Just in Time Concept

Financial AccountingS. Das Income Measurement and Accrual Accounting Recognition and Measurement in Financial Statements DEFINITIONS Revenues:inflows of assets or reductions in liabilities from selling goods and services Expenses:outflows of assets or increases in liabilities used up in generating revenues. Recognitionformal recording of an item in financial statements, in words and numbers Measurementquantify the effects of economic events numbers unit is money – dollars historical cost – recorded for simplicity, verifiability, reliability Current cost-relevant but less reliableOnly an estimate until item is sold Net income= Revenues-Expenses. Incomeamount of resources available for consumption at the end of a period and yet be as well off as it was at the beginning of the period. CASH BASIS Versus ACCRUAL ACCOUNTING So if we DEFINE PERIOD to be lifetime of a firm (which can only be defined for a firm with a finite life) then we are only interested in the earnings of a firm over its lifetime. In that case: a. just wait until the firm dissolves. b. Add up all the cash inflows over its lifetime other than those for sale of own stock. c.Add up the cash outflows over its lifetime other those for stock repurchase or dividends. d. Find the difference between cash inflows and outflows and YOU HAVE NET INCOME. e. THE ABOVE IS ALWAYS TRUE. However, if you DEFINE PERIOD TO BE ANY INTERVAL SMALLER THAN THE LIFE TIME when you wish to get information on earnings as intermediate feedback, then there is the following problem: -transactions may not be complete on a cash to cash basis – because the earnings process is continuous – Period1buy inventory for $5 Period2pay for inventory Period3sell and deliver inventory for $15Period4receive payment from customer. KEY QuestionWhen should revenues and expenses be recognized? One possibility is the cash basis recognize revenues at time of receiving cash and recognize expenses at the time of paying cash. E xample: A toy retailer starts business on January 1, 2000. The retailer Mr. XYZ pays two months rent in advance on his store for $2000. He also purchases and pays for toys worth $35,000. However, during the month of January, he sold no toys. During February, he sells all the toys he has for $45,000 but collects only $5000 of that in cash.He expects the neighborhood children to pay the remaining $40000 in March. JanFebruary Revenues—————– Less: Expenses Cost of toys—————– Rent—————- Total Expense—————- Income—————– Limitations of Cash basis 1. expenses are not aligned in time with the revenue that they produce. 2. recognition of revenue is unduly postponed. A Second possibility is the use of Accrual basis – depends upon when some critical event occurs. What happens to income (accrual basis) using same example? JanFebruary Revenues—————– Less: Expenses Cost of toys—————–Rent—————- Total Expense—————- Income—————– Comparing the Cash And Accrual Bases of Accounting -Basic difference one of timing Recognize Revenue whenRecognize Expense when Cash Basis cash is received cash is paid Accrual Basisrevenue is earned it is incurred Exhibit 4-2 transparency Accrualmatching of expenses with the corresponding revenues OR match resources used (expired assets- expenses)to generate revenue. The accrual concept forces accountants and managers to focus on changes in owner’s equity rather than merely reporting changes to the cash or other assets.The realization concept underlies the decision rules that accountants use in determining when revenues should be recognized and expenses matched to them. The Revenue Recognition Principle Revenue:Increase in Asset Or Decrease in Liability from Delivery of Goods Or Services Realized:Goods Or Services Exchanged for Cash Or Promise of Cash . Earned:Revenue earned when realization is complete or no significant obligations left How are Revenues recorded? †¢At the same time as cash is collected. †¢Before the time cash is collected. †¢After the time cash is collected. Possible Interpretations of Recognition Principle:Percentage of Completion:For long term projects, revenue recognized as stages are completed, based upon proportion of total cost incurred, Franchises: Initial fee recognized as revenue only FAS 45 â€Å"substantial performance† of its obligations B&J 32 Production MethodCommodities – Traded at established price; so revenue recognized when they are produced. Installment Method:opposite of production method: no reasonable basis to estimate collectability, so revenue on sale recognized as cash is collected Continuously:such as rent and interestThe criteria used in accounting to decide the recognition of revenues is : †¢A firms has performed all, or a substantial portion, of the services it expects to provide. †¢The firm has received cash, a receivable, or some other asset whose cash equivalent it can objectively measure. Expense Recognition and the Matching Principle The matching concept relates revenues and expenses so that owner’s equity is neither overstated nor understated at any points in the steam of events that constitutes operations. Expensewhen an Asset Has No Future Benefit i. e. It Is Used Up [Or] a Liability Is Incurred.Matching:Associate Revenues with Costs (expenses) Necessary to Generate them UnexpiredSometimes not done with specific items of product sold, but with period in Assets which they were sold eg. sales clerks' salaries are expensed in the period in which employees worked. Expired Some things never go through asset stage, since benefit is seen to expire as soon Assets as costs expended (purchased) = Period Costs; eg. utilities costs, telephone, fuel for vehicles (not asset) Two examples: 1. Expired asset versus 2. Expensing of benefits/ resources that never went through asset stage.A. Depreciation Expense estimated useful life and eventual salvage or resale value Manipulation to increase or decrease income Salvage deducted before calculating periodic expense because it is expected to be recovered and will remain an asset. B. Research ; DevelopmentDell Computer in its 1995 Annual Report list â€Å"Research, development and engineering† of $65,361,00 as operating expense on Income Statement. – an expense is an asset whose usefulness to the company is complete – it is deemed that R;D has no future benefit left hence out right expense without going through asset stage.For an accrual based company, Statement of Cash Flows provides information on Sources and Uses of Cash. Accrual basis necessary because we divide the earning of income, a process that takes place over a period of time, into artificial segments (reporting periods). Example: In the 1995, Income Statement Maytag Corporation had a net loss of $20,476,000. Their Statement of Cash Flows showed an increase in cash equivalents of $30,811,000. Cash provided by operating activities was $319,979,000. How can a company with a net loss have a gain in cash?This is possible if expenses exceeded revenues since Income statement is on accrual basis. It contains revenue amounts that may not have been realized in cash (still in accounts receivable) and expenses that may not have been paid for such as depreciation, and unpaid purchases. Also look for income from continuing operations versus loss due to extraordinary items and disposal of existing business. (As was the case in Maytag 1995) Accrual Accounting and Adjusting Entries: at end of period – Four Types: 1. Deferred Expense: Cash Paid before Expense Is In curredAsset created; as asset expires it becomes an expense, via adjusting entry Entry DuringAsset End of Expense period Cash period Asset eg. * prepaid rent becomes rent expense, a month at a time * Depreciation allocates cost of asset over its useful life – does not measure decline in value ? Based on estimates of salvage value and life of asset ?Periodic expense= [actual cost – est. salvage value]/estimated life ? debit is depreciation expense ?credit is not to asset account, which will always reflect cost, ? but to accumulated depreciation- contra account that is, an asset account with a credit balance 2. Deferred RevenueCash Received before Revenue Is Earned Liability Created Because Goods Or Services Still Owed EntryDuringCashEnd of Liability period Liability period Revenue ?Eg. unearned â€Å"the other company† from deferred expense entries ? for example, The landlord who received the prepaid rent has a deferred revenue ? liability is reduced, revenue inc reased, as time passes ?magazine subscriptions received in advance, earned as magazines mailed 3. Accrued LiabilityExpense incurred before Cash Is PaidOpposite of deferred expense EntryDuring-End of Expense period- period Liability Eg. taxes, payroll, utilities; interest for short term loan paid at maturity with principal 4. Accrued AssetRevenue Earned before Cash Is Received Opposite of deferred revenue EntryDuring-End of Asset period-periodRevenue ?both rent and interest are earned as time goes by, regardless of when cash received ? need adjusting entry if payment is not received. Exhibit 4-5 (text pp. 165) Example: P4-2 REVISITING THE ACCOUNTING CYCLE Steps taken to collect the necessary information to prepare financial statements (Exhibit 4-8) . Collect and Analyze 2. Journalize Events 3. Post to Ledger Accounts(Results in Unadjusted Trial Balance) 4. Journalize and Post adjustments(Results in Adjusted Trial Balance) 5. Prepare Financial Statements 6. Journalize and Post Closing Entries(Results in Post-Closing Trial Balance) 7. Post Closing Trial Balance 8. Optional: Reversing Entries The Closing Process: Two types of accounts:Balance Sheet= real accounts = permanent Income Statement= nominal accounts = temporary (Includes Dividend account) Purpose of closing entries:-Close temporary accounts -transfer net income (loss) to retained earningsProcess of closing: Debit Each Revenue Account: Sum Up a Single Credit to Income Summary. Credit Each Expense Account, Sum Up a Single Debit to Income Summary. Debit Income Summary If It Has a Credit Balance (Company Had Net Income) ORCredit Income Summary If It Has a Debit Balance (Company Had Net Loss) Credit Dividend Account, Debit Retained Earnings Exhibit 4-9 (text pp. 171) Example 1:E4-23. Ben ; Jerry’s Example 2:Let us look at McDonald’s Corporation’s 1998 Statement of Income shown on Page 139 of your text. Notea. Retained Earnings at the beginning and end of 1998 were $12,569 and $13,879. mil lion respectively. b. Total dividends paid to common and preferred shareholders were $239. 5 Use the numbers from the Income Statement to Reconstruct the relevant account balances. Then Close them to Income Summary and from there to Retained Earnings. EXAMPLE P4-10 Post-closing Trial Balance will only contain Balance Sheet accounts.When is a sale a sale? In an article concerning troubled MiniScribe Corporation (The Wall Street Journal September 12, 1989 – MiniScribe’s Investigators Determine That â€Å"Massive Fraud Was Perpetrated†. ) it was stated that â€Å" †¦ he company dramatically increased shipments to three warehouses, booking $56. 4 in sales and gross profit of $5. 4 million. † (Note that the warehouses being shipped to belonged to MiniScribe) The volume of shipments only called attention to the problem – it was not the problem. Problem is it is not Customer’s warehouse but MiniScribe’s – shipping goods to ones? own warehouse is not a sale – but a relocation of inventory – must be an arm’s length transaction.This was one among many violations – MiniScribe was also shipping bricks to an fictitious company, and recording them as sales revenue. 1. Claiming Tomorrow’s Profits Today, Forbes, October 17, 1988, p 78. Case 4-1:Ben ; Jerry’s Revenue Recognition – Initial Franchise Fee Footnote on 147 of text. FASB SFAS 45 allows franchisor to recognize initial franchise fee as revenue only when â€Å"substantial performance† of its obligations and when collection of the fee is reasonably assured. Revenue Recognition: The Company recognizes franchise fee as †¦.. when services required by the franchise agreement have been substantially performed†¦. 1. Consistent with SFAS 45.The footnote refers to certain mandatory services that the company promises to perform for the new stores. Performance of these services is the basis for recognizin g the fee as revenue. Note that the footnote specifically uses the wording substantially performed. 2. The company recognizes the franchise fees as revenue in proportion to the stores for which the required services have been substantially performed. 3. Franchise fees are not large relative to net sales in any of the years. Franchise fees are less than 0. 4% of net sales in each of the three years. Unearned Revenue: Realizability Vs.Earned criteria – realized BUT has it been earned?. 1. Case 4-2:Gateway- Revenue Recognition Refer to page 30 of Gateway’s Annual Report, under â€Å"Summary of Significant Accounting Policies† 1. Gateway recognizes revenue from product sales when products are shipped. Revenue from separately priced extended warranty programs is deferred and recognized over the extended warranty period. 2. â€Å"Extended warranty programs† are contracts to service products for a period beyond the original warranty. These contracts are purchase d for an additional amount above the product purchase price. . The revenue from the extended warranties is recognized over the warranty period because it is earned over the entire period, as coverage is provided. 2. Case 4-3: Sears, Roebuck, ; Company – Revenue from Service Contracts. 1. Under the accrual basis, revenue should be recognized when it is earned, rather than when cash is received. Since the retailer incurs costs to repair damages over the life of the service contract, the revenue from the contract is also earned over the life of the contract. 2. Revenue to be recognized each year: Year 1 Year 2Year 3Sales Revenue Service Contract Total revenue Typically, for service contract you receive cash or payment, for future services, that creates a liability. Thus one has an unearned revenue account. In this particular example, the liability account would contain XXX at the end of year 1 and XX at the end of year 2 reported under current liability as unearned revenue on th e balance sheet. Sears, Roebuck, ; Company 1998 Annual Report Footnotes to Revenue Recognition The Company sells extended service contracts with terms of coverage between 12 and 36 months.Revenue and incremental direct acquisition costs from the sale of these contracts are deferred and amortized over the lives of the contracts. Costs related to servicing the contracts are expensed as incurred. 3. American Airlines: 1996 total revenues of $17,753 million. Balance sheet reported ? Air traffic Liability? of $1,889 million. – unearned revenue (~~11%) from ticket sales. -when retired – Retired when ticket holders are provided transportation. -Refundability a factor -What if carrier cannot provide service due to strike or storm. -When is revenue earned ? – when ticket is bought when passenger boards – when plane takes off – when the round trip is complete. AMERICAN AIRLINES 1998 Annual Report (Summary of Significant Accounting Policies) (Note 1) PASSENGE R REVENUES Passenger ticket sales are initially recorded as a component of air traffic liability. Revenue derived from ticket sales is recognized at the time transportation is provided. However, due to various factors, including the complex pricing structure and interline agreements throughout the industry, certain amounts are recognized in revenue using estimates regarding both the timing and the amount of revenue to be ecognized. Actual results could differ from those estimates.In 1998, American showed revenues of $17,449 million and recorded â€Å"Air traffic liability† of $2,163 million on its Balance Sheet. Time Warner Inc. According to Annual Report they publish 26 different magazines. At end of 19985 unearned subscription revenue was $741 million. -included in their is your paid subscription to Time for issues that you have yet to receive. -magazines are sold at different rates depending on how you subscribed and for how long. – how to keep track of when earned. when does the earnings process complete When subscription received – if main source of revenue is advertising. When production is complete and delivery is made. A combination of these two. Note that Time does not have difficulty to keep track since subscription price variations and customer records are all kept by computers – closely monitor the process from payment to through unearned revenue to delivery and revenue earned. Time Warner Inc. 1998 Annual Report (Note 1) The unearned portion of paid subscriptions is deferred until magazines are delivered to subscribers.Upon each delivery, a proportionate share of the gross subscription is included in revenues. E 4-81. AugustCash Subscriptions Received in advance (Unearned Revenue) To record collection of 900 subscriptions Assets =Liabilities+ Owner’s Equity 2. August 31. Unearned revenue Subscription revenue To record subscriptions earned during August. Assets=Liabilities+Owner’s Equity 3. Net income for t he month of August would be under stated / overstated by XXX if the accountant forgot to make the entry to recognize revenue earned. (Self Note: Also see Magazine Subscription case) E 4 -9

Environment: Global Warming and Current Carbon Dioxide Essay

Ansel Adams, a photographer and environmentalist, once said, â€Å"Once destroyed, nature’s beauty cannot be repurchased at any price. † Mother Earth is known as the one of the most beautiful planets and is the only planet that can support life. Unfortunately, Mother Earth is suffering due to many environmental problems that may affect humans and the ecosystem. These problems can result in major consequences for everyone’s daily life. The major environmental problems that are facing the world today are global warming, deforestation and air pollution. First of all, one of the greatest environmental concerns we have today is global warming. Global warming refers to the gradual increase in the earth’s average surface temperature. Global warming has resulted in several consequences. The rise of water temperature is related to global warming. The increase of water temperature is responsible in killing the ecosystem in the water as they could not tolerate the heat. For instance, coral reefs are highly sensitive to small changes in water temperature. Scientists say if current carbon dioxide emission trends continue on, the world coral reefs could be virtually destroyed by 2050. Global warming is indeed very worrying as it poses a great danger for our survivor. The sun’s scorching heat comes to Earth directly and hence the earth’s surface becomes seriously heated. Sea level is increasing rapidly as glaciers are melting with steady pace engulfing the islands having low land level. Research has been done that Maldives will sink by the end of the century due to rise of sea level as most of the land on the islands is just a metre above sea level. Furthermore, sea levels have risen between 4-8 inches worldwide during the last century, and experts predict they could rise as much 2 feet in the next 100 years. Next, deforestation is one of the major determinants of the world’s environmental problem. Deforestation refers to the cutting down and removal of all or most of the trees in a forested area. Deforestation has resulted in numerous adverse effects. Deforestation can cause biodiversity to decline. When forest is cleared, wildlife is deprived of habitat and becomes more vulnerable to hunting. In addition, 80% of the world’s documented species can be found in tropical rainforests and deforestation puts at risk a majority of the Earth’s biodiversity. Moreover, deforestation has caused soil erosion because when the soil is exposed to sun, it became very dry and eventually, infertile and could not be cultivated. When there is rainfall, it washes away the soil to the river then to the sea. Take the case of China, from the Yellow River, over 1. 6 billion tons of sediment flows into the ocean each year. The sediment comes mainly from soil erosion in the Loess Plateau in the northwest of the country. Finally, one of the most concern environmental problems today is air pollution. Air pollution generally means the contamination of air by smoke and other poisonous gases. Air pollution has resulted in several problems. Air pollution affects the health of people adversely such as heart disease and damage to the brain, nerves, liver, or kidneys. According to the World Health Organization (WHO), about 2 million premature deaths are caused each year due to air pollution in cities across the world. Furthermore, air pollution can result in acid rain which can cause paint to peel, corrosion of steel structures such as bridges, and erosion of stone statues. Also, air pollutantssuch as carbon dioxide can cause ocean acidification which harm fish and other aquatic life. Air pollution has affected human’s everyday life, for instance, air pollution in Beijing has gone literally off the charts: the levels are so bad that they go well beyond the worst possible rating on the official air quality index. Mother Earth is our home and we have done so much harm to her. We should be responsible for the environmental problems we have caused. In order to prevent further destruction to Mother Earth, we have start now before it is too late. Firstly, though there is no known solution to global warming yet, there are solutions that will aid to prevent it from growing even further. For instance, planting a tree as a nation because during photosynthesis, trees absorb carbon dioxide and release oxygen and the cycle carry on when there is light available. A single tree can absorb approximately one ton of carbon dioxide during its lifetime. Also, through recycling half of the household waste, we can save 2,400 pounds of carbon dioxide annually. Secondly, there are no direct solutions to deforestation but many countries in the world have started reforestation and forestry, and East Asian nations are leading in this regard. Many East Asian countries, including China, have successfully managed to reverse deforestation. Likewise, by making suitable changes in the law, so that cutting trees in a forest area becomes a major crime. Through this, deforestation can be control. Last but not least, to solve air pollution, flue-gas desulfurisation can be use to remove sulfur dioxide from exhaust flue gases of fossil fuels power plants.  In order to reduce air pollution, cars are manufactured with catalytic converters which will convert harmful pollutants such as carbon monoxide to harmless substances such as carbon dioxide. In conclusion, we, the human race are the cause of all these environmental problems. We should work together and help preserve and protect Mother Earth. If we don’t act now, the magnificent world will vanish and soon, all living things would suffer. It is our duty to help carry out actions that will help cease the threats that our environment is facing now.

Catcher In The Rye Essay Example for Free (#4)

Catcher In The Rye Essay A journey is more than a physical movement from one place to another. All journeys no matter how arduous entail setbacks and barriers that must be met. In doing so the traveller experiences a more significant inner journey of self growth. This is evident in the journey from adolescence to adulthood during which setbacks and barriers may entail a loss of innocence. J. D Salinger’s novel the Catcher in the rye explores this concept through various literary techniques. ( thesis) Loss of innocence as a major issue within the concept of a rites of passage is explored by J. D Salinger through the protagonist Holden Caulfield. His journey appears to be one self destructive act after another. This adult world into which Holden is forced into disturbs him profoundly. In his view, the adults who dwell this world, seem to be filled with phoniness, pretence and social compromise. He finds it almost intolerable to communicate with most adults and peers. This is prevalent throughout the book when he constantly brings up the question of what happens to the ducks in winter. The adults’ response to this recurring question is of contemn and expectation to know the answer, therefore never giving him an adequate explanation. This clearly demonstrates how his innocent mind conflicts with this phony adult world, and his response, is to rebel against this whole society. â€Å" quote† Holden expresses his rebellion through his inability to progress in life and his hatred of people. It is really only in children that he sees the true simplicity of honesty- and that is his escape from this adult phony world. Salinger portrays the transition from adolescence to adulthood as a quest for self identity and self discovery. For Holden however, his journey is a bombardment of obstacles in his search for connection with others, thus highlighting the angst of growing up. Holden finally breaks down with the constant disappointments and let downs he encounters. â€Å"quote ans technique† From his fight with Stradlater to Maurice’s exploitation of a prostitute, to Mr Antolini’s behaviour, Holden just cannot handle any more letdowns so his odyssey is one of loneliness and cynicism. An example of this is when Holden abruptly gives Sally an ultimatum to leave their current lives behind and build a future without the promise of stability. Sally’s refusal to this proposal results in Holden lashing out at her hence elucidating Holden’s naivety. And, just like a kid, he thinks that everyone is to blame except for him. The inability to meet setbacks and barriers and accept a loss of innocence within the jouney from adolescence to adulthood will inevitably lead to ones downfall. The deliberate irony is that Holden strives to act as a grown up but constantly acts like a child is seen in his provocation of his peers and his irrational thinking. â€Å"quote † The title of the book, â€Å"Catcher in the Rye,† is more than just a pretty ditty. It is Holden’s dream to be the catcher in the rye, thus save little children from falling off the cliff into adulthood. â€Å"Anyway, I keep picturing all these little kids playing some game in this big field of rye and all. Thousands of little kids, and nobody’s around–nobody big, I mean–except me. And I’m standing on the edge of some crazy cliff. What I have to do, I have to catch everybody if they start to go over the cliff–I mean if they’re running and they don’t look where they’re going. I have to come out from somewhere and catch them. That’s all I’d do all day. I’d just be the catcher in the rye and all. I know it’s crazy, but that’s the only thing I’d really like to be. † Holden is adamant on playing the adult role of protecting children and their innocence that gets lost in the adult phony world. He envisions protecting and shielding children from the evils of society, when he himself is one who is in a state of conflict between adolescence and adulthood. However, it is through the telling of his story that Holden eventually gains control of his disturbed past. His search for self identity and discovery can be seen as a search for tolerance, acceptance and understanding- something that he finally experiences in the final scene with Phoebe riding the carrousel. When he see’s Phoebe on the carrousel, he accepts that he is not a child anymore indicating that he is perhaps more accepting of change. Towards the end, Holden has found some wisdom when he claims to â€Å"sort of miss everyone. † There was some light for him at the end of the tunnel- and that light is hope and acceptance that he doesn’t live in such an evil world that he made out to be. Holden wants desperately to protect this idealistic life but perhaps he realises at the end that it is not possible and that maturity is a means of accepting what life throws at one. How he deals with obstacles along the way conveys Holden’s journey from adolescence into adulthood. Catcher In The Rye. (2016, Dec 15). We have essays on the following topics that may be of interest to you

Assignment Example | Topics and Well Written Essays - 250 words - 110

Assignment Example ment has several elements, one that stands out is that of the participation in the political process; a concern of extreme concentration of political power. The Tea Party Movement is one political movement dedicated towards criticizing the government of the day that does not deliver. They seek to follow fiscal conservatism and belief that the federal government has exceeded its constitutional mandate. In the Declaration of Independence, Pane asserts that citizens should always strive to take part in the political process because the process can be corrupted if left to time and chance. For some time now, the Tea Party Movement, a coalition of libertarians and estranged Republicans, has played an important role in the republican’s bid to control the House of Representative sometime during 2010. They are increasingly becoming a powerful political force having an effect in the election process and making sure that the House of Representatives is impacted. The movement has really had an effect during the primaries of 2010, with them voting for certain candidates whom they thought would push for their agenda. According to Kramnick & Lowi, (2009), the Declaration of Independence has numerous references that point towards the protection of the common good in the political field of the United States of America. This can be referred to as the element of the protection of the common good in a political Assignment Example | Topics and Well Written Essays - 1000 words - 42 Assignment Example Moreover, they are trying to reduce the Sheriff’s administrative law. Robin Hood and his responsibilities. Robin Hood and his men have been responsible for the internal operations of the group to enhance efficiency and compete with sheriff. Moreover, Robin Hood has tried to ensure the availability of food for the members (Rhead 1-300). Responsibility of Merrymen. Merrymen focuses towards the new opportunities of the market in order to enrich the competitive advantages and consumer expectations. At the same time, Merrymen has changed their policy of outright confiscation of goods with the aim of fixing the transit tax of sheriff (Rhead 1-300). Weaknesses. The large expenditure has become a problem for the Robin Hood’s team due to lack of accommodation facility. Similarly, unorganized planning has exposed the weaknesses of the Robin Hood’s band during the early days (Rhead 1-300). In order to establish a plan regarding Robin Hood and Merrymen, both the leaders have a personal vendetta against the Sheriff. Thus, it can be asserted that in order to accomplish the long term goal, it will be require to establish a mutual understanding among them, which will help them to accomplish the larger goal against the Sheriff. This implies that they need a new plan for the fulfillment of the goal. On the other hand, in order to highlight the recent course action it can be asserted that by sacrificing their one arm power of attorney both the leaders can enrich their desired goal more easily. However, the collaboration or alignment can reduce the chances of risk and on contrary, it will enhance the potential for the great success (Rhead 1-300). According to the study, it has been revealed that during expanding the band’s operations in Sherwood Forest, Robin Hood would face problems regarding food. Moreover, the problems have been due to the cost of food and the purchasing power of the people.

Evaluation essay (Women as Independent, Respected, Respectful, and

Evaluation (Women as Independent, Respected, Respectful, and Equal Human Beings to Men) - Essay Example The ideas of â€Å"liberty, equality and fraternity† inspired several women to fight for their rights. And now women are slowly gaining the right which will help them to stand on par with men in every aspect of life. Women are the embodiment of sacrifice, silent suffering, humility, faith and knowledge. Women have every right to occupy a position in the society which is equivalent to men. If all human-beings are equal how can we say women are inferior to men. To call women a weaker sex is a libel, its men injustice to women. If by strength it is meant brute power than women are weaker than men. If by strength it is meant moral power then women is immeasurably superior to men. Woman is the companion of men, gifted with equal mental capacities. She has the right to participate in all the debates, deliberations and activities and offer her suggestions along with man for bringing about a better social order. And she has an equal right of freedom and liberty with them. If the women are denied their rights the blame goes to men. Men have regarded women as his tool. She has learned to be his tool and in the end found easy and pleasurable to be such, because when one drags another in his fall the descen t is easy. If only the women of the world would come together they could display such heroic non-violence as to kick away the atom bomb like a mere ball. Women have been so gifted by God. If an ancestral treasure lying buried in the corner of the house unknown to the members of the family suddenly discovered, what a celebration it would occasion. Similarly women’s marvellous power is lying dormant. The wife is not the husband’s slave but his companion and his help-mate and an equal partner in all his joys and sorrows as free as the husband to choose her own path. We often hear behind a successful man there is a woman. This is hundred percent true. Without the encouragement of women, men cannot achieve anything. Today we find women in all walks

Differences between Single and Marriage Life Essay

Differences between Single and Marriage Life - Essay Example It is evidently clear from the discussion that there are a number of factors such as friendship, freedom and money matters that one must consider before making a decision to marry or to stay single. However, it is undeniable that at least married and single individuals are both alike and different. Marriage changes a lot in people’s lives. Commitment to marriage implies that one has to be fully responsible for their spouses both materially and emotionally. Expenses are supposed to be managed economically and should be based on the family interest but not an individual’s interest. It is not easy for a married couple to be extravagant as it is likely to happen amongst singles. Moreover, married people have to exercise utmost obligation of taking care and raising their children in a responsible way. Children come with a lot of demands that ought to be met. Medical expenses, education, and food are some of the major expenses that every married couple must think about. Addit ionally, there are the issues of fixed time management amongst married people. A married person must always find time to spend with their children, wives or husbands almost on a daily basis unlike single people who have all the time to decide on what to do and at what time, even in the middle of the night. It is obvious that freedom amongst the married couples is always denied by the fact that their lives are always busier. Married people normally make decisions from a wife’s or husband’s points of view because they must think of themselves as husband and wife and that every decision they make affect their families as a whole. Although single people are always in control of their financial destiny they may be faced with high expenses of courtship thus making them spend more than they can in the name of wooing someone. On the other hand, married people may also enjoy their financial freedom by sharing their dual income but tax returns and perhaps children’s educa tional or medical expenses may be high. Married couples may at times experience disagreements amongst themselves while singles may also disagree with their roommates, friends or even annoying behaviors brought about by infatuation while dating. Additionally, it is common for both singles and married people to set higher objectives and goals for themselves. Both are always concerned about their future. Both would strive to have better future by creating aims that they want to achieve. For instance, single persons may decide to spend on education as a way of expecting better job or promotion in their careers. On the other hand, married people my plan for their young children better education or even plan to buy a home for their families. Also, the need to remain comfortable is shared amongst the singles and married couples. The more a married couple stays together, the more they get comfortable with their spouses and their lives in general. Singles too normally decide to stay single r elaxation, peace of mind and comfort is the hallmarks of singleness. Single people normally enjoy a lot of privacy in their lives because they are not bothered by anybody. They may decide what to do with their lives such as spending the whole day with their friends anywhere at any time because they live freely.  

Target Market Essay Example | Topics and Well Written Essays - 500 words

Target Market - Essay Example From a layman’s point of view, the governmental and institutional sectors provide good growth opportunities. However, on a broader horizon, it can be seen that world markets other than USA provide exponential growth opportunities. These regions include Pakistan, the 2nd largest consumer of CNG vehicles where government has heavily invested in the CNG infrastructure, Bangladesh and India. Due to the increased environmental awareness amongst the target market and the technological innovations which have improved the quality and efficiency of CNG buses to match the diesel buses. Moreover, the experience of Argentina and Pakistan has shown that it is tried and tested and the investment of the investors will not sink. Moreover, it would save the huge bill on fuel and is economical. The present hike in fuel prices (petrol and diesel) is another factor which is in favor of converting fleets to CNG powered vehicles. The common observation is that even though the capital investment on a CNG bus might be US $ 25000 expensive as compared to traditional diesel buses, but the savings due to fuel economy are enough to cover up this gap in as small a time frame as 1 year. Moreover, CNG, contrary to traditional belief, has been proven to be a safe and hazard proof fuel. Considering the above now is the perfect timing to enter into this sector. Considering the above statistics, it can be concluded that Asian markets are the fastest growing markets for the CNG industry. The North and South American regions together hold immense unexploited potential and growth is expected in upcoming years. Growing global markets: the greatest opportunity for CNG Buses is the dynamic growth being experienced in the CNG sector in economies like Latin America (Argentina, Brazil), Pakistan, India, Bangladesh and Thailand. Awareness in Institutional Clients: Over a period of years, the environmental awareness has been increasing. This is

Human Geography Analysis Essay Example | Topics and Well Written Essays - 2750 words

Human Geography Analysis - Essay Example Malawi is a little smaller than Pennsylvania with a population of 15 million people and 90 percent of them living with an average income less than two dollars a day. Experts are in the view that by the end of this century, the population is likely to be almost 132 million. At present, about 40 percent of people in Malawi live below the nation's poverty line. The cause may be for lingering poverty is that in excess of 70 percent of Malawians live in countryside areas where they depend on agriculture for living. Almost all farmers cultivate maize; however, the income from it is insufficient that few people have enough money to live on. Three different views for the future of worldwide agriculture are ranged contrary to one other. The first and most admired progressive idea for Malawi, perceives these agriculturalists as fighters of a condemned way of life to be supported in future. Paul Collier, Oxford economist, is the man behind this ‘noble’ vision who offered in a conte mptuous November 2008 Foreign Affairs article in which he hit the ‘romantics’ who coveted for farmer cultivation. Seeing wages in cities are higher than in the rural area, and most advanced nation is capable to nourish itself without peasant farmers, Collier demanded for the features of big agriculture. He as well asked European Union to assist with genetically improved crops and the United States to stop domestic aids for biofuel. Biofuel aids are ridiculous, as they cause food prices to go up, drain off grains from the bowls of the poor into the production of biofuel with partial environmental advantages. Even though global agroindustry has made great profits since the East India Company, it hasn't improved the standard of farmers and farm laborers, who are always society's deprived people. If the aim is to make the world's poorest people wealthier, it is better to invest in their farms and place of work than to drive them to the metropolises. World Development Report in 2008 by the World Bank found that, certainly, investment in farmers was effective and real ways of raising people out of poverty and starvation. Agriculturalists societies from Malawi to India to Brazil demanded that right to use land, water, viable technology, training, markets, and state venture in processing, and further entree to level playing arena on national and global markets can benefit them. Nevertheless it took three decades of inadequate plan for the development establishment to understand this, and yet to fully realize. So as to fight the Cold War in overseas arenas, the U.S. and important foundations spent profoundly in farming technologies, for instance, with improved seed and fertilizer. William Gaud, the USAID administrator, called it a Green Revolution. The Green Revolution was executed with less passion and success in Africa than in Asia. In 2006, the International Fertilizer Development Center viewed that $4 billion value of soil nutrients were being quarried from the African soil by farmers who, struggle to live, weren't filling the nitrogen, potassium, and phosphorous in the land. The reason for deteriorating soil quality lay because of systematic negligence since the 1980s that the World Bank itself acknowledged in an internal evaluation and the remedy is to fix the soil with technology. Consequently in 2006, the Rockefeller Foundation joined the Gates Foundation to launch ‘

Halo 4 Essay Example | Topics and Well Written Essays - 500 words - 1

Halo 4 - Essay Example Halos are a special ring like structures quite similar to Orbitals of the solar system. Halo: combat Evolved also known as Halo: CE or Halo is the first game of the Halo Series that was released in 2001 and considered as the Killer app for Xbox gaming system. About five million copies of Halo: CE was sold within four years after its release that forced Microsoft to launch its computer versions. Second part of the Halo sequel was launched in 2004 on Xbox and later the Microsoft version for computer in 2007. The game was improved with multiplayer maps. Also, players can alternatively choose the role of a human and alien in a war that made the game more interesting. Halo 3 is the third part of the halo sequel that concluded the ‘story arc’ which continued for the previous 2 parts of the series. Halo 3 sold more that US $170 million worth copies in the first day of release that broke all the previous records. A new version of Halo 3: ODST was released in 2009 known as â€Å"Orbital Drop Shock Troopers†. Players are given the choice of two modes of playing that they can choose from. One is ‘Campaign mode’ and the other is ‘Firefight’. It is a multiplayer game with more difficult enemy line to kill and survive for longer. After releasing Halo 3 in 2007, Bungie split up in two teams, one created the ODST version while others created Reach. It came up with a new story line taking place in 2552, where humans are locked with aliens. Covenant attack the human world and players fight them back by controlling the soldier named Noble Six. Halo: CEA is an advanced form of Halo: Combat Evolved. It was released alongside of Halo 4 in 2011 by a large number of companies. It was a more advanced game with extra-ordinary features including new maps, multiplayer, Xbox live service. The game was the first that supported the Kinect in the whole series. Halo 4 is the first part of the new trilogy that was named â€Å"Reclaimer Trilogy† It was

Narrative Autobiography. Life Experiences Essay

Narrative Autobiography. Life Experiences - Essay Example One of my friends, Jim said, â€Å"Why not prove our swimming skills today. It is really hot yet a sunny day for all of us to enjoy?† We all agreed to what Jim proposed. So finally we decided to go to a water park and have some fun together. When we got in there was a good crowd and people were having fun. It was a huge park for people to hang out and have a lot of fun. Since it was a warm sunny day and, also luckily it was a public holiday, therefore, one could easily find families and bunches of friends grouped up together for little fun and adventure. I was specifically attracted by an artificial water fall which ended up in a pool. So I said to my friends that I would be the one going first to jump into that water pool from a good height. I wanted to prove my swimming skills on my friends. So, with a deep breath I turned around, smiled and said, â€Å"Hey, since you guys are too young to jump down from such a good height therefore, I have decided that I will be the one ta king the lead and jumping off in the water, trust me, I am a born swimmer.† My friends were amazed and just so thrilled on the idea of jumping from such a great height and above that, what made them more excited was the idea that I proposed in front of them; me taking the lead! Somehow, deep down inside I was little nervous to jump down. But I convinced all my friends that it will be fun to jump from that height in the swimming pool. When we got up there I felt I would not be able to jump from that height and decided to back up. But the fact that I was the one who convinced them to come here on the first place everybody started making fun of me. One of my friends said, â€Å"You were dying to be the fish, desperately wanting to swim in the shallow water, go ahead.† I smiled back and said, â€Å"You will what a fine fish I can be, this is just a piece of cake for a good swimmer like me.† And that was not it other people standing there most of whom were kids and pe ople I had never even met in my whole life started making fun of me. So finally I had enough and thought that being such a good swimmer that I am what harm can it do if I jump. And if I don’t then of course my friends are going to mock me for the rest of my life. It was then when I decided to jump. So I jumped. When I fell in the pool I started swimming but after a while I realized that I was neither moving up or ahead instead I was drowning so I started screaming for help as loud as I can. Fortunately one of the swimmers heard my screams and pointed it out to the life guard who immediately came to my help and rescued me. And I thought that wasn’t embarrassing enough so I decided to ask yet another stupid question. I asked, â€Å"Is that pool deep† the life guard looked at me angrily and said â€Å"if you don’t know how to swim you shouldn’t be around that pool and it’s for your own safety that we make these rules.† Then all my friend s gathered around me and after making sure that I was not hurt they started laughing at me, â€Å" you are coward†, one of my friend laughed at me. But I realized that moment that sometimes it is better to be coward in order to learn the good things in life and to hold the true moments that you will remember all through your life. I smiled back at my friends and replied more humbly than ever before in my life, â€Å"Yes, I am coward enough to be a fish in my other life!†

Gender Related Issues Essay Example for Free

Gender Related Issues Essay Complete a search for journal articles (professional) that include gender related cognitive issues. Report back to the group through the discussion forum on an understanding of the gender related cognitive abilities. Look for flaws and strengths in specific examples and applications. Thinking is a normal process in everybody’s life. The activities of the neurons giving signals to the brains are helpful in giving the body commands to act on a certain activity or to feel and even to think. Men and women think in every part of their lives, except when they are under comatose by which patients remain unconscious for over a certain time. Studies often say that men and women think very differently. Many various tests in college and even in high schools show that men are far more different in abilities in math than of women; this is also the same reason why men are more selected on job opportunities, especially to those in depth analysis. Women are often regarded as underdogs in the fields where numbers exist. An article from â€Å"Think Again† says that the old belief of the big thinking difference among men and women is a bluff. It suggests a cultural shaping wherein minds of the people are programmed to expect less from women in terms of thinking. Evidences from the article say that the shaping mentioned above is a controlling factor to the performance of many. With the psychological mind – set that men are better than women, women tend to perform and feel insecure about them and in turn would result to grades that are really degrading. The article focuses on the factors that are apparent in the 18th to the 21st centuries by which the â€Å"shaping† is already present. It could have presented or showed us factors from the time before Christ or in the Middle Ages to greatly describe the so-called cultural reasons. It could have given a proof why girls are often regarded for household chores and not with jobs that they can participate with boys. On the other hand, the article may be a helpful guide to parents and teachers to mold the children without inculcating the notion of men being superior in analyzing and solving things. The statements that tell about performances after giving the biases may be true for people around the world and should be avoided to have optimum performance in different work places. 2. Complete a search for journal articles (professional) that include gender related communication issues. . Report back to the group through the discussion forum on an understanding of gender related communication. Look for flaws and strengths in specific examples and applications. Emotions are part of a well-being. It is also a measure if a person is healthy or not. Girls tend to have more emotions than boys, or have it something to do with the misinterpretation of the crowd? As girls or women are termed to be good in emotions, they are also termed as good communicators than men. Girls are very vocal with their ideas and feelings. An article of Cynthia Burggraf Torppa says that the idea of women having an edge with communicating with other people is a misnomer. It said that men and women just don’t understand each other with the lines that they say. Also, there are terms given such as â€Å"rapport talkers† which women are experts on. Women communicate with other people that trigger emotions and feelings while men are termed â€Å"report talkers† that focus on facts and details about a certain topic. Indeed, there are differences about men and women as also stated in Men are from Mars, women are from Venus. The article mentioned can help readers understand more others. That is to say, men and women should practice listening between the lines so that misunderstandings will be avoided. Since women are really emotional, they must be sensitive also with what their men are feeling. The differences matter mostly on marriages, so I recommend that the article could have started and stated on something that happens in childhood and teenage life so that readers will also be guided when and where to hit their punch lines. Men and women must be treated equally as they are all created with the same will and love of the Lord Almighty. References Cynthia Burggraf Torppa. Gender Issues: Communication Differences in Interpersonal Relationships. 2002. Retrieved 11 April 2008 from http://ohioline. osu. edu/flm02/FS04. html. American Psychological Association. Psychology Matters. Think Again: Men and Women Share Cognitive Skills. 2006. Retrieved 11 April 2008 from http://www. psychologymatters. org/thinkagain. html

Volunteers and Decision Making Essay Example for Free

Volunteers and Decision Making Essay The purpose of this study is to explore and converse about the role of volunteers within the for-profit and non-profit organizations and examine their influence on organizational decision making. According to Lawrence and Weber, (2011), a volunteer is a person who donates his/her time or efforts for a cause or organization without being paid. Volunteering is about giving your time to a good cause. You dont get paid, but you do get the chance to use your gifts, abilities, talents, cultivate new skills, and experience the pleasure that comes from making a real difference to other peoples lives, as well as your own. Hansen, (2014), argue that it is a pretty common mistake to think of volunteering as just something nice that people can do. Sure, it may make them feel great about helping, but what impact does it really have? Volunteers have a huge impact on the health and well-being of organizations and communities worldwide. According to Ellis, (2003), from the perspective of the recipient of service, a volunteer is someone who gives time, effort and talent to meet a need or further a mission, without going on the payroll. Volunteers donate their time, expertise, talents, abilities, skills, and get-up-and-go energy to assistance the organization because they have faith and confidence in the organization’s operations, mission, ideas, and vision. According to Bruce and Martin, (1992), a non-profit organization is a group organized for purposes other than generating profit and in which no part of the organizations income is distributed to its members, directors, or officers. They can take the form of a corporation, an individual enterprise (for example, individual charitable contributions), unincorporated association, partnership, foundation (distinguished by its endowment by a founder, it takes the form of a trusteeship), or condominium (joint ownership of common areas by owners of adjacent individual units incorporated under state condominium acts). Non-profit organizations must be titled as not-for-profit when formed and may only employ measures acceptable by laws for non-profit businesses. Non-profit organizations include churches, public schools, public charities,  public clinics and hospitals, political organizations, legal aid societies, volunteer services organizations, labor unions, professional associations, resear ch institutes, museums, and some governmental agencies. Any funds earned by a non-profit organization must be reserved by the organization, and used for its own disbursements, disbursements, processes, and programs. Many non-profit organizations also pursue tax exempt status, and may also be exempted from local sales taxes or property taxes. These for-profit and not-for-profit organizations are distinguished from each other in the areas of interest, events, and actions, and whosesoever field of interest is well-defined by their organizational mission and vision statements. The for-profit and non-profit organizations have much in common, but there are significant differences between the two. According to Ingram, (2009), the most fundamental difference between non-profit and for-profit organizations is the reason they exist. For-profit companies are usually established to produce income for directors and their workers, while non-profits are usually established to help a charitable, philanthropic, humanitarian, or conservational and environmental need. In contrast, non-profit organizations distribute all of their profits into programs and services designed at meeting individuals unmet needs, such as food, water, shelter and education, or towards other issues such as endangered species. For-profit companies offer products an d services that are appreciated in the open market, electing to allocate returns among proprietors, workforces, stockholders, owners, investors, and the organization or business itself. Additionally, according Ingram, (2009), sales revenue, in the form of cash and receivables, is the life-blood of for-profit organizations. These companies depend on earned income and credit arrangements with lenders and suppliers to finance their operations. Ingram, (2009), goes on by suggesting non-profits, on the other hand, rely almost entirely on donations and grants from individuals, government entities and organizations. Non-profit and for-profit organizations income basis are regulated, to a large extent, on how the company can use its currency. Since non-profit income comes from donors, non-profits are expected to utilize their funding in a way that maximizes benefits to their targeted recipients. Since for-profits produce  their own revenue and pay their own bills, they have much more ethical latitude as to how they spend. Another different Ingram, (2009), suggests is for-profit organizations are taxed in a number of ways, depending on their form of organization. Small bus inesses, for example, are usually sole proprietorships and partnerships. Ingram, (2009), goes on to state â€Å"the IRS treats the income from proprietorships and partnerships as personal income, and the owners are held personally liable for all business debts†. Nonprofit organizations can register for income-tax exemption under section 501(c) 3 of the tax code, Ingram, (2009). Contributors to non-profit organizations are offered tax incentives for their donations as well. According to the Service Corps of Retired Executives (SCORE), (n.d.), non-profit organizations are treated as legal entities for tax purposes, leaving company forefathers not liable for organizational debts. Lastly, Ingram, (2009), provides a human resource differences between the two. The workforces look quite different between for-profit and nonprofit organizations. For-profit companies are staffed with salaried and hourly employees, while non-profits, on the other hand, usually hire a small workforce, but employ a large corps of volunteers. The processes for employing and dism issal, as well as worker inspiration, motivation, communication and direction techniques vary considerably between salaried employees and volunteers. The role of volunteers in non-profit organizations Volunteers are of huge value to nonprofit organizations. Non-profit organizations frequently depend on the service and commitment of volunteers. The skills and talents of volunteers workers bring nonprofit missions to life. Volunteers perform valuable services for the non-profit organizations. According to HR Specialist, (2002), recent studies estimate that about a hundred million people volunteer each year with an annual value in the range of $150 billion, Not only do volunteers help to save money, but they can provide better service to clients, increase contact with the greater community, make available better expertise, and reduce costs of services. From the early days of America, according to Dreger, (1996). volunteers have pitched in to treat community maladies and needs. Hospitals, orphanages, schools and local fire companies (to name a very few) were the result of a civic rallying around a cause. That civic concern and community  merger continues today in religious charities , Habitat for Humanities, hospitals, libraries, schools and colleges, Hospices, and YMCAs (to name just a very few). While we are sometimes suspicious of volunteers, the truth is that nonprofit organizations would not exist if it were not for the volunteers. Specifically, governance, programming and fund development are three areas of activity in which volunteers assist non-profit organizations, Dreger, (1996). When speaking of governance, volunteers who serve on boards of directors and their committees are the lifeblood of nonprofit organizations, Dreger, (1996). While the Executive Director takes care of day to day matters, volunteer directors take responsibility for policy making, for assuring that the organization has adequate funding, and for meeting any legal challenges that might arise. We often talk about the attributes of a good board member such as a combination of several of the following: wealth, wisdom, work, and the influence factor. With an appropriate mix of these attributes, boards will be in a position of strength to act on their strategic plans. If an organization is preparing fo r a capital campaign, then adding more wealth or wow to the board makes sense. If instituting new programming is in the future, then leaning the board toward wisdom and work would be productive. A board that polishes its composition will be motivated and strengthened. In the area of programming, Dreger, (1996), recommend that trained volunteers can be invaluable in helping to deliver services to clients. They reduce costs through their work and can often provide better services to clients since they serve because of their passion for the organization’s mission. Many volunteers also bring expertise or experience to the organization that is free, such as legal or accounting services, for instance. Other volunteers provide contact with parts of the community that an organization generally doesn’t interact with volunteers will talk about your organization with their friends and colleagues—the good and the bad), and chief among them would be the volunteer who coordinates volunteers! For each volunteer there is the reward of helping others, of serving the cause. When properly directed, volunteers are a treasured asset, real gems in delivering services to those in need, Dreger, (1996). Finally, in the Fund Development area, while fundraising is a chief responsibility of the board, Dreger, (1996), argue there are other ways that volunteers can help to advance the organiz ation. As part of a  development committee, volunteers can serve as prospectors, mining their networks for nuggets you want to pan out. They also can be the go-getters who will put on special events such as auctions, galas, or raffles. Others can seek to get better media coverage. For the best results, it’s important to think through a recruitment strategy to get the right volunteers serving with you, similar to massaging the board’s composition. With a clear idea of what needs to be accomplished and with direction from staff, volunteers can expand your horizons, help you to meet people of influence and affluence that you wouldn’t otherwise, bring skills and expertise that will increase revenues, and become new and dear friends. This is particularly helpful when making plans for a capital campaign. As a leader in an organization, you make the difference between mere success and great success. John Maxwell, author of many books on leadership, says â€Å"Leadership†¦has to do with casting vision and motivating people.† Those people in many cases are the volunteers who have sought you out and you have sought out. The degree to which they add value to your work and mission is dependent on how they are assigned tasks, trained, supervised, evaluated, and loved. Celebrate with your volunteers in all areas of activity! You’ll have lots of fun doing it.. The service volunteers provide to non-profit organizations is of immense value; they take any job, big or small and commit to its completion. They represent the organization before the community and take on the governance responsibility over the organization; they care for the organization as if it was a business of their own. The role of volunteers in for-profit organizations Volunteering at for-profit organizations is generally frowned upon under the Fair Labor Standards Act (FLSA). Under the FLSA, employees may not volunteer services to for-profit private sector employers. On the other hand, in the vast majority of circumstances, individuals can volunteer services to public sector employers. When Congress amended the FLSA in 1985, it made clear that people are allowed to volunteer their services to public agencies and their community with but one exception; public sector employers may not allow their employees to volunteer, without compensation, additional time to do the same work for which they are employed. There is no prohibition on anyone employed in the private sector from volunteering in any capacity or line of  work in the public sector. Tuschman, R., (2012). A shaky economy and poor job market can tempt employers to use free labor; volunteers who are willing (at least initially) to give up compensation to obtain on-the-job skill or to help a d esired social cause or a struggling company. While this exercise may seem like a win-win situation, it is overloaded with legal danger for employers. Under the federal Fair Labor Standards Act (FLSA) and many state and local wage and hour laws, the use of volunteers is strictly regulated. A court or the U.S. Department of Labor will consider misclassified individuals as employees who must be paid at least the minimum wage, and overtime pay if applicable. Penalties and attorneys’ fees may also be assessed. Under the FLSA, a volunteer will not be considered an employee if the individual volunteers for public service, religious or humanitarian objectives, and without contemplation or receipt of compensation. Typically, volunteers will serve on a part-time basis and will not displace employees or perform work that would otherwise be performed by employees. In addition, to avoid the possibility of coercion, the Department of Labor (DOL) takes the position that paid employees may not volunteer to perform the same type of services for their employer that they are normally employed to perform. These principles are strictly construed against employers. For example, the DOL has opined that there is no employment relationship between a for-profit hospice and individuals who volunteer their services to perform activities of a charitable nature, such as running errands, sitting with patients so that a family may have a break, and going to funerals. However, individuals may not donate their service s to hospices to do activities such as general office or administrative work that are not charitable in nature. Moreover, with respect to those individuals already employed by a hospice, the DOL has stated that they may not volunteer their services to the hospice. In the public sector, an individual who volunteers to perform services for a public agency is not an employee if the individual receives no compensation or is paid expenses, reasonable benefits or a nominal fee. In addition, the FLSA provides that the volunteer services cannot be the same type of services that the individual is employed to perform for the agency. Individuals can qualify as volunteers if they either volunteer to perform services for a different agency or perform different services than they are employed to perform for the same public agency, Tuschman, (2012). According to the Fair Labor Standard Act (FLSA), the difference between an employee and a volunteer in the for-profit sector is a very thin line which can lead an employer to misclassifying employees as volunteers, Bertagna, (2012). According to the same source, employers can use volunteers as long as they adhere to the minimum wage and overtime requirements of the Fair Labor Standard Act. â€Å"If employers misclassify employees as volunteers, the employer’s perceived opportunity to save on money may become a liability† (Bertagna, 2012). Volunteers’ roles in for -profit organizations face several limitations since the volunteer-employer relationship is subject to meeting certain conditions in order to not be considered an employee. In light to fully understand the legal interpretation of the volunteer in a for-profit organization it’s convenient to visit the U. S. Supreme Court (1947) observation about evaluating the relationship in today’s volunteer context: †The determination of the relationship does not depend on isolated factors but rather upon the circumstances of the whole activity.† Volunteers actively participate in activities where they usually have a personal interest in the for-profit sector, like the case of parents volunteering at their children private schools, or personalities giving presentations or lectures at private Universities, not to mention volunteers at private hospitals and their work to alleviate the suffering of the patients. Another category were volunteers participate in for-profit organizations is the case of retires senior managers or directors whom continue to collaborate for their former employers in an emeritus role, sharing their knowledge and experience with the new generations. The influence volunteers exert on organizational decision-making In the early 1980’s, changes in the American society started to call the attention of the scholars. Pearce (1982) described what he anticipated would result in volunteers looking for leadership roles and advance from their affiliations with organizations. In order to responsibly participate in the decision-making process, volunteers need to understand the role and social responsibility the organization has before the public, its customers and the community (Edwards, 2008). Volunteers in leadership positions within both non-profit and for-profit organizations exert a great influence in the decision-making process since their specific role positions them in an authority level where their experience and cognizance serves as a foundation for their capacity. Being as board members, advisory council members, or partner emeritus if firms and corporations, volunteers will always serve with the only goal in mind to do the most good for the organization and/or community they serve. Their willingness to share their expertise and knowledge with the organization, will serve as a way to give back some of what they have received through their lives. Sir Winston Churchill is credited with the quote: â€Å"We make a living by what we get; we make a life by what we give.† He was able to put volunteerism is its correct perspective. Conclusion â€Å"Our Nation has been profoundly shaped by ordinary Americans who have volunteered their time and energy to overcome extraordinary challenges. From the American Revolution and the Seneca Falls Convention to the everyday acts of compassion and purpose that move millions to make change in their communities, our Nation has always been at its best when individuals have come together to realize a common vision. As we continue to pursue progress, service and social innovation will play an essential role in achieving our highest ambitions from a world-class education for every child to an economy built to last. During National Volunteer Week, we pay tribute to all who give of themselves to keep America strong, and we renew the spirit of service that has enriched our country for generations.† (Obama, 2012) Alexis de Tocqueville was profoundly move d by America’s spirit of volunteerism when he toured the United States in 1831, he recognized the way Americans were prompt to assist one another and to sacrifice part of their time to for the welfare of the state (Bertagna, 2012). This is the true spirit of volunteerism, when people devote their time and energy to assist in pursuing and obtaining a greater good. The role volunteers play in modern organizations is of paramount importance, they donate their time, their talent, and their knowledge to support and assist with causes they believe in and where they have placed their hopes and their hearts. Those individuals who perform hours of service without compensation do it for  civic, charitable, or humanitarian reasons deserve to be recognized and respected, deserve to be honored for what they do. References Bertagna, B.R., (2012). For-profit volunteers: The fair labor standards a CT’s limits on volunteering in the private sector. Daily Labor Report. The Bureau of National Affairs. 179 DLR I-.Retrieved from http://www.paulhastings.com/Resources/Upload/Publications/2262.pdf. Edwards, H.C., (2008). Volunteers in leadership roles: Successfully engaging advisory councils. International Journal of Volunteer Administration. 25(2). Retrieved from:http://www.ijova.org/PDF/IJOVA%20Sample%201%20Manuscript%20May%2014.pdf. Ellis, S., (2003). Do volunteers deserve the board’s attention? Nonprofit World. 21 (1) 19-21.January/February 2003.ICNL (2013) FAQ. International Center for Not-For-Profit Law. Washington, DC. Retrieved from http://www.icnl.org/contact/faq/index.html. Lawrence, A. and Weber, J., (2011) Business and society: Stakeholders, ethics, public policy (13th Ed). New York, NY: McGraw-Hill/Irwin. Lewis, L.K., Hamel, S. A., and Richardson, B.K., (2001). Communicating change to nonprofit stakeholders: Models and predictors of implementers’ approaches. Management Communication Quarterly. 15 (1). Pp.15-41 Kipp, M.F,. (2009). Rethinking the nonprofit board. Nonprofit World. 27(6), pp. 20-21. Pearce, J.L., (1982). Leading and following volunteers: Implications for a changing society. Journal of Applied Behavioral Science. 18 (3), pp. 385-394. Reiss, A.H. (1990) Bottom line: A working board of directors. Management Review. 79(5), pp. 37-38. Retrieved from http://ehis.ebscohost.com.library.gcu.edu:2048/eds/pdfviewer/pdfviewer?sid=1e928abd-3175-4cd5-9afe-c348a044c8a3%40sessionmgr15vid=8hid=5. Hansen, C., (2014). Why is volunteering important? Volunteer Resource Center. (VRC). Retrieved from http://www.idealist.org/info/Volunteer/Why. Bruce, T. R. and Martin, P. W., (1992). Legal Information Institute. Retrieved from http://www.law.cornell.edu/wex/non-profit_organizations. Dreger, D.C., (1996). Importance of Volunteers for Non Profit Organizations Retrieved from http://www.cdsfunds.com/volunteers_what_can_they_do_for_you.html. Ingram, D., (2009). Non-Profit Organization vs. Profit Organization. Demand Media. Retrieved from http://smallbusiness.chron.com/non-profit-organization-vs-profit-organization-4150.html. Service Corps of Retired Executives (SCORE). (n.d). Non-profit vs. For-Profit. Retrieved from http://scoreknox.org/library/versus.htm. The HR Specialist, (2002). Employment Law. Volunteers’ at for-profit companies: Should they be paid? Compensation and Benefits, Human Resources http://www.businessmanagementdaily.com/775/volunteers-at-for-profit-companies-should-they-be-paid. Tuschman, R., (2012). Using Volunteers and Interns: Is It Legal? Retrieved from http://www.forbes.com/sites/richardtuschman/2012/08/24/using-volunteers-and-interns-is-it-legal/.

Impact Of Foreign Direct Investment

Impact Of Foreign Direct Investment The word investment can be defined in many ways according to different theories and principles. It is a term that can be used in a number of contexts. However, the different meanings of investment are more alike than dissimilar. Generally, investment is the application of money for earning more money. Investment also means savings or savings made through delayed consumption. According to economics, investment is the utilization of resources in order to increase income or production output in the future. An amount deposited into a bank or machinery that is purchased in anticipation of earning income in the long run is both examples investments. According to economists, investment refers to any physical or tangible asset, for example, a building or machinery and equipment. On the other hand, finance professionals define an investment as money utilized for buying financial assets, for example stocks, bonds, gold, real properties, and precious items. In general term, Investment means the purchase of goods which are invest and not used today, which will give benefit in future. The money you earn is partly spent and rest saved for future expenses. Instead of keeping savings ideal this money is invested to earn additional income this is called investment. When an asset is bought or a given amount of money is invested in the bank, there is anticipation that some return will be received from the investment in the future. (Meaning Of Investment, 2009 ). Investment by domestic residents (individuals, companies, financial institutions and governments) in the acquisition of overseas financial securities and physical assets. Overseas investment in financial assets, in particular by institutional investors, is undertaken primarily to diversify risk and to obtain higher returns than would be achievable on comparable domestic investment. Physical foreign direct investment(FDI) in new manufacturing plants and sales subsidiaries, or the acquisition of established businesses, prov ide the multinational company with a more flexible approach to supplying foreign markets. Interest, profits and dividends gained on these foreign investments count as invisible earnings in the balance of payments, though some of this income may be reinvested overseas rather than repatriated. (Christopher Pass, 1995). The income tax treatment of foreign investment income is frequently governed by Tax Treaties between the country of the investment owner and the state where the investment is situated. (Friedman, 2007 ).Foreign Direct Investment (FDI) An investment abroad, usually where the company is being invested in is controlled by the foreign corporation. A company from one country making a physical investment into building a factory in another country. The direct investment in buildings, machinery and equipment is in contrast with making a portfolio investment, which is considered an indirect investment. (Spaulding, 2004).Foreign direct investment (FDI) is a major driver of globalization. As investment patterns of multinational enterprises become more and more complex, reliable and internationally comparable, FDI statistics are necessary for sound policy decision making. The OECD Benchmark Definition of Foreign Direct Investment sets the world standard for FDI statistics. It provides a single point of reference for statisticians and users on all aspect of FDI statistics, while remaining compatible with other internationally accepted statistical standards. (OECD, 2008) . In the past decade, FDI has come to play a major role in the internationalization of business. Reacting to changes in technology, growing liberalization of the national regulatory framework governing investment in enterprises, and changes in capital markets profound changes have occurred in the size, scope and methods of FDI. New information technology systems, decline in global communication costs have made management of foreign investments far easier than in the past. (Spaulding, Foreign Direct Investment, 2005).In recent years, given rapid growth and change in global investment patterns, the definition has been broadened to include the acquisition of a lasting management interest in a company or enterprise outside the investing firms home country. As such, it may take many forms, such as a direct acquisition of a foreign firm, construction of a facility, or investment in a joint venture or strategic alliance with a local firm with attendant input of technology, licensing of intellectual property. (Graham, 2005). According to the benchmark definition of the OECD and World Investment Report 2009, a direct investment enterprise is an incorporated or unincorporated enterprise in which a single foreign investor either owns 10 percent or more of the ordinary shares or voting power of an enterprise (unless it can be proved that the 10 percent ownership does not allow the investor an effective voice in the management) or owns less than 10 percent the ordinary shares or voting power of an enterprise, yet still maintains an effective voice in management. An effectiv e voice in management only implies that direct investors are able to influence the management of an enterprise and does not imply that they have absolute control. The most important characteristics of FDI, which distinguishes it from portfolio investment, is that it is undertaken with the intention of exercising control over an enterprise. (GlobStat, 2009).Probably the most important role of FDI in a developing economy is the supply of capital, as capital deficiency is the fundamental problem in case of a developing economy. Capital formation depends on investment, which, however, implies sacrifice of consumption. (Zaidi, 2009). Developing countries  [1]  , emerging economies and countries in transition have come increasingly to see FDI as a source of economic development and modernization, income growth and employment. Countries have liberalized their FDI regimes and pursued other policies to attract investment. They have addressed the issue of how best to pursue domestic polic ies to maximize the benefits of foreign presence in the domestic economy. The study Foreign Direct Investment for Development attempts primarily to shed light on the second issue, by focusing on the overall effect of FDI on macroeconomic growth and other welfare-enhancing processes, and on the channels through which these benefits take effect. (Andru Pascal, 2002). The most profound effect has been seen in developing countries, where yearly foreign direct investment flows have increased from an average of less than $10 billion in the 1970s to a yearly average of less than $20 billion in the 1980s, to explode in the 1990s from $26.7billion in 1990 to $179 billion in 1998 and $208 billion in 1999 and now comprise a large portion of global FDI.. Driven by mergers and acquisitions and internationalization of production in a range of industries, FDI into developed countries last year rose to $636 billion, from $481 billion in 1998 but in south Asian developing countries in which India $1 23 billion of FDI inward and Pakistan $31 billion of FDI inward in 2008. (UNCTAD, 2009) History: Early Investment There have been international organizations engaged in trading activities as far back in time as 2500BC, with banks and churches also having formed international organizations throughout history (Allen, 1984). The appearance of the modern MNE, incorporating control over foreign production units, did not occur until the Nineteenth Century (Wilkins, 1977), but early resemblances to the modern MNE appeared in the 1600s and 1700s, when large trading companies from the UK and the Netherlands entered parts of Asia, the Indies and America  [2]  . The two largest enterprises were the British East India Company and the Dutch East India Company (Nicholas, 1988). These dominated the well-paid markets of spices, cottons and silks, and are credited as being the true pioneers of international commercial activities. Investment also later took place in the UK and French colonial territories of Latin America, Asia, Africa and Australia, with most investments being supply oriented, in the form of resource exploitation (Medard Gabel, 2003)  [3]  . International companies also emerged with the aim of colonizing foreign lands. One of the first was the London-based, British Virginia Company, Whose strategy was to profit from the development and colonization of Virginia in the US. Similar projects across North America were undertaken by the Dutch, the French and the Swedes. (Wren, 2006). It is generally accepted that the true birth of the modern multinational arose in Europe in the Nineteenth Century (Wilkins, History of FDI , 2004)  [4]  . Examples are the Cocker ill steelworks of England that set up in Prussia; Bayers of Germany that set up chemical plants in the US; and Nobels of Sweden that set up dynamite production in Germany (Tugendhat, 1981). However, it was not until the latter part of the Nineteenth Century that larger-scale foreign direct investment started to emerge. A major motivation for the spread of these firms was the increase in the protectionist behavior of countries, which in turn was a by-product of increased nationalism. As customers mostly-preferred goods produced locally, as opposed to imported goods, firms had to set-up abroad (John Micklethwait, 2003 ). Other important reasons for the upsurge in FDI and the growth of MNEs was the search for larger markets, as enterprises began to grow in size, and improvements occurred in transportation and communication, most notably the railways and telegraphs (Wilkins, FDI , 1998). These advances not only made it easier for parent companies to control their subsidiaries but to control them over longer distances. Up until the end of the Nineteenth Century, European firms dominated the MNE scene, but US multinationals were beginning to increase, both in number and size. Examples of US multinationals at this time include singers, which set up sewing-machine plants in Scotland, and the electrical-manufacturers Thomson-Houston, which set up in England (Attack, 1994). The increase in FDI at the turn of the Twentieth Century was halted in the inter-war period both by the destruction caused by the First World War and the threat of another war leading to discrimination against foreigners by the occupants of many countries. The First World War also resulted in European multinationals being forced to sell their pre-war investments, with political upheaval and border changes also impacting on cross-border activities (Dunning, 1983). Other factors leading to a worldwide fall in investment included the Great Depression of late 1920s and early 1930s and the substantial rise in inflation in Europe (Jones, 1995 ). By the time of the Second World War, the main stock of FDI was still held by the UK 40 per cent, while the US held 28 per cent (Jones Eric Lionel, 2000). However, after the Second World War a new wave of FDI began to emerge, arising mainly from the US. The factors behind this improvement in technology and Communication systems, greater economic and political stability, the formation of trading blocks and a more liberalized attitude from host governments (Hood, 1999). In the years after the Second World War global FDI was dominated by the United States, as much of the world recovered from the destruction brought by the conflict. The US accounted for around three-quarters of new FDI (including reinvested profits) between 1945 and 1960. Since that time FDI has sprea d to become a truly global phenomenon, no longer the exclusive preserve of Organization for Economic Corporation and Development (OECD) countries. FDI has grown in importance in the global economy with FDI stocks now constituting over 20 percent of global GDP. Pakistan History Soon after independence in 1947, Pakistan moved from a parliamentary system to a presidential one and then finally reverted to the original parliamentary system. Pakistan has a checkered history of trade liberalization and FDI promotion. Following some trade liberalization attempts in the 1960s, Pakistan qualified for Article VIII status at the IMF in 1970. Even by the mid-1980s there was still a long way to go in lifting quantitative restrictions QRs and reducing tariffs. From the mid-1980s, controls on foreign investment in manufacturing have diminished sharply, those for the service sector less so (Athukoralge, 2007) In spite of various bureaucratic controls, the government attitude throughout the 1950s and 1960s was favorable to private investment, the FDI regime was more liberal, although there was greater emphasis on joint ventures with minority foreign ownership and technology licensing than on FDI in fully foreign owned ventures. However, supremacy of the state and socialist ideology under a socialist government dominated policy in the 1970s. As a result, a large-scale program of nationalization of key industrial units and wide-spread control of domestic and foreign trade were instituted. The dismal economic outcome of the interventionist policies eventually paved the way for market-oriented reform. Reforms started slowly in the early 1980s as part of a widespread reform package in conformity with the World Bank conditionality. Removal of restrictions on foreign investment was a major element of the reform program. Full foreign ownership of firms, with full freedom for remittance of profit a nd investment proceeds, is now allowed in almost all sectors of the economy (Athukoralge, FDI History of Pakistan, 2007). Independence in 1971, the Bangladesh government adopted a state-led import-substitution development strategy, which was far more interventionist than that of the united Pakistan. The new government nationalized a larger number of industrial enterprises owned by Pakistani entrepreneurs as well as all industrial enterprises with fixed assets exceeding a certain threshold level. The scope of the private sector was limited to small and cottage industry, and foreign investment was allowed only in collaboration with the public sector with minority equity participation. However, existing foreign investments (excluding those belonging to Pakistan) were spared from the sweeping nationalization drive. The socialist-oriented industrial policy of 1973 assigned a very minor role for the private sector, with some investment ceiling on new investment (Athukoralge, History of Pakistan , 2007). Foreign Direct Investment (FDI) has been a small but growing part of total investment in Pakistan. Data indicates that FDI in Pakistan has grown from $8 million US dollars in 1976 to $346 million dollars in 1993. During the same period, total gross fixed capital formation grew from $2.4 to $9.2 Billion dollars (international Monetary Fund). Nevertheless, excluding the non-capital part, FDI is even a smaller part of total capital formation in Pakistan than these figures reflect (Kaynak, 1999). General Musharraf vowed to make all out efforts to improve the deteriorating economic conditions in order to eradicate poverty and hunger in the country. The bank defined essential problem areas where urgent action is needed as: (1) Build investor confidence; (2) Structural change in fiscal policy; (3) Reduction in budget deficit to more sustainable level; (4) Address the national debt servicing issue; (5) Improve exports; (6) Population control; and (7) Improve human capital. Meanwhile, there is a very low flow of Foreign Direct Investment (FDI) into the country. The FDI peaked in 1996 to $992 Million and declined to $370 Million in 1999. Another report says that FDI amounted to around $600 Million in 1999; the figure is based on the difference between the amount of FDI stocks in 1998($9.2Billion) and 1999 ($9.8 Billion). However, this constituted 0.21 percent of FDI global flows ($4.7 Trillion). FDI stocks in Pakistan in 1999 represented 4.4 percent of its GDP (Mahmood, FDI History of Pakistan , 2001). Increased Foreign Direct Investment (FDI) increased to $3.5 Billion in the last financial year, according to GOP sources. The United Nations World Investment Report 2006 stated that Pakistan saw a 95% growth in FDI inflows in 2005 to reach $2.183 Billion (Mahmood, 2007). Impact of Foreign Direct Investment Attracting foreign direct investment (FDI) has become a key part of national development strategies for many countries. They see such investments as bolstering domestic capital, productivity, and employment, all of which are crucial to jump-starting economic growth. While many highlight FDIs positive effects, others blame FDI for crowding out domestic investment and lowering certain regulatory standards. The effects of FDI can sometimes barely be perceived, while other times they can be absolutely transformative. While FDIs impact depends on many conditions, well-developed and implemented policies can help maximize its gains. The resources in this list focus on the impact of FDI on: Economic growth: Foreign capital stocks combined with the widespread belief that FDI is beneficial for growth triggered a large body of literature on the determinants of FDI in the Central and Eastern European transition countries. The primary goal was to locate all relevant economic and political factors which could be beneficial for FDI inflows and, by extension, for economic growth(Neuhaus, 2005). Trade: The direct impact falls into two parts, namely an immediate effect emanating from the actual investment and the effects on the import pattern of the targeted enterprises. The former channel is generally limited to the imports of initial inputs of imported machinery and equipment (especially in Greenfield investment), or, where FDI is large compared with the size of the host economy, it may include the knock-on effect on aggregate imports from rising total domestic demand. The second channel, which essentially depends on the investors choice between imported and local inputs, has been studied extensively(OECD, Direct Impact of FDI on Imports, 2002). Employment and skill levels: In response to the AFL-CIOs (American Federation of Labor and Congress of Industrial Organizations) earlier claim that job losses result from the impact of runaway firms setting up labor- intensive operations in offshore locations, the US tariff commission analyzed then- new data on the foreign operations of US firms. It found that employment gains generated from associated exports of equipment and parts, etc. and expansion of supporting non-production jobs would be large enough to offset possible job losses arising from production displacement effects(Neil Hood, 1979). In response to the latest concerns of the US labor unions, 23 studies have investigated the impact of FDI on employment. All except one have concluded that it has a positive effect resulting in the net increase of jobs(Lee, 2002). Technology diffusion and knowledge transfer: Are of great importance for economic development, as the adoption of new techniques, machines, and production processes is a key determinant of productivity growth. Given that most research and development (RD) and innovation is undertaken in high income countries, most developing economies must rely largely on imported technologies as sources of new productive knowledge. This is not to say that no RD is undertaken in developing countries; a considerable amount of follow-on innovation and adaptation does occur there, contributing to the global stock of knowledge(Smarzynska Javorcik, 2006). Linkages and spillover to domestic firms: FDI spillovers: An increase in the productivity of domestic firms as a consequence of the presence of foreign firms in the domestic economy. FDI spillovers via horizontal linkages: An increase in the productivity of domestic firms resulting from the presence of foreign firms in the same industry. FDI spillovers via forward linkages: An increase in productivity resulting from the foreign presence among the supplies of the industry in which the domestic firm operates. FDI spillovers via backward linkages: An increase in productivity resulting from the foreign presence among the customers of the industry in which the domestic firm operates. These spillovers may take place among domestic firms but are more likely to occur with foreign affiliated firms given their linkages with large foreign parent companies. In the case of horizontal spillovers, there are not such incentives and firms would rather protect their intellectual assets rather than risk technology leakage to competitors (OECD, FDI spillover, 2008). Types of Foreign Direct Investment By Direction Inward FDI: Inward foreign direct investment is when foreign capital is invested in local resources. Inward FDI is encouraged by: Tax breaks, subsidies, low interest loans, grants, lifting of certain restrictions The thought is that the long term gain is worth short term loss of income Inward FDI is restricted by: Ownership restraints or limits Different performance requirements Outward FDI: Outward foreign direct investment, sometimes called direct investment abroad is when local capital is invested in foreign resources. Outward FDI is encouraged by Government-backed insurance to cover risk Outward FDI is restricted by Tax incentives or disincentives on firms that invest outside of the home country or on repatriated profits Subsidies for local businesses Leftist government policies that support the nationalization of industries (or at least a modicum of government control) Self-interested lobby groups and societal sectors who are supported by inward FDI or state investment, for example labor markets and agriculture. Security industries are often kept safe from outwards FDI to ensure the localized state control of the military industrial complex. By Target Greenfield Investment: Direct investment in new facilities or the expansion of existing facilities. Greenfield investments are the primary target of a host nations promotional efforts because they create new production capacity and jobs, transfer technology and know-how, and can lead to linkages to the global marketplace. The Organization for International Investment cites the benefits of Greenfield investment (or in sourcing) for regional and national economies to include increased employment (often at higher wages than domestic firms); investments in research and development; and additional capital investments. Criticism of the efficiencies obtained from Greenfield investments includes the loss of market share for competing domestic firms. Another criticism of Greenfield investment is that profits are perceived to bypass local economies, and instead flow back entirely to the multinationals home economy. Critics contrast this to local industries whose profits are seen to flow back e ntirely into the domestic economy (Easson, 2004). Mergers and Acquisitions: Transfers of existing assets from local firms to foreign firms takes place; the primary type of FDI. Cross-border mergers occur when the assets and operation of firms from different countries are combined to establish a new legal entity. Cross-border acquisitions occur when the control of assets and operations is transferred from a local to a foreign company, with the local company becoming an affiliate of the foreign company. Unlike Greenfield investment, acquisitions provide no long term benefits to the local economy even in most deals the owners of the local firm are paid in stock from the acquiring firm, meaning that the money from the sale could never reach the local economy. Nevertheless, mergers and acquisitions are a significant form acquiring firm, meaning that the money from the sale could never reach the local economy. Nevertheless, mergers and acquisitions are a significant form of FDI and until around 1997, accounted for nearly 90% of the FDI fl ow into the United States. Mergers are the most common way for multinationals to do FDI (Jonathan Jones, 2006). Horizontal FDI: It refers to FDI in the same industry in which the organization in the home nation. Vertical FDI: It refers to the FDI by an organization in order to sell the outputs of domestic firms to the investment which provides inputs to the domestic organization (Misra, 2009). Backward Vertical FDI: Where an industry abroad provides inputs for a firms domestic production process. Forward Vertical FDI: Where an industry abroad sells the outputs of a firms domestic production. By Motive: FDI can also be categorized based on the motive behind the investment from the perspective of the following firm: Resource-Seeking FDI Investments which seek to acquire factors of production those are more efficient than those obtainable in the home economy of the firm. In some cases, these resources may not be available in the home economy at all (e.g. cheap labor and natural resources). This typifies FDI into developing countries, for example seeking natural resources in the Middle East and Africa, or cheap labor in Southeast Asia and Eastern Europe (Cohen, 2007). 1.3.3.2 Market-Seeking FDI Investments which aim at either penetrating new markets or maintaining existing ones. FDI of this kind may also be employed as defensive strategy; it is argued that businesses are more likely to be pushed towards this type of investment out of fear of losing a market rather than discovering a new one .This type of FDI can be characterized by the foreign Mergers and Acquisitions in the 1980s by Accounting, Advertising and Law firms (Cohen, Market-Seeking FDI , 2007). 1.3.3.3 Efficient-Seeking FDI Investments which firms hope will increase their efficiency by exploiting the benefits of economies of scale and scope and also those of common ownership. It is suggested that this type of FDI comes after either resource or market seeking investments have been realized, with the expectation that it further increases the profitability of the firm. Typically, this type of FDI is mostly widely practiced between developed economies; especially those within closely integrated markets (Cohen, Efficiency-Seeking FDI, 2007). 1.3.3.4 Strategic-Asset-Seeking FDI A tactical investment to prevent the loss of resource to a competitor. Easily compared to that of the oil producers, whom may not need the oil at present, but look to prevent their competitors from having it (OECD, Strategic-Asset-Seeking FDI , 2002). 1.3.3.5 Political Oppositions to FDI In the late 1960s and early 1970s foreign direct investment became increasingly politicized. Organized labor, convinced that foreign investment exported jobs, undertook a major campaign to reform the tax provisions which affected foreign direct investment. The Foreign Trade and Investment Act of 1973 (or the Burke-Hartke Bill) would have eliminated both the tax credit and tax deferral. The Nixon Administration, influential members of Congress of both parties, and well-financed lobbying organizations came to the defense of the multinational. The massive counterattack of the multinational corporations and their allies defeated this first major challenge to their interests (Finance, 2006). 1.3.3.6 Private Foreign Investment Few areas in the economics of development arouse so much controversy and are subject to such varying interpretations as the issue of the benefits and costs of private foreign investment. If, however, we look closely at this controversy, we will find that the disagreement is not so much about the influence of MNCs on traditional economics aggregate such as GDP, investment, savings, and manufacturing growth rates (though these disagreements do indeed exist) as about the fundamental economic and social meaning of development as it relates to the diverse activities of MNCs. In other words, the controversy over the role and impact of foreign private investment often has as its basis a fundamental disagreement about the nature, style, and character of a desirable development process (Todaro, 1989). Components of FDI The components of FDI are equity capital, reinvested earnings and intra-company loans: Equity Capital Equity in unincorporated entities, non-cash acquisition against technology transfer, plant and machinery, goodwill, business development and similar considerations control premium and non-competition fee (Components of FDI, 2004).The foreign direct investors net purchase of the share and loans of an enterprise in a country other than its own. Reinvested Earnings The part of an affiliates earnings accruing to the foreign investors that is reinvested in that enterprise. Intra-company Loans (Other Capital) Short or long-term loans, trade credit, suppliers credit, financial-leasing, financial derivatives, debt securities from parent firms to affiliate enterprises or vice versa. In the case of banks, deposits, bills and short-term loans are not included. 1.5 Benefits of FDI: The economic benefits of FDI are real, but they do not accrue automatically. To develop the maximum benefits from foreign corporate presence a healthy enabling environment for business is paramount, which encourages domestic as well as foreign investment, provides incentives for innovation and improvements of skills and contributes to a competitive corporate climate. The net benefits from FDI do not accrue automatically, and their magnitude differs according to host country and context. The magnitude of the benefits from FDI depends on the efforts of host countries to put in place the appropriate frameworks but even less-well performing countries may benefit, inter alia by using FDI as a supplement to scarce financial resources. The factors that hold back the full benefits of FDI in some developing countries include the level of general education and health, the technological level of host country enterprises, insufficient openness to trade, weak competition and inadequate regulatory frameworks. Conversely, a level of technological, educational and infrastructure achievement in a developing country does, other things being equal, equip it better to benefit from a foreign presence in its markets (OECD, Benefits of FDI, 2002) The Perceived Benefits of FDI A Zero-Sum Game: As with international trade, it is argued that the free movement of investment capital increases the aggregate sum of global wealth. FDI is not a zero-sum game. If capital is allowed to flow where its owners consider it can be employed most efficiently, then the highest return on capital will be achieved. Restrictions upon FDI necessarily result in the inefficient utilization of capital. This does not, of course, mean that everyone necessarily benefits from FDI- simply that the total benefit should outweigh the total detriment. Nor, of course, does if assume that capital will always be used efficiently- though it is assumed that restrictions upon FDI flows will result in less efficient utilization than if those restrictions did not exist. If one accepts that FDI produces a net benefit in global terms, then everyone should be happy so long as that benefit is shared fairly among the host country, the home country, the firm that undertakes it, and those persons most clo sely affected by the activities of the firm- its shareholders, customers, suppliers and workers (Easson, Benefits of FDI, 2004). FDI from the perspective of home countries: FDI is gen