John Sutter and the Western United States Essay

During the mid-1800s, people were eager to explore most of the United States in search for a better place to live in. Those who came from Europe settled in most parts of the Eastern United States. But there are those who ventured further, going deeper into the West. One of them is John Sutter, born in Germany and of Swiss descent. He became a captain of the Swiss Army, and was driven away from his family because of debts, going to the United States to look for a greener pasture. According to Albert Hurtado in his book, John Sutter: a Life on the North American Frontier, John Sutter deserves to have a title of an entrepreneur. All his achievements were the product of his hard work and entrepreneurship (Hurtado). He roamed the United States by using these characteristics to earn enough money to fund his ventures. The Eastern part of the United States at that time were already populated, where trade and commerce is flourishing all over the place. He joined a trading venture to New Mexico, where he was successful enough, returning with wine, several mules and money. When he celebrated the Independence Day of 1839 in Monterey California, he met Governor Juan Bautista Alvarado. This meeting paved the way for a settlement grant of more than 48,000 acres of land for Sutter, the start of the monumental â€Å"New Helvetia Settlement† which pioneered American life in the Western United States. One of the few requirements for John Sutter to be awarded the land grant was to become a citizen of Mexico. This would give him thousands of acres of land where he can establish a pioneering settlement. In less than a year after becoming a Mexican citizen, he was awarded the vast lands in the central valley of California. In order to properly run this vast acreage of agricultural lands, he employed various Native Americans, as well as welcomed immigrants from different places. John Sutter’s Fort became a famous stop-over for those wishing to venture into new lands. With this account from Albert Hurtado’s book, we can see that the Western part of the United States at John Sutter’s time promises new beginnings to those who wish for a different life. The East was somehow been congested with various people migrating from other nearby countries. Because of this, some wanted, and even dared to explore other parts of the â€Å"foreign land† they have settled in. But not all parts of the west are conducive for living. In the account of John Bidwell, he describes most of the west especially California as â€Å"the country was brown and parched; throughout the State wheat, beans, everything had failed†¦cattle were almost starving for grass, and the people, except perhaps a few of the best families, were without bread, and were eating chiefly meat, and that often of a very poor quality† (Bidwell). This means that the west may promise a good life, but there are also risks in living there. It is still an uncharted territory for the migrants, and that they were all going to start from scratch. They have no clear idea on how to handle things at first, especially because they did not originate in the area. However, it is also filled with resources just waiting to be exploited. According to Bidwell, the place also has some good points, â€Å"there were no other settlements in the valley; it was, apparently, still just as new as when Columbus discovered America, and roaming over it were countless thousands of wild horses, of elk, and of antelope† (Bidwell). The Western part of the United States was truly a place of uncertainty, wherein you’ll have to risk everything if you choose to settle in the area. John Sutter was able to survive and was successful in establishing a settlement in the area. In a sense, we could say that Sutter was successful in taming the Wild West. Sutter’s Fort housed a number of people ranging from natives to settlers, even those who were lost in their way, and these people contributed well enough in cultivating the vast lands of the settlement. In a few years time, John Sutter became a major supplier of horses, cattle, and wheat (Doti). The Western United States became a melting pot of different cultures. These cultures blended well with each other despite of their differences. This is essential for the success of the settlement, where everyone has to do their part in order for their efforts to flourish. John Sutter bridged the gap between the settlers, the natives and even the bordering Mexicans. Sutter’s works not only gave rise to a new settlement, but also to a new world found in the West. This is a very important contribution in the history of the nation, as it expanded the country’s influence across the borders. The culture in the Eastern United States at that time was generally influenced by the countries which they came from. Most these are European countries that are why they have developed mixtures of various European cultures. On the other hand, the Western United States is not only a mixture of European cultures, but also accompanied by various customs of the Native Americans and the bordering Mexican culture. This diversity has proven great importance in the formation of the Western United States, because western settlements were the products of various cultures cooperating with each other in so that they would achieve peace and order in their respective communities. Works Cited: Bidwell, John. â€Å"Life in California before the Gold Discovery†. 1890. The Century Magazine. November 19 2007. . Doti, Lynne Pierson. â€Å"John Sutter: A Life on the North American Frontier Book Reviews†. 2006. Chapman University. November 19 2007. . Hurtado, Albert L. John Sutter: A Life on the North American Frontier. 1st edition ed: University of Oklahoma Press, 2006.

Shapter 4 Global Finance Essay

Topics to Stimulate Class Discussion 1. Why are MNCs affected by exchange rate movements? 2. Why did exchange rates change recently? 3. Show the class a current exchange rate table from a periodical—identify spot and forward quotations. Then show the class an exchange rate table from a date a month ago, or three months ago. The comparison of tables will illustrate how exchange rates change, and how forward rates of the earlier date will differ from the spot rate of the future date for a given currency. 4. Make up several scenarios and ask the class how each scenario would, other things equal, affect the demand for a currency, the supply of a currency for sale, and the equilibrium exchange rate. Then integrate several  scenarios together to illustrate that in reality other things are not held constant, which makes the assessment of exchange rate movements more difficult. Critical Debate: The currencies of some Latin American countries depreciate against other currencies on a consistent basis. How can persistently weak currencies be stabilized? Proposition: The governments of these countries need to increase the demand for their currency by attracting more capital flows. Raising interest rates will make their currencies more attractive to foreign investors. They also need to insure bank deposits so that foreign investors who invest in large bank deposits do not need to worry about default risk. In addition, they could impose capital restrictions on local investors to prevent capital outflows. Opposing view: The governments of these countries print too much money because they make too many promises to the electorate that would otherwise have to be funded by higher taxes or borrowing at high interest rates. Printing money is the easy way out; but prices rise, exports decrease and imports increase. Thus, these countries could relieve the downward pressure on their local currencies by printing less money and thereby reducing the money supply and hence inflation. The outcome is likely to be a temporary reduction in economic growth and business failures. Higher interest rates would merely increase inflation. Reply: Solutions that cause riots are not very clever. With whom do you agree? Which argument do you support? Offer your own opinion on this issue. ANSWER: There is no perfect solution, but recognize the tradeoffs. The proposal to raise interest rates is not a good solution in the long run, because it will cause higher loan rates, and may slow down the economies in the long run. Effective anti-inflationary policies are needed to prevent further depreciation. However, the elimination of inflation that is caused by a wage-price spiral may cause some pain among the workers in the country,  as some form of wage controls may be needed. The government has various means of reducing inflation, but all of them can have adverse effects on the economy in the short run. As intimated in the question, inflation is a form of taxation, another way in which governments can raise money and inevitably reduce the value of ones earnings. Where governments are corrupt or have a poor control over the economy, inflation may be the only reliable way of â€Å"taxing†. In terms of economic welfare, the question is perhaps who suffers from inflat ion and a depreciating currency, perhaps not so many as long as the inflation is predictable. Answers to End of Chapter Questions 1. Percentage Depreciation. Assume the spot rate of the US dollar is  £0.54. The expected spot rate one year from now is assumed to be  £0.51. What percentage depreciation does this reflect? ANSWER: ( £0.51 –  £0.54)/ £0.54 = –5.55% Expected depreciation of 5.55% percent 2. Inflation Effects on Exchange Rates. Assume that the UK inflation rate becomes high relative to euro inflation. Other things being equal, how should this affect the (a) UK demand for euros, (b) supply of euros for foreign currency, and (c) equilibrium value of the euro? ANSWER: Demand for euros should increase (euro prices cheaper), supply of euros for sale should decrease ( £ prices more expensive), and the euro’s value should increase (supply and demand). 3. Interest Rate Effects on Exchange Rates. Assume euro interest rates fall relative to British interest rates. Other things being equal, how should this affect the (a) euro demand for British pounds, (b) supply of pounds for sale, and (c) equilibrium value of the pound? ANSWER: Demand for pounds should increase, supply of pounds for sale should decrease, and the pound’s value should increase. 4. Income Effects on Exchange Rates. Assume that the income level in the euro area rises at a much higher rate than does the UK income level. Other things being equal, how should this affect the (a) euro area demand for British  pounds, (b) supply of British pounds for sale, and (c) equilibrium value of the British pound in terms of the euro? ANSWER: Assuming no effect on interest rates, demand for pounds should increase, supply of pounds for sale may not be affected, and the pound’s value should increase. 5. Trade Restriction Effects on Exchange Rates. Assume that the Japanese government relaxes its controls on imports by Japanese companies. Other things being equal, how should this affect the (a) UK demand for Japanese yen, (b) supply of yen for sale, and (c) equilibrium value of the yen? ANSWER: Demand for yen should not be affected, supply of yen for sale should increase, and the value of yen should decrease. 6. Effects of Real Interest Rates. What is the expected relationship between the relative real interest rates of two countries and the exchange rate of their currencies? ANSWER: The higher the real interest rate of a country relative to another country, the stronger will be its home currency, other things equal. 7. Speculative Effects on Exchange Rates. Explain why a public forecast about the future value of the euro and about future interest rates by a respected economist could affect the value of the euro today. Why do some forecasts by well-respected economists have no impact on today’s value of the euro? ANSWER: Interest rate movements affect exchange rates. Speculators can use anticipated interest rate movements to forecast exchange rate movements. They may decide to purchase securities in particular countries because of their expectations about currency movements, since their yield will be affected by changes in a currency’s value. These purchases of securities require an exchange of currencies, which can immediately affect the equilibrium value of exchange rates. If a forecast of interest rates by a respected economist was already anticipated by market participants or is not different from investors’ original expectations, an announced forecast does not provide new information. Thus, there would be no reaction by investors to such an announcement, and exchange rates would not be affected. 8. Factors Affecting Exchange Rates. What factors affect the future movements  in the value of the euro against the dollar? ANSWER: The euro’s value could change because of the balance of trade, which reflects more U.S. demand for European goods than the European demand for U.S. goods. The capital flows between the U.S. and Europe will also affect the U.S. demand for euros and the supply of euros for sale (to be exchanged for dollars). 9. Interaction of Exchange Rates. Assume that there are substantial capital flows among the United Kingdom, the United States, and the Euro area. If interest rates in the United Kingdom declines to a level below the U.S. interest rate, and inflationary expectations remain unchanged, how could this affect the value of the euro against the U.S. dollar? How might this decline in the United Kingdom’s interest rate possibly affect the value of the British pound against the euro? ANSWER: If interest rates in the UK decline, there may be an increase in capital flows from the UK to the U.S. In addition, U.S. investors may attempt to capitalize on higher U.S. interest rates, while U.S. investors reduce their investments in UK’s securities. This places downward pressure on the pond’s value. Euro investors who previously invested in the UK may shift to the U.S. Thus, the increased demand for dollars by euros may increase the value of the dollar in relation to the euro. 10. Trade Deficit Effects on Exchange Rates. Every month, the UK trade deficit figures are announced. Foreign exchange traders often react to this announcement and even attempt to forecast the figures before they are announced. a. Why do you think the trade deficit announcement sometimes has such an impact on foreign exchange trading? ANSWER: The trade deficit announcement may provide a reasonable forecast of future trade deficits and therefore has implications about supply and demand conditions in the foreign exchange market. For example, if the trade deficit was larger than anticipated, and is expected to continue, this implies that the UK demand for foreign currencies may be larger than initially anticipated. Thus, the pound would be expected to weaken. Some speculators may take a position in foreign currencies immediately and could cause an  immediate decline in the pound. b. In some periods, foreign exchange traders do not respond to a trade deficit announcement, even when the announced deficit is very large. Offer an explanation for such a lack of response. ANSWER: If the market correctly anticipated the trade deficit figure, then any news contained in the announcement has already been accounted for in the market. The market should only respond to an announcement about the trade deficit if the announcement contains new information. 11. Comovements of Exchange Rates. Explain why the value of the British pound against the dollar will not always move in tandem with the value of the euro against the dollar. ANSWER: The euro’s value changes in response to the flow of funds between the U.S. and the countries using the euro or their currency. The pound’s value changes in response to the flow of funds between the U.S. and the U.K. As the UK economy is different from the euro economy, economic events will have a different impact, the events themselves may also differ. Assuming that the market is efficient and that the exchange rates do move according to relevant information the fact that the relevant information sets differ justifi es a less than perfect correlation of movements. That they are similar is understandable as although different, the differences are not that great. 12. Factors Affecting Exchange Rates. In the 1990s, Russia was attempting to import more goods but had little to offer other countries in terms of potential exports. In addition, Russia’s inflation rate was high. Explain the type of pressure that these factors placed on the Russian currency. ANSWER: The large amount of Russian imports and lack of Russian exports placed downward pressure on the Russian currency. The high inflation rate in Russia also placed downward pressure on the Russian currency. 13. National Income Effects. Analysts commonly attribute the appreciation of a currency to expectations that economic conditions will strengthen. Yet, this chapter suggests that when other factors are held constant, increased national income could increase imports and cause the local currency to weaken. In reality, other factors are not constant. What other factor is likely to be affected by increased economic growth and could place upward  pressure on the value of the local currency? ANSWER: Interest rates tend to rise in response to a stronger economy, and higher interest rates can place upward pressure on the local currency (as long as there is not offsetting pressure by higher expected inflation). 14. Factors Affecting Exchange Rates. If the Asian countries experience a decline in economic growth (and experience a decline in inflation and interest rates as a result), how will their currency values (relative to the British pound) be affected? ANSWER: A relative decline in Asian economic growth will reduce Asian demand for UK products, which places upward pressure on Asian currencies. However, given the change in interest rates, Asian corporations with excess cash may now invest in the UK or other countries, thereby increasing the demand for pounds. Thus, a decline in Asian interest rates will place downward pressure on the value of the Asian currencies. The overall impact depends on the magnitude of the forces just described. 15. Impact of Crises. Why do you think most crises in countries (such as the Asian crisis) cause the local currency to weaken abruptly? Is it because of trade or capital flows? ANSWER: Capital flows have a larger influence. In general, crises tend to cause investors to expect that there will be less investment in the country in the future and also cause concern that any existing investments will generate poor returns (because of defaults on loans or reduced valuations of stocks). Thus, as investors liquidate their investments and convert the local currency into other currencies to invest elsewhere, downward pressure is placed on the local currency. 16. How do you think weaker economic conditions would affect trade flows in a Developing Country? How would weaker conditions affect the value of its currency (holding other factors constant)? How do you think interest rates would be affected? ANSWER: Weak world economic conditions would result in a reduced demand for foreign products, wh ich results in a decline in the demand for foreign currencies, particularly the currencies of developing countries that rely on exports. Taking the US as the dominant economy there would therefore  be downward pressure on currencies relative to the dollar (upward pressure on the dollar’s value). The lower U.S. interest rates that accompany weaker economic conditions should reduce the capital flows to the U.S., which place downward pressure on the value of the dollar. Advanced Questions 17. Measuring Effects on Exchange Rates. Tarheel Co. plans to determine how changes in UK and euro real interest rates will affect the value of the British pound. a. Describe a regression model that could be used to achieve this purpose. Also explain the expected sign of the regression coefficient. ANSWER: Various models are possible. Based on the model above, the regression coefficient is expected to have a negative sign. A relatively high real interest rate differential would likely cause a weaker euro value, other things being equal. An appropriate model would also include other independent variables that may influence the percentage change in the peso’s value. b. If Tarheel Co. thinks that the existence of a quota in particular historical periods may have affected exchange rates, how might this be accounted for in the regression model? ANSWER: A dummy variable could be included in the model, assigned a value of one for periods when a quota existed and a value of zero when it did not exist. This answer requires some creative thinking, as it is not drawn directly from the text. 18. Factors Affecting Exchange Rates. Mexico tends to have much higher inflation than the United States and also much higher interest rates than the United States. Inflation and interest rates are much more volatile in Mexico than in industrialized countries. The value of the Mexican peso is typically more volatile than the currencies of industrialized countries from a U.S. perspective; it has typically depreciated from one year to the next, but the degree of depreciation has varied substantially. The bid/ask spread tends to be wider for the peso than for currencies of industrialized countries. a. Identify the most obvious economic reason for the persistent depreciation  of the peso. ANSWER: The high inflation in Mexico places continual downward pressure on the value of the peso. b. High interest rates are commonly expected to strengthen a country’s currency because they can encourage foreign investment in securities in that country, which results in the exchange of other currencies for that currency. Yet, the peso’s value has declined against the dollar over most years even though Mexican interest rates are typically much higher than U.S. interest rates. Thus, it appears that the high Mexican interest rates do not attract substantial U.S. investment in Mexico’s securities. Why do you think U.S. investors do not try to capitalize on the high interest rates in Mexico? ANSWER: The high interest rates in Mexico result from expectations of high inflation. That is, the real interest rate in Mexico may not be any higher than the U.S. real interest rate. Given the high inflationary expectations, U.S. investors recognize the potential weakness of the peso, which could more than offset the high interest rate (when they convert the pesos back to dollars at the end of the investment period). Therefore, the high Mexican interest rates do not encourage U.S. investment in Mexican securities, and do not help to strengthen the value of the peso. c. Why do you think the bid/ask spread is higher for pesos than for currencies of industrialized countries? How does this affect a U.S. firm that does substantial business in Mexico? ANSWER: The bid/ask spread is wider because the banks that provide foreign exchange services are subject to more risk when they maintain currencies such as the peso that could decline abruptly at any time. A wider bid/ask spread adversely af fects the U.S. firm that does business in Mexico because it increases the transactions costs associated with conversion of dollars to pesos, or pesos to dollars. 19. Aggregate Effects on Exchange Rates. Assume that the United Kingdom invests heavily in government and corporate securities of Country K. In addition, residents of Country K invest heavily in the United Kingdom. Approximately  £10 billion worth of investment transactions occur between these two countries each year. The total pound value of trade transactions per year is about  £8 million. This information is expected to also hold in the future. Because your firm exports goods to Country K, your job as  international cash manager requires you to forecast the value of Country K’s currency (the â€Å"krank†) with respect to the pound. Explain how each of the following conditions will affect the value of the krank, holding other things equal. Then, aggregate all of these impacts to develop an overall forecast of the krank’s movement against the pound. a. UK inflation has suddenly increased substantially, while Country K’s inflation remains low. ANSWER: Increased UK demand for the krank. Decreased supply of kranks for sale. Upward pressure in the krank’s value. b. UK interest rates have increased substantially, while Country K’s interest rates remain low. Investors of both countries are attracted to high interest rates. ANSWER: Decreased UK demand for the krank. Increased supply of kranks for sale. Downward pressure on the krank’s value. c. The UK income level increased substantially, while Country K’s income level has remained unchanged. ANSWER: Increased UK demand for the krank. Upward pressure on the krank’s value. d. The UK is expected to impose a small tariff on goods imported from Country K. ANSWER: The tariff will cause a decrease in the United Kingdom’ desire for Country K’s goods, and will therefore reduce the demand for kranks for sale. Downward pressure on the krank’s value. e. Combine all expected impacts to develop an overall forecast. ANSWER: Two of the scenarios described above place upward pressure on the value of the krank. However, these scenarios are related to trade, and trade flows are relatively minor between the UK and Country K. The interest rate scenario places downward pressure on the krank’s value. Since the interest rates affect capital flows and capital flows dominate trade flows between the UK and Country K, the interest rate scenario should overwhelm all other scenarios. Thus, when considering the importance of implications of all scenarios, the krank is expected to depreciate. 20. Speculation. Blue Demon Bank expects that the Mexican peso will depreciate against the dollar from its spot rate of $.15 to $.14 in 10 days. The following interbank lending and borrowing rates exist: U.S. dollar Mexican peso Lending Rate 8.0% 8.5% Borrowing Rate 8.3% 8.7% Assume that Blue Demon Bank has a borrowing capacity of either $10 million or 70 million peos in the interbank market, depending on which currency it wants to borrow. a. How could Blue Demon Bank attempt to capitalize on its expectations without using deposited funds? Estimate the profits that could be generated from this strategy. ANSWER: Blue Demon Bank can capitalize on its expectations about pesos (MXP) as follows: 1. Borrow MXP70 million 2. Convert the MXP70 million to dollars: MXP70,000,000 Ãâ€" $.15 = $10,500,000 3. Lend the dollars through the interbank market at 8.0% annualized over a 10-day period. The amount accumulated in 10 days is: $10,500,000 Ãâ€" [1 + (8% Ãâ€" 10/360)] = $10,500,000 Ãâ€" [1.002222] = $10,523,333 4. Repay the peso loan. The repayment amount on the peso loan is: MXP70,000,000 Ãâ€" [1 + (8.7% Ãâ€" 10/360)] = 70,000,000 Ãâ€" [1.002417]=MXP70,169,167 5. Based on the expected spot rate of $.14, the amount of dollars needed to repay the peso loan is: MXP70,169,167 Ãâ€" $.14 = $9,823,683 6. After repaying the loan, Blue Demon Bank will have a speculative profit (if its forecasted exchange rate is accurate) of: $10,523,333 – $9,823,683 = $699,650 b. Assume all the preceding information with this exception: Blue Demon Bank expects the peso to appreciate from its present spot rate of $.15 to $.17 in 30 days. How could it attempt to capitalize on its expectations without using deposited funds? Estimate the profits that could be generated from this strategy. ANSWER: Blue Demon Bank can capitalize on its expectations as follows: 1. Borrow $10 million 2. Convert the $10 million to pesos (MXP): $10,000,000/$.15 = MXP66,666,667 3. Lend the pesos through the interbank market at 8.5% annualized over a 30-day period. The amount accumulated in 30 days is: MXP66,666,667 Ãâ€" [1 + (8.5% Ãâ€" 30/360)] = 66,666,667 Ãâ€" [1.007083] = MXP67,138,889 4. Repay the dollar loan. The repayment amount on the dollar loan is: $10,000,000 Ãâ€" [1 + (8.3% Ãâ€" 30/360)] = $10,000,000 Ãâ€" [1.006917] = $10,069,170 5. Convert the pesos to dollars to repay the loan. The amount of dollars to be received in 30 days (based on the expected spot rate of $.17) is: MXP67,138,889 Ãâ€" $.17 = $11,413,611 6. The profits are determined by estimating the dollars available after repaying the loan: $11,413,611 – $10,069,170 = $1,344,441 21. Speculation. Diamond Bank expects that the Singapore dollar will depreciate against the euro from its spot rate of 0.48 euros to 0.45 euros in 60 days. The following interbank lending and borrowing rates exist: Lending Rate euro Singapore dollar 7.0% 22.0% Borrowing Rate 7.2% 24.0% Diamond Bank considers borrowing 10 million Singapore dollars in the interbank market and investing the funds in euros for 60 days. Estimate the profits (or losses) that could be earned from this strategy. Should Diamond Bank pursue this strategy? ANSWER: Borrow S$10,000,000 and convert to euros: S$10,000,000 Ãâ€" 0.48 = 4,800,000 euros Invest funds for 60 days. The rate earned in the euros for 60 days is: 7% Ãâ€" (60/360) = 1.17% Total amount accumulated in 60 days: 4,800,000 euros Ãâ€" (1 + .0117) = 4,856,160 euros Convert euros back to S$ in 60 days: 4,856,160 /0.45 = S$10,791,467 The rate to be paid on loan is: .24 Ãâ€" (60/360) = .04 Amount owed on S$ loan is: S$10,000,000 Ãâ€" (1 + .04) = S$10,400,000 This strategy results in a profit: S$10,791,467 – S$10,400,000 = S$391,467 Diamond Bank should pursue this strategy. Blades plc Case Study As the chief financial officer of Blades plc Ben Holt is pleased that his current system of exporting â€Å"Speedos† to Thailand seems to be working well. Blades’ primary customer in Thailand, a retailer called Entertainment Products, has committed itself to purchasing a fixed number of Speedos annually for the next three years at a fixed price denominated in baht, Thailand’s currency. Furthermore, Blades is using a Thai supplier for some of the components needed to manufacture Speedos. Nevertheless, Holt is concerned about recent developments in Asia. Foreign investors from various countries had invested heavily in Thailand to take advantage of the high interest rates there. As a result of the weak economy in Thailand, however,  many foreign investors have lost confidence in Thailand and have withdrawn their funds. Ben Holt has two major concerns regarding these developments. First, he is wondering how these changes in Thailand’s economy could affect the value of the Thai baht and, consequently, Blades. More specifically, he is wondering whether the effects on the Thai baht may affect Blades even though its primary Thai customer is committed to Blades over the next three years. Second, Holt believes that Blades may be able to speculate on the anticipated movement of the baht, but he is uncertain about the procedure needed to accomplish this. To facilitate Holt’s understanding of exchange rate speculation, he has asked you, Blades’ financial analyst, to provide him with detailed illustrations of two scenarios. In the first, the baht would move from a current level of  £0.0147 to  £0.0133 within the next 30 days. Under the second scenario, the baht would move from its current level to  £0.0167 within the next 30 days. Based on Holt’s needs, he has provided you with the following list of questions to be answered: 1. How are percentage changes in a currency’s value measured? Illustrate your answer numerically by assuming a change in the Thai baht’s value from a value of  £0.0147 to  £0.0173. 2. What are the basic factors that determine the value of a currency? In equilibrium, what is the relationship between these factors? 3. How might the relatively high levels of inflation and interest rates in Thailand have affected the baht’s value? (Assume a constant level of UK inflation and interest rates.) 4. How do you think the loss of confidence in the Thai baht, evidenced by the withdrawal of funds from Thailand, affected the baht’s value? Would Blades be affected by the change in value, given the primary Thai customer’s commitment? 5. Assume that Thailand’s central bank wishes to prevent a withdrawal of funds from its country in order to prevent further changes in the currency’s value. How could it accomplish this objective using interest rates? 6. Construct a spreadsheet illustrating the steps Blades’ treasurer would need to follow in order to speculate on expected movements in the baht’s value over the next 30 days. Also show the speculative profit (in pounds) resulting from each scenario. Use both of Ben Holt’s examples to illustrate possible speculation. Assume that Blades can borrow either  £7 million or the baht equivalent of this amount. Furthermore, assume that the following short-term interest rates (annualized) are available to Blades: Currency Dollars Thai baht Lending Rate 8.10% 14.80% Borrowing Rate 8.20% 15.40% Solution to Continuing Case Problem: Blades. 1. How are percentage changes in a currency’s value measured? Illustrate your answer numerically by assuming a change in the Thai baht’s value from a value of  £0.0147 to  £0.0173. ANSWER: The percentage change in a currency’s value is measured as follows: % S St St 1 1 where S denotes the spot rate, and St 1 denotes the spot rate as of the earlier date. A positive percentage change represents appreciation of the foreign currency, while a negative percentage change represents depreciation. In the example provided, the percentage change in the Thai baht would be: = 17.69%  £0.0173 –  £0.0147  £0.0147 That is, the baht would be expected to appreciate by 17.69%. 2. What are the basic factors that determine the value of a currency? In equilibrium, what is the relationship between these factors? ANSWER: The basic factors that determine the value of a currency are the supply of the currency for sale and the demand for the currency. A high level of supply of a currency generally decreases the currency’s value, while a high level of demand for a currency increases its value. In equilibrium, the supply of the currency equals the demand for the currency. 3. How might the relatively high levels of inflation and interest rates have affected the baht’s value? (Assume a constant level of UK inflation and interest rates.) ANSWER: The baht would be affected both by inflation levels and interest rates in Thailand relative to levels of these variables in the UK. A high level of inflation tends to result in currency depreciation, as it would increase the Thai demand for UK goods, causing an increase in the Thai demand for dollars. Furthermore, a relatively high level of Thai inflation would reduce the UK demand for Thai goods, causing an increase in the supply of baht for sa le. Conversely, the high level of interest rates in Thailand may cause appreciation of the baht relative to the dollar. A relatively high level of interest rates in Thailand would have rendered investments there more attractive for UK investors, causing an increase in the demand for baht. Furthermore, UK securities would have been less attractive to Thai investors, causing an increase in the supply of dollars for sale. However, investors might be unwilling to invest in baht-denominated securities if they are concerned about the potential depreciation of the baht that could result from Thailand’s inflation. 4. How do you think the loss of confidence in the Thai baht, evidenced by the withdrawal of funds from Thailand, affected the baht’s value? Would Blades be affected by the change in value, given the primary Thai customer’s commitment? ANSWER: In general, a depreciation in the foreign currency results when investors liquidate their investments in the foreign currency, increasing the supply of its currency for sale. Blades would probably be affected by the change in value even though its Thai customer’s commitment, as the sales are denominated in baht. Thus, the depreciation in the baht would have caused a conversion of the baht revenue into fewer pounds. 5. Assume that Thailand’s central bank wishes to prevent a withdrawal of funds from its country in order to prevent further changes in the currency’s value. How could it accomplish this objective using interest rates? ANSWER: If Thailand’s central bank wishes to prevent further depreciation in the baht’s value, it would attempt to increase the level of interest rates in Thailand. In turn, this would increase the demand for Thai baht by UK investors, as Thai securities would now seem more attractive. This would place upward pressure on the currency’s value. However, the high interest rates could reduce local borrowing and spending. 6. Construct a spreadsheet illustrating the steps Blades’ treasurer would need to follow in order to speculate on expected movements in the baht’s value over the next 30 days. Also show the speculative profit (in dollars) resulting from each scenario. Use both of Ben Holt’s examples to illustrate possible speculation. Assume that Blades can borrow either  £10 million or the baht equivalent of this amount. Furthermore, assume that the following short-term interest rates (annualized) are available to Blades: Currency Dollars Thai baht Lending Rate 8.10% 14.80% Borrowing Rate 8.20% 15.40% ANSWER: (See spreadsheet attached.) Depreciation of the Baht from  £0.0147 to  £0.0133 1. Borrow Thai baht ( £10,000,000/0.0147) 2. Convert the Thai baht to pounds 680,272,109 bahtÃâ€"  £0.0147). 3. Lend the pounds at 8.10% annualized, which represents a 0.68% return over the 30-day period [computed as 8.10% Ãâ€" (30/360)]. After 30 days, Blades would receive ( £10,000,000 Ãâ€" (1 + .0068)) 4. Use the proceeds of the dollar loan repayment (on Day 30) to repay the baht borrowed. The annual interest on the baht borrowed is 15.40%, or 1.28% over the 30-day period [computed as 15.40% Ãâ€" (30/360)]. The total baht amount necessary to repay the loan is therefore (680,272,109 Ãâ€" (1 + .0128)) 680,272,109 10,000,000 10,068,000.00 688,979,592 5. Number of pounds necessary to repay baht loan (688,979,592 bahtÃâ€"  £0.0133) 9,163,429 6. Speculative profit ( £10,068,000 –  £9,163,429)  £904,571 Appreciation of the Baht from  £0.0147 to  £0.0167 1. Borrow pounds. 2. Convert the pounds to Thai baht ( £10 million/ £0.0147). 3. Lend the baht at 14.80% annualized, which represents a 1.23% return over the 30-day period [computed as 14.80% Ãâ€" (30/360)]. After 30 days, 10,000,000.00 680,272,109 Blades would receive (THB 680,272,109Ãâ€" (1 + .0123)) 4. Use the proceeds of the baht loan repayment (on Day 30) to repay the dollars borrowed. The annual interest on the dollars borrowed is 8.20%, or 0.68% over the 30-day period [computed as 8.20% Ãâ€" (30/360)]. The total dollar amount necessary to repay the loan is therefore ( £10,000,000 Ãâ€" (1 + .0068)) 5. Number of baht necessary to repay dollar loan ( £10,068,000.00/ £0.0167) 6. Speculative profit (THB688,639,456– THB602,874,251) 7. Dollar equivalent of speculative profit (THB 85,765,205Ãâ€" £0.0167) 688,639,456 10,068,000.00 602,874,251 85,765,205 1,432,278 Blades would be ill advised to speculate in this way as it is not a specialist in the financial markets and does not have specialist abilities or information to use. These actions are thyerfore little better than gambling and are highly ill advised. Small Business Dilemma Assessment by the Sports Exports Company of Factors That Affect the British Pound’s Value 1. Given Jim’s expectations, forecast whether the pound will appreciate or depreciate against the euro over time. ANSWER: The pound should depreciate because the British inflation is expected to be higher than the euro. This could cause a shift in trade flows that would place downward pressure on the pound’s value. The interest rate movements of both countries are expected to be similar for both countries. Therefore, there should not be any adjustment in the capital flows between the two countries. 2. Given Jim’s expectations, will the Sports Exports Company be favourably or unfavourably affected by the future changes in the value of the pound? ANSWER: The Sports Exports Company will be unfavourably affected, because depreciation in the British pound will cause the pound receivables to convert into fewer euros.

Possible Violation of the Eighth Amendment Essay

The article I found was written on March 14, 2011 about the controversy of the constitutionality of the treatment of Private Manning. There have been many articles about this topic, but the one I looked at was an editorial in the pages of the New York Times. Private Manning was convicted of leaking restricted military files to WikiLeaks and was arrested on the twenty sixth of May in Iraq. Since then he has been imprisoned at Quantico in Virginia and has been treated as the some of the prisoners at Abu Ghraib have. For example, he is in solitary confinement twenty three out of twenty four hours, on the twenty four hours his ankles must be shackled on the way to and on the way back from the exercise room. Finally, he is forced to sleep naked and when inspection comes in the morning, he is naked throughout that too; only when it is over is he permitted to have his clothes back. The controversy is whether this is treatment for cruel and unusual punishment; also known as the eighth amendment. I think this treatment of Private Manny may very well lead to a court case over the eighth amendment. In my opinion, there was most definitely a violation of the eighth amendment, I do not condone torture in any sense and consider not only despicable and disgraceful on American soil, but unconstitutional, and the treatment of Private Manning falls under this position. Being forced naked and in isolation for such extended periods of time is torture. Torture is cruel and, most definitely, unusual punishment especially considering the non-severity of Private Manning’s actions.

Forensic Accounting Assignment Example | Topics and Well Written Essays - 250 words

Forensic Accounting - Assignment Example There has also been growth in the demand for the services of forensic accountants as there is increase in the success rates of investigations that are conducted by forensic accounting (Zimbelman, 2012). There are many engagements of forensic accountants’ services. Computer forensic investigation has trended with an expected of 83% great demand in the next years with the mean anticipated to have a mean of 20% increase (Taylor, 2011). In misinterpretation of financial statements, there have been engagements of forensic accountants or recognition of revenue and valuation of assets carried out at a fair value. Latest events in the field are the increase in demand both in regional and international basis has pushed for more education focusing on the field. The demand has currently led to hiring of consultants from the other countries to detect and prevent fraud. Forensic accounting is a career and employment generation filed due to the activities that are performed in the field. The field is a carrier as the activities that are performed are those that are related to accounting career and forensic science (Zimbelman, 2012). The types of services that are performed such as financial data analysis, business valuation, maintaining documents and damage assessment make the field a career

Book summary Essay Example | Topics and Well Written Essays - 500 words

Book summary - Essay Example Kracha is not hitherto focused to lead an American life. During his search he meets Zuska ,a young married woman and falls in love with her. Unfortunately he spends all his money on her birthday by buying her whiskey but does not win her love. His extravagance nature forces him to proceed the rest of the journey on foot. At White Haven, he meets his brother and a Slovak Immigrant Puskin and Dubik respectively. Dubik develops a strong relationship and become best friends. As a result he is Dubik’s best man during his wedding.Even after Dubik moves to Andrews steel mill he encourages Kracha to join him. Kracha emulates the American lifestyle of power and money as he despises his wife-Elena consequently; ignoring her existence for over two years with the hope of winning Zuska’s love .Kracha ignores Elena’s feeling and declares Zuska as her second wife prompting the Americans to retract from purchasing from Kracha’s butcher shop. As a result the business falls and resolves to drinking revealing showing his incompetence in the business as opposed to what is expected in the US .Kracha ends up losing everything including his second wife. In contrast the second immigrant, Mike Dobrejcak is educated and is more accustomed to the Americans way of life. However mike falls in love with Kracha’s daughter, Mary .At that time she was working for an American family that resides near the beach. The two marry and live a happy life. Unlike other immigrants Mike’s education equips him with the necessity of making his family to live the best life and consequently the luxuries that come with it. However, his job does not support his desire. Unfortunately his mysterious death prompts a series of difficulties as the wife has to take care of their daughter. Thereafter his wife and daughter suffer influenza and she could not visit the sanatorium as

Advantages and disadvantages of a testing system in education Research Proposal

Advantages and disadvantages of a testing system in education - Research Proposal Example Pedagogy depends on the capability of a teacher to test student's knowledge of the material.Testing serves a number of functions,which are the measurement of progress a student is making,and the provision of an incentive for a student to learn the material Without testing, teachers would rely on faith that their students have learning as one of their goals; however, this assumption, especially in the era of compulsory education, is simply out of touch with reality. Having established that testing is a necessary component of teaching, the question then becomes what kinds of testing are most effective in achieving the established ends of teaching, and how does one design a test that achieves these ends. To answer this question, one must consider the context (and the material) being taught and, instead of relying on generalizations, decide based on the costs of efficiency versus effectiveness in measuring genuine knowledge of the material. Although some tend to focus more on efficiency (standardized testing) and others on effectiveness (non-standardized testing), it seems the most appropriate, wide-reaching solution to the problem lies somewhere in the middle. A standardized test is a measurement instrument that is distributed and scored in a standard manner; that is, it is constructed with a particular set of conditions, questions, and scoring procedures that do not differ between individuals (Popham). Popular methods used on a standardized test include multiple-choice questions, which can be quickly and objectively scored on a large scale, making them cost-efficient and time-efficient to use. In contrast, a non-standardized test is a measurement instrument that gives different test takers a different exam, or relies on subjective or partially subjective criteria in the scoring of answers given on a completed test. Common methods used in non-standardized testing are essay questions, mathematical calculations, and open-ended responses. One advantage of standardize d testing is that the results of such tests are empirically useful in terms of a large scale. For instance, public policy decisions can be made by looking at decreasing state-administered tests in public schools if deficiencies in a particular subject are patent. Also, because scores are objectively scored and documented, it is possible to demonstrate validity and reliability with a controlled experiment. If two children from the same classroom score in the same range, it could be said the test is a valid instrument for measuring knowledge. When a test is statistically reliable, it can be shown to be replicable on a larger scale (Kuncel and Hezlett). Aggregation is a term that refers to the collection of scores on the same test from many different test takers; this provides a mean, or benchmark, against which an individual test taker can be evaluated comparatively. This can provide useful information above and beyond subjective assessments from individuals in that elimination based on standardized scores can narrow a search for individuals based on objective criteria and thus make a search procedure more efficient in a useful sort of way. In addition, it is often said this use of objective standards for comparing individuals is fairer than other methods, which may take into account other factors that use subjective methods. Critics of standardized testing believe it is restrictive in that it necessarily confines and segments knowledge into rigid categories, focusing more on broad swathes of reading and math skills, as opposed to initiative, creativity, imagination, conceptual thinking, curiosity, effort, irony, judgment, commitment, nuance, good will, ethical reflection, or a host of other valuable dispositions and attributes†, which some believe are virtues for accomplished students and successful adults that are simply ignored under the standardized testi

Lab report on deception Example | Topics and Well Written Essays - 1500 words

On deception - Lab Report Example However, the administering of even these scientifically-based tests has come under increasing fire. For example, polygraph results were barred from the trial of a U.S. trial of a federal judge as recently as December of 2008 (Assoicated Press, 2008). If such a scientifically-based device has come under such scrutiny and has been routinely barred from legal proceedings, it begs the question of whether an unaided human can detect deception merely by observing the subject. In their 1996 study, Vrij and Semin examined this question by recruiting not only college students, but also subjects from a variety of fields thought to be trained and experienced in lie detection (police patrol officers, prison guards, customs officials, etc.) as well as those constantly exposed to an environment based on lies and deception (prisoners). It was their hypothesis that law enforcement officials would be better at lie detection than "normal people" such as college students and that the criminals would have superior abilities to those of law enforcement. All of the subjects reported that they considered themselves highly experienced at detecting deception (Vrij & Semin, 1996). Vrij and Semin administered their study through a series of questionnaires administered at the subjects' places or work or incarceration. These questionnaires contained questions ranging over 16 nonverbal cues commonly associated with deception and concluded with the subjects rating themselves on their ability to detect deception in others on a 7-point scale. The results were compiled by group (college student, law enforcement, or criminal) and then analysed for accuracy. As predicted, the criminals exhibited the greatest level of accuracy in correctly identifying nonverbal cues of deception. It was also found that there was not a significant difference between the accuracy rates of law enforcement and college students, indicating that those considering themselves professional lie detectors fell victim to the same misconceptions on nonverbal cues as a lay person (Vrij & Semin, 1996). While Vrij and Semin's study does provide useful data that professional lie detectors have no superior knowledge of deceptive nonverbal cues than the rest of us, it does lack in that none of the subjects were actually tested in their ability to detect deception. This study will address that lack by actually testing whether or not subjects can detect deception through nonverbal cues, particularly by focusing on voice pitch. It is predicted that such attention to nonverbal cues will detect deception at a higher rate than chance and that those observers relying on voice pitch as a deceptive cue will be more accurate than observers relying on other nonverbal cues. Methods A pool of 761 subjects was recruited consisting of 454 females and 307 males who were informed that they would be participating in an undergraduate psychology tutorial study. These subjects ranged in age from 17 to 56 years with a mean age of 19.77 years and a standard deviation of 2.58 years. For this study, each subject was instructed to tell a story to another subject. This narrative could either be true or false and the observer

Reading Culture Essay Example | Topics and Well Written Essays - 1000 words

Reading Culture - Essay Example According to Foucault, this is so effective and in fact the guard does not have to always be present. Foucault argues using this illusion that the structure of power in the society resembles the one existing at the Panopticon. She continues to assert that the power of control the manner in which society acts originates from institution formation. The formed institutions then form kinds of behaviors considered wrong or right. As people are raised and age, they learn the norms of the institutions and remain vigilant not to go against them. From this, people have a perception that there is one empowered authoritative figure that exercises agency over the general society. But just like Panopticon that does not need a guard to be present to remain effective, the society institutions do not need an empowered authoritative figure. In essence, all members of the society act as authority since everyone indicate the significance of following the institutional norms by performing them. In fact Foucault asserts that there is no need any longer for an empowered authoritative figure since the society system is already set, there is the presence of illusion. In his essay, Foucault continues to say that power continues due to the application of discipline. She explains hat discipline is a technique used in exercising power. We can therefore say that discipline is basically a tool that is used to allow continuation of or strengthen power. People fear violating the norms and rules not just because they were generated by something or someone with power, but they are afraid to do so because they know that violating the norms and rules would make them victims of disciplinary sanction. John Berger in his essay Ways of seeing, Berger argues that the manner in which people perceive or view art is personally dictated by them, but by those who are seen as the experts and elites of art. This is an illustration of Panopticism in that most people perceive art in the manner in which an assu med authority informs them. In his essay, Berger demonstrates the way in which catalogues of art emphasize the significance of the background information that is identified with the art work rather than the factual meaning of art itself. He continues to say that art catalogues do not deal with the image meaning, but rather deals with the people who had the painting commissioned, the likely date of the art, the legal squabbles, people who own the art, and the families of the owners of the art. This means that the perceived experts of art only focus on the painting’s background information basically to have the painting assessed. This is because these perceived art experts writing the catalogues are also the perceived institution authorities by majority of people. Hence, just like Panopticon, people look at art the way they feel subject authority would prefer them to perceive it. Berger’s work demonstrates the power exhibited by an empowered authoritative figure in the s ystem of Panopticon. However, the art critics and elites that he refers to in his writing do not simply hold power for reasons of being perceived as the authority. Power and authority are, through the use of discipline, demonstrated. The writings of Laura Kipnis expound the idea of Panopticism and demonstrate the manner in whi

Early childhood education Research Paper Example | Topics and Well Written Essays - 1750 words

Early childhood education - Research Paper Example Early Childhood Education (ECD) is one of the substantial and essential components for the students that help them grow in every field of their lives that can lead them to the attainment of success, status, and prosperity. With the advancements and developments that the world is encountering, the educational and learning curriculum and the teaching methods have improved and enhanced in a continuous way that have left an indelible impression on the achievement of the student’s progress in a productive and positive manner Education is the learning, knowledge, insight and the information that students get in their academic levels that can provide them with an understanding about how and in which direction to lead their lives. Moreover, quality in education helps the students to make their lives in a much better position as they have the power of knowledge. Due to such importance, that education holds in itself, education, and predominantly early childhood education is one of the prime concerns that cannot come under ignorance. Nonetheless, like any other sphere of influence, the area of education also has numerous issues that the students’ experience in their academic lives (Saracho & Spodek, pp. 1-4). Besides, students have a strong need to develop specific skills that takes account of problem solving, analytical and critical thinking skills in order to survive and cope up the world of global competition. Early childhood educators play an integral role in setting the underpinning for developing the future leaders of the planet. However, with respect to the broad spectrum of early childhood education, the primary and first question that comes to mind is regarding the program of study of the students. Therefore, the thesis statement of the dissertation is â€Å"when designing the curriculum for the preschool of young child’s classroom, what are the prime concern areas, concepts or subjects to focus that can lead to the progress of the student in a most constructive way†. Literature Review According to various researches, it has come under notice that the physical environment of the classroom plays a significant role in the learning styles of the students that has failed to come under notice and ignored to great extent. In addition, these studies conclude that the prime focus of the educators or the teachers is only on pedagogy, content of the core curriculum and interpersonal dynamics, which eradicates their focus from the physical contexts, which is one of the imperative contributors of teaching and learning. The physical environment of the classroom includes the classroom setting as well as the outdoor setting. However, these studies conclude that by changing the classroom environment that persuade and endorse play would facilitate in escalating and promoting literacy activities among children during their early childhood or preschool years (Essa, pp. 189-191). In addition, the environment ought to be such that m ust provide opportunities to the children that can lead them to explore and learn. Studies also exhibit that the arrangement of shelves, comfortable and sturdy furniture, learning materials displayed on shelved and classroom design on an overall basis when taken into strong consideration demonstrates to be very fruitful (Essa, pp. 192-195). According to some schools of thoughts, it has come under observation that teachers and educators of early childhood is another vital and crucial facet that must have a proper background knowledge and information regarding the early childhood education or child development. This is because courses related to such studies provide massive emphasis on the development of the child and the

Staffing Organizations-Part 2 Essay Example | Topics and Well Written Essays - 1500 words

Staffing Organizations-Part 2 - Essay Example The Gourmet Coffee Shop is a small organization and does not have the budget or staff to run its own staffing purposes and? therefore? an outside recruitment group can give the coffee shop with a full level of service? For example these agencies can help in advertising, identifying recruitment needs, along with background checks, examining the references of candidates etc. Using external recruitment agencies can be a little expensive, but on the other hand? it is the most sensible decision for company that does not have its own recruitment purpose. A recruitment financial plan will be formulated, which would include the staffing price, equipment and supplies cost along with salaries and benefits. After the recruiting and organizing period is complete, the next strategy of the coffee shop will be to choose â€Å"targeted versus open recruitment†, as the business is seeking particular individuals with certain, skills, knowledge, capacity and other features. Utilizing the open re cruitment method will entail a high quantity of candidates making the selection procedure exceptionally difficult. 2. Create a Communication Message (Realistic, Brand or Targeted) to Attract Applicants to the Open Position. When creating a communication message, it needs to be focused on being attractive and appealing to the target applicants. The main goal here is to capture the attention of potential applicants. Once this is achieved, the next step is to maintain their attention. This stage consists of the communication medium and message notifying the vacancy of jobs. â€Å"The   communication   process   consists   of   a   message   being   sent   and   received.  The message maybe verbal or non-verbal.   The   same   basic   principles   apply   whether   humans,   animals,   other   forms of   life,   or   combinations   of   these   are   involved† (The Communication Process, n.d. par.1). The message can be reali stic, targeted or branded. The medium for distribution can be a job posting, potential supervisors and peers? and extra written documents. These messages have to be expressed through some medium to the recipient. It is necessary that this message should be recognized by the recipient in the same meaning as intended by the sender. He or she must react in a time structure. Therefore, the communication is a two way method and is incomplete without a feedback from the receiver to the correspondent on how well the message is decoded by him. 3. Select the Communication Medium for the Recruitment Effort and Explain why that Method was Chosen Over Others. Communication can happen through several mediums. These mediums are assembled into four main types, which are verbal, written, visual communications and nonverbal. Whereas a number of mediums of communication, for instance talking, are much clearer than others, such as body language, every medium is significant for communication among peop le. In this case the select physical media. Physical media refers to a channel where the individual who is talking can be heard and seen by the viewers. The entire point here is to be capable of not only hearing the messages but also to watching and interpreting the body language. This does not require being two-way channels. In certain conditions the receiver expects physical communication. â€Å"If a message is perceived as important to the receiver they expect to hear it live from their

Zara - IT for Fast Fashion Case Study Example | Topics and Well Written Essays - 1000 words

Zara - IT for Fast Fashion - Case Study Example The essay "Zara - IT for Fast Fashion" concerns Zara - fashion company. The company started by Amancio Ortega at the Northern part of Spain continually enjoyed growth in the Spanish market through strategic prepositions. Initially, the chain served the needs of the local consumer in the young feminine segment. Within the last ten years, the company grew proportionately to increased revenues and consumer loyalty through the modernized approaches that it employed. The company preserves the strengths of analyzing the customer targets in the market as serving the entire fashion market poses more threats than opportunities. The company defines that the youthful female consumer depicts a standardized behavior throughout the geographical segments. Zara depicts that the consumer buying decision model affects all businesses alike. The company analyzes fashion needs through the online research surveys and establishes on the fashion trends that depict a favorable rate of return on investment. T hrough a communicative channel that tends to link the company to the consumer, Zara advertises on the release of the garments that target to suit perceived consumer needs. The company runs a solely owned ultramodern factory that designs and makes garments in accordance to the anticipated consumer needs. Zara communicates actual date of releasing the new makes to the customer, and through an effective delivery chain, the company avails the garments to the more than 1500 outlets in 70 countries of the world economy.

Dramatic devices Essay Example for Free

Dramatic devices Essay Compare and contrast the characters of Inspector Goole and Mr Birling in Act One. How does J.B Priestly use dramatic devices to help shape an audiences response to views presented in this play.  J.B Priestlys play was set in 1912 but written in 1945. The President at the time was called Herbert Asquith. The Titanic was built and nicknamed, The Unsinkable. It crashed on its first commercial journey on an iceberg and sunk, more than a hundred were unfound. It was just before World War 1 broke out against Germany. In 1945, World war 2 had just ended. Thousands upon thousands had perished in the war and the country was grieving its vast loses, still pondering the horrific situation upon which they had been left in. The country was brought together in sadness and grieving.  Britain in 1912 was a nation divided by class. Poverty was no longer the fault of the poor but the fault of society Britain had created. While the poor suffered, the rich and middle class enjoyed a lifestyle which even people today would envy. Poverty ravished the country. This was made to a great extent worse by World war 1 and 2. Priestly, through this play was trying to show the appalling fault of society. The extremes and ignorance of the Capitalist views and that unless it stopped this kind of poverty and war would continue happening. He was trying to convey to the audience his Socialist views. By undertaking this, he could outline all the negative points of Capitalist ideas and at the same time highlight all the good points about the Socialist ideas, effectively demonstrating the potential of Socialist views and subconsciously allowing people to think twice about Capitalism. The Inspectors name, Goole, is a dramatic device used in order to express to the audience that there is a kind of mysterious nature about him. The Goole name relating to such as a ghost as it sounds a lot like ghoul. This is very ironic, as he seems to act this very well. Goole is also a seaport town, this can be linked with the referral to fish for information. He is fishing for information from the Birling family. He is much like Eva Smith, just another face in the crowd, common. This links with the name Smith it is a very common name. Eve was the very first women in the Bible and is represented in that way as being very innocent and is an innocent victim in this matter. She is representing society and all the oppressed victims. This associates with the continuous repetition of A lot of these young women by the Inspector which further hints to what or who Eva Smith represents. He also seems to be omniscient about the matter of Eva Smith. Almost intimidating at times. None of the Birling family is sure how much he already knows, but all the same he still drags the truth from them. The Inspector is not a big man and need not be a big man as he creates at once the impression of massiveness, solidity and purposefulness. He is in his fifties and dressed in a plain darkish suit of the period. Priestly introduces him as a superior person. A person who is going to make an impact even before he has spoken based purely on his appearance. Because of the Inspectors appearance it gives a que for everyone including the audience to take him seriously. His appearance alone demands respect. He comes across as being very professional, organised and thus good at his job. He is talked about by Sheila as if you cannot trick him. He will find out what he does not already know. The Inspector is the catalyst in the play. He speeds up all the confessions of the characters in the play by the belief of the other characters that he already knows everything and he tries to make them change in order to help society. On the other hand, Arthur Birling is a:  Heavy looking very portentous man in his middles fifties with fairly easy manners but rather provincial in his speech.  The spotlight is immediately taken off Mr Birling when the Inspector walks in and this discomforts him. The Inspector looks somewhat superior to Mr Birling. Mr Birling hates this as he demands social status because of how rich he is. He tries very hard to gain social superiority but lacks refinement. Tell the cook for me It is bad manners to comment on the food at your own house, Mrs Birling says to him Arthur you must not say such things. As you can see by this, Mrs Birling is Mr Birlings social superior. This is ironic as he is trying to depict himself as a person of high social status but it has already been seen by his actions and what he says that he is not of high social status, he lacks the correct mannerisms. The effect of this is that he is made to look dim-witted and the audience would not look to him as being a superior man to the inspector but the same underneath. The inspector speaks like a judge or prophet. He continually makes comments about the actions of the characters in the play. The Inspector seems to care a lot about other people. He believes everyone should act as a community and all have responsibility for their actions against anyone. This is in deep contrast to the morals of Mr Birling. Mr Birling thinks that he has no responsibility over his employees. If he fires them then it is their responsibility what they do. He is very right wing in his thinking and does not believe that everyone is equal.

Economical And Political Situation In Russia Politics Essay

Economical And Political Situation In Russia Politics Essay The purpose of this paper is to investigate and to shed light on the nature of the relationship between big business and the state in contemporary Russia. It is commonly assumed that a relatively small number of Russian industrial tycoons, or oligarchs, control a substantial share of Russias economy and have the capacity to determine policy in the areas that are fundamental to the running of the country. I propose to challenge these assumptions and to argue that between 1996 and 2003 economic power blocks in Russia could never aspire to become the ruling class, as well as to enjoy access to the development of state policy. In contemporary Russia the leading entrepreneurs are no longer in the position to make significant claims on the political power using their economic resources. Fortescue argues that the use of the term oligarch is questionable because as an economic power block they never managed to actually run the country and that their policy role even in the economic sphere wa s minor. This paper argues that the oligarchs took advantage of, rather than created, the big business strategy of mass privatization and shares-for-credit scheme. I therefore prefer, when dealing with the subject, to speak of industrial tycoons, economic power blocks or big businesses. The relationship between Russian business and the state swung between two extremes. Under the conditions of a weak state in the early to late 1990s there was a high degree of state capture by Russian business. State capture or privatization of the state is best understood in terms of economic resources being used to influence the policy making process of federal and regional authorities to the benefit of the economic and political agents involved in these collusive agreements. State capture denotes a situation where a narrow set of interests, such as a firm, uses corruption or relies on informal agreements to shape the political and legal environment to its own advantage. This paper explores how the strategy of close integration with the state paved the way for the regional and federal authorities to gradually shift, relationship wise, from state capture to informal submission of private business to the state. In raising critical questions and relying on empirical evidence I attempt to draw a clear picture of the policies pursued by the Kremlin administration to establish an effective political mechanism to control and benefit from the economic performance of the industrial tycoons. I assess the risks taken by Putin in launching a frontal attack on the selected oligarchs and determine whether Putin has been successful in creating a new political order that aims at using economic power blocks as a tool of effective state politics. The first chapter analyzes the state-business relations in the mid-late 1990s. I look at the privatization of the state and the nature of collusive agreements between leading economic and political power blocks. The second chapter looks at the consolidation of the state and its changing relationship with the big business community. I look at the way the nature of individual relations with political power was re-assessed and how the consolidation of power contributed to big businesses falling under the command of state bureaucratic interests. This chapter demonstrates how the changing relationship, attributed to the consolidation of the state, created favorable conditions for the development of large-scale financial industrial groups, with the capacity to stimulate the growth of Russian economy and to serve as a strategically important factor in the pursuit of broader political interests. 1: STATE CAPTURE state-business relations in the mid-late 1990s In the early stages of democratic transition and state consolidation between 1993 and 1996 the concept of rent seeking was widely used to describe business behavior in Russia. Characteristically, those who were able to accumulate large capital and property relied on a strategy of close integration with the state and maximized their profits through privileges, such as subsidies and benefits obtainable from the state. The relationship between business and government was determined by differences in access to rent and its distribution. Those who were closely connected to the state were able to use the changing political and economic system to their advantage. When political and economic systems go through a rapid and challenging change they create a range of opportunities to take over business, using formerly state-owned property, and to make money on the structural disorders of a state in transition. Andrei Yakovlev in assessing the situation in Russia as compared to other Eastern Euro pean countries notes that weakened and half-destroyed public institutions in Russia were unable to build an effective resistance to the attempts of various private interest groups to capture and privatize rent. In the first half of the 1990s Russian political authorities made a strategic choice on the issue of foreign ownership and gave preference to the younger generation of Russian entrepreneurs. The Russian political authorities were faced with a choice-to put their money on either their business or on foreign investors. The active lobbying of big capital led to the adaptation of the first scenario. Such a situation created the ideal circumstances for the growth not only of the economic, but also the political influence of big capital. Most of these entrepreneurs got control of their most valuable assets by shares-for-credit scheme through which Boris Yeltsin funded his successful 1996 election campaign. Yeltsin offered assets of existing state-owned enterprises at a bargain basement price in exchange for loans to the Russian government that could be redeemed for further shares: The assets were to be put up for auction, the winner of each auction being the bidder who offered the highest amount of credit to the state. The winner would hold the states shares as security on the loan and have the right of operational control. The main beneficiaries of the auction were the ONESKIMbank, Menatep, Lukoil and Surgutneftegaz Pension Fund. It is important to understand that the shares-for-credit scheme involved a strong element of long term strategic thinking among a powerful group of reform oriented policy makers headed by Chubais. Fortescue notes that it was designed to achieve a strategic goal, laying the foundation for a privately owned big business able to operate competitively in global markets. This period is best characterized by the creation of government assisted financial-industrial groups with the capacity to improve their economic efficiency and global competitiveness. The inevitable result was high concentration of property ownership and economic power. The president and parliament that Russian businesses helped elect created the legal environment that their businesses needed to prosper. Yeltsins daughter, Tatiana Diachenko served as a political channel through which the oligarchs could influence the decisions made by the presidents political entourage in their favour. Shevtsova writes that informal political channels helped to hasten the merging of business with the state authorities at the top, and this blending of power and business spread further to other levels of the system. Oligarchy became a political reality in its true definition of the term when Vladimir Potanin was appointed first deputy prime minister and Boris Berezovskii was made deputy secretary of the Security Council. These appointments legitimized interference by big business in the affairs of the state and in many cases restricted the playing field for everyone else. The leading tycoons not only restricted the market to other firms but also successfully lobbied f or exclusion of foreigners from their fields of activity. In 1996-97 they fell out with one another and began fighting among themselves for economic resources. It is argued by leading economists and political theorists that lack of collective spirit and organized action among the oligarchs sharply reduced their influence on political authorities. They were unable or unwilling to defend each other when the common enemy arose. For example for Bunin and Pete Duncan their inability to influence the Kirienko government and his attempt to rein them in by taxing their companies and to proceed with the devaluation which brought them enormous losses in August 1998, demonstrates their lack of power. Minister of Finance Fedorov in mid 1998 stated the following: You guys are not paying taxes. Well arrest you, well take your property, well make your companies bankrupt. After the August 1998 crash Berezovskii attempted to have Kirienko replaced by Chernomyrdin. Through informal agreements he persuaded Yeltsin to nominate him for the post twice but the St ate Duma rejected his nomination. Even Chubais who was instrumental in the privatization process and managed to intervene on their behalf with Yeltsin on a number of crucial occasions was not going to grant them control of the political process: So in 1996, using the newly created Russian business, we resolved the problem of communism in Russia. But then that very big business decided that at last everything was in place and now decided to run the country. The government is working hard to get the message across to business that it is not its job to run the country. Anatolii Chubais, the architect of Russian privatization, in 2004 admitted to having underestimated the deep feeling of injustice that shares-for-credit would create, although he still maintained that given the choice between bandit communism and bandit capitalism, then the choice he made in favour of the latter was the right one. The oligarchs were able, on the whole, to withstand the attacks on them from the reformers but it signaled an end to the era of political domination. Pete Duncan notes that the organs of the state, the security services, the police, the armed forces and the courts remained loyal to the president, and already in the Yeltsin period looked with suspicion and jealousy on them. In the true sense of the term, the Russian oligarchs never really exercised any high degree of political power and have shown no capacity to determine policy in the areas that are fundamental to the running of the country. First, they took advantage rather than created the major economic transformation policies. Second, their policy role in the state system creating sense was minor. Third, having regained the instruments for the resolution of conflict and determining the rules of the game, the authorities grew stronger than the businesses that had assisted them by strengthening their power and providing financial s upport to specific officials. The use of the term oligarch in its traditional sense is therefore questionable. As according to Pete Duncan, they were lobbyists rather than decision-makers, on the whole. The shift of balance began to be evident after the August 1998 crisis. 2: Consolidation of the State re-assessment of individual relations with political power Local and regional authorities began to undermine the power of the federals (who were largely dependent on oligarchs) by supervising the territories within their jurisdiction for tax evasion. In exchange for ensuring electoral support local and regional authorities bargained for more power and resource regulation in strategically important regions. As we have already noted, the conflicts between the leading industrial tycoons (along with their respective sponsors in the federal administration) over sources of rent extraction eventually produced the financial crisis which ended with the breakdown of the largest banks and a radical replacement of the federal government. Contrary to the situation before the 1996 presidential election (when powers of the oligarchs, regional and federal authorities were united to preserve the nature of the political regime), the 1998 crisis, stimulated by the political tensions between leading industrial groups and authorities produced a deep split in the ruling elite. The split in the ruling elite is well documented. Yakovlev writes that influential regional governors, together with their business associates, attempted to use the crisis to make the federal government even weaker. Narrow circle of politicians and top bureaucrats, financed by the economic power of the JSFC Sistema created by the Moscow government and Yuri Luzhkov attempted to undermine the position of the federal elite and Boris Yeltsins associate business group. In order to ensure succession of power in a deeply discredited federal government the federal elite had to resolve their conflicts with the powerful governors gathered around fatherland-Russia and to win the support of the federal bureaucracy. It was important for the super elite not to ignore the strategic interests of the nation; otherwise they would run the risk of the complete loss of their personal authority and influence. Measures were taken to (1) provide financial support to the army, the FSB and to other law enforcement agencies (2) to strengthen the status of federal bureaucrats (3) to win the support of non oligarchic business by revising tax legislation and alleviating the tax burden. Actors involved in the process of power consolidation used the new image of a strong and responsible leader personified in Vladimir Putin to increase the public support of society that has grown tired of chronic state weakness, corruption and looked with suspicion on the close contacts of the presidential administration to the business tycoons. The first steps that Putin took as the prime minister, particularly his initiative to work out a long term policy for the strategic development of Russian economy, boosted the Social Sentiment Index from 85 points to almost 140 points. The index shows that trends in public opinion, based on how people assess the political, social and economic situation in the country, were in favor of the newly established political order. With social support and federa l bureaucracy under the control, the newly emerging federal elite strengthened their position by limiting the powers of the governors through the creation of a system of federal districts and through a delimitation of statutory powers between the federal government and the regions. Yakovlev notes that these steps sufficiently diminished the rights and fiscal resources of regional authorities and paved way for a consolidation of a new political system with rules of the game changed in favor of the state rather than private interests of individual political and economic agents. Federal authorities and economic power blocks of the Yeltsin regime failed to introduce effective means of state regulation and economic and social development. These failures should be attributed to the politics of favoritism and informal collusive agreements between political agents and industrial tycoons. The political and legal environment was shaped by a set of narrow interests that undermined the development of the strategic interests of the nation. The new super elite of the Putin era took into account an important factor: in order to consolidate personal authority and influence it is essential to take into account not only the interests of the groups they arose from, but also strategic interests of the nation. This is an objective condition which places this narrow group above the other groups of the elite. What the oligarchs of the 1990s could not do and that is to serve the common purpose and enjoy a common set of principles and rules, the new emerging elite consolidated th eir power and influence by promoting the strategic interests of the nation. This strategy did not only win them popular support but also guaranteed loyalty from federal agencies that have already in late 1990s have been critical of public officials operating for the benefit of individual market players connected to the highest echelons of political power. Curbing the oligarchs political influence was an essential part of Vladimir Putins state politics. He promised to treat the oligarchs in the same way as other entrepreneurs and announced that all interest groups would be kept at an equal distance from his government. The much quoted term equidistance refers to a situation when the state no longer plays favorites and refuses to promote special interests. In the first meeting with the leading oligarchs Putin made it clear that it is not their business to get involved in politics and that they should concentrate purely on running their businesses. It is documented in some literature that there was a pact between Putin and the leading industrial tycoons: As long as the oligarchs paid taxes and did not use their political power to undermine the development of a new political order, the state would respect their property rights and refrain from revisiting shady privatization schemes. The nature of the meeting cannot be disputed; leading bu sinessmen and Putin met to discuss possible patterns of interaction between business and the state. However, I am inclined to argue that because big business in Russia never developed a corporate interest that it could defend collectively, backed both by the population and the state apparatus which outweighed any special interests that oligarchs could have attempted to lobby for. Tompson, for example, describes the agreement as something akin to a foundational political myth and Pete Duncan argues that there is little evidence that Putin promised them anything. Putins priority was not to arrange a certain hypothetical agreement between the oligarchs. (If Russian politics of the Putin era would be interpreted in these terms it would imply that the state was not in the position to use its bureaucratic means to restrict the political influence of the leading business tycoons.) The opposite was true: big businesses were increasingly subjected to searches, summonses and charges from vari ous government agencies, usually related to tax and privatization issues. The owners of big business who found themselves under federal investigation were no longer in the position to use direct informal contacts with the authorities (that they relied on in the Yeltsin era) to resolve their problems through some form of payment or favor. The change in the situation should be understood in the following terms: individual public officials who operated for the benefit of individual market players in the 1990s were integrated into a larger system of a consolidated state. Consolidated state and its administrative apparatus is interested in the pursuit of long term strategic objectives rather than short term private gains and in order to secure and strengthen its position it will suppress any opportunistic behavior of its members whose private interests are in conflict with the interests of the state. Hence, the term equidistance is characteristic of policies pursued by the consolidated regime: oligarchs could no longer rely on the support of state institutions or individuals working within these institutions if their interests were in conflict with the strategic interest of the state. Putins priority was to rebuild the central state and to establish the presidential administration as the dominant political institution. State consolidation was a priority for two reasons: (A) consolidated government institutions recognize their collective interests (state policy) and abilities much better (B) consolidated governmental organizations can influence the rules of the game and are much stronger than any individual player in the political and economic system. With consolidation of the state there is a consequent informal submission of business to the command of state bureaucratic interests. If under the Yeltsin regime chronic weakness of the state meant that individual public officials operated for the benefit of individual market players, under the consolidated government it is either the organization as a whole that operates in favor of certain actors or the organization plays in favor of itself. The relative weakness of the industrial tycoons in the new institutional or der was confirmed by the exile of Berezovskii and Gusinskii and the Yukos case. During the Yukos case selective justice was used in means to consolidate power. The case is well documented and it shows that financial-industrial groups that pursue strategic economic and political interests independent of the collective bureaucratic interest of the state would be persecuted and would fall under the control of the state. Yukos dared to take direct action against the authorities by openly funding Putins opponents ( Khodorkovskii was giving financial support to the Communist Party and other deputies to influence their votes on legislation related to taxes in the oil industry) and the announcement of a merger of Yukos and Sibneft, with a possible further sale of a large block of shares to ExxonMobil or Chevron corporations, carried the implication that the state could actually lose control over strategic assets in the oil industry. In 2003 Yukos became the victim of a crippling tax demand which led to its bankruptcy and sale of its assets to government assisted financi al-industrial group Rosneft. The Yukos affair has clarified the rules of the game between oligarchs and Kremlin: (A) they should pay their taxes (B) they should not interfere in national politics (C) they should not attempt to undermine the strategic interests of the state in the pursuit of its energy policy. It can be argued that the Yukos affair had limited but generally positive implications for the development of Russia into eventually a normal market economy. Paul Khlebnikov wrote in 2003: The arrest of the oligarch is indeed an example of selective justice. But that is better than no justice at all. Put yourself in the place of the oligarchs. What conclusions will you draw from the Khodorkovskii case? What will you do as not to find yourself behind bars. Obviously, you will prefer always to be on the side of the president, and even better to keep your distance from politics. But you will also direct all your energies to remaining within the boundaries of the law. What befell the oligarchs under Putin shows that as a class they cannot aspire to become the dominant force in Russian politics. The regime may exploit big business and at times share power with them, but the dependency of the state on the capital of economic power blocks is purely temporary Even though the oligarchs remain economically powerful, they have no longer any weight in politics. Shevtsova notes that once the state has re-established itself and gained the support of other forces, the master of the Kremlin can shake off oligarchic influence. Where does this leave the other oligarchs in relation to the state? Consolidated state bureaucracy brings advantages to the development of big business and the economy. For the oligarchs who accepted the new political structure, rebuilding the state meant more security and guarantees for business. Businesses interact with monopolistic departments instead of individual bureaucrats and their relationship to the state is, therefore, more stable, predictable and effective. Putin and the countrys most prominent business leaders are working to convince Western investors that the Russian government and business can create law-abiding and transparent market economy. Leading Russian firms are moving towards corporate transparency and are trying to observe international accounting standards, pay regular dividends and protect minority stockholders rights. Russias industrial tycoons are becoming global players with the support and encouragement from their government: Lukoil CEO Alekperov stated in a 2001 interview that for the past two years we sense support of the Russian leadership, which now understands the importance of creating a transparent business environment that can serve to facilitate not only political ties but also strategic interests. The relationship between the state and business in Russia is one of mutual strategic interest that largely depends on the powers inherent in the presidency. It is in the interest of Russian big business to have behind it the support of the state and its guarantee of property rights, but at the same time it has to accept that the state operates on the basis of informal rules and agreements and places national strategic interests above market mechanisms.

Barbies Negative Impact on Society

Barbies Negative Impact on Society Cindy Jackson currently holds first place in the Guinness Book of World Records for undergoing the most consecutive cosmetic surgeries. While growing up, Cindy considered herself plain and unattractive next to her beautiful sister, so she decided that she had to do something. At age six Cindy was obsessed with looking like Barbie. Cindy stated, I looked at a Barbie doll and said, this is what I want to look like, I want to be her, (Leung 1). At age twenty-one Cindy packed up and moved to London, England, where she wanted to start a new, prettier life. It took over thirty-one surgeries, fourteen years, and five hundred thousand dollars to become the human Barbie. Now she has her own website, book, and multi-million dollar friends, at the expense of her body. Cindy Jackson is an example of how far people are willing to go to look perfect in this society. Beauty is distorted by the media and by the toy industry. In todays society skinnier is better, and people are willing to go through anything to achieve this. Children should not be exposed to these ideas. Instead, children should just be kids. Putting the Barbie doll into the hands of children teaches them that they need to look like her: perfect. Although, Barbie is not the only sole cause of low self satisfaction but is a contributing factor. Barbie has been proven to give children who play with her lower self-esteem and induce increased desires to look skinnier. Barbie has negative influences on body image and causes lower body satisfaction levels among young girls, by giving children false pretenses and pressures about being skinny and perfect. Barbie is the most successful toy of the twentieth century and the alleged icon of female beauty (Kuther 39). Most girls from the ages three to ten have at least had one doll growing up. Although, shes popular now she is actually based off of another popular doll from Germany. The dolls name was Bild Lilli she was an original cartoon character of an explicit comic strip designed for adult men. On August 12, 1955 Lilli was first sold in Germany, usually found in smoke shops and a few toy stores, (Bild 1). Barbie was based off of the Lilli doll by Ruth Handler; she journeyed to Europe on vacation and bought a few Lilli dolls. When she returned back to New York Handler re-designed the doll to make Barbie, which was named after her granddaughter Barbara. Now Barbie is the most sold doll in the world, Barbie is a 1.5 million dollar per-year industry (Dittmar 283). Barbie gives children a sense of low self-esteem. Three developmental psychologists exposed one hundred twenty-six English children from ages five to eight to a study of how Barbie influences body image. They were exposed to either Barbie dolls, Emme dolls (a more normal proportioned doll), or no dolls and then completed assignments based on what they saw. Helga Dittmar concludes, Girls exposed to Barbie reported lower body esteem and greater desire for a thinner body shape than girls in the other exposure conditions (284). Dittmar continues, even if dolls cease to function as aspiring role models for older girls, early exposure to dolls epitomizing an unrealistically thin body ideal may damage girls body image, which would contribute to an increased risk of disordered eating and weight cycling (290). This study proves the fact that Barbie has some kind of hold over kids. Since girls play with these dolls they are the most influenced by her since they are so young. If we show our chi ldren these images and tell them to play with them, they will show some sort of idolizing to the dolls. Handlers granddaughter Stacey has written a book about her complications with living in the shadows of the Barbie doll. She has had many challenges maintaining her weight to blend into the family. Stacey Handler has experienced the life after Barbie as it has been in her life personally. Her book The Body Burden, Living In the Shadow of Barbie reveals her personal story of a lifetime battle with body image. She openly discloses her own feelings about the Barbie doll, her grandmothers seemingly innocent perfect creation. She shares her moments of low self-esteem, including fears, insecurities, and distorted body image that have been bestowed on her (213). She discusses societys unrealistic body images and how hard it is for girls to adjust and love themselves for who they are (215). For the first few chapters she expresses her feelings through poems and rhyming songs (1). Handler writes, They never see behind the curtains that hide all my imperfections I was removed from the shelves where the perfect me remained without a single tear I worked all day and night to get rid of my excess cellulite until I looked perfect in the eyes of society (12-13). Stacey felt overwhelmed by what her grandmother had invented. She was constantly dieting and practicing unhealthy habits of losing the excess weight. Secondly, includes the controversial information of the Barbie. This includes the real life Barbie and her measurements. Barbie was designed to look flawless because why would a child play with a doll with blemishes or cracked dry skin. These dolls are made to look perfect and almost robotic (one looking exactly like the other). Even though Barbie has recently turned fifty years old she still looks like she is twenty. She stays so young only because children would not play with a grandmother looking doll, it would be out of their likely hood to play with her. The children would not look up to her. Her body figure is very controversial because it demonstrates a tiny waist, long legs, ample bosom, and flowing blond locks (Winterman 1). Some argue her body shape would be unobtainable and unsustainable if scaled up to life-size. Denise Winterman states, They claim she would not be able to stand up because her body frame would be so unbalanced. A real life Barbie would simply fall over .A study at Southern Australia University suggest the likelihood of a woman having Barbies body shape is one in one hundred thousand so not impossible, but extremely rare ( Winterman 1). Winterman claims, Researchers at Finlands University Central Hospital in Helsinki say if Barbie were life size she would lack the seventeen to twenty-two percent body fat required for a woman to menstruate. So again, not an unachievable figure, but certainly not a healthy one . If Barbie were a real person, she would stand five foot two inches and weigh approximately one hundred ten pounds. Her waist would measure a remarkable 20 inches, her chest thirty-eight inches, and her hips thirty-four inches (Kuther 322). Third toys give children an influence especially at younger ages. Barbie is indeed advertised to children who are young, mainly three to ten year olds. Children who play with toys at aged three to eight are said to be influenced more from the toys they play with than the ten year olds advertised too also (Duffy 1). Judith Duffy suggests that girls as young as five worry about their weight after playing with unrealistically slim figures such as the Barbie . Duffys article is a summarization of facts based on girls ideal of beauty within the past five years. For example, a recent study performed on one hundred thirty fifteen-year-old Scottish girls has revealed that around fifty two percent considered themselves to be too fat, and twenty-nine percent were actively trying to lose weight . This is outrageous considering that fifteen year olds are just beginning their high school career. These teenagers should be more concentrated on their studies than on their need to be perfect and size two. Some writers, feminists and psychologists think Barbie is a positive role model and a healthy image for young girls to have. For example, Deb Mehecke writer of the article Rethinking Barbie, explains that Barbie gives children a chance to use their imaginations and the opportunity to mother something . She also claims, Barbie allows young women to dream about all of the possibilities, Barbie can be a doctor, an astronaut, a banker, a lawyer, a nurse, a gymnast etc . Children do like to mother their toys and pretend they are real, but do we have to give our children such an inappropriate doll. We could give our children a water baby or a cabbage patch doll, why do we insist they take care of such a glamorous doll? Developmental psychologist Julia Griffin stated her idea of Barbie in her article Academics Like to Play with Barbie too. Griffin explains Barbie is essential to a girls development in a social interaction along with social values . Instead of Barbie being the essential part of a childs life, parents should help their children develop social interaction and social value skills. Many people think Barbie has nothing to do with eating disorders and the negative body image in young girls. Mattel, the company that produces the doll denies any and all negative accusations with Barbie and the negative affects it rings to the children who play with her. Solutions are a must with this issue such solutions are: alternate dolls for children and young teenagers, parent responsibility and positive reinforcement of body image, and companies need to make dolls more realistic. Some alternate dolls for young girls would be the Groovy Girl dolls, and the Cabbage Patch Kid dolls, and for the older age groups the American Girl Doll and Emme. The Groovy Girl dolls are sold at Target stores nationwide, and sell for about sixteen to nineteen dollars. These dolls can be considered expensive but they resemble children, in appropriate clothing and offer great values to children. The editor for the savvymom website and co-founder of the Groovy Girls is Victoria Pericon who appears on the official website she states, With three children of my own, I am constantly trying to filter the messages y kids are getting from television, their peers, the Internet, magazines, and movies. My daughter, especially, is surrounded by confusing messages that make it difficult for her to develop a strong sense and a healthy body image. The Groovy Girl dolls helped my daughter find her inner beauty in a respectful way, (Groovygirls.com). This website has a parents option which has ways to help your daughter learn to make good decisions along with characteristics parents should enforce. The Cabbage Patch Kid dolls are harder to find but they are so ld at Wal-Mart and Target stores along with other with other toy stores nationwide. They sell for about ten to fifteen dollars depending on the doll and accessories included. These dolls are positive for little children because they are realistic in their appearance according to the childs age group, and they can care for them properly. The American Girl dolls are by far the most educational and most expensive. These dolls are designed to teach children about a defined time period. For example, The Great Depression and the 70s dolls Kit and Julie. Although, these dolls are highly expensive and are more classy and high end of the doll market they include a lot of valuable information and insight into the girls influence. The final alternate doll would be the Emme doll. This doll is sold online and in select stores and is priced between twenty and thirty-five dollars. The optional extra outfits can cost anywhere from fifty to ninety dollars. These dolls are the most proportionate to an average healthy woman which makes this doll the best dolls for growing and changing children to teenagers. In conclusion, Barbie indeed became a staple of todays society based on her popularity but she is becoming a factor of low self-esteem in young girls. If we act now we can stop the increase in this matter before it gets even worse. References Anonymous. Bild Lilli History. 10, Apr. 2001.10, Nov 2009 . Dittmar, Helga, Emma Halliwell, and Susanne Ive. Does Barbie Make Girls Want to be thin? American Psychological Associationl.42.2 (2006):283-292. Academic Search Premier. EBSCO. Academic Search Premier. Web. 3 Oct 2009. Duffy, Judith. Barbies Figure gives Young Girls a Desire to have a Thinner Body. BNet.com.CBS. 12 Jun.2005.CBS, Web. 23 Sept. 2009. http://findarticles.com/p/articles/mi_qn4156/is_20050612/ai_n14680012/ Esteban, Michelle. Full-Figured Doll Transforms Beauty ImageABCNews.com. 25 Oct. 2002.Web. 2, Sept.2009.http://abcnews.go.com/US/Story?id=91099page=1 Groovygirls.com. 2008. 10, Nov. 2009 http://www.groovygirls.com/parents/raising.cfm. Handler, Stacey. The Body Burden, Living In the Shadow of Barbie. Cape Canaveral: Blue Note Publications, 2000. Print Kuther, Kara L. and Erin McDonald. Early Adolescents Experiences with and views of Barbie. Adolescence. 39.153. (Spring 2004): 39-51 Findarticles.com. Academic Search Premier.EBSCO. Web. 25 Sept. 2009. Leung, Rebecca. Becoming Barbie: Living Dolls. CBSNews.com. 6 Aug. 2004.Web. 24 Sept. 2009. http://www.cbsnews.com/stories/2004/07/29/48hours/main632909.shtml Winterman, Denise. What would a real life Barbie look like? BBCNews.com 06, March, 2009: 1-2. Web. 1 Oct 2009. http://news.bbc.co.uk/2/hi/uk_news/magazine/7920962.stm