Learning Temperance in Homer’s Odyssey Essay - 1522 Words

Learning Temperance in Homer’s Odyssey Being a work of importance in the western tradition of philosophy, The Odyssey is much more than some play written by Homer ages ago. Though The Odyssey certainly is a dramatic work and partially intended for entertainment, it also provides insight into the ways of thinking of the time it has been written in. Aside from illustrating the perspective of early Greek philosophy The Odyssey also raises certain questions pertaining to virtues and the morality of actions undertaken therein. Such questions and the pursuit of their answers may also lead to a better understanding of the actions taken in present-day society and the human condition in general. One of the virtues that is present†¦show more content†¦Thus, the mention of temperance is to henceforth refer to that precise self-restraint in conduct, expression, and indulgence of the appetites. However, it is also to draw upon Aristotles notion of the mean. When it comes to moral virtues, Aristotle provides the concept o f a mean in order to determine how much or how little of a specific attribute is to be exhibited by a character so that the proper dosage may become a moral virtue. The deficiency or excess of the attribute in question thus determines the resulting character of the individual. In the instance of fear, a deficiency produces recklessness (Baird). This can be related to The Odyssey well by taking the encounter with the Kyklopes and the blinding of Polyphemos by Odysseus companions. If Odysseus were satisfied with the amount of food attained prior to Polyphemos return, and not be so greedy as to go and take the stores of the Kyklops too, he may have returned to Ithaka years before his actual homecoming. Such is the course of action taken by the man skilled in all ways of contending, as to bring upon him the anger of Poseidon throughout The Odyssey. On the other hand, the excess of fear yields cowardice, which is certainly not a characteristic of any skilled man in The Odyssey. The strive thus, is to find the mean between deficiency and excess. To temper the attribute of fear into

Course Outline of Production Operation Management Free Essays

ARID AGRICULTURE UNIVERSITY, RAWALPINDI MGT- 696 â€Å"Operations Management† BBA–6 (A B Sections) Spring 2013 Visiting Faculty Member:M. Javed Akhtar Ex- General Manager Training, OPF Ex-Director Gneral, NAVTEC Head Office Prime Minister’s Secretariat jam431@gmail. com Office Contact/Timings: 051-2541041 (direct), 0300-5338951(Cell) (0800 Hrs. We will write a custom essay sample on Course Outline of Production Operation Management or any similar topic only for you Order Now to 1500 Hrs. ) Course Coordinator Mr. Irfanullah Munir The Prologue This three credit Hrs. course is designed for services and manufacturing sectors, basically, meant for defining the real meaning of the Operations Management in any given organization. The primary objective of the course is to provide the students with an understanding of the theories, models, problems, issues, and techniques related to the management of operations both in manufacturing and service sectors. This includes analyses of various tasks performed and decisions made by operation managers, both tactically and strategically. The operations function plays a vital role in achieving a company’s strategic plans. Since the operations function produces the goods and provides the services, it typically involves the greatest portion of the company mployees and is responsible for a large portion of the firm’s capital assets. It has a major impact on quality and is often the visible face of company with which the customer must deal. Customer service, product/service, quality issues, and the effectiveness of many customer interactions are all operations activities. In the face of increased international competition, Pakistani firms have lost market share and have not responded by working to improve both their operating efficiencies and the quality of their goods and services. With this renewed emphasis on operations, it has become increasingly important that students have an understanding of operations management and its significance to the success of the companies where they will work. To gain a competitive edge, Pakistani organizations need sound production/operations strategies. This is particularly true today, given the pressures of global competition and the need to satisfy ever more demanding customers. Operations functions appear as a powerful tool for achieving organizational objectives and strategies. Learning Objectives The aim of this course is to provide a clear, well-structured and interesting treatment of Production/Operations Management as it applies to a variety of businesses and organizations. The course is intended to provide both a logical path through the activities of operations management and an understanding of the strategic context in which operations managers’ work. †¢ Strategic in its perspective of operations management’s contribution to the organization’s long-term success. We are unambiguous in treating the operation function as being at the center to most organization’s drive to improve their competitiveness. Conceptual in the way it explains the reasons why operations managers need to take decisions in each activity. Although some quantitative techniques are included, their primary aim is to illustrate the underlying principles of operation decisions. †¢ Comprehensive in its coverage of the significant ideas and issues which are relevant to most types of operations. †¢ Practical in the sense that the issues and difficulties in making operations management decisions in practice are discussed, and generally the treatment of topics reflects actual operations practice. This course is practical also that Case Exercise illustrating the approaches taken by actual companies are used to illustrate operations issues. Attendance Policy As you may all know very well by this time that the University (FUU) adheres to very strict attendance policy (i. e. minimum 75% mandatory attendance). As usual roll will be taken at the beginning of each class meeting. No one will be allowed to enter the classroom five minutes after the class starting time since it cause interruptions in the class activities. Professional conduct is expected throughout the course. Besides this, It is assumed that you have read all the policies and guidelines of the University regarding attendance, academic dishonesty, deadlines and so on and so forth Team Work There will be substantial Team work in this class. This is the need of today’s corporate world, and we have to learn how to pull our right slack while working in teams. Instructor as well as fellow team members, at end of the course, will evaluate each team member. Part of the grade of the team project(s) will be dependent on peer evaluations which is only for the developmental purposes and will be kept strictly confidential. Unannounced Quizzes There will be minimum four unannounced quizzes taken randomly throughout this course. Three best will be considered for grading. These quizzes will be handed out in the beginning of the class meetings and if you are late in class, you will miss that quiz. There are absolutely no make ups for these quizzes. Case Studies There may be cases assigned to groups and these cases will be resolved in team efforts. A short written report will be required along with the presentation of that case. Presenters will play the role of Management Consultants and the class will act as Board of Directors and will interact with the consultants at the end of the presentation to express their concerns and opinions. Term Project or Book Review You will be given case study or in lieu thereof book reviews relevant to the field of OM, Subject to availability of time. When awarded, details will be discussed in the class. Industrial Visit/Seminar An industrial visit and/or a seminar relating to the subject matter would be arranged. Grade Allocation and Breakdown |Weightage suggested by DBA |Weightage suggested by Teacher| |Unannounced quizzes/Book Review |10% |10% | |Assignment(s) / presentation / participation/discipline |15% |15% | |Midterm Examination |25% |25% | |Terminal / Final Examination |50% |50% | Course Contours and Schedule ? Current Academic Session 4th March 2013 onward ? Class Work32 Lectures (16 weeks) Teaching Time 48Hrs. 1st Week: ? Production and Operations Management: An Ov erview 2nd Week: ? Production System : Issues and Environment 3rd Week: ? Total Quality Management 4th Week: ? Need and Importance of Forecasting 5th Week: ? Qualitative Methods of Forecasting 6th Week: ? Quantitative Methods of Forecasting 7th week: ? Capacity Planning 8th Week: ? Facilities Planning ? Mid-term Examination 9th Week: ? Work System Design 10th Week: ? Managing Information for Operations System 11th Week: ? Aggregate Production Planning 12th Week: ? Just-in-Time (JIT) 13th Week: ? Scheduling Sequencing 14th Week: ? Issues in Materials Management 15th Week: Independent Dependent Demand Inventory System 16th Week: ? Total Productive Maintenance (TPM)/Computers in OM ** ? Final Examination (date to be announced later on) Recommended Readings Supplementary Readings | | IMPORTANT NOTE: ? The course outline is subject to change to a tune of about 10% if need arise. ? ** Subject to availability of time, the topics of â€Å"Advanced Manufacturing Systems† and â€Å" Computers in Operations Management† will also be covered. ———————– Issues in Production/ Operations Management Forecasting Operations System Design Planning Scheduling Materials Planning Emerging Issues in OM** How to cite Course Outline of Production Operation Management, Essay examples

Provided Various Advantages To The Society †Myassignmenthelp.Com

Question: Discuss About The Provided Various Advantages To The Society? Answer: Introduction Cyber terrorism is a common word in modern world. The utilization of Internet has provided various advantages to the society. At the same time, this Internet has also turned out to be a terror for the society. All kinds of crime in todays world are conducted through Internet (Ahmad Yunos, 2012). Cyber terrorism can be defined as the violent and cruel acts that are conducted for threatening or harming an individual or sometimes an entire nation. This is done by using the Internet to disrupt the networks of computer or to conduct various terrorist activities. These are done deliberately with the intention of causing harm. The following report outlines a brief discussion on the cyber terrorism. It provides descriptions about the problems, challenges and relevant technologies. The report gives a brief description about the impact of cyber terrorism in the modern world. The lesson that can be learnt from the discussions is also mentioned here. The description is provided in the following paragraphs. Cyber Terrorism Cyber terrorism is the utilization of the information and communications technology or ICT and computer systems to generate dangerous disruption and severe fear in the cyber world (Hua Bapna, 2013). The utilization of Internet has provided various advantages to the society. At the same time, this Internet has also turned out to be a terror for the society. All kinds of crime in todays world are conducted through Internet (Awan Blakemore, 2016). Cyber terrorism can be defined as the violent and cruel acts that are conducted for threatening or harming an individual or sometimes an entire nation. This is caused by using the Internet. This is done intentionally with the intention of wrong deeds. Challenges Cyber terrorists attack and target those systems, which are completely operated and managed by computers (Taylor, Fritsch Liederbach, 2014). These systems include all the necessities of a society. The infrastructure of these systems include several utilities like the electricity and water supplies, finance, banking, transport systems, controlling of air traffic and many more. The other utilities that are attacked are the information technologies, supply networks and other physical facilities. These utilities are either destroyed or degraded for a certain period. This becomes a major challenge for the entire nation or state (Ahmad, Yunos Sahib, 2012). The terrorists break into the system and afterwards they take complete control of the system. The whole nation is affected through this type of attack. The cyber terrorism is a major challenge for all the citizens of a nation including the governing body. The major challenges of cyber terrorism include political challenge, legal challe nge, economic challenge and social challenge. This type of terrorist attacks affects the governing body or the political parties. The whole jurisdiction of a nation is well shaken, the moment such attacks occur. When the facilities are disrupted or stopped by the cyber terrorists, it creates a huge impact on the social and economic wellbeing of a nation (Awan, 2014). These challenges sometimes even turn out to be fatal and the nation and legal bodies are not able t control them. Problems There are several problems and issues that are related to cyber terrorism. The problems are as follows: Political Issue: This is the most dangerous problem of cyber terrorism. Most of the cyber attacks take place because of the act of revenge on the political parties, acting on the nation (Tehrani, Manap Taji, 2013). It is seen in various cases that political parties from other countries organize and hire cyber terrorists for attacking on any other nation. Inexpensive Infrastructure: This is another important issue in cyber terrorism. The weak infrastructure of any system opens the way for cyber terrorism and thus is affected severely. Simple Infrastructure: Simplicity of the infrastructure of any system is another issue of cyber terrorism. The terrorists can easily hack this type of systems and enter into it with the intention of terrorism (Uma Padmavathi, 2013). The infrastructure should be made somewhat complex so that the system cannot be hacked easily. Passwords: This is another problem for any information system. Passwords should be present in all systems and they should be updated periodically so that there exists no loopholes of hacking. Absence of Communication System for Government: This is again one of the most important problems of cyber terrorism. All governments should have systems for communication and cooperation (Ahmad Yunos, 2012). These system help in collection, distribution and sharing of all information related to security. Moreover, they detect the situation whenever there is a chance of cyber attack or a danger of such attacks. Lack of Adding and Revision of Legislation: Laws and regulations help a nation to meet its goals and objectives. The government should alter and modify the laws and rule periodically, especially for the criminal law, so that any terrorist will think twice before involving in cyber terrorism. Lack of International Cooperation: International cooperation helps a lot in case of cyber terrorism (Dawson, 2015). There is a restriction for all nations to conduct their search for terrorists. However, when they take help from international bodies, there is no limitation. Lack of international cooperation is another problem of cyber terrorism. Relevant Technologies Technologies are the most important things for any progress in modern world. They have provided several advantages to the world. However, at the same time they are the reason for threats of security in every aspect. (Ahmad, 2012) The most important technologies that welcome cyber terrorism in cyber world are as follows: i) Internet: This is the most important technology in todays world. Internet provides everything to the world. It has made the world smaller by providing the best applications. Similarly, in cyber terrorism, Internet is the most important technology required (Akhgar, Staniforth Bosco, 2014). Without Internet, the terrorists cannot do anything illegal. Everything is controlled, operated and managed by this Internet. ii) Mobile Phones: This is the second most important technology in modern world. Mobile phones has brought whole world in the hands of an individual. Any body can contact another person in fewer seconds (Eid, 2012). These phones are even used by the cyber terrorists for their illegal acts. They hack the phones of innocent citizens and utilize their identity for wrong deeds. Computer Systems: Internet is either operated through mobile phones or through several systems (Dawson, 2015). The cyber terrorists for conducting their terrorism and affecting other people utilize this technology. Impact of Cyber Terrorism Cyber terrorism creates an extremely strong impact on the social, economic, political and legal sectors of any nation. This type of terrorism affects the entire nation and all the citizens are shaken by this kind of terrorist attack. All fields are controlled by systems. These systems include all the necessities of a society (Jarvis, Macdonald Whiting, 2015). The infrastructure of these systems include several utilities like the electricity and water supplies, finance, banking, transport systems, controlling of air traffic and many more. The other utilities that are attacked are the information technologies, supply networks and other physical facilities. These utilities are either destroyed or degraded for a certain period of time. The main sufferers of this type of attacks are the citizens of the nation. The social sector of the country is affected (Bogdanoski Petreski, 2013). The second impact is on the economic sector. This type of terrorism mainly affects the economic sector of the nation. In many cases, it is seen that after attacking in a bank or organizations website, the terrorists are demanding ransom for their act. This affects a lot on the economic side of the country. The third impact is on the legal sector. All nations have their own rules and regulations. Whenever, this type of attack takes place, everybody blames the legislation of the country. The fourth impact is on the political sector of the country. Most of the cyber attacks take place because of the act of revenge on the political parties, acting on the nation (Bowman-Grieve, 2015). It is seen in various cases that political parties from other countries organize and hire cyber terrorists for attacking on any other nation. Most Important Lesson According to me, cyber terrorism is a dangerous crime that should be avoided and mitigated on the highest priority. I have got the lesson that any kind of breaching of data or harm caused to a nation is known as cyber terrorism. This has become a serious problem in modern cyber world. I have learnt that they are several challenges and issues of cyber terrorism like absence of legislation, lack of communication and cooperation agency and many more. I have also learnt that various technologies are used in this type of terrorism and there is various impact of these attacks. The most important lesson that I have learnt from the above discussions is that nobody should be involved in any cyber breaches or threats as this is illegal and lead the person to prison. Conclusion Therefore, from the above discussion it can be concluded that, cyber terrorism is one of the most vulnerable threat for cyber world. The utilization of Internet has provided various advantages to the society. At the same time, this Internet has also turned out to be a terror for the society. All kinds of crime in todays world are conducted through Internet. Cyber terrorism can be defined as the violent and cruel acts that are conducted for threatening or harming an individual or sometimes an entire nation. This is done by using the Internet to disrupt the networks of computer or to conduct various terrorist activities. These are done deliberately with the intention of causing harm. The above report provides a detailed discussion about the challenges, problems, relevant technologies and the applications to those technologies related to cyber terrorism. It also helps to understand the impact of this terrorism in the modern world. The report further provides the most important lesson th at can be learnt from this discussion. References Ahmad, R. (2012). Perception on cyber terrorism: A focus group discussion approach.Journal of Information Security, 2012,3, 231-237. Ahmad, R., Yunos, Z. (2012). A dynamic cyber terrorism framework.International Journal of Computer Science and Information Security,10(2), 149. Ahmad, R., Yunos, Z. (2012). The application of mixed method in developing a cyber terrorism framework.Journal of Information Security, 2012,. Ahmad, R., Yunos, Z., Sahib, S. (2012, June). Understanding cyber terrorism: The grounded theory method applied. InCyber Security, Cyber Warfare and Digital Forensic (CyberSec), 2012 International Conference on(pp. 323-328). IEEE. Akhgar, B., Staniforth, A., Bosco, F. (Eds.). (2014).Cyber crime and cyber terrorism investigator's handbook. Syngress. Awan, I. (2014). Debating the Term Cyber-terrorism: issues and problems.Internet Journal of Criminology. ISSN,2045(6743), 1-14. Awan, I., Blakemore, B. (Eds.). (2016).Policing cyber hate, cyber threats and cyber terrorism. Routledge. Bogdanoski, M., Petreski, D. (2013). Cyber terrorismglobal security threat.Contemporary Macedonian Defense-International Scientific Defense, Security and Peace Journal,13(24), 59-73. Bowman-Grieve, L. (2015). 5 Cyberterrorism and Moral Panics.Terrorism online: Politics, law and technology, 86. Dawson, M. (Ed.). (2015).New threats and countermeasures in digital crime and cyber terrorism. IGI Global. Eid, M. (2012). Cyber-terrorism and ethical journalism: A need for rationalism. InEthical Impact of Technological Advancements and Applications in Society(pp. 263-283). IGI Global. Hua, J., Bapna, S. (2013). The economic impact of cyber terrorism.The Journal of Strategic Information Systems,22(2), 175-186. Jarvis, L., Macdonald, S., Whiting, A. (2015). Constructing cyberterrorism as a security threat: a study of international news media coverage.Perspectives on Terrorism,9(1). Taylor, R. W., Fritsch, E. J., Liederbach, J. (2014).Digital crime and digital terrorism. Prentice Hall Press. Tehrani, P. M., Manap, N. A., Taji, H. (2013). Cyber terrorism challenges: The need for a global response to a multi-jurisdictional crime.Computer Law Security Review,29(3), 207-215. Uma, M., Padmavathi, G. (2013). A Survey on Various Cyber Attacks and their Classification.IJ Network Security,15(5), 390-396.

Ph Lab Report Sample

Ph Lab Report Paper By using a pH paper, indicator dyes and a pH meter, several tests will be conducted to check which one will result in a precise pH level reading. Materials and Methods Ph Paper. Get 5 beakers and label them A through E. Fill the beakers with 20 to 25 millimeters of the appropriate solutions and then cut a piece of pH paper at least one inch in length. Dip the pH paper into the solution and color coordinate with the pH chart it provides. Using indicator dyes. Get 2 sets of test tubes and the label them A through E. Fill the tubes with equal amounts of solution and then in only the first set of tubes, place 2 drops of Promptly Blue dye into each and make sure it mixes in well with the solutions. On the second set of tubes do the same but this time place 2 drops of Phenolphthalein into the solutions. PH meter. Get 5 small beakers and label them A through E. Half fill the small beakers with the appropriate solution as it was done with the prior experiment but this time a pH meter and a cabbage extract called intoxication will be used. Before continuing, the pH meter needs to be calibrated. Once calibrated, measure the pH level of beaker A until the meter gives the result of the solution. Once finished with beaker A, place the sensor stick into water, wipe the stick by using a Kim- wipe before you could continue to beaker B. The washing of the sensor stick deeds to be done before moving onto the next beaker for safety and to get an accurate reading. After testing all the beakers with the pH meter, add 2 drops of cabbage extract (intoxication) to each beaker and mix it well until there is a distinct color. We will write a custom essay sample on Ph Lab Report specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Ph Lab Report specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Ph Lab Report specifically for you FOR ONLY $16.38 $13.9/page Hire Writer By the pH reading that the pH meter provided, determine which solution from beakers A through E is a base or acid. PH of household products. Half fill 7 small beakers with Sprite, Vinegar, Dish detergent, Baking soda, Ammonia, Coke and Orange juice individually and equally measured. Place 2 drops of color extract (intoxication) in each beaker and make sure it mixes in well until there is a distinctive color. By comparing the colors to table 1 and 2 determine if the solutions are acidic, basic or neutral. Buffer. All 50 ml of distilled water into two small beakers. On one beaker, measure the distilled water with the pH meter and record the pH level. Carefully, added 1 drop of hydrochloric acid into the solution of distilled water until the pH dropped 1. 0 pH unit on the pH meter. Then, I clean the pH meter sensor stick with water and a Kim-wipe. On the other beaker, place an Alkali-Seltzer tablet into the solution of distilled water and let it sit until it fizzes out. Use the pH meter to measure the solution and recorded the initial pH reading. Next, gently swirl the beaker and slowly add up to 20 drops of hydrochloric acid until the pH drops to 1. 0 pH unit. Results Solution Color WI Promptly blue Color with Phenolphthalein 6 Cloudy White 9 Blue Pink c 5 Yellow 2 11 Slightly Darker Blue Dark Magenta Table 1: Consists of pH levels of each solutions, the result when added indicator dye Promptly blue into solutions, and the result when added indicator dye Phenolphthalein into solutions. By using the pH paper to measure the solutions A through E it would point out what substance is an acid and which one was basic. Also, by adding Promptly blue and Phenolphthalein afterwards to the solution it would indicate what color it would turn to when mixed into an acid and a base. Base 8. 93 Pastel green Neutral 7. 14 Very Pale Pink Acid/Base/Neutral pH Reading Color of Extract Acid 4. 26 Light Pink 2. 22 D Base 10. 05 Light green Table 2: Consists of color extract taken from a red cabbage for a natural indicator. The pH reading that was measured by using the pH meter and the result of the pH reading to determine whether the solution was acidic or basic. By first measuring the pH levels of solution A through E with a pH meter, it gives a numeric reading to pH balance to a solution. Next, add in a natural indicator called intoxication made from the pigment from a red cabbage into each solution and mixed it until there is a distinct color and recorded on the chart. Finally, by looking at the result of the pH reading level that was given from the pH meter, it will determine which solution is basic or acidic. Pale Pink Sprite Color with Extract Vinegar Cloudy Pastel Green No Change Dish Detergent Baking Soda Lime Green Ammonia Orange Juice Stayed the same but cloudy Slightly Lighter Brown Coke Table 3: Consists of the color results after the color extract were added to the solutions. Comparing the colors with other tables, the end result of the solutions being acidic, basic or neutral. By taking 7 small beakers and half filling it individually with the appropriate solutions, color extract was added to make out what color it will turn the solutions. This time, the tool of measurement to find out if the solutions were acidic, neutral or basic will not be pH paper or a pH meter. When given the color results, by the mixture of the solution and the extract, table one and two were seed to determine which solutions were acidic, neutral or basic. Water 6. 48 3. 3 1 drop Beaker Initial pH Final pH Drops HCI Added Alkali-Seltzer 6. 56 6. 22 20 drops Table 4: Consists of pH levels in distilled water solution and Alkali-Seltzer tablet in distilled water solution. Initial pH is the result of the reading from pH meter for both solutions and the final pH is the result from adding hydrochloric acid until pH drops 1. 0 unit. By measuring the pH levels from the distilled water sol ution with the pH meter, it gives a numeric reading for water which becomes the initial PH. Next, by add a drop of hydrochloric acid and gently swirling the beaker until the pH meter dropped 1. PH unit, then use the reading for the final pH result. The beaker with Alkali-Seltzer tablet and the distilled water solution was measured for its pH level and recorded the reading for the initial PH. Then, 20 drops were added and gently swirling the beaker to mix the solution and the hydrochloric acid and wait until the pH meter dropped 1. 0 pH unit. Finally, record the results in the final pH section. The pH scale. The pH scale goes from numbers 1 thru 14. One being acidic acidosis) and fourteen being basic (alkaline). A pH of 7 is neutral. Conclusion By using the pH paper, dye indicators and the pH meter as tools of measurement, it has helped to determine which is more precise for this study. The pH paper and the due indicators have flaws because it could be subject to human error. Even though the pH paper has a color chart provided, there is same color difference from light to dark variation, (Ex. Light orange, red-orange to orange). The color chart gives you a number on where in the pH level it would land on but could be misread by human error. The dye indicators have the similar results to the pH paper. This would be more attractive to human error because there is no color chart it could match to, so the human eye would be the judge to what color the solution turn to when the dye indicator were added. There are so many variation of one color it would be hard to determine what exact color the solutions transform to. The pH meter was the most precise tool of the three and it would give out the most precise measurements of the pH level of the substance. The pH meter is similar to a calculator or digital scale, enter the information and it does the calculation for the solution.

Free Essays on Research Paper

INTRODUCTION Self-control programs, in which one is taught to control one’s own behavior by devising antecedent and consequent events, have been gaining in popularity for quite some time now. A central aspect of these programs is self-reinforcement, in which a subject self-administers reinforcers dependent upon requisite performance. Self-reinforcement techniques have been shown to alter therapeutically a wide variety of behaviors, including studying, eating, depression and smoking, in both educational and clinical settings (Nelson, Hayes, Spong, Jarrett if the consequences are postponed, intermediate cues may be mislabeled as self-reinforcement. In a study conducted by Nelson, Hayes, Spong, Jarrett and McKnight (19... Free Essays on Research Paper Free Essays on Research Paper Omar Khayyam Born: 18 May 1048 in Nishapur, Persia (now Iran) Died: 4 Dec 1131 in Nishapur, Persia (now Iran) Click the picture above to see four larger pictures Previous (Chronologically) Next Biographies Index Previous (Alphabetically) Next Main index Omar Khayyam's full name was Ghiyath al-Din Abu'l-Fath Umar ibn Ibrahim Al-Nisaburi al-Khayyami. A literal translation of the name al-Khayyami (or al-Khayyam) means 'tent maker' and this may have been the trade of Ibrahim his father. Khayyam played on the meaning of his own name when he wrote:- Khayyam, who stitched the tents of science, Has fallen in grief's furnace and been suddenly burned, The shears of Fate have cut the tent ropes of his life, And the broker of Hope has sold him for nothing! The political events of the 11th century played a major role in the course of Khayyam's life. The Seljuq Turks were tribes that invaded southwestern Asia in the 11th century and eventually founded an empire that included Mesopotamia, Syria, Palestine, and most of Iran. The Seljuq occupied the grazing grounds of Khorasan and then, between 1038 and 1040, they conquered all of north-eastern Iran. The Seljuq ruler Toghrà ¯l Beg proclaimed himself sultan at Nishapur in 1038 and entered Baghdad in 1055. It was in this difficult unstable military empire, which also had religious problems as it attempted to establish an orthodox Muslim state, that Khayyam grew up. Khayyam studied philosophy at Naishapur and one of his fellow students wrote that he was:- ... endowed with sharpness of wit and the highest natural powers ... However, this was not an empire in which those of learning, even those as learned as Khayyam, found life easy unless they had the support of a ruler at one of the many courts. ... Free Essays on Research Paper INTRODUCTION Self-control programs, in which one is taught to control one’s own behavior by devising antecedent and consequent events, have been gaining in popularity for quite some time now. A central aspect of these programs is self-reinforcement, in which a subject self-administers reinforcers dependent upon requisite performance. Self-reinforcement techniques have been shown to alter therapeutically a wide variety of behaviors, including studying, eating, depression and smoking, in both educational and clinical settings (Nelson, Hayes, Spong, Jarrett if the consequences are postponed, intermediate cues may be mislabeled as self-reinforcement. In a study conducted by Nelson, Hayes, Spong, Jarrett and McKnight (19...

How To Develop An Effective Content Marketing Promotion Strategy

How To Develop An Effective Content Marketing Promotion Strategy If you want the content marketing strategy for your business to be successful, you can’t rely on developing great content alone. No matter what your content goals are, you need traffic to your content to achieve them. This is where effective content promotion comes into play. In this post, were going to look at five steps you can follow to promote each piece of content you create and get the best possible results from your content. How To Develop An Effective #ContentMarketing Promotion Strategy @sujanpatel Step 1: Optimize Your Content For Search In the long run, if you optimize your content properly, search engines will likely be the best source of traffic for your content. You don't have to think about search engine optimization while you are creating your content. As a matter of fact, it's best if you don't think about SEO until after you have crafted a great piece of content with your visitors in mind. It's best if you don't think about #SEO until after you've crafted great #content. @sujanpatel How to easily optimize your content for a  keyword. Once you have finished creating your content, you will want to optimize it for one keyword phrase. To do this, you can use Google's free AdWords Keyword Planner. Add a few keywords or keyword phrases that best represent your piece of content. Google's Keyword Planner can help you optimize your content so people looking for your stuff can actually find it. Once you have found the best keyword phrase for your piece of content, you will want to make sure it is included in the title, meta description, first paragraph, last paragraph, and images. As an example, let's look at this post. We started with "How To Develop an Effective Content Promotion Strategy" as the title. After using the Google AdWords Keyword Planner, we revised it to "How To Develop an Effective Content Marketing Promotion Strategy", which includes content marketing strategy, as that has a higher search volume. Note that while it's good to have all of the words for the keyword phrase you target together (such as content marketing strategy), it's not required. Those who don't search for content marketing strategy in quotes will get anything with those three words in the title in their search results. Here's an example of the top competition for the content marketing strategy keyword with a Google search engine results page. In addition to adding content marketing strategy to the title, we added it into the other areas mentioned, including the filenames of all of the images in the post. This optimization should help this post rank well for content marketing strategy in search engines. Choose one keyword, use it in headings, titles, images, and first and last sentences. #SEOStep 2: Optimize  Your Content For Social Sharing There are three ways to optimize your content for social sharing. 1. Offer  social sharing buttons. The first is to make sure that each page on your website has social sharing buttons. You can add them to your website's template files using the official code provided by networks like Facebook, Twitter, Google+, LinkedIn, and Pinterest. Or, for those using platforms such as WordPress, you can install plugins like Socialize or Flare.   2. Use awesome images. Next, you will want to have at least one great image per piece of content. When people share your content on social networks, most networks will pull a thumbnail image from your content to make it stand out in the news feed. If you don't add an image to your content, the shares of your content either won't have an image or will have an unrelated image from elsewhere on your website. 3. Implement open graph tags. Finally, you will want to implement open graph tags for your content. Open graph tags allow you to customize the way that your content is shared on social networks like Twitter, Facebook, and Pinterest. For example, this code for Twitter... ...will allow tweets from the page it is implemented upon to look like this: You can find the code you need to implement open graph tags in the developer's support pages for Twitter Cards, Facebook Open Graph, and Pinterest Rich Pins. Or, for WordPress users, you can install plugins like JM Twitter Cards and Facebook for simpler open graph tag implementation. Step 3: Share Your Content With Your Social Media Audiences Don't just leave it up to your visitors to share your content on social media. 1. Promote  your content on multiple social networks. Your fans and followers connect with your social pages and profiles for a reason. Share your content with all of your social media audiences. It might sound like overkill at first, but keep in mind that you have different fans and followers on each network. If you just tweet your content, your Facebook and LinkedIn only audiences might miss it.

Dell Computers Case Study Example | Topics and Well Written Essays - 4250 words

Dell Computers - Case Study Example According to Technical Business Research (TBR) Quarter 2, 2007 Corporate IT Buying Behavior & Customer Satisfaction Study: x86-based Servers, Dell rank first in customer satisfaction for standards based servers, beating even HP and IBM. According to TBR, "Dell's overall weighted score improved 1.1 percent sequentially, while HP and IBM declined by 1.5 and 0.8 percent, respectively. Dell was the only systems provider to show an improvement in TBR's latest study, with customer satisfaction scores increasing in eight of the nine attributes measured, including server management, phone support, delivery time, value and ease of doing business." (Dell Named No. 1 in Server Customer Satisfaction 2007). Literature Review Customer contentment and Dell: Customers are the ultimate judges and creators of success or failure of a company. They are the veritable force behind flourishing enterprises. In the area of selling computer and related products, they exert importance in areas of quality and service of product lines. Dell is a company which produces good quality products for millions of customers all over the world. In the words of the founder of Dell, Michael Dell - "Our business is about technology, yes. But it's also about operations and customer relationships." (Michael Dell quotes 2009). From the beginning he had a bright view about the customers' needs. He kept the price of the products to an affordable range and started giving choices to select the product parts of their interest. Customer contentment is always related to the quality of the product and the affordability. In case of consumer electronic goods, especially in computer and related products, support and after-sales service is of huge importance. It is indeed a challenging... This paper describes the history of creating the Dell computer and the use of it in UK. First and foremost, â€Å"Dell was founded in 1984 by Michael Dell on a simple concept: by selling computer systems directly to customers, we could best understand their needs and efficiently provide the most effective computing solutions to meet those needs.† Michael started his company when he was a student in University of Texas at Austin with a capital of $1,000. At that time he named his Company as PC’s Limited. He dropped out of school in order to concentrate fulltime on his business. During 1985, his company developed a personal computer with its own design. It was termed as Turbo PC and it was sold for less than $800.The company started providing custom assembled ordered units on the customers’ selection with lower prices than of the other branded PCs. Dell, Inc. has a strong market share in UK.. All the ranges of their products are sold in the UK market. Main products sold in UK are PCs, Laptops, Servers, Network Equipments and other peripheral devices. From the starting of Dell in UK, it gave wide publicity to its products in media. Affordability is the leading aspect it implements in marketing. All the customers are well educated and hence, the technical details are mentioned in the classifieds. As UK is a developed country, the customers have special interests in high end technology and design. As the time goes, the customers’ attention goes more towards the quality and performance, rather than its price.

The Strengths and Weaknesses of Several Definitions of Feminism Essay

The Strengths and Weaknesses of Several Definitions of Feminism - Essay Example Besides, feminism concept is also referred to equal opportunities for women in a society in terms of education, property, and employment among others2. In this regard, Cott (1986) signified that the feminist movements have assisted in providing equal rights as well as justice, within modern society and determining differences in terms of expediency. In this context, feminist movements have aided in building a different cultural order based on certain logic and tradition3. Highlighting the strengths and weaknesses of several definitions of feminism as described by the authors, feminism concepts can be recognized to have assisted women to understand their rights in a society better. On the contrary, several definitions of feminism initiated more negative arguments among the male members regarding women rights in a society, which can be considered as a weakness of the feminist movements. In this context, it can be identified that feminist movements have initiated a privilege for the women to maintain gender equality with male members in the modern civilization. Apart from this, feminist ideologies implied that the dominancy of the female members in a society should have gender equality, whereby feminist theories have assisted female members to attain the desired societal and professional identity4. Similarly, the feminist concept has introduced several legal bindings in the society in order to ensure the women’s rights in terms of property, voting and marriage among others. Moreover, feminist ideologies have offered reproductive rights to the women including the right of abortion and contraceptive., Simultaneously, feminist ideologies have ensured protection towards women concerning matters of violence and sexual harassment, benefitting female members of the society quite impressively.  

Doping in Sport and the AFL Policy on Drugs Essay Example for Free

Doping in Sport and the AFL Policy on Drugs Essay Drugs in sport What is it? Drugs in sport or doping is when an athlete takes performance enhancing drugs or any banned substance. The sports that have the most trouble with drugs are Weightlifting, cycling, badminton, boxing, track and field. These athletes take drugs so they can be the best in there sport. One of the most recent cases was American sprinter Marion Jones who won five gold medals in the 2000 Olympics at Sydney, since then she has been stripped of all her medals after admitting that she took performance enhancing drugs in 2007. She had lied in front of two Judges saying that she never had taken steroids. Another case was Australian Cricket hero Shane Warne who was banned for a year after taking diuretics. Another one was former West Coast Eagle champion, brownlow medallist, and premiership player Ben cousins who was banned from playing football for taking cocaine and other banned substance. What is a drug? A drug is a substance (other than food) that when taken into the body, produces a change in it. If this change helps the body it is referred to as a medicine. If this hange harms the body, it is referred to as a poison. I think drugs in sport is terrible because these are highly paid professionals who are role models to so many kids and they are taking drugs to make them better at there chosen sport. These athletes are respected by there country and in my opinion should never be allowed to compete in there sport again. Some reasons an athlete might use drugs are the effects of the drug, physical dependence, easily available or they might be dissatisfied with there performance or progress, the environment, pressure to win from coach, parent, edia, public, financial reward, unrealistic qualifying standards or performance expectation. This is a list of some prohibited substances and doping methods: Stimulants Anabolic agent Non-steroidal Diuretic Many different sports have different policies on drugs. The AFL policy has been under a lot of scrutiny lately. The policy is as follows test: First positive Players enter treatment/education program coordinated by an AFL medical officer. The result is confidential to those involved in the treatment. Second positive test: Dealt with by and AFL medical officer with a view to further educating, counselling and treating the player. Third positive test: Player is deemed to have breeched an AFL rule and will face the tribunal if found guilty player may be suspended between 0-12 matches Fourth Positive test: Player will face tribunal and be suspended for no less than 6 weeks. I think this policy is way to easy on the players because they have so many chances. I think the player should have one chance and then be kicked out of the AFL for at least a year. Doping in Sport and the AFL Policy on Drugs By amdeep

South and Southeast Asia Essay -- essays papers

South and Southeast Asia Introduction The region under scrutiny happens to be among the most impoverished countries in the world, though allowing for so much growth that is has made them among the fastest growing countries in the world. The region with all this potential is South and Southeast Asia, and the countries holding 40% of the world’s poor are Bangladesh, Thailand, Pakistan and India. How is it that South Asia has grown so much over the past decade with 35% of its men and 59% of its woman being illiterate? Or how is it that half a billion of the people in South Asia are living off less than a dollar a day? So much of the information I have found for this paper is hard to swallow, though I will try and tell it to you straight and in this sequence: 1. What is believed to be the beginning of the crisis that South Asia is faced with now? 2. Who is supporting growth and development in South Asia? 3. Through all this support, how much debt is being created? 4. What are individual weaknesses facing certain countries in South Asia? 5. Can these countries be of success in the long run? The beginning of the crisis Since July of 1997 Southeast Asia has been hit by an economic crisis of major proportion. The economic crisis was originally limited to Thailand’s financial sector, when the central bank of Thailand devalued its currency, the baht. Like so many other currencies the baht had been pegged to the all so valuable U.S. dollar to help ensure stability. Though because of the major success in the U.S. economy the dollar has been seen as strengthening, leading many investors to feel that the baht and many of the other currencies pegged to the dollar were overvalued. Because of this created concern many of the investors fearing an unstable currency chose to exchange it’s currency for dollars. As the confidence in the baht dwindled, companies operating in Southeast Asia scrambled to get rid of its currency as well. Thailand’s central bank was hoping that this devaluation would stop and eventually restore confidence in it’s currency, how would this happen of cours e? I would assume that Thailand was hoping for a lowering in the price of goods in dollar terms, which would make those products competitive in foreign markets. This in turn would attract new investments into the country. Though this did not happen, and a monsoon of loan def... ... from a larger standpoint while still keeping the topics small. I did this because currency is something that nearly every country has trouble controlling. Plus there are a lot of troubles that come with a collapsing currency, as far as market instability and fear of investing. This was just a few of the problems that effected every country used in this paper, every country that was spoken about was among the poorest countries in the world though still receiving recognition for being among the fastest growing countries in the world. That in it’s self is hard to explain; how would this happen to this specific region of the world. These are the types of questions that were attempted in this paper. The specific answers are not given in this paper however because I personally cannot answer them. But what it will take for these countries to succeed has been answered and the funding is there for them to do that. If the progress continues in the direction that all these countries are facing, it is possible for all these countries to survive and pull themselves out of poverty. Bibliography: www.worldbank.com www.state.gov/issues/economic/trade www.facts.com www.boi.go.th

Early childhood deprivation Essay

Early childhood deprivation varies from the areas of health, nutrition and education (Biller and Solomon, 1996). However various intonations have been put forward to improve children’s welfare that aim at promoting early childhood care and foster holistic development and realization of child’s potential. Early childhood deprivations hamper child’s development and thus killing the future viable generation. In this regard, there’s need to invest in children welfare. During early childhood, child’s deprivation has the most profound negative influence on child’s development in terms of physical, mental and social domains. In most cases of children deprivation, the children usually lack essential interventions responsible to promote healthy development, thus there is hardly any pre-existing normalcy. Although deprivation occurs in children across all human race; black or white, girls or boys, rich or poor, the worst form of deprivation occurs in children who come from economically poor background. The tangible impact of childhood deprivation is in terms of mental health damage since most incidences of deprivation are interpreted as threats to the child, thereby causing trauma. However, in extreme cases of deprivation in childhood the children are deprived off stimulation or nurture. Types of Deprivation Child deprivation during the tender age can be classified in terms of Absolute deprivation, Relative deprivation and Perceived deprivation. Absolute deprivation entails lack of or preventing the child from gaining access to absolute development needs such as food, water, protection touch of who without the children usually dies the challenge with absolute deprivation is how much quantity is enough for the infants. For instance, studies show that infants or children who are not touched usually develop â€Å"nonorganic failure to thrive† syndrome (Brooks-Gunn, J. et al. , 2004, p. 106) that make then refuse to eat and became suicidal. Additionally, touch is necessary for emotional bond for the child that is responsible for creation of brain patten to support interaction behaviors and form basic for later empathy development, therefore, abosute deprivation is critical especially to child development and sustainability. Relative deprivation described as lack of child’s developmental needs that are determined by subculture and culture in which the child resides. Unfortunately, developmental expectations in relation to children development usually changes overtime. For instance in United States of America it has been a norm culture that children at age of 6 years are ready and expected to enter the first grade in order to learn how to write, read and do basic mathematics. Unfortunately, research by Biller and Solomon (1996) indicates that 20-30% of all children are not ready by this time. Moreover culture also oblige the parents give special attention to their children in terms of facilitating celebrating children status like birthday in order to promote children social conscious development, therefore in circumstances where the culture through parents denies children typical opportunity which is considered essential for a healthy child development it becomes deprivation. Moreover, children worldwide live in varied living conditions with resources never been equitably distributed to all children depending on familial social, ethnic identity, social economic and county of origin, this inequity hampers children development physically, socially and mentally precisely most children who are deprived off relatively usually develop maternal depression, abuse and family violence. Perceived deprivation results from children’s and parents feeling that the children are deprived due to frustrated desires as opposed to unmet needs. For instance, in a family set up there is child rivalry because it is normal parents usually favor some children than others. As a result, the child that is not favored feels unwanted no matter how hard parents can convince them. For instance, studies show that children who are taken good care of after incidences of neglect, despite sufficient supply of food and emotional support, they tend to exhibit signs of mistrust due to perceived deprivation (Biller and Solomon, 1996). The causes of deprivation The causes of deprivation vary across populations and societies. However, the most causes are familiar such as low skills and education, membership in minority groups, undevelopment and unemployment, social isolate from society’s mainstream and persistent and interrogational transmission of poverty to tolerate this factor (Brooks-Gunn, J. et al. , 2004), studies reveal that children in neigh hood without deprivation signs exhibited good growth and development outcomes as opposed to those with signs of deprivation. However, there are a number of additional aspects that greatly contribute to childhood deprivation, child neglect in the welfare system is a common form of child neglect in us where parents are givers fail to give the child essential resources as food, medical care, shelter and clothing which endanger child wellbeing. Development impacts of Deprivation Response of children to deprivation varies from one individual to another in the sense that human beings are shaped by the interaction of their genetic predisposition with stimulation, nurture, threats and other ennental forces. It should be noted that infancy experiences of children have a profound and long term effect on mental, physical, social and emotional characteristics, therefore, when deprivation is chronically and insidious pervasive the results are diastoles irreparable intellectual deficits, chromic health problem, mental illness, physical disabilities (Biller and Solomon, 1996), emotional disturbances and behavioral problem. Conclusion The paper has discussed early childhood deprivation and its major dimensions and its related effects. Fortunately, the effects of early childhood deprivation are treatable (Brooks-Gunn, J. et al. , 2004) by placing deprived child on a long-term and well structured relationship where the child learn or relearn that positive social interaction to offset the negative impact. It is encouraging also that across US there are various programs and interventions that are aimed at ensuring those children and/or individual degraded by deprivation are returned to normalcy. Link to Articles 1. http://jech. bmj. com/cgi/content/full/62/7/599 (CNN article) 2. http://news. bbc. co. uk/2/hi/health/2180874. stm (BCC ) References 3. Biller, B. & Solomon, S. (1996). Child deprivation and maltreatment: Lexington, Lexington Books press. 4. Brooks-Gunn, J. et al. (2004). â€Å"Effect of Economic deprivation to early childhood development†: Journal of Child Development, 13, p. 214-219

Fashion, Fade and Craze in Adolesence

Fashion and teenagers!!! Fashion is a popular way of behaving which includes a popular style of clothes, hair, etc, at a particular period of time. Fashion began from the early stone age and lots of upheaval have occurred till now. Len the early age people used to be half naked and wear dresses made from animal skins, leaves etc. And carry different weapons like bows arrows, spear heads which resembles that they are following the fashionable trends present at that time.I was highly influenced by what French designer Coco Channel once said , â€Å"Fashion is not something that exists in dresses only. Fashion is in the sky, in the street, fashion has to do with ideas, the way we live, what is happening. â€Å"Fashion and our lives is interlaced with one another and it is reflected by our contemporary life activities. The teenagers are mostly attracted to the western fashion culture and they are triggered by the exotic western dresses like beautiful clothing etc.Students want to crea te the unique image and for them fashion is like a way to express their inner self and by having the latest clothing they want to look cool. Many of them think fashion helps them create an aural psychic influence and it pervades and highlights their resend in the surroundings. Teens are mostly influenced by the latest trends ,colorful designs outfits. And there wardrobe is full of different brands which like Giorgio Airman, Dior,Levis,Gucci,Louis Button, Denim .Both boys and girls awesomely like to wear casual dress and formal style will be used only in the serious environments like when having a ceremony or performing business meetings, official talks and seminars. Teenagers are mostly inspired and influenced by their celebrities, models and fashion media and the college boys and girls are also trying to leonine themselves. Their fashion icons are their all time favorites artists which teaches them how to innovate ,develop and create new stylish things and from them they also learn t that how to look the worlds from the new perspective. En of the teenager said that the role models provide encouragement to them for doing the right things in a friendly way.

The Business and Cultural Practices of Japan

The Business and Cultural Practices of Japan Introduction The rising rate of globalization has led to business activities to be a global affair. It is because of this globalization that any entrepreneur who wants to beat the global competition should familiarize themselves with the customs, norms and practices of the different countries they do business with. It is also important that the business protocol, communication and etiquette are put into consideration.Advertising We will write a custom research paper sample on The Business and Cultural Practices of Japan specifically for you for only $16.05 $11/page Learn More This becomes of essence due to the increased travelling in terms of doing business (Lipartito 32). Japan is no exception since it is one of the industrial countries in the world. Most countries of the world import most products from Japan because of her good reputation and the high quality products she produces. Japan’s economy is also at the top competing with countries like the United States of America which are known to be doing well economically worldwide. Geographic Description of Japan Population Japan has a population of 126,804,433 and is ranked 10th among all other countries in the world. Japans life expectancy is 82 years, but its population’s growth rate is declining at 0.242%. 66% of the total population lives in an urban area, and 99% both male and female are literate. GDP Japan is the third largest economy in the world after the United States and China. Its GDP (purchasing power parity) is $4.137 trillion and ranked 4th in the world. Japan entered into recession in 2008, its GDP – real growth rate is currently declining at rate of 5.3% and its GDP per capita is at $32,600. Its labor force is composed of 65.93 million and its unemployment rate is 5.1%. Political Orientation Japan government is parliamentary with a constitutional monarchy. It legal system is modeled after the European civil law systems with English-American i nfluence. Japans chief of state is Emperor Akihito, he has been in this position since January 1989. In June 4th of this year the National Diet of Japan also known as the bicameral legislature appointed Naoto Kan as prime minister, he is considered to be the head of government. Following legislative elections the leader of the majority party usually becomes prime minister; the monarchy is hereditary. Major Products Produced Japan is famous in the world for producing vehicles, electronics textiles and machinery. Others include fully processed food commodities, big vessels like ships just to mention but a few. It is known to be the largest exporter of the same products. Other significant facts Japan is located in eastern Asia, in a chain of islands between the North Pacific Ocean and the Sea of Japan. Its area can be compared as slightly smaller than the state of California. In 1941 Japan attacked the United States, this initiated Americas entry into World War II. When Japan lost in the Second World War it regained its strength and has become one of the most important economic powers in the world.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More For more than a decade Japan has been one of the most important markets overseas for the United States. Japan supplies many important products to firms such as Apple, IBM and Hewlett-Packard. Japan also plays a major role in UN peacekeeping operations, humanitarian relief and also in international election monitoring (Griffin 56). Japan’s Business Practices Japan is currently going through major human resources management changes. Traditional culturally influenced Japanese business practices are slowly shifting to more westernized business practices. To globally compete, many Japanese companies feel that they must not let cultural barriers continue to hinder Japan’s economical performance. Howev er, regardless of where Japanese business practices are headed in the future, cultural values and norms still highly influence Japan’s common business practices. Building business relationships in Japan is a business practice highly influenced by societal values and norms. Writing a letter of introduction, calling, or showing up uninvited to a firm is considered impolite and disrespectful. â€Å"One of the best ways of initiating a viable business relationship in Japan is to obtain a letter of introduction (shokaijo) from an introducer. A good introducer is a person respected and trusted by both parties involved. While these types of culturally influenced business practices are slowly fading from Japanese business philosophies, they are still recognized as polite ways of doing business. Japan’s highly relationship-oriented business practices go beyond initiating business, it is also noticeable in the way Japanese negotiate contractual terms and handle conflicts. Typic al Japanese negotiators are more concerned with reaching a general agreement and building a trusting relationship than specific contractual terms. Furthermore, Japanese business practices for conflict resolution are similar to the way they do other business practices. The Japanese prefer to settle business issues out of court through mutual consultation and mediation because most of the time, they have built a trusting relationship with the businessperson and would not want to be rude. Another business practice in Japan is the use of a lifetime employment system. The vast majority of companies in Japan still have this type of employment system where employees implicitly agree to work with the company for the duration of their career (MOFA 10). The Japanese lifetime employment system pays and promotes individuals based on a seniority system. Employees not performing to standard are moved to â€Å"easier† positions rather than being fired.Advertising We will write a cus tom research paper sample on The Business and Cultural Practices of Japan specifically for you for only $16.05 $11/page Learn More Outright firing of an employee would not traditionally be considered an option within Japanese organizations. However, with increasing globalization demands and the downturn of the economy, the lifetime employment and seniority systems are beginning to fade as more Japanese companies switch to performance-based payment and promotion options. While there are some advantages to the lifetime employment and seniority system, many Japanese companies are finding that they cannot compete without performance incentives. A lifetime employment system is advantageous because it promotes employee loyalty by providing job security. Furthermore, this system allows employees to build lasting relationships with supervisors and colleagues. However, Japanese companies have begun to switch from this philosophy to a more performance based, westernized empl oyment system. Promotions and salaries are increasingly becoming performance-based rather than based on seniority. Japanese business practices are highly related to their cultural beliefs and societal norms. However, globalization and the demand from other countries wanting to enter Japan’s markets, cultural influences are slowly fading away. Westernized business philosophies are creeping their way into Japan’s common business practices and will more than likely continue to shape the future of Japanese business practices. Hofstede’s dimensions in evaluating Japan’s cultural values Japan has somewhat a unique culture. Their culture is dramatically different from other Asian cultures, such as ones of China, Hong Kong, and Korea (Gross 1). For an organization to succeed in Japan one should be loyal and have a good relationship with the people around. Based on Hofstede’s cultural dimensions, Japan’s lowest ranking factor is Individualism. They a re more of a collectivist culture, which means that they value working in groups, as opposed to individually. The group, rather than the individual, is the fundamental unit of concern in businesses in Japan. People of Japan are very sociable, and place a great deal of importance upon the opinions of others. They work for intrinsic rewards, and harmony is considered more important than honesty Japan is pretty much right in the middle of the power distance index which is used to indicate the extent to which differences between people is perceived (Nishiyama 4). Therefore, some inequality and some equality exist between people in Japan. There are moderate gaps in authority, respect, and compensation.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The highest characteristic of Japan is that they strongly value. Masculinity versus femininity indicates how the roles of male and females are perceived. Since Japan has a very high Masculinity score, women’s values differ less among societies than men’s values. Also, people in Japan value assertiveness and competitiveness, as opposed to more modest and caring values that are more common among countries that are feminine (Smith 1). Japan also has a very high Uncertainty Avoidance Index. The UAI deals with how much a culture tolerates risk. Since Japan’s UAI is very high, this means that they try to avoid risky situations as much as possible. The members of Japan’s society feel uncomfortable when placed in novel, unknown, surprising, or just different from usual situations (Gorill 1). The corporate culture of Japan is very formal. They try to reduce the chances of amorphous situations by implementation of very laws and rules that are strict. The Japanese p eople tend to be very emotional and can be easily motivated unlike in other countries. Therefore any entrepreneur who would prefer to start a business in Japan needs to be very prepared and able to predict the outcome of the enterprise. Lastly, Japan’s culture has a high long-term orientation in terms of delivering its services to the population of Japan and the entire world. Their education systems favor this orientation together with the ethics they have in doing work. Comparison of Japan’s Practices to those of United States Business practices US managers often express leadership abilities and competence by dominating group discussions, whereas Japanese managers demonstrate leadership by silence. Japanese managers often encourage subordinates to participate and come up with acceptable solutions. In a business meeting, being silent has different meaning between United States and Japan. In United States, if a person does not talk during a meeting or conversation, that person expresses inability to communicate. Whereas in Japan, being silence indicates the person is thinking or increased conversation would oppose to harmonious (William 2). When American businesspeople arrive for a meeting, they first exchange some pleasantries, then get down to business, and follow by a well planned agenda that has been sent out to each party prior to the meeting (Dietterich 1). For Japan, the first meeting focuses on whether each party can trust each other rather than working on planned agenda. When Japanese say yes during a contract negotiation, it means â€Å"yes, I understand what is being said†. American often interprets them as â€Å"Yes, I agree with you†, so there are two different interpretations of the word yes. Hospitality is quite important in Japanese business culture. In order to build personal bonds and group harmony among participants, fancy meals and after hours entertainment are required. In United States, when executives are havin g a meal with the clients in fancy restaurants, this means they are showing their status and clout. In Japan, when organizations encounter bad news, it will informally communicate through one team member to another team member, whereas in the states, bad new will be delivered as soon as possible to the person in charge (Angelucci 2). In a union negotiation, US labor agreement is actually negotiated between a firm and a union through enforcement by the court of law. In addition, negotiations are relatively formal. On the other hand, collective bargaining is very rare in Japan, Unions and management always work together to come up with a mutual benefit. The Japanese hostile confrontation, disputes are settled through mutual agreement. Culture Practices Education in the States is quite different than Japan. In the States, primary and secondary schools guide the individuals to build up self reliance, creativity, and self esteem. In Japan, primary and secondary schools focus on preparing students to take a college entrance exam. Low context cultures include United States, â€Å"the speaker explicitly conveys the speaker’s message to the listener.† A high context cultures such as Japan, the words spoken require â€Å"cultural clues in order to understand what is being said. Western country manages stress differently. In United States, Executives would encounter moderate stress and are able to manage stress effectively, whereas the Japanese would encounter very high levels of stress and encounter difficulties in managing stress. Five basic needs of physiological, security, social, self esteem, and self actualization from Abraham Maslow are all important for Japan and United States’ culture (The World Factbook 32). Conclusion From the above discussion it can therefore be concluded that the Japan’s business and cultural practices are worth being familiarized because of the economical benefit it has to the entire world. However, Japan as a c ountry is trying to eliminate any barriers that may arise to cause hindrance to the global market. Even though the United States is the world’s super power, it can be deduced that the two countries work hand in hand because of the similar business practices and the fact that Japan is one of the most industrious country in the world. Angelucci, Marc. â€Å"Hofstede’s Dimensions on Cultural Practices†. 2010- August 4, 2010. geert-hofstede.com/hofstede_japan.shtml Dietterich, Tea. â€Å"China-Cultural Awareness and Etiquette Training.† 2002-August 4, 2010. 2m.com.au/country.php East Southeast Asia. â€Å"Japan CIA The World Fact book.† 2009-August 4, 2010. https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html. Gorill, Jodie. â€Å"Japanese Social and Business Culture.† 2007- August 4, 2010. communicaid.com/%5Ccross-cultural-training%5Cculture-for-business-and-management%5Cdoing-business-in%5CJapanese-business-and-social-c ulture.php Griffin, Ricky. International business. Pearson Prentice Hall 6th edition, 2010.Print Gross, Anchw. â€Å"Trends in Human Resource Practices in Japan†. 1998- August 4, 2010. http://www2.pittstate.edu/mgmkt/culture.html Japans Contribution to UN Peacekeeping Operations. â€Å"Ministry of Foreign Affairs of Japan (MOFA)†. 2005-August 4, 2010 mofa.go.jp/policy/un/pko/pamph2005.html Lipartito, Kaiya. â€Å"Culture and the Practice of Business History.† 1995- August 4, 2010.  http://www2.hnet.msu.edu/~business/bhcweb/publications//p0001-p0042.pdf Nishiyama, Kaiya. â€Å"Doing Business With Japan: Successful Strategies for Intercultural Communication†.2000- August4, 2010. mindtools.com/pages/article/newLDR_66.htm Smith, Ethel. â€Å"The importance of understanding cultural Differences in business.† 2002- August 4, 2010. helium.com/knowledge/70551-the-importance-of-understanding-cultural-differences-in-business Tulshyan, Ruchika. â€Å"The w orld’s qurky cultural practices.† 2010- August 4, 2010. msnbc.msn.com/id/35986024/ Wells, Christopher. â€Å"Exercise In Cross-Cultural Negotiations in Japan.† 1996- August 4, 2010. http://www2.gol.com/users/cpwells/Negot.html William, Melinda. â€Å"Cultural Awareness and Business Etiquette in the Global Marketplace.† 2007- August 4, 2010. aiaa.org/documents/myaiaa/workshop/Cultural_Awareness.ppt

Being a teen to being a toddler Essay Example for Free

Being a teen to being a toddler Essay When I was a kid, I always admired all the extravagant and out of this world thing that teenagers able to do. And all I wanted to be is to be a teenager. And as the year goes by, I got more excited, because I was getting closer to be a teenager. And now I am a teenager, I wish I could be a kid again. It is quite funny how my opinion changed that fast. Here is what I figure out are the differences and similarity between being a teenager and being a kid. Being a teenager is one of the toughest and most memorial processes in your lifetime. A teenager goes through many pleasant times and depressions. They go through the pleasant times just like the kids does, but the kids don’t really go through depressing times. The teenagers can be depressing over either losing a friend, got bullied, loneliness and low self confident. When I was a little kid, I was allowed to do anything that I wanted to do. I can go outside, play with my friends all day long and everyone likes you. Being a kid was fun, you never had to worry about having any hard works or having a test the next day. Life was just like a wonderland. But for teenagers, you will have to go home fast after school and start to do homework and review for the test. Every year that passed, as a teenager, my parents will give more freedom like how they allow me to go outside with my friends unlike when I was a little kid. I always wanted to go outside to the playground and play with my friends but sometimes when I ask my parents they would either say, â€Å"Well, what did your father say,† or, â€Å"What did your mother say.† And if one parent said no, then everything will be no, no matter how hard you try to convince them. Now when you become a teenager, most parents will say yes, there is less percentage that they would say no, unless it’s a special case like going to the club and more. So what I analyzed is that parents trust you more when you grow up, because as the time goes by, you will eventually become more mature and you will know what were right and what was wrong. Being a teen to being a toddler. (2016, May 27).

Exam preparation Essay Example | Topics and Well Written Essays - 500 words - 1

Exam preparation - Essay Example y relate to administrative functions, and this creates room for specialization and empowerment to the job itself other than the person doing it as such retains the skills within an organization. Besides, it makes it easy in moderating calculations for each employee with consideration to tackling individual cases in an organization clarify (Swedberg, 2005). Based on Max Weber theory of management, both scientific management theory and school theories for of social relation are both perquisites to improve employee’s productivity through motivation (Swedberg, 2005). However, the two have conflicting ideology because scientific management entails improving employees’ prosperity and shifts occurring within different job strategies while human relations management is all about improving human resource towards achieving better organizational results. Left and right wing ideologies are political ideologies that aim at improving healthcare challenges by advocating for freedom and modern technologies in healthcare systems. The ideologies advocate against the ones that have previously been in existence. The two wings are different in the sense that left wing advocates for state responsibility in medical care while the right wing believes that everything can still operate with less government intervention (Agarwal, 1986). Capitalism entails as an economic system where private individuals own most industries in the nation. Capitalism economic system mainly constitutes huge labor cost and minimal returns from the industrial sectors. Marx criticizes such economy as quite prone to initiating hostility leading to two different classes in the society and highly susceptible to clashes (Agarwal, 1986). McKenna (2002) clarifies that several debates have existed as to whether management is a profession or not. Despite the fact that most managers own status more similar to engineers or surveyors, I totally disagree with the notion that management is a profession. Based on

How does the living wage relate to the labour movement and how does Essay

How does the living wage relate to the labour movement and how does the labour movement relate to the living wage (employment relationship) - Essay Example In addition to that, globalization has also led to a few number of state renounce the laws that govern the employees. Due to the mere ignorance and the globalization factor, majority of the states have cut of the wages of their employees to go down more than they deserve. This occurs mostly in the sector where skills are not needed and they are not counted as increasing the economy (McConnell & Brue, 1999). Due to all the reasons mentioned above, numerous organizations that claim to fight off low pay, or living wage or fair pay have been introduced in the last twenty years. This has happened in majority of the countries both the developed countries and the developing. They have acted a key part in the society since they gather, educate and air the views of unsatisfied employees to the government who for a very long time have been going on with a low pay, way down more than the standard one. The activities that these labor organizations do have yielded positive results for instance, one of the results they have yielded is that wage tribunals have been happening more than they used to. In addition to that, the labor work force has also been awarded for the good work they portray of campaigning for or fellow human rights. Some of the benefits that the employees have gained for is for instance having a weekend, which has two days, if they work on holidays they get paid and majority of the organizations that employ them have focused on the 8 hours of working each day and compensation for any extra minute spent working (Victor et al., 1998). In a lay mans’ dictionary if we try to look at the definition of the term labour movement, it is the movement of workers for enhanced management by employers, for the most part through the creation of labour unions. So how does it (the labour movement) relate to the living wage and how does the living wage relate to the labour movement? Living wage and the labour movements go hand in

Summary Essay Example | Topics and Well Written Essays - 250 words - 152

Summary - Essay Example Apart from these challenges, college founders remains to be the founders of the American higher education in the history, especially the missionaries such as Baptists and Methodists (Rudolph and John 57). The main reasons why magnet schools are being established are to promoted ethnic diversity, provide several programs to aid in satisfying individuals’ interests and talents, and improve education standards. This article aids at exploring racial diversity and magnet schools (alternative schools). The author affirms that magnet schools are highly established in urban districts because they have large students’ enrollment (Goldring and Claire 18). Under the topic â€Å"Magnet Schools and Desegregation†, the author states that magnet programs point to vast success. He affirms that magnet programs highly helps to mix students’ bodies ranging from approximately 44%black to 50% white in elementary schools. After carrying out case studies on four alternative schools, it was concluded that magnet schools effectively helps to come up with racially balanced schools. Although integrating magnet schools is too costly, the benefits of such integrations are worth the ex pense (25). Magnet schools can be used as a tool for racial balance. In this article, Clark Kerr provides university leaders with five key points of guidance on the kind of attitudes that modern universities should adopt. The author argues that the biggest problem that will affect higher learning institutions is challenged in accommodating the vast growing number of students. Some directions of responding in the short run that are provided in this article include, more privatization, more federalization, more public support cultivation, effective use of available resources, more pluralistic leadership, and more attention to long-term movement directions. One of the uncertainties that can be clearly recognized is what will take place in the economic productivity. The

Managing Foreign Exchange Risk in International Trade

Managing Foreign Exchange Risk in International Trade MANAGING FOREIGN EXCHANGE RISK IN INTERNATIONAL TRADE WITH A FOCUS ON EAST MIDLANDS COMPANIES Abstract The purpose of this research is to investigate how international trade companies in the East Midlands manage foreign exchange risk. This study utilises descriptive statistics in presenting and analysing data from the primary research. The findings of the research indicate that a majority of the firms used broad business strategies in managing their foreign exchange risk. The main problems the firms had with managing foreign exchange risks centred on customer retention and receiving payments on time. The results also indicate that there were a few firms which took an integrated approach to mitigating foreign exchange risk. This research is of value to firms involved in international trade and also business development agencies which seek to assist firms which are planning to enter or are already operating in foreign markets. Chapter 1 Introduction International trade involves exporting and importing of goods or services across foreign borders and, as soon as a firm engages in import and/or export it is exposed to numerous risks. As a result firms operating outside their home country, have to deal with the economic conditions of the foreign country in which it wishes to operate in. One of the key issues firms involved in import and/ or export are faced with is dealing with foreign currency as this is the only means by which the exchange of goods or services is facilitated. To this end it is import to study and understand the impact which foreign currency has on international trade. Following the demise of the Bretton Woods agreement (1971) whereby exchange rates were allowed to float freely, managing foreign exchange has become important (Heakel, 2009). Consequently the prices of currencies were determined by market forces that is, demand for and supply of money (Mastry and Salam, 2007). Due to the constant changes in demand and supply which are in turn influenced by other external factors, fluctuations arise (Czinkota et al, 2009). As a result of these fluctuations firms are exposed to foreign exchange risks also known as currency risks. Firms trading in different currencies are exposed to three types of foreign exchange risks; economic, transaction and translational risk (Czinkota et al, 2009). Firms which are involved in international trade are exposed to economic and transaction risks as they both pose potential threats to the firms cash flow over time (Czinkota et al, 2009). Studies have shown that foreign exchange fluctuations can affect the value of a fi rms cash flow over time (Aretz, Bartram and Dufey, 2007, Judge, 2004, Bradley and Moles 2002, Allayannis and Ofek 1998, Chowdhry, 1995, Damant, 2002 and Wong 2001). More so, domestic firms although not dealing with foreign currency are also affected by foreign exchange fluctuations as the price of the commodity they trade in are also affected (Abor, 2005). Most of the extant literatures have focused on corporate risk management for financial firms and as such financial hedging with derivatives has been the central theme of currency risk management. On the other hand there has been evidence to show alternative methods exist for firms involved in international trade, these methods of managing foreign exchange risks involve strategic and operational risk management. However most of these studies have been carried out in isolation; financial hedging techniques carried out in isolation of strategic and operational hedging methods and vice versa. Little has been done to provide an integrated perspective, on utilising both techniques of managing foreign exchange risks with regards to international trade firms. This is the area in which the present study intends to explore thereby contributing to the overall literature Purpose of the Research Due to the nature of international trade which expose the firm to foreign exchange movements, thus subjecting the firm to currency risks, the purpose of this research is to explore how international trade firms deal with foreign exchange risk. The research focuses how import and export firms in the East Midlands manage their foreign exchange risk. This study also aims to explore the problems involved in managing those risks. Research Questions Consequently the research hopes to answer the following questions: Do import and export firms in the East Midlands actually manage their foreign exchange rate risks? How import and export companies in the East Midlands manage their foreign exchange risks? What problems they encounter with managing these risks? Definition of Key Terms Hedge A hedge can be defined as â€Å"making an investment to reduce the risk of adverse price movements in an asset. Investors use this strategy when they are unsure of what the market will do† (Investopedia, 2010). Derivatives Derivatives are instruments whose performance is derived from an underlying asset (Arnold, 2002) Spot Rate The spot rate is defined as the rate of exchange quoted immediately if buying or selling currency (Watson and Head) International Trade This involves the flow of goods and services between nations; it involves import and/ export of goods and services (Harrison et al, 2000) The subsequent section provides a break down of how rest of the research is set out. Chapter 2: Literature Review; this chapter provides an overview of the research topic by mapping out the key areas; theories within the risk management and finance literature are identified, explored and analysed. The concept of risk and risk management is explored. A broad classification is made on the types of risks and this is then narrowed down to include foreign exchange risk. The chapter proceeds by exploring the concept of foreign exchange and foreign exchange risks; which include the types of foreign exchange exposures. The common techniques for managing foreign exchange risks are explored. This is followed by a review of relevant literature in the key areas of the research topic. Chapter 3: Research Methodology; in this chapter the research design and strategy are discussed. Chapter 4: Research Findings and Analysis; this chapter presents the findings of the research which were obtained from the questionnaire. The findings are presented using tables, graphs and charts, to enable the reader gain a clearer understanding. An analysis of the findings is carried out by cross-tabulating the responses of the respondent in order to observe for any commonalities and/or differences. Chapter 5: Conclusion and Recommendation; this chapter concludes the research and recommendations are made. Chapter 2: Literature Review 2.1 Risk Management- Risk is an intrinsic part of any business, due to unpredictability of the forces which govern business transactions such as political, economic and social conditions; risk is a factor which cannot be completely eliminated (Watson and Head, 2007). Arnold (2002) describes risk as a situation where there is more than just one possible outcome, but a range of potential returns. It can also be defined as the chance that the actual return from an investment will be different than expected (Lamb, 2008). From the above definitions, risk does not necessarily spell doom or does not necessarily have a negative connotation. Markowitz was one of the earliest academics to point this out, by establishing a link between risks and return (risk-return trade-off). Essentially the theory; Modern Portfolio Theory (MPT) involves expected return and the degree of accompanying risk for an investment (Yorke and Droussiotis, 1994). A central theme of this theory is that the greater risk an investor accepts th e higher the potential for increased returns (Yorke and Droussiotis, 1994). While MPT purports a positive correlation between risk and return, the fact that an investment can have a range of possible outcomes is an uncertainty which can be very costly. As a result risk management is also a part and parcel of business. Risk management can be defined as â€Å"the performance of activities designed to minimize the negative impact (cost) of uncertainty (risk) regarding possible losses† (Abor, p.307, 2005). The objectives of risk management are to minimize potential losses, reduce volatility of cash flow thereby protecting earnings (Abor, 2005). While the objective for risk management is to protect companies against financial loss thereby protecting the value of the firm, traditional finance theory such as that proposed by Modigliani and Miller suggests that the market value of a firm is determined by it earning power (Arnold, 2002). The basic assumption of Modigliani and Miller theorem is that in an efficient market; with the absence of taxation, bankrupt cy costs and information asymmetry, the value of the firm is unaffected by its capital structure (Arnold, 2002). However empirical research (list authors) has shown the existence of capital market imperfections, such as taxes, agency problems and financial distress exists thus justifying risk management (Chowdhry, 1995). Furthermore, MPT also suggests that the risk and volatility of an investment portfolio can be reduced, and the gains can be enhanced, all by diversifying the portfolio among several non-correlated assets (Pearce Financial, 2008). That is, investors can maximise their expected return for a given level of risk by diversifying their investments across a range of assets ((McClure, 2006). MPT involves risk management through diversification of investments. In a simplified expression, MPT is based on the idea of not ‘putting all of ones eggs into one basket. 2.2 Types of Risk There are two broad classification of risks; Unsystematic and Systematic (Rossi and Laham, 208) Systematic risks refers to risks which affect the entire market due to events such as; exchange rate movements, changes in the price of commodities, war, recession and interest rates, however Unsystematic risks are risks which are specific to individual companies (reference). These distinctions were made by Sharpe (1960) in addition to Markowitz Modern Portfolio theory (MPT), the rationale behind it was that despite risk management practise through diversification, there were still underlying factors which affected the return potential of an investment portfolio. Chesnay Jondeau (2001) clearly point out that the correlation of assets which Markowitz talks about depends on other underlying factors and that the relationships are dynamic. They further found that major events such as general adverse movements in markets can significantly change the correlations between assets (Chesnay Jondeau, 2001). Empirical studies show that in financial crisis, assets tends to act the same, that is they are more likely to more become positively correlated, moving down at the same time (Ardelean, Brandt and Malik, 2009). Essentially, severe market crises will have a spill over effect and cause investments in several different asset classes or markets to succumb to sudden liquidation (Vocke and Wilde, 2000, Pearce Financial, 2008). However findings from Xing and Howe (2003) are contradictory, their findings show that the failure of previous studies to find a positive risk-return relationship may be as a result of model misspecification. Essentially they found that there was no agreement on the risk-return relationship amongst previous studies which had used data from one market (Xing and Howe, 2003). Thus they argued that the world market should be taken into consideration in assessing risk return-relationship in a partially integrated market (Xing and Howe, 2003). But then it only stands to reason that if markets are integrated partially or wholly, a catastrophic economic cycle such as financial crises would have an adverse effect on the world market. Thus clearly it does not matter how much one diversifies unsystematic risk, the underlying systematic risk is a problematic factor which has to be dealt with. 2.3 Foreign Exchange rate as a Systematic Risk Background Foreign Exchange rate can be defined as the â€Å"price of one currency expressed in terms of another† (Arnold, p.973, 2002). For example, if the exchange rate exchange rate between the European Euro and the Pound is â‚ ¬1.3 =  £ 1.00, this means that  £1 is equivalent to â‚ ¬1.3. Foreign Exchange (Forex) is traded on the foreign exchange market, the purpose of which is to facilitate trade and the exchange of currencies between countries (Czinkota et al, 2009). The Forex market is an informal market which does not have a central trading place (Czinkota et al, 2009). Trade is carried out it is a 24 hour market as it involves financial institutions from around the globe, as trade moves from one financial centre to another (Arnold, 2002). Thus as one market closes in one region or continent another opens in a different place (Arnold, 2002). The major trading centres are in Tokyo, Singapore, London and New York (Waston and Head, 2007). The buyers and sellers of foreign c urrencies included exporters/importers; tourists; fund managers; governments; central banks; speculators and commercial banks (Arnold, 2002). However large commercial banks account for a larger percentage of Forex trading in the currency markets, as they deal currencies on behalf of customers (Arnold, 2002). They also undertake transactions of their own in an attempt to make a profit by speculating on future movements of exchange rates (Arnold, 2002). Foreign Exchange Risk After the demise of the Bretton woods conference (1973) exchange rates were allowed to float freely; exchange rates were no longer fixed and currencies were allowed to float freely in value to each other (Czinkota et al, 2009). However freely floating exchange rate poses problems for investors and firms alike who deal with different currencies as the uncertainty of exchange rate movements can have a positive or negative impact on an investment (Czinkota et al, 2009). Foreign exchange risk also known as currency risk is the â€Å"risk that an entity will be required to pay more (or less) than expected as a result of fluctuations in the exchange rate between its currency and the foreign currency in which payment must be made† (Abor, p.3, 2005). Thus considering the potential variability of Forex and the impact it can have on international investments and international business, irrespective of the business sector, it is clear that Foreign exchange risks can be classed as systematic risks. Forex risk is an un-diversifiable risk as it affects the entire market. Having established the relationship between Forex and systematic risk and understanding that it cannot be diversified the question which presents itself is, what can be done about it? Theory states that the only way out is to hedge this risk (Bartram, 2007), the decision to hedge will be examined in Section 2.7 2.4 Types of Foreign Exchange Exposure There are three types of foreign exchange risks or exposures; Economic exposure, Transaction exposure and Translational exposure (Maurer and Valiani, 2002). Transaction exposure is the risk that arises as a result of an existing contractual agreement involving a commitment in foreign currency, this sort of risk is primarily associated with import or exports (Arnold, 2002). For example a firm which exports goods from the UK to the US; will have an agreement (contract) that the US firm buying the goods will pay for the goods at a later date (could be 30, 60 or 90 days), however changes in the exchange rates to either currency (whether an appreciation or depreciation) will either positive or negative consequences for either firms. Transaction risks also come as a result of firms making foreign investments such as opening subsidiary branches (Arnold, 2002). These risks arise in the form of payment costs associated with constructing or establishing new branches (Arnold, 2002). In order to make the necessary payments, the home-based firm would exchange its home currency for foreign currency, thereby giving rise to potential transaction risk (A rnold, 2002) Translational exposure relates to a firms earnings; it involves a firms accounting practises (Waston and Head, 2007). This risk â€Å"arises from the legal requirement that all firms consolidate their financial statement (balance sheet and income statement) of all worldwide operations annually† (Czinkota et al, p. 334, 2009). This implies that, as firms translate and consolidate foreign assets, liabilities and profits into domestic currency, there is the possibility of the firm experiencing a loss or gain (Waston and Head, 2007). This is mainly an accounting risk and as such give a real indication of the impact of exchange rate fluctuations on the value of a firm (Watson and Head, 2007). Economic exposure impacts a firms long-term cash flow, positively or negatively (Czinkota et al, 2009). This kind of risk not only affects firms involved in international trade but also has an impact on domestic firms as it can also affect the price of commodities sold (Czinkota et al, 2009). Furthermore, this sort of risk also undermines the competitiveness of a firm (Arnold, 2002). It can affect the firms competitive position directly if the home currency appreciates and foreign competitors are able to offer a much cheaper price, compared to the firms products which have become expensive as a result of the currency appreciation (Arnold, 2002). Economic risk can also affect a firms competitive position indirectly even if a firms home currency does not experience adverse movements (Arnold, 2002). For example Arnold (2002) illustrate that a South African firm selling in Hong Kong with a New Zealand firm as its main competitor can lose competitive edge if the New Zealand dollar weakens against the Hong dollar. Thus the products or commodity on offer by the New Zealand firm would be cheaper than that of the South African firm assuming both currencies (South African Rand and New Zealand Dollar) had a similar exchange rate against Hong Kong Dollar. Economic and transaction risk are more related to businesses involved in international trade, translational exposure more to do with accounting practises (Waston and Head, 2007). Consequently these are the foreign exchange exposure that will be focused on. 2.5 Foreign Exchange Risk and Natural Hedging The idea of applying natural hedging strategies as tools to hedge foreign exchange exposure is one that has received a lot of attention in recent times, as the concept focuses on using non-financial methods to mitigate the volatility of future cash flows and possibly add value to the firm (Kim et al, 2006). The various natural hedging strategies are explained below. Netting This technique relates to multi-nationals which have foreign subsidiaries, it involves reducing funds transferred by netting off the transaction between the parent company and the subsidiary firm (Watson and Head, 2007). For example â€Å"if a UK parent owed a subsidiary in Canada and sold C$2.2m of goods to the subsidiary on credit while the Canadian subsidiary is owed C$1.5m by the UK company, instead of transferring a total of C$3.7m the intra-group transfer is the net amount of C$700,00† (Arnold, p. 982, 2002). This implies that rather than both the parent and subsidiary firm managing their exposure separately they opt for a centralised management system to reduce the size of the currency flows. Consequently transaction costs and the cost of purchasing foreign exchange are mitigated (Arnold, 2002). Leading and Lagging This technique involves either settling foreign accounts by either postponing payments (lagging) till the end of the credit period allowed or prepayment (leading) at the beginning of the transaction (Watson and Head, 2007). It functions based on the anticipation a firm has that future exchange rates will either appreciate or depreciate (Czinkota, 2009). Thus if a firm anticipated a depreciation in its home currency, it lead its payments conversely if the firm anticipated an appreciation in exchange rate it would lag its payments. Invoicing in the Domestic Currency This method involves invoicing foreign customers in the firms domestic currency rather than in the foreign currency (Arnold, 2002). What this does is that it shifts the burden of risk to the foreign firm (buyer). Operational and Strategic Methods There is no one singular acceptable definition of operational hedging as it varies according to the context it is been used. Boyabatli and Toktay (2004) in their work, review and discuss a diverse cross section of views on operational hedging, they delve into the similarities in application methods of operational hedging across different academic fields. They discovered that although there were some differences in meaning in various academic fields; operations management, finance, strategy and international business, there were basic characteristics which were similar across all fields. On this basis operational hedging can be described according to its functionality. Bradley and Moles describe it as the decisions firms take in regards to the â€Å"location of their production facilities, sourcing of inputs, the nature and scope of products, strategic financial decisions such as the currency denomination of debt, the firms choice of markets and market segments† (Bradley and Mo les p.29, 2002). It involves the use of non-financial methods to mitigate the volatility of future cash flows and possibly add value to the firm (Kim et al, 2006). The objective is geared towards reducing long-term economic exposures. Operational hedging can be said to be based on the principle of real options. Real options are â€Å"opportunities to delay and adjust investments and operating decisions over time in response to resolution of uncertainty† (Triantis 2000 cited in Boyabatli and Toktay p.6, 2004). 2.6 Hedging with Financial Derivatives The different types of financial derivatives are: Forwards and Futures, Foreign currency Options and Currency Swaps. Forward contract: This enables the business to protect itself from adverse movements in exchange rates by locking in an agreed exchange rate until the agreed date of payment (Brealey, Myers and Allen, 2006). The example given by Horcher and Karen (p.95, 2005) illustrate the concept further; â€Å"a company requires 100 million Japanese yen in three months to pay for imported products. The current spot exchange rate is 115.00 yen per U.S. dollar, and the forward rate is 114.50. The company books a forward contract to buy yen (sell U.S. dollars) in three months time at a price of 114.50 and orders its merchandise. In three months time, the company will use the contract to buy yen at 114.50. At that time, if yen is trading at 117.00 per U.S. dollar, the company will have locked in a price that, with the benefit of hindsight, is worse than current market prices. If three months later yen is at 112.00 per U.S. dollar, the company will have successfully protected itself against a more exp ensive yen. Regardless of price changes, the company has locked in its yen purchase price at the forward rate of 114.50, enabling it to budget its costs with certainty†. Futures Contract: A futures contract refers to an â€Å"agreement to buy or sell a standard quantity of specified financial instrument or foreign currency at a future date at a price agreed between two parties† (Watson and Head, 2007). Although it bears some similarities to the forward contract in that it also locks in the exchange rate, however one major difference is that a forward contract can be used in a wide range of currencies while the futures contract is applicable to a limited number of currencies (Brealey, Myers and Allen, 2006). Foreign currency Options: This gives holders the right to purchase or sell foreign currency under an agreement that allows for the right but not the obligation to undertake the transaction at the agreed future date (Brealey, Myers and Allen, 2006). One key advantage of this method of hedging is that it gives holders the opportunity to take advantage of favourable exchange rate movements (Watson and Head, 2007). However a non-refundable fee on the option known as an option premium is required (Watson and Head, 2007). Currency Swaps: A currency swap is â€Å"an agreement between two parties to exchange principal and interest payments in different currencies over a stated time period† (Watson and Hedge, p. 382, 2007). Basically what this implies is that a firm can gain the use of foreign currency but avoid exchange rate risk which may arise from servicing payments (Watson and Head, 2007). 2.7 A review of Literature on hedging This section critically examines the rationale for hedging foreign exchange risk. The rationale which has been put forward for hedging risk in the existing literature (Judge, 2004) is that it maximises shareholder value. The idea behind hedging any kind of risk in general is that once a firm takes on the responsibility of actively managing risk, shareholder value is increased, thereby increasing the overall value of the firm (Judge, 2004). However finance theory proposes that shareholders are diversified and thus are not willing to pay a premium to firms for adopting hedging policies (Rossi and Laham, 2008). So in that vein, theory proposes that what is actually being maximized is the managers private utility (Tekavcic, Sernic and Spricic, 2008). Essentially finance theory states that shareholders are diversified while managers of firms are not, so in a bid to protect their income and personal asset, which are linked to the firm, they hedge against uncertainty (Baranoff and Brockett, 2008). Within this theory shareholders are willing to take on risk in exchange for greater returns (risk-return trade off) and so they invest in companies which they believe can provide such high returns. Thus managers hedging risks can be said to lead to underinvestment, which then flaws the theory of risk-return trade off (Baranoff and Brockett, 2008). This theory is based on the premise that financial markets are efficient and as such hedging activities of firm would not add value to the firm (Rossi and Laham). In addition to the complexities of the above theory, when the concept of hedging is put into the context of foreign exchange movements; the Law of one price (LOP)/ purchasing power parity (PPP) suggests that identical goods are not affected by exchange rate variations (Hyrina and Serletis, 2008). The law of one price is the foundation of the theory of PPP which posits that similar goods should have identical prices across countries once expressed in a common currency (Hyrina and Serletis, 2008, Czinkota et al, 2009). Numerous studies have been carried out to test whether or not the theory holds, however there is no general consensus as to whether or not the theory is valid. Hyrina and Serletis (2009), Glen (1992), Choi, Laibson and Madrian (2006) found that there are some flaws within the theory as the real exchange rate is not stationary. Engel and Rogers (1996) examines the impact distance has on goods sold and whether the presence of national borders separating locations were these goods are sold, also have any impact on the law of one price. Empirical evidence from the research shows distance and border have significant role to play on the differences in price of goods (Engel and Rogers, 1996). More so, that market segmentation also leads to price differentiation (Engel and Rogers, 1996). This theory just like the first are both based on the principle that the market is efficient and as such inconsistencies such as movements in exchange rate even out in time (Zanna, 2009). Without attempting to disparage the above theories, in regards to the first theory, whether or not hedging is done to propagate the interests of managers, the fact is that, the basis of the theory (Efficient Market) is flawed as there are numerous empirical evidence (Nobile, 2007; Bartram, 2007, Allayannis and Ofek, 2003, Tekavcic et al 2008, Mastry, 2003) to suggest that there are imperfections in the financial market such as high interests rates, inflation, tax and of course foreign exchange movements which can affect a firm. Thus shareholders cannot afford not to be concerned about hedging as these imperfections in the market can affect the cash flow, profit and ultimately the overall value of the firm. Thus in the same vain PPP should not hold. In regards to PPP it is necessary to indicate that there are other factors which affect the price of goods sold across national borders. Bradley (2005) states that the prices of goods for each firm are influenced by numerous factors such as; Government policies, high inflation rates and corporate income tax and thus such prices of goods cannot be the same across different borders. So to state clearly the financial market is not efficient due to market imperfections. Thus movements in foreign exchange can affect the cash flow and overall value of the firm. Consequently it is necessary for firms to focus on how to manage this risk. 2.8 Review of literature on financial derivatives and operational Strategies The extant literatures on hedging exchange rate risks with financial derivatives have focused on corporate risk management. The main thrust of literatures from authors such as Mastry (2003), Bartram et al (2003) and Galum and Roth (1993) have carried out studies which are aimed at finding the optimal financial derivative. However there is no general consensus as to an optimal financial hedging position. The reason for this can related to basic financial theory which suggests that derivative instruments should be chosen based on the degree of exposure of the firm and the payoff that can be gotten from the instrument (Bartram, 2006). Essentially what this implies instruments with linear characteristics such as forwards, futures and swaps should be used for linear exposures, while instruments with nonlinear profiles such as currency options are suitable to hedging nonlinear exposure (Stulz, 2003). Put simply the theory suggests that after firms assess the nature of its exposure, all tha t needs to be done is choose a derivative which matches that exposure. However, contrary to financial theory Bartram (2006), Ianieri (2009) found that as a result of the flexible nature of options, options can be used to hedge various types of exposures and not just nonlinear exposures. Despite these findings, merely identifying the nature of exposure and matching it with a derivative is not enough. There are other factors which influence the decision on what derivatives to use besides the nature of exposure. For instance while an option is flexible and can be adapted to suit various types of exposures, it is also be a highly complex technical method to use. The problem with currency options is that they require highly skilled individuals who can understand and use it effectively. Ianieri (2009) states that even brokers who should know how to use this method have had bad experiences with it. In an alternative view, Masry and Salam (2007) in an attempt to understand the rationale for using financial derivatives found that the size of the firm impacts on a firms decision to use financial derivatives. A study conducted by Judge (2004) shows that there is a positive relationship between the size of the firm and the foreign currency hedging decision. The general idea is that large firms have numerous resources available to them; in terms of personnel and information, and as such they are more likely to hedge using financial derivatives (Judge, 2004). So in essence the transaction costs which accompany the use of derivatives would discourage small firms from opting to hedge with financial derivatives. On the other hand Kim and Sung (2005), Managing Foreign Exchange Risk in International Trade Managing Foreign Exchange Risk in International Trade MANAGING FOREIGN EXCHANGE RISK IN INTERNATIONAL TRADE WITH A FOCUS ON EAST MIDLANDS COMPANIES Abstract The purpose of this research is to investigate how international trade companies in the East Midlands manage foreign exchange risk. This study utilises descriptive statistics in presenting and analysing data from the primary research. The findings of the research indicate that a majority of the firms used broad business strategies in managing their foreign exchange risk. The main problems the firms had with managing foreign exchange risks centred on customer retention and receiving payments on time. The results also indicate that there were a few firms which took an integrated approach to mitigating foreign exchange risk. This research is of value to firms involved in international trade and also business development agencies which seek to assist firms which are planning to enter or are already operating in foreign markets. Chapter 1 Introduction International trade involves exporting and importing of goods or services across foreign borders and, as soon as a firm engages in import and/or export it is exposed to numerous risks. As a result firms operating outside their home country, have to deal with the economic conditions of the foreign country in which it wishes to operate in. One of the key issues firms involved in import and/ or export are faced with is dealing with foreign currency as this is the only means by which the exchange of goods or services is facilitated. To this end it is import to study and understand the impact which foreign currency has on international trade. Following the demise of the Bretton Woods agreement (1971) whereby exchange rates were allowed to float freely, managing foreign exchange has become important (Heakel, 2009). Consequently the prices of currencies were determined by market forces that is, demand for and supply of money (Mastry and Salam, 2007). Due to the constant changes in demand and supply which are in turn influenced by other external factors, fluctuations arise (Czinkota et al, 2009). As a result of these fluctuations firms are exposed to foreign exchange risks also known as currency risks. Firms trading in different currencies are exposed to three types of foreign exchange risks; economic, transaction and translational risk (Czinkota et al, 2009). Firms which are involved in international trade are exposed to economic and transaction risks as they both pose potential threats to the firms cash flow over time (Czinkota et al, 2009). Studies have shown that foreign exchange fluctuations can affect the value of a fi rms cash flow over time (Aretz, Bartram and Dufey, 2007, Judge, 2004, Bradley and Moles 2002, Allayannis and Ofek 1998, Chowdhry, 1995, Damant, 2002 and Wong 2001). More so, domestic firms although not dealing with foreign currency are also affected by foreign exchange fluctuations as the price of the commodity they trade in are also affected (Abor, 2005). Most of the extant literatures have focused on corporate risk management for financial firms and as such financial hedging with derivatives has been the central theme of currency risk management. On the other hand there has been evidence to show alternative methods exist for firms involved in international trade, these methods of managing foreign exchange risks involve strategic and operational risk management. However most of these studies have been carried out in isolation; financial hedging techniques carried out in isolation of strategic and operational hedging methods and vice versa. Little has been done to provide an integrated perspective, on utilising both techniques of managing foreign exchange risks with regards to international trade firms. This is the area in which the present study intends to explore thereby contributing to the overall literature Purpose of the Research Due to the nature of international trade which expose the firm to foreign exchange movements, thus subjecting the firm to currency risks, the purpose of this research is to explore how international trade firms deal with foreign exchange risk. The research focuses how import and export firms in the East Midlands manage their foreign exchange risk. This study also aims to explore the problems involved in managing those risks. Research Questions Consequently the research hopes to answer the following questions: Do import and export firms in the East Midlands actually manage their foreign exchange rate risks? How import and export companies in the East Midlands manage their foreign exchange risks? What problems they encounter with managing these risks? Definition of Key Terms Hedge A hedge can be defined as â€Å"making an investment to reduce the risk of adverse price movements in an asset. Investors use this strategy when they are unsure of what the market will do† (Investopedia, 2010). Derivatives Derivatives are instruments whose performance is derived from an underlying asset (Arnold, 2002) Spot Rate The spot rate is defined as the rate of exchange quoted immediately if buying or selling currency (Watson and Head) International Trade This involves the flow of goods and services between nations; it involves import and/ export of goods and services (Harrison et al, 2000) The subsequent section provides a break down of how rest of the research is set out. Chapter 2: Literature Review; this chapter provides an overview of the research topic by mapping out the key areas; theories within the risk management and finance literature are identified, explored and analysed. The concept of risk and risk management is explored. A broad classification is made on the types of risks and this is then narrowed down to include foreign exchange risk. The chapter proceeds by exploring the concept of foreign exchange and foreign exchange risks; which include the types of foreign exchange exposures. The common techniques for managing foreign exchange risks are explored. This is followed by a review of relevant literature in the key areas of the research topic. Chapter 3: Research Methodology; in this chapter the research design and strategy are discussed. Chapter 4: Research Findings and Analysis; this chapter presents the findings of the research which were obtained from the questionnaire. The findings are presented using tables, graphs and charts, to enable the reader gain a clearer understanding. An analysis of the findings is carried out by cross-tabulating the responses of the respondent in order to observe for any commonalities and/or differences. Chapter 5: Conclusion and Recommendation; this chapter concludes the research and recommendations are made. Chapter 2: Literature Review 2.1 Risk Management- Risk is an intrinsic part of any business, due to unpredictability of the forces which govern business transactions such as political, economic and social conditions; risk is a factor which cannot be completely eliminated (Watson and Head, 2007). Arnold (2002) describes risk as a situation where there is more than just one possible outcome, but a range of potential returns. It can also be defined as the chance that the actual return from an investment will be different than expected (Lamb, 2008). From the above definitions, risk does not necessarily spell doom or does not necessarily have a negative connotation. Markowitz was one of the earliest academics to point this out, by establishing a link between risks and return (risk-return trade-off). Essentially the theory; Modern Portfolio Theory (MPT) involves expected return and the degree of accompanying risk for an investment (Yorke and Droussiotis, 1994). A central theme of this theory is that the greater risk an investor accepts th e higher the potential for increased returns (Yorke and Droussiotis, 1994). While MPT purports a positive correlation between risk and return, the fact that an investment can have a range of possible outcomes is an uncertainty which can be very costly. As a result risk management is also a part and parcel of business. Risk management can be defined as â€Å"the performance of activities designed to minimize the negative impact (cost) of uncertainty (risk) regarding possible losses† (Abor, p.307, 2005). The objectives of risk management are to minimize potential losses, reduce volatility of cash flow thereby protecting earnings (Abor, 2005). While the objective for risk management is to protect companies against financial loss thereby protecting the value of the firm, traditional finance theory such as that proposed by Modigliani and Miller suggests that the market value of a firm is determined by it earning power (Arnold, 2002). The basic assumption of Modigliani and Miller theorem is that in an efficient market; with the absence of taxation, bankrupt cy costs and information asymmetry, the value of the firm is unaffected by its capital structure (Arnold, 2002). However empirical research (list authors) has shown the existence of capital market imperfections, such as taxes, agency problems and financial distress exists thus justifying risk management (Chowdhry, 1995). Furthermore, MPT also suggests that the risk and volatility of an investment portfolio can be reduced, and the gains can be enhanced, all by diversifying the portfolio among several non-correlated assets (Pearce Financial, 2008). That is, investors can maximise their expected return for a given level of risk by diversifying their investments across a range of assets ((McClure, 2006). MPT involves risk management through diversification of investments. In a simplified expression, MPT is based on the idea of not ‘putting all of ones eggs into one basket. 2.2 Types of Risk There are two broad classification of risks; Unsystematic and Systematic (Rossi and Laham, 208) Systematic risks refers to risks which affect the entire market due to events such as; exchange rate movements, changes in the price of commodities, war, recession and interest rates, however Unsystematic risks are risks which are specific to individual companies (reference). These distinctions were made by Sharpe (1960) in addition to Markowitz Modern Portfolio theory (MPT), the rationale behind it was that despite risk management practise through diversification, there were still underlying factors which affected the return potential of an investment portfolio. Chesnay Jondeau (2001) clearly point out that the correlation of assets which Markowitz talks about depends on other underlying factors and that the relationships are dynamic. They further found that major events such as general adverse movements in markets can significantly change the correlations between assets (Chesnay Jondeau, 2001). Empirical studies show that in financial crisis, assets tends to act the same, that is they are more likely to more become positively correlated, moving down at the same time (Ardelean, Brandt and Malik, 2009). Essentially, severe market crises will have a spill over effect and cause investments in several different asset classes or markets to succumb to sudden liquidation (Vocke and Wilde, 2000, Pearce Financial, 2008). However findings from Xing and Howe (2003) are contradictory, their findings show that the failure of previous studies to find a positive risk-return relationship may be as a result of model misspecification. Essentially they found that there was no agreement on the risk-return relationship amongst previous studies which had used data from one market (Xing and Howe, 2003). Thus they argued that the world market should be taken into consideration in assessing risk return-relationship in a partially integrated market (Xing and Howe, 2003). But then it only stands to reason that if markets are integrated partially or wholly, a catastrophic economic cycle such as financial crises would have an adverse effect on the world market. Thus clearly it does not matter how much one diversifies unsystematic risk, the underlying systematic risk is a problematic factor which has to be dealt with. 2.3 Foreign Exchange rate as a Systematic Risk Background Foreign Exchange rate can be defined as the â€Å"price of one currency expressed in terms of another† (Arnold, p.973, 2002). For example, if the exchange rate exchange rate between the European Euro and the Pound is â‚ ¬1.3 =  £ 1.00, this means that  £1 is equivalent to â‚ ¬1.3. Foreign Exchange (Forex) is traded on the foreign exchange market, the purpose of which is to facilitate trade and the exchange of currencies between countries (Czinkota et al, 2009). The Forex market is an informal market which does not have a central trading place (Czinkota et al, 2009). Trade is carried out it is a 24 hour market as it involves financial institutions from around the globe, as trade moves from one financial centre to another (Arnold, 2002). Thus as one market closes in one region or continent another opens in a different place (Arnold, 2002). The major trading centres are in Tokyo, Singapore, London and New York (Waston and Head, 2007). The buyers and sellers of foreign c urrencies included exporters/importers; tourists; fund managers; governments; central banks; speculators and commercial banks (Arnold, 2002). However large commercial banks account for a larger percentage of Forex trading in the currency markets, as they deal currencies on behalf of customers (Arnold, 2002). They also undertake transactions of their own in an attempt to make a profit by speculating on future movements of exchange rates (Arnold, 2002). Foreign Exchange Risk After the demise of the Bretton woods conference (1973) exchange rates were allowed to float freely; exchange rates were no longer fixed and currencies were allowed to float freely in value to each other (Czinkota et al, 2009). However freely floating exchange rate poses problems for investors and firms alike who deal with different currencies as the uncertainty of exchange rate movements can have a positive or negative impact on an investment (Czinkota et al, 2009). Foreign exchange risk also known as currency risk is the â€Å"risk that an entity will be required to pay more (or less) than expected as a result of fluctuations in the exchange rate between its currency and the foreign currency in which payment must be made† (Abor, p.3, 2005). Thus considering the potential variability of Forex and the impact it can have on international investments and international business, irrespective of the business sector, it is clear that Foreign exchange risks can be classed as systematic risks. Forex risk is an un-diversifiable risk as it affects the entire market. Having established the relationship between Forex and systematic risk and understanding that it cannot be diversified the question which presents itself is, what can be done about it? Theory states that the only way out is to hedge this risk (Bartram, 2007), the decision to hedge will be examined in Section 2.7 2.4 Types of Foreign Exchange Exposure There are three types of foreign exchange risks or exposures; Economic exposure, Transaction exposure and Translational exposure (Maurer and Valiani, 2002). Transaction exposure is the risk that arises as a result of an existing contractual agreement involving a commitment in foreign currency, this sort of risk is primarily associated with import or exports (Arnold, 2002). For example a firm which exports goods from the UK to the US; will have an agreement (contract) that the US firm buying the goods will pay for the goods at a later date (could be 30, 60 or 90 days), however changes in the exchange rates to either currency (whether an appreciation or depreciation) will either positive or negative consequences for either firms. Transaction risks also come as a result of firms making foreign investments such as opening subsidiary branches (Arnold, 2002). These risks arise in the form of payment costs associated with constructing or establishing new branches (Arnold, 2002). In order to make the necessary payments, the home-based firm would exchange its home currency for foreign currency, thereby giving rise to potential transaction risk (A rnold, 2002) Translational exposure relates to a firms earnings; it involves a firms accounting practises (Waston and Head, 2007). This risk â€Å"arises from the legal requirement that all firms consolidate their financial statement (balance sheet and income statement) of all worldwide operations annually† (Czinkota et al, p. 334, 2009). This implies that, as firms translate and consolidate foreign assets, liabilities and profits into domestic currency, there is the possibility of the firm experiencing a loss or gain (Waston and Head, 2007). This is mainly an accounting risk and as such give a real indication of the impact of exchange rate fluctuations on the value of a firm (Watson and Head, 2007). Economic exposure impacts a firms long-term cash flow, positively or negatively (Czinkota et al, 2009). This kind of risk not only affects firms involved in international trade but also has an impact on domestic firms as it can also affect the price of commodities sold (Czinkota et al, 2009). Furthermore, this sort of risk also undermines the competitiveness of a firm (Arnold, 2002). It can affect the firms competitive position directly if the home currency appreciates and foreign competitors are able to offer a much cheaper price, compared to the firms products which have become expensive as a result of the currency appreciation (Arnold, 2002). Economic risk can also affect a firms competitive position indirectly even if a firms home currency does not experience adverse movements (Arnold, 2002). For example Arnold (2002) illustrate that a South African firm selling in Hong Kong with a New Zealand firm as its main competitor can lose competitive edge if the New Zealand dollar weakens against the Hong dollar. Thus the products or commodity on offer by the New Zealand firm would be cheaper than that of the South African firm assuming both currencies (South African Rand and New Zealand Dollar) had a similar exchange rate against Hong Kong Dollar. Economic and transaction risk are more related to businesses involved in international trade, translational exposure more to do with accounting practises (Waston and Head, 2007). Consequently these are the foreign exchange exposure that will be focused on. 2.5 Foreign Exchange Risk and Natural Hedging The idea of applying natural hedging strategies as tools to hedge foreign exchange exposure is one that has received a lot of attention in recent times, as the concept focuses on using non-financial methods to mitigate the volatility of future cash flows and possibly add value to the firm (Kim et al, 2006). The various natural hedging strategies are explained below. Netting This technique relates to multi-nationals which have foreign subsidiaries, it involves reducing funds transferred by netting off the transaction between the parent company and the subsidiary firm (Watson and Head, 2007). For example â€Å"if a UK parent owed a subsidiary in Canada and sold C$2.2m of goods to the subsidiary on credit while the Canadian subsidiary is owed C$1.5m by the UK company, instead of transferring a total of C$3.7m the intra-group transfer is the net amount of C$700,00† (Arnold, p. 982, 2002). This implies that rather than both the parent and subsidiary firm managing their exposure separately they opt for a centralised management system to reduce the size of the currency flows. Consequently transaction costs and the cost of purchasing foreign exchange are mitigated (Arnold, 2002). Leading and Lagging This technique involves either settling foreign accounts by either postponing payments (lagging) till the end of the credit period allowed or prepayment (leading) at the beginning of the transaction (Watson and Head, 2007). It functions based on the anticipation a firm has that future exchange rates will either appreciate or depreciate (Czinkota, 2009). Thus if a firm anticipated a depreciation in its home currency, it lead its payments conversely if the firm anticipated an appreciation in exchange rate it would lag its payments. Invoicing in the Domestic Currency This method involves invoicing foreign customers in the firms domestic currency rather than in the foreign currency (Arnold, 2002). What this does is that it shifts the burden of risk to the foreign firm (buyer). Operational and Strategic Methods There is no one singular acceptable definition of operational hedging as it varies according to the context it is been used. Boyabatli and Toktay (2004) in their work, review and discuss a diverse cross section of views on operational hedging, they delve into the similarities in application methods of operational hedging across different academic fields. They discovered that although there were some differences in meaning in various academic fields; operations management, finance, strategy and international business, there were basic characteristics which were similar across all fields. On this basis operational hedging can be described according to its functionality. Bradley and Moles describe it as the decisions firms take in regards to the â€Å"location of their production facilities, sourcing of inputs, the nature and scope of products, strategic financial decisions such as the currency denomination of debt, the firms choice of markets and market segments† (Bradley and Mo les p.29, 2002). It involves the use of non-financial methods to mitigate the volatility of future cash flows and possibly add value to the firm (Kim et al, 2006). The objective is geared towards reducing long-term economic exposures. Operational hedging can be said to be based on the principle of real options. Real options are â€Å"opportunities to delay and adjust investments and operating decisions over time in response to resolution of uncertainty† (Triantis 2000 cited in Boyabatli and Toktay p.6, 2004). 2.6 Hedging with Financial Derivatives The different types of financial derivatives are: Forwards and Futures, Foreign currency Options and Currency Swaps. Forward contract: This enables the business to protect itself from adverse movements in exchange rates by locking in an agreed exchange rate until the agreed date of payment (Brealey, Myers and Allen, 2006). The example given by Horcher and Karen (p.95, 2005) illustrate the concept further; â€Å"a company requires 100 million Japanese yen in three months to pay for imported products. The current spot exchange rate is 115.00 yen per U.S. dollar, and the forward rate is 114.50. The company books a forward contract to buy yen (sell U.S. dollars) in three months time at a price of 114.50 and orders its merchandise. In three months time, the company will use the contract to buy yen at 114.50. At that time, if yen is trading at 117.00 per U.S. dollar, the company will have locked in a price that, with the benefit of hindsight, is worse than current market prices. If three months later yen is at 112.00 per U.S. dollar, the company will have successfully protected itself against a more exp ensive yen. Regardless of price changes, the company has locked in its yen purchase price at the forward rate of 114.50, enabling it to budget its costs with certainty†. Futures Contract: A futures contract refers to an â€Å"agreement to buy or sell a standard quantity of specified financial instrument or foreign currency at a future date at a price agreed between two parties† (Watson and Head, 2007). Although it bears some similarities to the forward contract in that it also locks in the exchange rate, however one major difference is that a forward contract can be used in a wide range of currencies while the futures contract is applicable to a limited number of currencies (Brealey, Myers and Allen, 2006). Foreign currency Options: This gives holders the right to purchase or sell foreign currency under an agreement that allows for the right but not the obligation to undertake the transaction at the agreed future date (Brealey, Myers and Allen, 2006). One key advantage of this method of hedging is that it gives holders the opportunity to take advantage of favourable exchange rate movements (Watson and Head, 2007). However a non-refundable fee on the option known as an option premium is required (Watson and Head, 2007). Currency Swaps: A currency swap is â€Å"an agreement between two parties to exchange principal and interest payments in different currencies over a stated time period† (Watson and Hedge, p. 382, 2007). Basically what this implies is that a firm can gain the use of foreign currency but avoid exchange rate risk which may arise from servicing payments (Watson and Head, 2007). 2.7 A review of Literature on hedging This section critically examines the rationale for hedging foreign exchange risk. The rationale which has been put forward for hedging risk in the existing literature (Judge, 2004) is that it maximises shareholder value. The idea behind hedging any kind of risk in general is that once a firm takes on the responsibility of actively managing risk, shareholder value is increased, thereby increasing the overall value of the firm (Judge, 2004). However finance theory proposes that shareholders are diversified and thus are not willing to pay a premium to firms for adopting hedging policies (Rossi and Laham, 2008). So in that vein, theory proposes that what is actually being maximized is the managers private utility (Tekavcic, Sernic and Spricic, 2008). Essentially finance theory states that shareholders are diversified while managers of firms are not, so in a bid to protect their income and personal asset, which are linked to the firm, they hedge against uncertainty (Baranoff and Brockett, 2008). Within this theory shareholders are willing to take on risk in exchange for greater returns (risk-return trade off) and so they invest in companies which they believe can provide such high returns. Thus managers hedging risks can be said to lead to underinvestment, which then flaws the theory of risk-return trade off (Baranoff and Brockett, 2008). This theory is based on the premise that financial markets are efficient and as such hedging activities of firm would not add value to the firm (Rossi and Laham). In addition to the complexities of the above theory, when the concept of hedging is put into the context of foreign exchange movements; the Law of one price (LOP)/ purchasing power parity (PPP) suggests that identical goods are not affected by exchange rate variations (Hyrina and Serletis, 2008). The law of one price is the foundation of the theory of PPP which posits that similar goods should have identical prices across countries once expressed in a common currency (Hyrina and Serletis, 2008, Czinkota et al, 2009). Numerous studies have been carried out to test whether or not the theory holds, however there is no general consensus as to whether or not the theory is valid. Hyrina and Serletis (2009), Glen (1992), Choi, Laibson and Madrian (2006) found that there are some flaws within the theory as the real exchange rate is not stationary. Engel and Rogers (1996) examines the impact distance has on goods sold and whether the presence of national borders separating locations were these goods are sold, also have any impact on the law of one price. Empirical evidence from the research shows distance and border have significant role to play on the differences in price of goods (Engel and Rogers, 1996). More so, that market segmentation also leads to price differentiation (Engel and Rogers, 1996). This theory just like the first are both based on the principle that the market is efficient and as such inconsistencies such as movements in exchange rate even out in time (Zanna, 2009). Without attempting to disparage the above theories, in regards to the first theory, whether or not hedging is done to propagate the interests of managers, the fact is that, the basis of the theory (Efficient Market) is flawed as there are numerous empirical evidence (Nobile, 2007; Bartram, 2007, Allayannis and Ofek, 2003, Tekavcic et al 2008, Mastry, 2003) to suggest that there are imperfections in the financial market such as high interests rates, inflation, tax and of course foreign exchange movements which can affect a firm. Thus shareholders cannot afford not to be concerned about hedging as these imperfections in the market can affect the cash flow, profit and ultimately the overall value of the firm. Thus in the same vain PPP should not hold. In regards to PPP it is necessary to indicate that there are other factors which affect the price of goods sold across national borders. Bradley (2005) states that the prices of goods for each firm are influenced by numerous factors such as; Government policies, high inflation rates and corporate income tax and thus such prices of goods cannot be the same across different borders. So to state clearly the financial market is not efficient due to market imperfections. Thus movements in foreign exchange can affect the cash flow and overall value of the firm. Consequently it is necessary for firms to focus on how to manage this risk. 2.8 Review of literature on financial derivatives and operational Strategies The extant literatures on hedging exchange rate risks with financial derivatives have focused on corporate risk management. The main thrust of literatures from authors such as Mastry (2003), Bartram et al (2003) and Galum and Roth (1993) have carried out studies which are aimed at finding the optimal financial derivative. However there is no general consensus as to an optimal financial hedging position. The reason for this can related to basic financial theory which suggests that derivative instruments should be chosen based on the degree of exposure of the firm and the payoff that can be gotten from the instrument (Bartram, 2006). Essentially what this implies instruments with linear characteristics such as forwards, futures and swaps should be used for linear exposures, while instruments with nonlinear profiles such as currency options are suitable to hedging nonlinear exposure (Stulz, 2003). Put simply the theory suggests that after firms assess the nature of its exposure, all tha t needs to be done is choose a derivative which matches that exposure. However, contrary to financial theory Bartram (2006), Ianieri (2009) found that as a result of the flexible nature of options, options can be used to hedge various types of exposures and not just nonlinear exposures. Despite these findings, merely identifying the nature of exposure and matching it with a derivative is not enough. There are other factors which influence the decision on what derivatives to use besides the nature of exposure. For instance while an option is flexible and can be adapted to suit various types of exposures, it is also be a highly complex technical method to use. The problem with currency options is that they require highly skilled individuals who can understand and use it effectively. Ianieri (2009) states that even brokers who should know how to use this method have had bad experiences with it. In an alternative view, Masry and Salam (2007) in an attempt to understand the rationale for using financial derivatives found that the size of the firm impacts on a firms decision to use financial derivatives. A study conducted by Judge (2004) shows that there is a positive relationship between the size of the firm and the foreign currency hedging decision. The general idea is that large firms have numerous resources available to them; in terms of personnel and information, and as such they are more likely to hedge using financial derivatives (Judge, 2004). So in essence the transaction costs which accompany the use of derivatives would discourage small firms from opting to hedge with financial derivatives. On the other hand Kim and Sung (2005),