Bilingualism and How Communication Develops Dissertation

Bilingualism and How Communication Develops - Dissertation Example The ability to learn a language involves many areas of the brain. The association areas located in the parietal lobe with connections to the temporal and occipital areas are involved in language experiences by functionally facilitating a variety of language-related behaviours such as vision, body awareness, touch, spatial orientation, verbal comprehension, localisation of objects in space, abstract and complex cognitive functions of mathematical reasoning and formulation of logical thoughts stemming from visual experiences (Lezak, 1997). This area of the brain was termed this association area in the parietal lobe as the â€Å"association area of association areas† while others named this association area the â€Å"  cortex† (Lezak, 1997). The right hemisphere is also involved when organizing a narrative, an expression and during recognition of emotion in the tone of voice as well as regulation of rhythm and intonation of speech.  The specialization of the left hemis phere in language processing, neuronal systems used for grammatical, semantic and lexical processing have been found to be affected by early language experiences (Carlson, 2001). Studies also indicate that right hemisphere involvement is present since much of the language processing requires spatial location, motion; and specialization and differentiation of these neuronal circuits are related to the proficiency of the language. It is known that verbal behavior is lateralized and the functions of the left hemisphere are more specialized for the analysis of sequential stimuli such as speech. Speech consists of sounds arranged into sequences of words. Cortical language areas primarily associated with localization of language-related functions are on the left hemisphere around the Sylvian fissure, inferior frontal lobe which harbors Broca’s area, and Wernicke’s area, located in the posterior temporal lobe (Carlson, 2001).

Middle East Politics Essay Example | Topics and Well Written Essays - 1000 words - 1

Middle East Politics - Essay Example The main goal of this Anglo-American influence is to gain power and control on Middle East which is mainly due to their interest in the vast oil reserves in the region as well as western economic dependence. However, before the discovery of oil reserves in the region; Middle East was targeted by the western powers on the basis of religion (due to the presence different religions such as Judaism, Islam and Christianity in Middle East) and their interest in natural arable land. In the past, western powers had different motives behind this control but in modern times their main interest lies in those vast reserves of oil that has made this region attractive for the western super powers. As a result, these western forces are actively supporting the state of Israel due to their interest in oil reserves and to make Israel as their â€Å"closest ally† in the region. Due to their interest in gaining control upon Middle East; these western powers have played an important role in trigge ring this conflict by funding Israel though military aid and by supporting Israel in various international platforms. This conflict between Israel and Palestine revolve around different key issues between the two states such as control of Jerusalem, borders, water rights, security, violence against each other and Israel’s settlement in the West Bank. More than a dispute between two states; this issue is considered as a war between Arabs and Zionism by the Middle East. These Zionists represented the small Jewish population which was in search of settling down in a Jewish state. The increased immigration of Jews in Palestine triggered the conflict to grow more severe. This raised the tension between the Jews and the Arab population. In 1947, UN intervention gave an opportunity to Zionists to maintain their hold on 55% of the Palestine to the Jews. It was an irony to see that this group is consisted of 30% of the population with a 7% land control. It is also worth mentioning

Marketing Mix Definition And Concept

Marketing Mix Definition And Concept According to Laura Lake the marketing mix is a mixture of marketing tools that are used to please customers and company objectives. Customers frequently call the marketing mix the offering. Basically offer is controlled by the following variables often referred as the four Ps in marketing: Product Price Place (Distribution) Promotion By exercising the variations of these four components you have the capability to reach multiple consumers within your target market. According to Jed C. Jones the term marketing mix is defined as the marketing Mix refers to the main elements that ought to be attended to in order to correctly market a product. They are also well-known as The 4 Ps of Marketing, the marketing mix is very helpful, and is a guideline for understanding the fundamentals of what makes a good marketing campaign. 3.1.2 Variables of Marketing Mix: Product: The marketing mix concept has its heredity from the 1950s U.S. corporate marketing planet, and the practice of marketing has obviously developed tremendously since this expression was invented. One of the alterations is that, there are a lot more services accessible nowadays, such as those obtainable through online and the difference between product and service has become more fuzzy (e.g., is a Web based software application a product or a service ). Moreover Product here refers to as products or services. The product you propose needs to be able to meet a definite, vacant market demand. Or else you need to be able to create a market niche via building a muscular brand. Price: The price you set for your market offering plays a big role in its marketability. Pricing for offerings that are further commonly available in the market is more flexible (Elastic), and its implication says that unit sales will move up or down further responsively in replication to the price modification. In contrast, those products that have usually more limited availability in the market (but with strong demand) are more inelastic, meaning that price changes will not affect unit sales to a large extent The price elasticity of the offering can be found through various market testing methods. Place: It usually refers to any way that the customer can attain a product. Provision of a product can come about via any number of distribution channels, for instance in a retail store, via mail, via downloadable files, on a cruise ship, in a hair salon, etc. The easiness and options through which one can make your product available to your customers will have an effect on your sales volume. Promotion: It is basically concerned with any vehicle you use for getting people be familiar with more about your offering. Advertising, Public relations, Point-of-sale displays, and word-of-mouth promotion are all conventional ways for promotion. Promotion is basically a way of concluding the information gap between would-be sellers and would-be buyers. Ones choice of a promotional strategy will be dependent upon the budget, the type of offering you are promoting, and availability of the said promotional vehicle. The marketing mix serves as an outstanding criterion for continually examining that you are covering all of the bases in your marketing campaign. Mass Media: It refers jointly to all the media technologies, including the Internet, television, newspapers, and radio, which are used for mass communications, and to the organizations which control these technologies. Mass media play an important role in determining public perceptions on a variety of important issues, both through the information that is distributed through them, and through the interpretations they place upon this information. The also play a large role in shaping recent culture, by selecting and representing a particular set of beliefs, values, and traditions (an entire way of life), as a reality. That is, by portraying a certain interpretation of reality, they shape reality to be more in line with that interpretation. Contemporary research demonstrates a growing level of concentration of media ownership, with many media industries already highly concentrated and dominated by a very small number of firms. Direct Marketing: It is a type of advertising that reaches its target audience without using conventional formal channels of advertising, such as TV, newspapers or radio. Businesses stay in touch straight to the consumer with advertising techniques such as fliers, catalogue distribution, promotional letters, and street advertising. Direct Advertising is a sub-discipline and a kind of marketing. There are two main definitional types which differentiate it from other types of marketing. The first is that it sends its point directly to the clients, without the use of intervening commercial communication media. The second characteristic is the core theory of successful Advertising driving a precise call to action. This aspect of direct marketing involves a stress on measurable, trackable positive responses from consumers (known simply as response in the industry) apart from of medium. 3.1.3 Marketing Mix Management by Peter Grant: According to Peter Grant Marketing Mix Management is the successful business enterprise which will flourish through the aggressive and pre-planned execution of a complete Marketing Mix strategy in approaching revenues. Identify Audience or Vertical Market to Penetrate Assign Marketing Mix Resources that Accommodate Audience in Communications Process Implement Plan The objective is to use both active and passive mechanisms to emphasize the impression rate, (or number of times that your audience perceives that it remembers), your corporate communications message to your target audience, leading to bigger revenues. To be really successful, all areas of the Marketing Mix need to be pre-planned and then executed in a timely and disciplined fashion. The World Wide Web, correctly handled, can identify and address both in a passive and active mode, both current and future clients. Marketing Mix Definitions and Action Steps Pro-activity Discipline Actions / Results Active / Passive Web Site Crosses all boundaries in passive / active communications. Great freedom by potential clients in accessing your information. Active Direct Sales Face-to-Face contact. Builds rapport, leads to proposals. Active Telesales Phone solicitation to identified customers; leads to rapport building and eventual appointment for a Direct Sales call. Active Telemarketing Identifying potential customers through qualifying needs to have a problem solved that could be addressed through your particular product or solution. Passive Direct Mail Lists by maintaining an internal client database (from inquiries generated from advertising or from telemarketing/telesales calls. Lists from purchased list service. Mass mailing service (ValPak, SuperCoups). E-Mail nickname lists from inquiries. We do not recommend spamming. Fax blast to internally generated lists. Postcard mailing for cost-effective contact frequency. Passive Advertising / Promotions Target vertical market associations that purchase your product or service. Ensure that your core corporate communications look (logo, slogan, and graphical look) is repeated in any advertisement. Vertical Market trade show participation Complimentary Introductory Program exists within your communications goals. Consistent Corporate Communications look to all of your marketing efforts (Logo, stationary, brochures, advertisements, etc.). This acts to reinforce your impressions rate. Passive Public Relations Monthly Press Release and Backgrounder to all vertical market associations. Monthly release to horizontal / territory markets to build perception and retention of your core products, services and corporate identity. The execution of the above Marketing Mix objectives in a timely and well-focused manner should ensure the relative success of any enterprise that has done appropriate market research to determine the viability of its concept. 3.1.4 How to select the finest marketing mix: pros, cons, and tips for telling people about your business includes connected article on how people get business tutorial: How to Select the Best Marketing Mix: Your marketing campaign is that set of actions that you use to get the word out get the right people or group to know what you do, who you are, and where to find you. (Then your sales campaign takes over and change prospects into customers.) You can try to wing it. But going through the same planning procedure as larger companies before launching the marketing campaign will pay off perhaps by reducing the costs, and almost surely in getting better results for the similar investment of time and money. During the past some years advice is there for the software developers, physical therapists, dance instructors, dog trainers, and other small, usually service-oriented businesses on setting up their personal marketing campaigns. Here what campaigns are all about, and how you can create your marketing work for you. WHOS YOUR CUSTOMER? One cant hit a target if he/she doesnt know what youre aiming at or where the target is. So before one define the marketing campaign, do the homework: * Clearly recognize your products and services. For Instance: neon art and signage; pre-school day care by ex-teachers. * Describe your business goals, and then set the prices or rates. How much totality of business do you want? What mix of products and services do you would like to sell? * Recognize the prospect base by income, geography, age, type of organization or individual, and line of business (for instance, nonprofit organizations with yearly revenues of $100,000 to $750,000). Cons: Can be costly; needs a lot of time and effort. Not right for a number of people or businesses. Tips: Learn to qualify prospects rapidly. Follow up promptly with mailings, letterings, samples, chiefly in response to specific requests. Keep good accounts; consider using a contact-management program. Events. Attending, participating in, or reveal. Examples: trade shows, conferences, and seminars. Pros: Very good for exposure. If you dont show, often highly affordable. Cons: Very volatile results; can be time-consuming and draining, with expensive travel expenses. Tips: Prepare. Pick a small number of shows in your field to attend on a regular basis. Meet as many people as probable to grow contacts. Collateral. Materials that you print up and hand out. For Example: brochures, newsletters, pamphlets, reprints, coupons, fliers, and business cards. Pros: Can be cheap, especially if the pieces can provide many purposes and you make them using desktop publishing. Cons: Can be costly putting together a desktop-publishing system. Can take a lot of time, until you get the hang of it. Needs episodic updating; inventory needs to be managed cautiously. Tips: Think cautiously before over committing to a costly item that will go out of date. Look for pieces that can be their personal mailer. Other diverse advertising specialties. Instances: bumper stickers, coffee mugs, key rings, calendars, and other gewgaws; skywriting and blimps; contests, surveys, and joint marketing efforts. Pros: Can help drawing the attention; gives you a simple way to depart your name and address with prospects. * Expect to spend an average of an hour a day, each day, in marketing. * Always be ready. Answer the phone with a smiling, positive voice; always carry business cards. * Do follow-up promptly. * Remember that marketing rarely has immediate results. It can take months, or even years, to set up yourself. * Dont spend the money you dont have. * Use outside services sensibly mostly where you desire to save time or where special-purpose gear is needed. No two campaigns will be similar. Even though your business may be alike as somebody elses, you may have a different philosophy, budget, or capacity to take on advertising, public speaking or phone calls. Only experience will educate you whom marketing approaches works best for you, in terms of your aptitude to do them and in delivering consequences. 3.1.5 Marketing mix customization and customizability by Marc Logman: According to Marc Logman businesses looking for customized methods of designing, pricing, selling, and delivering their wares can do it themselves or leave it up to the customer. We are sailing out of the century and into the next with our marketing techniques in full-scale transformation. Top-down marketing is changing into bottom-up. Transaction marketing is changing into relationship marketing. One-way or broadcast marketing is changing to an interactive style to support a dialogue with the client and mass marketing is changing to a customized, one-on-one way of reaching individual customers. Because of fierce rivalry, long-standing competitive advantages often are no longer sustainable. The policy is to be followed, says dAveni (1994), is one of nonstop market annoyance in order to generate impermanent competitive advantages. Hamel and Prahalad (1994) propose that firms should look almost endlessly for new openings. In the middle of such dizzying change, companies must be able to create real-time decisions, so their planning and tactics horizons frequently become shorter. To be flexible and highly receptive to market moves, a top-down approach in which business plan decisions precede tactical and planning decisions often no longer supports. Companies should be able to become accustomed to their tactics immediately. In the same background, a firms communication approach becomes more and more bottom-up. Rather than determining target group (who?) and communication aim (what?) before deciding on the instrument (how?), specific methods of communicating, such as by means of the Internet, are leading to the recognition of who and what. Moreover, many writers assert that a paradigm shift is happening from transaction marketing to relationship marketing. Firms are beginning to understand that keeping current customers may be more significant than trying to attract new ones. In the computer business, different hardware specifications may be developed by the customer. Menu options offer choices of hard disk capacity, processing speed, software drivers, and so on. Capacity can be extended; new cards can further be added. Software firms are also developing innovative tools that allow the user to perform several operations more efficiently. Power quest recently introduced the package Partition magic, which allows users to divide their hard disks more effectively. Business-to-business markets, in which suppliers sell products to the manufacturer, are using both customization options. Some manufacturers, such as the auto makers, hold suppliers accountable for integrating their products into the final version. Others tend to favor buoying customizable products from the supplier and become accustomed on their own. In the second case, manufacturers often rely on competent integration-engineering division. The Laboratory of Production Technologies of Siemens in Belgium transform the basic technology into integrated solutions that fit completely into the production lines of different Siemens divisions. Purchase Price Offering the price discounts is one of the most popular ways to customize prices. Criteria for discounting often includes a customers sales volume, its sales history (such as being loyal or not), and the time of purchase. High-volume customers might get special discounts, users of old product versions might get discounts on new product versions, and so on. Another way to customize prices is through customizing the product, with additional product option leading to higher prices. Communication According to Logman (1996) points out that, especially in todays rapidly changing business environment, customers may have different information needs. Some might want to be informed about new product versions, whereas the others are interested in information about possible upgrades of old product description. The Price-sensitive customers may be interested to some extent in promotional information, whereas the quality-sensitive customers may be interested in product information. To meet the individual information needs, a firm can either communicate directly to the customers or adjust its information (such as through direct mail) or else it can offer a customizable information system that allows customers to find the preferred information easily. The World Wide Web is the most salient instance of the latter framework, with clientele selecting from corporate Web sites. Distribution and Logistics Customers now have much more freedom in choosing the logistics and methods of distribution to fit their detailed requirements. They can determine when, where, and how they want goods to be delivered; they can even state the manner in which they want goods to be handled before and after the delivery. Gilmore and Pine (1997) refer to this as the representation requirements. After-Sales Support and Costs Like many products, services can also be bundled into a customized service parcel. In numerous industries, customized augmented solution that includes both product and service are offered. In b to-b markets, such as in the mainframe computer business, sales contracts frequently cover agreements on product maintenance, substitution, and so on. By using a remote control system that permits diagnosis and possible remedy of product defects from a distance, customers after-sales costs may be condensed. Nashuatec does make use of such a system in the fax business. The Web provides another chance in this direction. By transferring video images of a product performance, product failures can be detected. After-sales costs, to some extent, can be customized by end users. Someone who buys a fresh car may decide to opt for lower energy costs by driving at a reasonably price rate of speed. A company may manufacture a copy machine that is simple for customers to maintain and repair themselves. Service costs are thereby condensed and the customers after sales cost perceptions may be positively influenced. CUSTOMIZED OR CUSTOMIZABLE: A TRADE-OFF? Businesses clearly have two alternatives when it comes to producing and marketing a product or a service: either going for the customize marketing mix instruments or let the customers themselves do it. The choice depends on numerous considerations. Finally, a firm must think about the independencies and interdependencies of its marketing mix decision. Can it present customized final product while offering a customizable information network for after-sales communication? Does price customizability results from product customizability? Can experienced computer users design their personal PCs from a list of options of standard components at a price that seems suitable to them? Will customizing methods of distribution affects price? With marketing practices in such a flux, companies are ever looking for innovative solutions to customize their ways of offering products and services. Using the framework provided here allows marketing practitioners to assess different customization options for their marketing mix instruments. But some warnings are in order. When a firm chooses to customize the marketing mix at its own, it should take care to make sure that its marketing policy is transparent and clear-cut to customers. Offering inconsistent solutions to diverse people may be seen as giving special treatment to some while discriminating against others and offering inexpert customers a do-it-yourself customizable product or service might be able to result in confusion, dissatisfaction, or even in a disaster. Along with the advances in technology that facilitate both customization and customizability comes with a new array of challenges. But careful decisions based on a proper framework for assessing the options can result in a marketing mix that draws closer to providing everything to every customer. 3.2 Brand Equity: 3.2.1 Brand Equity Definition Concept: According to Philip Kotler and Gary Armstrong, Brand Equity is defined as how much is a brand worth of? Brand equity refers towards the value of the brand. Brand equity does not develop immediately. A brand needs to be cautiously nurtured and marketed so customers feel real value and trust regarding that brand. Nike, Adidas, Harrods, all have high brand equity. These brands command high awareness and consumer loyalty. But how much are these brands really worth? It is hard to put a value on these brands. But how much is a pair of Nike trainers worth without the logo on it? According to Scott D. White, Brand equity can be defined in many diverse ways. He has developed an easy, yet dominant definition of brand equity. For a brand to be strong it must achieves two things over time: i.e. retain current customers and attract new ones. To the amount, a brand does these things well, it grows stronger versus opposition, and delivers more earnings to its owners. Flouting down the definition of brand equity into its two components, one can more easily determine a dependable way to measure the brand equity, and to track changes in brand equity over time. The components of retention, brand equity, and attraction of customers, stem from people experiences with and perceptions of a brand. The ability to keep customers is largely experiential. A high equity brand displays stronger levels of customer satisfaction and loyalty. History has shown that customers will continue to buy a brand that can offer them their moneys worth. The ability to create a center of attention for new customers is largely perceptual. Because consumers do not have actual brand experience and they must go by what they hear, see and judge about a brand. The two primary ways through market receives this information is by messages controlled by marketing, such as the advertising and PR efforts and as well as uncontrolled messages such as the press stories and word of mouth. 3.2.2 Brand Equity Variables: 3.2.2.1 Brand Awareness: Brand awareness is a marketing concept that measures customers knowledge of a brands existence. At the aggregate level, it refers to the amount of consumers who know of the brand. Measurement driven conceptualization: Brand awareness is the degree to which a brand is associated with a particular product and is documented by potential and existing consumers either positively or negatively. Formation of brand awareness is the main goal of advertising at the beginning of any products life cycle in the target markets. In fact, brand awareness has influence on the buying behavior of a buyer. All of these calculations are at best approximations. A better complete understanding of the brand can occur if numerous measures are used. Brand equity is the positive effect of the brand on the differentiation between the prices that the consumer accepts to pay when the brand known compared to the value of the benefit received. 3.2.2.2 Brand Association: Brand Associations are not the benefits, but they are the images and symbols associated with a brand or a brand benefit. For instance- The Nike Swoosh, Nokia sound, the Film Stars as with Lux, signature tune the Ting-ting-ta-ding with Britannia, Blue color with the Pepsi, etc. Associations are not the reasons-to-buy but provide contacts and differentiation that is not replicable. It is relating perceived qualities of a brand to a known unit. For example- Hyatt Hotel is linked with the luxury and comfort; BMW is linked with sophistication, and superior engineering. The most popular brand associations are with the possessors of a brand, such as Mr. Bill Gates and Microsoft, Reliance and Dhirubhai Ambani. Brand associations are formed on the following basis: Customers contact with the organization and its employees; Advertisements; Word of mouth publicity; Price at which the brand is sold; Celebrity/big entity association; Quality of the product; Products and schemes offered by competitors; Product class/category to which the brand belongs; POP ( Point of purchase) displays; etc Positive brand associations can be developed if the product which the brand depicts is durable, and desirable. The consumers must be persuaded that the brand owns the features and attributes that can satisfy their needs. This can lead to consumers having a positive impression about the product. Positive brand association helps a business to gain goodwill, and hinders the competitors entry into the market. Brand association is anything which is deeply seated in consumers mind about the brand. Brand should be linked with something positive that can help customers to relate your brand being positive. Brand associations are the qualities of brand which come into customers mind when the brand is talked about. It is associated with the implicit and explicit meanings which a customer relates or associates with a specific brand name. Brand association can also be defined as the extent to which a specific product/service is familiar within its product/service or category. While selecting a brand name, it is necessary that the name chosen should emphasize a significant attribute or benefit that forms its product positioning. For example Power book. 3.2.2.3 Brand Impression/ Perception: Brand perception is actually how the public (the ones you are relating to) sights the product. Its the desired team shirt a football fan wears on Sundays. Bands poster hung in a teenagers room. An opinion voiced to a buddy. Brand experiences and perceptions are developed over time through a mixture of sources, including: Previous experience with the brand Interactions with sales, customer service, and other employees Recommendations from friends and colleagues Reviews by reputable sources Advertising Brand managers need to know that how consumers perceive and select the brands in specific product categories and market segments. One also need to know that what is important to consumers when making a brand decision, where consumers get the information about products and services, and what consumers think about your brand. 3.2.2.4 Brand Attachment: Brand attachment is what you vie for. It is critical not only to get your target customers make a purchase from you, but also to make them empathize with your brand. People are often inclined to award things with human characteristics and emotions. That is precisely what you want them to do. Making your brand more personal and you will get a chance to win your consumers lifelong loyalty and passion. Brands are shaped to distinct products from their competitors and join their consumers to them by building up their loyalty. Product promotion cannot be a easy and dull process of making profit. In order to have success, it has to affect both the rational and emotional aspects of human nature. A product selling, based only on their normal benefits and qualities, is not probable any more. As a high competition level makes it to be so. Therefore, brands need somewhat more to attract customers to their products. 3.2.3 Brands and brand equity: definition and management by Lisa Wood: According to Lisa Wood, an attempt to define the relationship between consumers and brands produced the term brand equity in the marketing literature. The idea behind brand equity has been debated both in the accounting and marketing literatures, and has also highlighted the importance of having a long-term focus within the brand management. Although there have been major moves by companies to be strategic in the way that the brands are managed, a lack of common terminology and philosophy within n between disciplines persists and may deter communication. Brand equity, like the concepts of brand and the added value has been discussed in the section headed the brand construct has proliferated into numerous meanings. Accountants tend to describe brand equity differently from marketers, with the idea being defined both in terms of the relationship between consumer and brand or as something that accrues to the brand owner (the company-oriented definitions). According to Feldwick (1996) simplifies the diversity of approaches, by providing a classification of different meanings of brand equity as the total value of a brand as a separable asset ; Â ± when it is sold, or included on a balance sheet; A measure of the strength of consumers attachment to a brand A description of the associations and beliefs the consumer has about the brand. The first of these is often known as brand valuation or brand value, and is the meaning generally accepted by financial accountants. The concept of measuring the customers level of attachment to a brand is known as brand strength (synonymous of brand loyalty). The third could be called the brand image, though Feldwick (1996) did use the term brand description. When the marketers use the term brand equity they tend to mean the brand description or the brand strength. Brand strength and brand description at times referred to as the customer brand equity to distinguish them from asset valuation meaning. Brand description is different because it would not be expected to be quantified, whereas the brand strength and brand value are considered quantifiable (though the methods of quantification are not covered by this article). Brand value may be thought to be separate as it refers to the actual or notional business transaction, while the other two focuses on the customer. There is an unspecified relationship between interpretations of the brand equity. This connection implies the causal chain. 3.2.4 Managing Brand Equity in Rapidly Changing Markets by Carol Holding: Several years ago, brand equity received the ultimate accolade in a capitalist society: a dollar value- sometimes listed with other intangible assets in the annual report. The highest valued brand today is Coca Cola. Its value according to Financial World is $39 billion. Thats the extra margin people will pay to get the real thing over a generic brand. On the other hand, IBMs brand, though third in value this year, was by one estimate actually negative last year. In other words, if you put the IBM logo on the product, it actually reduced the value of that product versus an unknown brand. Both of these companies, Coca Cola and IBM, have gone through enormous change, yet one managed to build its equity and one lost it. Though each companys management decisions and style had something to do with the outcomes, they also faced different types of rapid change, one far

Cultural theory and the meanings of money :: Business and Management Studies

Cultural theory and the meanings of money Couples and their money: theory and practice in personal finances Four perspectives draw on: * Economics and rational choice theory * Social structural approaches * Psychological approaches * Cultural theory and the meanings of money. According to classical economic theory money has four main functions: †¢it is a medium of exchange, †¢a store of value, †¢a unit of account, †¢a standard of deferred payment. Perspectives within economic theory relevant to personal finances: †¢fungibility This notion is standard in classical economic theory and means that money is considered to be neutral and interchangeable, so that any unit of wealth is substitutable for any other (McCloskey, 1987). †¢rational choice theory This assumes that people make reasoned choices in order to maximise their overall welfare or utility. Rational choice theory lays stress on the importance of information in facilitating the efficient working of markets and of consumer choice. Daniel: I have a high interest account with First Direct as well. And then I have another savings account which is slightly lower interest. The high interest savings account has a penalty on withdrawals, so I keep a sum of money in there stable which I don’t draw on. If I have extra spending, or I need to top up my current account in case I’m going overdrawn, that comes from the third, lower interest account which I keep for small amounts. When I have a surplus at the end of the month in my current account I transfer across to the high interest account as much as I can. Daniel’s economic rationality extended to credit cards and Air Miles. He explained about his American Express Gold Card: I use that for my purchases because I get Air Miles on that, so all my purchases I get Air Miles and I transfer that to my various Air Miles accounts. I originally got a Gold Card because they did a special offer, had one free for a year, and so I gave up after a year. Said ‘No thank you. I don’t want to pay for a card’. Oh well, another card arrives free for a year, so I said, ‘Fine’. Pahl, J. (2001) ‘Couples and their money: theory and practice in personal finances’, in R. Sykes, C.Bochel and N. R. Ellison, Social Policy Review 13, Policy Press Bristol. Rosie: If I’ve got to have dealings with them for money, I like to know that it’s only a certain number of hours†¦ I like restrictions of banking hours; I do quite like that. I’m old fashioned, completely opposite to Daniel. If he sees that something is wrong with one of

International Trade Theory and Policy Essay

Multilateral trade negotiations forums are organizations established to regulate trade between many countries of the world. The agreement involves establishing organizations which regulate trade in the entire world. The increase in globalization has forced many countries to form regulatory organizations to avoid bad trade practices. To enhance trade many countries have created trade agreements to remove barriers to trade. Economic integration is the most important aspect discussed by the trade agreement organizations. The organizations aim at achieving an integrated economy where countries can trade with each other. After the World War II many leaders of the world felt that the economies of the destroyed countries could only be improved through trade. One of the proposals to improve trade was to create a laissez-faire global economy but this was rejected since it was not applicable. The leaders agreed to establish global trade organizations which would enhance trade by reducing the barriers to trade which had been placed by the countries. During the war many countries created strict barriers to trade to protect their economies from external influence (Anderson, 2005). The General Agreement on Trade and Tariffs was the first agreement to be established. The agreement was established to enhance trade between the member countries but was later converted into World Trade Organization (WTO). The International Monetary Fund was also created to regulate the economic status of the developing nations as well as regulate international economic activities (Smith, Sumner & Rosson, n. d. ). Reconstruction of the damaged economies after the World War II was the priority of these organizations. For many years several amendments have been made to accommodate the changing economic climate. Trade liberalization has been the most important aspect during the amendments. For example, according to Anderson. (2005, pg. 414), â€Å"the Uruguay Round of multilateral trade negotiations led to agreements signed in 1994 that contributed to trade liberalization over the subsequent 10 years. † Despite the many advantages accompanied by the establishment of the international trade organizations, there have been several disadvantages accompanied by the activities of opening up of domestic markets to international trade. An example is the global economic recession of the 2007-2009 that was experienced by the world economies after the banking industry and the mortgage industry collapsed due to poor financial practices by the U. S. banks. Importance of multilateral trade institutions The multilateral trade organizations were created to enhance trade and stability of the economies of the member countries. Initially they were established to reconstruct the economies which had been destroyed during the World War II. Many countries realized the importance of trade in improving the economies after the war. Trade was the only tool that could restore the original status of the economies. Before and during the war many countries had put a lot of trade barriers to prevent trade with other countries. Opening up domestic economies required negotiations with all countries of the world to enhance a more open economic system (Warnke, 1996). Multilateral trade institutions improve international trade since they encourage member countries to open up their domestic markets to international trade. Trade disputes are resolved more easily between and among conflicting countries, hence leading to a good relationship between countries. Production according to comparative advantage has been encouraged by the improvement in international trade. Countries are encouraged to produce goods which they can produce most economically. Different countries have different resources which give them the potential to create income generating products. Through international trade resources are utilized optimally since an economy will specialize in the production of products which it has greater advantages (Bernard et al. 2007). International trade has encouraged countries to specialize in the production of goods and services. The mobility of factors of production has been accelerated by globalization. More industries are encouraging division of labor to increase the productivity of labor factors of production. More industries have developed with the expansion of international trade. These industries create more employment opportunities to the citizens of a country. As the par capita income of the people increases their living standards is improved. Poverty alleviation campaigns have encouraged improved international trade as one of the strategies to enhance development of nations (Bernard et al. 2007). Opening up the domestic market to international trade creates more advantages than disadvantages. The international prices are lower than the domestic prices. The consumers obtain goods and services at lower prices. The competition created by the international trade encourages the domestic firms to be efficient in their production systems. The customers are provided with a wide variety of products to select from (Bernard et al. 2007). Multilateral trade organizations control the globalization of economies. Globalization refers to the international operation of business activities and the transfer of information between countries. Globalization has affected business activities both positively and negatively. Global markets have emerged and many companies are operating in several countries. This has created competitiveness of the companies since the global markets are larger than regional markets. Globalization is the process of integrating the global economies, societies and cultures by connecting communication and trade networks. Economic globalization refers to the integration of global economies by enhancing trade, foreign direct investment, sharing of technology, movement of people and flow of capital. The factors which influence the rate of globalization are the world economies, technology, and socio-cultural, political and biological aspects (Warnke, 1996). Globalization has improved the exchange of technologies and knowledge. This has increased the capacity of businesses to expand on the number of innovative products in the market. The public sector alone cannot accommodate all the skilled labor in a country and trade provides more employment opportunities for the people in a nation. As economies become more global people with skills can move to countries where there is high market potential for their labor. The introduction of internet has increased efficiency in trade by enabling people transfer information more easily. Trade attracts private investment and this generates more capital in the economy. The gross domestic product of a country increases with increase in trade. Growth and development of an economic is accelerated by trade since more income is generated and the living standards of the people are improved (Daniels, Radebaugh & Sullivan, 2007). Poverty levels in both developing and developed countries have declined by greater margins due to participation of countries in the international trade. Economies have acquired more wealth and the gross domestic product of countries has improved. WTO has become the custodian of international law on trade. The enforcement of trade laws about good trade practices has been possible after the creation of WTO. The establishment of regional and multilateral trade agreements was experienced after WTO was created. This has encouraged many countries remove barriers to trade (World Trade Organization 2010). Weaknesses of multilateral trade institutions Most of the multilateral trade organizations are affected by the political climate in the member countries. Any political war between the member countries can ruin the operation of the organizations. When the organizations support some political organizations; they affect the interests of the members and this reduces the delivery of the required obligations. Politically strong countries have dominated the operations of the multilateral organizations and this is causing a lot of concern to the global trade communities. Decision making at the trade organizations has become very difficult since many participants are not willing to accept rules which affect their economies negatively. Anderson (2005, pg. 417) suggests that â€Å"although trade can and should play an important role in allowing developing countries to lift themselves out of poverty, in reality international trade agreements and institutions have more often than not contributed to the continuation of global social and economic injustice. â€Å" The developed nations have dominated the multilateral trade organizations. For example, according to Anderson (2005, pg. 31) â€Å"with decision-making based on a consensus system, so each member has equal decision-making power, the WTO is held to be the most democratic of all the international institutions with a global mandate. In practice, however, the working methods of the WTO lack transparency, inclusiveness and equity. † There have been conflicts as the developing nations are becoming concerned about the great influence the developed nations have on the decisions in these organizations. Multilateral trade agreements are complicated to establish since many countries are involved. The interests of each country should be represented during the negotiations to ensure that conflicts do not arise afterwards (Amadeo, 2010). Despite the establishment of the trade organizations many countries continue to place more trade discrimination measures upon other countries. â€Å"They include not just trade taxes-cum-subsidies but also contingent protection measures such as anti-dumping, regulatory standards that can be technical barriers to trade, and domestic production subsidies† Anderson (2005, pg. 415). Many trade distortions have occurred since the global economies were established. Multilateral trade organizations have encouraged the opening up of economies to international market influence. The opening up of domestic markets has affected the global economies. Several disadvantages have been accompanied by the opening up of the domestic markets, for example, the global economic meltdown of the 2007-2008. The crisis started with the rise in prices for basic products due to the international increase in fuel prices. The prices of oil and food products increased within a short duration leading to an economic crisis which affected many people in US. The prices for many products increased and inflation was experienced all over the country. Many subprime borrowers had low incomes and the rise in prices for basic products increased the expenses for their living. Many companies retrenched employees to accommodate the increasing production costs. The borrowers were unable to repay the loans resulting to massive defaults. More than 100 subprime mortgage intermediaries filed for bankruptcy. Reacquisition of the houses from the defaulters caused a lot of people to become homeless (Platt, 2008). Subprime mortgages are policies which have a high risk of default. Subprime borrowers are the people with low incomes and have a poor credit history. They have higher risk of default compared to the prime borrowers. The US government had deregulated the real estate mortgages leading to massive investment in subprime mortgages. This caused the risky lending of subprime mortgages. The subprime mortgages were not popular initially but they became widely used in the 1990s. The climax of the sub prime mortgages was in 2006 when they accounted for more than 21 percent of all mortgages traded in the US market. The value of subprime mortgages in 2006 was valued at $600 billion. Many subprime mortgage intermediaries were established to reap the benefits of the expanding industry (Helleiner, 2009). The world economies have experienced a major decline due to poor performance of many industries. This is a crisis which has affected all sectors of the economy. Williams (2009) claims that the crisis was initiated by the subprime mortgage lending crisis in US. The banking sector issued many loans to subprime mortgage intermediaries. Due to the expanding market in the sub prime mortgage market many banks issued unsecured loans to the intermediaries. The climax of the boom was reached in 2007 when the prices of products started to increase and many subprime mortgage lenders were unable to repay their loans. This led to massive default of debts and banks registered huge losses. This reduced the lending capacity of many banks. The resulting effect was lack of credit in the economy and the collapse of many companies (Stapledon, 2009). The government of US is to be blame for the crisis. The 102nd Congress under the leadership of George W. Bush deregulated the housing sector in 1992 (Guttmann, 1994). The main aim was to increase the availability of money for buying housing. Fannie Mae and Freddie Mac companies were deregulated and could spend $97. 50 to buy housing loans. Banks with $100 could spend more than $90 buying mortgage loans. The companies had been ordered by the congress to retain more capital to for risk allowance but this was not practiced. Since 1992 the mortgage sector experienced the highest boom with many companies investing heavily in the sector. Subprime mortgage intermediary companies were developed to assist homeowners acquire loans from the banks (Stapledon, 2009). The banking sector was the worse hit by the crisis. Inter-bank lending declined and banks had no money to issue to their customers. Most of the banks collapsed while others registered huge losses. This was as a result of failure by many subprime mortgage intermediaries which defaulted the huge loans they had acquired from the banks. The central bank could not lead to all the banks due to the massive crisis that affected the entire country. Since US is a market for many commodities from other countries there was an extension of the crisis to other economies causing a global economic meltdown. Many economies declined since they had no market for their goods. Inflation increased as prices persistently increased. The entire world encountered economic crisis which resulted into failure by all sectors of the economy in the world (Stapledon, 2009). Many international organizations have intervened to eradicate the problem. The intervention by the World Bank has created better results in the efforts to reduce the impacts of the crisis. World Bank has issued loans to many countries to increase the income levels of the people. Many companies have been able to access loans due to the fun ding by World Bank. The availability of loans has increased since last year and many companies have regained their capacity (Bayne, 2008). The World Trade Organization has negotiated with the oil producing countries to reduce the oil prices as one of the measures to reduce the effects of the crisis. The global oil prices increased causing the prices of many products to rise. The high product prices caused inflation in the whole world. WTO has also encouraged trade by persuading some countries remove the trade barriers they had placed upon their trade partners when the crisis was at the climax (Stephen, T. 2008).

Laws and Regulations Essay

Introduction British Petroleum is the US’s largest corporation. One of the largest oil producers, BP services globally for billions of dollars each year. BP distributes oil and natural gas all over the world. British Petroleum has run into several problems with federal regulations over many years. Because of safety issues against the communities OSHA had to investigate many times for oil spills and natural gas leaks. Coca Cola is also one of the largest company beverage companies on the world. Coca Cola was used at first to cure addicts but the n it was revamped and used for making drinks for everyone. Like BP, Coca Cola had its issues with the law as well. They have been accused of violating human rights, pesticides in the groundwater, and finding cancer causing chemicals in the soft drinks. In 2008 it was concluded that Coca Cola was in direct violation FDA for health risk. We will compare and contrast the risks of safety regulations, OSHA violation, product safety and liability, workers compensation, and workplace data security and property protection from Coca Cola and British Petroleum. OSHA The Occupational Safety and Health Act (OSH Act) of 1970 is a federal regulation that establishes and enforces health and safety policy in the workplace (Goetsch, 2008). It covers private sector employers and employees and encourages states to participate in health and safety programs. States that participate receive half of its funding from the federal government (OSHA.gov, 2011). In the advent of increasing awareness and training of health and safety, company safety representatives must be up-to-date on laws, regulations and liability. The OSH Act requires employers to maintain statistical health and safety records and to report occupational illnesses and injuries under certain conditions at each company location. The reporting conditions are the following: â€Å"Death of one or more workers, one or more days away from work, restricted motion or restrictions to the work that an employee can do, loss of consciousness of one or more workers, transfer of an employee to another job, medical treatment beyond in-house first aid (if it is not on the first-aid list, it is considered medical treatment), and any other condition listed in Appendix B of the rule† (Goetsch, 2008, p. 121). Employers are responsible for informing employees about health and safety practices, laws, and regulations. OSHA regulations apply to BP and Coca-Cola with some deviation because of the nature of the business. OSHA regulations include general industry standards and it provides health and safety training programs for employees and employers. In the last few years, BP has been under much scrutiny. OSHA fined BP $87.4m for safety violations that led up to the 2005 Texas City refinery explosion (Walter, 2009). In 2010, BP’s Gulf of Mexico oil spill is still under investigation by the government. Insiders blame the spill on BP’s decision to shortcut procedures and skip a quality test (Casselman & Gold, 2010). Unlike BP, Coca-Cola received OSHA recognition in 2009 for having the highest employee safety and health standards at its Milesburg, PA site (OSHA.gov, 2009). Worker’s Compensation According to Goetsch (2008) â€Å" the concept of worker’s compensation developed as a way to allow injured employees to be compensated appropriately without having to take their employer to court† (Overview of Worker’s Compensation, p. 174). British Petroleum (BP) and Coca-Cola are large organization with locations around the world. Both organization have over 90,000 workers worldwide and have worker compensation plans to make sure injured employees are cared for. According to Ramos Law (2011), â€Å"workers at Coke suffer injuries similar to that of other factory employees. These workers suffer shoulder injuries from repetitive jobs such as mixing formula; knew injuries from loading product; or back pain from general warehouse jobs† (Hurt While Working at Coca-Cola or in the Beverage Industry?, para. 1). Coke needs to do a risk analysis and provide training to reduce the amount of workers’ compensation claims. British Petroleum (BP) had a massive oil spill in April of 2010 off the Gulf of Mexico in which BP hired over 20,000 people to help clean up the disaster. The care, training and protective gear for the cleanup crews was below safety standards. Training and protective gear could be the cause of the worker’s compensation claims that BP has will continue to receive. According to Johnston Moore & Thompson Attorneys at Law (2011), â€Å"seven oil spill workers were hospitalized on May 26 after experiencing nausea, dizziness and headaches. Four more were hospitalized on May 28, two of whom were admitted for chest pains† (First Workers’ Compensation Cases Building for Oil Spill Cleanup, para. 4). The fumes from the oil and the touching of the hazardous material to try and reduce the damage caused many to become sick. The safety standards of BP are being questioned for both the workers and the surrounding areas that were hit by this devastating oil spill. Product Safety and Liability Product safety and liability is a law that was created to hold distributors, retailers, manufacturers, and suppliers responsible for injuries caused from the product (Goetsch, 2008). This law was designed so that in the event injury occurs the consumer is protected. There are a number of different concepts that have laid the groundwork for the product liability law. The four major reasons that the laws were created were from, negligent manufacture, breach of warranty, strict liability in tort, and negligent design (Goetsch, 2008). Companies must take the time to ensure that the products that have been designed meet the safety standards to prevent potential instances from occurring. Coca Cola ensures that the product safety and liability is met by measuring the product and package requirements against the company standards. The company uses â€Å"The Coca-Cola Management Systems† which is a quality management system that maintains the company’s operations worldwide, maintain the Coca-Cola standards (thecoca-colacompany.com, 2011). BP has been under the analysis for quite some time since the oil spill occurred that caused millions of dollars in damage to the Gulf of Mexico. Since that time BP has created new ideas to monitor the waters that hold different oil rigs, these have been created to ensure quality monitoring. BP has created an observation program that will support constant monitoring. (BP.com, 2011) This will allow for the creation of quality monitoring preventing additional instances of the oil spill occurring in the future. This is important part of the product liability and safety program to ensure that the company follows the guidelines required to prevent future liability’s from occurring. This new quality monitoring will be able to â€Å"detect changes within the water quality, marine mammal vocalizations and weather and water temperature† (BP.com, 2011). Workplace Data and Property Protection In the workplace the most important option to the company is security and protection. Companies spend millions of dollars creating systems to protect all the assets and data that passed through a system. At BP, system security over their data tying global partnerships each refinery is a goal amongst the company. British Petroleum train each employee to keep information confidential and away from media if there is a minor incident. The risk of an employee breaking that code of silence about vital information is likely to happen. They have contracts to state employees cannot talk to media or there will be consequences that could ultimately lead to termination. Environmental Protection Agency protects the property and materials produced by BP. EPA keeps the regulation on what products are safe for BP to use to drill oil. Coke Cola has similar issues of security, but they are interested in keeping new products under the table so they can have the advantage over their competition once they launch a product. Their data protection requires a secure system as well. Both IT departments make sure systems do not get hacked by putting up server walls on the system. The security side of the results of companywide is an enterprise-level record of reference that becomes the official record for a given employee, customer, supplier, facility or other entity. Records of reference are the gold standard against which all other records in the system must be validated. These bind together the mass of company data and are at the core of the master data management approach to enterprise-wide integration (Goetsch, 2008). Although other large corporations are developing their own information frameworks, BP’s design is unique in that it specifically complements BP’s decentralized business structure. Casselman and Gold (2010) describes a situation in which a BP employee might have multiple records in one or more human resource databases, making it time-consuming to weed out the duplicate data. Conclusion There are many risks and contrasting information between the Coca Cola and British Petroleum. Both must follow rules and regulations of OSHA and federal laws in order to stay in business. Both companies had their share of setbacks when it came to employees and safety issues that made the public eye. Both companies continue to make billions of dollars and each year as the rules change they are learning to change with it. References BP.com. (2011) BP Deploying Advance Unmanned Water Quality Monitoring Vehicles in Gulf of Mexico. Retrieved from http://www.bp.com/genericarticle.do?categoryId=2012968&contentId=7064711 Casselman, B. and Gold, R. (2010). BP decisions set stage for disaster. Current, 524,14-16. Retrieved from Academic Search Complete. Goetsch, L. (2008). Occupational safety and health for technologists, engineers, and managers (6th ed.). Upper Saddle River, NJ: Prentice Hall. Johnston Moore & Thompson Attorneys at Law. (2011). Hunysvills Pearsonal Injusry Law. Retrieved from http://www.huntsvillepersonalinjurylaw.com. OSHA.gov. (2009). U.S. Department of Labor’s OSHA recognizes Coca-Cola Danone Waters LLC for workplace safety and health success. Retrieved from http://www.osha.gov/ pls/oshaweb/owadisp.show_document?p_table=NEWS_RELEASES&p_id=18137. OSHA.gov. (2011). 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