Personal factors Essay

Factors that affect the personal influences will be the age and stage at the life cycle, lifestyle, occupation, economic status, and personality (Bowens,et al, 2003). Marketers usually target a certain lifecycle stage or a certain age bracket for their products. Like Disney – movies, merchandise, television shows – which are usually targeting children and teenagers. However as the individual mature so are the buying preferences. Once a person acquires a job some purchases are shaped by that job like clothing, personal articles like bags and shoes. Also these purchases will be further fashioned by the income the person gets from the job. Some companies make their product income-sensitive by offering the same product in a different packaging or smaller size – budget packs – to be able to fit in certain income brackets (Marketing – Consumer 2008). Marketers are also concerned with how money and time are used by consumers or their lifestyle. This is to be able to know how to favorably present their product to their target consumers. Moreover, the personality of the person also comes into play in purchasing products. Usually, personality is how others perceive the person in socialization with them. However individuas also have their own version of personality called self-concept. This self-concept could be the same or different from the opinion of others. Advertisers use this idea in selling high-end cars to middle class consumers who wanted to project luxury (Principles of Marketing 2008). 2. 5. 4 Psychological Factors Motivation, perception, learning and attitude are the psychological factors that marketers look into to be able to develop better advertisements for their target consumers. Every person has needs that need to be fulfilled. These needs will transform into motives when the need becomes a powerful force that will compel a person to act (Consumer Behavior 2008). There are several theories about human needs but the most common is Maslow’s hierarchy of needs theory. Figure 3. Maslow’s Hierarchy of Needs Source: Chapman, 1995 According to this theory each need is hierarchical. One must fulfill the lower need before moving to the higher level. In addition if the reason for fulfillment of the lower need is gone the individual will not have the reason to satisfy the higher needs. For instance, a worker who is sick (safety needs) is not expected to perform well (esteem needs) (Chapman 1995). Now that the consumer is motivated to act upon the need his/her perception how he/she will act. Through perception a person creates an image of the world in his/her mind. This concept is essential to face-face transactions (Bowens, et al. 2003). Take for instance a salesman who speaks slowly and stutter, he could be perceive by the customer as someone is not an authority to the product and could lose the sale. Through our actions we experience the world and through these actions we learn. A person learns from past experiences or through thinking and things that we learn could modify our behavior or actions (Consumer Behavior 2008). Actions with positive outcome are usually repeated – repeat purchases – while actions with negative outcome are not (Marketing – Consumer). As this process cycle, doing and learning, individuals develop beliefs and attitudes. Beliefs are ideas about something that an individual holds as the truth (Marketing – Consumer 2008). While attitude is the constant position of an individual about a certain object or idea (Bowens, et al 2003). Companies use these concepts to be able to develop brand images based on consumers’ beliefs toward the company. Then try to fit the product to the consumer’s attitude rather than changing it.

China’s Threat to the United States Economy

For the last twenty eight years, China has been quickly growing into one of the largest economies in the world. China has accomplished this feat, in part, by radically changing their policies on trade and free market interactions with other countries. During this process, China has bought approximately one hundred trillion dollars of United States debt in the form of Treasury bills, notes, bonds, and Inflation Protected Securities (Amadeo). This debt has given China leverage against the United States which has enabled China to keep the value of the United States dollar high, while keeping the value of the Chinese yuan low. As the inflation of the dollar continues to negatively affect the United States economy, China has become an economic superpower. Recently, concern has risen that China is a threat to the economy of the United States. China has become a perceived threat to the United States economy because of the increasing trade deficit between the two countries, the ability to undercut production costs of similar products produced in the United States, and the amount of leverage that China has over the United States due to the amount of money that has been lent by the Communist nation. Trade deficits between countries are caused when a country imports more goods from one country than they export to that same country. In the case of the United States and China, there is approximately a two hundred and twenty five billion dollar trade deficit (Prassad). The United States imports nearly three hundred and thirty five billion dollars worth of goods and services from China, while exporting only a little more than eighty billion dollars worth of goods and services to the growing economic power (CRS). The disparity in trade between the two countries results in a flooding of Chinese made products that force their United States competitors to lower production costs. In many cases, lowering production cost of domestic products results in either the closing of these businesses or the outsourcing of jobs. Both of these cause the loss of jobs in the United States. One of the reasons that the United States has been unable to lessen the trade deficit is China’s ability to undercut production costs of similar products made in the United States (Elwell 27) China’s overall cost of living is much lower than their United States counterparts (Amadeo). Therefore, they are able to produce goods and hire labor at a much lower price. One of the main reasons for this economic statistic is China’s population. It is nearly three times that of the United States, giving China a much larger work force to produce electronics, automobiles, and clothing at a fraction of the United States production cost (CIA). Not only does this negatively affect employment in the United States, but it also impacts their ability to compete on the global market. Industries that involve manufacturing, such as automobiles, computers, and electronics have decreased by thirty four percent since 1998 (Prasad). This has a negative effect on the amount of goods that the United States can export. Finally, China has gained a certain amount of leverage affecting the United States economic policies, due in part, to the amount of money that China has loaned the United States. Starting in the early 1980’s, every time the value of the dollar would drop, China would buy Treasury bills, notes, bonds, and Inflation Protected Securities to keep the dollar stable in value (Elwell 36). After nearly thirty years of this practice, the United States has come to depend on Chinese loans to maintain its currency value and China has come to own a majority of United States debt. This imbalance of debt has created a number of different scenarios that could bring about potential political and economic problems for the United States. China could theoretically cash in their treasuries and bonds tomorrow, which would cause the United States dollar to suffer massive inflation. While this scenario is not necessarily in China’s best interest right now, the possibility should concern the United States government. Instead, China could use their debt leverage to impact foreign trade policies and more importantly domestic political policies that budget how the United States spends its tax dollars (Elwell 22). China has become a perceived threat to the U. S. economy because of the increasing trade deficit between the two countries, their ability to undercut production costs of similar products produced in the United States, and the amount of leverage that China has over the United States due to amount of money that has been lent by China. Although the United States has taken steps to close the trade deficit, such as convincing China to raise prices on their exports, there is still a considerable gap (Prasad). The United States government continues to print money that they simply can’t afford, therefore, relying even more heavily on China sustaining the value of their currency. Unless the United States is able to close the trade deficit and regain control of our economic flexibility, the problems caused by foreign countries owning our debt will remain eminent.

Bibliography- Essay Example | Topics and Well Written Essays - 750 words

Bibliography- - Essay Example The Geneva Conventions basically constitutes of international humanitarian regulations that seek to control the behavior of soldiers during armed conflict. Durham, Helen.  The Changing Face of Conflict and the Efficacy of International Humanitarian Law. The Hague u.a: Nijhoff, 1999. Print. Why did it come about? During the First and Second World Wars, prisoners from different nations across Europe were taken captive and brutally mistreated. The Second World War is perceived by most to be the worst war in history in terms of civilian casualties. The fact that so many innocent people in so many nations suffered from unspeakable brutalities inspired the proposals concerning respecting human dignity in the Geneva Convention. The source describes the fact that many countries were concerned about the cruelty meted out on defenseless men as well as civilians and began looking for ways in which they could maintain basic human dignity even in times of war (Durham 34). The Geneva Convention was the result of joint musings between nations on the right way to address violations of human rights that were common during war time. What is its purpose? Focarelii, Carlo. â€Å"Common Article 1 of the1949 Geneva Conventions: A Soap Bubble?† The European Journal of International Law 21.1 (2010): 136 The Geneva Convention binds all the states that signed it to a pledge that states that all civilians as well as prisoners of war captured in their nations in times of conflict shall be treated humanely. The source describes the Geneva principles as regarding the maintenance of the sanctity of human life were immediately accepted by the attending nations (Focarelli 136). This agreement essentially allowed the nations that signed it to pledge their agreement to ensuring that civilians as well as prisoners of war in any future conflicts would have their basic human rights respected. There were further endorsements by more than one hundred nations during the 1950’s and 60â €™s. The disintegration of the USSR during the early 90s would bring additional ratifications. The source further states that it is vital for all nations to understand the different policies that they have to ratify in order to implement the policies that were agreed upon during the Geneva Convention in 1949 (Focarelii 136). In the Geneva Convention, the member nations basically swore to maintain the prisoners of other nations in the best circumstances possible. To this day, it is basically this pledge of both negative and positive reciprocity that upholds the significance of the Convention. Have all nations upheld the Geneva Convention? Bennet, Angela. The Geneva Convention: The Hidden Origins of the Red Cross. London: Sutton Publishing Ltd, 2005. Not all nations have maintained this promise, but most nations actively work towards ensuring that they follow all the statues of the Geneva Convention. Apart from seeking to maintain human dignity, the convention also introduced equa lity in the treatment of different peoples. The source affirms that in the Second World War, American prisoners captured by Germans were often treated better than those of the USSR (Bennet 124). This trend was quite common in

School Uniforms Essay Example | Topics and Well Written Essays - 750 words

School Uniforms - Essay Example If uniforms are not made mandatory, rich students would look down to the poorer students as it gives a chance to them to show-off their wealth. Therefore introduction of uniforms will help to deal with this problem. Therefore there will be no economic differences among the students in the schools. Uniforms will also decrease the violence among students in the students. When students wear the same type of dress the probability of group formation or gang behaviour would be minimum. Uniforms would make schools a safer place for students especially the underprivileged one. Schools uniforms can save much of the time of students because they don't have to waste time in choosing which clothes to wear. Choosing of clothes seems to be a small thing but this really is a big task and consumes actually a hell lot of time. Not only this, we should also consider the time which they spend in malls in order to find the perfect dress. And if the school goers are able to save this time they can concentrate on more important thing like completing their homework or having breakfast. Having uniforms in school would stop the discrimination and teasing on clothing but there are many things to discriminate or tease rather than only clothing like personality, race, colour to name a few. Richer students can tease or look down on the poorer students by having a costly watch or an expensive bag. ... Richer students can tease or look down on the poorer students by having a costly watch or an expensive bag. And therefore uniforms cannot prevent the discrimination or the economic differences. It is only the education which the students get from their parents and teachers which will help them to avoid discrimination on the basis of sex, creed, religion, race or colour. Many feel that making uniforms mandatory would end symbols of being in a gang. But they should understand that there are many ways through which students can show that they belong to a particular gang like rolling up your sleeves or having a band on the hands. Therefore uniforms cannot to a large extent avoid gang behaviour. If uniforms are not made compulsory students can begin to develop their own personal style and they can be more mature. Students will be given the opportunity to decide what they have to wear and therefore this will inculcate the habit of decision-making among the students. Making uniforms compulsory actually violates a student's right of self-expression. The personality of a person (to some extent) is reflected by the clothes he wears so if the students are allowed to choose the clothes which they have to wear they will have an opportunity to express themselves. CONCLUSION Though there are umpteen numbers of arguments both in favour of as well as against making school uniforms mandatory but I personally feel that making school uniforms compulsory would be more effective and efficient in promoting uniformity and equality, in avoiding violence and gang behaviour, in avoiding discrimination on the basis of sex, creed, religion, colour etc and

The effacts of poverty on children living Essay Example | Topics and Well Written Essays - 250 words

The effacts of poverty on children living - Essay Example Therefore, children from poor backgrounds lack the necessities to ensure success. In other instances, the poor parents lack the capacity to offer their children the conditions for success such as books (Ferguson & Mueller, 2007). Poverty causes psychological challenges to the children. The challenges result from parents inability to afford childrens basic needs. The situation in turn lowers their concentration level in class. Therefore, such condition makes children from poor families to score low grades in communication skills, use of vocabulary and knowledge of numerical. In addition, poverty also causes segregation among school going children. Therefore, it affects the nature of relationships and corporation among children from different social classes (Ferguson & Mueller, 2007). Parental unpredictability and change of caregivers are challenges in the poor neighborhoods. They arise because the parents take multiple and inconsistent jobs to support their families. Therefore, they contribute to declining performance among their children because they lack role modeling and supervision. In most instances, these children engage in bad social activities such as theft. Lack of parental guidance and role modeling breeds a culture that is unaware of benefits of schooling (Ferguson & Mueller, 2007). Hence, poor environments adversely affect the cognitive, social, and academic performance of

Stranger Essay Example | Topics and Well Written Essays - 2000 words

Stranger - Essay Example Also it is acknowledged that every city has a character of its own and to understand a city, we have to understand its character and the contributing factors for that particular character. This is mainly trying to understand the cities, its mobility, movement and settlement and the connected tensions. It is interesting to analyse what exactly is a city. It is a beehive of transactions, a centre of old and new buildings and heritages, leading to nostalgia and modernity, a mobile point in geography where everything seems to be moving, changing and altering at a highly intense pace and nothing static anywhere. If a city has to be watched, it should be done by stepping back, removing self from the humming mainstream and watch it like a hawk in the sky and then the right perspective of the city emerges. The picture presented is stunning in its originality and every piece of it is melting only to solidify itself into another shape, colour and form. Hence, the watcher finds pre-diluted forms, diluting material, half diluted forms, fully diluted shapeless mass, half-formed pictures and then, totally altered new forms. It is a thriving enormous pulsating mass of various puzzles that are always on the move, anxious to attain the next form. For a stranger, city presents this confusing and p uzzling picture. The seemingly unruly aggressiveness of the society and its presented disorder threatens him. Mostly it is an outside pose and need not be true. "Constructions of 'disorder' and 'order' are inextricably linked, and in any given urban context they frequently appear as 'idealized imageries'. However, it is only in the company of strangers in city spaces that they are symbiotically realized," (Pile et al, p.135). City cannot have one geography or one history because it is a synthesizer of multiple geographies and histories. It is a merger of various backgrounds and diverse activities. It is also a tantaliser with new possibilities and newer interactions. It is true that cities could be understood and characterised only through their historical, social and global context and not individually removed and isolated. City has to be filled with myriad flows and connections like people, ideas, cultures, rituals, principles, social priorities etc. and only then as a mixture of all these interconnections it could be analysed. Cities do not shake off their history easily. Even if they attain hitherto unrecognised proportions, its history can be recognised in every corner of the city. "There are strong echoes of the past which remain forceful in representations of urban disorder which are dominant today through, for example, notions of 'dangerous classes' such as 'out of place'" (Pile et al, 1999, p.88). A stranger coming into a certain city could be a city dweller, belonging to another city, or an individual based in a rural community and hence, his reactions would be different to the city life depending on his own background. He could either be comparing it with his earlier city favourably or negatively and this would prejudice his outlook and adjusting capabilities. If he is from a rural region, his reactions would be of wonder, loathing, contempt, surprise and amazement. He might even feel threatened by the all-consuming power of the city, because cities have their own

Internet Article Analysis Essay Example | Topics and Well Written Essays - 1250 words

Internet Article Analysis - Essay Example In the case of the two articles analyzed, both of them have focus on the first aspect mentioned above, the control of what happens in the environment. As we can see one of the articles is closely related to the Car Industry and the other to Telecommunication Industry. Both the Hybrids cars and the VOIP services are trends that are being consolidated in the market, and are opportunities as well. According to the article (Schoen 2006) that talks about "The future of the auto industry", U.S. sales of hybrid vehicles roughly doubled in 2005. And additionally, based on HybridCars.com the hybrids cars sold have increased from less than 10,000 in 2000 to more than 200,000 in 2005, which means that is only about 1 percent of the roughly 17 million cars and light trucks sold overall. On the other side, based on what the article (Alexander 2006) "Forecast 2006: VoIP" talks, 2006 will be the year VoIP becomes widely adopted. "The big advance will come in corporations rather than the government sector," Wolfe predicts (CIO for the state of North Dakota). The facts mentioned made these two trends quite relevant to economics and managerial decision making. Managers can make immediate improvements in performance by better matching the firm's strategy to its business environment. As any manager should recognize, conditions change over time, so that strategies that are appropriate to today's business environment may be inappropriate in the future. 2. How economics influences the decisions made by those in charge The link between the decisions managers control and a firm's profitability is mediated by a host of economic relationships. The success of any strategy depends on whether the firm's decisions are compatible with these relationships. The most basic is the law of demand. The law of demand says that, all other things being the same, the lower the price of a product, the more consumers will purchase it. Whether the increase in the number of units sold translates into higher sales revenues depends on the strength of the relationship between price and the quantity purchased. This is measured by the price elasticity of demand. Price-elastic demand implies that a price cut translates not only into higher unit sales, but also into higher sales revenue. That firm's higher sales revenue translates into higher profit depends on economic relationship between the additional sales revenue that a firm's price cut generated and the additional cost of producing more products. That profits rise rapidly after the price reduction suggests that the additional sales revenue far exceeded the additional cost of production. Applying the economic analysis of strategy to what the article of Auto Industry informs, the added cost of a hybrid compared to a conventional gasoline-powered vehicle makes these cars to follow a premium price,

The Rhetorical Situation Essay Example | Topics and Well Written Essays - 750 words - 2

The Rhetorical Situation - Essay Example The audience influences the way the author writes, the phrasing of words, and even the genre that will be used. Since the audience influences the direction the writer will have to take, it is essential for the writer to know his audience, and understand them well. All writing is driven by a reason or purpose. There are many reasons that a writer could have for writing, and therefore, it is important for the writer to be clear on why he is writing. Clarity for the purpose of writing will help him structure the writing in a manner that achieves the intended purpose. The expectations of the audience also affect the purposes of writing. Stance is the attitude that the writer has towards the material in the writing. The stance adopted by the writer will shape, and be evident in the tone used. The stance of the writer will influence the perception of the audience on the subject matter. The stance of a writer is indicated by the choice of words in writing. The relationship between the audience and the writer will influence the position taken by the writer. The genre is the type of text that the writer uses. It could be a short story, a poem, or any other literary writing form the author deems appropriate. Each genre will have specific structural requirements that the writer has o adhere to if he is to be effective in his writing. There are some genres that require certain tones, organization, or strategies for them to be effective. In considering the media/design in writing, the writer looks at the route that will be used to reach the audience. The media may be verbal or non-verbal, technologically advanced or remote. Every media will have characteristics that make it distinct, and they have to be followed if the media is to be effective in reaching the audience. The design involves the close look at the elements of the text that might need to be designed.

Marketing project Term Paper Example | Topics and Well Written Essays - 1750 words

Marketing project - Term Paper Example Proctor and Gamble produces one of the most popular laundries Detergent known as Tide. The brand was initially marketed and promoted in its current shape in the year 1949. The washing powders were introduced during 1880s which changed the way the laundry was done in the household chores. The new products of doing laundry were only the spewed soap. After various other manufacturing companies and brands, N.K.’s Fairbank Company’s Gold Dust Washing Powder and Hudson’s Rinso, the alkyl benzene sulfonates brought further revolutions in the business of detergent (Eduard, Wolfgang, 2002). When mixed with the utilization of chemical "builders", they made it possible for the household to machine wash the fabric with hard water. Thus, Procter and Gamble got the opportunity to launch "Tide" which later became one of its popular brands. The laundry detergent, Tide, is an imitation which is specifically designed for the machine cleaning which is heavy-duty. First launched in United States, Tide was test marketed in the year 1946 as the first heavy-duty detergent in the world; ands was nationally distributed in 1949. The product claimed to be "Americas Washday Favorite." It was able to gain quick authority in the detergent markets of the US, UK and Middle East. Along with that, Tide dwarfed the sales of Rinso, Ivory Snow, and Gold Dust Washing Powder and caused their demise. Later, the brands were introduced in more familiar soap-flake and soap-powder forms. However, Tide is the only brand that was initially launched with the shape of white powdered bead. Afterwards, the product line of the brand was enhanced to comprise of a clear orange-tinted liquid in1984. Currently, various forms of the liquid Tide exist in dark blue, except the "Tide Free", which is clear. The development of Tide, in the year 2006, was nominate d an ACS National Historical Chemical Landmark in acknowledgment of its

Treasure of the Sierra Madre Book versus Film Essay

Treasure of the Sierra Madre Book versus Film - Essay Example This makes the storyline more interesting as it captures the viewers’ attention more. Many screen adaptations and ancillary elements are also culled for the movie (Huston). The elements which are regarded as the factors which led to the oppression of the native Mexicans, establishes and provides a persuasive and unifying theme that is more intense than it is in the novel. This gives an interesting and enriching counterpoint to the story of the main and central characters. The novel depicts a more forceful, unpretentious and sophisticated political awareness than the film. This is because the film mainly focuses on the adventures and forgets about the finer details of the situation. The novel is also easier and more interesting because of Traven’s writing style. He is very straight forward and keen on giving details. This makes the novel to be more convincing and moving than the movie. The detailed portrayal of the Mexican society seemed to be accurate in the novel than in the movie. The parallel between the Mexican oil field workers and the gold prospectors gets shown more clearly in the book. Also in the book one gets an understanding how they came to exist. In the movie’s train robbery scene, the bandits led by Hat, attack the train but they were fought off by the passengers including Howard, Curtin and Dobbs. In the book, Howard, Dobbs and Curtin never met Hat until where he said, â€Å"I don’t have to show you any badges† (Traven 205). When McCormick cheated Curtin and Dobbs of their wages they confronted him. In the novel he pays them without a fight after he discovered that they had intentions to beat him up if he failed to pay up. In the movie they attacked and beat him up before taking the amount of money that he owed them (Huston). This proved that they were honest men as they could have taken whole the money that McCormick had. This scene was the one that made the movie more eventful and interesting.

Make Educating Girls a Priority Essay Example for Free

Make Educating Girls a Priority Essay The article emphasizes on providing education to every eligible girl in sub-Saharan Africa and South Asia. It highlights that a girl who takes birth in South Asia or sub-Saharan Africa has to undergo desperate hardships such as poverty, disease, war or famine. Apart from that, she will also have to confront the disadvantage of being a girl. There is no culture, country and continent that are destitute of inequality. The root cause of girls not getting education is the cultural norms and economic hardships, which parents face. There is a norm of single-sex schooling in poor Muslim countries like Pakistan, Yemen, and Morocco and in the problem is that rural areas of those countries can afford only one public school that can be set for girls only. The inequality between girls and boys exist heavily in South Asia and Sub-Saharan Africa and almost all of those countries come under the category of Least Developed Countries (LDCs). One way for these countries to head towards economic development is by making educating girls a priority. Making separate schools in places where girls and boys are educated separately is one solution. It is believed that by building girls schools, the education gap can be eliminated to a great extent. Policymakers can strengthen the incentives for parents to send their daughters to school by setting the no-fee policy. However, in economics, nothing is for free. There is always someone or something that pays for it. A no-fee policy may be brought about by taking a portion of the peoples taxes. Another thing the policymakers can do is provide stipend for girls who enroll in girls school. This would surely increase the girls enrolment rate as the graph below indicates that the fall in fees from f to f1 will lead to an increase in the enrolment rate from e to e1. Providing every eligible girl in South Asia and Sub-Sahara Africa would contribute towards the countrys development because major studies of growth conclude that improved knowledge, higher efficiency, and better education play a vital role in the functioning and productivity of an economy. The World Bank has pointed towards human development which they believe better education, and family planning can promote development as effectively as capital investment in physical plant. As the article states that 99% of the 529,000 women who die annually from pregnancy related hurdles come from developing countries and the reason for that is the lack of education for women in those countries. Uneducated women do not know the severe malnutrition and prenatal care during pregnancy which puts both the child and the mother at serious risk. Expenditure on human capital better educated, health, and nutrition tends to reduce birth-rates and infant mortality. The women will be educated and will be able to effectively take part in family planning as she will be aware of the consequences. Having a controlled population means a positive result in the GNP per capita which is the result of subtracting the population growth rate from the GNP growth rate. Educating the girls will privilege them to be able to raise their child effectively in a civilized manner. Educated women will be aware of dangers such as HIV/AIDS, poor sanitary habits and poor dietary habits. So basically they will be aware of the environment around them and above all they will know their rights and therefore fully stand up for themselves. So, educating the girls would not only benefit themselves but the society as a whole as well. So education helps the overall population and on a larger scales the whole world. Apart from giving a country an efficient work force, education makes the individual able to read, write, and communicate. When the people in a society are capable to bring forth their views, opinions and debates, it brings a social change and the changing attitudes of people may achieve a number of developmental aims. Providing education to the girls would also add to the countrys labor force which would definitely lead to an increase in economic growth. Therefore an economic development would shift the countrys Production Possibility Frontier (PPF) curve to the right as shown in the graphs below. In my opinion, I would say that providing education to girls in South Asia and sub-Saharan Africa by building single-sex schools is a much appreciated step because of the numerous benefits it will contribute to the world. However it has to be taken into consideration that in some parts of the world providing co-education is unacceptable for example the northern areas of Pakistan. Therefore single-sex education will be a much better choice as it will be acceptable and also appreciated. However, single sex education is said to be not as beneficial as the co-education because in co-education pupils of both gender get to interact with each other and learn much more than they can in single education. But single sex education will be the only choice that can be perused in areas where co-education is not allowed. Although building single-sex schools will have an opportunity cost as the government will have to sacrifice something in order to afford the cost of building schools, but I would say it is all worth it. When the girls of a country are educated they will definitely add to the countrys work force and educating girls means educated women in the country which means that they will know how to properly raise their children and nurture them. There are many benefits which the country will have from providing education to the girl. There are short term benefits as well as long term benefits. More emphasis will be on the long term benefits as you know that it will take time before the women of the country will all be educated and it will take time to have an impact of providing education to girls on countrys women literacy rate. I also found the idea proposed in the article by the policymakers about handing the money to the mother of the school-going girl, instead the men. Handing the money to the women is a very effective and well-thought idea as mothers are more concerned about their childrens health and nutrition.

The Impact Of Outsourcing On General Electric

The Impact Of Outsourcing On General Electric The report aims to highlight the impact outsourcing has had on General Electric Company. This paper analyzed GEs decision to have multiple outsourcing partnerships. The paper also discusses the impact that outsourcing will have on US economy in general. The first part of the paper reveals how outsourcing has led GE to be a cost efficient, productive and profitable company. The findings outlined factors such as the success of GE Real Estate in Mexico. It also outlined GEs successful steps in India in order to source products, services, and intellectual talent from India for its global businesses. The next section of the paper discusses GEs decision to have multiple outsourcing partnerships. It discusses the strategies of successful multiple outsourcing and consolidated it with GEs steps of outsourcing its businesses in different countries. In the last section the report elaborates different impact will outsourcing have on US economy. It contrasted the brighter side of outsourcing such as $100 worth of work sent abroad by U.S. companies; $130 to $145 will be reinvested in the U.S. economy. It also reveals the downside as it discusses how sending jobs abroad can affect American job market. 1.0 Introduction 1.1 Background General Electric is a diversified technology, media and financial services company focused on solving some of the worlds toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and industrial products, the company serve customers in more than 100 countries and employ more than 327,000 people worldwide (General Electric Company, 2008). GE is made up of four businesses, each of which includes a number of units aligned for growth. Its four global research centers attract the worlds best technical minds. With more than 3,000 researchers working toward the next breakthrough, GE is positioned to continually innovate, invent and reinvent (General Electric Company, 2008). GE was founded by Thomas A. Edison, who established Edison Electric Light Company in 1878. In 1892, a merger of Edison General Electric Company and Thomson-Houston Electric Company created General Electric Company. GE is the only company listed in the Dow Jones Industrial Index today that was also included in the original index in 1896 (General Electric Company, 2008). Through outsourcing, which is defined as the procurement of products or services from sources that are external to the organization (Lankford Parsa, 1999), GE established itself in more than 100 countries. It was one of the largest foreign investors in Japan, had an enormous presence in Europe, employed more than 20,000 in India, and was widely present in Latin America (Vietor and Veytsman, 2007). 1.2 Aims The purpose of this report is to evaluate the impact that outsourcing has had on GE. It focuses on the American Outsourcing journal by Vietor and Veytsman (2007) in order to determine the impact that outsourcing will have on the US economy in general. 1.3 Scope The report investigates how outsourcing has impact on General Electric. The paper focuses to analyze the companys decision to have multiple outsourcing partnerships. It evaluates the firms operation in Asia, India, Latin America, and Europe and how it affected the organization performance metrics, cost-efficiency, productivity and profitability. The report also analyzes the impact that outsourcing will have on the US economy. It evaluates the impact that outsourcing will have on US workplace and also how outsourcing creates value in the US economy. 1.4 Methodology The report has used various books, e-journals and websites. 1.5 Assumption It is assumed that information collected for the purpose of the report is correct and relevant. 2.0 Discussion 2.1 Outsourcing Outsourcing is a fashionable way of solving some business problems and there are numerous reports of its increasing use. Initially used primarily for information technology, a wide variety of business process is now outsourced. The use of outsourcing is becoming more sophisticated; more organizations are outsourcing responsibility for business processes (Beaumont Sohal, 2004). For services, outsourcing usually involves the transfer of operational control to the suppliers. In the current environment of right-sizing, with a renewed focus on core business activities, companies can no longer assume that all organizational services must be provided and managed internally. Competitive advantage may be gained when products or services are produced more effectively and efficiently by outside suppliers. The advantages in outsourcing can be operational, strategic, or both. Operational advantages usually provide for short-term trouble avoidance, while strategic advantages offer long-term contr ibutions in maximizing opportunities (Lankford Parsa, 1999). It is estimated that every Fortune 500 company will consider outsourcing during this decade and that 20 percent of them will enter into a contract by the end of the decade. A variety of firms already exhibit this trend. General Electric Corporation has entered into a five-year, $500 million contract with Electronic Data Systems (EDS) to handle the corporations desktop computer procurement, service, and maintenance activities (Behara et al., 1995). A recent study indicates that outsourcing operations is the trend of the future and that organization already outsourcing activities are pleased with the results. A year-long international study by Arthur Andersen and The Economist Intelligence Unit finds that 93 percent of corporations interviewed plan to outsource in the next three years. Of those that already outsource, 91 percent are satisfied with the results (Struebing, 1996). The next section of the paper will evaluate th e impact that outsourcing has had on General Electric and analyze their decision to have multiple outsourcing partnerships. 2.2 Outsourcing Impact on GE Based on transaction cost theory, when a firm has already integrated its operational functions, the decision to outsource such functions to the market should be made if it is necessary to create or protect firm value. By outsourcing tasks to specialist organizations, firms may better focus on their most value-creating activities, thereby maximizing the potential effectiveness of those activities. In addition, as outsourcing increases, costs may decline, and investment in facilities, equipment, and manpower can be reduced (Jiang, Frazier Prater, 2006). Cost efficiency remains the primary explanation for outsourcing. Firms evaluate outsourcing to determine whether current operating costs can be reduced and if saved resources can be reinvested in more competitive processes (Jiang, Frazier Prater, 2006). For example GE Mexico was GEs largest operation outside of the United States. GE worked closely with the Mexican government to make sure that their target of 6% productivity growth was met. Some of GEs businesses in Mexico were clear winners. For instance, GEs Real Estate sector was a clear winner, with over $1 billion in financing in Mexico. GE had thus become Mexicos top real estate lender. Mexicos languages Spanish and English facilitated business relationships with GE USA. Technicians from America could visit Mexico to work on system and technological improvements. Doing so in China, entailed greater expense and significant language difficulties. Even for a phone call, China was 12 hours away (Vietor and Veytsman, 2007). By carefully choosing what to outsource, the buyer is able to focus its core strength, that is, the specific talent, skills and knowledge sets that differentiate the company from its competitors and give it an advantage in the eye of customers (Simchi-Levi, Kaminsky Simchi-Levi, 2003). For instance China exhibited a synergy between customers and markets in the areas of electronics, telecommunications, transportation, and healthcare, among others. Metalwork, small appliances, and tooling were other examples of successful sectors in GE China. The manufacturing sector alone claimed only 4,000 employees. The research and development, sourcing, and distribution presence in China was substantial. The firm also successfully led in innovation. In March 2004, for example, GE became the first foreign company to announce a subsidiary in China to engage in leasing (Vietor and Veytsman, 2007). On the other hand, Nike focuses on innovation, marketing, distribution and sales, not on manufacturing (Simchi-Levi, Kaminsky Simchi-Levi, 2003). Several studies seek to explain the relationship between productivity growth and outsourcing. Abraham and Taylor (1996) find that firms contract out services with the objectives of smoothing production cycles and benefiting from specialization. Ten Raa and Wolff (2001) find a positive association between the rate of outsourcing and productivity growth. Efficient firms allocate their resources to activities for which they enjoy comparative advantage. Other activities are increasingly outsourced. Contracting out production of goods and services to a firm with competitive advantages in terms of reliability, quality and cost is emphasized by Perry (1997). The outsourcing contract-granting firms assess the productivity of their in-house service functions and only undertake outsource actions if outside producers can provide comparable services better. The cost reductions due to differences in labor costs lead to outsourcing and positive changes in labor input, and output produced is altere d by profits and productivity growth. Outsourcing not only results in a shift of labor but also exacerbates the productivity differential between outsourcing contract granting firms and outsourcing contract receiving firms (Siegel and Griliches, 1992). Contracting out allows the firm to rely on management teams in other organizations to oversee tasks at which it is at a relative disadvantage, and to increase managerial attention and resource allocation to those tasks that it does best (Jiang, Frazier Prater, 2006). For example, GE India hired a vast pool of inexpensive, educated labor. The GE Indian program for training managers was instrumental in bringing up local talent. This strategy also allowed greater remote monitoring and maintenance in India. The vast majority of employees who filled the white-collar jobs had a university-level education. The Offshore Development Centers, which pioneered the idea of software sourcing in India, was largely responsible for promoting the educ ational zeal. The John F. Welch Technology Center was the most famous example, being the first and the largest multidisciplinary research facility in India. In addition to avoiding educational orientation, the Center provided critical technology, research, and development, and financing techniques. According to the Wall Street Journal 2005, that years conglomerate plan was to spend about $600 million on computer-software development from Indian companies where the firm estimated that similar products would cost it as much as $1.2 billion in the U.S. Also General Electric was successful in sourcing products, services, and intellectual talent from India for its global businesses. (Vietor and Veytsman, 2007). Traditionally, when business is booming, the temptation is to hire more staff, expand facilities, and bring more of the business in-house, where firms hope to better control costs. However, todays knowledge- and service-based economies offer innumerable opportunities for well-run companies to increase profits through outsourcing (Quinn, 1999). For instance, more than half of GEs revenue was from outside United States. Global revenue growth for 2007 was 22% (General Electric Company, 2008). For the calendar year 2003, GE Insurance, GE Commercial Finance, and GE Energy were the businesses with the greatest revenue: $26.2 billion, $20.8 billion, and $19.0 billion, respectively. In the year 2003, GE revenues reached $134.2 billion. International revenues contributed 45% of the total (Vietor and Veytsman, 2007). When used properly, outsourcing can boost profitability in many ways, including, the use of independent contractors provides employers with the flexibility to hire help only when they need it, for only as long as they need it. Outsourcing of staffing also allows firms to avoid having to provide costly benefits. And also, payroll as salaries are a large part of a businesss costs, particularly in service industries (Jiang, Frazier Prater, 2006). For example, General Electric was successful in sourcing products, services, and intellectual talent from India for its global businesses. In the sphere of intellectual sourcing, GE India presented very low costs, offering substantial savings in comparison with English speaking countries, while retaining high quality. GE India sales and sourcing had blossomed to $0.7 billion and $2.0 billion, respectively, in 2003. The current estimates predicted at least a 20% growth for both sales and sourcing by 2005 (Vietor and Veytsman, 2007). Another impact that outsourcing has that US-based multinationals are worried more about their bottom line than their social responsibilities and consider outsourcing to be unavoidable. GE, for instance, continues to stress the importance of low-cost centers in its global strategy and growth. GE also feels that globalization could lead to a loss of jobs in low-tech industries but that it will create jobs in high-tech ones too. According to the company, by centralizing its operations and leveraging low-cost operating centers in the US states of Virginia and North Carolina as well as in India and Ireland, GE has also developed sophisticated technological tools that enhance performance by automating key processes and reducing response times and process variations (Basu,2004). 2.3 Multiple outsourcing partnerships Outsourcing refers to the concept of looking for expertise to handle certain business functions outside the existing firm. The decision-making process that management must undergo when considering outsourcing, hinges on a make or buy philosophy. More variables are brought into play when management considers outsourcing a product or service that is currently being produced internally. Many more options exist currently than there were even a decade ago. In todays business environment it is now possible to outsource virtually any aspect of the business (Embleton Wright, 1998). One of the major challenges of outsourcing is moral hazard, as evidenced where businesses do not guard themselves prior to contract against their dependency on that supplier, and where, separately, they fail to appreciate the power which transfers to the outsource supplier in respect of their own business activities. One of the accepted ways to mitigate this is multiple outsourcing. This manifests itself normally in breaking down the outsourcing activities by separate function. By choosing to work with multiple outsource suppliers, enterprises can cut costs and foster competition between vendors, while taking advantage of vendor specialization and technical expertise (McDowall, 2005). The keys to successful outsourcing fall into three categories: Strategic analysis; Selecting the providers; and Managing the relationship (Embleton Wright, 1998). Strategic analysis Cost of providing the service: It is imperative to have a clear understanding of the type and the amount of all costs associated with the function to be outsourced. Labor, resultant level of service, impact of corporate culture and real estate costs such as space, utilities taxes and insurance all need to be considered (Embleton Wright, 1998). For instance, GE Mexico was GEs largest operation outside United States. As Mexico languages are Spanish and English, it facilitated the business relationship with GE USA. Technicians from United States could visit Mexico to work on system and technological improvements. It could have been more expensive and had language difficulties if the operation was done in China (Vietor and Veytsman, 2007). Quality level of service: It is also important to Develop a clear understanding and quantification of the type and the level of service being given with the current provider, then come to a clear understanding of the type and the level of service that will be acceptable in the future (Embleton Wright, 1998). For example GE India extended their business to aircraft engines, capital services, medical systems, industrial, systems, plastics, power systems, broadcasting, and others. In 2002, revenues and orders exceeded US $1 billion for GE India. The company employed over 22,000 people in the country. It was an intelligent move for GE to outsource their business in India as India offered them a vast pool of manpower with good language skill and education. Another reason to outsource their business in India GE India offered very low cost with substantial savings in comparison with English speaking countries while retaining high quality (Vietor and Veytsman, 2007). Quantify outsourcing goals: It is important to define goals explicitly. Without measurable goals, it will be impossible to quantify current results, or to define the level of service required in the future (Embleton Wright, 1998). For instance, in Mexico GEs target of 6% productivity growth was met as they closely worked with the Mexican government. By doing so, GEs Real Estate sector became a clear winner, with over $1 billion in financing in Mexico. GE had thus become Mexicos top real estate lender (Vietor and Veytsman, 2007). Selecting the provider After the decision to outsource has been reached, it is essential that the right vendor is chosen. Typically, outsourcing is a long-term relationship, which requires the supplier and the purchaser to work closely together. Often, additional services are required and should the agreement be terminated, the organization will require the suppliers co-operation until the outsourced service is settled elsewhere. Also there are many costs associated with changing an outsourcing vendor (Embleton Wright, 1998). For example in China GE entailed $1.5 billion in investments, employment of more than 12,000, and formation of more than a dozen joint ventures. These ventures thrived in high-technology industries which included medical systems, plastics, and lighting products, and in aircraft engine maintenance facilities, training, and component manufacturing. GE China also had formed a One GE strategic and practical approach. It involved four components. There was a sourcing component, in which G E would source parts and goods from domestic producers where cost savings exceeded 10%. The other three components were focused on Chinas own swelling markets. GE planned to manufacture products for China, develop distributional channels for selling, and build up its services for both product related services such as locomotive repairs and jet engine services, and eventually GE Capitals more sophisticated financial services (Vietor and Veytsman, 2007). Managing the relationship It is suggested that managing multiple outsourcing vendors can be a strain, but industry research indicates that multi-sourcing will be the prevailing outsourcing model. This is despite a very significant minority of enterprises being dissatisfied with their outsourcing relationships which formed inadequate governance models due to being poorly developed, under budgeted and having insufficient resources. Unfortunately, managing outsourcing relationships requires a whole new set of skills, requiring staff training and setting up a new management structure. None of this can be done with an immediacy which enterprises demand (McDowall, 2005). GE for instance, operated 30 plants including joint ventures, many of which were maquiladoras. In China, GE had invested in a dozen operations, mostly in Special Economic Areas. GE sold products in China and purchased products to supply its U.S. operations. In India, GE established its position in the software sector, taking advantage of the availa bility of human capital. All these operations could not have done without proper managerial relationship with the foreign buyers and suppliers and also the governments (Vietor and Veytsman, 2007). From the discussion above it can be said that GE has maintained proper step to do multiple outsourcing. Their decision to have multiple outsourcing partnerships was a major breakthrough in their businesses. Not on only in Mexico, China and India, GE spread their businesses successfully in all over the world including Canada where they have 10,000 employees, 15 major manufacturing locations and over 150 sales and service locations. They also have businesses in Southeast Asia, Australia, Europe and Middle East (General Electric Company, 2008). The next section of the report will focus on the impact outsourcing has on US economy in general. 2.4 Impact of outsourcing on US economy The mere mention of outsourcing and its impact on the U.S. is enough to elicit strong emotions on either side of the issue. Proponents argue that relocating low skill service jobs, like those in customer service or data entry, to foreign shores is necessary to ensure the productivity and competitiveness of the U.S. economy. Detractors say American companies are betraying their own workers and destroying the middle class, all in the name of the almighty dollar. But amid the debate over whether outsourcing is good or bad for the U.S., an important point has been largely ignored: Outsourcing is as much a regional issue as it is a national concern. Certain cities and areas are hit hard, while others remain largely unscathed (Elstrom, 2007). The important thing is to make a way of determining whether the gain is worth the pain. Suppose the net benefit to America is the degree to which the average employees purchasing power increases. The benefit really depends on four factors: the proportion of consumer expenses spent on potentially outsourced goods, the decrease in prices due to outsourcing, the proportion of American jobs that can be outsourced economically, and the wages of jobs that can be outsourced relative to the jobs that cannot. In the long term, American workers will be competing with labor elsewhere, pressuring American wages. Though prices should fall, its unclear whether these benefits will compensate Americans for lower wages. On the other hand, India and China will benefit from both higher wages and falling prices. Consequently, outsourcing will likely narrow Americas standard of living lead over other countries (Gibbons, 2004). An interesting corollary benefit sometimes mentioned is the benefit to the American economy. Indias National Association of Software and Services Companies commissioned a report by Evaluserve that stated that for every $100 worth of work sent abroad by U.S. companies, $130 to $145 will be reinvested in the U.S. economy. Cost savings are said to create value in the U.S. economy, and it is sometimes claimed that offshore outsourcing makes U.S. companies more globally competitive (Braun Consulting Group, 2004). Outsourcing results in higher production and lower costs, and consumers realize the benefit in lower prices and rates for goods and services. Manufacturing jobs, which commonly receive the most focus as candidates for outsourcing, are being lost not only in America but also in other countries due to emerging technologies that eliminate the need for manual labor. Furthermore, at the same time that manufacturing jobs are moving overseas, people in the United States are taking on ma nufacturing jobs from other countries. Efforts by the government to prevent outsourcing and to extend jobless benefits would negatively impact the free market economy and result in the loss of billions of dollars, say proponents of such initiatives (The Gale Group Inc, 2007). A recent survey by the McKinsey Global Institute has shown that for every dollar spent on outsourcing to India, the US economy gains at least $1.12. For example when medical reports are sent from the US to India for analysis it directly reduces the cost of health care. The cost saving thus achieved helps fuel new business opportunities, which in turn create more employment avenues. Health care is the primary concern for Americans today. Even if white-collar jobs were outsourced it would still make the US more productive, raising wages and increasing productivity. Just like the American free trade agreement created jobs in 1990s the upcoming outsourcing expansion will have a positive effect. If the US economy goes for job protection, it is heading towards job destruction. For instance had the US protected farm jobs a century ago, 70% of the Americans today would be tilling soil instead of 3%. The more the USA does to limit the import of services the more difficult it will become to ex port. The benefit of importing services is the same as importing goods. It increases productivity. Increased trade also forces domestic producers to become more productive. Improved productivity raises the standard of living, puts downward pressure on price and gives boost to profitability and wages (Chillibreeze Solutions Ltd, 2008). Outsourcing can also affects every part of business from manufacturing through to design, software development, financial control, logistics management, customer support and sales. Outsourcing has been praised as cost-effective, efficient, productive and strategic but also condemned as evil, money-grabbing, destructive, ruthless, exploiting the poor. A good example of this has been tensions over relocating call-centres and software support from countries like the UK and the US to India. More than 230,000 jobs are bringing lost each year in America as a result of outsourcing but many economists believe that a similar number of new jobs are being created at the same time. Research shows that some of the new economic activity generated in developing countries by outsourcing will generate new demand for goods and services in the country where the jobs have moved from (e.g. America). McKinsey Global Institute estimates that for every dollar US corporations spend on outsourcing to India, 3 3c gets 33c and the US economy benefits by $1.14. This is based on several assumptions: that 69% of displaced service workers will find new jobs within a year, and will end up earning 96% of their previous wages backed up by 1979-1999 data. However older workers may be out of work far longe, especially if their education is poor. Outsourcing saves money for corporations which mean lower costs for consumers and higher dividends for pensioners who own 75% of US and UK wealth which means more money to spend on other things such as local services and that produces new jobs (Global Change Ltd, 2008). 3.0 Conclusion Outsourcing otherwise known as subcontracting is the strategic use of resources outside the company to perform tasks that are usually handled internally by the company itself. In todays competitive world, successful outsourcing is a powerful tool for companies to generate value and gain competitive edge over rivals. The paper contrasted the impact of outsourcing has had on General Electric Company. The report critically evaluated the outsourcing steps made by GE which led their business to be cost efficient, productive and profitable. The paper also analyzes GEs decision to have multiple outsourcing partnerships. It demonstrated GEs successful multiple outsourcing strategy through strategic analysis, selection of providers and managing relationships. The report concluded by analyzing the impact outsourcing will have on US economy in general. It explained how outsourcing can affect the American job market also how it can input benefit in US economy. It revealed facts such as, every $1 00 worth of work sent abroad by U.S. companies, $130 to $145 will be reinvested in the U.S. economy. References: Books Journals Abraham, K. and Taylor, T. (1996), Firms use of outside contractors: theory and evidence, Journal of Labor Economics, Vol. 14, pp. 394-424. Beaumont, N. and Sohal, A. (2004), Outsourcing in Australia, International Journal of Operations Production Management, Vol. 24 No. 7, pp. 688-700. Behara, R.S., Gundersen, D.E. and Capozzoli, E.A. (1995), Trends in information systems outsourcing, International Journal of Purchasing, Vol. 31 No. 2, pp. 46-51. Embleton, P.R. and Wright P.C. (1998), A practical guide to successful outsourcing, Empowerment in Organizations, Vol. 6 No. 3, pp. 94-106 Jiang, B., Frazier, G.V. and Prater, E.L. (2006), Outsourcing effects on firms operational performance, International Journal of Operations Production Management, Vol. 26 No. 12, pp. 1280-1300. Lankford, W.M., and Parsa, F. (1999), Outsourcing: a primer, Management Decision 37/4, pp. 310-316. Perry, C.R. (1997), Outsourcing and union power, Journal of Labor Research, Vol. 18 No. 4, pp. 521-34. Quinn, J.B. (1999), Strategic outsourcing: leveraging knowledge capabilities, Sloan Management Review, Vol. 40 No. 4. Siegel, D. and Griliches, Z. (1992), Purchased services, outsourcing, computers, and productivity in manufacturing, in Griliches, Z. (Ed.), Output Measurement in Service Sector, University of Chicago Press, Chicago, IL, pp. 429-58. Simchi-Levi, D., Kaminsky, P. and Simchi-Levi, E. (2003), Designing Managing The Supply Chain, 2nd edn, McGraw-Hill Higher Education, p. 180 Struebing, L. (1996), Outsourcing is the answer or is it?, Quality Progress, Vol. 29 No. 3, p. 20. Ten Raa, T. and Wolff, E.N. (2001), Outsourcing of services and the productivity recovery in US manufacturing in the 1980s, Journal of Productivity Analysis, Vol. 16, pp. 149-65. Vietor R.H.K. and Veytsman, A. (2007), American Outsourcing, Harvard Business School, 9-705-037 Web Sites Basu, I. (2004), Anti-outsourcing cry unnerves corporate giants, Asia Times Online Ltd, viewed 9 October 2008, available at http://www.atimes.com/atimes/South_Asia/FC13Df03.html Braun Consulting Group, (2004), Offshore outsourcing: Impact on the American Workplace viewed 8 October 2008, available at http://www.braunconsulting.com/bcg/newsletters/summer2004/summer2004.html Chillibreeze Solutions Ltd, (2008), The Impact of Outsourcing on The American Economy, viewed 7 October 2008, available at http://www.chillibreeze.com/articles/The-impact-of-outsourcing-on-the-American-economy.asp#a Elstrom, P. (2007), The uneven impact of outsourcing, viewed 7 October 2008, available at http://www.msnbc.msn.com/id/17281339/ General Electric Company, (2008), Our Company, viewed 5 October 2008, available at http://www.ge.com/company/index.html Gibbons, R. (2004), Weighing Outsourcings Impact, viewed 6 October 2008, available at http://www.fool.com/investing/small-cap/2004/09/07/weighing-outsourcings-impact.aspx Global Change Ltd. (2008), The Future of Outsourcing, viewed 8 October 2008, available at http://www.globalchange.com/outsourcing.htm McDowall, B. (2005), Multiple Outsourcing (Multisourcing), IE4C, viewed 8 October 2008, available at http://www.it-analysis.com/business/content.php?cid=7913 The Gale Group, Inc, (2007), Outsourcing Does Not Negatively Impact the American Economy, viewed 8 October 2008, available at http://socialissues.wiseto.com/Articles/FO3020630100/

Benefits and Drawbacks of Foreign Direct Investment (FDI)

Benefits and Drawbacks of Foreign Direct Investment (FDI) Foreign Direct Investment (FDI) is the single most important mechanism for the globalization of the international economy. FDI is the investment of real assets in a foreign country, it is acquiring assets such as land and equipment in another host country, but operating the facility from the home country. FDI is viewed by many as necessary to stimulate the economies of both developed and underdeveloped countries. The global economy experienced a decrease in foreign investment flows. Developing countries have been hit the hardest by the decline in FDI as foreign investment is being redirected to more developed countries. It is expected that FDI will continue to be the most significant tool for globalization. It is widely accepted that FDI inflows provide economic benefits such as increased competition, technological spillovers and innovations, and increased employment. The impact of foreign investment extends far beyond economic growth. FDI can be a catalyst for change to society as a whole, therefore one must think in terms of economic, political, social, technological, cultural, and environmental factors and examine all the effects of FDI in order to interpret the true long-term impact. Foreign investment and globalization continues to increase, developing countries desperately seeking to attract foreign investment can have undesirable outcomes. FDI can have numerous negative effects, such as job loss, human rights abuses, political unrest, financial volatility, environmental degradation, and increased cultural tensions. The results of FDI on the global economy are complex and unpredictable, yet they can vary from country to country. This is due in part to the practices that are in place prior to receiving FDI inflows, such as deep-rooted social customs, political practices, laws and regulations. In more developed countries foreign direct investment resulted in rapid economic growth and social development and in unstable economies, underdeveloped countries, the results can be quite different. Types of Foreign Direct Investment According to Ali Guo (2005) states the main types of FDI in world are Equity Joint Ventures, Contractual Joint Ventures and the establishment of Wholly Foreign Owned Enterprises. Contractual joint ventures were initially the most important in the world. Equity joint ventures and wholly foreign owned enterprises became predominant and recent years have seen a proliferation of wholly foreign owned enterprises. Equity joint ventures have been a popular entry mode for two reasons. Ali Guo (2005) stated that most governments believes that equity joint ventures best serve the objective of foreign capital, technology, and management experiences. Secondly, foreign investors hope through engaging in joint ventures to get local partners assistance in the domestic markets. Foreign investors have chosen wholly foreign owned enterprises as the preferred entry mode in recent years so as to avoid problems associated with equity joint ventures. Motives for foreign direct investment Kokko (2006) identifies Foreign Direct Investment literature three as the most common investment motivations: resource-seeking, market-seeking and efficiency-seeking. Kokko (2006) suggests that although most MNCs engage in FDI that combines the characteristics of each of these categories, the gravity of each motive on the formulation of the MNCs strategy may also change, as a firm becomes an established and experienced foreign investor. The availability of natural resources, cheap unskilled or semi-skilled labor, creative assets and physical infrastructure promotes resource-seeking activities. According to Kokko (2006) the most important host country determinant of FDI has been the availability of natural resources, e.g. minerals, raw materials and agricultural products. Labor-seeking investment is usually undertaken by manufacturing and service MNEs from countries with high real labor costs, which set up or acquire subsidiaries in countries with lower real labor costs to supply labo r intensive intermediate or final products. To attract such production, host countries have set up free trade or exportprocessing zones (Kokko 2006). Market-seeking investment is attracted by factors like the host countrys market size, per capita income and market growth. For firms, new markets provide a chance to stay competitive and grow within the industry as well as achieve scale and scope economies. Apart from market size and trade restrictions, MNCs might be prompted to engage in market-seeking investment, when their main suppliers or customers have set up foreign producing facilities and in order to retain their business they need to follow them overseas Market-seeking also includes the search for strategic assets that enable the MNC to sustain and advance its international competitive advantages (Kokko 2006). The motivation of efficiency-seeking FDI is to rationalize the structure of established resource based or market-seeking investment in such a way that the investing com pany can gain from the common governance of geographically dispersed activities. The intention of the efficiency-seeking MNC is to take advantage of different factor endowments, cultures, institutional arrangements, economic systems and policies, and market structures by concentrating production in a limited number of locations to supply multiple markets (Kokko 2006). Ownership, location, and internalization are the three potential sources of advantage that may underlie a firms decision to become a MNC. A key feature of this approach is that it focuses on the incentives facing individual firms. Foreign Direct Investment (FDI) is determined by three sets of advantages which direct investment should have over the other institutional mechanisms available for a firm in satisfying the needs of its customers at home and abroad. The first of the advantages is the ownership specific one which includes the advantage that the firm has over its rivals in terms of its brand name, patent or knowledge of technology and marketing. This allows firms to compete with the other firms in the markets it serves regardless of the disadvantages of being foreign. The second is the internationalisation advantage, that is why a bundled FDI approach is preferred to unbundled product licensing, capital lending or technical assistance (Wheeler and Mody, 1992). The location-specific advantages relate to the importance for the firm to operate and invest in the host country and are those advantages that make the chosen foreign country a more attractive site for FDI than the others. For instance firms may invest in production facilities in foreign markets because transportation costs are too high to serve these markets through exports. This could either be directly related to the actual nature of the good, either being a high bulk item or a service that needs to be provided on site, or due to policy factors such as tariff rates, import restrictions, or issues of market access that makes physical investment advantageous over serving the market through exports. Location advantage also embodies other characteristic (economic, institutional and political) such as large domestic markets, availability of natural resources, an educated labor force, low labor cost, good institutions (the clarity of countrys law, efficiency of bureaucracy and the absen ce of corruption), political stability, corporate and other tax rates among others. Negative effects of foreign investment on the economies of the Host: Al Saffar (2010) states the criticisms directed against the common practices of foreign firms invested in host countries is that its main focus in the recruitment of its investments in industries quarrying for the purpose of re-use in the country of origin of the capital without making any effort to engage in manufacturing activity and development commensurate with the goals and aspirations of these countries, which do growth and development. This type of investment is characterized by extension of the parent organization that harms the host country and adds nothing. Al Saffar (2010) states some foreign-owned supplier to the supply of technology investment in the form of packages, the staff is unable to host countries for investment, dismantled and identified vocabulary to adapt and acquire scientific and technological expertise required for the manufacture of its terms, commensurate with the circumstances and their scientific and economic and social development. That this is clearly going to affect negatively on the possibility of acquiring technical staff Local technological skills and diverse as these companies by another would not be attributable to their employees from the landlords, the National, but routine job sites that do not require sophisticated technical expertise. It thus does not allow creating a new class of professionals or the business of skilled scientific and technological and organizational and administrative, marketing and shielded from the possibility of opening prospects for new national projects and sophisticated and thus the host country has to invest in a spiral of underdevelopment. Al Saffar (2010) argues that rejecting the foreign investor is often the transfer of advanced technology in his possession the grounds that the host country is unable to digest and absorb these advanced Technology and modern. So he would prefer to import from abroad with the full line of production and assembly and thus ignore the important one the main objectives of the host countries is that companies he training of technical staffing group to have and given an opportunity to digest and absorb these technology and benefit from the adaptation and manufacture of the spectrum and its uses in locations other economic, commensurate with their economic circumstances. According to Al Saffar (2010) often foreign companies to import production inputs from abroad, such as materials preliminary and intermediate products as well as the import of spare parts for maintenance the project when you need after the run from their home countries is usually compared to less dependence on local inputs, leading to serious injury to the interests of the host country to the economic and trade deficits, including impair its ability to take advantage of natural resources and increase savings, which is desperately needed. We must give foreign investors a degree of administrative control by virtue of its contribution to the top money on investment projects, will limit or impair the effectiveness of policies sometimes economic development in the host country and restricts the varying degrees of independence of decision-makers local address balance of payments or to take any action, a suitable economic the impact and effectiveness of positive economic activities. (Al Saf far 2010) The foreign investment of foreign companies, making the host country loses some capacity to make some economic and political decisions on the management of its affairs which increases the economic dependency of these countries to developed countries. Besides, these foreign companies is strong negotiating and bargaining power on the selection and sitting investment and size and type of production through a selective approach in the selection of sites investments, creating a sort of incompatibility between the objectives and interests of these foreign companies Invested with what is planned in the path of economic and social development or the desired prepared for those countries. (Al Saffar 2010). The foreign invested companies operating in the area of services, media nd cultural services are often negatively affect the social systems and cultural and traditional values in the host countries .. As they are able to deploy Culture Western and especially American by selling programs on culture and magazines and music and films and books at low prices exceeding the cost price only slightly so as not to be able to become local companies to compete with these low prices. Accordingly, these companies impose its values and culture and traditions of other societies and lead to a breach of and disorder and social systems, social values and traditions rooted and established who was raised by these communities generations long. (Al Saffar 2010) According to Al Saffar (2010) depriving the host country for foreign investment from income tax imposed on capital funds or foreign companies on profits transferred abroad or at imports from foreign inputs as imposed by the Convention as well as imposed by the WTO members from the requirement of national treatment when the imposition of laws and taxes and fees on investment activity as is the case with the local foreign It shall be a great loss for the developing countries that depends to a large extent in the financing of development on the tax revenue. Al Saffar (2010) states a key part of foreign investment consists of the profits realized locally and from here highlight the problem for local decision makers As for allowing foreign companies to transfer most of their profits to their mother countries, which means allowing them absorb the riches that have been newly generated by the activity within the host country, or a requirement that these companies this re-invest profits locally. This really means to allow it to expand and increase the control of the national economy and thereby expanding its market dominance in local raise the rates of prices of goods and services, leading eventually to increase their profits back Other. According to Al Saffar (2010) Giving a lot of freedom for foreign companies to engage in unchecked activity will enhance their ability to evade compliance with laws and regulations issued by the Government of the country, the host and the virtue of its invoking a variety of pretexts, which requires follow-up its affairs professionally and prevent it from Overcome any form of abuse. Al Saffar (2010) states Some economists believe that foreign investment leads to the creation of dependency and development underdevelopment are to be based primarily on the shameless exploitation of cheap labor and exploitation of natural resources of the host country, thus leading to a loss of economic independence and political and greater dependency. VARIABLES DETERMINING FDI INFLOWS Gross Capital Formation, in a transition economy, improvements in the investment climate help to attract higher FDI inflows. It translates into higher Gross capital formation which in turn leads to greater economic growth. Sridharan Perumal et al (2010) find little evidence of FDI having an impact on capital formation in developed countries and observe that the most important aspect of FDI in the selected sample of countries is related to ownership change. The relationship between FDI and Capital Formation is not simple (Sridharan Perumal et al 2010). In the case of certain privatization, it may not lead to increase at all or even result in reduction. Thus, the unclear relation between FDI and capital formation may also hold in a transition economy. However, a positive or negative and significant relationship between FDI and Capital Formation is expected. (Sridharan Perumal et al 2010). Currency valuation The strength of a currency (Exchange rate) is used as proxy for level of inflation and the purchasing power of the investing firm. Devaluation of a currency would result in reduced exchange rate risk. As a currency depreciates, the purchasing power of the investors in foreign currency terms is enhanced, thus we expect a positive and significant relationship between the currency value and FDI inflows. The currency value can be proxied by the Real Exchange Rate, Real Effective Exchange Rate (REER) and Nominal Effective Exchange Rate (NEER). (Sridharan Perumal et al 2010). Trade openness, Trade openness is considered to be a key determinant of FDI as represented in the previous literature; much of FDI is export oriented and may also require the import of complementary, intermediate and capital goods. In either case, volume of trade is enhanced and thus trade openness is generally expected to be a positive and significant determinant of FDI. (Sridharan Perumal et al 2010). Infrastructure facilities, The well established and quality infrastructure is an important determinant of FDI flows. On the other hand, a country which has opportunity to attract FDI flows will stimulate a country to equip with good Infrastructure facilities. Therefore, we expect positively significant relationship between FDI and Infrastructure. (Sridharan Perumal et al 2010). Labour cost, Higher labour cost would result in higher cost of production and is expected to limit the FDI inflows; therefore, we expect the negative and significant relationship between labour cost and FDI. (Sridharan Perumal et al 2010). Economic stability and growth prospects, A country which has a stable macroeconomic condition with high and sustained growth rates will receive more FDI inflows than a more volatile economy. The proxies measuring growth rate are: GDP growth rates, Industrial production index, Interest rates and Inflation rates. (Sridharan Perumal et al 2010). Market size, Larger market size should receive more inflows than that of smaller countries having lesser market size. Market size is generally measured by Gross Domestic Product (GDP), GDP per capita income and size of the middle class population. (Sridharan Perumal et al 2010). Currency valuation, The strength of a currency is used as proxy for level of inflation and the purchasing power of the investing firm. Devaluation of a currency would result in reduced exchange rate risk. As a currency depreciates, the purchasing power of the investors in foreign currency terms is enhanced, thus we expect a positive and significant relationship between the currency value and FDI inflows. The currency value can be proxy by the Real Exchange Rate, Real Effective Exchange Rate (REER) and Nominal Effective Exchange Rate (NEER). (Sridharan Perumal et al 2010). Gross Capital Formation, In a transition economy, improvements in the investment climate help to attract higher FDI inflows. It translates into higher Gross capital formation which in turn leads to greater economic growth. Sridharan Perumal et al (2010) find little evidence of FDI having an impact on capital formation in developed countries and observe that the most important aspect of FDI in the selected sample of countries is related to ownership change. The relationship between FDI and Capital Formation is not simple (Sridharan Perumal et al 2010). In the case of certain privatization, it may not lead to increase at all or even result in reduction. Thus, the unclear relation between FDI and capital formation may also hold in a transition economy. Though, a positive or negative and significant relationship between FDI and Capital Formation is expected. (Sridharan Perumal et al 2010).

Doctor Faustus as Apollonian Hero :: Doctor Faustus

Doctor Faustus as Apollonian Hero How long will a man lie i' th' earth ere he rot? - Hamlet, V, i, 168 The Tragic History of Doctor Faustus is Marlowe's misreading of the drama of the morality tradition, the Faust legend, and, ironically, his own Tamburlaine plays. In the development of the character of Doctor Faustus, we find one of the supreme artistic achievements of English dramatic literature, a milestone of artistic creativity and originality. The force of Marlowe's dramatic poetry resonates with lyrical intensity in its dialectic between world and will. Not only is Faustus the first true dramatic character of any psychological, moral, and philosophical depth in English literature of the modern period, but in his creation of this unique character we see Marlowe on the verge of Shakespearean characterization, that supreme artistic achievement that Harold Bloom calls the invention of the human personality. The play itself is a study of the development of the inner self of a character, the evolution from a type who unfolds into a soul who develops. Bloom calls Marlowe Shakespeare's "prime precursor and rival Ovidian" (xx). All of Marlowe's major characters are of one type: each strives single-mindedly and obsessively towards one ever-evasive end. Faustus is the most philosophically oriented of this motley band, the one who comes closest to embodying the incredible vastness of human personality. Bloom notes that "Marlowe never developed, and never would have, even had he seen thirty" (xxi-xxii). While this judgment may be argued true, we must not regard his want of artistic maturity against Marlowe for the characterization he does achieve remains unprecedented in English literary history. The Faustus that we come to know, to loathe, and, at times, to idealize is both a human figure in all of his flaws and a natural force, "not so much intelligence as energy" (Steane 131). Marlowe's tragedy stands in a uniquely transformative relationship to the tradition of England's morality plays; more than simply an evolution, the play assimilates, incorporates, and creates new uses for the conventional elements of the morality play. The morality play, the most popular examples of which include Everyman and Mankind, was rooted in the didacticism of medieval Christian theology and developed as a means for the conveyance of Biblical truth to the masses. Its basis, as a literary work, was "an archetypal human perception: the fall out of innocence into experience" (Potter 9).

Gender of Nature: Mother Earth :: Essays Papers

Gender of Nature: Mother Earth â€Å"Forget not that the earth delights to feel your bare feet and the wind longs to play with your hair.† -The Prophet, by Kahlil Gibran There is no voice more comforting than Mama’s. In the womb we are suspended in safe warmth, hearing every noise that Mama makes. And we don’t just hear her voice. We feel its vibrations, its muffled hum, through our ears and our entire forming bodies. It’s no wonder that that is often the only voice that can comfort us in the distress of our new little lives. Yet, what of the mother who cannot speak? Can she still comfort her baby? Yes, because it is much more than vocal chords that connect a baby with its birth mother. After all, Baby eats all that Mama eats, breathes Mama’s air, knows Mama’s way of moving and laughing†¦Baby feels every surge of adrenaline that Mama feels. Bonds don’t get more intimate than that. Even after Baby is born, this bond is strengthened through long bouts of staring into each other’s eyes, through feeling the lulling rhythm of Mama’s breathing while sleeping against her chest, through time spent together saturated in touch and play. This phenomenon of intimacy is so powerful that it surpasses any blindness or handicap Mama could possibly have. Not only do we all have this precious connection with our Mama’s, we also have a strong, and similar, connection with Earth. Philosopher, Roger S. Gottlieb, tells plainly of our connection with Earth, saying, â€Å"We all live and breathe and drink the water and receive the food from the soil†¦Ã¢â‚¬  We are dependent on Earth, like infants depend on Mama, for life itself. It daily sustains us, in body, as well as in spirit. It is a tragedy that we have lost sight of our connection with Earth. In his book, Vocation: Discerning Our Callings in Life, Douglass Schuurman says, â€Å"Some dullards have no curiosity or sense of wonder at the harmony and beauty of creation; others have had it drummed out of them by suffering or deadening educational systems. But traces of the sense of wonder and the quest for meaning survive in most human beings. (65)† Perhaps it can be said that some dullardshave no curiosity or sense of wonder at the harmony and beauty of their Mama, the one in whom their life began.

Rene Descartess View on God Essay -- Philosophy essays

Rene Descartes's View on God      Ã‚  Ã‚   In 1996, songwriter Joan Osborne performed a song called "One of Us" that was nominated for three Grammy Awards.   What made this song so successful and interesting were the powerful lyrics that basically asked, "What if God were a human being?"   As she was writing the lyrics to "One of Us," she was wondering about God and how the world would be different if God did exist in real life and not just a supernatural force.   You may be asking yourself, "What does this have to do with the seventeenth century?"   Well, in the seventeenth century, there was a man, named Rene Descartes, who was interested in God and wondered about His existence.   After an unforgettable night in November 10, 1619, his interest in God became stronger, and had developed many views that concerned or were about God. When he expressed his investigations of applying inductive methods of science and mathematics to philosophy by the "Cogito ero sum" (I think, therefore I am), he started to ar gue the existence of God by saying that God and science could co-exist, since he proved that he existed.    Rene Descartes, a Catholic, had the benefit of an extensive classical education, which influenced him to become a great philosopher.   When he was eight years old, "he was enrolled in the Jesuit school of La Fleche in Anjou, where he remained for eight years" ("Descartes").   There, he received instruction in mathematics, scholastic philosophy, and classical studies. Although he was planning on having a military career in the Netherlands, "his attention had already been attracted to the problems of mathematics and philosophy to which he was to devote the rest of his life" ("Descartes").    Descartes experienced an unfor... ...    Descartes was an important philosopher in the seventeenth century and one of the reasons why was his view on God.   Because of his knowledge and inspiration that November 10, he has been able to elaborate on philosophy.   He had a mission to accomplish during his life, a mission to see the truth.   He was able to accomplish this mission by seeking the truth of God, algebra and geometry, reasoning, and many other theories that have caused him to be called the father of modern philosophy.    Works Cited: Descartes, Rene.   The Philosophical Works of Descartes. Cambridge: Cambridge University Press, 1911. Vrooman, Jack Rochford. Rene Descartes. New York: G.P. Putman's Sons, 1970. "Descartes, Rene." Funk & Wagnalls New Encyclopedia. New York: Funk & Wagnalls Inc.,1952. "Rene Descartes." Internet Encyclopedia of Philosophy.   13 July 1999.

Human rights in Iraq after the war Essay

The Americans are fairly blunt about promoting their corporate interests. A USAid spokeswoman was quoted recently pointing out that it should not come as a surprise that all of the companies short listed for work in Iraq are American. Her advice to non American companies is to pressurize their own governments. And this is driving the agenda of the European Union meeting in Brussels. President Chirac and others opposed to war have declared that while they condemn this war, they are willing to work with the UK and US on the reconstruction of Iraq. No doubt the popular sentiment in Europe favours providing support to the Iraqi people after a terrible devastation has been wrecked upon them. However, these governments are also under pressure to provide a role for their corporations in post war Iraq, a resource rich country. Thus, before the war has ended, the more divisive fight over the spoils of war has already started. In the now marginalized United Nations lies France and Germany’s best hopes of making the division of the loot somewhat egalitarian. But the Americans are prepared, more than ever, to brush away the UN, and impose direct rule on iraq. The British are hoping to receive their fair share of the crumbs for their loyalty. However, this comes at the heavy cost of alienating Britain from the rest of Europe. It is likely that this battle to divide the spoils will lead to important decisions concerning the future of the United Nations as well as the future relationship between America, Britain and Europe. OREND’S THEORY ON RECONSTRUCTION ON THE BASIS OF HUMAN RIGHTS All human beings have human rights. However, human rights do not necessarily embrace anything and everything the anybody wants. Human rights are merely limited to those things which are both vitally needed and which can be provided at reasonable cost. A claim is at the core of any right, and that a claim is necessarily a claim on someone or something, in connection with some sought-after action or benefit, some good or policy. There is no such thing as a holder of a right without a correlative bearing any duty. The acts of the US and UK in Iraq after war can be considered as too much abuse to the basic human rights of the Iraqis. The Reconstruction being done to foster an economic advantage deprives the Iraqi of their basic economic benefits necessary to alleviate their lives. There is a plain disregard of a multi-aspect needs of the Iraqis for preservation, liberation, unification, democratization, and self-identity. The reconstruction projects are simply not directed towards the development and enhancement of the fundamentals of human existence and human rights. The excessive desire of the US government for profit and gains violates the basic principle of human rights, as according to Professor Orend, that is to love a â€Å"minimally decent lives†. Professor Orend holds a human right to be â€Å"a high-priority claim, or authoritative entitlement, justified by sufficient reasons, to a set of objects that are owed to each human person as a matter of minimally decent treatment†. He then asserts that to hold human rights â€Å"one must be biologically human, one must avoid violating another’s human rights, and one must have fundamental interests in, or vital needs for, living a life of minimal value. † Both formulations are valuable definitions and form a strong basis upon which to ground claims of rights. This requires a life that does not yearn for any excessive economic gains and benefits, unlike what the US Government and its cronies are manifesting. A life of simplicity within the level of a minimally decent lives requires only just enough resources to support the basic services and development of the State. It does not necessarily imply taking advantage of another’s ordeal just to promote one’s excessive economic needs. Orend shows who bears what duties in relation to human rights, questioning whether individuals or institutions are responsible for ensuring human rights. Orend concludes that both institutions and individuals bear responsibility for ensuring human rights on both a national and international level. This duty, he argues, directly correlates to one’s ability to affect human rights. So, while the duty of an individual is different from the duty of a multinational corporation, which in turn is different from the duty of a nation or international institution, all of these entities are responsible for ensuring that human rights are respected. Following on from this, Orend argues that post war reconstruction must occur via the established media of international law and governance but with the added insights of practices such as philosophy, human rights, history, public policy, and political science. It cannot be simply held and carried out purely for purposes of gains. There must be concerted and united efforts of all institutions and individuals of the word to perform their respective duty proceeding from the basic moral duty of respecting the basic dignity and rights of the Iraqis. All aspects must be duly considered in order to come up to a broader and complete plan of binging in reconstruction in Iraq. References: 1. 1. Fagan, Andrew. The Internet Encyclopedia of Philosophy: Human Rights. Human Rights Center: University of Essex. 2006. http://www. iep. utm. edu/h/hum-rts. htm 2. Orend, Brian. Human Rights: Concept and Context. Petersburg, Ontario: Broadview Press, 2002. http://www. du. edu/gsis/hrhw/booknotes/2004/zwiebach-2004. html.

On Education and Human Nature Essay

This paper is a brief discussion of the relationship between education and human nature as seen in two varying viewpoints – that of Callicles (in Plato’s Gorgias) and Protagoras. The author is of the belief that education, albeit necessary in the survival of man in the long run, is a construct that contradicts the nature of man insofar as it restricts certain aspects of an individual. Such an assertion is partly leaning towards Callicles’ view of man as a creature whose appetites, so to speak, have to be met by virtue of a natural law. This position, along with Protagoras’ view of the nature of education – that it is essential in the cultivation of civic virtue – is key to the author’s argument that education is restricting. Callicles and Protagoras are similar in the sense that both are Sophists, with the slight distinction that the former is a student of Gorgias. Protagoras (outside of Plato’s dialogs) is known for his assertion that man is the measure of all things, and with that in mind it can be said that Callicles likewise adheres to that position, but with reservations – i. e. , the â€Å"better† man (discussions on definition aside) seems to be the measure of all things, not all men as they are. Aside from that, however, there is nothing more that links the two characters in Plato’s dialogs together. In fact, the views of the two thinkers with regard to the issue central to the discussion in this paper differ greatly. To begin, Callicles admonishes Socrates in their dialog for remaining to be a â€Å"student† of philosophy even as an adult. For Callicles, philosophy is not meant to be studied extensively nor lengthily; it is supposed to be indulged in by the youth, and only in moderation. He maintains that studying philosophy insofar as it is required by one’s education is acceptable; however, to still be engaged in philosophizing when one is already past the age of schooling is short of appalling since it causes one to deviate from leading a practical life. But what is this practical life that Callicles is in favor of? The answer to this question is implicit in the discourse that followed his expression of dislike towards Socrates’ way of life. Callicles purports that there is a natural justice in existence in the world that is being resisted, or even disregarded, by conventional justice. His notion of what is â€Å"just by nature† revolves around the idea that the â€Å"superior† amongst men is supposed to be a kind of usurper of property (if seen in a negative way) who – by virtue of his superiority – has the right to rule over the inferior of his kinsmen, and is entitled to a greater share in everything compared to lesser men. Such a concept, as seen in his exchange with Socrates, is completely in opposition to what is being forwarded in their society at the time – the idea that all men are essentially equal, and that what is just is for everyone to receive an equal share. This is the conventional justice Callicles is referring to. Socrates, in turn, and with his method of â€Å"acquiring knowledge† (Socratic method), manages to use his opponent’s argument against him. He began his argument with questions that asked for a clarification of definition – what is superior? Better? – and ended with the statement that with Callicles’ own words he managed to show that since many is superior to one, then rules of the many are superior; hence, these rules are rules of the better; hence, the rules of these â€Å"better† people are admirable by nature since they are superior; thus, natural justice is not at all in contradiction with conventional justice. As mentioned earlier, within the aforementioned exchange regarding natural and conventional justice lies Callicles’ perception of the practical life, or the kind of life an individual ought to lead. As with countless other thinkers, his argument is deeply rooted with the idea of happiness as the end to which man should direct his actions. What distinguishes him from Protagoras, though, is his assertion that happiness – and his concept of natural justice – can be attained only by the man who will succumb to his appetites, or in his own words: â€Å"the man who’ll live correctly ought to allow his own appetites to get as large as possible and not restrain them†. As for what he termed as â€Å"contracts of men† – which are to be assumed as the laws that maintain order in the society – Callicles is of the opinion that since these go against the grain with which man is made, they are to be considered â€Å"worthless nonsense†. For his part, Socrates of course attempted to dissuade Callicles by means of his conventional method of discourse and by introducing the analogy of the two men with jars, to no avail. Protagoras’ main point in the discourse relevant to this paper is that virtue is teachable. In support of his assertion, he recalled the account of the creation of man in Greek mythology to Socrates. He recounted that all creatures of the earth are made by the gods out of fire and earth, and that prior to giving them life Epimetheus and Prometheus were tasked to facilitate the distribution of abilities to them. Epimetheus volunteered to do it himself, with Prometheus inspecting the result. Epimetheus balanced the distribution with regard to â€Å"nonreasoning animals†. As for the human race, they were left bare, in the broadest definition of the word. Prometheus saw the problem and solved it by stealing from Hephaestus and Athena wisdom in the practical arts and fire and gave them to man, which proved fatal for him in the end. It is important to note that wisdom in the practical arts is wisdom intended for survival. It did not include political wisdom – needed to be able to establish and maintain the order of a city – as this is kept by Zeus. The result was catastrophic, as evidenced by the fact that later on Zeus sent Hermes to distribute justice and shame to all men for fear that the human race will be wiped out because of man’s inability to coexist in cities they founded to protect themselves from wild beasts that placed them in danger of annihilation. Political or civic virtue then – products of justice and temperance – became a divine law of which every man is knowledgeable, unlike other virtues that stem from other arts (such as architectural excellence). This myth was used by Protagoras to show that inherent in all men are the seeds of civic virtue that only need to be coaxed out with the aid of education and constant admonition from one’s elders (particularly parents). And since this is the case, all men are capable to be taught virtue, because all men are in possession of it. Protagoras made a second, this time stronger point to support his statement that virtue is teachable. He began his argument by saying that the difference between evils caused by natural processes and those resulting from the lack or absence of civic virtue is that the former elicits pity for the person in possession of such an evil. Contrary to that, when society is confronted with a person exhibiting the opposite of virtue – injustice, impiety, etc. – it is not pity that’s felt but anger. Protagoras maintains that this reaction is due to the fact that civic virtue is regarded as something that can be acquired through training, practice, and teaching. He pushes his position further by saying that reasonable punishment – administered to a person who has committed an act that goes against civic virtue – is undertaken as a deterrence, the implication of which is that virtue is and can be learned. To further support his claim, Protagoras went into a brief discussion of how virtue is taught to all men all their lives. As little children, he said, men are taught not only by their parents about civic virtue but also through the education they receive. From the literature they study to the songs they play, teachers are keen on inserting messages meant to teach them what is good and just. For Protagoras, it seems, education is not merely comprised of letters and literature. Music is likewise necessary, as well as sports. Music, as he said, makes people â€Å"gentler† – they become more â€Å"rhythmical and harmonious† with regard to their actions. And this is important because for him, â€Å"all of human life requires a high degree of rhythm and harmony†. As for sports, Protagoras mentions that parents â€Å"send their children to an athletic trainer so that they may have sound bodies in the service of their now fit minds†. Even after one’s formal schooling is over, education on the virtues does not stop. As Protagoras said: â€Å"When [the students] quit school, the city in turn compels them to learn the laws and to model their lives on them. They are not to act as they please. † He ended his side of the discussion with a rhetorical question of how anyone can wonder about virtue being teachable when it is given so much care and attention in man’s public and private life. It is crucial to analyze the discourse both thinkers had with Socrates, albeit briefly, to be able to shed light on the position of this paper that education is necessary but constricting. With regard to the nature of man, it is clear that there is a clear dividing line between the idea of Callicles and that of Protagoras. For the latter, what is good for man is that which is good for the society. In other words, there is no contradiction between natural and conventional justice relative to the nature of man and how he ought to live. For the former, man is essentially a being meant to be governed by his appetites, or desires. The conflict lies in the fact that conventional justice dictates that there be a certain level of order maintained in a society, order which will only come about through the citizens’ willingness to subject themselves to laws that promote equality and peaceful co-existence. For Callicles, such laws are human constructs, designed to restrain his idea of a superior man, and as such should not be observed. The author will go one step further and say that although there is no direct discussion on education in Callicles’ discourse with Socrates, it is clear that since education is a human construct, he sees it as but another shackle his superior man has to bear. Despite the fact that Protagoras is amenable to education – as it teaches civic virtue – there is a single line in the discourse that implies a completely different attitude. Protagoras told Socrates that when a man’s formal education is over, he is still forced to learn the laws and live by them, and that he is not to act as he pleases. This goes to show that despite the eagerness of his version of man to live a life of civic virtue, part of him still needs to be shackled by laws. It is these deductions – from both thinkers – that led the author to believe that inherent in every person is a part that yearns for unbridled freedom and power. Education is an institution that strives to inculcate in man the characteristics needed for him to be able to lead a peaceful life in a society – characteristics that lean towards suppressing one’s desires and call for a sort of balance between fulfilling one’s wants and respecting those of others. Despite the restrictive nature of education, the author believes that it is still a necessary burden people have to bear. Gone are the days when man kept to himself, when he foraged for food and did not maintain a life of permanence in any one place. With the evolution of man came the need for permanence, and with that co-existence with other men. It may be true that at the core of every man is a selfish desire for power – to have everything and more. But if all men were to be allowed to act according to their whims, the stories of old – where Zeus feared that the human race might be annihilated because of man’s inability to restrain his need for power – may come true after all. Survival today does not only entail meeting one’s basic needs. It is also about respecting other men, if one were to be anthropocentric about it. And this – along with other things that will aid the human race to persist for the next millennia – can only be reinforced by education.