Madurai Essay Example for Free

Madurai Essay Madurai has been a major settlement for two millennia and is one of the oldest continuously inhabited cities in the world with a recorded history from 3rd century BC. [3]Megasthenes visited Madurai during 3rd century BC, with the city referred as Methora in his accounts. [9] The view is contested by some scholars as they believe Methora refers to the north Indian city of Mathura as it was a large and established city in the Mauryan Empire. [15] The city is also mentioned in Kautilyas (370–283 BC)[16] Arthashastra. Madurai finds mention in the works of Roman historians Pliny the Younger (61 – ca. 12 CE), Ptolemy (ca. 90 – ca. CE 168), those of the Greek geographerStrabo(64/63 BCE – ca. 24 CE). and also in the Periplus of the Erythraean Sea After the Sangam age, most of present day Tamil Nadu, including Madurai, came under the rule of the Kalabhras dynasty, who were ousted by the Pandyas around 590 CE. The Pandyas were outsted from Madurai by the Chola dynasty during the early 9th century. The city remained under control of the Cholas until the early 13th century, when the second Pandyan empire was established with Madurai as its capital. After the death of Kulasekara Pandian (1268–1308 CE), Madurai came under the rule of the Delhi Sultanate. , The Madurai Sultanate, then seceded from Delhi functioned as an independent kingdom till its gradual annexation by the Vijayanagar Empire in 1378 CE. Madurai became independent from Vijayanagar in 1559 CE under the Nayaks. Nayak rule ended in 1736 CE and Madurai was repeatedly captured several times byChanda Sahib (1740 – 1754 CE), ArcotNawab and Muhammed Yusuf Khan (1725 – 1764 CE) in the middle of 18th century. In 1801, Madurai came under the direct control of the British East India Company and was annexed to the Madras Presidency. The British government made donations to the Meenakshi temple and participated in the Hindu festivals during the early part of their rule. The city was devolved as a political and industrial complex through the 19th and 20th centuries to become a district headquarters of a larger Madurai district. With the effect of urbanisation, the temple no longer retained the unitary form, but continued to remain the centre for Hindus. In 1837, under the order of the then collector John Blackburn, the fortifications around the temple were demolished to accommodate the growing population of the city. The moat was drained and the debris was used to construct the new streets – Veli, Marat and Perumaal Mesthiri streets. The city was constituted as a municipality in 1866 CE. The British government faced initial hiccups in land ceiling and tax collection in Madurai and Dindigul districts under the direct administration of the officers of the government. The district at large was resurveyed between 1880 and 1885 CE and settled between 1885 and 1893 CE. The survey showed an under assessment of around 8 per cent in the old survey. Five municipalities were constituted in these two districts and six taluk boards were derived for local administration. Police stations were established with Madurai city as the headquarters of the District Superintendent. It was in Madurai, in 1921, that Gandhi, pre-eminent leader of Indian nationalism in British-ruled India, adopted loin cloth for the first time as his mode of dress after seeing agricultural labourers wearing it. [29] The independence movement in Madurai was led by leaders such as N. M. R. Subbaraman and Mohammad Ismail Sahib.

Sainsburys Supermarket Consumer Analysis

Sainsburys Supermarket Consumer Analysis A super market is the One-Stop-provider of almost all the day to day basic necessities of any regular consumer in the given market industry. These necessities include the food items, drinks, toiletries, household stuff etc. Hence all you need to run your houses daily. These supermarkets have now further developed themselves by providing clothings, shoes etc. One of the leading names in the UK supermarket industry is Sainsburys. J. Sainsbury plc is the parent company of Sainsburys Supermarkets Ltd, commonly known as Sainsburys (also Sainsbury and JS); this is the third largest chain of super stores in the United Kingdom with a market share of 16.3%. The groups Head Office is located at Holborn in Central London. 1.2. Operations: Founded in 1869 by John James Sainsbury along with his wife Mary Ann in London and then gradually grew to become the largest grocery retailer by 1922. The company has a chain of stores with 537 supermarkets and 335 convenience stores, hence a total of 872 stores in England, Scotland, Wales and Ireland, including Hypermarkets (super large stores- Sainsburys stores- main plus), Sainsburys Central and Sainsburys local (supermarket and local convenient stores format main mission). The company has been eyeing the opportunity of expanding its business outside the UK. Especially the hyper potential in Asia (especially South East Asia and China). By analyzing Tescos huge success in the market outside UK, Sainsburys venture might not be far away. The Sainsburys family has 15% shares of J Sainsbury plc (as of May 2008) The major family shareholder is Lord Sainsbury of Turville holding 5.83% and Lord Sainsbury of Preston Candover who holds almost 3% of the companys shares. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index (July 12, 2010http://en.wikipedia.org/wiki/Sainsburys) In this report we have analyzed Sainsburys on the basis of its financial performance through Studying its last 2 years financials Making necessary observations Comparing its financial performance with the market leader Tesco Commenting on the strengths and weaknesses as interpreted through their figures / ratios etc. Calculating the WACC for Sainsburys Keeping in view the over saturated industry of supermarkets, it was needed that Sainsburys should venture into something new to increase its profit margins and gives the companys portfolio some diversity. A new project suggesting that Sainsburys should open its Sainsburys Travels and Tours has been discussed and a formal report which analyzes the idea and calculates the projects NPV has been approved by the board and given a go ahead. A format for quarterly report has been suggested for business updates of the new project every quarter. Market Position. The Sainsburys is the UKs oldest major food retailer with their first store opened in 1869. It strives to keep up with its trusted heritage of quality with best services. The management has a continuous approach towards work with responsibility. They attempt to provide fresh food and innovate with respect to customers needs. It serves over 18.5 million customers every week. The large stores offer over 30000 products along with complementary Non-Food products e.g. the TU clothing range which has over 1 million transactions every week. Along with other services, an Internet based shopping service has also been made available, keeping in trend with the changing requirements o the customers, to almost 90% of UK households. In 1995, Tesco overtook Sainsburys to become the market leader, and Asda became the second largest in 2003, demoting Sainsburys into third place. (July 12, 2010http://en.wikipedia.org/wiki/Sainsburys) (http://www.j-sainsbury.co.uk/index.asp?pageid=12) 2. Sainsbury Financial Structure and Performance: Sainsburys is the 3rd largest UK super market with Tesco and Asda as its closest competitors holding positions as No. 1 and No. 2 respectively. Presently Sainsburys is operating in 872 stores across UK with 150,000 employees Sainsburys closes its financial year in the third week of March every year. The tools used are the Income Statement, Balance Sheet, Cash flow statement with the Notes to the Financial Statements. The financial analysis of any company helps determine the financial standing of the company and helps in making decisions and plan future strategy and projects on its basis The financial figures show a reasonable increase in sales. The gross profit showed a decline from 2007 to 2008 but is again on increasing trend in 2009. Balance sheet shows growth in goodwill and shares and decrease in the borrowings. This might have been due to increase in the interest rates. Cash flows show a significant increase in cash in hand which shows the company is stably liquid to handle its operations smoothly. Also the increase is due to sale of its stores. 2.1. Comparison with Market Leader Tesco: 2.1.1. Ratio Analysis: Ratio analysis of any company provides very important information regarding the companys financial standing, financial strengths /weaknesses. They are calculated to compare a companys progress against other rivals of the industry as well as its previous performance. The ratios measure The profitability of the business The Performance The quality of companys performance A companys ability to meet the short term obligations A companys debt burden Value of business / Investment 2.1.2. Management: Tesco is the market leader in UK supermarket industry holding almost 31% of the market. The 1st Tesco store was opened in 1929, in Edgware, Middlesex, UK. Since then it has gradually grown in to being the largest supermarket chain in the UK with almost 2200 stores in UK with over 285,000 employees. Since the mid 90s S, Tesco has been investing in new markets overseas, finding new opportunities for growth and means of generating long term returns for shareholders. The group operates in 13 markets outside the UK, in Europe, Asia and North America, and also announced their entry into the Indian market last year, where they are planning to establish cash carry business. 2.1.3. Financial strength: Both Sainsbury and Tesco have strong balance sheets, equipped with tangible real estate assets. This collateral allows them to borrow at lower rates and generate cash through sale-and-leaseback schemes if required. Both the companys are operating in a saturated market. Sainsburys almost 90% of revenue is consumed in COGS leaving from 5% to 6.5% in lieu of gross profit margin and even the other expenses are insignificant comparatively still the company is left with 1.5% to 1.9% of net profit. For Tesco, the situation is not very different from Sainsburys. Here the gross profit margin is 7% which is a little better from Sainsburys. The current ratios and Quick ratios of both the companys are below 1 which is not a healthy trend. In order to obtain any finance the company should have a stable solvency indicator. The debt ratio indicates that how much of the firms assets are being financed by the debt. Both the companys show a stable debt ratio of 20% to 30%. The debt to equity ratio measures the risk involved in investing in the particular company. Sainsburys shows an acceptable debt to equity ratio of almost 50% but Tesco comparably has a huge debt to equity ratio of 91 which might be because of its full throttle expansion in international markets. Most financiers analyze the company balance sheet before making an investment decision. The prime motive to check if the companys Capital Gearing is right. Capital Gearing is the relationship between Equity and Debt. It is always considered good for a company to have a reasonable Equity base to a business, as insurance against unexpected losses. This is to minimize the risk as much as possible. If a company has a Gearing of no more than 50% 67% of their Gross Assets from Debt, depending on the risk associated with the business, it is considered acceptable. The higher the gearing, the more vulnerable the company is to the impact of increased interest rates. Tesco and Sainsbury both show a sound gearing and though Sainsbury is more healthier to be invested upon, Tesco as well is well within the Good Gearing Grounds The interest coverage of both companys show a very healthy standing to meet their interest payments deadlines. http://www.financesoutheast.com/ From above comparison it is clear that retail industry is highly saturated and it is nearly impossible for the companies to earn super profits. Effective cost control techniques need to be applied and monitored on regular basis to improve profitability. Sainsburys have improved turnover at a rate of 5.5% a year. Profits have grown even faster; increasing by 6.7%. Tesco has a little edge based on earning slightly higher profits and showing rapid growth. Both the companies need to improve upon their debt structuring, especially Tesco and hence gradually improve their liquidity ratios. 2.1.4. Growth potential: So far, Sainsburys has only concentrated on its business in the UK while Tesco has increased its operations in 14 countries. But we should not conclude that Sainsbury is lacking in growth opportunities. Sainsburys has two procurement offices in China but again no one is sure as to when Sainsburys will be able to achieve increased growth and improved profit margin without international expansion. Sainsbury has performed well by adding innovative non-food products and banking services, but competition is tough and increasing in these areas, too Tesco, on the other hand, may have more growth opportunities in progressing Asian market and elsewhere, but its also a much bigger entity than Sainsbury. For example, during last one year Tesco had  £56.9 billion in turnover as compared to  £19.9 billion for Sainsbury. Sainsburys has been concentrating on UK store expansion rather than overseas growth. It has increased the total number of stores from 583 in 2004 to 872 today. Today, Sainsburys need to emphasize on its domestic growth and increase its store efficiencies, which is not an easy task, but it is more achievable than managing and controlling a group of international locations with diverse tastes and demands. http://www.tescoplc.com/plc/about_us/strategy/international/ http://www.fool.co.uk/news/investing/company-comment/2010/07/16/a-foolish-fracas-sainsbury-vs-tesco.aspx 3. Weighted Average Cost of Capital: Debt Equity 2,357 (Long term debt) 18.64m (shares) * 345 (share price) = 6,431 3.1. Equity: No. of shares outstanding: 1,864 (m) Current market price per share: 345 Market Value of equity: 1,864 * 345 = 6431 http://www.google.com/finance?q=LON:SBRY http://www.digitallook.com/companyresearch/10079/Sainsbury_(J)/share_prices.html http://www.bloomberg.com/markets/rates-bonds/government-bonds/uk/ http://www.j-sainsbury.co.uk/index.asp?pageid=23 We calculate the cost of equity through Dividend Growth Model Which is Ke = [Do (1 + g) / (MV-Ex Div)] g Where Ke = cost of equity Do = Dividend given = 14.20 (pence) MV = Market value = 345 (pence) Ex. Div = Ex Dividend = 10.20 (pence) g = growth rate = 7.6% Cost of equity: [14.20(1+0.076) / (345 10.2)] 0.076 Ke = 12.11% 3.2. Debt: Book value of Debt: 2,135 1,074 @ 4.98% 861 @ 2.36% 171 @ 4.25% 251 @ 4.3% Kd = 3.90% http://www.j-sainsbury.co.uk/ar10/downloads/pdf/Sainsburys_AR10_note_20_borrowings.pdf 3.3. WACC: V K V * K Debt 2357 3.90% 9192 Equity 6431 12.11% 77879 Total 8788 87071 Sum VK / Sum V = 87071 / 8788 = 9.91% 4. Project: 4.1. Opening up of Sainsburys Travel and Tours: Sainsbury has always aimed to be the consumers first choice for food, delivering quality products with great service at a competitive cost. The company is striving to achieve the objective of leading margins with diverse market and delivering strong profits every year. The values of Sainsburys are defined in their website as The values of the Sainsburys brand passion for healthy, safe, fresh and tasty food, our focus on delivering great products at fair prices, a history of innovation and leadership and a strong regard for the social, ethical and environmental effects of our operation have continued to stand the test of time. Five principles are at the core of Sainsburys business: The best for food and health Sourcing with integrity Respect for our environment Making a positive difference to our community A great place to work. These principles provide differentiation from our major competitors and define and direct all our activities. http://www.j-sainsbury.co.uk/index.asp?pageid=14 Keeping the tradition of the best services, the management has decided to venture into the ever growing market of Travel and Tourism industry with opening up of Sainsburys Travels and Tours. The idea of opening up a Travel Services business branch of Sainsburys is based on the news of Sainsburys opening up its Travel Clinics in mid 2008. The clinics were established in outlets initially offering free consultation with nurses offering different injections and health products with advise for people travelling to countries requiring vaccinations and immunization from infections like flu, malaria etc. These products were offered at significantly cheaper prices than in any specialist clinics. http://www.holidaylettings.co.uk/resources/industry-news/general-travel/sainsbury-s-launches-travel-clinics-in-21-of-its-supermarkets/a-3-143-1264/ The Sainsburys Travels and Tours will provide the company to excel and achieve its strategic goals on the basis The supermarket industry has become fairly saturated in the UK and at present Sainsburys is eyeing to expand itself in the International market but it will be a while before it actually does. The Travel industry is a growing market and has a huge potential of growth. The new product will benefit the company earn huge profitability margins which are becoming hard to achieve I the supermarket industry. The Sainsburys has a huge loyal customer base which will be utilized for promotions and marketing purpose. The project has a high probability of success given a chance of a fresh new product offered by a supermarket chain. The company will use its existing huge customer base for the travel services marketing and promotion. The existing nectar loyalty card database will help the management to design the product, offerings, travel and tour packages as per the preferences. 4.1.1. Project Description and Key Elements: The project will have a Head Office (With the existing HQ of Sainsburys at Holborn Circus, London) have initially total 3-4 rooms allocated. The HQ office will have 7 employees. Initially only limited stores and selected cities will be setup with the Sainsburys Travels and Tour Desk with one person behind the counter. The Six major cities (with respect to area / population) i.e. London, Birmingham, Manchester, Glasgow, Belfast and Cardiff covering the whole of UK will be set up initially for kick off of the Travel and Tour Services. 10 stores in London and 5 stores in the remaining cities will be setup for providing the services. Each of these cities will have a team of 2 people, 1 within the store premises (as mentioned above) and the other for monitoring and reporting purpose. The number of employees will gradually be increased as per requirements with the project evolvement. http://www.ukcities.co.uk/populations/ 4.1.2. Initial Investment Cost: Initial Investment Cost Cost of IATA Membership (http://www.iata.org/membership/Pages/fees.aspx) 33,500 GPB Total Staff 27 Computers http://www1.euro.dell.com/content/products/features.aspx/iip_notebooks?c=ukcs=ukbsdt1l=ens=bsdCID=41142LID=1069631DGC=ST 650 * 27 = 17,550 GBP (including VAT and Delivery) Server http://configure.euro.dell.com/dellstore/config.aspx?b=c=ukcs=ukbsdt1l=enoc=PE2T610Rs=bsd 2,800 GBP (including VAT and Delivery) Software http://www.britishsoft.co.uk/?gclid=CMmGudvPgaMCFSU_lAodWH6Zdg 940 GBP (including VAT and Delivery) Total Initial Cost 54,790 GBP 4.1.3. Other Costs: Type of cost Cost Amount Remarks Salary for 1st year 450,000 Inc. of 7.5% each year Brochures / Stationary / Equipment 20,000 Inc. of 10% each year Marketing Budget 250,000 Inc. of 15% every year 4.1.4. Assumptions: We assume that Sainsbury will initially target the high spenders from its customer database and target them for the promotions and marketing materials (leaflets etc.) Initially the holiday packages and tours will be offered for 5 big holiday destinations including Egypt, Turkey, Tunisia, Barbados and Spain. The packages the calculations are based include a general deal for 4 people for 7 days. The holiday packages for these destinations cost as follows (based on holiday packages offered by Expedia. Destination Price for Customer (average) http://packageholidays.expedia.co.uk//tt.aspx Actual Cost (with Sainsburys profit margin @ 24 (Price 24%) http://www.thomascookgroup.com/annual-reports Egypt 1150 (GBP) [ 286.5 GBP per person] 874 GBP Turkey 728 (GBP) [182 GBP Per Person] 553 GBP Tunisia 1200 GBP [ 300 GBP per person] 912 GBP Barbados 3120 GBP [780 GBP per person] 2371 GBP Spain 1000 GBP [ 250 GBP per person] 760 GBP We assume that Sainsbury will succeed on selling on 110 of these above mention packages for each country. Annual Revenues will be 718900 GBP We assume that annual revenues will increase by 12% (2% more than the average growth in Sainsburys revenues which is 9.4% given the growth potential in the industry) Operating cost will include the salaries of the employees, day to day business running expenses etc. since we are sharing the premises of existing Sainsburys stores and HQ so there will be no extra operating cost except the salaries. As per the National Statistics Online, the Consumer Price Index (CPI) is at 3.2% and the Retail Price Index (RPI) is at 5.0%. http://www.statistics.gov.uk/cci/nugget.asp?id=19. The growing inflation rates have a direct negative effect on the customers ability to spend on leisure and holidays. Although consumers have gradually developed this sense of planning ahead and saving for their Holidays. Effective Tax rate of 28% is applied. http://www.hmrc.gov.uk/rates/corp.htm 4.2. Identification of Risk and Uncertainty: In any new project, one is never sure about 100% results. If the project is based on Risk then we might expect somewhat certain results based on previous data. The cash flows based on Risk might be forecasted and the associated possibilities are also known but in case of uncertainty the outcome is unknown and hence the related probabilities are also unknown. A study conducted with a few managers showed that they think risk is manageable if you have right information, sufficient knowledge about the project, and if the person is experienced in the particular field. Most of them stressed on the importance of alternatives, collecting more information and checking different aspects of the problem, along with being actively involved to reduce the risk.. (IAENG International Journal of Computer Science, 32:4, IJCS_32_4_12) It is the attempt to manage both the known-unknowns and unknown-unknowns. Preparation for and managing the risk is the result of what is unsure and unknown-decision risk. 4.2.1. Affects of Risk and Uncertainty on proposed project: Lets consider the following aspects while making decision based on risk for the Sainsburys Travels and Tours What can go Wrong? The Sainsburys already has an established huge no. of loyal customers who would be happy to have an option o a different kind of service offered from their trust worthy service provider. The expectation for a stable turnover is based on the fact that it is an established name offering a new product on the basis of its goodwill. How likely it is to happen? The expected growth can be effected by increasing inflation rates. The Travel Industry faced a huge blow after 9-11 incident. What are the consequences? Any unforeseen incident like this (God forbid) will have long lasting effects on the companys growth, profitability and future expansions and plans. http://www.robustdecisions.com/decision-making-tools/risk-vs-uncertainty.php 5. Calculation of NPV: NPV is a technique where cash inflows which are expected in comming years are discounted back to their present value. This is calculated by through a discount rate equal to the interest that was to be received on the sums, in case the inflows had been saved, or the interest that has to be borne by the firm on the borrowings. In case of more then one project appraisal, the firm should choose the one that produces the highest NPV. 5.1. Sainsburys Travels and Tours Expected Cash Flows (for 3 years): The project has a positive NPV which is a healthy sign for the project. It can be proceeded with. The project is going to be beneficial for the company and add to the shareholders value. A positive NPV means that the project is worthwhile because the cost of tying up the firms capital is compensated for by the cash inflows that result. http://www.bized.co.uk/timeweb/reference/using_experiments.htm 6. Quarterly Report Format: As per the requirement of the board every quarter a report has to be sent for updated performance and progress information. The report has to serve the purpose of giving a complete up to date data to be analyzed by the board. A company analysis gives a complete performance and financial picture of the company. The report should include all the data necessary to quickly compare it with the major competitors. 6.1. Reporting Layouts: The report will be in Excel sheet format. The Information provided will be in different excel sheets in the same document each covering a preceding quarter to give convenient comparisons Title of the report: Sainsburys Travels and Tours Addressed to: Date: from -/-/- to -/-/-: Date of submission: Submitted by: 6.1.1. Holiday Packages Bookings: 6.1.4. Comparison of Actual and Forecasted performance: The calculation of the Sainsburys Travels and Tours project NPV has been made by going through the three years forecasted figures of the company which show that it is progressing towards a high performing entity with reasonable growth in profit. Although with the growth of the company eventually it will require to use more resources in term of offices, employees, equipment, marketing budget etc. but the current performance clearly suggests that it will very strongly bear all the changes and keep on showing a steady growth. 7. Conclusion: Sainsburys is one of the key players of the existing supermarket industry in UK. This report gives an overview of its performance during the last couple of years, dealing with the financial figures we have tried to analyze the financial standing and strength and the comparison with the main market leader Tesco gives a fair idea of both the companys approach towards business. Although Sainsburys has not yet ventured into the International market but the step might not b that far away keeping in mind the huge success TESCO has had in the international market. Sainsburys has a huge loyal customer base. The suggested new service product through Sainsburys Travel and Tours will provide these customers to utilize yet another trustworthy service by their trusted name. The growing Travel and Tours market will definitely have a positive effect on the Sainsburys portfolio by increasing its profits and hence strengthening its business.

Economic And Environmental Impacts Of Transnational Corporations Economics Essay

Economic And Environmental Impacts Of Transnational Corporations Economics Essay Trans National Corporations (TNCs) are companies which operate in at least 2 countries. Its organization is very hierarchical with the headquarters as well as research development often located in the mother country. Production centers tend to be host countries. When organization becomes more worldwide regional headquarters and regional research development will widen in the manufacturing countries. This gives TNCs many advantages, such as right of entry to the global market, cheap labor, low production costs, consequently greater profits. The headquarters of these remains in its mother country, usually one of the most developed countries in the world, like USA UK. Their established factories throughout the world, which either make parts or entire finished goods for the company to sell on the global market. Among all the TNCs in the world, Most of them are oil companies such as Exxon (Esso) BP, car manufacturing companies (for instance Toyota, Ford, Nissan and Volkswagen). Other familiar companies like Sony, IBM and Coca-Cola are also defined as being TNCs. Trance National Corporations are established globally for their advantages, to earn more profits. They bring with them both positive and negative impacts for the country that plays host to them. Top 10 TNCs in 2009 TNCs manufacturing high-tech Scientific instructions, pharmaceuticals microelectronics, (Mitsubishi, Sony, Glaxo- Smithkleine) Large volume consumer goods Tyres, Motor vehicles, televisions other electronic products (Toyota, Daimler, Ford, Volkswagen, General Motors) 3) Mass produced consumer goods cigarettes, beverages, breakfast cereals, cosmetics branded goods (Mars, Uniliever, Nestle, Kraft foods) 4) Service Banking/ insurance, freight transport, advertising, hotel chains and fast food outlets (IN group, AXA, citigroup, HSBC, Allianz, Dexia) TNCs organize manage economic activities in different regions develop trade inside between units of the similar corporation in different regions. It means they can often control the terms of trade and can diminish the effect of quota boundaries on the movement of products, go around trade tariffs. Advantages to TNCs TNCs have the ability to take advantage of spatial differences in factors of production. They can utilize differences in the accessibility of labor, capital, and building or land costs. e.g. 2002 Dyson moved its production from a plant in Malmesbury, Wiltshire to Malayasia to take advantage of cheap labor. Dyson did retain several hundred jobs in Wiltshire for RD saving of 30% in production costs0 They can locate to take advantage of government policies such as lower taxes, subsidies and grants and less strict legislation on employment and pollution. They can get round trade barriers by locating production within the market where they want to sell. E.g. Nissan in Sunderland, Toyota in Derby. Japanese car firms have been attracted to locations in the EU because of quota restrictions on the import of Japanese made vehicles into European manufacturers and gain entry to the European market What are NICs? Country that has within recent decades experienced a get through into rapid productivity growth, rapid export oriented economic growth, quick industrialization farther a high amount of investment and assets formation largely funded from local savings, and a high tendency to export, with end user durables and machinery accounting for a large share of exports. Superior examples are South Korea, Hong Kong, Taiwan, and Singapore. These countries invest capital and production facilities in other developing countries like China, Vietnam, India, and some countries in South East Asia. Within 20th century lots of East Asia countries were industrialized such as South Koria, Taiwan, Philippines, Singapore, Thailand, and Japan. These states are called as Newly Industrialized Countries or (NICs). They are also sometimes referred to as Tiger Economies because of the growth rate of these counties. The governments of NICs controlled over industrial development motivated industries to export manufactured products to abrade such as more developed states. The exports profits were re-invested in the local economy. Local businesses did grow; wages rose workers did spend their new assets to buy domestic goods and services thus motivating further growth. This type of rotation or knock-on effect, in which money paid out by businesses is reinvested inside the country, is often called the multiplier effect. NICs have been being succeeded for the last 30 years. That successfulness of these economies has contributed to the turn down of manufacturing industries in MEDCs like UK. Industries struggled to compete with the NICs competition, because their production cost and wages were very low. Characteristics of NICs Countries whorled market exporter share is increasing, they often copying existing products then reproducing for a much low price. Continues growth in the production sector that results for more exports continues increasing of GDP. Generally NICs Can be developed by three stagers, thats traditional society to a developed country society. Three stagers are explained below. The time frame of whole process can be minimum 30 years. Traditional society: There are more labors work under the industry, its labor oriented. Concentrating on small cottage-style traditional industries, concentrated on local raw materials. Instance could include food processing, textile manufacture Most of the time, lots of people are still work in the primary sector, doing things include farming. Using primary technologies most of the people have less money. Import the products what they want, that indicate county is not producing what they actually needed addicted to import products. Import substitution industries: The country does promote its own industries. Newly started companies imitate products from well known market giants and then produce them for low price. The government operates tariff barrios for the products are being imported trades that make similar products. The purpose of that is protecting their own domestic companies whilst they grow. Instance industries are computer manufacture, car manufacture, electronic goods and other electrical goods, like hi-fis. Export orientated industries: The new companies established in their own country they are unleashed upon the global market. Industries are being capital intensive, using high technology aimed at earning a big profit. The gross domestic product (GDP) of the country starts to increase, mostly growing at well over 5% per year which is a wonderful rate. Now the country has been being an NIC. How do TNCs affect to the NICs economy their environment? Investment: Advantages: The companies earn, invest, bring foreign currency into the country. Though most of their earnings come back to the companys country of host, all the remunerations do come to the local economy Disadvantages: The salaries paid to host country workers are very low and a lot of companies have been accused of exploiting the workforce before benefiting it. There are often tax incentives for these TNCs to locate in countries in the Developing World. Due to the fact that they get lots of their profits out of the country that says the real economic benefit to the country could be limited. Technology: Advantages: TNCs help the development of the NICs by bringing in latest technology and new knowledge that the host country doesnt use. Disadvantages: Unless the company actively participates in a program to educate local companies in the new technologies, the countrys industry will not really benefit. TNCs are not going to share too much information. If the local industry competition will increase because of new knowledge TNCs have to compete even with the local companies. Transport: Advantages: The new TNCs mostly help to develop transport links around the company area. Disadvantages: Mostly serve only the direct roads, rails that needs of the company, not the surrounding area as well. Employment: Advantages: They create jobs opportunities for the NICs domestic employees. Disadvantages: Most of the jobs opportunities are highly skilled so the company uses their own people to do the work. Because of the technological environment of these companies. Remain less jobs opportunities. Urbanization -launching a TNC in a city in NIC does encourage urbanization. Young migrant workers gather to the city. It influence to the rural communities their development Environment/Safety: Advantages: Companies bring with them the environmental friendly technologies expertise to decrees harmful pollution establish a safe working environment. Disadvantages: a lot of TNCs have very bad history on pollution and worker safety. They have been complained of trying to cut both safety of working environment and environmental pollution in order to keep costs down. . Overall impact to the Economic growth Development of NICs can be potentially promoted by transnational corporations through their activities that generate economic growth. Some evidence exists that the foreign exchange and foreign direct investment that TNCs provide can improve the performance of the economy of the NICs which they operate in. The process of economic growth is impacted by the TNCs through influencing the quality and amount of new capital formation, transfer of soft and hard technology, expansion of trade opportunities and the development of human resources. Further, Such as Province of China, Taiwan, and South Korea demonstrate, that under some conditions economic growth can foster social development. For example in Taiwan, enormous growth of economy has been combined with increased educational levels, longer life spans, improved health conditions, advanced housing conditions, political liberalization and enhanced civil liberties. Theoretically TNCs can uplift the development of the NICs society by fostering economic growth; practically this relationship exists for two reasons. Mainly, in the host countries it is not clear whether transnational corporations are really responsible for the growth of economy. In the most recent two notable cases related to economic transformation, Taiwan and South Korea, a negligible role was played by transnational corporations. Further, TNCs actually have the ability to prevent NICs local economic growth by running local entrepreneurs out of the business zone, along with the importing of main goods and services, reducing large amounts of the profits from their local NICs, and transferring royalties and fees to the main companies which are located away from the host economy. Secondly, even if the economy of the NIC is not developing, there is a tenuous relationship between social development and economic growth. Even though there is an global economic growth annually, it is yet hard to prevent the problems of poverty, unemployment, inequality in wealth, and such other issues of social malaise. For example In Cote dIvoire, from 1960 to 1975 the TNCs could have helped to foster aggregate the growth of the economy, they did only a very little to uplift the development of the society: increase in unemployment, income distribution expanded and nationals increasingly started losing the control over the industrial capacities of the country. In some, under some circumstances TNCs can act as the engines of growth of economy, the power of economy is very rarely harnessed to the achievement of development. Overall impact to the Environment Transnational corporations can have a negative impact through a demotion of resources in the environment to the social development. And over the past ten years such entities had been responsible for environmental disasters. For an example, Union Carbide in Bhopal, India, Exxons Valdez spill off Alaska, and Texaco in Ecuador. To a group of environmental problems TNCs have been linked. Fifty percent of the green house emissions are generated by them, in which they are responsible for global warming. Furthermore they are also the users of ozone-depleting chlorofluorocarbons (CFCs) and they are also producers of CFCs. Explaining further, transnational corporations are responsible for the pollution of land, air, wetlands, water and the oceans. Ultimately, through their mining activities and commercial logging, there is a contribution to deforestation by the TNC. For example in the mid-1980s, there was a control of 90per cent of the logging by the foreign corporations in Gabon and in Congo it was 77 per cent. As a result of such mining and logging negative effects such as flooding, loss of topsoil rapid run-off of rain have occurred; Farmers are economically not in a rich status to buy the land from forest owners and usually TNCs dont internalize such social costs. Hence such negative externalities cannot be p revented. The relationship between TNCs and the environment is massively complex even though transnational corporations can definitely obstruct social development through their environmental practices .But yet the Critics dont mention that consumption of environmental resources should be abstained by transnational corporations, instead they should promote sustainable growth and development via their activities. In the meantime there is a practice by the TNCs to follow demoted environmental standards in the developing countries with comparison to the developed countries; and it is found with evidence that environmental practices are more responsible in developing countries than in local firms functioning in such countries. Nevertheless, critics emphasize that, as a result of having better resources they have better access to research and development, It is the responsibility of the TNCs to promote environmentally sustainable practices and they bare that responsibility. Some companies undergoing so much of pressure have started to follow more environmentally responsible policies. Example, a maligned polluter named Dow Chemical, had to establish one-and-a-half days each session with the environmentalists brief senior management quarterly. The salary of the manager was pegged to the goals of the environment, and a toxic release of 32 per cent between 1988 and 1991. Further some laudable environmental practices were also implemented by the IBM including rewards for the employees for technical innovations which helped to comply with the environmental standards. Finally 18 environmental awards were won by ATT since 1990. On the other hand, expect these three companies majority pillage to consume environmental resources from the countries that are developing and they consume these environmental resources in a destructive and unsuitable manner. practices which certainly hamper prospects for social development. Some of the companies that involves in issues related to the environment are General Electric and DuPont, for example, Dupont was responsible for toxic chemical releases in 254 million pounds during the period of 1991 in the United States , and this has led to minimize such practices that destroys environment. e.g. In December 1984, one of the worlds worst industrial disasters occurred in a Union Carbide plant in Bhopal, India. Poisonous gas leaked from a negligently maintained chemical factory killing 3,000 and injuring over 200,000. See Reinhold (1985), Lueck (1985) and Everest (1985). An Exxon ship called the Valdez crashed off the coast of Alaska, spilling thousands of gallons of oil into the ocean and killing large amounts of marine life. The company untruthfully maintained that the oil spill had caused only minor damage and that the oil spill had been satisfactorily neutralized (de George, op. cit., p. 5). Conclusion -s-cool.co.uk. (). Geography GCSE: Industry. Newly industrialised countries: South Korea. (), . http://www.s-cool.co.uk/gcse/geography/industry/industry-in-the-developing-world.html

Experiences with Faith Essay -- Catholic Christian Theology

What is faith? Faith is something different to everyone. If you asked a hundred different people, you would get many different answers. Faith holds an extremely complex meaning when discussing it in the context of religion. Faith is a belief. It holds true to every religious and non-religious person. Every faith involves a decision. It is not about what we claim to believe, but what we actually do believe, that is true faith. "Trust in the Lord with all your heart, And lean not on your own understanding, In all your ways acknowledge Him, And He shall direct your paths.† Proverb 3:5-6 That has to be my favorite proverb from the bible, whenever I feel like screaming â€Å"Why Me†, I simply play that proverb in my head and just tell myself that God has a plan for everyone. My Catholic faith is very important to me and I hold it very dear. I go to mass every Saturday night at 4:30 at St. Pats. I feel going to mass is a way to talk to God and I feel the closest to him during mass. At mass I feel like I am deepening my relationship with God. I look to God as a role model and I d...

Illegal Immigration in America Essay -- Cons of Illegal Immigration, Im

Illegal Immigration in America America's past is made up of immigrants who have came and formed our country. However illegal immigration has now plagued our economy. What happens when you allow millions into the country, both legally and illegally? Exactly what is happening today? You have tens or hundreds of groups, made up of various nationalities, from various places. Forming themselves into isolated communities, and then trying to get the country to change for them. This paper confirms detailed information on how America is being altered by mass immigration and by uncontrolled illegal immigrants. Americans like to believe that people should have the chance to better themselves. That is why people come to the United States to make things better for themselves. They come here to ha...

Immigration Needs to be Restricted in America Essay -- Argumentative P

Immigration Needs to be Restricted in America Illegal immigration will cost the United States $280 billion dollars from 1995-2004. And that only counts for the immigrants that enter this country illegally. What of the legal immigrants that come to the United States and find it harder than they thought it would be? Most of these immigrants just go on welfare. Legal immigrants participate in 20.7 percent of all welfare programs while native citizens only participate in 14.1 percent (Borjas). This costs the American public millions of dollars every year. At the turn of the century 40 percent of immigrants that came through Ellis Island had to go home. If the immigrants can't handle the work force, there is nothing for them to do but fall back on welfare (Lind). Opposing statistics show that Americans use welfare more than immigrants do. This argument doesn't work for the simple fact that most immigrants haven't been in this country long enough to qualify for Social Security. Therefore we must use the other data which clearly shows that immigrants use welfare more. Another problem that has risen from immigration is crime. In 1986, 28 percent of the arrests for drug possession were illegal immigrants (Stacy). This may not seem like an overwhelming number, but just think if the United States could drop drug trafficking by 28 percent this would be a tremendous step forward. The immigration problem has gotten so bad on the Mexican American, border, that the border patrol have what they call " War Wagons" which are armored vans with bulletproof windows. Guarding a border of a nation that we are at peace with should not be that big of a problem. Most immigrants that enter the country both legally and illegally are trying to fin... ...osing Viewpoints. San Diego: Greenhaven Press. Inc. 1998 pp. 84-88. Lind, Micheal. "Legal Immigration Harms American workers" Bender, David L. Immigration: Opposing Viewpoints. San Diego: Greenhaven Press. Inc. 1998 pp. 79-83 Borjas, George. "Immigrants Abuse the Welfare System." Bender, David L. Immigration: Opposing Viewpoints. San Diego: Greenhaven Press. Inc. 1998 pp. 97-102 Stacy, Palmer & Lutton, Wayne. "Illegal Immigrants Cause Crime." Bender, David L. Immigration: Opposing Viewpoints. San Diego: Greenhaven Press. Inc. 1990 pp. 90-95 Martinez, Roberto. "Illegal Immigrants Are Victims of Crime." Bender, David L. Immigration: Opposing Viewpoints. San Diego: Greenhaven Press. Inc. 1990 pp. 96-99 Lamm, Richard D. "The U.S. Should Limit Immigration." Bender, David L. Immigration: Opposing Viewpoints. San Diego: Greenhaven Press. Inc. 1990 pp.105-112

Education Disparity

Education disparity I consider the education the most important thing. This Is the Inducement of everything. It is the basis, the key of everything what then you can rely on. The Inequality in the education was always an Issue everywhere in the world, where a minority is exist. Not just in the developing countries, for instance Africa, but in the developed countries too. The lack of good education is I think the first issue facing various societies all over the world.A good education, which is not reached of veryone, provides the children for have good chances in the life, to be successful, to be able to compete In the labor market and to get a good Job. Those who do not have the oopportunity to learn in the same circumstances, because of the discrimination based on race or financial status, without education they will not be able to cope with the others, so it's a vicious circle.The state, which not support the social mobility and the government which not make enough effort for the integration cant be succeed, because think, the state's aim is to have well educated, occupied citizens to be able o develop. The state should not grudge the money for these Integration programs and for the education, because these educational differences cause mostly the problem between the minority and majority. It's something which Is completely solvable; we Just should deal with it. I would like to introduce an example from Hungary. Here, there is a very big gipsy minority which causes a big problem in the country.People Just can not keep saying that they do not work, they do not study, they do not pay the taxes. But why they do ot work? Why they do not study? May because they do not have the same oopportunity to do It, because there are segregated schools and they not treated the same like the others. I was volunteering in one of these segregated schools in Budapest, where Just gipsy kids were studying. After school on Fridays I went there and I tutored some of these kids, help ed them to learn reading, counting, I prepared them to a performance. I saw the circumstances where they were learning, their teachers, their parent's, their possibilities.If you live in a poor neighborhood, or you are a member of the minority, It's expected that the school you attend are lacking many necessities. This issue is also in connection with the racism, and I would like to come up with Jane Elliott's -blue-eyed/brown-eyed† experience. If there is an prejudice from the minority, that for instance they do not study and work, after a time they will act according to the prejudice. So if people say that the minority do not want to work and study, and people do not do anything against this (they do not give the opportunity), the minority will accept that situation and they will act like the prejudice.The break-out Is very hard, because the paren'tal education and behaviors really affect the cchildren's future. The disparity is also manifest itself in financial differences. The poverty in many cases also do not have the same opportunities like the others, however they are the 1 OF2 think it does not premote social equality as effectively as it should. In many cases there are very talented, enthusiastic sstudents who can not attend in the higher ducation because of the lack of money.I would pay much more attention to these problems. First of all I would create equality in the education to give the possibilities to everyone. I would invest more money to the education, because in long- term this is the key why a nation can be successful. It's something which is very profitable, because the education and the economy are sthrongly connected. Secondly, there should be more programs which premote the social mobility and the talented people. I would expand the economic foundation for the grants and sscholarship.