Libor Scandal 2014

Question: Consider the libor scandal 2014 which many banks of the uk banks were involved in .explore the causes of this scandal and evaluate the impact? Answer: Introduction: Libor stands for the London Interbank Offered Rate. It is the rate at which banks can borrow funds from each other. Previously it was known as BBA Libor (for British Bankers Association). Libor is generally defined as a benchmark interest rate through which banks can lend unsecured funds to each other. This rate is also published by the British Bankers Association. Libor is calculated against ten different currencies and fifteen different maturities that is why Libor is considered as a global benchmark to lend short term interest rates. Eighteen banks participated for the US Dollar Libor. The Libor rate being a global benchmark, it is used for giving mortgages, loans and other financial products traded around the world. Therefore an attempt was made to make the current market in favor of labor rate. That led to increase in the profits and it made an advantage over others. The labor Scandal arose with the fact that banks started getting aware about lending loans to one another and this cause led to increasing Libor rate. The higher the rate that they were charged to borrow, the more likely a bank was to collapse. Libor rate affected the global borrowing because many banks used Libor as a base rate against interest rates on corporate and consumer loans. According to US Commodities Future Trading Commission, hundreds of trillions of dollars were linked to Libor which included auto and home loans. It was also important to note that banks involved with securities business were more likely to fail. From facts it was seen that 5000 banks failed in the 1920s.During the Great Depression more than 25% banks failed and even some were closed down. Banks involved in the LIBOR Scandal: The American banks those were included as the panel for fixing US dollars was The Bank of America, JP Morgan Chase and Citibank, NA. Apart from this 16 other non- US banks were involved in the US dollar fixing in London. These banks are: HSBC, Bank of Tokyo-Mitsubishi UFJ Ltd, and of Nova Scotia, BNP Paribas, Barclays, Deutsche Bank, Credit Agricole CIB, Credit Suisse, Rabobank, Royal bank of Canada, Lloyds TSB Bank plc, UBS AG, The Royal bank of Scotland group, The Norinchukin Bank, Sumitomo Mitsui Banking Corporation (Hou, 2015). Causes Of Libor Scandal: The LIBOR Scandal was brought in by the GFC so that Barclays could maintain its creditworthiness in the market. It was also found out that the manipulation was not just restricted to the managers and traders in Barclays, but also catered to other banks in US as well over the years. The LIBOR scandal was caused by the regulators and rogue employees who even pose a stop to the government as well. This scandal was considered as a form of price fixing. The answer to the cause of this issue was suspecticious because of the presence of political parties and issues. There were no standard operating procedures and they did not abide by the law (https://www.clpuk.co.uk, 2015). Controversy of the Libor Scandal: There was a controversy with this scandal that manipulations was done by Barclays in the cost submissions that lead to downsizing of their financial health and therefore they could not make any profit out of it. It was also pointed out that traders were placed in between with direct communication and this made the bankers to be affected. This brought an insight by the traders to set the labor rates as per convenience (Claudio, 2014). Impact of the Libor Scandal: LIBOR had following impact on the financings in the US. Libor decides on the rate of interest that can be adjusted along with residential mortgages used such as collateral for derivative securities which are sold both in the private and public market places. It also sets the rate of interest for the next period by which floating bonds can be sold within or outside US. The outstanding bonds are necessarily to be redeemed as and when the international financings are issued. All the proceedings of the bonds are directed of the issuer in Guaranteed Investment Contracts (GICs). This was a part of the investment offered by financial service institutions. There were two main forms of manipulation that were discovered. Firstly traders were acknowledged to ask Barclays employees to change their rates. Secondly initiatives were taken to improve the fiscal health manipulating the rates downward. It was projected that the new rate calculation will be based on increasing rates of interest rate in the market. It was also proposed to make the rates transparent in the market for international use (LBC, 2015). Penalties for the Libor Scandal: Certain amount of fine was imposed against manipulation of the Libor rates. Barclays Bank was fined $200 million by the Commodity Futures trading Commission, the United States Department of Justice fined $160 million and 59.5 Euros by the Financial Services Authority. During the global financial crisis of 2007-2012, the interest rates were made lower (When the Bollinger bankers' bubbles burst, 2013). Regulation and Sanctions made by the government on Libor Scandal: There was a need of labor rate manipulation that was reported by the Wall Street Journal in 2011. It was necessary for the government to make necessary changes in form of amendments to the Parliament or Banking Reform Bill. The government wanted to control the credibility of LIBOR by officially replacing British Banking Association as operational administrator and this also restore the reputation of LIBOR in market (Horton, 2012). Process and purpose of how banks set their LIBOR rates: The process of fixing or setting the LIBOR rates is transparent and simple according to the BBA LIBOR 2013. Certain questions were raised in the market according to which the business was to be conducted. It was also necessary to specify the rate at which funds could be borrowed which is prior to the market size as well. All the contribution from the banks involved are taken into the account for producing the final Libor rate in the market within each currency. These final official rates are then published by Thomson Reutors who is considered as the designated distributor of these rates. After that it is made available to thousands of banks around the world (Voxeu.org, 2015). The official LIBOR rates are used by the banks itself as benchmarks not only for the customers but it also helps in the settlement of contracts. For example maturing interest rate contracts on derivatives exchanges. Therefore Libor rate is considered as an integral element of the international financial system of world. The next step is to make avail these rates to be monitored and examined by the Foreign Exchange and Money Market Committee. The sub committees play a crucial role in determining and solving necessary issues related to the disciplinary actions and LIBOR submission process as well. It was determined that there was a transparent calculation mechanism that was widely used and considered as strength for over-the-counter derivatives. Role of Libor in the Commercial Sector: The role played by the LIBOR rate was mainly to serve as a benchmark rate for financing of loans and funds across the world. The rate was used as a debt instrument to the corporate bonds and government, credit cards, loans given to the students, and also as a derivative to other financial products. It also helps to calculate the current state of the banking system that is being operated in the world (Yeung, 2013). Impact of LIBOR on its own business and consumers: Libor rate became a focus of significance in determining the credit policies. It poses a level of confidence that banks have on one another. The rate at which banks charge on loans and mortgages depends on the ability at which banks can raise money as well. If there is a certain increase in the percentage of pounds it can add to hundreds of households. If banks can borrow more cheaply then there is no need to offer good returns. For example if the base rate was 2 percent then Libor would be 2.1 percent (BBC News, 2013). It is very essential for a consumer to know which rates are tied up with Libor. Consumers must know the original terms and conditions for it. The Libor rate also affected the financial markets as well. It was necessary for the banks to know to know about the actual borrowing and lending rates. The central bank should have monitored the rates accordingly as Libor does. The new contractors wanted a transaction based benchmark for the Libor mechanism to work along with the existing contractors as well. Libor was now considered as an instrument to check how healthy a bank is and it also depicts which banks are deemed with poor financial health (Gatarek, Bachert and Maksymiuk, 2006). Conclusion: It can be concluded that recommendations needed to be given for improving the rates imposed by the Libor rate that can be implemented in UK in the near future. The Libor Scandal controversy reduced the circumstances of the market activity and this led to swapping of index overnight. This helped banks to make short term transactions. It was also necessary to ensure a more reliable benchmarking system that would enhance the funding costs of the banks. This also enabled to provide a legal aspect to make it more transparent and open to the financial industry. References BBC News, (2013).Timeline: Libor-fixing scandal. [online] Available at: https://www.bbc.com/news/business-18671255 [Accessed 27 Feb. 2015]. Council on Foreign Relations, (2015).Understanding the Libor Scandal. [online] Available at: https://www.cfr.org/united-kingdom/understanding-libor-scandal/p28729 [Accessed 27 Feb. 2015]. Gatarek, D., Bachert, P. and Maksymiuk, R. (2006).The LIBOR market model in practice. Chichester, England: John Wiley Sons. Global Research, (2015).Two Years after the Libor Scandal, Banks Get Token Fines for Rigging Global Foreign Exchange Rates. [online] Available at: https://www.globalresearch.ca/banks-get-token-fines-for-rigging-global-foreign-exchange-rates/5413850 [Accessed 27 Feb. 2015]. Hou, D. (2015).LIBOR: Origins, Economics, Crisis, Scandal, and Reform. 1st ed. [ebook] Available at: https://www.newyorkfed.org/research/staff_reports/sr667.pdf [Accessed 27 Feb. 2015]. Hou, D. and Skeie, D. (n.d.). LIBOR: Origins, Economics, Crisis, Scandal, and Reform.SSRN Journal. https://www.clpuk.co.uk, F. (2015).Interest Rate Swaps - Interest Rate, LIBOR Rates, Base Rates, Euribor Rates, Gilt Rates, Historic Rates and Trends. [online] Swap-rates.com. Available at: https://www.swap-rates.com/BBALiborrates.html [Accessed 27 Feb. 2015]. Insider, B. (2012).The LIBOR Scandal Explained in One Simple Infographic - DailyFinance. [online] DailyFinance.com. Available at: https://www.dailyfinance.com/2012/07/11/the-libor-scandal-explained-in-one-simple-infographic/ [Accessed 27 Feb. 2015]. Karacadag, C., Sundararajan, V. and Elliott, J. (2003).Managing risks in financial market development. [Washington, D.C.]: International Monetary Fund, Monetary and Financial Systems Dept. Kawai, M. and Prasad, E. (2011).Financial market regulation and reforms in emerging markets. Washington, D.C.: Brookings Institution Press. Kelley, M. (2012).INFOGRAPHIC: The LIBOR Scandal Explained. [online] Business Insider. Available at: https://www.businessinsider.com/infographic-the-libor-scandal-explained-2012-7?IR=T [Accessed 27 Feb. 2015]. Konchar, S. (2014).The 2012 LIBOR Scandal: an Analysis of the Lack of Institutional Oversight and Incentives to Deter Manipulation of the World's Most "Important Number". Lawdeb.us, (2013)."The Libor Scandal, its Implications, and Effect on the Corporate Trust Industry" by Romano I. Peluso. [online] Available at: https://www.lawdeb.us/our-history/blog/2013/January/Libor%20by%20Romano%20I%20Peluso [Accessed 27 Feb. 2015]. LBC, (2015).What Is The Barclays Libor Rigging Scandal. [online] Available at: https://www.lbc.co.uk/the-barclays-libor-rigging-scandal-explained-56812 [Accessed 27 Feb. 2015]. Taylor, J. and Williams, J. (2008).A black swan in the money market. Cambridge, Mass.: National Bureau of Economic Research. The LIBOR Scandal. (2015). 1st ed. [ebook] Available at: https://www.bu.edu/rbfl/files/2013/09/The-LIBOR-Scandal.pdf [Accessed 27 Feb. 2015]. Voxeu.org, (2015).The LIBOR scandal and reform | VOX, CEPRs Policy Portal. [online] Available at: https://www.voxeu.org/article/libor-scandal-and-reform [Accessed 27 Feb. 2015]. Yeung, T. (2013).From LIBOR to HIBOR. Hong Kong: Centre for Financial Regulation and Economic Development, The Chinese University of Hong Kong. Claudio, L. (2014). From Scandalous Politics to Public Scandal: Corruption, Media, and the Collapse of the Estrada Regime in the Philippines.Asian Politics Policy, 6(4), pp.539-554. Horton, R. (2012). Offline: The scandal of device regulation in the UK.The Lancet, 379(9812), p.204. When the Bollinger bankers' bubbles burst. (2013).Strategic Direction, 29(2), pp.13-16.

Create a Sample Essay

Create a Sample EssayA sample essay report can come in many different forms. Depending on the type of work that you're doing, it could be a full-length report, a research paper, or even a report on the research you have completed. There are many reasons why you may want to create a sample essay.Perhaps you have been looking for a little extra help and are interested in creating a report for an employer. There are times when you don't know the proper grammar or writing style and would really like someone to look over your work and provide you with feedback on the language. The more input you get from the people involved in the project, the better the final product will turn out.Another main reason that you may want to do a sample is for fun. When you have something that you are proud of and are excited about, it shows confidence. If you feel good about the things that you have created, it will really make others appreciate you.If you think you are capable of finishing an entire report , but haven't yet learned how to properly structure it, then maybe you would like to have a professional look over it. If you have an important presentation that you need to give, having it ready can mean the difference between your job being successful or not.A sample essay that has been completed is a great way to make sure you create something that will show off your creativity. As long as you get the grammar and writing style right, it is a great way to make sure you will be able to write something memorable. By making sure that the reader feels like they know who you are and what you are trying to say, it will give them a better idea of what to expect from your work.If you do not have the time to make a full-length report, then maybe you would like to have a short report. If you have an important presentation to give at work, or if you need a quick one to complete, the short report will show that you can write quickly and also will save you time because it will not take as long to finish.Creating a sample essay can help you learn how to write effectively and provides a chance to try out different styles and different formats. By having a ready-made essay, you are helping yourself by taking a step toward knowing how to write.

Girl Before the Mirror free essay sample

The painting by Pablo Picasso â€Å"Girl Before the Mirror† was the painting that caught my attention because at first glance I notice a woman adjusting the mirror as she is looking at her reflection; this is something I do every day. I gazed longer at the painting and the woman’s appearance seems to be younger in the mirror, perhaps she is reflecting on her past (youth). The dialogue taking place in this story is with herself as she is reflecting on the many years that have passed and how her appearance has changed. Her pregnancy has captured her attention to the changes in her life. The painting reflects the past, present, and future. The different colors, lines, and shapes tell a story about her development. The colors in the mirror are deep dark in color representing a faint memory of what once was. Looking at herself in the mirror gives her a sense of relief yet pain. We will write a custom essay sample on Girl Before the Mirror or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page She can still see a little of her youth in the mirror, which easies some of her distress as she is aging knowing one day that the memories of her youth will soon fade. The long strokes of lines and curves in the mirror by her face and around her head display a covering a sense of innocence; before she has known a man intimately. The lines in the lower area of her body in the mirror shows it is still in development as the lines are arched up and not down in a drooping manner as with age. Her body has not set firmly in position so it appears altered in the mirror just like a teenager starting puberty; one breast grows larger than the other. In her conversation with herself she knows her innocence has vanished, and a development is changing her life once again; the baby growing within her. The circles remind me of life. There is a beginning and an ending. The circles in this painting are in locations of the body that develop at a much faster pace than the rest of the body. The breast is developing in the mirror as the breast of the women looking at herself has full bulging breast because of her pregnancy. The circle in the stomach area in the mirror is low; the uterus, and it is still n the development stage. The circle in the stomach area of the women looking at herself in the mirror is fully developed. The black thick circle is completed meaning the uterus is fully developed and the green color almost filling the inside of the thick black circle is the womb. It is almost time to bring forth the baby into the world and life begins for the baby and the women looking at herself in the mirror. The circle on the elbow symbolizes the joints of the bones and is completely developed and aging. In pregnancy the baby will draw the calcium from the mother’s bones making the joints age and hurt. Her circle eyes in the mirror not fully develop like a baby’s ultrasound picture shows her childlike innocence. When a child looks at you unsure of something, his or her eyes become round in curiosity. The women looking at herself is thinking â€Å"where is my youth. I do not remember it fading away and I am starting a new chapter in my life and as I reflect on my new life with child I have to cope with my youth fading away. Thinking to herself further will I remember my past, as she looks at herself in the mirror; seeing a dim fraction of her youth. I believe this piece of art symbolize â€Å"reflection. † The mirror is the object of focus; at some point in life one looks back at the past whether it is in thought, pictures, or video. The days go by so fast and in the everyday activity of life that time becomes precious as it is very limited. If one does not stop to reflect on it (life) once in a while life will just pass them by like a shadow from the side of your eye that quickly disappears when you try to focus upon it. The very purpose of the painting may be to stop and reflect on the past; where you have been or accomplished in your life, and where you may see yourself in the years to come. The artist drew this painting to express his thoughts on what he was thinking at the time. The mirror is a symbolism object that the artist used to allow the viewer to relate and interpret his thoughts. The artist must have been aging at the time he drew the picture and his thoughts reflected his emotions. I believe he used a woman because women are emotional and symbolizes life. The women’s body produces life and before life can begin it has to develop. The baby develops in the womb and at the right time the baby is born and life starts. In time life changes from baby to toddler, adolescence, and adult, and one must take time to reflect on it before it is gone. In concluding the mirror represents reflection of what you see and what was and perhaps what will come; age. If you do not take time to reflect on yourself life will pass by just like a circle there is a beginning and an ending. The beginning of the circle is the start (birth) and as life develops the ending becomes closer to the beginning and once it touches life is complete. There will be no time left to reflect on life as it has passed by. The painting does not just represent females but males too. The painting is about life and reflecting on oneself before time runs out. There is a time for birth and a time to give birth but people in time will pass away. My first emotion when viewing the painting was time. One cannot buy time or stop time it keeps going despite of what is going on in it.

International Business in United Arab Emirates

International Business in United Arab Emirates Country Analysis The United Arab Emirates is a federal republic consisting of seven states referred to as emirates. Geographically, the United Arab Emirates is located on the south eastern part of the greater Arabian Peninsula which is itself found in the South Western part of the Asian continent (the gulf of Persia).Advertising We will write a custom report sample on International Business in United Arab Emirates specifically for you for only $16.05 $11/page Learn More UAE neighbors the Islamic republic of Oman and Saudi Arabia. The seven emirates making up the entire state are Dubai, Ajman, Umm al-Quwain, Abu Dhabi, Sharjah, Fujairah and Ras al Khaimah. The largest of the emirate cities is Dubai; the second largest city Abu Dhabi, however is the one that doubles up as the capital of the UAE because it is the nerve centre of all industrial, political as well as cultural activities. Political System The constitution that was enacted in the year 1971 provides the basis by which the political affairs of the UAE are run. This document contains a number of inter twinned bodies of government.. The form of politics in practice can be said to be a compromise of the various aspects seen in a federal system, a monarchy and a presidential system. This is because all the seven emirates are absolute monarchies and partially independent from the central federal government, the president however is the head of state and the prime minister the head of government with authority over the country’s foreign policy, Emirates security and national defense. The central government is made up of the traditional arms of government that is, the executive arm consisting of the president his deputy and the prime minister with the entire cabinet; the legislative arm that makes laws as well as the judicial arm that interprets the laws. The federal supreme council, which is made up of emirs (representatives) from each of the seven emirates is tasked with the responsibility of electing the president and the entire cabinet including judges of the Supreme Court. The representative (emir) elected from Abu Dhabi the state capital, automatically holds the position of president whereas the emir elected from Dubai the largest city becomes the official premier. The degree of influence of all the emirates conclusively can be seen in the particular position they hold within the federal government and in as much as each of them is fairly autonomous from the rest, they are each allocated a proportion of revenue from the national budget.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The Economy Being a member of the United Nations Organization (UN), World Trade Organization WTO), the Arab League and the Organization of Petroleum Exporting Countries (OPEC); The United Arab Emirates has the seventh largest reserves of petroleum globally. Its econo my is arguably the most comprehensively developed in the entire Middle East. According to latest rankings provided by the International Monetary Fund (IMF), UAE has an impressive Gross Domestic Product (per capita) with its nominal GDP per capita standing at $ 46, 584. Its Human Development index is 35th internationally and is part of the reason as to why it has been classified as a high income economy (Ball et al 2008, p 150) The CIA’s world fact book places the country’s per capita GDP at number 3 in the Middle East coming next to Qatar and Kuwait; and number 14 universally. Petroleum products export (oil and natural gas) are a significant contributor to its national GDP. Other factors that have however made the economy to boom are its expansive manufacturing industry, an established tourism and service sector and most of all, its building and construction prowess in real estate business. Infrastructure The development in the country’s infrastructure has witne ssed a tremendous revolution with the setting up of magnificent structures the world has ever known. The Burj Khalifa (standing at 0.8Km) is now the tallest building on earth and it is found in the UAE, the Dubai World Central International Airport shall also become the most expensive airport ever constructed in the universe when its construction finally concludes. Other magnificent real estate properties in the country include the Palm Island which is a man made island (the largest ever artificial island) in the world, the artificial archipelago and the world’s largest shopping mall (The Dubai Mall). Such lucrative infrastructure makes the country appealing for investments in real estate. As part of its uniform economic foreign policy, local influence has to be felt in all businesses enterprises in the UAE and this explains the existence of a common standard requiring that all businesses except for the ones classified in the free trade zones in the country have no less than 51% shareholding being local. This is a clear strategy that is aimed at ensuring the locals (Emiratis) are in the lead towards economic empowerment (Balasubramanyam 1985, p. 159 ). Cultural Practices UAE has largely become multi cultural in recent years. Its cultural mix has however been gradually domineered and centered around the Islamic faith. In this cosmopolitan set up, Muslim culture is largely seen in the way the residents have to assemble everyday five times to pray from the mosques that are visible in the entire country. The country’s music, attire, cuisine and architecture are purely Arabic with the Eid al Fitr and Ramadan being the common Islamic holidays.Advertising We will write a custom report sample on International Business in United Arab Emirates specifically for you for only $16.05 $11/page Learn More The non interference stance and the liberalism seen in the United Arab Emirates has contributed to economic progress, it is common to see Hindu temples as well as churches constructed alongside mosques to demonstrate the level of religious tolerance in this country. This has further increased the number of visits by tourists and thus enhanced the hotel industry. Investment in Real Estate An investment in Hotel Real Estate would be the most strategic in the United Arab Emirates, this is because the country’s infrastructure is extra-ordinarily established. The infrastructural development alone is responsible for close to thirty seven percent of all project value constructions. The seven Emirates have simultaneously realized that there is a future in the real estate sector with such big investments in the entertainment, leisure and generally tourism. The central government therefore provides incentives to both local and international commercial developers to bring in their investments in this sector. The current president of the UAE Sheikh Khalifa bin Zayed has moved in to entice development in real estate in especially the northern emirates by apportioning an amount of 16 Billion Dirham (about 4 Billion Dollars) for the expansion of infrastructure in these regions. This money is expected to among other things open up the road network and establish new housing schemes both residential and commercial premises in these areas considered to be having a deficit of such facilities. The federal (local) governments have also been adequately funded and provided with sufficient logistical inputs to help them provide the necessary public utilities that will attract real estate investment in their respective regions. Electricity and water has been provided as part of the infrastructure by the local Emirates to attract investments in these regions. The United Arab Emirates being basically a desert country utilizes 100% thermal energy as opposed to hydro electricity which is unheard of and generally unreliable depending on surface run off. Plans have also been instituted by the central government to augment this energy source with nuclear sources seen as most efficient and highly effective. Communication has also been greatly enhanced in not only the major emirates, but also other upcoming centers to make the areas attractive to invest. Real estate investment in the UAE has therefore been increasingly enhanced by the foregoing factors and shows tremendous ability to grow and multiply its market value. The long run results are not only desirable but also possess an enormous avenue for resale due to the appreciation in the value of land and buildings occasioned by adequate infrastructure.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More External investors in real estate in the UAE are able to obtain financing from the developed network of banks in the country. Real estate departments are also available in the various emirates. Land reclamation is key because the entire country is in the Arabian Desert and therefore specific strategies must be put up to reclaim desert land and make it attractive for settlement and commercialization. This has however been made easier by the federal electricity and water authorities that are tasked with ensuring that these resources are readily available using the cheapest means possible. Entry Strategy Since every country in the world is currently striving to be a regional force and play an important role in international business activities, particular legislations have to be put in place in order to control and accurately measure the degree of foreign direct investments as well as local investments. The established rules regarding the transfer of foreign capital in the United Arab Emirates is meant to enhance the ease of capital flight and ensure a much more free flow of ideas and money while at the same time ensuring the protection of the property owned by foreign investors. Investors thus feel safer and secure under this frame work as it prescribes a number of legally accepted forms of property ownership and outlines the various courses of action that may be available in law for an aggrieved investor. The laws that deal with a number of business activities including the formation and ownership of business organizations may vary slightly from one Emirate to another because of the initial point mentioned about their autonomy. Every individual Emirate has its own established standard of creating wealth and revenues. The central government has however tried to formulate a blanket law that shall act as a common standard. In the establishment of this law, a compromise position has been struck between the sovereignty and autonomy of the individual Emirates and the demands of progress and economic well being advanced by the central government. In the creation of this foreign investments law however, it was a unanimous agreement by all the federal Emirates that the welfare and economic well being of each and every individual Emirati is the bottom line. While they all realized the central need to make the UAE a one stop shop and a global reference point for any form of international investment, they upheld the significance of welfare and the progress of the nation. UAE has an investment legislation that makes it mandatory for any form of direct foreign investment in the country to be having a 50 plus 1 majority stake under the control of the indigenous Emiratis (David 1992, p 175.However in the recent past UAE has launched a new system to attract foreign investors in the emirates, by introducing free zones that offer incentives to foreign investors such as exemptions from import and export tax corporate tax and income tax among others. The zone s comprise of various businesses including; manufacturing, banking, assets and estates management, logistics, information and technology etc. They also have all the amenities, infrastructure communication systems and all other essential facilities for operation. Jebel Ali Free Trade Zone is one of them and is involved in the production and selling of manufactured goods, domestically and for the international market there are over 950 different activities in the zone. The zones regulations allow companies to have full ownership of the assets for the entity. Nasouh, (2009) says â€Å"Other major benefits are: exemption from the many normal requirements for foreign investors such as: a company must have local ownership, pay taxes and duties, and restricted transfer of capital, profits and salaries†. Companies do not require local sponsorships to create other branches of their business. The zones authorities keep a register for all companies in existence, register new businesses and set the rules and regulations for them. From the above information about Dubai’s investment policies, the high control strategy would be the best to way of entry. The strategy enables companies to have maximum control hence creating a physical presence in the foreign market. A major feature of the strategy is the foreign direct investment option which entails direct ownership and control of assets. Direct investment is the most advanced, complicated system which also has a high risk. It is best suited for well developed economies like that of the emirates, and all types of business can use the strategy including the service industry. The major benefits of using the system are: there is rapid growth of the markets, reduced costs, increase sales and revenues and it also protects both the domestic and foreign markets. The system also has two different ownership structures which are the; wholly owned direct investment and in this structure the company owns its foreign assets and equity fully, the second is the equity joint ventures in which two companies form a new entity and share control of the business. The best structure for an investor operating in the free zones is the wholly owned direct investment because it is allowed and will yield more benefits. Another feature of the system is the vertical integration which comprises of the activities an entity chooses to engage in; any of the three stages which are, production, selling or distribution of products can be fully applicable in the zones depending on a company’s objective. Production Marketing Strategies As earlier mentioned in this discussion, the religion and culture that is predominant in this region is Islam. This culture has percolated through the society and in as much as it is a liberal and tolerant (cosmopolitan) setting, the Arabic language, dress, food and particularly architecture are domineering. For an establishment in real estate to be successful therefore, it must be align ed to the available infrastructure and architecture which borrows heavily from the Islamic faith (Poynter Rugman 1982, p 54). A marketing strategy that may also double up as an entry strategy in the industry may be to identify and cling on real estate probate leads. Such probate leads are generally available because of the existence of property left behind by a deceased person. Such may be left to their immediate beneficiaries being available as their next of kin, these heirs may quickly want to sell off the property, and thus it may be worthwhile to establish these heirs. These can be easily located from offices of probate attorneys. In cases where the property was owned by a renowned realtor, its acquisition will have the benefit of goodwill and reputation already created by the proceeding owner. Another rather effortless method of marketing real estate products is through the construction of quality assets with spectacularly unique designs. Magnificent designs will market themse lves and quality products shall attract the appropriate levels of clientele in the market. The construction of the Burj Khalifa, for instance by Emaar (one of the most renown property developers in the UAE) cost 1 Billion US Dollars but since it is the world’s largest sky crapper it has attracted international attention from the media and architects, a factor that has marketed it not only locally but also abroad. The use of the internet and local media may also be a helpful and powerful marketing medium for advertising. Advertisements may be placed on either local or online newspapers or through the use of other realtors and agencies. The use of the internet as a marketing medium is greatly boosted by the developed telecommunications infrastructure in the United Arab Emirates. The level of internet spread is now 2.4 users per subscription and this extensiveness in use makes it a strategic source of marketing and publicity. The internet contention is also largely considered sa fe because it is usually filtered and regulated by requisite authorities to discourage sexual materials and religious profaning sentiments, views or ideas. International Business Risks The economy of particularly Dubai was hugely affected by the events in Wall Street in the global economic downturn that was witnessed from the year 2007 to 2010. These resulted in the average economy decreasing slightly to up to about 4%. Since majority of the world’s economic crisis may be difficult to control, the only reasonable way that seems practically reasonable to apply in the mitigation of enterprise risk is diversification. Since such forms of financial risks have far reaching effects, investors are expected to diversify their portfolios to avoid subsequent losses in their investments in the country. In real estate for instance, diversity may take the form of constructing not only commercial premises but also residential and religious or public properties so that when the market busin ess is low for private home owners (like the situation was in the United States with home mortgages) revenues can be obtained from other market sectors like hotel and tourism. Political risk may be minimized by ensuring that the entity conforms to the political philosophies of the country where it operates. The politics of the UAE are fairly stable and thus upheavals and major revolutions are uncommon, however with the advent of religious fundamentalism and terror movement killings in the name of religion, the entity must be positioned in a way that it will not contravene any religious or political doctrines that are largely viewed as being against the prevailing faith (Nausoh 2009, p. 25). A potential risk of property investment in the UAE may also be associated with the oversupply of properties in the form of houses, commercial buildings and other rental premises. The available infrastructure is being exceedingly attractive to many investors and with barriers to cross border forei gn direct investments lessening, this may cause many players to saturate the industry. The result of this could be the witnessing of decreasing yields or stagnating prices of properties. This is however only a long run possibility because in the current assessment, no such saturation is visible especially in the minor Emirates (Roth Morrison 1992, p 751) The economy of the country and indeed of many neighbors in the region has been built around petroleum exports, without any immediate plans to diversify the economy, a petroleum glut or a decrease in the cost of petrol products including gas worldwide may cause a massive indention of the country’s economy. The Emirate of Dubai has foreseen this potential risk and thus tried to augment the petroleum input in its GDP with a developed banking and commercial sector as well as improved tourism. The opinion of many analysts on this subject however is that as long as the oil prices remain at $ 35 per barrel and above, this risk may be ignored, but the future is always uncertain (Salisu 1991, p. 191). Therefore, the United Arab Emirates provides good and diversified opportunities for any foreign investor to invest in. in addition the rules, policies and regulations have made it easier for both the investor and the Emirates serve their interests without any conflict either economically, politically or socially. Ball, D, McCulloch, W, Geringer, J, Minor, M McNett, J 2008, International Business: The Challenges of Global Competition, McGraw-Hill, NY. Balasubramanyam, V, 1985, Foreign direct investment and the International transfer of technology, Current Issues in International Trade, Macmillan, London. David, G 1992, Economic integration and foreign Direct investment in the EC, Journal of Common Market Studies, vol. 5(2), pp. 10-50). Nasouh, N 2009, Heavy snowfall on Ras Al Khaimah’s Jebel Jais Mountain cluster, Gulf News, https://gulfnews.com/. Poynter, T Rugman, A 1982, World product mandates: how wil l multinationals respond? Business Quarterly, vol 47, no.3, pp. 54-61. Roth, K Morrison, A 1992, Implementing global strategy: Characteristics of global subsidiary mandates, Journal of International Business Studies, vol 23, no. 4, pp. 715-735. Salisu, M 1991, EP, IS and direct foreign investment in LDCs, International Trade and Global Development, Routledge, London.

Google Essay Example | Topics and Well Written Essays - 1000 words - 1

Google - Essay Example This increase between the offer price and the open price is much greater than the increase for typical IPOs in 2004. Indeed, 82 percent of the IPOs issued in 2004 experienced less of a jump from the offer price to the open price than Google did, and the statistics were similar for IPOs issued prior to Google's debut and following Google's debut. The enormous post-auction price increase of Google, especially in the immediate weeks and months following its debut, when there were few substantive news releases on changes in company strategy and fundamentals, further suggests that the online auction method may not have priced Google efficiently. Google subsequently soared in the following months to a high of $317.80 on July 21, 2005. As of June 29, 2005, Google had exhibited price appreciation of 186.8 percent, relative to its open price. Critics of Google's IPO initially argued that the auction was a failure because Google slashed the number of shares that it would sell at public auction from 25.7 million to 19.6 million shares. Also, it dropped the target price range from the $108-to-$135 range projected in late July to the $85-to-$95 price range (Knight Ridder, August 19, 2004). At the time, many analysts suggested that the earlier Google price range had been overpriced; yet, Google's closing price reached the lower end of that price range after 18 days of trading and reached the higher end of that price range after 32 days of trading. The lessening interest in Google at the time that it reduced the price range during the summer was possibly due to some combination of the following factors: - The lack of information provided by the company during the process about its uses of capital - A slump in price appreciation for June IPOs - Reservations on the part of investors about the use of the online process. Who benefited from Google's price appreciation Under the traditional process, the preferred clients of the underwriting investment banks can benefit from the initial IPO underpricing and subsequent price appreciation since they have the initial allocations. In the case of Google, the beneficiaries in the price appreciation have been: 1. those investors who bought Google when it first began trading and held it until the price increased substantially and 2. the Google co-founders and the chief executive, as well as the venture capital firm involved in financing Google, who were allocated shares early in the process, but who could not sell them until the "lock-up period" expired. "Google announced in its IPO prospectus that it wouldn't provide traditional earnings guidance. While it took this stance to avoid short-term thinking, the move also likely left Google's directors knowing more about company prospects than other investors. The third quarter, which Google was in at the time, proved to be one of spectacular growth." (Delaney, September 2005) By July 2005, the CEO Eric Schmidt and the company founders Sergey Brin and Larry Page had sold $1.7 billion in stock, other executives had sold more than $800 million in stock, and no open market purchases had been recorded. Indeed, Page and Brin have sold 3.7 million and 3.8 million shares, respectively, or roughly 400,000 shares per month, while Schmidt had sold 1.3 million

Compare and contrast Kennedy and Reagon's Inaugural Address Essay

Compare and contrast Kennedy and Reagon's Inaugural Address - Essay Example However, only Reagan, by far the better man manages to achieve this. John Kennedy became President as a youngish man. America was dawning in the 1960s and they were swept up with enthusiasm. He noted in his inaugural speech that there was great promise, but also great danger ahead: The world is very different now. For man holds in his mortal hands the power to abolish all forms of human poverty and all forms of human life. And yet the same revolutionary beliefs for which our forebears fought are still at issue around the globe-the belief that the rights of man come not from the generosity of the state but from the hand of God. (110). He evokes God and purpose in his speech and it is powerful in its way. What is sad about his speech, however, is how his administration did not live up to the principles it espouses. Kennedy did very little as President. He spent much of his time leading an absolutely scandalous personal life, which surely proved a great distraction. He led America into the humiliating Bay of Pigs fiasco and nearly destroyed the world through Cuban Missile Crisis. He was not a man in touch with the people. He was a millionaire who was President as a kind of hobby. We dare not tempt them with weakness. For only when our arms are sufficient beyond doubt can we be certain beyond doubt that they will never be employed. But neither can two great and powerful groups of nations take comfort from our present course-both sides overburdened by the cost of modern weapons, both rightly alarmed by the steady spread of the deadly atom, yet both racing to alter that uncertain balance of terror that stays the hand of mankinds final war. (110) In a sense this is similar to Reagan’s own political philosophy of building up America’s nuclear arsenal and defences. However, Reagan did this simultaneously while engaging in reasoned negotiations not brinksmanship. He knew what he was doing, while Kennedy was just playing at it. Flash forward

My Sisters Keeper | Summary

My Sisters Keeper | Summary Andromeda Anna Fitzgerald: Anna was born with the purpose to safe her sister Kate, now she is thirteen and she doesnt want to do it anymore so she decides to sue her parents for the rights to her own body. Anna is a girl that always wanted to learn new things, she also played hockey on a high level but because she had to help Kate she couldnt continue playing. She also loves astronomy just like her father. Sara Fitzgerald: Sara is the mother of Kate, Jesse and Anna and she would do anything to safe Kates life. When Anna sues her she doesnt understand why and she is afraid that Kate will die without Annas help. Sara is a woman that tries to do the best thing for all of her children but not always in the right way. For thirteen years all of her attention goes to Kate, and her other children suffer the consequences. She also is a former lawyer and she decides to defend her self in Annas lawsuit. Brian Fitzgerald: Brian is Kate, Jesse and Annas Father. When Anna sues him he understands her, and he helps her understand why it is so important for her to help Kate. Brian is a man who likes to keep things cool. He always looks at the situation with a positive mind, and he tries to make the best out of it. Sometimes he goes up on the roof at the fire station (Brian is a fire man) and looks at the stars with his telescope. Jesse Fitzgerald: Jesse is Kate and Annas older brother who nobody pays attention to. His parents are to busy with Kate, and Anna is to busy with her lawsuit. He outs his emotions through pyromania. With these actions he hopes that someone notices him. Jesse looks like he is a tough and cool guy but in reality he is scared. Scared to loose his sister and scared to loose his family. Campbell Alexander: Campbell is the lawyer Anna has hired to help her with her lawsuit. He didnt want to help her at first but when he got to know her and her situation he gave it a shot. Campbell is a man who has a big secret but is too ashamed to tell anyone. But when something goes wrong in the courtroom everyone finds out his secret. Julia Romano: Julia is Annas guardian ad litem (legal guardian) and an ex girlfriend of Campbell Alexander. As they work on the case together their love grows again and they end up getting married. She lives in an apartment with her sister and loves her work. C. Summary Kate Fitzgerald was diagnosed with leukaemia at the age of two. The doctors said Kate needed a bone narrow transplant as soon as possible but no family member seems a match, not even Jesse Kates brother. Brian and Sara, Kates parents, try everything they can, but nothing seems to work. Than the doctor finds a solution, but not a common one. He suggests that Brian and Sara should have an other child, but not just a child, a child that is the perfect match for Kate. This is how Anna was born, she was engineered to save her sisters life. For thirteen years now Anna put up with all the transplants and operations because her parents asked her to and she wanted to help Kate. But when Kate needs a kidney transplant Anna is done. She doesnt want to do it anymore and she decides to sue her parents for the rights to her own body. She hires the famous lawyer Campbell Alexander, though he doesnt believe in her case right away he decides to take it. Because Anna is sewing her own parents she need s a legal guardian to make decisions for her and to look how Anna is treated at home. This legal guardian is Julia Romano, an former girlfriend from Campbell Alexander. Eventually Anna wins the lawsuit and Campbell is now her guardian, but than something horrible happens and everything changes. D. Biography of the author Jodi Picoult was born May 19, 1966 in Nesconset, Long Island. Jodi has written fifteen best selling novels, which include my sisters keeper. Jodi studied creative writing at Princeton, she had al lot of jobs before entering Harvard to get a masters in education. She married Tim van Leer, whom she has known from Princeton. Now Jodi lives in New Hampshire with her husband, three children and all of there animals. E. Personal response, answer the questions 1. Did you like the story or not? I loved the story. I love stories where theres a lot of drama involved. And this story has enough of that. I also really liked the idea. I dont think that anyone could write a story like this and write it so realistic when it didnt happen to themselves, but Jodi did and I admire her for that. 2. What was it that you did or did not like? What I liked about the book was that not everything was about drama and death and problems, there where also a lot of fun parts, like the completely different story about Campbell and Julia. It fits perfectly in the book but it isnt about Kate and her family. 3. Choose one action of the main Character and explain: When Kate is in the hospital to get her chemo, she starts talking to the boy sitting next to her, his name is Taylor Ambrose and he also has Leukaemia. They started to talk about chemo and how it sucks that they have leukaemia but that life goes on. When Taylor is done with his chemo he asks for Kates phone number and they make plans for the next day. Why you would have done the same. I dont know actually. I dont know if I would be in a lot of pain or if I would even have that much courage, but Kate thought what the hell and just did it, and maybe I would do the same thing but for now Im not sure. Why you would have acted differently and how If wouldve done it, I wouldve done exactly the same thing. It is a subject that they both relay to and they both have to live with, so why not make life a little better and get a date. The sources I used: http://en.wikipedia.org/wiki/Jodi_Picoult http://www.jodipicoult.com/ http://www.fantasticfiction.co.uk/p/jodi-picoult/