Training Report free essay sample

I offer my most profound thanks towards all the staffs of lodging illustrious orchid where they help me out in their regarded worry in ordinary exercises of the inn. What's more, I thank every one of my companions and partners who helped me to set up this report. HISTORY OF BANGALORE Legend goes that ruler veeraballa of vijayanagara once lost his way in woods ravenous and tired, he happened upon a solitary cabin in thick timberland where he met an elderly person. At the point when he requested food, she gave him heated beans (‘Benda Kalu†). The ruler discovered this modest supper taste superior to the most extravagant toll. To remember this episode, he called the spot â€Å"benda Kalu Ooru†(place of prepared beans). Bangalore today is getting mainstream through for an alternate assortment of beans-java beans Capital of southern province of Karnataka, Bangalore today is Asia’s quickest developing cosmopolitan city. It is the home to probably the most cutting edge ventures in India. We will compose a custom exposition test on Preparing Report or then again any comparative subject explicitly for you Don't WasteYour Time Recruit WRITER Just 13.90/page The I. T industry in sees Bangalore as the â€Å"byte-basket† of India. Bangalore is likewise home to some of India’s head logical foundations. Favored with a salubrious atmosphere, gardens parks, common lakes, structural milestones, shopping centers, the best cafés and bars in this piece of the globe, business openings, Bangalore is the perfect door to India and past. Bangalore offers something for everybody music and move shows (western and Indian), dramatizations, displays, jubilees, meetings and that's only the tip of the iceberg.

The Benefits of Using a Curriculum Within the Outdoor Environment Essay Example for Free

The Benefits of Using a Curriculum Within the Outdoor Environment Essay In the event that training is a journey of disclosure, why not investigate the chances to take learning outside? Chiara Pannozzo The Early Years are a period of unparalleled individual revelation, where every day holds the potential for experience for a youngster †and no place offers more noteworthy potential for experience than nature. The advantages of open air play are actually quite fundamental, says Harry Harbottle, an advisor in play and hazard the board, who was some time ago designated by the EU as a kid security master to the European Standards Organization. On the off chance that kids arent permitted to connect with the components †mud, water, air, even fire †how might they start to comprehend the world that they live in? Harry contends that there is a need to move away from a culture of hesitance to let kids investigate outside. We are finally understanding the outcomes of kids investing the majority of their energy inside, says Harry. There are an excessive number of youngsters who have been antagonistically influenced by an absence of activity and incitement. The outside condition is a rich, dynamic and characteristic space to improve the school educational plan and invigorates quality learning and advancement in offspring all things considered. Its incentive as a fundamental learning asset has been perceived by numerous bits of research and all the more as of late with the ‘Eraly Uears Foundation Stage (EYFS), especially inside the standard of ‘ Enabling Environments’. Open air exercises, regardless of whether they be center National Curriculum center subject or establishment based, can generally be adjusted, if essential, for kids with extra adapting needs/physical inabilities by the instructor doing a reckie of the zone outside which is to be utilized and afterward surveying how conditions can be adjusted for understudies with such challenges. Likewise, an amigo can be set with a kid who has extra needs and help given when essential. It is basic that limitations are just positioned for wellbeing and security reasons; else, one ought to consistently attempt to give youngsters proprietorship to energize a feeling of autonomy and achievement. To give a case of how a movement could be adjusted for kids with extra adapting needs/physical incapacity: Making hot cocoa drinks in Kelly Kettle †¢Children gather igniting in regions open to them †¢Children remain at base situation to help assemble the waffle pontoon for fire †¢Children sort out fuel into various sizes At the point when the educational plan is taken into the outside condition, youngsters have been watched having certainty and freedom with exercises they have sought after, furnishing them with a feeling of progress and raised confidence. Kids will create connections (PSHE) with their friends and grown-ups. As certainty develops, kids will start to think about the requirements of others (crippled/extra adapting needs), just as exclusively. Professionals in the forest have mirrored that youngsters in this condition had picked up trust in adjusting to new circumstances and in attempting new encounters. This likewise affected on their capacity to pick exercises freely and their trust in self starting errands apparently developed drastically. To give a case of an undeniable advantage of carrying the educational plan into the open air condition: Child X delighted in making covers and would frequently enroll the guide of one his/her companions by sayon, â€Å"Oh †this log is substantial, would you be able to help me ? † different youngsters present would the all work as a group by clutching the enormous log and help moving it into position. Kid X had gained more aptitude in making and reinforcing kinships , the specialty of thought and bargain †â€Å"Can I help you? rather than â€Å"That’s mine! †. Despite the fact that these progressions might be maturational, children’s encounters gave them genuine open doors for rehearsing these basic fundamental abilities. ‘ Through their remarks (the huge other), professionals should consider their to be as extremely changed and ought to include: guaranteeing the earth is sheltered, permitting the youngsters decision of hardware, for example, ropes, trowels and basins, watching and esteeming their self started learning. Professionals should feel by addressing, proposing and giving propts/props, they can expand children’s self-started advancement. Dowling depicts self-started play as unconstrained, where the expert can decide to be included by taking an interest close by and offering a consoling nearness. Such a significant perspective should be received by all grown-ups who work with kids engaged with carrying the educational plan into the open air condition, if this is to be an effective component for children’s potential learning. â€Å"The grown-up should know about the potential for learning in children’s play, yet this is an altogether different issue from foreordaining the play. ’ †Dowling (1992)

Who vs. Whom Which Should I Use

Who vs. Whom Which Should I Use You can always tell a grammar perfectionist by their correct use of who vs. whom. The rest of us often just hope we get it right when we choose between the two pronouns. However, theres an easier way to resolve the who vs. whom problem than using one or the other and hoping you get it right.Step 1: Know the difference between subject and object in a sentenceThe first step to knowing whether to use who or whom is understanding the difference between the subject and object of the sentence. When a sentence is written properly, it should have a subject and a predicate.A subject is the person or thing that is being discussed or described. A predicate is the part of a sentence or clause that expresses what is said of the subject and that usually consists of a verb with or without objects, complements, or adverbial modifiers.For example, in the following sentence, Sheila is the subject and gives is part of the predicate.Example: Sheila gives her kids hugs every day.Step 2: Find the object o f the predicateNow that you understand the difference between the subject and predicate, lets look at how to find the object within the predicate. As shown above, the predicate of a sentence is where the action takes place and is the part of a sentence that usually consists of a verb with or without objects, complements, or adverbial modifiers. So now, the next step in determining whether to use who or whom is to figure out if either of those pronouns replaces a noun that is an object in the sentence.So lets look at the definition of an object of a sentence. The object is the person or thing receiving the action of the verb, or to whom the actions are being done.Consider this sentence: She invited Drake to perform at her party.The subject of the sentence (or the person doing the action) is she. The object of the sentence (or the person receiving the action) is Drake.Step 3: Replace the subject with who and the object with whomNow, youve reached the final step in determining which of these often confused pronouns to use. All thats left to do is replace the subject with who and the object with whom.So, who invited whom to the party?She invited Drake to the party.(Another pro tip: If the question can be answered with she or he, use who; if a question can be answered with him or her, use whom.)

The Increase in the Number of Factory Farms in the United...

Factory Farming is an increasing industry in the United States. These large farms, which evidently appear to be more like slaughterhouses than the typical farms a person can imagine are located throughout the United States. These factory farms contain animals ranging from chickens, sheep, goats, cows, turkeys, and pigs, they also contain dairy products. The conditions for the animals and the employees of these factory farms are inhumane and vile. Life behind the walls of the factory farm is both unsanitary for the animals and the employees. Employees are forced to endure long hours and poor treatment. Animals in these conditions withstand living in cages and are forced to live in uninhabitable ways. The living conditions of chickens are dreadful and appalling. What came first the chicken or the egg? Chicken farming is found particularly in the Southeast margin of the United States (â€Å"Factory Farm Map†). It is explained that, â€Å"chickens and hogs on factory fa rms have no access to the outdoors, fresh air or natural light† (â€Å"Factory Farms Map†). This exemplifies one situation of how chickens are poorly treated in the factory farms. In addition, even before the chickens are born, they are treated horribly. More than 125,000 to one million hens can be living in the same factory together (Hobson). Along with crowded living spaces, these animals suffer being â€Å"docked,† which means they are declawed and stripped of all teeth (Hobson). This shows how bad the conditionsShow MoreRelatedThe Effects Of Beef On Cattle Farms1490 Words   |  6 Pages On many farms in the United States, it is common to utilize hormones and other additives on cattle in factory farms. Farms often feed animals hormones to quicken the slaughtering process. Although the factory farms sell a surplus amount of cattle to stores, cattle are being treated unfairly and inhumanely. 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It is important to examine how these companies areRead MoreEssay about The Corrupted Food on Our Tables561 Words   |  3 Pagesfamily-owned farms have disappeared leaving large, industrialized production units that grow livestock in masses for the benefit of the Large Corporations such as Tyson Foods Inc. The legal definition of Animal Cruelty is†¦Ã¢â‚¬ Acts of violence or neglect perpetrated against animals† (Animal Cruelty). The red barn with white framing, the bright green pasture with cows grazing, and the respectable family who owns the land as seen in many commercials is a myth. Farming mechanisms have changed to increase productionRead MoreFactory Farming And Its Effects On The Mass Production Of Animals1670 Words   |  7 PagesFactory farming also known as Concentrated Animal Feeding Operations (CAFO) is the raising of livestock for human consumption in which vast amounts of food are produced at minimal cost. 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Study On The Prediction Of Corporate Bankruptcy - Free Essay Example

Sample details Pages: 14 Words: 4060 Downloads: 7 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? CHAPTER 1: A number of researches have been carried on the prediction of bankruptcy; formal studies linked with failure of business were conducted in 1930à ¢Ã¢â€š ¬Ã¢â€ž ¢s. A study conducted by Simth and Winakor (1935) said that ratios of the failing firms were significantly changed from the continuing firms. In addition to that another study was related to the financial ratio of large size corporation that suffered in meeting fixed liability (Hickman 1958). Don’t waste time! Our writers will create an original "Study On The Prediction Of Corporate Bankruptcy" essay for you Create order Recent studies took potential ratios given in annual financial statements like profitability, solvency, and liquidity ratios considered as the most predictive indicator and these ratios were matched with failed and well worth firms for analysis. A group of financial and economic ratios were examined in the prediction of bankruptcy through multiple discriminant statistical technique, highest contributor ratios were profitability, operational profit/ total assets and very low contributor ratio was working capital/Assets (Altman, 1968). According to Pastena and Ruland (1968), the bankruptcy was defined in the literature review in various ways. Among those one was in a condition of negative worth where the market value of assets was less than the total value of liabilities. And the other was that the firm was not in a condition to pay back its liabilities as it became due. This term could also be used in a legal condition under which the firms continued to operate under court protecti on. 1.2 Problem Statement In the corporate finance, the prediction of corporate bankruptcy was considered to be one of the most important issues. The main objective behind the study of the prediction of corporate bankruptcy was that this was the most important issue for the present firms to either file for the bankruptcy or not. The rationale of the study was to examine whether the financial ratios given in detail by Altman (1968) presented the detail regarding the factors of the firm which were helpful in the prediction of corporate bankruptcy in Pakistan. The capacity of study was to investigate the distinctive financial ratios which impacted the firmsà ¢Ã¢â€š ¬Ã¢â€ž ¢ decisions to file for the bankruptcy or not and on the basis of firmsà ¢Ã¢â€š ¬Ã¢â€ž ¢ financial ratios, the research study found the different significant ratios which were useful in determining the prediction of any of the organization. 1.3 Hypotheses The main problem of the different firms was to identify those financial factors or the most important ratios which could lead to the filing of bankruptcy or those factors which were useful in determining the prediction of the corporate firms. A central query in front of firms which wanted to file for bankruptcy was why the firms filed for bankruptcy or what financial factors helped out in taking decision to file for bankruptcy. Various financial factors or ratios impacted the decision regarding the filing for bankruptcy. These financial characteristics or the most important ratios were current ratio, debt ratio, net profit margin, assets to long term debt ratio, and growth rate. Many authors as Altman (1968) discussed these characteristics in research. The hypothesized relationship of these listed financial factors with bankruptcy was provided below: H1: There is a difference between the Current ratio of bankrupted companies and non bankrupted companies. H2: There is a differ ence between the Debt ratio of bankrupted companies and non bankrupted companies. H3: There is a difference between the Net Profit Margin ratio of bankrupted companies and non bankrupted companies. H4: There is a difference between the Assets to long term debt ratio of bankrupted companies and non bankrupted companies. H5: There is a difference between the Growth rate of bankrupted companies and non bankrupted companies. 1.4 Outline of the Study The research structured as follows. Chapter one based on the introduction of the thesis, which consists of the some introduction of the prediction of bankruptcy by different authors, the statement of problem, scope and objectives, hypothesis etc. Chapter two consists of literature review given by different authors, theories on prediction of bankruptcy and financial factors affecting the choice of decision to file for bankruptcy or not. Chapter three described methodology which is composed of justification of the selection of the variables utilized in analysis sample, the data, technique and hypothesis, also estimate model utilized in analysis. In chapter four, analyses of the results were there which were taken after the data processing. Chapter five contained the final results, conclusions and recommendations. References are included in chapter number six. CHAPTER 2: LITERATURE REVIEW A number of researches have been carried on the prediction of bankruptcy; formal studies linked with failure of business were conducted in 1930à ¢Ã¢â€š ¬Ã¢â€ž ¢s. A study conducted by Simth and winakor (1935) said that ratios of the failing firms were significantly change from the continuing firms. In addition to that an other study was related to the financial ratio of large size corporation that suffered in meeting fixed liability (Hickman 1958). Recent studies took potential ratios given in annual financial statements like profitability, solvency, and liquidity ratios considered as the most predictive indicator and these ratios were matched with failed and well worth firms for analysis. A group of financial and economic ratios were examined in the prediction of bankruptcy through multiple discriminant statistical technique, highest contributor ratios were profitability, operational profit/ total assets and very low contributor ratio was working capital/Assets (Altman, 1968). A study conducted by Sandin and Porporato (2007) on corporate bankruptcy prediction model applied to emerging economies. The aim of this study was to find the predictability of bankruptcy by using the financial ratios given in the financial statements and these financial statements were taken from the Buenos Aires Stock Exchange. To test the hypothesis twenty two bankrupt and non bankrupt companies were examined by using the multiple discriminant analysis technique, resulted that financial ratios were very useful in predicting the bankruptcy. Actually this study was about the prediction model and classification of the distressed and failed companies in the Argentina. William Beaver (1996) conducted a study that Financial Ratios As Predictor of Failure, wherein ratios were tested for a specific purpose. The purpose was to forecast the failure. Since ratios were mostly examined for the prediction of failure. The aim of the study was to analyze the status quo that was depended on t he financial statements made under the reporting standard and this study was conducted as a bench mark for further studies in bankruptcy area. Sample of data was selected on the basis of industry, firm size and period, Walworth companies should have taken from the same industry where from failed companies taken along with same firm size based on firm value and equal time duration then reliable result can be obtained said by Beaver (1996). This study pointed out and directed to the asset size and relationship among ratios, assets size and failure, study implicated that larger firms were more solvent than smaller firms, even if ratios were same. To examine the hypothesis, a paired analysis was used. According to Pastena and Ruland (1968), the bankruptcy was defined in the literature review in various ways. Among those one was in a condition of negative worth where the market value of assets was less than the total value of liabilities. And the other was that the firm was not in a c ondition to pay back its liabilities as it became due. This term could also be used in a legal condition under which the firms continued to operate under court protection. Merger and Bankruptcy Based on the literature review in the different research studies, it was found that the shareholders of the distressed firms were getting more benefit from mergers than from the bankruptcy. Thus, the investors kept the positive number of the firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s stocks up as a consequence of the merger. Contrastingly, the stakeholders received nothing in case of the bankruptcy. Shrieves and Stevens (1979) managed to explain all of the possible reasons for preferring merger over bankruptcy and those principles included: (1) to avoid the bankruptcy legal and administrative costs, (2) possible loss of tax carry forwards of the loss firm incurred on liquidation, (3) the value of the going-concern in the merger was more than liquidation value if the firm bankruptcy progressed towards the liquidation, and (4) the bankruptcy created the bad effects on the revenues including sales and income due to the customer fears of inability contracts, give replacement parts, etc. Bulow and Shov en (1978) noticed based on the research that the investors have always been avoiding the bankruptcy and this tendency always benefitted the creditors as a whole and that theoretically, the bankruptcy occurred because of the disagreement between the concerned parties. This was treated in a literature that the merger was the best possible alternate of the bankruptcy with the assumption in the mind that it was more easy for the distressed firms to find a merger partner at some price as long as the net asset value was positive and this was also under the assumption of a well-functioning market for information. When the situation was aggravated toward a condition of less or negative net asset value, the possibility of merger was reduced. Hong (1983) made an empirical as well as theoretical model which distinguished among three different categories of financially upset firms and it was organized in three ways such as: firms which filed bankruptcy but reorganized successfully, firms whi ch filed for bankruptcy but were liquidated ultimately, and also the firms which continued operations with out even filing for bankruptcy. Author further made a hypothesis that the intangible assets, the value of the firm as in a going concern and the value of the same firm in liquidation was different, were the main describing factor which affected the eventual outcome. The firms which had greater intangible assets were possibly having a sustainable economic growth and that growth allowed a firm to survive rather than be liquidated. LoPucki (1983) made an explanatory study of about 41 firms which filed the bankruptcy court of the Western District of Missouri. In this study, the à ¢Ã¢â€š ¬Ã…“successesà ¢Ã¢â€š ¬? were defined as the firms which have verified its various reorganization strategies that kept it on to survive for about three years after the date of petitioning the bankruptcy. Failures according to the author were those firms which had stopped operating functions b efore February 1983. LoPucki (1983) further could not try to make a method with discriminatory power, but in fact simply scrutinized the associations between the results of reorganization process and numerous individual variables. These individual variables included size, age, and type of the businesses, the survival of creditorsà ¢Ã¢â€š ¬Ã¢â€ž ¢ opposition to the reorganization strategy, and physical geographic location. The relationships which were found during the research were: significantly higher success rate was associated with the manufacturing firms; more successful firms were only the larger firms; success was not significantly associated with the age of the firms; the target opposition of the creditors was mainly at the more successful firms; and lastly, the physical geographical location was not a significant describing variable. In short, only a finite amount of research was conducted on the topic of differentiating between failures and successes in bankruptcy, and outcomes have been open to doubts or inconclusive. The one published study conducted by the LoPucki (1983), scrutinized the first order correlations and could not struggle to build the model of classification. The other published research study conducted by Hong (1983), scrutinized the comparative importance of numerous individual variables and had not analyzed the classification authentication of the multivariate model. As it was already discussed in detail, this present study scrutinized the classification authentication of the multivariate model by using data from both analysis sample and a holdout sample 113 firms. Bordman, Bartley, and Ratliff (1981) noticed that firms went bankrupt only when its capital resources were not enough to pay back the obligations of the business. Thus it became the more important challenge for the new comers in the industry to maintain and establish such valuable resources and capabilities which could ultimately leaded to the production of positiv e cash flows before starting asset resources were exhausted (Levinthal, 1991). According to Dà ¢Ã¢â€š ¬Ã¢â€ž ¢Aveni (1989), and Hambrick and Dà ¢Ã¢â€š ¬Ã¢â€ž ¢Aveni (1988), both researches have noticed that most of the attention has been paid to the early failures and dramatic research has also been conducted in the literature. A macro view of the bankruptcy was given as a known strategy and an empirical examination of factors associated to successful reorganization (Moultan, and Thomas, 1993) and however, the structures of corporate governance were not incorporated in the analysis. An extensive data was available relating the intensity to which the officers and directors of the firm which was bankrupt were more possibly resigning or were being replaced (DAveni, 1990; Fizel Louie, 1990; Gilson, 1989). Several researchers used the multiple discriminant analysis MDA technique to develop a linear model to predict those firms which failed could be differentiated from the non-fa iled firms in UK (Taffler, 1977). This model resulted in an overall classification authentication for the year before the failure as comparative to three or two prior years of failure. The major contribution made by Taffler was the establishment of a Z-score model which was used for the prediction of company failures in the UK and furthermore, the author claimed of 100 percent predictive authentication in the model. In addition, in the consequent studies, Taffler (1982, 1983) discussed the pairing technique which was used in the prediction of corporate failure studies proved no more successful technique than any selection by the other tool or technique. Multiple Discriminant Analysis MDA models were dependable to certain intensity in the prediction of corporate failure. CHAPTER 3: RESEARCH METHODS 3.1 Method of Data Collection Data was selected from Karachi Stock Exchange KSE 100 Index as given by State Bank of Pakistan in publication Balance Sheet Analysis of Joint Stock Companies Listed on the KSE (2004-2009). The period of study covers six years, 2004-09. The opted sample size of 44 firms was taken from KSE 100 Index and all of the firms listed on KSE 100 Index were selected for the samples which were going to bankruptcy in the past and some were also the present functioning firms which were currently working; so, only 44 firms included in the sample period of 2004-09. The objective behind the inclusion of these selected firms in the sample was that the inclusion of bankrupt and non-bankrupt firms in the analysis made it easier to distinguish the critical financial ratios of these both firms in order to predict for corporate bankruptcy. The data availability was the major issue faced in this research study. The secondary data sources were adopted for the collection of the data during this research study. Both of the empirical and theoretical aspects regarding the prediction of corporate bankruptcy were analyzed in this research study. For the purpose of the collection of the secondary data, external data sources were used, such as the data was collected from State Bank of Pakistan, general business publications, newspapers and journal articles, annual reports, internet and books. The data required for this study was completely dependent on the published data sources, such as the published sources listed above. 3.2 Sample Size A sample of 44 firms from KSE 100 Index was selected and in addition, out of these firms 22 firms were bankrupt and the remaining 22 were not bankrupt which was taken as the holdout sample for the prediction of the corporate bankruptcy. Only firms were used in the samples which were either became bankrupt due to the impact of the some of the financial factors or the ratios or the firms which were in operations during the research study was conducted and these firms were listed on the KSE 100 Index form 2004-2009. The impact of the different financial factors or ratios, which were listed in the previous chapters, on the prediction of corporate bankruptcy was analyzed on all of the firms selected as the sample. 3.3 Research Model Developed There are various financial factors or the ratios of the firms which affected the prediction of the corporate bankruptcy of the firms. This research study analyzed the impact of different factors or ratios already listed in the previous chapters on the prediction of corporate bankruptcy. The model developed was a binary logistic model and its specifications are provided below: Liquidity = a0 + a1Firm Size + a2DEBT + a3LTD + a4LSALES + a5OI/S + a6OI/TA+ a7IGP/TA+ a8Market to Book Ratio + ц where: Liquidity = the sum of cash and marketable securities divided by total assets Firm Size = natural log of the book value of total assets DEBT = the ratio of shorter period plus longer period debt to total assets LTD = the ratio of longer period debt to total assets LSALES = natural log of the annual sales OI/S = the ratio of operating income to sales OI/TA = the ratio of operating income to total sales IGP/TA = the inventory plus gross fixed assets to total assets ratio à Ã¢â‚¬Å¾ = the error term 3.4 Statistical Technique Binary Logistic Regression Analysis technique was used for this research study to examine the impact of the distinctive financial characteristics or the financial ratios of the firms on the prediction of corporate bankruptcy of the selected firms; Statistical Package for the Social Sciences (SPSS) was used for the examination of the secondary data. Binary Logistic Regression Analysis technique was used for the purpose of prediction of of corporate bankruptcy or the prediction of the firmsà ¢Ã¢â€š ¬Ã¢â€ž ¢ decisions to file for bankruptcy. The selected technique was used to study the impact of the different independent variables (financial factors as listed in the previous chapters) on the dependent variable i.e., prediction of corporate bankruptcy. The binary logistic regression analysis was selected for this study. It showed the intensity of the impact on the prediction of corporate bankruptcy during year 2004-2009 on the basis of several independent variables. CHAPTER 4: RESULTS The sample of 44 firms from the Karachi Stock Exchange KSE 100 Index was taken; Binary Logistic Regression Analysis technique was used for this research study. Research examined the distinctive financial characteristics or financial ratios of firms which filed for the bankruptcy. The selected technique was used to study the impact of the different independent variables (financial factors as listed in the previous chapters) on the dependent variable i.e., the prediction of corporate bankruptcy. Statistical Package for the Social Sciences (SPSS) was used for the analysis and examination of data. 4.1 Findings and Interpretation of the results Initially, the binary logistic regression technique was applied on the data collected using SPSS. Now, it was a nice time to proceed with the analysis of the results because the data was collected and ready to be examined. The interpretation and analysis is presented in the next sections of this research study. Case Processing Summary Unweighted Casesa N Percent Selected Cases Included in Analysis 192 91.4 Missing Cases 18 8.6 Total 210 100.0 Unselected Cases 0 .0 Total 210 100.0 This table explains the total population in the data file that is the 210 observations or the cases for the analysis of the bankruptcy prediction. This table further elaborates that the there were also some of the cases missing in the data because of the issue of data availability and some of the cases were the figures of zero. Dependent Variable Encoding Original Value Internal Value Bankrupt 0 Non-Bankrupt 1 The above table shows that there are only two variables in the dependent variable of bankruptcy that are the being bankrupt or non-bankrupt. Model Summary Step -2 Log likelihood Cox Snell R Square Nagelkerke R Square 1 234.707a .144 .192 This table elaborates the predictability of the complete model of the logistic regression which meant that to what extent the model predict the variation in the predicted group of bankruptcy. According to Cox Snell, the total predictors jointly explained variation in the groups of bankruptcy was 14.4%. While according to Nagelkirki, the all independent variable explained the group prediction of about 19.2%. Hosmer and Lemeshow Test Step Chi-square df Sig. 1 32.715 8 .000 This table checks the overall model fit which means that the model is at its best in predicting the group variation from non-bankrupt to bankrupt. The hypothesis of the above table is that the test model is fit. The hypothesis is rejected because the sig value is less than .05 which concluded that the test model was not fit in this case of predicting the group variation. Classification Tablea Observed Predicted Banckruptcy Percentage Correct Bankrupt Non-Bankrupt Step 1 Banckruptcy Bankrupt 76 29 72.4 Non-Bankrupt 43 44 50.6 Overall Percentage 62.5 The classification table is the most important table in case of the logistic regression because this table explained the correct identification of the cases correctly identified. The percentage of correctly identified cases is 62.5% which is also commonly known as the hit ratio which means that to what extent the numbers of cases were correctly identified. Variables in the Equation B S.E. Wald df Sig. Exp(B) 95% C.I.for EXP(B) Lower Upper Step 1a DA -1.219 .510 5.725 1 .017 .295 .109 .802 AtoLTD -.002 .001 1.583 1 .208 .998 .996 1.001 CR .938 .348 7.242 1 .007 2.554 1.290 5.056 NPM .037 .073 .262 1 .609 1.038 .899 1.198 SG .161 .232 .482 1 .488 1.175 .745 1.852 Constant .066 .579 .013 1 .910 1.068 This is the final most important table in the logistic regression because this is the only table which shows the role of different predictors in significantly explaining the role in the prediction of group variations. Those important significant variables were only two that were DA, and CR because the sig value of only these variables were less than .05. 4.2 Hypotheses Assessment Summary The hypothesis of the study was distinctive financial ratios have significant impact on the non firmsà ¢Ã¢â€š ¬Ã¢â€ž ¢ decision to file for bankruptcy. These financial characteristics were current ratio (CR), debt ratio (DA), net profit margin (NPM), assets to long term debt ratio, and growth rate. In this study each of the financial characteristics or financial ratios of firms was tested and concluded the results. TABLE 4.4 : Hypotheses Assessment Summary S.NO. Hypotheses ÃŽÂ ²   SIG. RESULT H1 There is a difference between the Current ratio of bankrupted companies and non bankrupted companies. 0.938 0.007 Accepted H2 There is a difference between the Debt Ratio of bankrupted companies and non bankrupted companies. -1.219 0.017 Accepted H3 There is a difference between the Net Profit Margin Ratio of bankrupted companies and non bankrupted companies. 0.037 0.609 Rejected H4 There is a difference between the Assets to long term debt ratio of bankrupted companies and non bankrupted companies. -0.002 0.208 Rejected H5 There is a difference between the Growth rate of bankrupted companies and non bankrupted companies. 0.161 0.488 Rejected CHAPTER 5: DISCUSSIONS, CONCLUSION, IMPLICATIONS AND FUTURE RESEARCH 5.1 Conclusion It was concluded based on the results of this research study that current ratio and debt ratio were only the independent variables which were showing significance in Pakistani market and these variables were highly significant in playing the vital role explaining the variation in the dependent variable of the prediction of corporate bankruptcy and the remaining independent variables could not explain the variation in the prediction of corporate bankruptcy. These results were not matching with the study conducted by Altman (1968). These results were varying because in various countries, there was difference in environments and circumstances and firms usually made decision accordingly. 5.2 Discussions Current ratio played a significant role in defining the variation in the prediction of corporate bankruptcy and this was also the case with the research study conducted by Altman (1968) because in his study the firm size was also playing a significant role. The variation in the prediction of corporate bankruptcy was not explained by the net profit margin ratio while it was significant in the study done by Altman (1968). The assets to long term debt ratio, and growth rate were not significantly explaining the variation in the prediction of corporate bankruptcy and study analyzed by Altman (1968), concluded the different results with some addition. 5.3 Implications and Recommendations This research was limited to the various firms listed on Karachi Stock Exchange of Pakistan only. The data taken from 44 firms which were took through various sectors of the KSE 100 Index for the year 2004-09 which were previously bankrupt and which were currently operating. It suggested that such type of study should be carried out in other countries of Asia as well, as to have comprehensive idea about the choices of the firmsà ¢Ã¢â€š ¬Ã¢â€ž ¢ decision to file for bankruptcy. Moreover, it also suggested that other factors except ones examined in this study should be researched as to have perfect idea about the selection of the prediction of corporate bankruptcy. Besides that, this study can also be replicated in other developing countries. 5.4 Future Research This study helped various investors, management and other research conductors in analyzing and observing the behavior of firms regarding their decisions to file for the bankruptcy. Research students who want to work further on the prediction of bankruptcy can be benefited by this research study. Further more, the firms will become advantageous from this study because the study clarifies the distinctive financial characteristics or the financial ratios of different firms which significantly explain the variations in the prediction of corporate bankruptcy.

A Simple Trick for African American History Essay Topics Unveiled

A Simple Trick for African American History Essay Topics Unveiled It is advised to divide such a paper into sections. There are lots of selections of topics based on the subject you would decide to compose a paper. It's up to 4000 words in length and will want to get discussed in detail by means of your teacher or supervisor. The important word in the above mentioned paragraphs is think. You'll have heard from numerous sources concerning the selection of topic for your research paper. Take a look at our list of great research topics and paper-writing strategies to assist you in getting started. You will be asked to research widely on the subject you've chosen. Start looking for the international history essay topics in the news or on the internet. If you would like to write a fantastic history essay you'd better select a topic that is familiar to you. The topic ought to be quite controversial once you are writing an argumentative write up. Deciding on the proper essay topic can at times be rather challenging. As a result, if your argumentative history essay topics aren't handled satisfactorily, you're totally free to request corrections. The Start of African American History Essay Topics Don't forget, if you're writing an argument about whether they really existed, you will want to present evidence to back up your argument but will also will need to deal with the counterargument. Because the prolonged essay contains far more words than a normal essay, the option of topic has to be such a good argument can be developed and resolved. When reading through such materials, it's important to take note of the major points which you would utilize to support your argument. Don't neglect to support your arguments. The cost of an essay depends upon the quantity of effort the writer has to exert. If you would like to compose the essay yourself, we believe it would be best to decide on a universal subject or issue. Maybe you simply do not know the subject well enough, and that's the reason you cannot locate the idea for your history essay. If you would like to choose nice and interesting American history essay topics, you should be conscious they ought to be specific and fairly narrow so that you're able to reflect on a particular problem or issue. The thesis statement needs to be included within this paragraph to permit readers to comprehend the central argument of the paper. Write such value instance, if you're mindful of essay brings with each other to define terms has talked to come up with effective explains how you will. In any case, adequate research and knowing of the material also play a vital role in writing a great essay. If you're looking for assistance with your essay then we provide a comprehensive writing service given by fully qualified academics in your area of study. Afterwards, the best action to do is to narrow the subject down according to the guidelines offered by your professor. You need to be quite sure in regards to the concept that you would like to expand on. Your very first idea is nearly always very likely to be too significant. Discuss its advantages on the folks. Ruthless African American History Essay Topics Strategies Exploited Unless you can locate a great supply of relevant research material, you have to think again about your selection of topic. The data about the real personalities from their nation are available, and it might really contribute to your paper with regard to credibility and research value. Our experts understand how to handle US history essay topics with a bit of class. It's possible to delete specific parts of your history. Look into the terms by itself and make sure that chronological order is adhered to. Thus, when conducting your research, you should be aware the authors of the material. History alumni succeed in a wide array of fields and adjust the world for the better. Analyze the historical importance of the number 13.

Global Strategy and Leadership of Telstra †MyAssignmenthelp.com

Question: Discuss about theGlobal Strategy and Leadership of Telstra. Answer: Introduction Telstra is a telecommunication and information services provider organization, which is based in Australia. It is providing various services, like; business services, internet access and fixed line services. It is a market leader in Australian telecommunication industry. The organization has adopted different effective strategies for maintaining its position in market. This report examines the strategic analysis and leadership styles of the leader at Telstra. The strategic analysis is conducted by examining the generic strategies and using SWOT analysis. Generic Strategy There are three generic strategies, such as; cost leadership, product differentiation and focus, which are used to gain competitive advantage in market. In order to improve its position in industry, Telstra is aiming on the youth and student market to offer the mobile and information technology products and other value added services. It has focused on differentiation and cost leadership. It is combining the uniqueness and broad target and providing best network and quality services (Bilbao-Osorio, Dutta Lanvin, 2013). It is offering the products to youth and students at affordable prices by using different cost saving technologies. SWOT analysis: Strengths The major strengths of Telstra are that it is one of the largest brands in Australia and it dominates the telecommunication and information service market in the country. It has the latest technology on mobile phones, i.e. Next G Network and broadband service, i.e. ADSL 2 Plus to fight with other competitors. Company is working with more than 35000 employees, who are serving the customers of 230 countries. It is actively sponsoring various sports events (Telstra, 2016). Weaknesses Telstra is not expanding its business operations internationally and limiting its growth strategy. The prices of products and services are comparatively higher than other competitors. It is making emphasis on postpaid plans rather than prepaid plans (Bartholomeusz, 2017). This company has decreased fixed line advertising and it has invested that amount on the promotion of new products like; Next G Network. The company has limited liquidity position. Threats One of the major threats for Telstra Company is market saturation in Australia. It means the mobile phone market in Australia has nearly reached to the saturation. There are changes in the customer behavior, i.e. it will find very difficult to compete for creating new customers. Technology changes are posing threats to the company (SP, 2017). Telstra has so many competitors, who are posing fierce competition for this company. There are very strict regulations in this sector in different areas like; price control, licensing, interconnection, agreements and use of infrastructure. Telstra needs to disassemble all the regulatory problems to enter in global markets. Opportunities There are so many opportunities for the company in this industry. Telstra can expand its business to international markets, like; China and Asia Pacific. The internet users in China country has been reached to 298 million up at high of 43%. The rate of internet penetration in China is at 22% that is very low and there is scope of improvement (Garca-Ochoa Mayor Bajo Dav, 2016). The internet market in China can improve the growth of company seeing from its expansion in present. Moreover, there is an increasing demand of smartphones and tablets and high speed broadband services all over Asia. Apart from this, this company can look at other alternatives but related business operations and pull its existing competencies to start new business ventures (Telstra, 2016). Telstra is the contracted data supplier of Australian government. By an initiative of government, it expanded its CDMA network to the rural population. So, the organization has most extensive CDMA networks in the Australia c ountry. Leadership The leadership team of Telstra feels very proud to be the part of one of the largest telecommunication company. The Chief Executive Officer (CEO) of Telstra, i.e. Andy Penn played his leadership role effectively. He is reshaping the team of senior executives continuously. He is including latest appointments offering a vision into his ambitions and priorities. As a senior leader, he knows how to build the organizational capabilities. He continues to play a significant role in increasing awareness of the role, which theproject management plays in implementing the organizational strategy. Andy Penn focuses on different leadership areas, for example; customer focus, personal leadership, results leadership and strategic leadership. As a leader of Telstra, he plays an important role in creating scenario of success in organization. Andy Penn is a pragmatic leader, who is practical thinker (Rothaermel, 2015). He has a strong interest in making strategy and focus on different strategies, which are used for completing any task, goal and initiative. He thinks that most of the companies either gets succeed or fail on the basis of their ability to implement strategy well. He executes the strategies by focusing on the customers. He is focusing on making good relationships with his team and building trust together. The top priority of Telstras CEO is to figure out that how his team is going to complete the tasks (Telstra, 2016). This style can be linked with transformational leadership. According to the public report and investors report, the CEO of Telstra company has effectively managed the employees and customers and he was able to align strategies with its overall objectives. Appropriateness of leadership It can be concluded that the leadership at Telstra was effective (Waterhouse, 2015). The CEO of the company played an effective leadership role. He is the person, who is responsible for Telstras effective strategy and other actions, for example; treasury, mergers and acquisitions, corporate planning, internal audit, external reporting, reporting and analysis and expansion of its business operations internationally (Northouse, 2015). All these aspects show that he played his leadership role effectively and able to attain predetermined objectives. Feedback The report is formed using various resources, like; books, journals, Telstras website and annual report of the company. For conducting the SWOT analysis, telecom industry and its other players are examined. Annual report and investors report of the company assisted in incorporating all the details in this report. Conclusion Thus, the above analysis shows the company is having better positive in the telecom industry in Australia. The company is using differentiation and cost leadership strategy. To overcome its weaknesses and threats, it should focus on the technology changes and competitive environment. It will help he organization in ruling the market for a long term. The company should conduct the research and development process to know about the products and demands in the market and then produce the products with new features. References Bilbao-Osorio, B., Dutta, S., Lanvin, B. (2013, April). The global information technology report 2013. InWorld Economic Forum(pp. 1-383). Bartholomeusz, S. (2017). Telstra leadership shake-up shows the scale of Penns ambitions. The Australian Business Review. Garca-Ochoa Mayor, M., Bajo Dav, N. (2016). Competitive advantages of the mobile phone operators in the Asia Pacific region: analysis from the strategic groups approach.Technology Analysis Strategic Management,28(5), 541-554. Northouse, P. G. (2015).Leadership: Theory and practice. Sage publications. Rothaermel, F. T. (2015).Strategicmanagement. New York, NY: McGraw-Hill. SP. (2017). Telstra Corporation Ltd. SWOT and PESTLE Analysis. Retrieved from https://www.swotandpestle.com/telstra/. Telstra. (2016). Telstra Annual Report, 2016. Retrieved from https://telstra2016ar.interactiveinvestorreports.com/. Waterhouse, J. (2015). Who is Telstras new CEO, Andrew Penn. Retrieved from https://exchange.telstra.com.au/who-is-telstras-new-ceo-andrew-penn/.

Capitalism and Social Responsibility free essay sample

Business is important to a country’s economy because it is its backbone. It is a constant battle for a better means of living. The economy gives individuals jobs and the ability to sustain themselves. 2. What is a private enterprise? What four rights are critical to the operation of capitalism? Why would capitalism function poorly in a society that does not ensure these rights for its citizen? An economic system that rewards firms for their ability to identify and serve the needs and demands of customers, (capitalism). minimizes gov’t interference in economic activity. 4 rights are private property, profits, competition, and freedom of choice  3. In what ways is entrepreneurship vital to the private enterprise system? Entrepreneurs take risks in our private enterprise system;driving economic growth and force current companies to continue to satisfy consumer’s wants. Entrepreneurs often times bring a new product or service to the market(jobs) Entrepreneurs are a main force that propel private enterprise. We will write a custom essay sample on Capitalism and Social Responsibility or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Entrepreneurs possess the desire to start a business despite the risks involved, â€Å"An entrepreneur is someone who sees a potentially profitable opportunity and then devises a plan to achieve success in the marketplace and earn those profits† (Kurtz). The private enterprise system would not function correctly if not for the entrepreneurs that pressure previous companies to compete for customers. Entrepreneurship is also a vital part of the free enterprise system because it creates job opportunities, â€Å"Every year, they create more than one of every five new jobs in the economy. † (Kurtz) The new start up companies also create more jobs by allowing business owners to be self employed. New technology and innovations are often produced by these companies the most in areas that are new and have a low level of competition. Because of their limited resources, small businesses are forced to think of new and cheaper ways to do things, â€Å"Often, they do this because they have to—they may not have enough money to build an expensive prototype or launch a nationwide ad campaign. † (Kurtz)Due to their small size, these companies are able to adapt quicker and easier than a big company. 4. Define partnership and strategic alliance. How might a motorcycle dealer and a local radio station benefit from an alliance? Partnership-association of two or more persons who operate a business as co-owners by voluntary legal agreement. Strategic alliance partnership formed to create a competitive advantage for the businesses involved. 5. What do the terms business ethics and social responsibility mean? Why are they important components of a firm’s overall philosophy in conducting business? Business ethics are the standards of conduct and moral values governing actions and decisions in the work environment. Social responsibility is the enhancement of societies welfare through philosophies, policies, procedures and actions. It is crucial for businesses to gain the trust of consumers. Business ethics are essential if a business wants to grow and succeed. Ethics are important because they are â€Å"the standards of conduct and moral values governing actions and decisions in the work environment. † (Kurtz). These decisions have an impact on the environment, employees, and customers. Social responsibility supports the welfare of a society by promoting ethical philosophies, policies, procedures, and actions. In an ethical business decision, â€Å"businesses must find the delicate balance between doing what is right and doing what is profitable. † (Kurtz). Everybody involved with the business should benefit. Usually, businesses go about ethics and social responsibility in three ways. They do this by embracing traditional corporate philanthropy, anticipating and managing risks, and spotting opportunities that profit and benefit the society. 6. In what ways do firms demonstrate their social responsibility? By providing equal employment opportunities, respecting the cultural diversity of employees, responding to environmental concerns, providing a safe and healthy workplace, and producing high quality products that are safe to use. 7. What are the five major areas in which companies have responsibilities to their employees? What types of changes in society are now affecting these responsibilities? The 5 major areas in which companies have responsibilities to their employees are; workplace safety, quality-of-life issues, ensuring equal opportunity on the job, avoiding age description, and preventing sexual harassment and sexism. 8. How does a company demonstrate its responsibility to investors and the financial community? A company demonstrates its responsibility to investors and the financial community by announcing information to the public, rather than first to selected major investors. The SEC rule of â€Å"fair disclosure† levels the playing field for all the shareholders. 9. How does microeconomics affect business? How does macroeconomics affect business? Why is it important for business people to understand the fundamentals of each? Microeconomics is the study of individual consumers, families, and businesses. Small decisions made by individuals such as deciding what shampoo to buy or what car you want has a huge effect on businesses. Macroeconomics is the study of a country’s general economy. Laws made by the government can help or hurt what a business is doing. Even laws passed in other countries can have a ripple effect on international transactions. It is important for business people to understand these terms because they shape everyday decisions that are made. 10. What are the four stages of the business cycle? In which stage do you believe the U. S. economy is now? Why? The four stages of the business cycle are prosperity, recession, depression, and recovery. A recession is a contraction that last longer than six months in which consumers stray away from frivolous spending. Businesses also make changes by slowing production and making cuts in the workforce. If a recession continues a country will fall into a depression. In a depression, the spending habits of consumers and businesses that were taking place in the recession become commonplace. Food and necessities are difficult to get and jobs are hard to come by. The recovery phase is entered when consumers start to spend more money again. As consumers give more money to businesses, the businesses in term hire more employees. Both benefit the economy greatly. I think that the U. S. is in the recovery phase because i have noticed more frivolous spending in the last few years. People are vacationing again and spending there money on things they don’t necessarily need.

Napster Scandal essays

Napster Scandal essays The Napster Case: A Working Outline, in Progress I Introduction: We wonder what is the correct position to take over the issue of whether Napster is legally and morally correct in its argument that it is a legitimate enterprise. We do not yet have a final consensus thesis. According to Napster, The non-commercial sharing of music is "common, legal, and accepted" (Rebuttal), and furthermore the sharing of digital information of all kinds is commonplace in the new digital age. II The Anti-Napster position Lars Ulrich suit against Napster: "We have many issues with Napster. First and foremost: Napster hijacked our music without asking. They never sought our permission our catalog of music simply became available as free downloads on the Napster system" (Ulrich). Lou Reed "Artists, like anyone else, should be paid for their work." (Artist/Manager Quotes) Matt Johnson of The The says "Stealing is stealing regardless of what name you choose to call it. You get people saying 'I've been a fan of yours for twenty years, I'm entitled to have it for free'. Well I'm afraid you're not. That's no different to me than going down to the local greengrocers and saying 'well, I've been coming here for twenty years and so I'm going to help myself to all your fruit and vegetables from now on thanks very much" (Artist Manager Quotes). Scott Stapp, lead singer/ lyricist for Creed: The day I decided to share my music with the world, was the day I decided to walk the fine line between art and commerce. I have been blessed in that I do what I love and can support my family with what I create. When my music is given away, as taboo as it is for me to say, it is stealing. I need not defend my motives for making music, but the distribution of my music has made me business conscious. I have decided to sell my music to anyone who wants it, that is how I feed my family, just like a doctor, lawyer, judge, or teacher. Not t...

Quiestion 1 Essay Example | Topics and Well Written Essays - 750 words

Quiestion 1 - Essay Example I was not really thinking of how my audience would feel as they read through my essay. Maybe, at some point in my essay, I was subconsciously trying to persuade my readers into believing that I made the right decision to join the Navy. However, that was not intentional on my part. I was simply stating facts in my life and I was not really aware as to how this would impact on my audience. To my knowledge, my writing style was not in any manner influenced by my audience. I wrote the essay as if I was just writing in my diary. I did not have any style of writing in mind. All I wanted to do was to be able to share my experience. It did not matter if my audience would judge me for the decisions that I made during the span of my career. I did not care even if I would be judged rightly or wrongly for the career path that I took. I wrote my experience as honestly as I can. All I wanted was to stick to the facts, unmask my true feelings and be credible, even if my audience was not interested. Project 3 My audience is my primary consideration while I was writing this essay on the need to abolish capital punishment. I wanted to get their 100% attention because I wanted to drive a point to them. At any one point of my essay, I wanted to be convincing enough so that my audience will believe the idea I was trying to espouse. On the first part of my essay, I presented to my audience that capital punishment is against the United States constitution. I also explained how the punishment is executed. I explained how lethal injection affects the person being executed. It is my purpose to present facts first to my audience so that they may have some basis for whatever decision they will come up with regards to the legality, as well as the morality of the death penalty. While writing my essay, I put in mind that my audience could be divided into three categories. First are the advocates of death penalty. Second, are the people who like me, are against capital punishment. The third c ategory is the undecided. These are the people who are still trying to weigh things and looking at the advantages and disadvantages of death penalty. I think that my essay is more directed to those belonging to the third category, the undecided. They are the people who need a lot of convincing. They are the reason why I chose the writing style that I resorted to which is the appeal to the emotions. Most of the words that I used are very emphatic and aims to touch their hearts. At the same time, I also appealed to their intellectual capacities by citing various facts and findings regarding the disadvantages of death penalty. I had to present some information on the flaws of the United States’ justice system and the abolition of capital punishment on most developed countries. I wanted to convince my audience that death penalty is inhuman, if not barbaric. With regards to my writing style, I tried to be very persuasive in order to put my audience into action against death penalt y. I often used thought- provoking questions and presented it to my audience to get them into thinking seriously on the negative effects of death penalty and why it should be abolished. I tried my best to be very purposeful in the sentences that I used. In conclusion, I think that if I chose a scholarly writing style, I would not be as effective in persuading my audience to abhor and act against the death penalty. Since my goal is not only to inform but to persuade my audience, the appeal to

Ethical Issues in Packaging practices Research Paper

Ethical Issues in Packaging practices - Research Paper Example The main aim of any business is to maximize their profit margin and for this they adopt any strategy available. The main unethical steps taken by entrepreneurs’ to mislead the customer to achieve their motive are taken under view. The marketing efforts made the consumers aware about what a certain company or organization can offer them. When talking about marketing, the first concept that is imparted is that of the 4 Ps. These Ps all signify a separate area; product, price, placement, promotion. However, the more modern teachers of the marketing concept talk about a 5th P, which is the packaging. The fact that packaging has been included in the P goes on to show how important a part of the marketing effort really is (Ayub, 2013). Probably no words are required to explain what packaging is but simply put into words, it is the material use to pack the final product. When talking about packaging in marketing context, it refers not only to the material that is used for packaging but also how that packaging appears to consumers. The outlook of the final product in most cases is dependent on the packaging rather than the product itself. In that aspect, packaging is very important because there are a large proportion of the consumers that buy a product based on how it looks. Ethics are the moral principles or bases that guide the decision making for anything. Before the buyer uses the product what makes him purchase is the packaging of the product which motivates him to pay for it leaving the other same purpose serving products. The article discusses the various ethical issues found in packaging practices by business practitioners. Environmental Paradigm It is a clear fact that not all business fully comply with the societal and environmental ethics that exist in a society. These issues could be local or international and affect the businesses as well as their workplaces. Since there are no specific guidelines for business ethics, it becomes difficult for companies to actually satisfy the customers’ and the workers’ needs related to ethical issues. Every person, every organization or every entity has different ethical standards and sometimes they are so vague that it becomes difficult to meet and understand them. In order to meet these stan dards, organizations often suffer from losses or minimize their profits so as to create a balance between the two factors that are business ethics and business profits (Bone & Corey, 2000). Compromising on profits in the short run has never proved detrimental for any business; it always provides the company with doubled revenues in the long run. Some of the major issues include bribery, gender discrimination, child labour, not paying enough to workers and product packaging etc. The issue that will be focused in this essay is of product packaging. A number of companies intentionally remove the details of the side effects of their product packages while there are some companies that run certain environment specific tests such as animal testing etc. for example; The Body Shop sells only those products that are not animal tested. According to them they sell only vegetarian friendly i.e. natural products. This has created a competitive advantage for the company and ethically sensitive pe ople prefer it over other cosmetic brands. However, a number of other companies are indulging in such practices in order to maintain their customer base (Laczniak, 1983). Packaging Canvas According to a research analyst, the packaging issues of different products are different for the three important groups that are related to the product. First being the packaging professional,

Effect of Brexit on the Financial Markets

Effect of Brexit on the Financial Markets What are financial markets? Financial markets are an open and regulated system where companies can raise large amounts of capital through bonds and stock markets, or offset their risk by investing in commodities, foreign exchange futures contracts or other derivatives. Due to the size of financial markets, they are highly liquid, meaning businesses can easily and quickly generate cash by selling their assets. Since financial markets are public and work under a lot of regulations, there is a lot of information transparency and prices of everything traded reflects this. (Source: â€Å"Six Basic Functions of Financial Markets†, Iowa State University, March 5, 2012.)   What is the European Union and what is Brexit? The European Union, like the name suggests is a political and economic union of 28 countries within Europe. The UK became part of the EU in 1973 and had to pay a membership fee every year The creation of the European union was to firstly bring countries together after the 2nd world war had left many economically and politically disabled or struggling. This economic cooperation would become the world’s biggest single market and it still is today. (European Union European Commission, 2017) Even though the UK has benefited a lot from being in a single market, there were many who thought that Britain would be better off on its own; and for this reason the government decided to have a referendum after which on the 23 of June 2016, Britain exited the Single market, giving back it’s seat in the European Parliament and all the benefits that came with it. How can financial markets affect economic performance? Demirgà ¼Ãƒ §-Kunt and Levine in their 2001 book, ‘Financial Structure and Economic Growth’ said there is a strong connection between financial markets development and economic growth. The way in which this happens is that a well-functioning financial market will efficiently direct the flow of savings and investments in an economy as such to enable businesses to accumulate capital and goods and services to be produced. A well-established financial market alongside a wide range of financial products will benefit borrowers and lenders and therefore the economy as a whole. Another benefit of an efficient financial market is that by providing a range of financial options at varying risk levels and pricing structures, borrowers and lenders can be closely matched for their individual needs. This allows investors to determine and calculate their cost of financing by looking at their returns on their investments and then choosing the best financing and investment choice for their requirements. The European Union created a single banking market with a single currency and therefore created Europe-wide financial markets which made investing and borrowing euro-denominated stocks, bonds and derivatives easy for all EU countries that are part of the Euro by eliminating exchange rate risks. By doing so, products and services that were previously only available on a country by country basis were now available to a wider market, creating better competition which in turn makes markets more efficient and prices lower for individuals.   This is called the ‘Single-Passport’ system, whereby any business set up in one-member state may provide its services to the rest without further authorisation requirements (European Commission 2016) Not only does euro-based financial markets benefit the Eurozone, it also attracts international investors to invest here and benefit from the competitive market, (Mishkin, 2012) and by being part of the ‘single-passport, Non-European companies can set up their head office in London, and have access to all the benefits of the Single Market. UK financial market relationship with the EU Professor Nick Bloom of Stanford University said: â€Å"The single European market increased competition and forced British firms to increase the level of innovation.† London is one of the biggest financial hubs of the world and hosts the largest number of banks and commercial insurance companies. According to (Belke A. et all) around 6 trillion euros, which is equivalent to 37% of Europe’s financial assets are managed in London, which is twice the amount of the nearest rival Paris. London also dominates Europe’s 5.2 trillion-euro investment banking industry. What this means is that major investments happing in some of Europe’s biggest cities are financed by companies operating within London. This is why, (Mark Carney, Governor of the Bank of England), said: â€Å"Europe relies heavily on London’s debt and equity markets.† When it comes to foreign exchange markets, the UK is way ahead of its European counterparts with an impressive almost 40% share of the worlds foreign exchange and derivatives handling. According to the (City of London Corporation) each year, $869 trillion worth of Euro, Yen and Dollars are traded from London. This is higher than all the Euro-Zone countries combined. https://www.reuters.com/investigates/special-report/britain-europe-cost/ London currently accounts for 70% of the Euro Sovereign debt trades, meaning that the EU countries cannot shut outlondons capital markets as this would be suicide. (Rueters) According to Reuters (Kai Pfaffenbach) Frankfurt is desperately trying win over businesses to relocate to their city from London. To help in this, the European Central Bank started the â€Å"Capital Markets Union† project in 2015, where they want Euro-zone financial markets to provide improved fund raising for companies by replicating Britain’s financial services and become more efficient in the stocks, bonds and other securities markets. How Brexit is affecting Financial Markets: https://www.ft.com/content/0260242c-370b-11e6-9a05-82a9b15a8ee7The question of how Brexit will affect the UK economy is very uncertain. The sterling fell to a 31 year low, stock markets fell and foreign direct investment has frozen. All these things point towards the short-term impact of Brexit to be very serious. The real question is, what will the long term effects be, and how will markets react to cope with such uncertainty about the future. The institutional framework of the EU and the euro has created dependencies amongst countries. For this reason, Brexit will have affects in not just UK financial markets, but financial markets across the globe. According to (Gordon and Shapiro 1956) the dividend discount model, expectations about future effects on financial markets will have an effect on stocks and other financial variables now. From the graph above, we can see that when the news of Brexit was announced and the UK markets became uncertain about the UK’s future in the single market, the pound fell to its lowest price in 31 years. Because of Brexit and Policy uncertainty, markets adopt a ‘wait-and-see’ attitude towards investment decisions.   If London is no longer part of the single market, it loses its attractiveness as a foreign direct investment hub and a gateway to the European financial markets. According to the financial times, almost half of the FDI coming to the UK comes from the EU and after Brexit, this investment will significantly decrease due to increased trade costs and tariffs. The Office of National Statistics (ONS) tells us that FDI has been about 5% of UK GDP between 1999 and 2015. The analysis from the financial times estimates the decrease in FDI would be 22%. The impact of Brexit on the UK financial sector can be broken down in to 3 things: What agreement can the UK make with the EU in its post-Brexit negotiations. The extent to which financial sector businesses move their operations from the UK to a Eurozone country before any negotiation agreements are made.How well the UK financial sector can survive based on its global position and relationship. Until a deal is made with the EU, we cannot predict how the market will end up like, but we can hypothesise certain outcomes like the following: Currently, the UK is still part of the EU, and hence has passporting rights. Once these rights are gone, UK firms will have to have state level authorisations from EU countries to perform activities. This will depend upon whether the regulators in those countries will allow UK financial markets to sill operate within their borders. The best outcome would be if the UK retains their passporting rights through either a negotiation or remaining a part of the EEA. Johnathon ford writes in the financial times that another option that UK based companies may have is to open up subsidiaries in different EU countries, that way giving them access to customers within those markets. This is however costly and inefficient. Alternatively, UK firms could take advantage of Third Country Regime (TCR) access provisions. What this means is that companies that were incorporated outside the EU can still do business on a cross-border basis if they wish to do so without having an establishment within that EU country, however EU law will require that the regulations and legal structure they follow complies with EU. Reuters business news tells us that Standard Chartered (Stan.L) and JPMorgan (JPM.N) were the latest global banks that have outlined plans for European operations after Brexit. Goldman Sachs Lloyd Blankfein said that â€Å"London’s growth as a financial centre could stall as a result of upheaval caused by Brexit.† So, because of Brexit and the uncertainty of what the future holds for UK’s financial markets; UK based financial firms especially those in London are looking to move their operations into the EU market to benefit from the single market. Another financial market area that will be affected by Brexit is that of selling of derivatives for companies to buy protection or lower their risk portfolio against changes the US dollar and or spikes in the price of oil. As a result of tighter financial regulations on banks, some will opt out of providing this service and those who do will offer a smaller variety of products at a higher price. Ultimately, this is bad for markets as they are not getting the best deal they can. London also dominates the euro derivatives market. EU policymakers have not liked this for a while and want to shift this to a Eurozone country after Brexit. This will in turn increase the price of trading for corporations that deal in multiple currencies as they will have to go through several clearing houses. Bankers are unsure how much extra it will cost a European company to borrow without direct access to London, however, the association for financial markets said customers are being overly optimistic if they think that lending agents will bear the burden or grunt of this. They will push the increased cost of borrowing onto the consumer, which will ultimately make them less competitive in the market. Ernst and Young say in their research paper that they surveyed major corporates including Airbus and Volkswagen and found that these companies were really worried about rising costs of funding as a result of Brexit. London has dominated the financial centre for decades and has built its reputation on the service it provides. It would be very difficult to replicate this market. This has been due to its vast talent pool, widespread use of the English language and the UK legal system and the vast amount of money going through the UK through these financial markets. Another great strength of the UK is its over-the-counter derivatives market. Corporations often use swaps to protect themselves against adverse interest rates and currency moves. Over-the-counter derivatives have to go through clearing houses who are sort of the middle man who make sure neither party defaults on their payments. Even though the UK is not part of the Euro single currency, it still manages  ¾ of all euro-denominated swaps. As the UK decides to leave the EU, this creates a problem, because now most of these swaps won’t be clearing through the bloc. Germany and France have already said that they want the euro-denominated derivatives to be cleat=red through the EU; however LSE has argued that doing so would cost London thousands of jobs. According to a private report by EY, this estimate loss of jobs could be around 83,000 by 2024. The EU needs London’s money, says Mark Carney, governor of the Bank of England. He calls Britain â€Å"Europe’s investment banker† and says half of all the debt and equity issued by the EU involves financial institutions in Britain. What impact would Brexit have on the way in which banks are regulated in the UK? There are three pillars in the UK banking regulations: The capital requirements directive IV and the capital requirements regulation.The banking act of 2009 Bank Resolution and Recovery Directive (BRRD) Since the BRRD and CRD IV were EU legislations, the UK has to decide after Brexit how much they want to keep. CRD IV implements the requirements of Basel III, which the UK would still be committed to after Brexit. Brexit will likely have an effect on the legislation application of the EEA branches and subsidiaries. What  Ã‚  impact would Brexit have on the UK insurance industry? The London market currently has access to over 500 million customers through the EU and a substantial amount of insurance and reinsurance is distributed into and out of the UK. For the UK to continue to have access to these customers, they have to negotiate bilateral treaties to ensure member states allow them passport into the EU. The prudential regulation authority (PRA) has been very involved in negotiating the solvency II directive which was based on the risk-based regime of the UK. What  Ã‚  impact would Brexit have on the UK funds industry? Currently most UK based fund managers already use Irish or Luxembourg UCITS and alternative investment funds (AIF) platforms for Pan-European distribution of funds therefore Brexit will likely not have much effect on this sector of the financial market. The problem the UK asset management industry will face is the risk of changes to rules enabling MIFID investment firms, AIFMS and UCITS management firms to choose UK based investment managers. Currently, the administration is deemed sufficient for EU firms to contract asset management jobs to the UK managers. Another drawback may be that EU member states may put obstacles in front in the form of tax regimes that make it less attractive for EU firms to hire UK investment managers. Corporate tax: The EU previously set the legal requirements for corporate tax in the UK. Since we will no longer be a part of the EU, these regulations will be revised by HMRC and new draft regulations will be put in place. Currently businesses that have offices within and outside the UK enjoy a 0% rate of withholding tax. This may no longer be the case and companies will look for ways to save themselves from varying taxations in different countries, or changing their place of business to protect themselves from higher or double taxation. VAT VAT was a European Union Concept and now that the UK government is responsible for this, they may decide to change the rates at which this is charged or what products VAT will be charged on. Accounting law At the moment, there is a significant EU accounting and company law legislations that may come under review after Brexit. These include, directive 2013/34/EU about annual financial statements, consolidated financial statements and reports. Directive 2009/101/EC about the disclosure of company documents and company obligations. Directive 2012/30/EU on the formation of public limited companies. Directive 89/666/EEC on disclosure requirements for foreign branches of companies. Global Impact of Brexit There is no roadmap to follow or analogy to invoke as a guide or pattern for how the Brexit vote will reverberate in the months and years to come. However, a few immediate consequences seem highly likely: †¢Ã‚  The flight to safety away from the epicenter of this British-EU divorce will push capital away from the region and toward key safe-haven markets including the U.S.—especially Treasuries—and to Japan. This will further lower market interest rates and raise relative currency values. †¢Ã‚  A higher U.S. dollar and Japanese yen are negative to both economies’ export sectors. In the case of Japan, this is particularly unhelpful to its efforts to reinflate and reinvigorate the economy after decades of deflation. †¢Ã‚  The higher U.S. dollar also triggers additional pressure on China to float the yuan lower, as it is caught in the divergence between its two largest export markets—the EU and the U.S.. †¢Ã‚  For the U.S., the negative impact on exports is relatively small compared with trends in domestic demand, but the deflationary pressure on tradable goods will widen the divergence between reasonably strong inflation in the services sector vs. reasonably strong deflation in the goods sector. †¢Ã‚  The European Central Bank will be compelled to raise its level of intervention yet again, as risk premiums across the region rise. Among the larger Eurozone members, Italy is in a particularly vulnerable position—now made more vulnerable. Each blow to members of the Eurozone periphery also further make Germany’s outperformance in the Eurozone even more unsustainable. The nature of the UK’s eventual exit agreement with the EU is crucial, and hangs over a multitude of markets. CEP BREXIT ANALYSIS Life after Brexit: What are the UK’s options outside the European Union? It is highly uncertain what the UK’s future would look like outside the European Union (EU), which makes ‘Brexit’ a leap into the unknown. This report reviews the advantages and drawbacks of the most likely options. After Brexit, the EU would continue to be the world’s largest market and the UK’s biggest trading partner. A key question is what would happen to the three million EU citizens living in the UK and the two million UK citizens living in the EU? There are economic benefits from European integration, but obtaining these benefits comes at the political cost of giving up some sovereignty. Inside or outside the EU, this trade-off is inescapable. One option is ‘doing a Norway’ and joining the European Economic Area. This would minimise the trade costs of Brexit, but it would mean paying about 83% as much into the EU budget as the UK currently does. It would also require keeping current EU regulations (without having a seat at the tab le when the rules are decided). Another option is ‘doing a Switzerland’ and negotiating bilateral deals with the EU. Switzerland still faces regulation without representation and pays about 40% as much as the UK to be part of the single market in goods. But the Swiss have no agreement with the EU on free trade in services, an area where the UK is a major exporter. A further option is going it alone as a member of the World Trade Organization. This would give the UK more sovereignty at the price of less trade and a bigger fall in income, even if the UK were to abolish tariffs completely. Brexit would allow the UK to negotiate its own trade deals with non-EU countries. But as a small country, the UK would have less bargaining power than the EU. Canada’s trade deals with the United States show that losing this bargaining power could be costly for the UK. To make an informed decision on the merits of leaving the EU, voters need to know more about what the UK governme nt would do following Brexit. This is the first in a series of briefings analysing the economic costs and benefits of Brexit for the UK. Economists for Brexit: A Critique Professor Patrick Minford, one of the ‘Economists for Brexit’, argues that leaving the European Union (EU) will raise the UK’s welfare by 4% as a result of increased trade. His policy recommendation is that following a vote for Brexit, the UK should strike no new trade deals but instead unilaterally abolish all its import tariffs. Under this policy (‘Britain Alone’), he describes his model as predicting the ‘elimination’ of UK manufacturing and a big increase in wage inequality. These outcomes may be hard to sell to UK citizens as a desirable political option. Our analysis of the ‘Britain Alone’ policy predicts a 2.3% loss of welfare compared with staying in the EU. This is only 0.3 percentage points better than Brexit without unilaterally abolishing tariffs which would result in a 2.6% welfare loss. Minford’s results stem from assuming that small changes in trade costs have tremendously large effects on trade volumes: according to his model, the falls in tariffs become enormously magnified because each country purchases only from the lowest cost supplier. In reality, everyone does not simply buy from the cheapest supplier. Products are different when made by different countries and trade is affected by the distance between countries, their size, history and wealth (the ‘gravity relationship’). Trade costs are not just government-created trade barriers. Product differentiation and gravity is incorporated into modern trade models – these predict that after Brexit the UK will continue to trade more with the EU than other countries as it remains our geographically closest neighbour. Consequently, we will be worse off because we will face higher trade costs with the EU. Minford’s assumption that goods prices would fall by 10% comes from attributing all producer price differences between the EU and low-cost countries to EU trade barriers, ignoring differences in quality. Sin gle Market rules (for example, over product safety) facilitate trade between EU members as it creates a level playing field. Minford’s assumption that the Single Market merely diverts trade from non-EU countries is contradicted by the empirical evidence. Minford also overlooks the loss in services trade that would result from leaving the Single Market, such as ‘passporting’ privileges in financial services. Minford’s approach of ignoring empirical analysis of trade data seems predicated on the view that because statistical analysis is imperfect, it should all be completely ignored. But such statistical biases may reinforce rather than weaken the case for remaining in the EU. Theories need grounding in facts, not ideology. Bibliography https://fullfact.org/europe/our-eu-membership-fee-55-million/https://www.reuters.com/investigates/special-report/britain-europe-cost/https://www.ft.com/content/0260242c-370b-11e6-9a05-82a9b15a8ee7https://www.ft.com/content/61221dd4-d8c4-11e6-944b-e7eb37a6aa8e?mhq5j=e5http://www.nortonrosefulbright.com/knowledge/publications/115128/mifid-ii-mifir-serieshttp://uk.reuters.com/article/uk-britain-eu-banks/banks-planning-to-move-9000-jobs-from-britain-because-of-brexit-idUKKBN184132http://www.ey.com/Publication/vwLUAssets/ey-uk-eu-planning-for-uncertainty/$File/ey-uk-eu-planning-for-uncertainty.pdfhttps://www.reuters.com/investigates/special-report/britain-europe-cost/https://www.accountingweb.com/community/blogs/geoff-collings/the-effect-of-brexit-on-uk-accountinghttps://www.accountancyage.com/2016/07/21/what-brexit-means-for-accounting-employment-and-taxation-law/ http://www.europarl.europa.eu/RegData/etudes/BRIE/2016/587384/IPOL_BRI(2016)587384_EN.pdfhttps://www.ceps.eu/system/files/WD% 20429%20AB%20et%20al%20Brexit%20Applied%20Economics.pdfhttp://www.frbsf.org/education/publications/doctor-econ/2005/january/financial-markets-economic-performance/https://www.ft.com/content/74708d46-c6ca-11e6-8f29-9445cac8966f Mishkin, F. (2012).  Introduction to Financial Markets. [online] Www2.econ.iastate.edu. Available at: http://www2.econ.iastate.edu/tesfatsi/finintro.htm#FMI [Accessed 10 Sep. 2017]. Effect of Brexit on the Financial Markets Effect of Brexit on the Financial Markets What are financial markets? Financial markets are an open and regulated system where companies can raise large amounts of capital through bonds and stock markets, or offset their risk by investing in commodities, foreign exchange futures contracts or other derivatives. Due to the size of financial markets, they are highly liquid, meaning businesses can easily and quickly generate cash by selling their assets. Since financial markets are public and work under a lot of regulations, there is a lot of information transparency and prices of everything traded reflects this. (Source: â€Å"Six Basic Functions of Financial Markets†, Iowa State University, March 5, 2012.)   What is the European Union and what is Brexit? The European Union, like the name suggests is a political and economic union of 28 countries within Europe. The UK became part of the EU in 1973 and had to pay a membership fee every year The creation of the European union was to firstly bring countries together after the 2nd world war had left many economically and politically disabled or struggling. This economic cooperation would become the world’s biggest single market and it still is today. (European Union European Commission, 2017) Even though the UK has benefited a lot from being in a single market, there were many who thought that Britain would be better off on its own; and for this reason the government decided to have a referendum after which on the 23 of June 2016, Britain exited the Single market, giving back it’s seat in the European Parliament and all the benefits that came with it. How can financial markets affect economic performance? Demirgà ¼Ãƒ §-Kunt and Levine in their 2001 book, ‘Financial Structure and Economic Growth’ said there is a strong connection between financial markets development and economic growth. The way in which this happens is that a well-functioning financial market will efficiently direct the flow of savings and investments in an economy as such to enable businesses to accumulate capital and goods and services to be produced. A well-established financial market alongside a wide range of financial products will benefit borrowers and lenders and therefore the economy as a whole. Another benefit of an efficient financial market is that by providing a range of financial options at varying risk levels and pricing structures, borrowers and lenders can be closely matched for their individual needs. This allows investors to determine and calculate their cost of financing by looking at their returns on their investments and then choosing the best financing and investment choice for their requirements. The European Union created a single banking market with a single currency and therefore created Europe-wide financial markets which made investing and borrowing euro-denominated stocks, bonds and derivatives easy for all EU countries that are part of the Euro by eliminating exchange rate risks. By doing so, products and services that were previously only available on a country by country basis were now available to a wider market, creating better competition which in turn makes markets more efficient and prices lower for individuals.   This is called the ‘Single-Passport’ system, whereby any business set up in one-member state may provide its services to the rest without further authorisation requirements (European Commission 2016) Not only does euro-based financial markets benefit the Eurozone, it also attracts international investors to invest here and benefit from the competitive market, (Mishkin, 2012) and by being part of the ‘single-passport, Non-European companies can set up their head office in London, and have access to all the benefits of the Single Market. UK financial market relationship with the EU Professor Nick Bloom of Stanford University said: â€Å"The single European market increased competition and forced British firms to increase the level of innovation.† London is one of the biggest financial hubs of the world and hosts the largest number of banks and commercial insurance companies. According to (Belke A. et all) around 6 trillion euros, which is equivalent to 37% of Europe’s financial assets are managed in London, which is twice the amount of the nearest rival Paris. London also dominates Europe’s 5.2 trillion-euro investment banking industry. What this means is that major investments happing in some of Europe’s biggest cities are financed by companies operating within London. This is why, (Mark Carney, Governor of the Bank of England), said: â€Å"Europe relies heavily on London’s debt and equity markets.† When it comes to foreign exchange markets, the UK is way ahead of its European counterparts with an impressive almost 40% share of the worlds foreign exchange and derivatives handling. According to the (City of London Corporation) each year, $869 trillion worth of Euro, Yen and Dollars are traded from London. This is higher than all the Euro-Zone countries combined. https://www.reuters.com/investigates/special-report/britain-europe-cost/ London currently accounts for 70% of the Euro Sovereign debt trades, meaning that the EU countries cannot shut outlondons capital markets as this would be suicide. (Rueters) According to Reuters (Kai Pfaffenbach) Frankfurt is desperately trying win over businesses to relocate to their city from London. To help in this, the European Central Bank started the â€Å"Capital Markets Union† project in 2015, where they want Euro-zone financial markets to provide improved fund raising for companies by replicating Britain’s financial services and become more efficient in the stocks, bonds and other securities markets. How Brexit is affecting Financial Markets: https://www.ft.com/content/0260242c-370b-11e6-9a05-82a9b15a8ee7The question of how Brexit will affect the UK economy is very uncertain. The sterling fell to a 31 year low, stock markets fell and foreign direct investment has frozen. All these things point towards the short-term impact of Brexit to be very serious. The real question is, what will the long term effects be, and how will markets react to cope with such uncertainty about the future. The institutional framework of the EU and the euro has created dependencies amongst countries. For this reason, Brexit will have affects in not just UK financial markets, but financial markets across the globe. According to (Gordon and Shapiro 1956) the dividend discount model, expectations about future effects on financial markets will have an effect on stocks and other financial variables now. From the graph above, we can see that when the news of Brexit was announced and the UK markets became uncertain about the UK’s future in the single market, the pound fell to its lowest price in 31 years. Because of Brexit and Policy uncertainty, markets adopt a ‘wait-and-see’ attitude towards investment decisions.   If London is no longer part of the single market, it loses its attractiveness as a foreign direct investment hub and a gateway to the European financial markets. According to the financial times, almost half of the FDI coming to the UK comes from the EU and after Brexit, this investment will significantly decrease due to increased trade costs and tariffs. The Office of National Statistics (ONS) tells us that FDI has been about 5% of UK GDP between 1999 and 2015. The analysis from the financial times estimates the decrease in FDI would be 22%. The impact of Brexit on the UK financial sector can be broken down in to 3 things: What agreement can the UK make with the EU in its post-Brexit negotiations. The extent to which financial sector businesses move their operations from the UK to a Eurozone country before any negotiation agreements are made.How well the UK financial sector can survive based on its global position and relationship. Until a deal is made with the EU, we cannot predict how the market will end up like, but we can hypothesise certain outcomes like the following: Currently, the UK is still part of the EU, and hence has passporting rights. Once these rights are gone, UK firms will have to have state level authorisations from EU countries to perform activities. This will depend upon whether the regulators in those countries will allow UK financial markets to sill operate within their borders. The best outcome would be if the UK retains their passporting rights through either a negotiation or remaining a part of the EEA. Johnathon ford writes in the financial times that another option that UK based companies may have is to open up subsidiaries in different EU countries, that way giving them access to customers within those markets. This is however costly and inefficient. Alternatively, UK firms could take advantage of Third Country Regime (TCR) access provisions. What this means is that companies that were incorporated outside the EU can still do business on a cross-border basis if they wish to do so without having an establishment within that EU country, however EU law will require that the regulations and legal structure they follow complies with EU. Reuters business news tells us that Standard Chartered (Stan.L) and JPMorgan (JPM.N) were the latest global banks that have outlined plans for European operations after Brexit. Goldman Sachs Lloyd Blankfein said that â€Å"London’s growth as a financial centre could stall as a result of upheaval caused by Brexit.† So, because of Brexit and the uncertainty of what the future holds for UK’s financial markets; UK based financial firms especially those in London are looking to move their operations into the EU market to benefit from the single market. Another financial market area that will be affected by Brexit is that of selling of derivatives for companies to buy protection or lower their risk portfolio against changes the US dollar and or spikes in the price of oil. As a result of tighter financial regulations on banks, some will opt out of providing this service and those who do will offer a smaller variety of products at a higher price. Ultimately, this is bad for markets as they are not getting the best deal they can. London also dominates the euro derivatives market. EU policymakers have not liked this for a while and want to shift this to a Eurozone country after Brexit. This will in turn increase the price of trading for corporations that deal in multiple currencies as they will have to go through several clearing houses. Bankers are unsure how much extra it will cost a European company to borrow without direct access to London, however, the association for financial markets said customers are being overly optimistic if they think that lending agents will bear the burden or grunt of this. They will push the increased cost of borrowing onto the consumer, which will ultimately make them less competitive in the market. Ernst and Young say in their research paper that they surveyed major corporates including Airbus and Volkswagen and found that these companies were really worried about rising costs of funding as a result of Brexit. London has dominated the financial centre for decades and has built its reputation on the service it provides. It would be very difficult to replicate this market. This has been due to its vast talent pool, widespread use of the English language and the UK legal system and the vast amount of money going through the UK through these financial markets. Another great strength of the UK is its over-the-counter derivatives market. Corporations often use swaps to protect themselves against adverse interest rates and currency moves. Over-the-counter derivatives have to go through clearing houses who are sort of the middle man who make sure neither party defaults on their payments. Even though the UK is not part of the Euro single currency, it still manages  ¾ of all euro-denominated swaps. As the UK decides to leave the EU, this creates a problem, because now most of these swaps won’t be clearing through the bloc. Germany and France have already said that they want the euro-denominated derivatives to be cleat=red through the EU; however LSE has argued that doing so would cost London thousands of jobs. According to a private report by EY, this estimate loss of jobs could be around 83,000 by 2024. The EU needs London’s money, says Mark Carney, governor of the Bank of England. He calls Britain â€Å"Europe’s investment banker† and says half of all the debt and equity issued by the EU involves financial institutions in Britain. What impact would Brexit have on the way in which banks are regulated in the UK? There are three pillars in the UK banking regulations: The capital requirements directive IV and the capital requirements regulation.The banking act of 2009 Bank Resolution and Recovery Directive (BRRD) Since the BRRD and CRD IV were EU legislations, the UK has to decide after Brexit how much they want to keep. CRD IV implements the requirements of Basel III, which the UK would still be committed to after Brexit. Brexit will likely have an effect on the legislation application of the EEA branches and subsidiaries. What  Ã‚  impact would Brexit have on the UK insurance industry? The London market currently has access to over 500 million customers through the EU and a substantial amount of insurance and reinsurance is distributed into and out of the UK. For the UK to continue to have access to these customers, they have to negotiate bilateral treaties to ensure member states allow them passport into the EU. The prudential regulation authority (PRA) has been very involved in negotiating the solvency II directive which was based on the risk-based regime of the UK. What  Ã‚  impact would Brexit have on the UK funds industry? Currently most UK based fund managers already use Irish or Luxembourg UCITS and alternative investment funds (AIF) platforms for Pan-European distribution of funds therefore Brexit will likely not have much effect on this sector of the financial market. The problem the UK asset management industry will face is the risk of changes to rules enabling MIFID investment firms, AIFMS and UCITS management firms to choose UK based investment managers. Currently, the administration is deemed sufficient for EU firms to contract asset management jobs to the UK managers. Another drawback may be that EU member states may put obstacles in front in the form of tax regimes that make it less attractive for EU firms to hire UK investment managers. Corporate tax: The EU previously set the legal requirements for corporate tax in the UK. Since we will no longer be a part of the EU, these regulations will be revised by HMRC and new draft regulations will be put in place. Currently businesses that have offices within and outside the UK enjoy a 0% rate of withholding tax. This may no longer be the case and companies will look for ways to save themselves from varying taxations in different countries, or changing their place of business to protect themselves from higher or double taxation. VAT VAT was a European Union Concept and now that the UK government is responsible for this, they may decide to change the rates at which this is charged or what products VAT will be charged on. Accounting law At the moment, there is a significant EU accounting and company law legislations that may come under review after Brexit. These include, directive 2013/34/EU about annual financial statements, consolidated financial statements and reports. Directive 2009/101/EC about the disclosure of company documents and company obligations. Directive 2012/30/EU on the formation of public limited companies. Directive 89/666/EEC on disclosure requirements for foreign branches of companies. Global Impact of Brexit There is no roadmap to follow or analogy to invoke as a guide or pattern for how the Brexit vote will reverberate in the months and years to come. However, a few immediate consequences seem highly likely: †¢Ã‚  The flight to safety away from the epicenter of this British-EU divorce will push capital away from the region and toward key safe-haven markets including the U.S.—especially Treasuries—and to Japan. This will further lower market interest rates and raise relative currency values. †¢Ã‚  A higher U.S. dollar and Japanese yen are negative to both economies’ export sectors. In the case of Japan, this is particularly unhelpful to its efforts to reinflate and reinvigorate the economy after decades of deflation. †¢Ã‚  The higher U.S. dollar also triggers additional pressure on China to float the yuan lower, as it is caught in the divergence between its two largest export markets—the EU and the U.S.. †¢Ã‚  For the U.S., the negative impact on exports is relatively small compared with trends in domestic demand, but the deflationary pressure on tradable goods will widen the divergence between reasonably strong inflation in the services sector vs. reasonably strong deflation in the goods sector. †¢Ã‚  The European Central Bank will be compelled to raise its level of intervention yet again, as risk premiums across the region rise. Among the larger Eurozone members, Italy is in a particularly vulnerable position—now made more vulnerable. Each blow to members of the Eurozone periphery also further make Germany’s outperformance in the Eurozone even more unsustainable. The nature of the UK’s eventual exit agreement with the EU is crucial, and hangs over a multitude of markets. CEP BREXIT ANALYSIS Life after Brexit: What are the UK’s options outside the European Union? It is highly uncertain what the UK’s future would look like outside the European Union (EU), which makes ‘Brexit’ a leap into the unknown. This report reviews the advantages and drawbacks of the most likely options. After Brexit, the EU would continue to be the world’s largest market and the UK’s biggest trading partner. A key question is what would happen to the three million EU citizens living in the UK and the two million UK citizens living in the EU? There are economic benefits from European integration, but obtaining these benefits comes at the political cost of giving up some sovereignty. Inside or outside the EU, this trade-off is inescapable. One option is ‘doing a Norway’ and joining the European Economic Area. This would minimise the trade costs of Brexit, but it would mean paying about 83% as much into the EU budget as the UK currently does. It would also require keeping current EU regulations (without having a seat at the tab le when the rules are decided). Another option is ‘doing a Switzerland’ and negotiating bilateral deals with the EU. Switzerland still faces regulation without representation and pays about 40% as much as the UK to be part of the single market in goods. But the Swiss have no agreement with the EU on free trade in services, an area where the UK is a major exporter. A further option is going it alone as a member of the World Trade Organization. This would give the UK more sovereignty at the price of less trade and a bigger fall in income, even if the UK were to abolish tariffs completely. Brexit would allow the UK to negotiate its own trade deals with non-EU countries. But as a small country, the UK would have less bargaining power than the EU. Canada’s trade deals with the United States show that losing this bargaining power could be costly for the UK. To make an informed decision on the merits of leaving the EU, voters need to know more about what the UK governme nt would do following Brexit. This is the first in a series of briefings analysing the economic costs and benefits of Brexit for the UK. Economists for Brexit: A Critique Professor Patrick Minford, one of the ‘Economists for Brexit’, argues that leaving the European Union (EU) will raise the UK’s welfare by 4% as a result of increased trade. His policy recommendation is that following a vote for Brexit, the UK should strike no new trade deals but instead unilaterally abolish all its import tariffs. Under this policy (‘Britain Alone’), he describes his model as predicting the ‘elimination’ of UK manufacturing and a big increase in wage inequality. These outcomes may be hard to sell to UK citizens as a desirable political option. Our analysis of the ‘Britain Alone’ policy predicts a 2.3% loss of welfare compared with staying in the EU. This is only 0.3 percentage points better than Brexit without unilaterally abolishing tariffs which would result in a 2.6% welfare loss. Minford’s results stem from assuming that small changes in trade costs have tremendously large effects on trade volumes: according to his model, the falls in tariffs become enormously magnified because each country purchases only from the lowest cost supplier. In reality, everyone does not simply buy from the cheapest supplier. Products are different when made by different countries and trade is affected by the distance between countries, their size, history and wealth (the ‘gravity relationship’). Trade costs are not just government-created trade barriers. Product differentiation and gravity is incorporated into modern trade models – these predict that after Brexit the UK will continue to trade more with the EU than other countries as it remains our geographically closest neighbour. Consequently, we will be worse off because we will face higher trade costs with the EU. Minford’s assumption that goods prices would fall by 10% comes from attributing all producer price differences between the EU and low-cost countries to EU trade barriers, ignoring differences in quality. Sin gle Market rules (for example, over product safety) facilitate trade between EU members as it creates a level playing field. Minford’s assumption that the Single Market merely diverts trade from non-EU countries is contradicted by the empirical evidence. Minford also overlooks the loss in services trade that would result from leaving the Single Market, such as ‘passporting’ privileges in financial services. Minford’s approach of ignoring empirical analysis of trade data seems predicated on the view that because statistical analysis is imperfect, it should all be completely ignored. But such statistical biases may reinforce rather than weaken the case for remaining in the EU. Theories need grounding in facts, not ideology. 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