Momentum trading and Business Cycle Risk: Evidence from BRIC Countries

1. Introduction. BRIC (Brazil, Russia, India and China) countries are growing at an alarming rate. This growth can be attributed to a number of factors including globalisation, financial liberalisation which has led to an increase in cross-border capital flows, technological developments and the internet. These countries are forecast to witness tremendous growth in the years ahead. The alarming growth of BRIC countries has attracted investors in search of suitable environments for portfolio diversification to consider BRIC countries as potential destinations for diversifying their portfolios. This paper presents a proposal to study the link between business cycles and momentum trading in the BRIC stock markets. The paper aims at understanding how business cycle risk affects momentum profits in BRIC countries. The study also seeks to provide an understanding of how momentum profits are affected by firm specific characteristics such as firm size and book-to-market ratios in BRIC countries. 2. Objectives of the study The objective of the study is to determine the impact of business cycle risk on momentum profits and thus momentum trading in BRIC countries. Research Questions The study aims at answering the following questions: Are there momentum profits in the stock markets of BRIC countries If so, what is the impact of Business Cycle risk on these profits What are the regulatory implications of momentum profits in BRIC countries Significance of the Study The study is significant to market regulators in that it will enable them design regulatory requirements aimed at reducing inefficiencies in BRIC stock markets thereby increasing their ability to attract capital. The study will also help foreign investors to gain more confidence in BRIC countries. Finally, the study will serve as a reference point for future researchers interested in conducting research on momentum profits. 5. Literature Review. A momentum trading strategy is a trading strategy that is designed based on past performance. The trading strategy is based on the assumption that â€Å"history will repeat itself†. A momentum trading strategy is therefore a strategy, which assumes that the return performance will persist in the medium term (Signos and Chelley, 1994). Momentum profits were first observed by Jegadeesh and Titman (1993). Accordingly, the study observed that stocks that performed well in a previous period also performed well in the current period, while those that performed poorly in the previous period also performed poorly in the current period. This means that a trading strategy that went long on previous winners while shorting previous losers would result in positive abnormal returns. In particular Jagadeesh and Titman (1993) observed the realisation of positive abnormal returns of 1 percent with the momentum strategy. In addition, a number of other studies have observed significant positive abnormal returns with the momentum trading strategy (e.g., Moskowitz and Grinblatt, 1999; Jegadeesh and Titman, 2001; Liu et al. (1999), Hong and Tonks, 2003; Gregory et al., 2001; Griffin et al., 2003; Gregory et al. 2001; Rouwenhorst 1998). The implication of the existence of such a Band Wagon (money making strategy) is that markets were not efficient. According to the weak- and semi-strong form efficient market hypotheses, all information available to the general public is already reflected in stock prices. This means that investors cannot realise superior risk adjusted returns by adopting a particular trading strategy such as the one proposed by momentum trading (Ross et al., 1999; Bodie et al., 2007). Attempts to attribute this finding to inefficient markets have been opposed by Fama and French (1993, 1995, 1996) who argued that observing momentum profits cannot be attributed to inefficient capital markets. Rather the single factor capital asset pricing model (CAPM) has been criticised for not being able to properly explain the variability of the cross-section of stock returns. This model suggests that stock market returns depend on a single factor (i.e., the return on the market portfolio). However, Fama and French (1993, 1995, 1996) contest this view and argue instead that stock returns could be explained by additional factors such as the book-to-market ratio and firm size. A three factor model is therefore proposed which takes into account the impact of size and book-to-market ratio and is found to perform better than the single factor CAPM (Fama and French, 1993, 1995, 1996). In addition, the three factor model was extended to a four-factor model to include a momentum factor w hich measures the difference between the return on portfolios of stocks that performed well in the previous period and the return on portfolios of stocks that performed poorly. Including a momentum factor in the three-factor model thus making it a four-factor model enabled the model to be able to explain the momentum profits observed in Jagadeesh and Titman (1993) and the other studies identified in the Literature. In summary, Fama and French argue that anomalies such as those observed in momentum trading cannot be attributed to inefficiencies in capital markets. Rather they should be attributed to inadequacies in the models that are used in explaining the cross-section of stock returns. Other explanations have been offered for the observation of momentum profits. According to behavioural finance theorist, momentum profits are a result of slow movement of information. Behavioural finance theorists are against market efficiency theorists who argue that information is rapidly reflected in stock prices. Among behavioural theorists, Hong and Stein (1999) argue that momentum profits can be attributed to slow diffusion of information across interested investors. This means that some investors receive information about stock prices earlier than others and as such appropriate action faster than others. By so doing, investors who have quick access to information are capable of making superior abnormal returns while those who do not have quick access to information tend not to make superior risk-adjusted returns by using such information as a basis of trading. Barberis et al. (1998) argues that momentum profits can be attributed to overreaction or underreaction of stock prices to news. The explanation from behavioural theorists conflict with those of Fama and French because behavioural theorists also suggest that there is nothing like an efficient market. Given the conflict between behavioural theorists and proponents of market efficiency, alternative explanations have been provided by recent studies. These studies argue that momentum profits are influenced by business cycle variables (e.g., Antoniou et al., 2007; Liew and Vassalou, 1999). Contrary to this view Griffen et al. (2002) in a study examining the link between business cycle variables and momentum profits across many countries argue that momentum profits are not a function of business cycle variables. While many studies have investigated the relationship between business cycle variables, most of these studies focus on developed markets with very little attention paid to emerging markets such as those of BRIC countries. Given the increasing role that BRIC countries play in the global economy, it is important to understand whether there are momentum profits in these countries as well as the role that business cycle risk has on momentum profits. This study is therefore a positive step toward contributing to the literature on momentum profits and business cycle risk by extending previous studies to stock markets in BRIC countries. 5. Research Methods This study will employ an econometric model to study the relationship between momentum profits and three sets of variables: (i) business cycle variables; (ii) firm specific variables (iii); and behavioural finance variables. The relationship between momentum profits and these variables can be represented using the following econometric model: (1) Where is a measure of the momentum profit of country i at in year t; is a vector of firm specific variables; is a vector of the past cumulative raw returns; and are the sensitivities of the momentum profits to changes in firm-specific variables and past cumulative returns respectively. The magnitude of the effect of these variables will be determined by testing the significance of the parameters at the 5% level of significance. In order to study business cycle variables, a model was developed by Chordia and Shivakumar (2002) and later extended by Antoniou et al. (2007). The model is an econometric model which establishes the relationship between momentum profits and business cycle variables. The model can be stated as follows: Where is the return (inclusive of dividends) of firm i in month t, BC is a vector of j (j=1-6) macroeconomic variables representing business cycle variables (DY, Rf, TERM, DEF, FX, and GDP), and is the error term of stock i in month t. DY is the dividend yield; Rf is the risk-free interest rate; DEF is the premium for default risk premium which is estimated as the difference between the yield on long-term corporate bonds and the yield on long-term government bonds; The term spread (TERM) is the difference between the yield on long-term government securities minus the yield on short-term government securities; FX is the foreign exchange rate; and GDP is the change in GDP (Antoniou et al., 2007). As earlier mentioned, stock returns depend on two factors: market factors and firm-specific factors. There is a trade-off relationship between the manner in which each group of factors affect stock returns. That is the higher the impact of firm-specific factors, the lower will be the impact of market factors and vice versa (Antoniou et al., 2007). To estimate equation (1) equations 3 has to be estimated and its parameters used as inputs to equation (2). After estimating equation (2) its parameters can then be used as inputs to equation (1). In this study, both time-series and cross-sectional regressions are used. Cross-sectional regressions are preferred over time series regressions because they help to avoid data-snooping biases which tend to occur in time-series regressions. In the time-series regressions, individual stocks are used which help to reduce the degree of loss of information that tends to occur when portfolios are used. Using first-pass time series regression, which allows the parameters to also fluctuate with firm-specific variables. The firm-specific factors include firm size and book-to-market ratio. The first-pass time-series regression can be stated as follows; is the return on firm i at time t, BC is a the vector of business cycle risk variables identified earlier, FF (Fama and French factors) are the firm-specific variables. Once equation (3) has been estimated, the parameters will be used as inputs to the second pass regression equation (4) below: Where is the output of equation (3). It is the unexplained variation from equation (3). These include the intercept coefficient and the residual term (+) of the regression equation (3); is a vector of firm characteristics, which include firm size and book-to-market ratio for security i at time t. represent the three sets of past cumulative raw returns (for m=1-3) over the second through third (RET 2-3), fourth through sixth (RET 4-6) and seventh through twelfth (RET 7-12) months prior to the current month t. (Antoniou et al. 2007). 6. Data Stock price data for stocks in the BRIC countries will be retrieved from the Thomson Financial Datastream Database. Data on dividend yields will also be retrieved from this database. The database also reports data on exchange rates. GDP, interest rate and exchange rate data will be retrieved from the IMF International Financial Statistics (IFS) database. Stock price data will be used to calculate the monthly return for each stock over the 60 monthly holding periods from January 2007 to December 2011. The returns will be used as inputs to the first-pass regression. References Griffin, John M., Martin, J. Spencer and Ji, Susan, â€Å"Momentum Investing and Business Cycle Risk: Evidence from Pole to Pole† (March 18, 2002). AFA 2003 Washington, DC Meetings; EFA 2002 Berlin Meetings Presented Paper. Available at SSRN: http://ssrn.com/abstract=291225 or DOI: 10.2139/ssrn.291225 Antoniou A., Lam H. Y.T., Paudyal K. (2007). Profitability of momentum strategies in international markets: The role of business cycle variables and behavioural biases. Journal of Banking & Finance volume 31, issue 3, pp. 955-972. Liew, Jimmy K.yung Soo and Vassalou, Maria, (1999). â€Å"Can Book-to-Market, Size, and Momentum Be Risk Factors That Predict Economic Growth?† Available at SSRN: http://ssrn.com/abstract=159293 or DOI: 10.2139/ssrn.159293 Rouwenhorst, K.G. (1998). International momentum strategies, Journal of Finance 53, pp. 267–284. Wu, X. (2002). A conditional multifactor analysis of return momentum, Journal of Banking and Finance 26 (2002), pp. 1675–1696 Jegadeesh N., Titman S. (1998). Returns to buying winners and selling losers: Implications for market efficiency, Journal of Finance 48, pp. 65–91. Barberis N., Shleifer A., Vishny R.W.(1998). A model of investor sentiment, Journal of Financial Economics 49, pp. 307–343. Fama E.F., French K.R. (1996). Multifactor explanations of asset pricing anomalies, Journal of Finance 51 (1996), pp. 55–84. Hong H., Stein J.C. (1999). A Unified Theory of Undereaction, Momentum Trading, and Overreaction in Asset Markets. Journal of Finance. Vol. 6, pp 2143-2184 Chelley-Steeley, Patricia and Siganos, Antonios, (2004). â€Å"Momentum Profits in Alternative Stock Market Structures†. Available at SSRN: http://ssrn.com/abstract=624583

Legal Process Paper: Discrimination

John, a 45 year old minority, is an employee in a private sector organization. He would like to file a discrimination complaint against his employer. What should he do? For many employees in the United States like John, there is a need to demystify the legal process so that they can take the right course of action. The U.S. Equal Employment Opportunity Commission (EEOC) avers that any individual with the belief that there has been a violation of his employment rights may file a charge of discrimination against the EEOC. In fact, aside from John himself, another individual, organization, or agency may file in his behalf so that John’s identity would be protected. It is imperative to understand how the litigation process in United States courts is referred to as an â€Å"adversarial† system. The adversarial nature is because of the reliance on the litigants to present their dispute before a neutral fact-finder, according to the US Courts website. By analogy, this neutral fact-finder for employment cases is the EEOC, by virtue of the powers vested in it by Title VII of the Civil Rights Act of 1964. On what ground is John planning to file his complaint? He can choose from several laws but for the purposes of this discussion, what may be relevant to John’s case are Title VII and the Age Discrimination and Employment Act. Title VII of The Civil Rights Act of 1964 This Act was landmark legislation in creating the Equal Employment Opportunity Commission, in eliminating race segregation and discrimination based on sex. The principle of â€Å"promotion from within† is invoked in equity since employers had already taken advantage of incumbent minority and female employees by using them in segregated jobs and often in depressed pay rates (Blumrosen, 1993, p. 74). The Age Discrimination in Employment Act of 1967 (ADEA) For persons aged 40 or over, the ADEA prohibits employment discrimination. Sec.623 provides for specific prohibitions against: discrimination in terms of hiring, promotions, wage and retiree health benefits(including a system to calculate the fees and ages); mandatory retirement; and publication of age preferences and limitations in advertisements for hiring. Equal Employment Opportunity Commission (EEOC) SEC. 705 of the Civil Rights Act of 1964 provides for the creation, composition, duties, quasi-judicial functions and powers and of the EEOC. Corollary to this is Sec. 706 on the prevention of the unlawful employment practices, formulating the procedure for filing civil actions under the Commission. Pursuant to this, John may file a charge in person or by mail at the EEOC office. He should fill out an intake questionnaire that contains all the information detailing his charge based on the statutes discussed above. John should also state a clear request for EEOC to act on his complaint. If John is a federal employee, he must refer to the Federal Sector Equal Opportunity Complaint Processing, which is also available on the EEOC website. What should John’s charge contain? He must state his name, address, telephone number, and the same details for the employer he is complaining against. If there were other employees in a similar situation, John must also allege that in the charge. He must describe the alleged violation and the date of its occurrence, subject to the grounds defined in the statutes above. Before he can file a lawsuit in court, this is the first step that John must accomplish. To protect his rights, John must ensure that he files the charge with the EEOC within 180 days or about six months from when he was discriminated against. If John anchors his charge on violation of the ADEA, state laws can extend this period to 300 days. If there is a local anti-discrimination law, there is also a 300 day extension. What is crucial is for John to contact EEOC as soon as he believes that his rights are being violated. Civil Litigation Process – State Level Sec. 706 refers to the process for John himself. Sec. 707 of Title VII refers to the functions of the Attorney General in determining reasonable cause and placing the complaint under the jurisdiction of the district courts. If reasonable cause is found, John’s case can be filed in Court subject to the rules on dispute resolution. The Attorney General should file a complaint: â€Å"(1) signed by him, (2) setting forth facts pertaining to such pattern or practice, and (3) requesting such relief†¦against the person or persons responsible for such pattern or practice, as he deems necessary†¦.† He may file with the clerk of court a request for three judges to hear the case with a certification that John’s case is of general public importance. An important point is on the matter of expediting proceedings. The Judicial Conference on Dispute Resolution (2007) asserts, before John can invoke formal procedures, all reasonable steps to resolve disputes via informal methods should be undertaken. Examples of these include counseling and/or mediation, prior to a formal hearing (p.2). According to the US Courts website, mediation is a flexible, nonbinding dispute resolution procedure in which a neutral third party facilitates negotiations between the parties. It saves time and money for the litigants — in this case, John and his employer. Also, Mechan (1997) wrote that a discovery case management plan is required at the initial pretrial conference between John and his employer (p.39) so that delays would be avoided. If mediation, counseling and dispute resolution did not prosper, then the chief judge must set the case for hearing. Civil Litigation Process – Supreme Court The Supreme Court has jurisdiction over appeals from the final judgment of the district court convened to hear the case of John, as requested by the Attorney General after the intake questionnaire and complaint filed at the EEOC. Subject to the rules on civil procedure, what is important is to guarantee that each party is not denied his day in Court. That, and only that, can help John resolve the legal issue of employment discrimination. References Blumrosen, Alfred W. Modern Law: The Law Transmission System and Equal Employment Opportunity. Wisconsin: U of Wisconsin P. 1993. Mecham, L. R. (1997, May). United States Courts: Judicial Conference of the United States. The Civil Justice Reform Act of 1990: Final Report on Alternative Proposals for Reduction of Cost and Delay, Assessment of Principles, Guidelines & Techniques. Retrieved November 26, 2007 US Congress. 42 U.S.C.  § 2000e [2] et seq. (1964). Title VII of the Civil Rights Act of 1964. Retrieved November 26, 2007 US Congress. 29 U.S.C.  § 621-624. (1967). The Age Discrimination in Employment Act of 1967. Retrieved November 26, 2007 from The U.S. Equal Employment Opportunity Commission. (Modified: 2007, September 11). Filing a Charge of Employment Discrimination. Retrieved   November 26, 2007, from http://www.eeoc.gov/charge/overview_charge_filing.html United States Courts. (  Ã‚   ) .Litigation Process. Retrieved November 26, 2007 United States Courts. (2006, July). In Resolving Disputes, Mediation Most Favored ADR Option in District Courts. Vol. 38, Number 7. Retrieved November 26, 2007 United States Courts. (2007, August 6). Statement of Work: Model Employment Dispute Resolution Plan Improvements. Retrieved November 26, 2007   

Exterminate All the Brutes Summary

Lindqvist has written more than thirty books of essays, aphorisms, autobiography, documentary prose, travel and reportage.. [4][3] He occasionally publishes articles in the Swedish press, writing for the cultural supplement of the largest Swedish daily, Dagens Nyheter, since 1950. [5] He is the recipient of several of Sweden's most prestigious literary and journalistic awards. His work is mostly non-fiction, including (and often transcending) several genres: essays, documentary prose, travel writing and reportages. 4] He is known for his works on developing nations in Africa and the Saharan countries, China, India, Latin America and Australia. In the 1960s, partly inspired by the works of Hermann Hesse, Linqvist spent two years in China. He became fascinated by the legend of the Tang dynasty painter, Wu Tao Tzu, who, when standing looking at a mural of a temple he had just completed, â€Å"suddenly clapped his hands and the temple gate opened. He went into his work and the gates clo sed behind him. [6] His later works, from the late 1980s, tend to focus on the subjects of European imperialism, colonialism, racism, genocide and war, analysing the place of these phenomena in Western thought, social history and ideology. These topics are not uncontroversial. In 1992, Lindqvist was embroiled in heated public debate, when his book Exterminate all the Brutes was attacked for its treatment of the Second World War and the Holocaust. 4] Opponents accused Lindqvist of reducing the extermination of the Jewish people to a question of economical and social forces, thereby disregarding the impact of Nazi ideology and anti-Semitism and what they viewed as the unique historical specificity of the Holocaust. [4] Some of the harshest attacks were launched by Per Ahlmark, who declared Lindqvist to be a â€Å"Holocaust revisionist†. This prompted a furious response by Lindqvist, who considered it a defamatory smear — at no point had he ever called into question the N azi responsibility for, or the number of dead in, the Holocaust.Regarding the original dispute, Lindqvist retorted that his main argument was correct: the Nazi quest for Lebensraum had at its core been an application of the expansionist and racist principles of imperialism and colonialism, but for the first time applied against fellow Europeans rather than against the distant and dehumanized peoples of the Third World. [4] However, he agreed that the long tradition of anti-Semitism in European and Christian thought had given the anti-Jewish campaign of the Nazis a further ideological dimension, and amended later editions of the book to better reflect this. [4]

Systems modelling theory Essay Example | Topics and Well Written Essays - 1000 words

Systems modelling theory - Essay Example In this scenario, a system can be used to denote different entities such as software system or its different parts, hardware system, or it can be a combination of both and the relationships between these parts. Hence, a system model can be recognized as a skeletal model of the system. In addition, system modelling provides an excellent support throughout the development and maintenance large and complex systems by paying a great deal of attention to the system development phase. In this scenario, the basic thought is to capture unstable or complex elements of a design within different parts through appropriately designed interfaces showing how each part communicates with its surroundings. Later on, these separated parts are combined in order to develop a complete system (Kresken, 1996; Pidd, 2004, p. 14). It is an admitted fact that systems modelling theory is capable of improving systems’ performance and reliability and minimizing systems development expenses as it makes the system development process very simple. For instance, it allows us to make use of previously developed components and routines to develop new systems. It also allows us to make changes to systems according to changing requirements for instance platform changes and functional enhancement, and to completely understand systems. Hence, we can say that systems modelling theory allows us to deal with a wide variety of requirements as it offers a set of tools like that consistency checkers, helps with documentation of the system and even we can also use it in the design stage of system development. To cut a long story short, system modelling technique is utilized to make sure that a developing component of software develops in a constant way and that it simplifies the process of combining different software parts (Kresken, 1996; Pidd, 2004, p. 14). In addition, in order to model a system there is need of a system modelling language (this language can be either textual and/or diagrammatic) and a theoretical structure. In fact, at the present there are many tools available that support system development through systems modeling theory. The majority of these tools use textual notations such as prose or tables, diagrammatic notations like graphs. Additionally, these diagrams use different symbols to symbolize the components of the system for instance objects, entities, and groups of objects, and a wide variety of other symbols representing the relationships between these components. In the past few years, four major theoretical structures have emerged: (Kresken, 1996; Pidd, 2004, p. 14) 1. Design Methods Design methods are based on a set of three components a concept, a language, and a design process. In this scenario, the concept outlines the modules of a program that are to be symbolized by the parts of the system model. On the other hand, the language defines the system model. Additionally, the system designer would have to follow a step-by-step procedure in order to compile design of the system in accordance with the software lifecycle. Moreover, there are many design methods which can be used for different purposes such as task design that is particularly developed for dealing with processes and their interactions, and synchronized systems design (Kresken, 1996; P

Human rights in armed conflict and the relationship between Essay

Human rights in armed conflict and the relationship between international criminal law and international use of force, and the r - Essay Example This paper will examine the legal framework within which the human rights of individuals and territorial rights of nations around the world is critically examined. The paper will examine the research question, the reconciliation of national sovereignty and non-intervention with humanitarian intervention to preserve human rights. To this end, the research will examine the position of national sovereignty and the prevention of military intervention as posited by UN law against humanitarian interventions. This will involve a critique of international laws and the prevention of military intervention. The limits of military intervention in areas like humanitarian intervention and the right to protect as defined in international law and its justification for intervention. International Law Against Interventions The United Nations was formed in 1945 as a response to the large scale human rights violations and destruction that came with World War II1. The primary essence of the UN was to ens ure that nations were created and structured in a way and manner that they would serve the real and true interests of the citizens and people it serves, not interest groups and individuals who had selfish interests. The United Nations came up with different views and different efforts to prevent foreign aggression and international wars that could potentially destroy nations and cause large-scale wars and destruction. This was done through the formation of the UN charter that created a context of a â€Å"family of nations† that were required to deal with issues and matters according to universal standards preserved by the United Nations which became the basis for international law and the foundation of international relations2. One of the approaches for achieving international peace was through a system of guaranteeing the rights of different nations around the world. This way, there was the guarantee that foreign nations could not just invade weaker nations as it was in the two World Wars. The two World Wars and other wars that created major regional and continental destabilization like the Napoleonic wars were because nations rose up against other nations. So the UN found it necessary to create laws that were meant to negate and prevent other nations from attaching others. Some of the core rules and core regulations of the UN were integrated into the UN Charter. The UN Charter was meant to create the framework for the regulation of nations. Thus, Article 1 of the UN Charter set the preamble of the United Nations, its composition and values. However, Article 2 moved to set out the core and fundamental principles that defined the UN. Article 2(4) of the UN stated explicitly that: â€Å"All Members shall refrain in their international relations from the threat or use of force against the territorial integrity or political independence of any state, or in any other manner inconsistent with the Purposes of the United Nations†3 This article indicates that the UN renders international aggression by one nation against another through the use of force as illegal. This is because the UN needed a framework to define the interactions of nations. Hence, the article makes it illegal and wrong for any nation to rise against another through military force or violence. Another angle through which Article 2(4) can be critiqued is on the grounds of preserving the territorial sovereignty of

QUESTIONS Thoroughly read Chapters 7 through 10 of the Policy Issues Essay

QUESTIONS Thoroughly read Chapters 7 through 10 of the Policy Issues textbook, and then prepare an annotated bibliography for - Essay Example Scientific research and understanding creates practical technological applications which in turn require institutional implementation and management which in turn lead to more technological change as specific implementations are made which in turn leads to more scientific change. Therefore, science and technology policy have to bear in mind that innovation is more complex than a simple model of science and technology leading to innovation. Metcalfe moves on to distinguish between types of policy and innovation, such as academic scientific research versus practical technology, and further notes that despite their dialectical interrelationship, science and technology are different things. Finally, he ties this in with economic policy. Freeman, C. 2002, â€Å"National Systems of Innovation†, Policy Issues for Business, ed. Vivek Suneja, Sage Publications Ltd. Freeman expands on the analysis made by Metcalfe by noting that innovation is inherently dynamically social: No firm innov ates on their own, and technology and science are best done in systems of shared, free inquiry. Networks of governmental, scientific, educational, business and NGO innovators produce innovation over time. Freeman notes that the Friedrich list, a system whereby Germany specifically tied industrial and technological policy in the arena of education, was highly efficacious. He also notes that in Japan, R&D and business are tied together specifically, while in Russia, R&D and enterprise were often quite distinct. However, he does note that the Soviet Union's R&D and scientific research was not bad by any stretch of the imagination: They focused on arenas like mathematics, military innovation and space travel. This indicates that the priorities of national policy have direct and indirect results on atmospheres of innovation and creation. Freeman concludes by arguing a) regional and local factors will remain important in any technology and innovation policy no matter how globalized and in tegrated the world becomes, and b) Britain's experience should lead policy-makers to conclude that while learning by doing and interacting are important, innovations needs to be stressed at a systemic level. Porter, ME. 2002, â€Å"The Competitive Advantage of Nations†, Policy Issues for Business, ed. Vivek Suneja, Sage Publications Ltd. Porter continues in Freeman's vein by analyzing what makes nations competitively advantageous in the global marketplace. Strong investments in science and technology, a skilled workforce, government support and culture are all good elements, unsurprisingly, but Porter argues that in fact challenges can be opportunities. A country facing competitive challenge at home and abroad, difficult and selective customers, and aggressive suppliers will be highly effective if it can survive the challenges and weather the storm. Aside from noting the influence of national playing fields created by national policy, Porter also recommends that firms, even i f they are local or nationally oriented, should adopt a global perspective and strategy, and should move towards trying to sell under their brand name globally and control their business directly even on the global level rather than using middlemen. Porter also notes that, since markets change so rapidly, they are likely to obviate and make advantages obsolete, so companies need to treat even presently relevant advantages as soon likely to be obsolete

Day vs. Night Essay Example | Topics and Well Written Essays - 500 words

Day vs. Night - Essay Example In looking at these kinds of oppositions, it is sometimes helpful to discover the various ways in which the elements involved are similar in order to understand better about how they are actually different. When it comes to discussing ideas, we tend to try to lump things into a yes or no situation, black or white or day or night. When you look closer at the picture, though, there is often a lot more maybe, grey or dusk involved in the comparison. One opposition considered so opposite that they have nothing at all in common is the opposition of day and night. There are many ways in which day and night are similar. They are both required to make up a complete cycle of the earth for example. While the time period of one may be longer at one time of the year, it is generally shorter at another time so that the world is dark approximately half the time and light the other half the time. Both day and night are regulated in their duration by the rotation of the earth around the sun and are a natural part of the physical properties of the world. Life on earth has developed with a dependence upon these alternating cycles of light and darkness in order to survive. Some plants and animals depend upon the hours of sunlight to generate the energy they require to survive just as they require the hours of darkness as a time in which they are able to regenerate. However, different processes occur at night, making different plants and animals active during this period of time under the cover of darkness and rest during the daylight hours. Both day and n ight are bordered by periods of transition in which it is neither day nor night and they are both presided over by a heavenly body. Despite these similarities, though, it is true that there are at least as many differences between day and night as there are similarities. While day is presided over by the brilliant yellow light of the sun, the night is ruled by the reflected blue light of the moon. Although the

Littleton Manufacturing Case Study PowerPoint presentation Speech or

Littleton Manufacturing Case Study PowerPoint - Speech or Presentation Example These changes coupled with increased competition in the market affected Littleton manufacturing through Brooks industries dwindling financial performance (Whiteside, 1994). To address this issue, the management at Littleton manufacturing got concerned with addressing the deep lying problems that affected the company. The company decided to compute a human resources process improvement team-PIT, to outline the issues and second a corrective course of action. This paper will aim towards identifying the problems at Littleton and providing solutions that will help consolidate the company’s position in the market. Problems identified and their symptoms Complaints at different levels of the company’s plant arose over the issue of poor organizational communication at the company. With this as a sign of organizational problems at the company, the management sought help from students at a nearby faculty to asses the organizational communication at Littleton (Whiteside, 1994). Th e PIT team collected the results from the students and conducted an in-house analysis that identified six critical problem areas that the company was to address. The six problems get discussed below in separate paragraphs. The first problem identified was a lack of organizational unity at Littleton. The apparent lack of organizational unity got viewed through the disquiet shown by the workers who believed the fabrication side got overlooked over the newer components side (Whiteside, 1994). The components side had newer machines while the fabrication side had older machines that required frequent servicing yet they never got replaced. Workers also mentioned of the stringent working conditions in the fabrication side of the plant compared to the components side. The workers viewed the management of the components side as stringent while that of the components side appears flexible and relaxed. The workers observed that the two sides of the plant appeared to have different management s tyles. The second problem cited was a lack of consistency in the enforcement of rules and procedures within the different sides of the plant. Complaints arose from workers about the differences within the department and sides at the plant when enforcing rules and procedures. Evidence of this appeared when workers complained that some supervisors in the components side gave longer breaks compared to other supervisors in other departments. In the very components side, some supervisors allowed workers to leave as early as twenty minutes before quitting time (Whiteside, 1994). Inconsistencies also got cited in terms of application of punishments. Fighting in the plant would result to automatic dismissal, but there were two incidents where the culprits never got punished. Some employees mentioned of an incident where someone was caught smoking marijuana within the plant, but only got a written warning for such a misdemeanor. A lady also got suspended from work for three days for missing work due to doctor appointments for her child. However, an operator got no punishment for missing work regularly due to suspicions of drug or alcohol abuse. Another example of inconsistency in applying rules and procedures got viewed through the absenteeism levels from either side of the plant. The fabrication side had less than one percent absenteeism compared to the 2.2% recorded in the components

Efficts of Conflict and Conflict Resolution on Women and Children Essay

Efficts of Conflict and Conflict Resolution on Women and Children - Essay Example War has been known to cause massive losses in terms of both lives and property. Traditionally, it was the role of the men to venture into war since they were meant to be protectors of the social units in which they were found. The contemporary armed conflicts have incorporated the contribution of women and children as part of the war forces used against an enemy. But it should be noted that the contribution of women and children is significantly low as compared to the high numbers of men found in war. Both women and women are in most cases left home as the men venture out into war. At the same time the nature of war has changed its course with time from the fight targeting the military functions to that which has increasingly been targeting the civilians- a high percentage of which is made up of the women and the children. The warring factions have also intensified attacks directed against their enemies through physically and sexually abusing women and children as a way of punishing their enemies. In this sense then, the women and children have been the victims of various war consequences that they find themselves torn in between. The overall and most obvious war consequences are the destruction of both lives and property since apparently death toll resulting from war related killings increase. Another common war characteristic is the burning up of property as a way of economically destroying the enemy. There are other war consequences that affect the women and children as well. They include; rapes, psychological disturbances, recruit of the children into the military, maiming and disabling, displacement of masses from their homes, transmission of diseases like the sexually transmitted illnesses, and economic severance among other consequences. Men make the largest number of combatants. It is quite interesting that in times when peace is sought after following a period of war, most of the efforts made by governments and other bodies in the decision making level often address the effects the combatants; attempting to ward them off and trying to disarm them in an attempt to restore peace within the war torn are as. The women and children who in turn make the largest number of the victims are often ignored in peace initiatives. The vulnerability associated with these two groups of people often causes their victimization as the following section indicates. Vulnerability of women The international committee of the Red Cross identifies vulnerability in women as stemming from various phenomena. As a result of their biological characteristics and attention for special needs, some categories of women may be considered as vulnerable. These categories include expectant mothers, nursing mothers or women with maternity cases. All the above categories of vulnerable women have their needs stemming from their specific health, biological or hygiene needs. This can be considered as a form of vulnerability associated with the women folk specifically because only women have the potential of delving into these situations that make them vulnerable. This is facilitated by their reproductive roles of conceiving and giving birth to children. Otherwise the law doesn't recognize grown up women as a group of vulnerable people unless they are in any of the above mentioned categories. The social-cultural beliefs found in a given community often mark the kind of relationships found among the people found within such cultural settings. Most of the

Profit Maximization Essay Example for Free

Profit Maximization Essay Details Pixie ( £ per unit) Elf ( £ per unit) Queen ( £ per unit) King ( £ per unit) Selling Price 111 98 122 326 Variable Costs: Direct Materials 25 35 22 25 Direct Labor 5 5 5 5 Variable Overheads 17 18 15 16 47 58 42 46 Contribution 64 40 80 280 Type 1 Labor 8 6 Type 2 Labor 10 10 Type 3 Labor 5 25 Contribution per type 1 labor 8 6.67 Contribution per type 2 labor 8 28 Contribution per type 3 labor 16 11.2 Details Ranking Type 1 Type 2 Type 3 Pixie 1 N/A N/A Elf 2 N/A N/A Queens N/A 2 1 King N/A 1 2 Planned Production Schedule Elf = no production (no hours of type 1 labor available) King = 1,000 units (full production) Queen = no production (no hours of type 3 labor available) Profit Statement Pixie ( £ per unit) King ( £ per unit) Total ( £ per unit) Sales 111,000 326,000 437,000 Variable Costs: Direct Materials 25,000 25,000 50,000 Direct Labor 40,000 175,000 215,000 Variable Overhead 17,000 16,000 33,000 Total Variable Costs 82,000 216,000 298,000 Contribution 29,000 110,000 139,000 Fixed Costs 15,000 Net Profit 124,000 Direct Labor King: Type 2 = 1,000 units x 10 hours per unit x  £5 =   Ã‚  Ã‚  Ã‚  Ã‚    £50,000 Type 3 = 1,000 units x 25 hours per unit x  £5 =  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚    £125,000 Total Direct Labor Cost  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‚    £175,000 b) Under instances of limiting factors, like labor in this case, profit maximization is determined by deducing the production that will provide the highest contribution per limiting factor (Drury C. 1996, p 265). This is based on the premise that optimum utilization of resources will stem from producing the products that provide the highest profit in terms of the limited resource used. The main limitation of the aforementioned approach is that it solely considers financial factors.   In a business environment, there are qualitative features, which also significantly affect the organization.   For instance, products Elf and Queen might be loss leaders.   These are products, they generate low profits and sometimes-even losses, but are key variables in boosting the sales of other products (Kotler P. et al 2004, p 378).   For example, blank CDs and DVDs generated few profits to retailers of computer equipment.   However, they attract clients, who may eventually purchase hardware products that generated greater income. References:    Drury C. (1996). Management and Cost Accounting. Fourth Edition.   New York: International Thomson Business Press. Kotler P.; Armstrong A. (2004). Principles of Marketing. Tenth Edition. New Jersey: Pearson Education Incorporation.

Impact of the European Paediatric Life Support Course

Impact of the European Paediatric Life Support Course Abstract Background: Even though anaesthetists do not resuscitate children on a daily basis, they need to perform paediatric life support regularly due to their different duties. As the knowledge of international guidelines varies widely, highly standardized European Paediatric Life Support (EPLS) courses have been introduced to improve standards of care. This national survey among Austrian anaesthetists and EPLS course participants evaluated the impact of this course at the end of the guideline period 2005-2010. Methods: After approval by the institutional review board an online survey about paediatric resuscitation guidelines was sent to EPLS course participants of the guideline period 2005 (EPLS group) and members of the Austrian Society of Anaesthesia, Resuscitation and Intensive Care (-GARI) two weeks before publication of the resuscitations guidelines 2010. Respondents without an EPLS course were assigned to the non-EPLS group. Results: Of 333 respondents 247 finished the survey. One hundred eighty five persons were assigned to EPLS group and 62 to the non-EPLS group. Members of the EPLS group performed significantly better than the non-EPLS group (76Â ±19% correct answers EPLS group vs. 63Â ±18% correct answers non-EPLS group, p