive indications as to Macau continuing its growth as a regional gaming centre, much like its new role model Las Vegas, there are nevertheless uncertainties and risks arising from its chequered past as much as from its future under Beijings current benevolent oversight. Understanding these factors is crucial if foreign investors are to mitigate this risk. International Risk, the premier international risk mitigation and investigation company has developed a strategic review of the challenges facing Macau, the opportunities it presents investors, and the risks they could encounter. International Risk has considerable experience in discreetly assisting foreign investors who seek to enter this colorful, yet exciting environment. * April 2005 International Risk Report on China-Japan  § Political and strategic frictions between China and Japan have been growing over the past few years because of deep-seated historical distrust and an accelerating rivalry for regional power and influence between the two countries. But these tensions were previously contained and offset by close economic ties and the sharing of many issues of mutual interest, such as concerns over the rise of a nuclear North Korea.  § This calm in China-Japan relations has been damaged by a perfect storm of controversies that has unleashed pent-up passions among Chinese city-dwellers across the country. The history text-book issue over Japans war-time activity in China, Japans bid for a permanent UN Security Council seat and Tokyos decision to allocate drilling rights in disputed territorial waters are all highly charged emotional issues that strike at the very heart of Chinese popular nationalism.  § While these controversies have propelled Chinese onto the streets in their thousands, the Chinese leaderships decision to allow these anti-Japanese protests to take place is driven by deeper structural issues that suggest China-Japan ties are likely to remain volatile in the longer term. Managing the Risks of International Trade This guide provides information that will help you to put procedures in place to minimise the risks involved in international trade. You should read it if you are responsible for planning and delivering the export strategy in your company. You should make sure that the information in this briefing is read by your sales and marketing force, your finance management team, your credit manager and the sales ledger controller. What types of risks will I have to manage? Customer Risk You will need an assessment of the credit worthiness of your customer. This should include checking the following: à ¢Ã¢â€š ¬Ã‚ ¢ The identity of your customer. Do they exist as a legally established business in the country of import? Are you dealing with someone who has the authority to bind your customer; à ¢Ã¢â€š ¬Ã‚ ¢ The usual period of credit offered in your customers country; à ¢Ã¢â€š ¬Ã‚ ¢ The credit limit you are prepared to offer your customer; à ¢Ã¢â€š ¬Ã‚ ¢ The trading history of your customer. Are they a prompt payer? Have there been any changes to their normal payment patterns? à ¢Ã¢â€š ¬Ã‚ ¢ Are your exports compatible with your customers normal business profile? à ¢Ã¢â€š ¬Ã‚ ¢ Can your customer pay the bill? à ¢Ã¢â€š ¬Ã‚ ¢ Insolvency. Remember that a customers insolvency can involve you in a pre credit risk, where losses can occur if your customer becomes insolvent during the manufacturing process or at any time before or after the despatch of the export consignment. You can obtain the information needed to carry out these checks either yourself or through a reputable credit agency or credit insurer. Country Risk As well as your customer, their country can pose separate risks that you will need to manage. Country risks traditionally fall into five areas: à ¢Ã¢â€š ¬Ã‚ ¢ Sovereign: The willingness or ability of the government to pay its debts. This is affected by the political climate within the country, internal and external threats to the country; international trading performance including balance of payments record; the level of national debt and the amount of foreign exchange reserves. Other political decisions can also frustrate your export sales; these include the imposition of embargoes, tariff or other quotas, and import or export restrictions. à ¢Ã¢â€š ¬Ã‚ ¢ Private: The ability of the private sector to pay for its imports. This situation is affected by the 2 SITPRO Management Guide: Managing the Risks of International Trade state of the domestic economy, the commercial institutions in the country, and the competence of banking and financial services sector. à ¢Ã¢â€š ¬Ã‚ ¢ Natural: Some regions of the world suffer from regular climactic catastrophes (for example annual flooding, drought, earthquakes and other disasters). When these occur they can severely disrupt the operations of both the business sector and the government. à ¢Ã¢â€š ¬Ã‚ ¢ Fashion and Finance: International trading patterns often create a fashionable region or country as an export market. In these circumstances trade finance is often readily available, allowing you to offer good credit terms to your export customers. However, fashions change and countries can quickly go out of favour for both exports and trade finance. à ¢Ã¢â€š ¬Ã‚ ¢ Other: These include transfer risks such as the inconvertibility of the local currency; transaction risks such as late or non-payment, and transition risks for emerging markets where the threats are the effectiveness of the liberalisation programme, failure to complete economic structural reforms and any possible destabilising influences. You can obtain information about country risks by visiting the country and/or by speaking to other knowledgeable organisations such as UK Trade Investment, your local chamber of commerce or one of the major banks. Credit Risk Perhaps the first question you should ask is Can I afford to give my customers credit? To decide how much credit you are prepared to advance you must consider: à ¢Ã¢â€š ¬Ã‚ ¢ The amount of credit outstanding in your trading accounts, both overseas and domestic; à ¢Ã¢â€š ¬Ã‚ ¢ What do you know about your customer and what is the maximum amount of credit you should NOT exceed; à ¢Ã¢â€š ¬Ã‚ ¢ Can you carry any financial shortfall? What will be the impact on your business if your customer delays payment or does not pay at all? à ¢Ã¢â€š ¬Ã‚ ¢ How will you finance the credit period you offer? This means do you have sufficient money to allow you to offer credit terms in export sales contracts as part of your business cycle. Foreign Exchange Risk When you trade internationally you will most likely be dealing in more than one currency. This means you are exposed to fluctuations in the foreign exchange market. You can learn how to manage this risk by referring SITPROs guide on The Foreign Exchange Market. Other risks If you manufacture goods to order you must include in your export strategy a contingency that will help you manage the risk of a frustrated export this is when your customer refuses the goods. You should have a plan to either resell the product to another market or realise a salvage value for your goods. Managing the Risks of International Trade: You must also have procedures in place for the collection of your invoice amount. Under your contract you may have to collect your money in your customers country. This does have its risks as collection maybe more uncertain or expensive, so you will have to consider the legal system in their country. Your contract may, however, allow you to take legal steps to recover your debt in another country, including your own. How do I manage these risks? You can do the job yourself or employ the services of a comprehensive credit management and insurance provider. If you decide, for sound business reasons, to do the job in house then you must have the resources and knowledge to: à ¢Ã¢â€š ¬Ã‚ ¢ gather credit and other trade information about existing, and potential, customers; à ¢Ã¢â€š ¬Ã‚ ¢ research the country and associated risks; à ¢Ã¢â€š ¬Ã‚ ¢ examine the need for credit insurance, identify the most appropriate policy and investigate competitive products and services; à ¢Ã¢â€š ¬Ã‚ ¢ manage the credit insurance policy and maximise any benefits If you decide to go down this route, you will have to consider the financial and other impacts on your business. These include senior management ownership of the credit management strategy; The allocation of sufficient time, resource and money to do the job, and a review of your export catalogue prices. You must remember to include the costs of in house risk management and extending credit terms in your export quotes. Otherwise, a profit can soon turn into a loss as administrative costs eat into your bottom line. What types of risk management and insurance services are available? Classically, these are the approaches adopted by the business sector, based on the pattern of trade of the exporter. Type of business à ¢Ã¢â€š ¬Ã‚ ¢ Supplying goods to markets and customers on a regular basis; à ¢Ã¢â€š ¬Ã‚ ¢ A large one-off sales contract; à ¢Ã¢â€š ¬Ã‚ ¢ The supply of capital or semi-capital goods for major overseas projects; à ¢Ã¢â€š ¬Ã‚ ¢ The provision of services such as surveys or feasibility studies; à ¢Ã¢â€š ¬Ã‚ ¢ Smaller or new exporters. Products and services Depending on your type of business, the following products and services are available to you: à ¢Ã¢â€š ¬Ã‚ ¢ A partnership with a Credit Insurer to identify and assess your business prospects and cover the risks on your exports. The service can be tailored to meet your needs, by covering all Managing the Risks of International Trade. Your sales ledger, or just your accounts with larger customers, or by having a geographic limit, or by product line, or indeed in many other ways; à ¢Ã¢â€š ¬Ã‚ ¢ A specific insurance policy structured for a particular deal. Such a policy will take into account any factors unique to the sales contract which is being covered. Specific policies are ideal for contracts whose size or duration fall outside the normal pattern of your trade. Also they are suitable for the sale of capital or semi capital goods on extended credit. Insurance for individual contracts can be obtained from credit insurance companies but the main supplier of this service, particularly for capital goods contracts, is the Export Credits Guarantee Department (ECGD); à ¢Ã¢â€š ¬Ã‚ ¢ Smaller or new exporters can use a Managed Credit Insurance scheme as a way of contracting-out the credit control functions (obtaining country information, checking customer details and credit limits, chasing overdue payments and making claims). The cost of these services are often included in the premium for the scheme. Where do I obtain these services? You can approach specialist credit management and insurance providers, or your insurance adviser (broker, agent or intermediary). A list of credit insurance companies can be obtained from Association of British Insurers. Details of specialist advisers can be obtained from organisations such as the British Insurance Brokers Association. With their worldwide networks credit insurance companies have years of experience and expertise in analysing and covering the risks involved in international trade. In addition to covering commercial debts and indemnifying you if your customer fails to pay, they can provide you with guaranteed cover which could improve your cash-flow, provide confidence to maximize your export sales and may enhance your borrowing power. The use of credit insurance imposes on your company a disciplined and professional approach to trade risk management. Adopting this solution can help reduce your bad debts, improve your competitiveness in the global marketplace and increase your profitability. Are there any other options open to me? There are other financial solutions to you credit management risks: à ¢Ã¢â€š ¬Ã‚ ¢ do nothing, and carry the risk yourself. The extent of the risk you are prepared to take will determine if this option is appropriate; à ¢Ã¢â€š ¬Ã‚ ¢ Factoring or invoice discounting; à ¢Ã¢â€š ¬Ã‚ ¢ Forfaiting.; à ¢Ã¢â€š ¬Ã‚ ¢ Secured payment terms (for example, Letters of Credit); à ¢Ã¢â€š ¬Ã‚ ¢ Insurance-backed financial packages. Managing the Risks of International Trade How much will it cost me? Like all insurance cover (premises, employers liability, business interruption) you will have to pay for your risk management and insurance services. Policies based on a specific risk are available and premium is usually on a one-off basis. Premium is calculated according to the specific risk in question, credit period offered, your customers country and the duration of the risk from the insurers perspective. There are also credit insurance policies and managed schemes that will cover all of your export turnover. Premium is usually annual and assessed against your estimated insurable turnover (the sales on credit covered). With your credit insurer you will have to agree your target export turnover for any one year. Typically, you can expect to pay between 0.35% and 0.65% for this type of policy, dependent on your products, the number of customers and range of your export markets, your export trading experience, and your own credit management system. As with all insurance cover, you should spend time researching the market and getting quotes from a range of credit insurance providers. The costs quoted are based on typical policies available for small or new exporters wishing to cover sales with fairly short delivery and payment profiles. Costs will rise for specific policies where the horizon of risk for the insurer might be 2 or 3 years as in the case of ECGD cover for capital goods projects. Conclusion Credit insurance is an important risk management tool to help you protect the payment of your overseas accounts and unlock the full potential of your export business. You should carefully consider including it in your global trading strategy. What are the major risks for business? 1. Political risk 2. Economic risk 3. Financial risk What is the risk in the following Countries..? INDIA : In India or country risk tier (CRT) is categories in three types of risks. Political, economical financial risks. * Poverty reduction in India is heavily reliant upon high levels of economic growth, which is likely to return in 2010/11. Political Risk: High à ¢Ã¢â€š ¬Ã‚ ¢ Income disparity in India is significant, as approximately one third of the population lives in poverty. à ¢Ã¢â€š ¬Ã‚ ¢ National security has become a focus in India as some of the major cities have been the scene of terrorist bombings. à ¢Ã¢â€š ¬Ã‚ ¢ The bilateral relationship with Pakistan is strained, and receives worldwide attention. Efforts in recent years to make reparations have been interrupted repeatedly by acts of violence. Financial System Risk: Moderate à ¢Ã¢â€š ¬Ã‚ ¢ The insurance industry is regulated by the Insurance Regulatory and Development Authority (IRDA). à ¢Ã¢â€š ¬Ã‚ ¢ The Indian government is working to align its regulatory and accounting standards with international best practices. à ¢Ã¢â€š ¬Ã‚ ¢ The Indian financial system has fared relatively well during the global financial crisis. Economic Risk: Moderate à ¢Ã¢â€š ¬Ã‚ ¢ India, with a massive population exceeding one billion, is home to the worlds 12th largest economy as measured by gross domestic product (GDP). à ¢Ã¢â€š ¬Ã‚ ¢ Indias information technology sector and business services sector have been drivers of growth as the government has supported development with improvements in infrastructure and regulation. à ¢Ã¢â€š ¬Ã‚ ¢ A notable point of weakness for the Indian economy is the worsening government budget balance. The deficit will likely reach -7.0% of GDP in 2008/09. CANADA: Economic Risk: Very Low à ¢Ã¢â€š ¬Ã‚ ¢ Canadas economy is developed, with services and manufacturing accounting for the majority of the countrys output. à ¢Ã¢â€š ¬Ã‚ ¢ International trade is vital to the economy as exports represent about 40% of GDP with nearly 80% of those exports going to the United States. à ¢Ã¢â€š ¬Ã‚ ¢ Economic growth in Canada began to contract in the fourth quarter of 2008 and will continue to contract until 2010. Political Risk: Very Low à ¢Ã¢â€š ¬Ã‚ ¢ Canada is a high income country with significant natural resources and an established legal system. à ¢Ã¢â€š ¬Ã‚ ¢ Canadas economy is inexorably linked to that of the United States due to the latter countrys geographic proximity, cultural similarities and economic size. à ¢Ã¢â€š ¬Ã‚ ¢ Canadas budget has moved into deficit as the government uses fiscalpolicy to help stimulate the economy. Financial System Risk: Very Low à ¢Ã¢â€š ¬Ã‚ ¢ Insurance companies in Canada can be licensed at a national and/or provincial level. à ¢Ã¢â€š ¬Ã‚ ¢ Federal companies are registered under the Insurance Companies Act of Canada and are regulated by the Office of the Superintendent of Financial Institutions of Canada. USA: Economic Risk: Very Low à ¢Ã¢â€š ¬Ã‚ ¢ The United States economy is the largest and most advanced in the world with gross domestic product (GDP) of more than USD 14 trillion. à ¢Ã¢â€š ¬Ã‚ ¢ The United States has the dual advantage of being rich in natural resources, both agricultural and mineral, but also capable of producing high-end products such as computers and peripherals, medical equipment, pharmaceutical products and military equipment. à ¢Ã¢â€š ¬Ã‚ ¢ The U.S. economy is currently experiencing its worst economic contraction since at least the early 1980s with unemployment expected to reach double digits and GDP reaching negative 3% in 2009. Political Risk: Very Low à ¢Ã¢â€š ¬Ã‚ ¢ The United States has a stable democratic political system and a strong legal system. à ¢Ã¢â€š ¬Ã‚ ¢ The United States is currently involved in armed combat in Iraq and Afghanistan which has put strain on the relationships between the U.S. and much of the international community. à ¢Ã¢â€š ¬Ã‚ ¢ The U.S. is currently using expansionary fiscal policy to stimulate the economy and this has led to a substantial increase in the budget deficit. Financial System Risk: Very Low à ¢Ã¢â€š ¬Ã‚ ¢ Insurance regulation in the United States is decentralized and handled on a state by state basis. à ¢Ã¢â€š ¬Ã‚ ¢ The financial system in the U.S. is going through a tumultuous period with the government intervention with large corporations such as Bear Stearns, Citigroup and AIG. UK: Economic Risk: Very Low à ¢Ã¢â€š ¬Ã‚ ¢ The United Kingdom (UK) has the second largest economy in Europe behind Germany. Service industries represent three quarters of economic production, particularly financial services and real estate activities. London is a global financial center and businesses there account for nearly half of the countrys financial services industry. à ¢Ã¢â€š ¬Ã‚ ¢ The UK economy entered into a recession in the second half of 2008 as the country has been hit hard by the financial crisis and a declining housing market. The economy is not expected to recover until mid to late 2010 at the earliest. Political Risk: Very Low à ¢Ã¢â€š ¬Ã‚ ¢ The United Kingdom is a member of the European Union. However, the United Kingdom, along with Denmark, obtained special opt-outs from the Maastricht Treaty which allows them to not adopt the euro unless they wish. à ¢Ã¢â€š ¬Ã‚ ¢ The UK government has taken steps to counteract the effects of the current financial crisis. These steps include partial nationalization of the banking system and implementing several stimulus packages. Financial System Risk: Very Low à ¢Ã¢â€š ¬Ã‚ ¢ The Financial Services Authority (FSA) regulates the UK financial services industries, including insurance. à ¢Ã¢â€š ¬Ã‚ ¢ The UK is widely seen as a major center for international insurance and reinsurance and is home to the London Market, a wholesale market that writes risk around the world. Lloyds of London accounts for over half of the business on the London Market. JAPAN: Economic Risk: Low à ¢Ã¢â€š ¬Ã‚ ¢ Japan, an industrialized and advanced country, is home to the second largest economy in the world behind that of the United States. à ¢Ã¢â€š ¬Ã‚ ¢ Gross domestic product (GDP) growth, which had been weak over the past 20 years, will fall sharply in 2009 as domestic demand and exports contract. The government is responding to the crisis with aggressive expansionary fiscal policies that should result in a return to modest growth in 2010. à ¢Ã¢â€š ¬Ã‚ ¢ Inflation, however, is expected to remain negative until 2011.

Atomic Bomb 8 Essay -- essays research papers fc

Atomic Bomb In 1945, two bombs were dropped on Japan, on in Hiroshima and one in Nagasaki. Theses bombs marked the end to the world’s largest armed conflict. Despite the ghastly effects of such a weapon, it offered the best choice for a quick and easy defeat of Japan. President Truman, who authorized the use of the atomic bomb, made a wise decision under the circumstances of the war. Fifty years ago this is what people thought. Now many people are starting to find out that there might be more to the story than what was originally thought (Grant 26).   Ã‚  Ã‚  Ã‚  Ã‚  The bombs dropped on Nagasaki and Hiroshima caused massive amounts of damage and ruined thousands of lives, but they saves many more lives by ending the war quickly. Many questions pop into the heads of people that might have doubts whether or not the bombings were necessary. Such questions might include: Why, exactly, was the bomb dropped? Was the second bomb necessary? Was Japan about to surrender? Was there a way to end the war less savagely? Would our current leaders have made the same decision? Was any authority opposed to the idea? Should we have bombed military bases instead of cities? These and many other questions arise. Before these are analyzed, a brief background on the bombs and the tests are in order (O’Neal 47). When a man from the Soviet Union successfully split an atom, the question of a bomb immediately arose. Einstein wrote a letter to President Truman stating that if a bomb was possible then the country to own it would have complete power. In light of this information, Truman formed an Interim Committee to research the topic and find out if it was possible. It was funded by Truman’s multi-million dollar personal budget. The results came back positive and full financial support was given to the team to start working on it immediately (Grant 29).   Ã‚  Ã‚  Ã‚  Ã‚  The calculations made by the research team were as follows. The bomb would be equivalent to 4,000 planeloads of the current explosives. And estimate on cost and time could not be predicted because some still believed it wasn’t possible (Reflections 1).   Ã‚  Ã‚  Ã‚  Ã‚  At the end of a three-year research, a bomb was ready for testing. A test site was cleared in New Mexico. It had a 120-mile radius. Once the President gave the final confi... ... war quickly. This policy of maximum violence led to the quick end of the deadlock in Japanese politics. Had such a policy not been used, the war could have dragged on for months or perhaps years more with mounting casualties on both sides. The political power of the atomic bomb was unmatched and proved to be the only force that could get the emperor to intervene in Japanese politics and stop the hostilities. The atom bomb proved to be the ultimate ambassador in a war where conventional politics were futile (O’Neal 98). Works Cited Ferrell, Robert H. Harry S. Truman and the Bomb. Worland, Wyoming: High Plains Publishing Company Inc. 1996. Grant, R.G. Hiroshima and Nagasaki: Austin, Texas: Raintree Sterk-Vaugh Publishers. 1998. Meen, B.G. “Conflicts: The Atomic Bomb.'; Texas Monthly. June 89: 79. O’Neal, Michael. President Truman and the Atomic Bomb. San Diego, California; Greenahaven Press, Inc. 1990. Purcell, John. The Best Kept Secret: The Story of the Atomic Bomb. New York: The Vanguard Press, Inc. 1963. “Reflections of the Nuclear Age';. Atomic Archive: 3pg. Internet. http://www.atomicarchive.com/AAReflection.shtml. 12/11/99.

Alcoholism Issue Within College Society

Do you remember graduating high school? Remember all the questions you had to ask yourself. What are you going to do now? Do you want to work? Do you want to go to school again for another four years? These questions are eventually answered and some choose to find a job, and others figure out that going to college is probably a good thing. Now you have realized that you want to get a taste of college life and you†re back to where you started. Where do you get the money? Where do you want to go? What are you really going to get out of this? Finally you make your decisions and you now find yourself away from home in a new environment, living the college life. College is a time where tough decisions are to be made and these choices can change the direction of your life. It is a time where in most cases students get a taste of the real world by being away from home for the first time with a new found freedom to live as they please. College life is a new experience and the pressures that come along with it have an effect on a student†s path to success. Unfortunately, alcohol is one of these pressures. Alcohol abuse is a major problem that many young men and women encounter throughout their college experience. Drinking on college campuses is a problem that affects everyone. Let†s first begin by understanding what alcoholism is and what it does to us. Alcoholism can be defined as an illness or a chronic disorder that comes from constant drinking. It obviously has serious physical and mental effects on a person. According to Louis Joylon West, M. D. a professor and Chairman of the Department of Psychiatry and Biobehavioral Sciences at the UCLA School of Medicine, the attributes that define an addiction, in this case alcohol, include craving, tolerance and withdrawal phenomena (West, 28). This is a problem that exists among men and women of all ages. Alcohol addiction has no barriers to race, religion or sex; anyone can have this addiction. Is alcoholism a disease? The American Medical Association and the World Health Organization officially acknowledged alcoholism as a disease in the 1950†³s. It is very apparent that alcohol abuse has major effects on major organs of the body. Ethyl alcohol, or ethanol, causes severe damage to excretory organs including the liver and kidneys. Yet the major organ affected the most by outcomes of ethanol is the brain. Long-lasting effects of impairment of normal brain functions and damage of brain tissue are results of constant drinking. These outcomes eventually lead to other diseases of the body such as cirrhosis of the liver and mental disorders including depression and anxiety. However, addiction to alcohol has side effects not only to a person†s body but effects to those who surround them. Stewart G. Wolf, a professor at the Temple University School of Medicine, states, It should be emphasized that alcoholism is more than a disease of an individual. It disrupts the equilibrium of the family structure and, in one way or another, affects every family member. New equilibriums must be established when the alcoholic stops drinking, and there are adjustment to be made throughout both the drinker†s period of recovery and after the establishment of long-term sobriety (28). College drinking among university and college campuses across the United States is very prominent. According to studies conducted by the Harvard School of Public Health, heavy drinking by college students has gone up since the beginning of the 1990†³s to the present. The study conducted in 1993 included a survey of 15,103 students to learn of student drinking habits. Results of the study showed that 39 percent of surveyed students consumed alcohol until they felt drunk. The same study was conducted in 1997 among 14,521 students and showed that 52 percent â€Å"drank to get drunk†, an increase of 13 percent. However binge drinking, defined as consumption of five drinks in a row by men and at least four drinks in a row by women in the past two weeks, has gone down according to the study (American Medical News, 39). This landmark study of college drinking has changed the thoughts and ideas of college administrators. It has been proven that this is a major problem, and it is worsening among the young men and women who attend our colleges. College drinking has an effect on not only the drinkers, but on their friends and classmates as well. How are non-drinking students affected by the presence of alcohol? Many are pressured to drink in order to fit in with a crowd. Many students feel that it is cool to be seen with a beverage in your hand at a party or a function. The need for acceptance among their peers is a big deal to many first-year students and therefore many give in to these pressures. Yet there are many students that come to college to study and not to party. It has been proven that drinking on campus has consequences for those who choose not drink as well. According to the Brown University Digest of Addiction Theory and Application, students who drink cause problems that effect other students who do not drink. Non-drinking students, at schools where drinking was common, reported having sleeping and study difficulties (68%) as well as having to console drunken students regularly (54%). Also, the study showed that students reported being degraded and harassed by students that were intoxicated (34%) and having been sexually provoked by drunken students (26%). Students attending other schools where excessive drinking took place reported similar results (5). How does the presence of alcohol affect first-year college students? Many students that are going to college for the first time are looking for new friends and buddies to hang out with. Fraternities and sororities at our colleges in the United States help freshmen students in finding a new home. This in turn introduces them to the social functions that exist within a college campus. The Greek society within our colleges and universities has for years been known to contribute in student drinking on campus. In the November 1, 1998 edition of the Oregonian, writer Spencer Heinz reported that four out of five people associated with college fraternities or sororities were binge drinkers (A2). Fraternity and sorority life is considered a brotherhood and sisterhood. They encourage a family-like relationship between members and promote partying together. Unfortunately, many functions created by these fraternities and sororities do not prohibit the use of alcohol. Members are therefore allowed to drink at these parties, which exposes new students to alcohol. Many of these freshmen are not mature enough to know where to draw a line and when this occurs, problems begin. There are far too many examples of how drinking among college fraternities and sororities have led to severe consequences. Heavy consumption of alcohol has been the cause of an increased number of assaults and unintentional injuries on campuses across the United States. Alcohol related deaths have gone up as well. A direct example is the case of Benjamin Wynne, an undergraduate student that attended Louisiana State University. Upon gaining acceptance into the fraternity, Alpha Sigma Epsilon, the fraternity had a party where alcoholic drinks were served. Wynne died the next morning with a blood alcohol level of . 588. The fraternity eventually was charged with purchasing alcohol for eighty-six underage drinkers and pleaded no contest. This is an unfortunate freak accident but who is to say that it will not happen again? The fraternity that he wanted to become a part of caused his death. Yes, Benjamin Wynne's case was very extreme in its nature but heavy drinking is very much a part of the life that exists within fraternities and sororities. We cannot say that fraternities and sororities are the cause of all drinking-related problems on campus. The truth is that these organizations benefit a lot of students. Many colleges do not have fraternities and sororities but this does not make them different from any other school. They still have the same problems with alcohol and students are affected in the same ways. Take for instance Southwestern Oregon Community College, a college without fraternities and sororities. Many students at this college see alcohol at their parties and just like any other college, there are students cannot handle the problems that their drinking creates. Unfortunately, it can change their lives. A student at Southwestern Oregon Community College, who we will call Haley to protect her identity, is a prime example of this. How do we begin to solve this problem? There is obviously no one single person, no single cause that can be put to blame for this problem that exists at our colleges. Yet it must be realized that unfortunately, as wrong as it may be, alcohol becomes a part of many students' lives. Many American-College students go to parties where alcohol is present. But the majority of these students are underage, illegal drinkers according to our laws. The point being that trying to tell students not to drink and hoping that they will listen does not work very well. Richard P. Keeling, author of an article titled â€Å"Drinking in College: the Politics of Research and Prevention†, writes The very nature of the academy is to encourage exploration, discovery and the testing of new ideas and experiences. Besides, many college and university students are of, or achieve, legal drinking age while they are enrolled. Higher education, therefore, cannot have a credible policy the simple option available to secondary schools: â€Å"just say no. † It is not enough for institutions of higher learning to advocate (or â€Å"teach†) abstinence (51). Preventing alcohol abuse among students should be through education of the problems that come about from alcohol, not by just simply saying that drinking is wrong. Saying that it is wrong to drink before reaching the legal age will not prevent our young adults from abusing alcohol. The only outcome of this is that we will have young adults abusing alcohol legally, as soon as they reach the age of twenty-one. Abstinence does not educate our college students of the dangers that are caused by the use of alcohol; it only makes them ignorant to what can happen. Education can be in the form of health forums, increasing alcohol awareness on campus and the creation of prevention programs. These are all far superior alternatives to promoting abstinence from alcohol because it teaches students in a mature way. It provides them with knowledge and understanding instead of trying to tell them what to do. The fact is that there is no way to eliminate the use of alcohol thus our only prevention is to educate kids at our colleges and universities properly and maturely. Programs must be installed in every school in the United States to lead our future in the right direction. We must teach our youth that alcohol is a very habit-forming, addictive drug that has severe aftermaths. Students must understand what the risks are and what measures can be used to inform others of this problem. Clifford R. Browell, Chairman of the Department of Health, Physical Education, and Recreation at the Teachers College of Columbia University states, Education about alcohol deserves a prominent place in the school curriculum. Education is viewed as a process for the development of proper attitudes, habits, knowledges and skills that involve experiences of greatest value now, and to prepare youth for later happiness and success- â€Å"to live most and serve best. Emphasis on academic achievement seems to be running far too ahead of subject matter designed to make human beings better able to cope with problems associated with wholesome personal and family living and responsible citizenry. (168) Our education systems have placed an emphasis on learning in a classroom. Yet learning how to add numbers and how to write papers are not the only things we must learn to become mature. The point is that there are other things we must learn in a classroom. This includes the understanding of how alcohol can effect our futures. Alcoholism affects those around them. It is important to understand that alcohol can take over a person†s ability to function in a normal manner and that traditional habits can be broken with ease. Again it can be emphasized that there is not one student that is immune to this problem, it affects everyone. We, as a society, do not want our future generations to experience these problems. Our prospective lawyers, doctors, engineers and scientists lie within the youth that attend our colleges and universities. It has been shown that there definitely is a problem that lies within our systems of higher education and things must be done in order to stop this problem. Our future is within our young men and women and for many of them, their success starts with a proper education in order for them to achieve their goals and aspirations. As a society, we need to assist them in their path to prosperity and therefore recognizing the problems that can harm them. Alcohol will probably never disappear on our colleges and universities. Consequently, our primary concern should be to educate our students of the dangers that can affect them. Without this the problem will only get worse.

Product Differentiation Essay

Definition: Development or incorporation of attributes (such as benefits, price, quality, styling, service, etc.) that a product’s intended customers perceive to be different and desirable. Advertising and promotion of a product is based on its differentiating characteristics. Source: http://www.businessdictionary.com/definition/product-differentiation.html Today, the market is crowded with similar brands, clamoring for the attention of customers. In order for their brands to stand out, companies strive hard to make them appear different from competing brands. This is product differentiation. Product differentiation is an objective that a business may try to achieve through its marketing. Any business, must try to differentiate products from those of competitors, so as to gain a ‘competitive edge’ over them, thereby attracting more customers. This difference can be achieved by altering the product- making it better than that of the competitor’s or it can be ‘perceived’- such as a strong brand identity developed in the promotional campaign. Need for product differentiation:  usually customers cannot tell the difference between competing products- hence the need to differentiate developing a competitive advantage Focus and differentiation A product may have a lot of attributes, but it is essential to focus on only few of the attributes. Eg: Volvo-safety, BMW-performance : but it doesn’t mean that Volvo does not perform or BMW is not safe. They have just focused on those aspects of their products. Therefore their products will be differentiated on that particular attribute. If a product claims to be good at everything, you run the risk of consumers not believing what you say, even though you may have all those attributes. If a product is focused: 1) more credible 2) customers will think that they are as strong in other areas. What to differentiate: Easiest way to differentiate is on price, but it is least effective as competitors can always copy it easily.Example: Indian computer market included companies such as HCL and IBM. Then came Siva from sterling computers which sold it’s computers at a cheaper price. Therefore others followed suit, and then Siva had to further differentiate it’s product in order to attract customers as competing products were similarly priced. Hence, it is better to differentiate on other attributes such as- features, performance, reliability, reparability, design, style, performance and so on. Examples: 1) Blackberry- Differentiated by addition of BBM in their smart phones. Although other smart phones with IM platforms existed, Blackberry was the one of the first to offer this service to customers as a standard on it’s devices. Their competition did not have any such service at the time. This attracted customers. 2) Promise- People thought promise was different from other toothpastes as it had clove oil however even some other toothpastes had clove oil, but only Promise focused on this attribute and hence it was perceived as a differentiating characteristic. 3) Hero Honda motorcycles- differentiated in terms of fuel efficiency- â€Å"fill it shut it, forget it† Branding and Product differentiation Branding is one way of differentiating products and services. Industries like the garments and tobacco industries, for example, use branding very effectively as the products within these segments are often very similar and have little to distinguish themselves from each other. Branding helps to retain customer loyalty. Example: Smokers, are very particular about their brand and believe that no other brand can satisfy them. In an experiment, 300 smokers who were loyal to 3 major brands were given an unidentifiable sample of each brand to smoke and were asked to identify their own brand. The result: only 35% were able to identify the brands; and under the law of averages, pure guesses accounted for a third of correct identifications. The reason for this was that brands of cigarettes within the same category (menthol for example) differ very marginally in terms of strength, flavour  and taste, and it is difficult for a smoker to truly distinguish between them. The reason why a smoker is loyal to a particular brand is the advertisment. Eg: Charminar: â€Å"it takes charminar to satisfy a man like you† – reinforces that only Charminar can satisfy the man who smokes them! Product differentiation vs USP USP is not the same as Product differentiation. USP refers to advertising to communicate a product’s differentiation while Product differentiation is the process of describing the differences between products or services. Types of differentiation: Horizontal Differentiation: is by the customer’s preference/taste of certain characteristics of the product. (Same qualities/price, different style/taste/colour) Perceived value remains the same. (eg: different colours of lipsticks) Vertical: Products differ in some characteristic which all consumers agree is best. Based on quality. Prices differ as perceived value differs (eg: Different brands of lipstick: Mac, Lakme, Lipice) Horizontal differentiation is about consumers’ wants and preferences, while vertical differentiation focuses on the consumers’ willingness to pay for the quality. Remember: DO NOT offer wildly exaggerated differentiation that the market does not want. (eg: High priced men’s toilet soap â€Å"Aramusk† was unsuccessful due to price) DO NOT negate useful and expansive differentiation by under attending to other parts of the product- service package. The difference should be OVER AND ABOVE the MINIMUM expectations.†¨Example: Fancy hotels with poor service The product is not differentiated until the CUSTOMER understands the difference . The consumer perception is what matters.