It’s Time to End Pet Misery Year 11 Draft Essay

In the feeling piece ‘Let’s End Pet Misery’, included in the Herald Sun on the 21st of July 2009, author Susie O’Brien reacts to the issue of creature cold-bloodedness in Victoria. In a shocked tone, the author begs pet sweethearts and every other person the same to help another bill that means to make creature desexing mandatory, decreasing the paces of undesirable posterity and demonstrations of creature savagery submitted against these creatures. The essayist starts her contention with the utilization of similar sounding word usage combined with a buzzword. â€Å"A single stroke of the pen can spare †¦ pets from a short existence of wretchedness. † The similar sounding word usage of the two words ‘single’ and ‘stroke’ attracts more concentration to the banality; ‘a single stroke of a pen’. This accentuates how effectively the issue could be settled, irritated the peruser because of the little that has been done to take care of the issue. This strategy additionally attempts to ingrain coerce inside the peruser, making it more probable for them to make a move in helping the reason, along these lines supporting the writer’s dispute to help the obligatory desexing of pets. One procedure the essayist utilizes is an alarming measurement that has been compared in a bigger book. â€Å"In Victoria alone, 300 pooches are put as the day progressed. That’s †¦ in excess of 100,000 per year. † This unfathomably stunning measurement is an ideal method to help the writer’s dispute. It can speak to the dread and worry of pet darlings and every single other resident the same. This measurement works to draw the reader’s consideration, because of its keen position just underneath the heading, and attempts to ‘recruit’ more individuals to the reason, as most would be not able to quit perusing in the wake of being gone up against with such a measurement. Furthermore, it would rouse more individuals to help the writer’s dispute and make a move to stop this demise. One of the writer’s most grounded influential method is the utilization of a broadly realized account combined with forceful, emotive language. â€Å"In a staggering assault, somebody †¦ hacked off his ears and tail and afterward left him to kick the bucket in torment. † Through the utilization of the notable tale about Buckley, a multi week old Victorian little dog, the writer’s contention is fortified according to numerous perusers, as a larger part of them would have known about the story, and disliked the awful demonstration of creature savagery. Her contention is again fortified by a few examples of brilliant language. Expressions like ‘hacked off’ and ‘die in pain’ don’t misrepresent the malice of the wrongdoing, however rather work to give the peruser a more clear picture of the terrible demonstration. This at that point causes the peruser to feel all the more firmly about the issue, causing it almost certain they to take care of business. The solid utilization of visual media combined with the article is fruitful in giving the story a much more noteworthy impact; filling in as the metaphorical ‘icing’ on the contention. The biggest picture; that noteworthy the degree of Buckley’s stunning wounds, is an ideal backup to the content, giving the peruser a genuine thought of the aftereffect of his awful injuries. Moreover, the pictures of pets in a correctional facility, with their blameless eyes, and to some degree dreadful articulation makes the peruser contrast them with detainees whom have been wrongly charged; compelled to carry on with an existence of repression for another’s violations. These components make perusers wish to make a move; finishing the unfairness, and is successful in supporting the writer’s dispute. The sentiment piece, â€Å"Let’s End Pet Misery,† is powerful in convincing perusers to help the author’s promise to present a law making the desexing of pets necessary. While utilizing a profoundly rankled tone, the author utilizes similar sounding word usage related to a banality to give perusers a more prominent thought of how shocking the government’s inaction is. The essayist likewise stuns her perusers using a disturbing measurement, uncovering the genuine size of the passings of undesirable creatures. Besides, the utilization of a frightening tale utilized along with bright language, just as the pictures in the piece ready perusers to the seriousness of the circumstance and bid to one’s compassion, eventually reassuring us to share a similarly insulted see.

The Social Conflict Theory Sociology Essay

The Social Conflict Theory Sociology Essay Sociologists accept that there is four distinct methods of social clash. Most sociologists will utilize the hypothetical or point of view way to deal with assistance explore. There are a large number of approaches that are utilized by humanist in any case, the fundamentally stick to three sorts of hypotheses. The first would be the auxiliary utilitarian hypothesis, at that point the social clash hypothesis, lastly the representative association hypothesis. Inside these three methodologies are a few additional approaches to pick up explore (Conflict Theories, 2011). The social clash hypothesis attempts to show that society makes strife because of the imbalances that are available in regular day to day existence. Most sociologists will utilize the full scale level direction hypothesis essentially on the grounds that it accepts society in general and shows how it shapes our lives. It utilizes terms like disparity, power, authority, rivalry, and misuse (Conflict Theories, 2011). A portion of the models that would be utilized in the social clash hypothesis are authority. Authority considers the family, male centric society, race and ethnicity pecking orders of power. In disparity there is family, wellbeing, and property. Disparity sees how individuals are dealt with and how are seen by others. At that point there is rivalry which; can be anything from instruction, religion, to who will move over when you pass somebody in the city. Rivalry is instilled in each one of us from the time we are conceived until the time we kick the bucket (Conflict Theories, 2011). The force and misuse can go connected at the hip. The individuals that are in force or come to control arrived in such a state by abusing residents en route. Force, if not held within proper limits, will make the genuine of men degenerate. When the debasement sets in they will utilize that capacity to abuse individuals en route to acquire power (Conflict Theories, 2011). Karl Marx accepted there two gatherings of individuals in the public arena, the rich and poor people. He contemplated what might occur in the event that one gathering chose to up ascend against the other. He hopes to perceive what might occur and what jobs the individuals included would take. When the sides are picked and the revolt has started, Marx will consider the inward activities of the command class to perceive how they hold their status after the contention has finished (Conflict Theories, 2011). Social clash can be either utilized for fortunate or unfortunate. Take any uprising against the nearby government. In Somalia the individuals have been battling their administration for correspondence and reasonableness. The administration themselves are battling its own kin to keep the control or force. The whole way across time there is human uprising against people with significant influence. The prior fights were battled for land, the later fights are battled for eagerness, influence, and riches. A few instances of terrible social clash are the ongoing increment in acts of mass violence, bombings, and over all savagery that is tormenting the nation today. Sadly the honest by stander is typically the one getting injured or murdered. This isn't simply restricted to the United States; it is the whole way across the globe. Those that are in influence need more influence and riches to control the individuals who are less blessed. Along these lines, the social clash hypothesis is about people with great influence needing to remain in power and those not in powers needing to pick up power. All through time there have been numerous fights pursued in the craving to pick up power. Everything started with Karl Marx and has developed after some time to fuse numerous different speculations about wrongdoing and what causes it. There is likewise the practical hypothesis; this hypothesis is around ones gathering increase, because of another gatherings misfortune. This can be welcomed on by constrained assets, this can prompt clash. This can prompt more contact inside each gathering when they seek assets. This hypothesis is a social mental hypothesis thought to clarify partiality (Conflict Theories, 2011). A model for this would be migration. With all the bombings, psychological oppressor assaults, and brutality from one ethnic gathering or strict gathering. With the ongoing Boston bombings, this will prompt a negative response to all settlers of Muslim tolerable. It doesnt matter on the off chance that they are of Middle Eastern not too bad, individuals will see only the shade of their skin and naturally irregularity them into one classification, psychological militant. This hypothesis can be followed back through history. It tends to be seen with the British and Native Americans, Whites and blacks, Japanese and American, and as of late center eastern and Americans. The vast majority of these contentions have occurred more than one ethnicity doesnt like what the other one accepts, regardless of whether it is religion, legislative issues, or good standings. Muzafer Sherif did the well known investigation called Robbers Cave in 1954. He fundamentally took two gatherings of adolescent young men, put them in a camp, and had them go up against one another. He had 22 young men in the investigation, all working class white young men. These young men all originated from comparable foundations and childhood. He haphazardly alloted them to a gathering (McLeod, 2008). In the primary seven day stretch of the examination, the two gatherings fortified with one another. The young men picked bunch names and stenciled them on their attire and a banner. They fortified over climbing, swimming, and hanging out. This made and connection that reinforced the young men together (McLeod, 2008). In the second week he provoked the young men to rivalries against the other gathering. He utilized exercises like, baseball, back-and-forth and different games. The triumphant gathering would get a trophy toward the finish of the opposition. He likewise included individual prizes to make rivalry against the other gathering and inside the gatherings (McLeod, 2008). The young men turned out to be genuinely, obnoxiously, and intellectually harsh towards one another. They consumed every others banners, destroyed dozing regions, and must be truly controlled by the specialists. This examination demonstrated that it doesnt matter where you originate from, you can go to preference (McLeod, 2008). At that point there is the Game Theory which states examines the vital conduct of chiefs who know that their choices influence each other (Skekel, 2013). The gaming hypothesis accepted that individuals cooperated with one another like a game. This was finished by vital moves, victors and washouts, prizes and disciplines, or benefits and cost. It was the main model used to depict how the human populace associates (Game Theory An Overview, 2013). Along these lines, with this hypothesis you will have players, methodologies, and outcomes simply like in a game. There are numerous sorts of games like lose-lose situation, non-lose-lose situation, synchronous move games, consecutive move games, one-shot games, and rehashed games. These games are utilized to contemplate the gaming hypothesis (Game Theory An Overview, 2013). A well known gaming hypothesis is the detainees quandary. The detainees predicament shows why two people probably won't concur, regardless of whether apparently it is ideal to concur (Game Theory An Overview, 2013). They utilize two individuals who have carried out a wrongdoing and set one in opposition to the next. The condemning is finished by how the lawbreakers talk, or not talk. In the event that one accomplice talks, they get condemned and the other set free. In the event that the two of them stay calm they get a short sentence, on the off chance that the two of them talk the two of them get a moderate sentence. They never uncover what the detainees decided to do (Game Theory An Overview, 2013).

Best Papers For Sale Online

Best Papers For Sale OnlineThe best papers for sale online are not all the same. There are things that will help you make a wiser buying decision. This article will tell you what to look for and how to find the perfect set for your needs. We will also give you a little insight into how and where to buy such paper products.First of all, if you are new to buying papers you want to make sure that you do your research. Go online and read the various websites that are out there. There are a lot of websites that specialize in selling papers for sale, so there is no need to worry about running out of options.When buying paper online it is important to know what you are looking for. The best paper for sale online are those that are thin, of good quality, and have a good color to them. A website that sells sheets of papers should always offer the best quality and value for your money.Buying online can also be a problem. Some websites have a very small selection of papers for sale. Other websi tes are a little more upscale and offer a wider selection of papers for sale. The difference between these two is usually the price.You should be able to locate a website that offers many different websites and has a wide selection. This will help you find a lot of different paper products and get a wider selection. Another option would be to locate a website that is specialized in selling papers and offer them at a lower price than the other options.If you are interested in purchasing online, you may want to consider a trial offer. Most websites offer special prices for a limited time. It is a good idea to take advantage of this type of offer if you are new to buying papers online. You will get a good idea of the quality and price of the paper before you have to pay full price.Some people choose to order their papers online because they can actually go to a local store and pick up their paper for them. This is an option, but if you are like most people it is difficult to find a pla ce that can deliver your order. Try your local stores first. If none of them can deliver your order, there is still hope.If you are considering ordering your papers online then there are some guidelines you should follow. The biggest problem with ordering online is that you have no real way of knowing what the quality is. One company may have great quality paper, but another company might be using recycled paper that may not have as much quality. What you need to do is read the literature from companies such as Dow, American Paper, and Staples and determine how much you are willing to pay for paper products. This is the only way to truly know the quality of the paper you are looking at.

The Necklace By Guy De Maupassant - 934 Words

During the nineteenth century countries around the globe were primarily governed by royalties. There were many important figures like kings and queens all throughout Europe. Every person’s dream during this era was becoming part of the high-class and the elite. This epoch was full of controversial changes between the social statuses of citizens. An important bourgeois role model during this time period was Guy de Maupassant, who wrote one of the most influential short stories of this century. â€Å"The Necklace†, written by Guy de Maupassant, illustrates elements of fiction such as the symbolism of the necklace because of Mme. Loisel’s desire to be rich, irony due to the twist ending, and a powerful theme. Firstly, the necklace Mme. Loisel borrows and her perspective symbolizes the desire she has towards being wealthy and important in society. Maupassant describes effectively the aspiration Mme. Loisel had on being from the nobility all through the story by illus trating the greediness she portrays on the story. Mme. Loisel is greedy on this story due to the fact that she is never happy with what her husband can give to her and she always wants more and more. Moreover, Mme. Loisel thinks that the more money a person had the more valuable a person was. In â€Å"The Necklace†, Guy de Maupassant indirectly conveys Mme. Loisel’s real background at the beginning of the story when he points out, â€Å"She was one of those pretty and charming girls, born by a blunder of destiny in a family ofShow MoreRelatedThe Necklace By Guy De Maupassant863 Words   |  4 PagesThe short story â€Å"The Necklace† written by Guy De Maupassant, tells the story of a married couple who live an average lifestyle together in France—when one day everything in their lives changes due to a simple decision. The author aims to show the reader the power of decision making when faced to decide between needs, wants, honesty and untruthfulness and how every decision we choose to make affect our lives in ways we never thought possible. In the first few lines of the story, the narrator introducesRead MoreThe Necklace by Guy de Maupassant1034 Words   |  5 Pagesregret which Guy de Maupassant depicts throughout â€Å"The Necklace.† Guy de Maupassant, a French writer, born in 1850, was considered one of France’s greatest short-story writers. His writings were mostly influenced by the divorce of his parents when he was thirteen years old and by great writers such as Shakespeare, Schopenhauer, and Flauber. His parent’s divorce caused his stories to depict unhappiness of matrimony, deceit, miscommunication, and a profound misunderstanding (Maupassant, Guy de, 1850-1893)Read MoreThe Necklace by Guy De Maupassant1367 Words   |  6 Pagesâ€Å"Being Honest is Always Best† Telling the truth will always prevent future conflicts. Author Guy De Maupassant who lived from 1850 to 1893 proves in the story of â€Å"The Necklace,† that no matter how bad a situation is, speaking with the truth is always best. Now, this author does not prove this theme directly. Instead, throughout various situations in the story the main characters are faced with a long-term conflict because decisions were not made with honesty. Mathilde and Loisel who is her husbandRead MoreThe Necklace, by Guy de Maupassant791 Words   |  4 Pagescharacterized by other people. In â€Å"The Necklace† Mme. Loisel is a beautiful woman with a decent life, and a husband that loves her, and only wants to make her happy. She is not rich but she makes it along, she insists of a better, wealthier life. When her husband gets her invited to a ball, she feels the need for a brand new fancy dress and tons of jewelry. When the couple realizes they cannot afford jewelry as well, they searc h out to borrow her friend, Mme. Forestiers’ necklace. She comes to notice she noRead MoreThe Necklace, By Guy De Maupassant966 Words   |  4 PagesIn Guy De Maupassant’s â€Å"The Necklace,† Mathilde is a 19th century French woman who desires a wealthier lifestyle than she can acquire. She is completely indulged in the material possessions of life and is focused on the items she does not have rather than what she owns. It seems her happiness is entirely dependent on wealth and status. She neglects her husband and is never content with what he can offer. Eventually, Mathilde’s struggles of envy, selfishness, and materialism drive her to poverty.Read MoreThe Necklace By Guy De Maupassant1381 Words   |  6 Pagesstories are â€Å"The Necklace† by Guy de Maupassant and â€Å"The Secret Life of Walter Mitty† by James Thurber. â€Å"The Necklace† was about a materialistic woman who faced consequences because of her envious personality and â€Å"The Secret Life of Walter Mitty† was about a man who experienced daydreams randomly throughout the day. Although both short stories used literary elements, Guy de Maupassant utilized them for readers to understand and enjoy the story more than James Thurber. â€Å"The Necklace† was a short storyRead MoreThe Necklace By Guy De Maupassant1093 Words   |  5 PagesThroughout the short story titled â€Å"The Necklace† by Guy de Maupassant, it is clear that the main themes being stressed are pride versus greed, and that things are not quite what they appear. Each of these things are represented throughout the story in some way, whether it be using animated language or symbolism. It is also clear that background information clearly aided the development of the themes Maupassant incorporated throughout the passage. It is seen throughout the story that the main characterRead MoreThe Necklace, By Guy De Maupassant999 Words   |  4 PagesIn Guy de Maupassant’s â€Å"The Necklace,† readers experience Mathilde Loisel’s life-changing event. Coming from nobility, de Maupassant tells the story of luxurious desire through the eyes of the middle class woman Mathilde. Mathilde constantly dreams of living the life of the upper class, and this prohibits her from acting in reality. Mathilde’s internal struggle for a sense of social royalty shows readers how quickly selfish pride destroys a person’s life. Throughout the course of â€Å"The NecklaceRead MoreThe Necklace By Guy De Maupassant1019 Words   |  5 PagesIn the short story of â€Å"The Necklace†, the author Guy de Maupassant is a creative and intriguing tale which reveals a person s dreams of a luxurious lifestyle with countless materialistic possessions. He has skillfully developed the story into a mystery which reveals itself at the end. The main point in the story is that materialism can distort your view of happiness and fulfillment. It is wrong to be materialistic to the extent that you disregard what you already have and lose everything. MathildeRead MoreThe Necklace, By Guy De Maupassant823 Words   |  4 Pagesbe totally unhappy, â€Å"She was a simple person without the money to dress well, but she was as unhappy as if she had gone through bankruptcy, for a woman have neither rank nor race†(Maupassant 7). Loisel s sorrow over wealth and fancy things puts a constant pain on her husband. In Guy de Maupassant short story â€Å"The Necklace,† Mathlide Loisel goes from being a materialistic, dishonest woman to becoming an honest, hard-working woman. At the beginning of the story, Mathlide Loisel is a raging, spoiled

The Sub Prime Crisis In The United States Finance Essay - Free Essay Example

Sample details Pages: 10 Words: 3130 Downloads: 9 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? The sub-prime crisis was said to have sprung up when mortgage lenders in the United States began giving out creatively well-crafted loans to provide money to high-risk borrowers so as to purchase homes during the economic and housing boom of 2004. Sub-prime mortgage loans are loans which in essence are offered to people who comprise of possessing a greater level of risk than those borrowers who were eligible for traditional loans from banking institutions. Borrowers labeled as high risk are usually denied access to loans at standard rates and are thus are forced to look towards sub-prime lenders. Don’t waste time! Our writers will create an original "The Sub Prime Crisis In The United States Finance Essay" essay for you Create order In many cases, accepting a sub-prime loan is the borrowers only access to credit. These high-risk borrowers, it is usually seen have high debt to income ratio, little to no credit history and poor credit  [1]  . The expansion of the sub-prime market was due to a number of factors, such as the constant strengthening of the housing market; relatively low interest rates; and deregulation by the federal government which no sooner than later led to innovations in mortgage products making loans available with lesser down payments, and fewer documentation requirements. The increase of securitization of sub-prime mortgage products also turned out to be a contributing factor to this development of sub-prime loans as it transformed future income influxes into immediate liquid funds  [2]  . Also, the funds made available by securitization were utilized in such a fashion so to contribute as capital to fund more home finance. Thus, through securitization, increase in loans originate d meant greater finance being accessible for future home finance. The existence of sub-prime loans as a percentage of all mortgages which were present in a given year saw an increase of nearly 8% in 2003 to 20% in 2006. And also, it is to be noted that most of this expansion was funded by securitization; approximately 75% of the $ 600 billion of all mortgages which emerge in a given year are now securitized  [3]  . What Is Sub-Prime Market? Home mortgage lending in the United States is divided into two market segments prime and sub-prime. The prime market can be availed of only by individuals with solid credit histories whereas the sub-prime market offers financial services to potential homeowners with sketchy credit histories. Borrowers in the sub-prime market in contrast to the prime market present an increased risk of default, which the sub-prime lenders in turn take advantage of by offering only higher interest rates and fees  [4]  . What Is Sub-Prime Mortgage? In testimony before the Senate Committee on Banking, Housing and Urban Affairs, Roger T. Cole, Director of the Federal Reserves Division of Banking Supervision and Regulation generalized the usage of the term à ¢ÃƒÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬ÃƒÆ'†¹Ãƒâ€¦Ã¢â‚¬Å"sub-prime borrowerà ¢ÃƒÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬ÃƒÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¾Ãƒâ€šÃ‚ ¢ by stating that those who do not qualify for prime interest rates because they exhibit one or more of the following characteristics: weakened credit histories typically characterized by payment delinquencies, previous charge-offs, judgments or bankruptcies; low credit scores; high debt-burden ratios; or high loan-to-value ratios.  [5]   Apart from these above-mentioned properties of sub-prime borrowers, the loans usually considered as sub-prime have higher upfront costs, as far as fees associated with closing the loan (eg. Application fees and appraisal fees) and continuing costs, a resultant of higher interest rates. They are often identifiable by such other hybrid characteristics as an initial, low initial interest rate (sometimes called a teaser rate) that is in effect for one or two years (at times even for just a few months), that then changes to an adjustable rate which is much greater than the teaser rate for the remaining life of the loan. Sub-prime mortgages can usually be identified by just gauging the distinctiveness of the borrowers as well as by the terms of the loans that are made to them  [6]  . The Process of Securitization After the mortgage agreement is concluded, the mortgage is usually sold on the secondary mortgage market, where financial institutions purchase the creditors interest in the loan i.e. the right to collect the payments and the right to terminate and foreclose should the borrower default on his/her payment requirements. When the creditor plans to securitize the mortgage the interest in the mortgage will be transferred to a Special Purpose Vehicle (SPV), generally a trust, which comprises multiple mortgages in its portfolio, creating a cluster of loans. The assets of the SPV (for the most part, the income that flows from the mortgagors obligations under the mortgages held by the SPV)be it is the right to discharge of payment of interest on the loans in the pool, or the payment of principal, or some other rightare classified into tranches, and such tranches are then bundled up as securities to be sold to investors  [7]  . Coordinating with an underwriter and rating agency, the v arious tranches are scrutinized for the risk related to the assets (the various income streams, as illustrated above) that back them. Usually, the bond rating agency depends on information given by the lender, especially the various representations and warranties made which in turn ensure that the loans in the pool were in compatibility with applicable law when they initially came into existence. It also considers information in the aggregate with pertinence to the loans in a particular pool, gauging information such as credit scores, the equity which the borrowers have in their homes, and documentation of income and assets. Simultaneously, an assessment is also made of the lender itself, assessing the underwriting standards along with lending and performance history  [8]  . Credit enhancements are also utilized by the creditors so as to make investment in the securities seem more viable by lowering the risk related with the investment. Such enhancements can consist of loan g uarantees from a particular insurance company or similar guarantor, and the creation of a chain of tranches whereby particular tranches are more exposed to risk than others. Investors which comprise of hedge funds, mutual funds, pensions, brokerage houses, and individualsthen buy the securities created and backed by the assets in the SPV. An independent agent, the servicer, handles the daily management of the individual mortgages which back the securities. That servicer is duty- bound to collect the monthly payments of interest and principal, monitor loans in default and pursue foreclosures wherever they may be necessary  [9]  . Types of Sub-Prime Loans Sub-prime borrowers usually do not choose to amortize the loan for fifteen or thirty years with a typical twenty percent down payment, as lenders of traditional mortgages would require. Sub-prime borrowers generally look for methods to afford a home which would be beyond their price range under typical lending guidelines.  [10]  Lenders taking this fact into consideration are creative in constructing schemes that would seem attractive to consumers and profitable to the lenders, at times without any regard to the future effect. The two most popular products, which vary immensely in their terms, are the interest-only loan and the payment-option adjustable rate mortgage (ARM) loan which the researcher shall now discuss  [11]  . 1. Interest Only Mortgage Loan With the interest-only mortgage loan, the borrower pays only the interest on the loan for a certain period of time. The loan balance does not decrease as no payments are diverged to the principal during this period. After the interest-only time period expires, which may be as much as five to ten years, the borrower must pay both principal and interest. As a result of the interest accumulated during the interest-only period, the monthly payments on the loan gradually increase when the interest-only period ends  [12]  . 2. Payment Option Adjustable Rate Mortgage The second popular option of sub-prime lenders is a payment option known as the Adjustable Rate Mortgage (ARM). As the name implies, this loan has terms that allow flexibility to the borrower. In order to better manage the borrowers cash flow, there are several possible payments on the mortgage each month  [13]  : (A) The borrower may make a minimum payment based on a very low, introductory interest rate, (B) The borrower may make an interest-only payment, or (C) The borrower can make a fully amortizing payment as if it were a traditional loan With the minimum payment option, using the low introductory rate the m onthly payment for the first few months sets the interest due at the teaser rate. After this period, the interest rate increases, and is restructured according to a fixed time. With this option, if only the minimum monthly payment is made, it will not be enough to pay off all of the interest charged on that loan for that time period and the unpaid interest will be attached to the principal balance owed. This is again a case negative amortization, resulting in the borrower owing much more on the loan at the time the payment option period expires  [14] Cause of the Sub-Prime Crisis With the prospects in the home mortgage market becoming fragile, the drive to persist in issuing mortgage-backed securities resulted in many lenders loosening their underwriting criteria and give out riskier loans. The incentive structure in the market, combined with a deficiency of accountability in the system, has resulted in the present scenario of the sub prime mortgage market: a greater number of de-faults, bankrupt lenders, and devalued securities  [15]  . Another reason for the growth in sub-prime was some of the federally enacted statutes which will be discussed in the next chapter. II: The Role of Federal Law In Fuelling Sub-Prime Crisis Sub-prime lending become much more widespread by statutory changes to banking legislation in the 1980s, and the introduction of creative implements in the method that mortgages were financed. State interest rate caps on mortgages were precluded by federal legislation in 1980 via the Depository Institutions Deregulation and Monetary Control Act (DIDMCA). In 1982, lenders were allowed to offer adjustable rate mortgages through the Alternative Mortgage Transaction Parity Act of 1982 (AMTPA). In the end, deregulation was crucial to the increase in sub-prime lending  [16]  . In the 1980s, the federal government passed several legislations that made sub-prime lending prevalent, even when such practices were made illegal in many states. The Depository Institutions Deregulation and Monetary Control Act (DIDMCA)  [17]  deregulated interest rates on loans. This act preempted state caps on interest rates for residential loans  [18]  . The DIDMCA allows lenders to charge high er interest rates to borrowers with lower credit scores, i.e, the sub- prime borrower. By precluding state ceilings on mortgage loan rates, the law provided for interest rates on mortgage loans as high as usury laws tolerated. The DIDMCA gave lenders the option to charge increased interest rates to risky borrowers. Accordingly, lenders could validate taking risks on borrowers with a bad credit history as a higher interest rate guarantees a higher payoff  [19]  . The Alternative Mortgage Transaction Parity Act (AMTPA)  [20]  was created to make mortgage loans available to a larger pool of individuals by offering alternative mortgage transactions  [21]  . Such transactions were comprised of variable-rate transactions, consisting of variations usually construed as uncommon to traditional fixed-rate, fixed-term transactions. The Act allowed non-federally chartered housing lenders to provide for alternative mortgages in accordance with federal regulations. This ensured tha t such lenders were in conformity with federally chartered institutions. The consequence of this law was to provide for non-federally chartered lenders to grant a loan either under state law, which was highly regulated upto this point of time.  [22] The AMTPA brought about variable-rate loans and balloon payments to the market of mortgages. This act seeked to do away with the discriminatory impact past regulations placed on non-federally chartered housing creditors and to place the creditors on equal footing with federally chartered institutions.  [23]  It gives all housing creditors the authority to purchase, make, and enforce alter-native mortgage transactions and thus served to act as a legislation which proved to be a major contributor as far as the sub-prime crisis was concerned.  [24]  . The Tax Reform Act, 1986 encouraged homeowners to obtain mortgage loans by doing away with the interest deductions for consumer loans but at the same time permitting mortgage i nterest deductions. Because of the tax incentive, homeowners were provided incentive to acquire loans secured by their homes instead of acquiring consumer loans  [25]  . These three acts had opened the floodgates for sub-prime lending. The DIDMCA increases ceilings on state mortgage interest rates; the AMTPA gives non-federally chartered institutions the same alternative mortgage rights as federally chartered institutions; and the TRA provides borrowers incentive to borrow money on their home from bankers and other financial institutions. III : Damage Control By the United States Federal Government On December 18, 2007, legislation was enacted so as to assist sub-prime borrowers obtain tax relief. The Mortgage Forgiveness Debt Relief Act of 2007 created a three-year period for homeowners to refinance their mortgages and pay no taxes on any debt forgiveness that they received. This changed current law, where the tax code construed any monetary sum forgiven by lenders as taxable income. The rationale was that this would preclude potential foreclosures  [26]  . In addition, the Department of Treasury and the Department of Housing and Urban Development encouraged the formation of a private-sector alliance to help sub-prime borrowers. The program, entitled the HOPE NOW alliance, comprised of efforts at encouraging lenders and mortgage servicers to provide workouts to borrowers, which may include lowering an interest rate on a loan, or spreading out the interest payments over a longer time period on the loan  [27]  . In August, 2007, the Bush administration came to the c onclusion that the market alone would not be able to solve the problems created by the sub-prime lending industry, and introduced FHA Secure. Under this plan the Federal Housing Administration (FHA), which provided mortgage insurance to borrowers through private lenders, provided for sub-prime borrowers an option to refinance into loans it insured.  [28]  The Federal Reserve Board also introduced a new rule under the Home Ownership and Equity Protection Act. The motive of this rule was to protect consumers from predatory lending and advertising practices. Specifically, as it was applicable to sub-prime loans, creditors would be prohibited from extending credit without considering the borrowers ability to repay the loan, it would be a pre-requisite for creditors to corroborate income and assets, prepayment penalties would only be issued in certain instances, and escrow accounts would have to be established for taxes and insurance. With regard to advertising, certain deceptive adv ertising practices would be banned, including making representations that if a rate is fixed, it can change  [29]  . Iv: The Spill-Over Effect of the Sub-Prime Crisis in the Indian Market The impact of the sub-prime crisis was felt in a number of growing economies as well. As far as India, which was riding on an economic boom at that point of time, the economic growth rate tumbled from 9% in 2007-2008 to around 6.5% in 2008-2009. However, the impact of the recession on India, was not as bad as other countries, since India did not posses great exposure to foreign markets.  [30] However, due to the foreign institutional investors, selling off their assets in the Indian market, the stock exchange in India, suffered a blow, and its dreary situation reflected it. The stock market tumbled from nearly 20000 points to a situation of 8000 points. The tumble was attributed to three factors namely: the drying up of finance from abroad for Indian banks and corporates, the constraints of raising funds in the domestic capital market as a result of the situation world-wide and also because of the decrease in the accruals of the corporate in India.  [31] As far as liquidi ty is concerned, there was a drying up because of the pulling out by the foreign institutional investors, and thus this led to a fall in reserves. The influx of investments in the IT Sector was a result of the multitude of investment in it, as Indian IT firms derived 75% of their revenue from the United States. The inability of Indian firms in raising funds abroad in light of the crisis led to the RBI, providing for an expanse in liquidity by reduction of the cash reserve ratio (CRR), the repo and the reverse rates.  [32] As far as exports were concerned they suffered a sharp hit as well. This was because of the fall in purchasing power of consumers. This fact can be illustrated by the inflows in 2007-2008, which were nearly 100 billion dollars as compared to just 10 billion dollars in the following year.  [33] As far as the banking system in concerned, the Committee for Financial Sector Assessment (CFAS) set up by the Government of India and the Reserve Bank of India has assured that the financial system is essentially sound and stable, and there is no cause for fear with regard to the vulnerabilities which other banking systems were facing. Despite the strength of the assets of the banks across the country, the call money rate escalated by nearly 20% after the collapse of Lehmann Brothers and the daily liquidity adjustment facility overshot nearly 50,000 crores, under the tight liquidity situation. The Reserve bank of India in this scenario took various steps to ensure that there was credit flow to various productive sectors of the economy, despite the liquidity crunch. Liquidity was infused by controlling the interest rate management, risk management and the credit management.  [34] For example, The CRR was reduced by nearly 400 points from around 9% in August, 2008 to 5% in January, 2009 Reduction in the repor rate (the rate which RBI lends to banks) from 9% to 4.75% in order to improve the flow of credit. The reverse repo rate w as also reduced to around 3.25% by nearly 2775 points. As far as fluctuation in the exchange rate was concerned, the rupee became stronger to the dollar, and this led to exporters pushing for government intervention and rate cuts. However, it is to be noted that the government took note of the reduction in the import bill and thereby narrow the wide trade deficit. V: The sub-prime crisis in retrospect The major cause for the sub-prime crisis in the United States could be attributed to the deregulation procedures followed by the government, and giving the private financial sector, more or less unlimited freedom. In stark contrast, is the Indian financial scenario, where due to the conservative practices of the banking sector and the Reserve Bank of India having a strong foot-hold in the functioning of banks throughout our country, the country was able to withstand a global melt-down of such a great scale. Apparent is the idea, in light of how adeptly the RBI handled the liquidity crunch by regulating the interest rate management, the risk management and the credit management systems, always ensuring that the productive sectors of our economy do not disintegrate. The argument in favor of deregulation has always been capitalism, however, this crisis teaches us that leaving the hands of the economy in the private sector, would only lead to short-term gains and long-term pains. In a way, it could be said that we should be thankful for the nationalization of banks in the 1970à ¢ÃƒÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬ÃƒÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¾Ãƒâ€šÃ‚ ¢s or we might have been facing a situation, being a developing country at that , a crisis worse than the one which is plaguing the United States of America.

The Ethics Of The Ut Student Government - 878 Words

Campaign financing has become an overwhelming issue in America as a whole, and there is no question that different perspectives have escalated within the last few years concerning, which is indeed, the â€Å"most democratic†. However, in terms of a govern election for the UT student government I believe proposal three is the most sound in creating the most democratic system in that it gives candidates the same chance in the election process and restricts the personal wealth of individual candidates. In proposal three candidates can only accept donations from students and each donation cannot exceed $25. Since this election is only regarding the UT student body, there should be no question that student contributors solemnly control it. The restriction that a donation cannot exceed $25 is not only a reasonable amount for students, but also shows the support for the candidate in that their names will be disclosed as part of the campaign. The $25 limit restriction also evens the p laying field for every candidate that there is equal opportunity for all. Candidates should not be able to spend their own money because some candidates might be more wealthy than others, in that case why even have a $25 limit to donations if you can get more money out of your own pocket. This restriction is then needed in order to have a fair democratic election. Proposal three also states that there is no limit to the amount candidates can raise and spend. With this the candidate is free to spend and buyShow MoreRelatedWhat Makes Ut Austin?1923 Words   |  8 Pagesthe rest of your life. My Brother, and cousins are in UT as of now. When your roots are from your surrounding’s or Family, Those traditions, and values are your core, and will be passed down to my own kids. I have also visited The University of Texas Austin, Multiple times, and it is a perfect fit for me. 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There are also several guidelines like the Media Entertainment Arts and Alliance, Australian Journalist’s Association and The National Union of Journalists code of ethics among others to which journalist have to ethically abide by. The indigenous people are natives that have always been in the country. They are different in culture, race and religion. They represent the minority of the ‘society’ and are fewer in numbersRead MoreLeadership, Policy, And Change : Beyond The Darkroom : Documentary Photography As A Tool For Social Change2001 Words   |  9 Pagespolicies, and personal revolutions have begun with and been supported by the click of a shutter. From the Great Depression-era of the 1920s to the modern day Black Lives Matter movement, photography has been used strategically by both the federal governme nt and community organizers to shed light on systemic issues such as homelessness, poverty, child labor, racism, and hazardous working conditions. 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An essay on Thor and Thor the Dark World free essay sample

Thor (2011) and Thor the Dark World (2013) are both films of the Marvel Cinematic Universe, loosely based on the Marvel Comics which in turn were based on the Gods of Nord Mythology. The films depict the love-hate relationship between the brothers Thor, the God of Thunder, and Loki, the God of Mischief, and how their actions reflect on each other. In Thor, the first film of the series, which was directed by Kenneth Branagh, Thor, the protagonist, is about to be crowned kind of Asgard, when his brother Loki, in an act of jealousy and bitterness after finding out he is an adopted child, creates a plan that leads to Thor’s exile in Midgard, aka Earth, and becomes king in his place. In its sequel Thor: The Dark World, which was directed by Alan Taylor, Thor, long released from his exile and Loki, now locked up in Asgardian prison for his previous actions, including his attempt to take over the Earth in The Avengers (2012), have to unite forces to defeat a greater evil and face each other as they deal with their past and present sibling quarrels. Both films focus strongly on themes such as the growth of an identity as villain and hero, responsibility for your actions, the duality of good and evil within the same person and family bonds. Through the various conflicts that happen through the films it is noticeable that the characters define themselves in opposition to each other, as Tom Hiddleston, the actor who portrays Loki in both films, said himself: â€Å"there is no Thor without Loki and no Loki without Thor. † In the beginning of the first film, it is quite clear how both brothers were still naive, each in their own way, not realizing the power and consequences of their own actions to its full. Thor was a reckless, proud boy who would put his wishes and pride as a warrior before strategy and the safety of a kingdom and its people. He also would barely acknowledge his brother’s feelings. Loki, in his turn, was still on the shadow of his brother, hurt by not being the chosen one to the throne and yet not completely decided to do anything so as to fulfill his own wishes. It is through the first film that Thor matures and become truly aware of the people around him and of his responsibilities. It is also possible to notice how Loki gradually gathers confidence in his own actions, as at first he seems timid in telling lies and expressing his feelings, still wearing the mask of a good man before he accepts the turn of events and the whole of his grief towards his brother. While Loki does manipulate Thor to invade Jotunheim, realm of the Frost Giants, enemies of Asgard, he told a guard what Thor would attempt to do so Odin would stop them before they left Asgard and he would seem unworthy of the throne. However, no one was there to stop them. It was clear to see in Loki’s eyes that he was very fearful and thrilled as they faced the Giants, and it seems he was honest when he tried to make Thor give up the fight and go home. When Odin finally arrived, Thor’s vain actions in Jotunheim had unfolded too much for him to have a light punishment, and the very fact he would not abide by his father’s decisions proved him not to be ready for the throne. As a result, Odin exiled him and separated him from Mjolnir, Thor’s hammer, casting a spell in it that would only allow a worthy man to be able to lift it and possess the power of Thor. Even though it was not Loki’s intention, was it not for him Thor would not have gone through such a humbling experience as his exile was and would not have become truly worthy of his own powers. After accepting his condition as only a man he learnt to be grateful to the people who helped him and to apologize to Loki even though he didn’t know what exactly he could have done to make his brother act against him. Meanwhile, through the film Loki finally reveals his true feelings of bitterness towards his family in different scenes: towards his father when he realized he was adopted and accused him of only using him as a tool, and towards Thor when he tells him they’re not brothers and that he actually never wanted a throne, but to be his equal. Through that turn of events it’s quite clear how the siblings are intimately related to each other’s development and behavior, even if indirectly. In Thor: The Dark World, the character’s growth was evident right from the beginning. Even though Loki still justified his actions and talked as if he did not believe he ever did something wrong, he could no longer pretend to be innocent when people publicly threatened to kill him in case he betrayed Thor again, instead he could only laugh off and mock them for their rage. Thor, in turn, had become a much wiser man and was no longer willing to trust his brother, as he states: â€Å"You should know that when we fought each other in the past, I did so with a glimmer of hope that my brother was still in there somewhere. That hope no longer exists to protect you. You betray me, and I will kill you. † Now the characters are no longer struggling with their hate for each other, but with their love. After his every action, Loki finds himself without barely any possibility of redemption in front of his family and gathers even more reasons to feel bitter about them as the only person who cares to speak to him is Frigga, his mother. With such bitterness filling his heart, he claims again that Odin is not his father to her, causing her to question him with the logical assumption that if Odin is not his father, so she is not his mother either. Although it does reach Loki when Frigga says that, he had buried himself so deeply into that mindset that he was too proud to take back his words; instead he simply told her that she was not his mother even though he didn’t mean it. When Thor has to seek Loki’s help and clandestinely leave Asgard, it is the first time the audience sees the brothers acting as such, all the way from Loki trying to annoy his brother with silly jokes and mockery to them actually talking to each other honestly for the first time in years. Such moments led Thor to feel very clearly the difference between his relationship in the past and in the present, causing him to say â€Å"I wish I could trust you†. In spite of Loki’s forceful rejection of his family bonds with Thor and his parents, it was visible that after Thor turned around Loki seemed quite heartbroken by that statement. His only response was to quietly say â€Å"Trust my rage†, for they had the same wish of vengeance for their mother’s death and it seemed he could no longer regain his brother’s trust in himself. However, later when Thor was being defeated in battle, Loki came for his help and killed the monster, in turn getting stabbed in the chest and supposedly sacrificing himself in order to save his brother. Despite Thor’s hopelessness in Loki’s nature scenes before, with one great action his brother was completely redeemed in his eyes. It is agreeable that Loki’s action was indeed, very redeeming, but the way Thor accepted so easily that it was true, with pure intentions, is very clarifying about Thor’s feelings for his brother. He could only accept it so easily because deep inside that was the brother he wished to see in Loki. Throughout the films you can see the characters grow and change, they become both more mature and more aware of their own natures, and they also change the way in which they act towards other people. However, one thing does not change: the emotional bond they have. Even if they may decide they’re not worthy of their trust, they’re not capable of simply forgetting everything they mean to one another simply because they did each other wrong. Instead, in each film they find a different way of dealing with it, a different development in their relationship. The brothers Thor and Loki share a connection so deep and complex that is beyond what some would expect from a super hero film. In the franchise they may consider making a film with one of them alone, but it hasn’t happened so far because of their true co-dependency. Even when Thor was absolutely hopeless about his brother, Loki managed to surprise him and redeem himself in his brother’s eyes by supposedly dying for him. And even when Loki himself meant to completely deny his feelings for his brother, his emotional actions, even if rage-ridden, showed otherwise. Although quite simple, there is one sentence that sums it up, without which a description of their relationship would never be complete: â€Å"There is no Thor without Loki and no Loki without Thor. † Like yin-yang, they’re opposing forces that complete each other. Without one another they would not be who they are, Thor and Loki define themselves respectively as hero and villain in opposition to each other. Their dynamic is very interesting to see in films, for it doesn’t jeopardize the depth of family bonds and makes it very understandable that there is much more to a villain than his evil actions and much more to a hero than just strength. Before anything they’re people, and as people they should be understood before judged.

The Basel Accord free essay sample

This paper throws light on this and a number of related issues due to a combination of the novelty of the survey data from risk managers coupled with a rigorous statistical analysis. Results reflect that the Basel Accord is generally well regarded due to its underlying aims of improved capital standards and a scientific treatment of risk. However, operational risk emerges as a key barrier to implementation in Bangladesh. A number of further obstacles are highlighted, which, do seem to have been addressed although only with a partial degree of success. Privately owned banks appear to be more technically competent and more favorably disposed towards implementation than publicly owned banks. ACKNOWLEDGEMENT First of all I would like to my cordial thanks for almighty Allah whose uniqueness, oneness, and wholeness are unchallengeable guided us in difficult circumstances. All respects are for his holy prophet Hazrat Muhammad (SM) Peace be upon him, who enable us to recognize the oneness my creator. We will write a custom essay sample on The Basel Accord or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page I would like to thank Mr. Ziaul Hoque Zia, my university supervisor for guiding me in planning and composing the assignment. He was always available to provide me with his supervision and guidance during the entire course. Therefore, I express colossal appreciation for his aid. From the early hours of the morning to the sunset of the evening they have guided me through various operations of the study and provided me with essential support for my assignment. I pray to Allah that He be merciful to all of these people. Last but not the least thanks goes to my parents for bearing the tension, frustration and all the hard work along with me through the entire MBA program. EXECUTIVE SUMMARY In its depth and scope, Basel is unlike anything the banking business has seen. A combination of micro- and macro-prudential norms, the global regulatory mandate (which rolls out this year through 2018)1 requires banks to increase their quality of capital by focusing on liquidity and common equity; improve supervision of firm-wide risk management; and provide detailed reporting on regulatory capital and the calculation of capital ratios. It mandates adherence to ratios such as liquidity coverage and net stable funding, which are aimed at strengthening banks’ short and long-term liquidity. Most prominently, Basel is transforming risk management into a function that fortifies banks’ sound functioning. These changes will necessitate a fundamental review of each bank’s operating model. Many banks will need to decide which businesses and geographies to focus on and which to exit. Almost all banks will need to invest in technology capabilities to meet Basel III’s stringent data reporting and risk management requirements. While these investments will strain bank balance sheets, they will also create opportunities to extract additional efficiencies from day-to-day operations. Given the pressure on margins, we believe that banks need to go beyond the standard applications of the new technologies. By building strong capabilities in the areas that are the focus of these regulations, banks can differentiate themselves from their competitors. Key imperatives for banks as they prepare for Basel include: †¢ Undertake a fundamental analysis of individual businesses to identify growth drivers. Banks in most G-10 countries have implemented it since the early 1990s. It is now considered largely outdated and is in the process of being replaced by  BASEL II. It is also called Basel I. A set of agreements set by the Basel Committee on Bank Supervision (BCBS), which provides recommendations on banking regulations in regards to capital risk, market risk and operational risk. The purpose of the accords is to ensure that financial institutions have enough capital on account to meet obligations and absorb unexpected losses. Objective of study The primary objectives of the report are to fulfill the academic requirement of a assignment during my study which is required for the completion of MBA degree under BGC Trust University Bangladesh, and to enhance my knowledge base by probing into the details of Basel accord and how risk management sails through the required criteria’s, and how the regulates the industry through Basel. The report goes into explaining the ways of bank allocates its risk management, disclosure of market information and the coordination of Risk Rationality of study The banking industry is the backbone any country. It helps to improve the economic development of the country by advancing the needy and also helps for capital formation, resulting into increasing the employment opportunities. The authors intend to study the various risks faced by the banking industry especially after impact of subprime crisis in 2008over the world economy and its repercussions in the Indian economy. It has been therefore decided to have an in depth knowledge taken by the developed countries after 1988 in the form Basel accord. Methodology of Study For my internship report I have collected data from both the Primary sources and the secondary sources. Primary data: I got the data or information through the following ways- * Directly from the internet and books. * By observing the environmental behavior, facts, record and present condition of the BASEL. * By working in Customer Service and communicating with the clients of the bank from various industries. Secondary data: I have collected the secondary data through annual reports of Bangladesh Bank, market disclosure reports of Bangladesh bank, online newspaper articles from The Daily Star and The Financial Express, various informative websites etc. Statistical methods: Descriptive and graphical methods of calculations have been made for the mathematical representations to prepare this report. Limitation of study I have dedicated my entire efforts to enrich and complete this report although there are some limitations which are as follows: * Basel II is a comparatively newer regulation posed on banks compared to the others regulations from Bangladesh Bank; therefore few employees have sufficient information about it. Basel III has not been yet proposed for implementation by Bangladesh Bank. Bank employees are extremely busy with transactions and other purposed therefore the time that could be managed from was not enough. * Unfortunately due to the Banks limitations (business secrecy and confidentiality), I was unable to acquire sufficient information. * Personal barriers such as inability to understand some official terms, office decorum created a few problems for me. * Time was also a limitation. Gathering such an amount of information by only working for three months was an extremely difficult job. Part-2 An Overview of BASEL The first Basel Accord, known as Basel I, was issued in 1988 and focuses on the capital adequacy of financial institutions. The capital adequacy risk, (the risk that a financial institution will be hurt by an unexpected loss), categorizes the assets of financial institution into five risk categories (0%, 10%, 20%, 50%, 100%). Banks that operate internationally are required to have a risk weight of 8% or less. The second Basel Accord, known as Basel II, is to be fully implemented by 2015. It focuses on three main areas, including minimum capital requirements, supervisory review and market discipline, which are known as the three pillars. The focus of this accord is to strengthen international banking requirements as well as to supervise and enforce these requirements. Basel III is a set of standards and practices created to ensure that international banks maintain adequate capital to sustain themselves during periods of economic strain. Basel III adds further controls to those required by  Basel-II, which in turn was a refinement of Basel I. Bangladesh status Basel II would be implemented from January 2009. In this regard a quantitative impact study (QIS) to assess the preparedness for implementing Basel II as well as the bank’s view on the optional approaches for calculating Minimum Capital Requirement (MCR) as stated in Basel II was carried out in April-May 2007. Study amp; subsequent discussion with few related banks reveal that bankers should be more acquainted with the New Capital Accord (Basel-II). To address this challenge capacity building of concerned implementing amp; supervisory officials should be given first priority in the Action Plan/Roadmap. Basel II may be implemented with the ollowing specific approaches as initial steps: a) Standardized Approach for calculating Risk Weighted Amount (RWA) against Credit Risk supported by External Credit Assessment Institutions (ECAIs) b) Standardized Rule Based Approach against Market Risk and c) Basic Indicator Approach for Operational Risk. From January 1, 2010 Bangladesh Bank instructed all the scheduled banks to follow the instructions regarding Minimum Capital Requirement (MCR), adequate capital and disclosure requirement as stated in the guidelines on Risk Based Capital Adequacy (RBCA) for the purpose of statutory compliance (Rahman, 2012). According to the accord, a banks minimum capital must be TK400 crore by August 11, 2011. Of the amount, Tk 200 crore must be in paid-up capital (Rahman, 2012). On the other hand, the RBCA ratio has to be a minimum 10 percent of assets. BASEL II and BASEL III Implementation by BANK RISK MANAGEMENT following the statutory requirements of BANGLADESH BANK34 The Basel II accord has been prepared on the basis of three pillars: minimum capital requirement, supervisory review process and market discipline. And three types of risks credit risk, market risk and operational risk have to be considered under the minimum capital requirement (Rahman, 2012). Earlier in 2009, Bangladesh Bank allowed commercial banks to raise their capital even by subordinated debt (Rahman, 2012). Under the accord, risk of assets of a bank client must be rated by external credit rating agencies, otherwise provision will be higher at 125 percent instead of 50 percent which is for rated ones (Rahman, 2012). Generally speaking, these rules mean that the greater risk to which the bank is exposed, the greater the amount of capital the bank needs to hold to safeguard its solvency and overall economic stability (Wikipedia, 2012). Part-3 Major Findings of Analysis 1. Key risks There are many banking risks. Most common approach is to group banking risks to credit risk, liquidity risk, market risk and operational risk. Credit risk Credit risk is described as the risk to have losses because counterparty is not capable to carry out its obligations according to the terms of the agreement. Sometimes losses occur even when the counterparty does not breach the contract, but there are certain signs showing increasing probability of borrower’s insolvency (e. g. downgrade in credit ratings of the borrower). Credit risk is one of the key risks for the banks as failure to properly evaluate it may lead to insolvency and bankruptcy. Aggregated stress testing of Lithuanian banks results of the yr. 2002 showed that banks consider credit risk to be the most important risk, constituting over 62% of possible losses [6]. Basel II suggests 3 alternative approaches for credit risk management – Standard approach, Foundation Internal Ratings Based (F-IRB) approach and Advanced Internal Ratings Based (A-IRB) approach. Using standard approach, capital coverage is calculated by applying certain risk weights to certain balance sheet items. Internal ratings based approaches calculated capital coverage as function of PD (probability of default), LGD (loss given default), EAD (exposure at default) and M (maturity). The difference between F-IRB and AIRB is that under F-IRB approach banks rely on more supervisory estimates than under A-IRB approach [3]. Besides alternative approaches for capital coverage calculation, classic credit risk management tools such as limit systems, credit scoring procedures, loan assessment procedures, risk diversification rules, etc. are necessary to use to keep credit risk as low as possible. Liquidity risk Liquidity risk is also risk of key importance to commercial banks as failure to properly manage this risk may result in insolvency of the bank. Liquidity risk involves the possibility that earnings or capital will be negatively affected by an institution’s inability to meet its obligations when they come due. Liquidity risk is the risk that the financial institution cannot settle an obligation for full value when it is due (even if it may be able to settle at some unspecified time in the future). Liquidity problems can result in opportunity costs, defaults in other obligations, or costs associated with obtaining the funds from some other source for some period of time [7]. In most cases, liquidity risk is the outcome of other risks such as credit, strategic, reputation, interest rate and counterparty risk. For instance, when important large customer becomes default, bank may have difficulties in meeting its obligations. Additionally, liquidity risk comes in the normal course of business, usually as long-term assets are financed by short-term obligations. Liquidity risk is managed by analysing liquidity gaps (simple and marginal), using cash matching approach by setting limits for absolute or relative liquidity gaps, making projections of future cash flows, scenario testing. Value-at-risk (VaR) techniques using statistical data may be used for these purposes. Market risk Market risk is the risk of adverse deviations in price of financial items (equities, bonds, FX deals, derivatives, etc. Market risk includes currency risk, interest rate risk, equity or debt security price risk etc. market risk may result both in positive and negative effects. In capital charge calculation, only the negative effects are taken into account. Main goal in market risk management is to reliably estimate likely price fluctuations and to take decision whether to take the risk or to reduce it. Limit systems, gap analysis, correlation analysis, instrument sensitivity analysis, market volatility analysis can be used for market risk management. The risk can be reduces by portfolio diversification or hedging using derivative financial instruments (swaps, forwards, options, etc. ). Market risk can be measured by using risk weights or by using value-at-risk approaches. It’s important to note that in order to reach best risk management results, VaR-based approaches should be used in combination with other risk management methods as VaR models rely on certain assumptions, not every time equilibrium between the accuracy and operativity is reached, output on the same data using different VaR models may vary substantially. Operational risk The definition of operational risk varies considerably since the list of factors causing operational risk is incomplete and constantly growing due to increasing complexity of business. Basel Committee on Banking Supervision defines operational risk as the risk of direct or indirect loss resulting from inadequate or failed internal processes, people, and systems, or from external events [1]. Risk may actualise in technical level (IT system or risk measurement system inefficiency) or in organizational level (lack of procedures, non-adequate organization of risk monitoring and reporting) [4]. Basel Committee on Banking Supervision considers operational risk to be of high importance, that’s why Basel II demands capital charge calculation for operational risk. Stress testing of Lithuanian banks in 2002 showed that Lithuanian banks consider that losses from operational risk would make 5% of all the losses [6]. Quantitative Impact Study 3 (QIS 3) calculation shows that operational risk capital charges increase regulatory capital by 5-15% [2]. As it is impossible to name all the risks, it is suggested to determine factors causing operational risk. After that the following algorithm can be used in determining whether to ignore the risk factor, or to take action. After meticulously probing through the Annual the Bangladesh Banks â€Å"Guidelines on Risk based Capital Adequacy (Revised regulatory capital Framework for banks)†, I found that it is a very complex set of instructions and mathematical terms which demands a separate department in the bank for its integration purpose. And the instructions are very hard to understand about the global standard regulatory policy or the whole banking industry. Basel II has been made mandatory for all the scheduled banks in Bangladesh since January 2010. Bank Asia Ltd has been maintaining a healthy CAR ratio all throughout the 2011 fiscal year. The problems in the implementation of the requirements have to be mitigated as soon as possible. The data collected from all the branches and the corporate office should be centralized for further accurate results. One of the most frequent reports related to Basel II is Stress Test. A report of such importance loses value when it is submitted so soon after the previous one because three month’s time is a small window to see material change in the variables. Even the variables are tested with unrealistic shocks keeping other variables constant. There are three types of shocks- minor, moderate and major. A combined shock should be applied to see realistic result of the bank’s sustainability rather than applying an extreme shock with keeping all other things constant. So stress test should be a â€Å"scenario analysis† rather than a â€Å"what if Analysis†. It will become very complex but very realistic than current stress test measure. the Capital Adequacy Ratio (CAR) of Bank Asia reached- 14. 2% on actual capital which is greater than the ratio of 8. 11% of the year ended 2010. The second Basel Accord, Basel II, supplemented the original agreement by setting new minimal capital requirements, again based on risk profiling, but also introducing two new pillars: supervisory review and market discipline. Basel II was very short-lived in relation to its predecessor as it was promulgated during the onset of the global financial crisis. In response to a number of failings in Basel II, which came to light during the crisis, a further modification, Basel III, was initiated in 2010. Conservative Risk Management is the hallmark of the Basel II framework for mobilizing financial stability across banking sectors worldwide (BCBS, 2006). This framework built on the basic premise of capital management as suggested by Basel I in 1988, but provided improved parameters, reflecting a clearer formulation of risks facing the banking sector and a mechanism for protecting banks against risk in a more methodical and scientific manner. The Basel Accord re-engineered the organizational structures and processes of the supervisors and the banking sectors all around the world. The key to the effective and improved risk management under the Accord is its proper implementation (AIF: Disclosure Subcommittee,2004). Accordingly, in order to have effective implementation around the world, co-operation between global supervisors and the respective institutions plays a pivotal role (Global Risk Regulator, 2005). The primary purpose of the Basel Accord is therefore to promulgate the three pillars of Basel II by rationalizing banks’ risk appetite according to their residual resources, thus forming the basis of a sound banking structure. In Bangladesh banks are regulated by the Banking Supervision Department of the State Bank of Bangladesh. It has set-up a road map for the implementation of Basel Accord which attempts to comply with Basel Accord Implementation guidelines issued by the BCBS. With the growth of international banking and the entrance of multinational banks into Bangladesh’s Banking Sector the diversity of the domestic Banking Sector has increased. This has also increased the public availability of banking services matching international standards. These developments have changed the nature of the risks facing the Bangladeshi banking system – risks that the very promulgation of the Basel Accord was intended to address. The multi-layered structure of the Basel Accord and different levels of adoption around the world – creates further confusion. In Pakistan, it was originally intended that the Basel Accord would be implemented in full before December 31st 2009. However, the State Bank of Bangladesh extended the dates for implementation for various special circumstances that the Bangladeshi Banking Sector faces. The fact that Bangladesh’s implementation of the Basel Accord lags behind that of other countries is also significant (see Section 3). There is thus a need to investigate the reasons behind this from a local perspective, over and above the international reasons stemming from the international banking crisis. In this regard research needs to be undertaken focusing upon the following issues: ? Compliance to the timetable introduced by the Supervisory Authorities; ? Problems faced by both the State Bank of Pakistan and individual banks; ? The present and proposed infrastructure available with the Basel Accord for smooth and successful implementation; ? HR capabilities; ? The impact the Basel Accord has upon bank exposures to credit, market and operational risks. 4 This paper will explore various aspects of Basel Accord Implementation in Pakistan, thus clarifying the inability of Pakistani Banks to adopt the advanced techniques in the Accord. Previous studies have looked at the impact of implementation of the Basel Accord in a number of different countries including the United States, Brazil, Switzerland, India, Lebanon and South Africa (Jacobsohn, 2004;Cumming and Nel, 2005). However, no such study has yet been conducted in Pakistan. Further, most of these studies were conducted prior to the introduction of the Second Accord. It is therefore of interest to undertake a fresh study into the implementation of the Basel II Accord in Pakistan, both due to the timing (after Basel II and following the recent financial crisis and the subsequent commencement of Basel III) and due to the unique set of circumstances facing the Pakistan banking sector following its recent expansion. The layout of this paper is as follows. Given the potential impacts on corporate governance, financial analytics, business processes and data management, the implementation of Basel III may well represent the most significant series of steps and challenges in these endeavors. The success of risk management organizations in meeting these challenges will be evidenced by the creation of data-rich environments able to support financial modeling, stress-testing, analytics, and reporting, which in turn will lead to a level of transparency that enables markets to assess risk management profiles and capabilities and, ultimately, capital adequacy. The implementation of both Basel II and Basel III requirements should not be seen only as a regulatory milestone to be addressed on a stand-alone basis within the organization. The key benefits for the overall banking system as well as for each individual bank come from integrating risk management practices with an organization’s day-to-day business and strategy, resulting in better financial health for all. Companies that have most successfully managed their businesses have given the risk function a more central role in the organization. However, this centralized view of risk should not imply that risk management will have a limiting effect on business development; rather, it implies that every decision must take into consideration the risk perspective and integrate it with a new, global performance management view to optimize business opportunities that carry an inherent risk. The road to achieve a more mature risk-management model is a long one. However, our experience shows that successfully implementing a well-defined risk management strategy will increase the likelihood of a well-structured implementation of a Basel Program.

A Characterisc of a Hero essays

A Characterisc of a Hero essays The American Heritage High-school dictionary defines a hero as a man, often of divine ancestry, who is endowed with great courage and strength. Is that what a hero truly is? Does he need only strength and courage? Does a hero not need a mind? Any man can be strong and brave, but dose that mean he is a hero? Nay, a hero must have more. He must be quick-witted and always think with his head and never his fear. A man must be clever (mentally bright, superficially skillful or witty) to be considered a hero. A hero has many characteristics but one of the most important is to be able to think his way out of trouble. Not that a hero shouldnt be physically strong, thats always good, but sometimes you cant fight your way out things without getting yourself killed. Odysseus, king of Ithaca, is a very clever man. He shows that quality time and again in The Odyssey. For example, the Trojan War. The Greeks fought with the Trojans for ten years without success. They had to get over the wall around Troy. No one had any ideas. But then Odysseus and his clever mind thought of a way to trick the Trojans. He ordered the Greeks to build a huge wooden horse in which they could hide. Odysseus figured that when the Trojans wake up to the horse and no Greeks in sight that theyd take the horse as a peace offering and take it inside the city. The Trojans did as Odysseus had guessed and after ten long years the war with Troy was finally over. Another example of Odysseus cleverness is when he met a giant, one-eyed monster named Polyphemus. Odysseus and his men went into this giants cave and stayed to meet him. What they saw when Polyphemus came home was a huge surprise. Polyphemus liked humans, yes he did. He liked them as dinner, lunch, and breakfast. Odysseus was losing his men rapidly while they were trapped in the cave. He had to do something. Suddenly an idea popped ...

VII Hazardous Chemicals Multiple choice and two essay questions

VII Hazardous Chemicals Multiple choice and two questions - Essay Example In case the material does not drip but remains at the immediate site of combustion, they thermally decompose and ignites spreading the fire (Meyer, 2010). When polymeric material burn, they decompose producing a considerable amount of gases and vapour. As the decomposition process continues, the gas might migrate and accumulate elsewhere especially near the ceiling. Here, they mix with atmospheric air then ignite causing the flame to spread further. Through a phenomenon called flashover, decomposition of a polymer can be caused by heat conducted, or radiated from another point. Combustible gases produced by thermal decomposition ignites and spread the fire to other room or sections. At flashover, safe exit from a room is not possible, and the living condition of a room are usually unbearable with the rooms temperatures ranging from 600 - 800-degree centigrade (Meyer, 2010). In addition, the vapour and gases produced by polymeric fire are dangerous and fatal. They include nitrogenous, sulfurous gases. A high concentration of carbon monoxide is also produced. If in an enclosed area, the level of these gases soar to a dangerous level within few minutes. The fire may affect areas far away the source. The hot gases and vapour produced can spread by convection through ventilation systems and other openings and end up affecting people elsewhere in the building. Polymeric fire produces a considerable amount of soot that when inhaled draws toxic gases into the bronchi and lungs (Meyer, 2010). Of all the three gases produced, Carbon Monoxide(CO) can be the most dangerous to the Environment, Health and Safety or the Fire Services professional responding to the scene. Once inhaled, the gas combines with the haemoglobin in the blood circulation system and converts into carboxyhemoglobin that causes an ineffective delivery of oxygen to the body tissues. At concentration levels of

Technology in Air Pollution Reduction Research Paper

Technology in Air Pollution Reduction - Research Paper Example The paper "Technology in Air Pollution Reduction" discovers Technology in Air Pollution Reduction. Particulate matter can also be removed using an Electrostatic Air Cleaner (or Electrostatic Precipitator). An Electrostatic Air Cleaner is used in industries such as pulp mills, oil & fired utilities and oil refineries. Putantunda suggests that this air pollution control method uses the energy generated by an induced electrostatic charge, to collect particulates from any flowing gas. The filtration devices are efficient and effective in trapping particles, like dust and smoke, from a stream of gas. The mechanism of Electrostatic Precipitators (ESPs) involves: gas ionization, electric charging of the gas particles, transportation of the particles to the collection surface of the ESP neutralization of the charge of the gas particles and removal of dust particles from the collecting surface. The ESP is advantageous because it is can be modified during manufacture so that it has a near perf ect efficiency of collecting particulates. The electrostatic precipitator can also work automatically when fitted with control devices. An important consideration when determining whether to engage in technology is cost. The ESP has a very low maintenance cost demands. However, the capital required to apply this technology is substantial. This technology is only restricted to trapping particulates only. It is impossible to trap air pollutants like the sulfur oxides using ESP. Sulfur oxide (SO2) is removed.... The incoming exhaust gas is sprayed with limestone generating carbon dioxide and solid calcium sulfate (Kumar, n.d.). The lime scrubber method is also used to remove sulfur oxide where lime instead of limestone is used instead. The scrubbing liquid is usually water. The particulate collection process can be follows four steps: transportation of the particles, collision of the particles with water droplets due to surface tension and the removal of water droplets from the particles. Wet scrubber technique is useful in trapping air pollutants in the form of solids and gases. It is however expensive to maintain because it easily corrodes. Another demerit of using this technology is that, it has a waste system consisting of the scrubbing liquid laden with the pollutants. After it has been used, this liquid poses a danger of water pollution if not properly disposed. Compared to the ESP technology, the wet scrubber uses more energy in terms of electricity. This is because energy is used in the flowing scrubbing liquid that traps air pollutants. However, for the ESP, the only energy applied is for the particulates being collected. Catalytic converters The Advanced Clean Air Technologies (ACAT) unveiled an advanced catalytic converter that can reduce emissions drastically; testing parameters depict a high efficiency in reducing of particulate matter released to the atmosphere and a subsequent air pollution reduction. Catalytic converters involve unsophisticated technology for the appropriate tuning of vehicle engines to control vehicle emissions. For catalytic converters to function properly, they require platinum and palladium catalysts which are attached to a ceramic material. This technology is very effective in controlling car emission as it provides a high

Police Officer Sophmore Project Essay Example for Free

Police Officer Sophmore Project Essay Introduction The name of my job is police officers. Police Officer are assigned to an area to enforce laws, regulate traffic, control crowds, prevent crime , and arrest violators. They fall under the Protective Service cluster. I have chosen this career because I always wanted to know more about it. I expect to learn how many hours they work a day and how many years of college do you need to become a police. What they Do My job will provide public safety by maintaining order by responding to emergencies call, protecting people and property and promoting a good community relations. My duty will be to monitor, note, report, and investigate suspicious person and situation. My responsibilities are to identify, persue, and arrest suspects and perpetrators of criminal act. Education and Common College Majors To become a police officer you at least need a associate degree or go train in a vocational school. Your majors in college will have to be Criminal Justice/Police Science. It focuses on the duties of police officers and public security officers on how they control crime, and on investigation activities. Wages and Outlook Its Average annual wage in California was $78,700 with most people making between $51,550 and $110,550. In 2008 this occupation employed about 72,200 people in California. Its prediction in 2018 that there will be 77,400 employed. Things they Need to Know You will have to knowledge its equipment , policies, procedures, and strategies to promote effective local, state, or national security operations for the protection of the people. Also: Law and Government Psychology Customer and Personal Service Similar Occupation A similar occupation is a sheriff. They patrol specific areas to detect law violators and make arrest. Patrol and guard courthouses, grand jury rooms, or are assigned to an area to provide security, enforce laws, and to maintain order. In Addition I found out that there are going to have 520 openings for people who want to be a Police Officer and 1,870 of replacement so in total their will be 2,390 opening spots. I will tell them that this job is really good and that people who work in this occupation generally prize achievements. Conclusion I learn that there are 72,200 police officers working in California and by the year 2018 their will be 77,400 police officers. Yes I do think this is a good career for me because I will be getting good money and I will like what I’m doing. I will like to know their benefits just in case anything happens.

A Visit to Italy :: Descriptive Essay Examples, Rome, Italy

A Visit to Italy    The capital city of Italy is a very extraordinary place to visit. The population of Rome is well over two-million. The people there are very friendly and are extremely proud of their country. Rome is a beautiful bustling city that has a moderate cli mate. The temperature usually stays around eighty degrees. The main way of transportation is by bus.    The side walk cafes are very popular in Rome. The cafes were always populated with happy Italians and a few curious tourists. The most preferred cafe was the Cafe S. Petro. this cafe was in perfect walking distance from the Vatican city. The Vatica n city is were the pope lives. The main meals served at the cafes varied from pizza to tortillini. The pizzas were not exactly like Pizza Hut's pizza. They were crispy thin with very few toppings available. Most pizzas came with cheese, pepperoni and a watery tomato sauce. The tortillini had soft, medium-length, hollow noodles with more watery tomato sauce. Another favorite at the cafe was the lasagna which was unbelievably delicious. After having tasted the pizzas and the tortillini, I was not exp ecting the lasagna to be so tasty. The lasagna was packed full of hot meat, zesty cheese, and a tangy tomato sauce. It was not out of the ordinary to see Italians, instead of eating at the cafe, talking with their friends and sipping on hot cappucino.    The streets in Rome were always swamped with motor scooters, three-wheeled cars, and buses. Although, the main way of transportation are buses, Italians also scooted around on their motor scooters. The scooters were more convenient because the scoote rs could easily slip through traffic jams. The parking was very hazardous for people because some cars would be blocked in by a small car that was parked vertical between two horizontally parked cars. Car accidents were very common in Rome. When two pe ople had a car accident, they would just wave or yell at each other and drive hurriedly away. The police were not notified and there was no question of who would pay for the damages.    The worst part about Rome were the buses. These buses were jammed tight with people who were sweaty and excessively vulgar.

Strategy of Apple Brand

INTERNATIONAL BUSINESS STRATEGY OF PARENT COMPANY When a firm decides to go international with their business they must face many competitive decisions. Two of the most important decisions a company will face are the pressures for cost reduction and pressures for local responsiveness. The pressure of cost reduction forces a firm to lower their value of the cost of creation. Firms can outsource to places where costs of their products are much cheaper or they can mass-produce a standardized product in one location. A firm must have the feeling of local representation.Every country has its own way of life. If a company does not adhere to each country’s differences in traditional business practices, distribution channels, and the demands from the host government, there will be no reason going international. Customers in different countries all hold to their own ways of doings things. It is important for a multinational firm to become aware of all traditions and rules in the countr ies of entry. There are four different strategies an international corporation can choose from. They are global standardization, localization, transnational and international.Each strategy leads to the deciding factor that firms will use to determine the amount of pressures for cost reduction and local responsiveness. Global standardization is used to increase profitability by obtaining cost reductions through economies of scale. A firm whom wants to pursue a low-cost strategy on a global scale will normally offer a product that can be mass-produced at a low cost. A localization strategy offers a product that is custom to the host country. The product satisfies the countries preferences and taste. The third strategy is transnational.It is used when the firm is faced with strong pressures for both reduction and localization. This strategy is hardly used when competitors are in the market because it is hard for a firm to please the local tastes and preferences of its customers at a lo w cost. The last strategy is international. This strategy is used when firms are confronted with low pressures for both cost reductions and local responsiveness. This strategy is scarcely used when competition enters the market. With each strategy, business can find which one works best for their organization. Also Case Study will describe why Apple Inc. is a very successful company.Companies will decide to go international depending on the country it chooses to enter and the amount of profit it can earn. In corporate strategy there are two types of diversification, linked and constrained. â€Å"Companies using linked diversification, enter new businesses when it relates in some way to another business they are already in but it does not necessarily have any connection to their other businesses. If they are using constrained diversification, they only enter a new business if it is based on their core resources or competencies.Companies based on linked diversification have little coherence to their overall corporate strategy, while companies using constrained diversification tend to be more focused. Constrained diversification allows companies to maximize the effect of their resources because they are shared (100). † Apple is a personal computer, hardware and software company, inhere ntly leading to use constrained diversification because they utilize their competition and they share resources between businesses. For example iPods, iPads, iPhones, MacBooks and Apple TVs all run on the same operating system.This intends customers to link their music with laptops, TVs, cell phones and other Apple products. This allows for a more appealing product to the customer. Apple is saving money by sharing resources throughout their multinational business. The product of Apple has such a distinct business that competitors have not been able to match their techniques. Each electronic device is unique, allowing for them to be used anywhere in the world and each is different from any of its competitors. Apple’s goal for a mobile business is to be fundamentally innovated and differentiable.It does not concentrate on the size of its industry because it maintains strong profit margins that have high percentages in the industry’s profit share. Apple does not focus on the quantity of its products but the quality and relevance. â€Å". Peter Drucker wrote that â€Å"What makes the future happen is always a business’s embodiment of an idea of a different economy, a different technology, a different society. It need not be a big idea; but it must be one that differs from the norm of today†. This means defining what the devices are (e. . , a pocket-sized device, or a tablet-sized device), and what they do. Apple must do this through constant innovation. † Apple has secured itself as the industry innovator and a position of strength by constantly defining what their products are and what their products do. Since Apple is continuously redefining the industry, they do not need an overwhelming market share. Apple can dominate the market through their intelligence of inventing new electronics and the respect they have for their customers.Apple’s basic business model is to sell hardware; every other product, iTunes, Apps, operat ing systems, is to make their hardware more valuable. The main goal of this strategy is to maximize the value of the firm. Customers are willing to pay high prices to obtain products of high value and high quality. Within an international business setting, firms are competing to receive the highest profit against one another. Apple is competing at a differentiation strategy. They increase the attractiveness of their products, making the products stand out so customers will purchase their products over another.Apple’s strategic positioning choice is to have high valued electronics that all customers want. Apple products are unique compared to the rest of the world. This allows Apple to charge a higher price. Many people are willing to buy Apple products because they are well produced, have a high quality and are known as a luxury item to the customers of Apple. Apple’s main goal is to maximize all values for the firm. This includes increasing shareholder value in a lega l, ethical and a socially responsible manner. Managers can increase the profitability of a firm by pursuing strategies that lower costs or by pursuing strategies that add value to the firm’s products. Managers can also increase the rate at which the firm’s profits grow over time by pursuing strategies to sell more products in existing markets or by pursuing strategies to enter new markets†. Apple is always looking at new ways to increase its value and shareholder profit. Our main strategy to increase profit is to add value, raise prices and to enter new markets.