Historical Background and Status

Historical background and status of textile engineering industry By: S. Chakrabarty Preamble Industrial Revolution in U. K. during 1750 – 1850 gave birth to Textile Machinery. The dominance of India in the field of cotton textiles produced by very skilled manpower was disturbing the British. Systematic development of textile industry with spinning and powerloom machinery was initiated in Lancashire and Manchester to discourage the Indian weavers. Rest is however known to everybody how the machinery industry was developed and nurtured by the respective Governments in the UK and later by Germany and Switzerland followed by others in Europe.In India, machinery manufacture started in the 50s, continued and progressed during 60s & 70s and thereafter. The Government policy to ban expansion of the organized weaving sector during late 60s created/ supported the decentralized powerloom sector. Too much of importance to handlooms and low level technology power looms in the subsequent ye ars, keeping a large list of reserved items for handlooms, throttled the mill industry which lost its initiative for creativity as well as production for the masses. Low level of production in handlooms and low quality production in powerlooms made us uncompetitive in the subsequent years.The Government’s regulative pressures on the Mill Industry continued to play havoc for the weaving industry till the introduction of 1985 Textile Policy and finally revolutionary Industrial Policy in 1991. Development and technology growth in the TEI The Textile Engineering Industry (TEI) during the late 60s, 70s and 80s had received some Government support in the form of foreign collaboration approvals, import assistance by way of phased manufacturing programme and concessional customs duty certification for imported parts and components for manufacture of specified textile machinery.Import duty on components and parts in general was very high at 85% excluding CVD and not conducive for indi genous development. The concessional duty on imported parts, components etc. mentioned above did help the Industry. The then Government’s policy was also supportive that no import of machinery was allowed if there was adequate indigenous production. The local textile industry therefore had no choice but to buy the Indian machinery. This policy helped the TEI to develop and manufacture spinning machinery in the country of the desired quality and quantity. There was no competition from outsider.Internal competition among various players made the development easier and faster. Foreign manufacturers had no choice but to enter into collaborations with local manufacturers. This happened not only in spinning but also in processing machinery. The following collaborations are worth mentioning: Sr. No. 1 2 3 4 5 6 7 8 Names of Foreign Collaborators M/s. Textile Machinery Makers Ltd. U. K. , Platt Bros. , U. K. M/s. Whitin Machine Works, U. S. A. M/s. Howa, Japan M/s. Zinser, Germany M/ s. Marzoli, Italy M/s. Hispani Suiza (Suisse) S. A. , Switzerland M/s. Rieter, Switzerland M/s. Schubert & Salzer, Germany Names of IndianManufacturers M/s. National Machinery Mfrs. Ltd. , Bombay* M/s. M M C. , Calcutta M/s. Texmaco, Calcutta* M/s. Texmaco, Calcutta* M/s. M M C, Bangalore* M/s. Indequip Engineering Ltd. , Ahmedabad M/s. LMW, Coimbatore M/s. New Standard Engg. Items Produced Spinning – Cards, Draw Frame, Speed Frame, Ring Frame Spinning – Carding Engines and RH Can Fed Inter Frames Spinning – Flat Revolving Carding Engines, Draw Frame, Speed Frames Spinning – Narrow Gauge Ring Frame Spinning – Entire Range Spinning – Ring Frame Spinning – Entire range Spinning – Blow Room, Cards, 9. M/s. Zinser, Germany M/s. Trutzschler, Germany M/s. Toyota, Japan 10 11 2 M/s. Suessen, Germany * Presently not in operation Co. Ltd. , Mumbai* M/s. Padmatex Engg. , Baroda* M/s. Trumac, Ahmedabad M/s. Kirloskar Toyoda Textile Machin ery Pvt. Ltd. , Bangalore M/s. Suessen Asia, Pune Draw Frames Spinning – H. S. Draw Frame Spinning – Blow Room, Cards, Draw Frames Spinning – Ring Frame Spinning – Ring Frame Due to acute and long recession in the Textile Industry, initial higher import content coupled with high rate of import duty, non-transfer of latest technology under collaboration agreements leading to import of machinery etc. , the following Indian Companies were closed down during 80s and early 90s.These are M/s. MMC, Kolkata and Bangalore; M/s. Texmaco, Kolkata; M/s. Indequip Engineering, Ahmedabad; M/s. New Standard Engg. Co. Ltd. , Mumbai; M/s. Mafatlal Engg. Co. Ltd. Mumbai; M/s. Textool Co. Ltd. , Coimbatore; M/s. Jeetstex Engg. Ltd. Coimbatore etc. while M/s. LMW, M/s. Trumac, M/s. Zinser India, M/s. Suessen Asia, M/s. Kirloskar Toyoda could manage to stay in production. Why we are better in spinning machinery? There was Government support by way of†¢ †¢ †¢ Res tricted import of spinning machinery – virtually no import of spinning machinery of the same technology available indigenously was allowed.No import of second hand spinning machinery was allowed. Import duty concession on raw materials, parts, components & accessories for production of specified machinery as the import duty in general, was very high. Besides, competition among the machinery manufacturers resulted in production of better quality machines. Reasons for non-development in the Weaving Machinery Sector While the Textile Engineering Industry took up manufacturing of Spinning machinery in full swing with the adequate Government's supportive measures mentioned above, the same did not happen in case of weaving machinery.During 60s (prior to 1970) the Industrial Policy prohibited the organized mill sector to expand their weaving capacity. This was perhaps to support employment generation in the villages by the decentralized and dispersed handloom sector. It was due to t his wrong policy, the unauthorized powerloom clusters started gaining grounds. Even many of the handloom clusters started converting into powerlooms. Since the domestic demand for fabrics was growing fast due to the population growth, the powerloom sector in different parts of the country started growing fast while the handloom sector started shrinking in reality. The fact is still not accepted by the Government). Today, there are over 20 lakh powerlooms but handlooms, may not be more than 8 lakh, if not less! During 70s the organized mill sector was allowed to replace ordinary powerlooms by automatic looms and shuttleless looms on 4:1 basis. However, compulsory manufacture of controlled cloth by the mills sector dampened the spirit of the mills sector. Controlled cloth scheme was done away with during 80s. Expectation of a good demand due to replacement policy prompted the manufacture of automatic looms by M/s.Cimmco, Gwalior in collaboration with M/s. Sakamoto, Japan and M/s. Mafa tlal Engineering Co. in collaboration with M/s. Ruti, Switzerland during 70s. In the late 70s M/s. Lakshmi Automatic Loom Works Ltd. (LALW) started manufacturing Ruti `C’ Type of automatic loom in collaboration with M/s. Ruti, Switzerland. M/s. Cimmco as well as M/s. Mafatlal Engineering Co. tried to manufacture shuttleless looms in collaboration with M/s. Dornier, Germany, Toyoda, Japan and M/s. SACM, France respectively during early 80s. M/s. LALW also started making shuttleless rapier and airjet looms during 80s.During 80s, the powerloom population which was hardly 7 lakh had grown to more than 10 lakhs. The policy of scrapping of powerlooms of the mill industry after replacement or closure failed miserably, all these powerlooms found their way to the decentralized sector. The Government had no option but to regularize all unauthorised powerlooms due to political pressure after announcement of 1985 Textile Policy and subsequent Textile Control Order 1986, doing away with t he age old powerloom permit system. The textile strike during 1980s crippled the Textile mill industry in Mumbai and Maharashtra.During this period the composite structure of the mill industry broke almost completely. While the spinning sector prospered with the modern machinery, the number of working looms in the organized mills sector shrunk considerably and most of the mills found it profitable to close down their weaving section due to bad market condition, high cost of labour, low productivity and tough competition from the powerloom sector. As a result, there was practically no demand for the shuttleless looms manufactured by the two Companies mentioned above which prompted them to close down their shutters one by one.In the meantime, due to the pressure from the decentralized powerloom sector the Government was forced to allow import of second hand weaving machinery which added to the woes of indigenous manufacturers of shuttleless looms. M/s. LALW also had to discontinue the production of shuttleless looms subsequently. During 80s and upto 1991 there was protective market for spinning and processing machinery but not for the weaving machinery due to high production cost and import of second hand looms. Initiatives discouraged after liberalizationThe Industrial Policy announced in 1991 liberalised the Industry in general to a considerable extent. The market became open to the foreign manufacturers and there was tough competition. The spinning machinery makers came of age technologywise and capacitywise and there was also very high demand for spinning machinery. The weaving machinery could not prosper due to the onslaught of import of second hand machinery. There was no restriction on import of second hand weaving machinery before and after 1991. After 1992, there was no support of the Government either for development of weaving machinery or any other textile machinery.In this regard, the only commendable fact was that we became self-sufficient in Weavi ng Preparatory Machinery viz. High Speed Sectional Warping, Direct Warping and Sizing matching with world class technology. M/s. Rabatex Industries, Ahmedabad; M/s. Prashant Gamatex Pvt. Ltd. , Ahmedabad, M/s. Amritlakshmi Machine Works, Mumbai and M/s. Jupiter Engineering Co. , Ahmedabad are the most reputed domestic manufacturers. This could happen because there was less import of second hand machinery and the cost differential between domestic and imported machinery was large and the machines were custom built.The indigenous shuttleless looms (older technology) which have been developed during the late 90s and early 2000, however, could not find a good market due to the adverse policy of the Government i. e. import of second hand shuttleless looms under concessional duty and also under concessional rate of interest under TUF. The situation continues. However, indigenous machinery manufacturers viz. M/s. Aalidhra Weavetech Pvt. Ltd. , Surat; M/s. Bhavin Sales Corporation, Surat; M /s. Dynamic Loom Mfg. Co. , Ahmedabad; M/s. Dinkier Sokerjee Machines, Surat; M/s. Friends Engg.Works, Panipat; M/s. Himson Textile Engg. Inds. Pvt. Ld. ; Surat; M/s. Industrial Engg. Works, Bangalore; M/s. Lakshmi Automatic Loom Works Ltd. , Coimbatore; M/s. Laxmi Textile Stores, Ahmedabad; M/s. Lifebond Machines Pvt. Ltd. , Surat etc. have developed and are producing crank beat up type shuttleless looms with a speed between 450 – 500 mpm. All latest generation shuttleless looms i. e. Airjet, Waterjet, Projectile & Rapier of European and Japanese origin are high speed, high tech, high productive and energy efficient running at a speed of 500 rpm and above.This machinery, though at a higher cost, is economically viable due to its quality and productivity, cost of fabric per meter being less than second hand machinery. Since last 4/5 years, all new large textile units as well as existing reputed textile units expanding capacity had been importing these kinds of machinery to ma ke them commercially viable, e. g. Alok Industries, Welspun, GHCL, Vardhman Group, Century, Raymonds, etc. Therefore, machinery, if made/developed indigenously need to be cost competitive in all respects and cost of production per meter of fabric should be same or less with equivalent quality standard.Then only the manufacturing would be viable and accepted by the Mill Industry/ Organized Sector. Unless there are disincentives for second hand machinery, there is no hope that the decentralized powerloom sector would go in for new machinery. Processing & Finishing Machinery Sector The history of the processing machinery manufacturing sector was somewhat different. During 70s and 80s there were a number of foreign collaborations : M/s. Mather & Platt, U. K. M/s. Reggiani, Italy M/s. Stork, Holland M/s. Gerber, M/s. Menzel and M/s. Eduard Kusters, GermanyMather & Platt (I) Ltd. * SBM Engg. * ATE (Stovec/Stormac*) Calico Indl. Engineers* M/s. Artos & Benninger, Germany M/s. Famatex, Germ any M/s. Obermeaier, Germany M/s. Toshin Kogyo, Japan * Presently not in operation T. Maneklal* Famatex India Ltd. * Dalal Engg. Star Indl. Engg. * Some Companies developed machinery by copying the imported technology viz. M/s. Harish Textile Engineers, M/s. SM Engg. etc. As mentioned earlier, composite structure of the textile industry broke in Europe during 70s. The same happened in India during 80s. This affected the processing sector.While spinning industry became more organized, competitive and export- worthy, the weaving and processing sectors became uncompetitive, decentralized and export unworthy. Since the Government encouraged low technology for the weaving sector (handlooms and ordinary powerlooms), the organized weaving sector in the mill industry could not come up. Similarly, the decentralized processing sector, which started with second hand machinery from the composite mill industry, did not modernize the units in course of time. The domestic manufacturers which had o llaboration prior to 1991 could not continue with their collaborators after 1991 as the market became open and the foreign manufacturers found it easier to market their machines in India rather than making the same under collaboration. During 80s as well as 90s strenuous efforts were put in by some of the Companies to develop machinery by way of re-engineering. Some of them became successful. However, some of the Companies had to close down their shutters due to tough competition in the open market after 1991. Many manufacturing units came into existence to produce low technology cheap machinery to bridge the gap between demand and supply.This had resulted in manufacture of poor quality machines and poor quality processing of textiles thereof. The encouragement given by the Government to the hand processing sector was misused and low technology prevailed. The prominent processing machinery makers who developed quality machines during 80s and 90s were: 1. M/s. Calico Indl. Engineers, Mumbai* 2. M/s. Dalal Engg. Pvt. Ltd. , Mumbai 3. M/s. Devrekha Engineers, Surat 4. M/s. Harish Textile Engineers Ltd. , Mumbai 5. M/s. Mather & Platt (I) Ltd. , Mumbai* 6. M/s. Primatex Machinery Ltd. , Mumbai* 7. M/s. SLM Maneklal Ind. Ltd. , Mumbai* 8. M/s.SM Energy & Electronics, Mumbai 9. M/s. Standard Fabricators (I) Pvt. Ltd. , Mumbai 10. M/s. Stovec Industries Ltd. , Ahmedabad 11. M/s. Texprint Engineers Pvt. Ltd. , Ahmedabad * Presently not in operation In the latter half of 90s again saw acute demand recession from the Textile Industry which continued upto 2002. During this period the Textile Engineering Industry started looking beyond the domestic demand. Export which was never more than Rs. 100 crore until 1988-89 started increasing and reached the level of Rs. 406 crore during 2002-03. There were exports of spinning as well as processing machinery.Some of the manufacturers could compete with the European manufacturers in processing machinery abroad with their high qual ity machines. Improved Demand The demand for textile machinery started picking up slowly after 2002 as the Technology Upgradation Fund Scheme became popular by then. The Textile Industry was also expecting a better market after the st liberalized Quota Free Regime under WTO from 1 January, 2005. Major demand for machinery started after 2004 which has prompted the Textile Engineering Industry to increase its production from the level of Rs. ,341 crore during 2003-04 to Rs. 2,780 crore during 2006-07. However, this happened mainly in spinning machinery and weaving preparatory machinery and to some extent in weaving and processing machinery. The weaving and processing machinery sectors though increased their capacity to a considerable extent, has a long way to go. The processing sector started competing with foreign manufacturers since 1991 though sporadically. They have improved their technology and their machines are now capable of producing fault free processed fabrics in short as w ell as continuous lots.The domestic demand for such machinery has also increased. M/s. Dhall Enterprises & Engineers Pvt. Ltd. , Ahmedabad, M/s. Harish Enterprises Pvt. Ltd. , Mumbai, M/s. Tex-Fab Engineers (India) Pvt. Ltd. , Navi Mumbai produced continuous dyeing plants with latest technology for long length of fabric processing which are running successfully in the mills. The following manufacturers have exported their processing machines and earned a good name: 1. 2. 3. 4. 5. 6. 7. M/s. Dalal Engineering Pvt. Ltd. , Mumbai M/s. Devrekha Exports (Bhagyarekha Engineers Pvt. Ltd. ), Surat M/s.Dhall Enterprises & Engineers Pvt. Ltd. , Ahmedabad M/s. Harish Enterprise Pvt. Ltd. , Mumbai M/s. Kusters Calico Machinery (P) Ltd. , Vadodara M/s. Lakshmi Card Clothing Mfg. Co. Pvt. Ltd. , Coimbatore M/s. Yamuna Machine Works Pvt. Ltd. , Mumbai These manufacturers are in a position to make many high quality processing machines and compete with foreign manufacturers. Knitting/Hosiery Machine ry Knitting/Hosiery Industry as well as Garment Industry was reserved for the small scale sector. Both these sectors thrived initially with imported second hand machinery.Both Woven Garment and Hosiery Garment put together the total export of the country was only Rs. 5 crore during 1970-71. The exports increased to Rs. 500 crore in 1980 and today it is above Rs. 17,000 crore, thanks to the removal of quota shackles under WTO, implemented by the Government couple of years back. Decentralised character of the Garment industry did not enthuse the TEI to take up the manufacture of knitting machinery. As such this sector remained neglected altogether. Some efforts were made to manufacture knitting machinery by two Companies viz. M/s.Lakshmi Automatic Loom Works Ltd. , Coimbatore and M/s. Himson Textile Engineering Industries Pvt. Ltd. , Surat in late 80s. However, after liberalization of the Industrial Policy in 1991, imported machines became cheaper technology wise than the Indian machi nes due to which obviously there was no demand. Therefore, manufacture of knitting machinery had to be discontinued. Testing & Monitoring Equipments Sector As regards the Testing & Monitoring equipments are concerned, the textile industry was dependent on imported testing and monitoring equipments in 60s and early 70s.The Textile Engineering Industry started developing such testing & monitoring equipments in the late 70s and today all kinds of high quality latest generation testing and monitoring equipments are being manufactured in the country. Some of the items are: †¢ †¢ †¢ †¢ †¢ Air Jet Weaving Machine Controller Centralised Computerised Operation of Group of dyeing Machines with Dyeing Data Management Software Package Fully Automatic High Volume Fibre Tester for Length, Strength, Micronaire, Colour, Trash and Maturity module Multi-Channel Pre-Set Yarn Length Indicator & Controller for Winding/Texturising/TFO Machines with Software PackageYarn Evenness T ester Some names of the Companies manufacturing different categories of such instruments are under:†¢ †¢ †¢ †¢ †¢ †¢ Paramount Instruments Pvt. Ltd. Pioneer Instruments & Innovations Premier Evolvics Pvt. Ltd. Semitronik Instruments Tex Lab Industries Thymas Electronic Pvt. Ltd. Growth of the Parts & Accessories Sector The growth of the textile industry along the length and breadth of the country initiated the manufacture of parts and accessories for their machinery. Today, barring a few critical items of equipments and accessories lmost all kinds of parts and accessories of high quality are manufactured in the country. The number of such manufacturers could be around 800. Some of the important items manufactured here are: Blow Room beaters, card clothing, cross-roll attachment for cards, top rollers for high speed draw frame, flyers for speed frames, rings, spindles, inserts, cots and aprons and variable drives for ring frame, production of monitoring data in spinning and weaving online quality checking systems, cloth guides, web straighteners in processing, etc. etc.The TEI not only fulfills the demand for spares from the domestic textile industry but also exports its products to Asia, Africa, the Middle East, Far East, Europe, America and other countries as well. The following table shows data on production of Textile Machinery Parts & Accessories during the last 15 years: Year 1985-86 1990-91 1999-2000 2004-05 2006-07 Rs. in Crores 83. 43 208. 59 288. 79 276. 44 339. 68 Synthetic Yarn and Fabric Processing Machinery Sector Synthetic weaving sector of the textile industry which was scattered in different parts of the country in early 70s became localized in Surat, Bhiwandi, Belgaum.During 80s and 90s the synthetic sector was dominantly established in and around Surat, Gujarat. This simultaneously necessitated the development of synthetic yarn and fabric processing machinery. As a result the Textile Engineering Industry located in and around Surat and Mumbai developed draw texturising machines, draw twisters, two-for-one twisters for filament yarn, zero-twist filament sizing machines, rewinders, precision cone winding machines, etc. etc. More successful manufacturers are M/s. Himson Textile Engineering Industries Pvt. Ltd. , M/s. Aalidhra Textile Engineers Pvt. Ltd. Meera Industries, etc. The synthetic mechanical processing machinery was being imported during 70s and 80s. However, with the development of such machinery indigenously, we are not only catering to the domestic demand but also exporting the same. More and more developments are taking place due to the demand for such machinery. Conclusion Thus the Textile Engineering Industry could develop all types of textile machinery except garment machinery, high speed sophisticated knitting machinery, high speed shuttleless loom (rapier and air jet) and some of the latest generation processing and finishing machinery.The reasons for not developing these mac hinery have been categorically explained in the foregoing paras. What the TEI expects and aspires Under the above background it is felt that there is a real need to develop and manufacture all kinds of textile machinery in the country as per the existing and expected demand. Government should encourage these efforts and should come forward to help this Rs. 3,000- 4,000-crore capacity industry in a comprehensive and systematic manner with short and long term policy measures. It should take note of the developments of textile machinery made by China during the last 10 years.What China did? 1. Forced the foreign manufacturers to start manufacturing their brands in China by not allowing the import of machines from abroad. 2. Financed the domestic manufacturers for setting up the complete plants with large capacities. 3. No second hand machinery import 4. Incentives given for replacement of old machinery with new machinery. Incidentally, it may be mentioned that China had 6 lakhs ordinar y powerlooms/automatic looms prior to 2002. Today, they have shuttleless looms (2, 50, 000 to 3,00,000 approx. ). There may be few ordinary powerlooms in villages and automatic shuttle looms in some corners.No estimate of such looms is available. They have installed large machinery manufacturing capacities and are also exporting all kinds of textile machinery at a cheaper price. Therefore, the following measures are needed to improve the present condition of the Indian TEI A) Policy Measures †¢ †¢ Scheme for Modernisation, technology upgradation and productivity advancement of the Textile Engineering Industry (TEI). The interest remission under the scheme should be 5% with one time 10% Capital Subsidy over & above interest remission (Similar Schemes are available for the Textile Industry).Scheme to support Research & Development. o o †¢ †¢ †¢ †¢ †¢ †¢ †¢ Suitable capital grants and annual recurring grants for the existing R Centre at IIT, Powai, Mumbai. Suitable capital grants for the R Institutions located at Surat, Ahmedabad, Coimbatore, Delhi, Panipat and Ludhiana willing to take up R for textile machinery. Capital grant for indigenous development of machinery to the new projects as well as existing projects which got delayed due to lack of funds. Tax break/holiday for the manufacture of High Speed Shuttlelesss Looms/High-tech processing and finishing machinery for a period of five years.To allow import of complete sophisticated machinery in CKD/ SKD condition at concessional rate of import duty for a minimum period of three years without any restrictions for manufacturing textile machinery under collaboration/joint venture/import of designs and drawings or by way of reengineering. Ban import of machinery where similar technology machines are available indigenously e. g. shuttleless rapier loom â€Å"crank beat-up type†, water jet Looms (800 rpm) etc. Import of textile machinery in second hand condition sh ould not be allowed under the Technology Upgradation Fund Scheme/20% CLCS Scheme.Ban on import of second hand shuttleless looms with weft insertion rate less than 800 mtrs. per minute. Revival of TIFAC scheme for development of textile machinery with 90% loan component and softer rate of interest of 3%. B) Fiscal Measures †¢ †¢ †¢ †¢ †¢ †¢ Reduction of excise duty from 14% to 8% Excise duty on parts, components and accessories of the machines be reduced to 8%. Maintaining the floor level customs duty on textile machinery at 7. 5% without any exemptions Uniform rate of customs duty for complete machinery and raw materials, parts, components & accessoriesUniform treatment to the domestic suppliers of machinery to EPCG license holders. 150% weighted Income Tax deduction for R expenditure made by the Textile Engineering units. If the above measures are taken seriously, the TEI aspires to make available modern machinery and equipment both in quantum and qual ity to meet the future needs of the textile industry at short delivery periods coupled with effective and prompt after-sales-service. About the Author: The author is the Secretary of The Textile Machinery Manufactures Association.

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Reply to professor comments regarding # 1110606 - Assignment Example Intrinsically, the support pattern is upheld for a long period of time, maybe, till another person takes over the presidency. The power to declare war makes the presidency too powerful. Despite the constitution giving the Congress the exclusive power to declare war, in the contemporary presidency, the presidency can declare war without any formal Congress declaration. The U.S. is rich in missiles that have nuclear warheads. It’s only the president who is bestowed with the power to launch them by giving a signal, something that can lead to instant destruction of the cities in their entirety (Lowi 2012, p. 195). Surprisingly, the people who wrote and promulgated the presidency had the right intention of striking a balance of power between the presidency and the Congress; however, the modern presidency has evolved to claim too much power as compared to the Congress. The writers of the constitution would not predict that the U.S. world transform to be the worlds richest nation in terms of weapons. This has prompted amendments to the constitution from time to time, giving the presidents superfluous power s. The strength of the U.S.’s economy heightens the presidency’s powers. Presumably, the U.S. is among the top economies in the world. As such, the presidency of America is respected all over the world (Lowi 2012, p. 177). The president uses jets to tour the world and the advice he gives to other nations is taken with much seriousness than any other executive. Also, many dignitaries visit the White House from time to time to come and consult with the presidency on various issues. Contrary to the Congress, the presidency has evolved to be such a respected position, both locally and in the international

Stock analysis Essay Example | Topics and Well Written Essays - 4500 words

Stock analysis - Essay Example This includes, but is not limited to, the background of IHG and a brief statement of four special informational events which will be analyzed in depth within this brief response. Accordingly, a literature review will be shown which helps to underscore and elaborate upon many of the specific theoretical interpretations of the methods utilized within this report as well as relate pertinent information with regards to how such a process has been traditionally understood. Additionally, a demonstration of development of an event study is included and defined. Furthermore, the third part of the piece will include a methodological review. The explanations of approaches which have been utilized to conduct this report will be given as well as some assumptions and critical common factors that are associated with this methodology. Likewise, a research design and results section will comprise the fourth part of this analysis. Ultimately, the issues which will be explored and/or discussed will be analyzed based upon an event study methodology. This part will begin with defining the date of events and then choose the estimated period and test period. Following this, marker models will be chosen as a specific benchmark for abnormal returns. Similarly, a linear regression for the market will be chosen to shed further light on the theoretical interpretation and key data presented. In such a way, ordinary least square assumptions will be necessary to estimate the stability or whether or not it exists to a discernible degree at all. Based on the results of linear regression, the abnormal return will be calculated. Next, the Cumulative abnormal return, or CAR will be utilized as a means of indicating the effect of events specific to those which have already been related and identified. Further, a T-test by CAR will be presented to show the significant of these events. A final portion of the research will necessarily be the conclusion of this report. Within this conclusion, it is t he intent of this researcher to show the basic information of this report and summarize it according to the inference which has been drawn. Background information: InterContinental Hotels Group (IHG) is global hotel group which operates nine hotel brands; which in turn comprise a total of 4,600 hotels in more than 100 countries and regions, more than 676,000Â  rooms. IHG was established in 1946 and is the world's largest and most widely distributed network of professionally managed hotels. With regards to the business model that IHG exhibits, this can be understood in three distinct ways. First, IHG operates as a franchisor, second as a management accessory, and thirdly it operates upon a rental basis. In addition, the franchise has been recognized as exhibiting an effective business philosophy by many leaders within the industry. This report chose four specific events to explore the relationship with the IHG stock price volatility for a period time. These four events are shown bel ow: (1) On the 18th April 2012: IHG shows its support for small business owners, entrepreneurs and Road Warriors. (2) On the 7th August 2012: IHG reported interim results from the 30th June 2012 and announced $1bn return of capital. (3) On the 8th October 2012: IHG reported the results of general meeting about Special Dividend and Share Consolidation. (4) On the 12th November 2012: IHG announced that

Glaucoma research Essay Example | Topics and Well Written Essays - 750 words

Glaucoma research - Essay Example 24 consecutive patients presenting, over seven years, to the emergency department of a tertiary eye hospital in Melbourne, Australia, to identify incident cases of DSCH following glaucoma surgery. Clinical parameters of interest included: indication for glaucoma surgery, clinical risk and prognostic factors, and clinical outcomes. Once cases were identified, controls were selected randomly and matched for type of surgery, age, sex, and interval of time since the initial surgery. Pearson’s chi-square analysis was used to compare cases and controls. Results: There were 24 cases, for a seven-year incidence of DSCH of 1% in patients after glaucoma surgery. The average duration of time from glaucoma surgery to DSCH was 2.88 days. DSCH was most common with glaucoma drainage implants (15.4% 7-year incidence). Significant risk factors included systemic hypertension (OR 5; 95 CI 1.41-17.7; p-value 0.02), diabetes mellitus (4.23; 1.08-16.6; 0.03), ischemic heart disease (5.92; 1.35-26.1; 0.008), chronic obstructive airways disease (8.33; 2.09-33.2; 0.01) and anticoagulant use (13.8; 1.51-125.8; 0.002). Preoperative intraocular pressure (p=0.56), myopia (3.22; 0.88-11.8; 0.09) and hyperlipidemia (1.9; 0.50-7.16; 0.29) were not significant risk factors for DSCH. Visual outcomes of DSCH patients were poorer than controls, with 17 of 24 cases (71%), but only 8 of 24 controls (33%) worse, relative to pre-operative VA, when reassessed at follow-up (p = 0.004). Conclusions: DSCH is a relatively common and potentially serious complication of glaucoma surgery. Patients with known clinical risk factors should be warned of risk of DSCH and should be handled with care. Surgery is the main stay of treatment for those cases of open angle glaucoma uncontrolled by medical treatment. The most widely practiced operation is a trabeculectomy. In recent years a number of alternative non-penetrating glaucoma drainage operations have been developed such as deep sclerectomy and

Managing in Multinational Companies Research Paper

Managing in Multinational Companies - Research Paper Example Culture refers to a set of gained knowledge that some individuals may employ to make meaning of experiences towards generating a unique set of behavior. Different business establishments engage diverse cultures in their setups. These cultures are necessary for guiding the entire organization towards a common objective, by promoting a uniform way of thinking and acting. In other words, an organization prevents the subjectivity of decisions and behaviors in an organization, which promotes uniformity and team working spirit. On the other hand, countries will have different cultures that organizations have to respect, which are inherent in the views and values of such a country. A multinational company setting its operations in the US will need to observe a relatively diverse organizational culture compared to one setting operations in Mexico. An organization has to respect and observe a country’s culture while designing its organizational culture. This report investigates the dif fering views and beliefs surrounding overtimes and how the issue differs across the two countries. In this investigation, the report will illustrate that national cultures have a role to play in shaping organizational cultures.  A common aspect in both countries is that a company will consider other types of employment other than permanent employment to save on labor costs, to achieve flexibility and to benefit from workers for a short period (JILPT, 2009). Such an approach is common in short-term specialized jobs. In addition, there is a major variation in hourly pay rates between permanent and part-time workers in Japan compared to Germany (Smith 2000). Part-time employees have fewer benefits in bonuses offered compared to their full-time colleagues in Japan than in Germany where bonuses are not of much importance. Germany has more part-time employees than in Japan due to the working time variation. There are two reasons to explain the prevalence of part-time working in Germany than in Japan. One, such part-time workers are found in the tertiary sector, which bore the brunt of economic crises than the manufacturing sector, which has motivated employers to source more part-time workers (Smith, 2000). Part-time working in both countries has mainly improved because of structural changes in the economy towards a service economy. In Japan, non-regular employees get much fewer salaries with the difference increasing when the bonuses and one-off payments are considered in permanent employment (Ishiguro 2008). In Germany, on the other hand, part-time employees and regular employees have fewer differences in their wages; a part-time worker earns almost like a regular worker (Smith, 2000), with part-time workers taking advantage of overtime payments to bridge this salary gap. These are some of the factors differentiating working patterns between the two countries.

Exhibitions of Kiki Smith in Brooklyn Museum Essay

Exhibitions of Kiki Smith in Brooklyn Museum - Essay Example During the exhibition, Smith displayed her artworks such as the Walking Puppet. She further displayed the Installation image of major Henry Trippe House Chamber Room during the 2010 exhibition. In 2005, Smith was elected to American Academy of Arts and Letters in New York. Smith currently lives in New York and the Pace Gallery has represented her since 1994. She has been exhibiting annually since 1982 at Fawbush Gallery in New York. In 1990, she received acclamation for her exhibition at Museum of Modern Art, New York. She exploited the use of ceramic, fabric, paper, and glass for her work. Her work reflected the physiological and psychological body power. Smith’s first full-sized sculptures were stoic figures. The sculptures showed naked male and female couple. They exhibited leaking body fluids from both the figures. The figures also show human power and powerlessness through the presence of a blood pool. The sculptures present issues regarding sexuality and gender. Smith ha s produced many accolades. Her recent accolades include Theo Western Berger Women of Excellence Award in 2010, Nelson A. Rockefeller Award and Purchase School of Arts in 2010. She recently did work on U.S State Department Medal of Arts that was given by Hillary Clinton in 2012. In the year 2009, she finished her 50th Edward MacDowell Medal and Women in the Arts Award. Smith has several exhibitions. Her work has featured in the PACE gallery exhibition frequently. One such exhibition where her work featured was the FOG Design + Art Fair in 2015 in San Francisco. The exhibition explored spiritual aspect her work. Smith has a great relationship with Brooklyn Museum. The Brooklyn Museum has an important cultural institution in U.S. The Museum has a vast collection of Smith’s artistic work. Such work involves After Lewis Carroll of 2003, Lebbeus Woods of 2004, Logan Elm Press, and Universal Limited Arts Editions, Inc. among others.

One hundred years of solitude draft1 Research Paper

One hundred years of solitude draft1 - Research Paper Example From that Island, Arcadio invents a world according to his perceptions. Soon after foundation of Macondo, it became a town frequented by extraordinary and unusual events involving the generations of Buendia Family. The family becomes unwilling to escape the wrath of their self-inflicted misfortunes. Finally, a fierce hurricane destroys the town. At the end of the novel, a descendant of Buendia deciphers an encryption, which generations of the family have failed to decode. The secret message became an informer to the recipients of every misfortune and fortune. A look at one Hundred Years of Solitude from the theoretical framework of Post Colonial Criticism reveals interesting relationships between the novel and the present day Columbia. From a postcolonial lens, the novel expresses symbolism and metaphors in a way that has much similarity to Columbia. The protagonists in the novel are controlled by the complexity of time and their past. Ghosts throughout the novel follow the characters. The ghosts symbolize the past and the haunting nature the ghosts have over Macondo (GarciÃŒ a194). The displaced repetition and the ghosts evoked are firmly grounded in the development of Columbian history. Ideological configuration of Columbia ensured that Buendias and Mocondo were always ghosts to some extent. The ghosts are estranged and alienated from history. They represent the victims of harsh reality of colonialism and underdevelopment. Additionally, it represents the ideological illusions, which haunt and reinforce social conditions in the postcol onial Columbia. Columbia was colonized by Spain. Post-colonialism critical lens upon Columbia interprets the changes and challenges of the colonized Columbia as the effects of its colonization. The core imperative symbols are power and oppression. The goal of this critical lens is to seek and understand the behavior of the Columbian characters and society as a whole. These behaviors and character traits can be

Music Essay Example | Topics and Well Written Essays - 250 words - 15

Music - Essay Example The written parts of music were created for Bennett’s stunning ensemble called Decibel. The work was inspired by paintings of Marcel Dzama, a Canadian painter. The chosen composition is the first part of the album; it virtually opens â€Å"Dzama stories†. â€Å"Vagabonds and Blood from the Earth† is surely a powerful composition for the album opening (in combination with the calm intro). Here, like in the rest of the album, Bennett created a powerful and balanced interplay of structural written music fragments and immediate striking improvisation. Then, the sharp â€Å"edge† between calm fragment of the introduction and â€Å"blitzkriegs of turbulence, throbbing and thumping in turn† (Graham) seems to be rather innovative and daring, and the composition is significant as a part of Bennett’s â€Å"sound† representation (or â€Å"reading†) of Dzama’s works. To my thinking, the composition is virtually overwhelming in terms of emotional charge, and even thrilling (due to piercing strings and sharp dramatic transitions between calm and intense parts). In the moments of intensification (when strings reach especially high pitches and the entire composition becomes chaotic to some extent), th is piece could even be associated with a horror movie or a thriller. However, despite my deep respect towards the talent and creativity of this composer, this piece evokes rather negative and turbulent emotions in me: anxiety and some intangible

Why we get a brain freeze Essay Example for Free

Why we get a brain freeze Essay Brain freeze occurs when something extremely cold touches the upper-palate (roof of the mouth). It normally happens when the weather is very hot, and the individual consumes something too fast. We all love Icey cold foods, especially on a ht summer day, but too much of it too fast can give us a real headache. Who hasnt had a bout of brain freeze immediately after they throw that blizzard back too fast. Brain freeze is something which most people have heard of, but which they actually know very little about. Generally it is the term given to the feeling you get after eating or drinking something extremely cold. It tends to occur when these foods and drinks are consumed fairly quickly and it is definitely not a very nice experience! So just what is it and why does it occur? What Happens What you may not know is that the pain actually occurs from the cold food and drink touching the roof of the mouth. It is the warming, afterwards, of the hard palate that causes the pain rather than the cold as what many people mistakenly think. So just why does it occur? Well the body is designed to keep as much heat in as possible, especially on a cold day. So when you breathe through your mouth for example, the body reduces the blood flow in the mouth in order to preserve heat. The way in which blood flow is reduced is that the diameter of the blood vessels is reduced. This is known as Vasoconstriction and once it has occurred, the blood vessels then return to normal which results in the dilation of the arteries within the palate. It is the nerves within the palate that translate the dilation as pain and that is why you experience brain freeze.Usually brain freeze only lasts a few seconds but it is possible that it could last for a minute or two. It is extremely rare for the pain to last any longer than that. Dealing with Brain Freeze When you experience it, it can be a really horrible experience. However, there are some things that you can do which are thought to help to relieve the pain. One of these things is to move your tongue to the roof of your mouth. This helps to warm the palate and similarly you could also try to drink water that has been left at room temperature. One thing to remember is that the temperature within the mouth does tend to heat up fairly quickly. So by covering your nose and your mouth while breathing, it could really help to speed up the warming process. The cold air that you breathe in will only make the condition worse. About Brain Freeze Studies have been carried out to see if there is a link between brain freeze and its sufferers. Not everybody experiences the condition; it is thought that only roughly 30% of the population suffers from brain freeze. Usually it is brought on after eating something such as ice cream or drinking a slurpee drink. There is also a theory that people who suffer from migraines may be more likely to suffer from brain freeze than anybody else. Slow Down Brain freeze is that little extra you get when you eat or drink your favorite cold foods. If you have been susceptible to brain freeze in the past, be careful when consuming these goodies, take your time and enjoy them. This way you can thoroughly enjoy that icey treat and avoid that icey headache. My Summary I did my summary on brain freeze’s. You can get a brain freeze by ice cream. You can also get a brain freeze by water ice or something that you ate that was cold. A brain freeze often occurs when something cold touches the top of your mouth.

Economic Growth And Development Of Nigeria Economics Essay

Economic Growth And Development Of Nigeria Economics Essay Agriculture is an important sector in the developing world. It contributes to economic growth and development as well as a major employer to majority of the people of Sub-Saharan Africa including Nigeria, especially those in the rural areas. This study investigated the role of agriculture to Nigerias economic growth and development. Secondary data were used for the analyses and were obtained from various publications of the Central Bank of Nigeria (CBN) and the National Bureau of Statistics (NBS). Variables used for the estimations included overall gross domestic product (GDP) of Nigeria, agricultural GDP, government spending on agriculture, credit to agriculture and the population engaged in agriculture. The data cover the period between 1981 and 2010. Growth and Cobb-Douglas production models were estimated. The results showed that overall GDP, agricultural GDP, and government spending to the agricultural sector of Nigeria generally assumed upward trends during the period. Credit t o agriculture and government spending to the agricultural sector were the factors found to significantly influence the contribution of agriculture to national economic growth and development. It is concluded that agriculture continues to play important role in the economic growth and development of Nigeria. It is recommended that policies should be formulated to encourage the flow of more credit to the agricultural sector of Nigeria. Besides, it is important that the government of Nigeria to increase its spending on the agricultural sector since this positively and significantly influence the contribution of agriculture to national economic growth and development. 1.1 Background to the Study Nigeria is one of the largest countries in Africa, with an estimated population of about 158 million (World Bank, 2010). The country has highly diversified agro-ecological conditions, which makes it possible for the production of variety of agricultural products. Furthermore, agriculture constitutes one of the most significant sectors of the economy (Manyong, et. al., 2005). Agriculture in Nigeria employs about 70% of the working population and contributes with about 60% to the national income (Oluwasanmi, 1966). Its contribution to Gross Domestic Product (GDP) accounted for about 40% in 2010 (CBN, 2011). During the early days of independence, Nigeria was and still is relatively self-sufficient in food production, and foreign exchange earnings from agricultural exports have been used over the years to support in financing imports needed for economic growth and development (Anderson, 1970). The role of Agricultural production in Nigeria is not only to provide the food needed to feed the rapidly growing Nigerian population, but also to provide the money and materials needed for industrialization and for bringing the country into the industrial and technical age (Oyenuga, 1967). In order to carry out this role, the agricultural system needs to be reorganized and new techniques of production have to be introduced, such as the use of more efficient implements, improved seed varieties and fertilizers. To do this, the country not only needs to co-ordinate its agricultural research projects and provides capital but also to make available trained field staff who can ensure the acceptance of these innovations by peasant farmers (Oluwasanmi, 1966). This is because majority of the peasant farmers live in rural areas where there is a high level of illiteracy and they hardly accept change. Despite the fact that Nigeria is buoyantly endowed with agricultural and other natural resources, the agricultural sector is still growing at a very slow rate. It is only a little over half of the countrys agricultural land is under cultivation (Manyong et al, 2005). Increased use of mechanization will help, but this is not going to be easy given that about 63% of the farms in Eastern Nigeria and 45% of them in Western Nigeria are less than an acre in size and many of them are much smaller (Oyenuga, 1967). The agricultural sector remained weak during the oil boom decade of the 1970s, and this accounted largely for the declining share of its contributions to economic growth and development of the country. The trend of the share of agriculture in national GDP reflects a substantial variation and long-term decline from about 60% in the early 1960s through to about 49% in the 1970s and only about 22% in the 1980s. It is believed that unstable and often-poor economic policies (of pricing, trade and exchange rate), the relative abundance of the sector and the negative impact of oil boom were all important factors responsible for the decline in agricultural sectors contributions to national economic growth and development. Since the oil boom of the 1970s, there has been a severe increase in the incidence and drama of poverty in the country as a result of the unstable performance of the agricultural sector, which employs majority of the poor. As a result of the dwindling performance of agriculture in the country, government have over many years formulated and implemented various policies and projects aimed at putting back the agricultural sector to its vital place in the economy. But with evidence from empirical literatures, no significant success has been achieved due to several problems confronting the performance of the sector (Yusuf, 2005). However, the contribution of agriculture in both gross domestic product (GDP) and non-oil GDP increased in the 1981-2000 periods. The share of total bank credit going into the agricultural sector increased rapidly between the 1981-1985 and 1991-1995 periods and then declined in the 1996-2000 periods. The share of the federal Governments capital expenditure going to the agricultural sector declined immensely over the periods. The share of total employment by the agricultural sector also declined. Generally, there was unstable growth performance of the agricultural sector between the periods 1981 to 2000, with some evidence of inconsistencies of trends, probably due to uncertainties in policies and policy implementation. Some of the problems leading to poor performance of the agricultural sector in the country include technical issues, resource constraints as well as socio-economic problems and organisational constrains. It has been observed that in past policies of the pre-structural adjustment period, sector-specific agricultural policies were made to improve agricultural marketing, to cut down production cost, and to enhance product prices as incentives for increased agricultural production. Important policy instruments are for agricultural commodity marketing and pricing, input supply and distribution, input price, Subsidy, land resource use, agricultural research, agricultural extension and technology transfer, agricultural mechanisation, agricultural cooperatives, agricultural water resource and irrigation development. Macro policies, institutional policies and legal frameworks complemented sector-specific policies. The structural adjustment period was enhanced more by structural adjustment pol icies. Problems to agricultural policy strength include policy instability, policy inconsistencies, weak policy formulation, poor policy implementation, and harsh institutional framework for policy coordination (Idachaba, 2005). With reference from the dual economy model, early writers predicted economic development as a growth process that needs the re-allocation of factors of production from a weak, low-productivity agricultural sector to a modern and commercialized industrial sector with higher productivity and more returns (Lewis, 1954). As a primary sector, agriculture was seen to contribute significantly to economic growth and development by providing labor and food to the industrialization process. However, this idea was taken away by the era of the Green Revolution in Asia during the late 1960s and early 1970s. The possibility of restructuring traditional agriculture into a modern sector shows agricultures capability as a growth sector and its effective role in emphasizing broader d evelopment (Adelman, 2001). Although the advantage of connectivity between agriculture and non-agriculture in achieving the growth and development process had long been recognized (Hirschman, 1958, Johnston Mellor, 1961), post-Green Revolution economists stressed the role of agriculture in rural growth and development (Haggblade, Hammer, Hazell, 1991; Haggblade, Hazell, Brown, 1989; Hazell Haggblade, 1991; Hazell Roell, 1983). The vital advantage of agricultural growth on rural development was found to be effective in countries (e.g. Nigeria and other developing countries) where small farms dominated agriculture (Rosegrant Hazell, 2000). Therefore, given massive rural poverty and small-scale farming in Africa, the conventional wisdom of agriculture emphasizes a strong role for agriculture in African growth and development. With reference to the conventional wisdom of agriculture, it is important that policy objectives to promote the role of agriculture in economic growth and development in Nigeria should be realistic and capable of transforming a backward agriculture, and at the same time would also encourage industrial growth and development. The experience of other developing countries has shown that policies that promote industrial development at the expense of agriculture have resulted in food shortages and economic stagnation. Given Nigerias present stage of development, a large-scale industrialization scheme that will tend to shut out 70% of the population who are engaged in rural pursuits is not the best for the long-term interests of the country (Adeyokunnu, 1971). This is contrary to the idea behind early development strategies advocated by Rosenstein Rodan, Nurkse, and Hirshman among others, who emphasized industrial development as the main source of economic growth and development and were biased against the agricultural sector (Schiff and Valdes, 1998). This work is principally concerned with showing empirically the role of agriculture to economic and development of Nigeria. It draws on the long standing empirical studies on the role of agricultural sector to economic growth and development across the world. Widespread rural poverty in Africa and the success of Asias Green Revolution suggests that agriculture is a key sector for African development. Since almost all rural households depend directly or indirectly on agriculture, and given the sectors large contribution to the overall economy, it might seem obvious that agriculture should be a key sector in economic growth and development. Most African countries have failed to meet the requirements for a successful agricultural revolution, and productivity in African agriculture lags far behind the rest of the world. This has recently led to renewed debate within the international development community concerning the role of agriculture in African economic growth and development. This study will therefore contribute to the debate. 1.2 The Problem Statement Decline on the role of the agricultural sector in terms of its contribution to Nigerias economic growth and development in the last three decades made the government to establish different agricultural schemes and programmes to enhance agricultural productivity in the country, which includes River Basin Development Authorities, National Accelerated Food Production Project, Agricultural Development Project, Operation Feed the Nation, Green Revolution, National Directorate of Food, Roads and Rural Infrastructure, Agricultural Credit Guarantee Scheme Fund, National Special Programme for Food Security, Root and Tuber Expansion Project as well as National Fadama I and II programmes. This shows that aagriculture has been an important sector in the Nigerian economy for many years, and is still a major sector even with the oil boom. Basically it generates employment opportunities for the growing population, reduces poverty and contributes to the growth and development of the economy. Economic history provides sufficient evidence that agricultural revolution is important and a pre-condition for economic growth and development, especially in developing countries like Nigeria (Woolf and Jones, 1969; Oluwasanmi, 1966; Eicher and Witt, 1964). The basis of the problem in the Nigerian economy is as a result of poor concentration of the agricultural sector by the Government towards focusing more on a mono-cultural economy based on oil. Agriculture was the mainstay of the Nigerian economy before the discovery, exploration and exportation of oil and over dependence on its revenue for economic expenditure. Agricultural export was contributing to GDP with about 72% between 1955 and 1969 before it fell down to 35% because of the oil crises of early 1970s (CBN, 2002). Nigeria used to be one of the world leading countries in the exportation and production of some major agricultural products between 1940 and 1950. There is evidence from statistics which shows that the export of agricultural products in Nigeria accounted for over 75% of total exports in 1960 (Ekpo and Egwaikhide, 1994). This has changed in recent times as economic growth and development of Nigeria in recent times solely depend on the earning from oil exports that account for over 95%, but contribute with less than 25% in the real gross domestic product (RDGP). This over dependence on oil has affected the countries market forces as well as its economic growt h and development (Okoh, 2004). Because crude oil is an exhaustible asset, it is not advisable for Nigeria to depend on it for sustainable economic growth and development. Therefore, the need to push into competitive market in advanced countries with our agricultural commodities has to be considered, in order to achieve a prosperous economic growth and development in Nigeria (Thirlwall, 1999). Considering the large size of the Nigerian agricultural sector and its important role in the economy, positive reform and adjustment policies are needed in order to improve the overall performance of the countrys economic growth and development (Kwanashie et al., 1998). Besides the oil sector, agricultural sector contributes significantly to the Nigerian economic growth and development because of its rich resource base. Nonetheless, these endowments have to be used wisely so as to diversify the economy and reduce over dependence on the oil sector and on importation. As a result of unstable oil price and continues increase in the price of import goods, the Nigerian economy is not consistent. All these issues have negative effects on the countrys balance of payment, employment and other sectors productivity as well as the purchasing power of the people (Bukar, et al., 1997). At present, impact of the Nigerian agricultural sector to economic growth and development of the country is not as it was in the past periods (NPC, 2000). Nigerian agriculture is still traditional as it was in the pre-independence period (Adewumi and Omotesho, 2002). Even with the existence of the two major rivers in the country (river Niger and river Benue) the agricultural sector is still predominantly rain fed (NPC, 2004). Productivity in the Agricultural sector has declined seriously over the years and this has led to high incidence of poverty levels (Jeter, 2004). Results from the World bank data indicate that over 70% of Nigerians are living below the poverty line (less than $1 per day), showing that there has been an astronomical growth in the level of poverty in the country most of which is associated to poor agriculture since from independence up till today (Chigbu, 2005). Those engaged in farming are mostly rural people, cultivating small area of land using traditional tool s and getting low productivity (NPC, 2004). The problem therefore is that there is limited understanding of the role of agriculture in economic growth and development of Nigeria in recent times. This study seeks to address this gap by empirically examining the role of agriculture to economic growth and development of Nigeria. 1.3 The Research Questions The questions that this study sought to answer are: What are the trends and growth of agricultural gross domestic product (AGDP) relative to the overall gross domestic product (GDP) of Nigeria? What have been the commitments of successive governments in Nigeria to the agricultural sector in terms of public spending in the sector? What have been the contributions of agriculture to the economic growth and development of Nigeria over the past three decades? 1.4 The Research Objectives The main objective of this study is to examine the role of agriculture to economic growth and development of Nigeria. Specifically, the study seeks to: Describe the trends and growth of agricultural gross domestic product (AGDP) in relation to overall GDP of Nigeria. Examine the trends and growth of spending of successive Nigerian governments on the agricultural sector. Estimate the contributions of agriculture to economic growth and development of Nigeria over the past three decades. 1.5 Justification of the Study Policy makers can make use of the outcome of this study in multi-dimensional form. This can be done in terms of interwoven nature of rural employment with agriculture, food security and agricultural productivity. This is because the findings will provide the basis that economic growth and development in Nigeria should be led by agriculture and that the success of plans and policies implemented in the other sectors are depended on agricultural developments for their successful implementation. The outcome of the study will also help policy makers to critically examine the various key possibilities of promoting economic growth and development in Nigeria with regards to the role of agriculture in economic growth and development. Some of these which are of relevant to policy may include issues of: How different alternative economic growth and development states can be achieved using agricultural sectors contribution with the view to decide which one is the best. How societal welfare can be improved from a lower stage to a better stage using agricultural sectors contribution to the economy. How to identify all areas in which the agricultural sector fails and to consider corrective measures. How to evaluate different policy options that have been used to improve agricultural sector as well as determine their implications and consequences on the economic growth and development of Nigeria. How to provide a framework in which different agricultural growth policies can be compared using value judgement and common sense. How to make a critique of different postulates about how agricultural development policies can be improved so that it can provide a menu for better policy measures. 1.6 Scope and Organisation of the Study The scope of this study is to look at the role of agriculture to economic growth and development of Nigeria spanning the last three decades (i.e. 30 years). The study is organised into five main chapters. Chapter one is the introduction which consists of the background to the study, the problem statement, the research questions, the research objectives, the justification of the research and the scope and organisation of the study. Chapter two is the literature review which consists of literature on Agricultural Production in Africa and Nigeria, Agricultural Production and Economic Growth and Development, Commitments of governments to Nigerian agriculture, Agriculture as a Source of Employment for Poverty Reduction, Finally, summary of the literature review and conclusions. Chapter three is the methodology employed in order to achieve the research objectives which consists of profile of Nigeria, the theoretical and model specifications, data types and sources of data. Chapter four is presentation of the results and discussions. Chapter five is the summary of the findings, conclusion and recommendations. After this are the references and appendix. CHAPTER TWO LITERATURE REVIEW 2.1 Introduction This chapter presents an overview of the relevant empirical literature in the subject matter. The chapter is divided into five main subsections. The first subsection is presentation of Agricultural Production in Africa and Nigeria. The second subsection is presentation of Agricultural Production and Economic Growth and Development. Commitments of governments to Nigerian agriculture are presented in the third subsection. The fourth subsection brings to light literature on Agriculture as a Source of Employment for Poverty Reduction. Finally, summary of the literature review and conclusions drawn are presented in subsection five. 2.2 Agricultural Production in Africa and Nigeria There is a growing argument over whether agriculture is still playing important role in economic growth and development in sub-Saharan Africa. Agricultures theorists explain that, in most of the African countries, only the agricultural sector has sufficient scale and growth-linkages to significantly influence aggregate growth and development. Achieving such growth and development will have to do with a large sector like agriculture, which accounts for one-third of gross domestic product (GDP) for the subcontinent as a whole, and an even larger share for two-thirds of African countries. Economists also explain that agricultures poor performance leads to inadequate investment and policies that are historically biased against the agricultural sector (Fan, Zhang, Rao, 2004; Schiff Valdez, 1992; Timmer, 2005). They show the large benefits from investing in rural infrastructure and agricultural technology, and the growth and development potential from catching up to the productivity leve ls of other developing countries. During the period from 1990 to 2004, African industry, including mining and mineral-based manufacturing, grew at 1.9% per year compared to 2.5% for agriculture (World Bank, 2006). This is an indication of the importance of agriculture to economic growth and development across Africa. By contrast, there are others who doubt whether or not agriculture can successfully generate sufficient growth and development in Africa today. This doubt shows the poor performance of agriculture, weak institutions for rural growth and development, and worsening agro-ecological conditions in most of the African countries (Collier, 2002; Ellis, 2005; Maxwell Slater, 2003). The large size of the agricultural sector may be the reason for Africas failure to grow and develop, especially since past experience forecasts a significant decline in the importance of agriculture over time in successfully developing countries (Collier, 2002). For those who argue that agriculture should not be put at the center of African growth and development, although the sectors sufficient growth and development linkages proved very strong during Asias Green Revolution, it may not be so much in Africa because of a more integrated global environment (Hart, 1998). Border prices determine food prices more than domestic supply when imports can enter freely, which reduces the need to invest in domestic agriculture to maintain urban food prices and real wages and hence industrial competitiveness. Under these conditions, it is difficult for agriculture to play important role of economy-wide growth and development as well as facilitating the economic transformation shown by theory or witnessed in the past successes of other developing countries. Agricultures skeptics therefore tend to be more concerned of African industry, emphasizing that mining and manufacturing may bring viable alternative sources of growth and development. Despite contrasting opinions on the relative importance of agriculture in generating overall growth and development, there should presumably be less contention surrounding the role of agriculture in poverty reduction, which is one of the key issues for achieving economic growth and development. This is especially so given the importance of agricultural incomes for Africas poorest populations. However, even among agricultures advocates, there are conflicting views over what should be the focus of an agricultural growth and development strategy for low-income Africa (Dorward, et al., 2004). Some suggest that the best opportunities for African farmers lie in high-value commodities and, given poor domestic demand in Africa, that production should focus on export markets. Small-scale farms are seen as irrelevant due to international competition and the growing difficulties of supply-chains for both domestic and foreign markets (Reardon, Timmer, Barrett, Berdegue`, 2003). It is argued tha t rural dwellers should plan on diversifying incomes away from agriculture (Ashley Maxwell, 2001) and focus on going to urban areas (Ellis Harris, 2004). On the other hand, others argue that rural income diversification has been a reality in Africa for many years (Barrett Reardon, 2000; Reardon et al., 2003) and has yet to achieve significant income growth. Furthermore, income diversification is not a significant positive phenomenon, especially if diversification is due to stagnant agricultural growth and development (Haggblade, Hazell, Reardon, 2002) or if migration is as a result of growth in low-productivity urban activities (Lipton, 2004). The biggest market benefits for majority of African farmers comes from domestic and regional markets for staples/food crops (Diao Hazell, 2004; Rosegrant, Paisner, Meijer, Witcover, 2001). 2.3 Agricultural Production and Economic Growth and Development Provision of sufficient food for the growing population puts agriculture at the center of current growth and development issue in developing countries. This is because the level of population growth in most developing countries is far more than the level of agricultural production and growth. Malthusian theory of population growth is becoming true in these countries; hence, the need to grow and develop agriculture to meet the food requirement of the people is very important. Looking at the Malthusian theory, if food supply fail to meet demand then food prices will rise. This will also have effect on workers wages and subsequently affect industrial profits, investment and overall economic growth and development in the society (Uniamikogbo, 2007). On the supply of raw materials to the industrial sector, agriculture have been seen as the major requirement for industrial growth and development because of the sectors role in providing the necessary raw materials for industries (Child, 2008; Uniamikogbo, 2007 and Abayomi, 2006). As a result of this, the need for increasing agricultural productivity has to be considered. There is the need therefore to put more emphasis on increasing domestic output rather than focusing more on the expansion of export to finance growing food export. This means that, agriculture is the most influential sector in developing countries. It should then make a significant contribution to the overall investment requirements needed by the industrial sector such as lowering the amount of raw materials supplied from abroad by increasing the output produced locally. Agriculture has been the main stay of the Nigerian economy providing employment and source of livelihood for the teeming population. It contributes with over half of the GDP of the Nigerian economy during much of post-independence in the country. Nonetheless, the role it plays in the economic growth and development of the country has gone down over the years due to the overwhelming and dominant role of the crude oil sector in the economy, on which the country extensively depends. With the high food demand in Nigeria, the country has to make use of its abundant natural resources and to take advantage of its current democracy to increase the volume of crop production towards satisfying the food and nutritional requirement of the rapidly growing population and to ensure food security in the country (Enoma, 2010) . Therefore, agriculture can be characterized as the source of national wealth and economic growth and development in Nigeria. Agricultural Development economists have researched significantly on how agriculture can best contribute to overall economic growth and development. Looking at Lewis theory of development, Todaro and Smith (2003) indicated that the underdeveloped economy consists of two sectors, which are the ancient and traditional agricultural sector characterized by zero marginal labor productivity and the modern industrial sector. In his historical approach to the process of economic growth and development, Rostow (1960) distinguishes five stages of economic growth and development, which are: Traditional society; Pre-conditions for takeoff; Take-off; Drive to maturity; and Age of high mass-consumption. According to Rostow, the take-off stage is the most important figure in the life of a society when growth becomes its normal condition. The significance and importance of the traditional society make a decisive breakthrough and a multiple interest gets built into the society structure with agricult ure playing significant role at this stage. From this theory, it is evident that agriculture plays a significant role in the first three stages of economic growth and development (Traditional society, pre-conditions for takeoff and takeoff stages). The agricultural sector greatly influences industrial and economic backbone from which a countrys economic growth and development can take off. Therefore, beyond reasonable doubt, agricultural activities are usually concentrated and more practiced in the less-developed countries where there is an urgent need for rural transformation, redistribution, poverty alleviation and socio-economic growth and development (Stewart, 2000). Indeed, agriculture has a significant role in an economy, without it a country will surely depend on importation from other countries to feed its population. The essential contribution of agriculture to economic growth and development has been an on-going subject of debate among development economist, several theorist argue that growth of the whole economy relies on the development of agricultural sector (Schuttz, 1964, Gollin, Parente and Rogerson 2002). The growth and development of the agricultural sector could result to national output increase through its effect on rural incomes and provision of resources for transformation into an industrialized economy (Eicher and Staatz, 1984; Dowrick and Gemmmell, 1991; Datt and Ravallion, 1998; Thirtle, Lin and Piesse 2003). Johnston and Mellor (1961) reported that agriculture improves and contributes to overall economic growth and development through various inter-sectoral linkages. Which include, provision of surplus labor to the industri al sector; supply of food for domestic consumption; creation of market for industrial output; provision of domestic savings and industrial investment and generation of foreign exchange from agriculture export earnings to finance import of intermediate and capital goods respectively. However, In addition to the above-mentioned direct market-based linkages, Timmer (1995) found out that agriculture indirectly contributes to economic growth and development through its caloric nutrient intake provision to the poor, food availability; stable food prices and poverty reduction. Going by all the debated arguments, it is clear that agricultural growth and development has played a historically important role in the process of economic growth and development. However, acts from developed countries as well as developing countries indicate that agricultural sector has been the engine that contributes to the overall growth and development of a countrys economy. Agriculture therefore plays an important role in achieving economic growth and development. 2.4 Commitments of Governments to the Agricultural Se

Case Study of Nuclear Disaster | Fukushima Nuclear Power Plant

Case Study of Nuclear Disaster | Fukushima Nuclear Power Plant 1. Abstract This assignment purpose is to do analysis case studies and the Fukushima nuclear disaster. The purpose of this work is for students to use the appropriate method to verify each problem. To study a range of industries (EAT221), there are several levels of courses. In order to complete this news report, the instructor provides the learning needs of students. It also describes how to improve the Tokyo electric power company management of nuclear power plants, manufacturing and safety. Students study was to create recommendations on the basis of this report the nuclear disaster. This case study is one way to measure the impact or accidents related to the theme of the students in the classroom effectively. In addition, we recommend that the case study, students will analyze the problem in an appropriate way. Introduction Fukushima Nuclear Power Plant also known as Fukushima Dai-ichi is located on a 3.5-square-kilometre (860-acre) between the towns of Futaba and Okuma of Fukushima Prefecture, Japan. The plant consists of six boiling water reactors (BWR). These light water reactors drove electrical generators with a combined power of 4.7 GW, making Fukushima Daiichi one of the 15 largest nuclear power stations in the world. First nuclear power plant was designed, built, and was run in conjunction with General Electric, Boise, and Tokyo Electric Power Company (TEPCO). March 11, 2011, the 9.0 earthquake and followed by a not expected tsunami to hit at the power plant factory in Japan cause a major damage to the plant. It trigger the evacuation zone of 30 km around the plant which would lead to nuclear radiation leak. The earthquake and tsunami has disabled the cooling system of the nuclear reactor. As of April 2012, Units 1-4 are no longer in operation. In Unit 1 to shut down on April 20, unit 2-4, closed on April 19, 2012 while was the last of these four units. It was the most powerful disaster that have been hit the country so far. It has resulted in a massive tsunami that destroyed many towns and villages, nearly have led to 20 000 people death. 3. Man-Made Disaster From the natural disaster, 9.0 earthquake followed by a tsunami it was truly unfortunately become a man-made disaster when the nuclear reactor melt-function cause many death in the country. The power plant shouldnt have shut down automatically when the earthquake happen because when the plant was build it already have been consider to avoid this accident happen when the natural disaster happen. Japanese parliamentary panel challenged claims by the plants operator, Tokyo Electric Power (Tepco), that the triple meltdown at the plant in north-east Japan had been caused solely by a 14-metre tsunami on 11 March last year. The panel said the magnitude-9 earthquake that preceded the waves could not be ruled out as a cause of the accident. It accused Tepco and regulators at the nuclear and industrial safety agency of failing to take adequate safety measures, despite evidence that the area was susceptible to powerful earthquakes and tsunamis. Since 2006, the regulators and Tepco were aware of the risk that a total outage of electricity at the Fukushima Daiichi plant might occur if a tsunami were to reach the level of the site. But it accused Tepco of ignoring warnings going as far back as 2006 that a tsunami could cause a blackout at the plant. (Acton J.M. Hibbs M, March 2012) It is unknown how TEPCO plans to use broken and damaged reactors but they risk damaging the worlds environment to save money and in their greed and stupidity- they could blow us all up. the dangers of nuclear power -it is not cheap and it is highly dangerous especially when you do not study geography very well. The fact that these nuclear plants were wrongly built on a fault line makes it further a danger to the world and not only Japan. In February 2011, Japans regulatory approval to extend the 10 years of continuous operation of the reactor. It is in the northeast in 2011 a major earthquake and tsunami damage. TEPCO bears critical responsibilities to society as a nuclear operator primarily responsible for nuclear power plant safety. Nevertheless, TEPCO was not sufficiently prepared for such an accident, that natural disasters including tsunami may lead to large-scale core damage. Furthermore, TEPCO had not taken adequate preparedness for tsunami risks beyond design basis at the Fukushima Dai-ichi NPS. Industrial process and operation of the Fukushima nuclear plant. The reactors for Units 1, 2, and 6 were supplied by General Electric, those for Units 3 and 5 byToshiba, and Unit 4 by Hitachi. All six reactors were designed by General Electric. Architectural design for General Electrics units was done by Ebasco. All construction was done by Kajima. Since September 2010, Unit 3 has been fueled by a small fraction (6%) of plutonium containing mixed-oxide (MOX) fuel, rather than the low enriched uranium (LEU) used in the other reactors. Units 1-5 were built with Mark type (light bulb torus) containment structures. 460 MW boiling water reactors was constructed in July 1967 name Unit 1(BWR-3). Electric start commercial production on March 26, 1971, it originally had been scheduled to shut down in early 2011. Unit 1 is designed for peak acceleration of 0.18 g (1.74 m/s2) and based on the 1952 Kern County earthquake response spectra of ground motion for 0.498 g Unit 6 Unit design basis, but rated at 0.45 g(4.41 m / S2) and 0.46 g (4.48 m/s2). In 1978, the Miyagi Prefecture earthquake ground acceleration of 0.125 g (1.22 m/s2) for 30 seconds, check each unit, but found no damage to the key part of the reactor. The design basis tsunami is 5.7 m. An important part of the reactors emergency diesel generators and DC batteries, helps to keep the reactor cool in case of power failure, located in the basement of the reactor turbine room. Plan designated by the General Electric Company generators and batteries placed in the position of the reactor design, but the concern of the construction work of the mid-level engineers factory, which makes backup power systems vulnerable to flooding. Tokyo Electric Power Company elected to strictly follow the design of the General Electric Company, the construct ion of the reactors. How nuclear power station produce electricity? Basically, all power stations use the same method to produce electricity. A turbine rotation is the main as generating electricity. The generator is attached to the shaft of the turbine and turbine turns, electricity will produced in by generator. Electricity is transmitted via a transmission line to the station power distribution agency. In a hydroelectric power plant, the turbine is turned by running water. In thermal power plants, steam is produced by heating the water with the coal and oil burning furnace. In the nuclear power plant, steam is generated by the heat with fission process. Cross-section sketch of a typical BWR Mark I containment, as used in Units 1 to 5. The reactor core (1) consists of fuel rods and moderator rods (39) which are moved in and out by the device (31). Around the pressure vessel (8), there is an outer containment (19) which is closed by a concrete plug (2). When fuel rods are moved in or out, the crane (26) will move this plug to the pool for facilities (3). Steam from the dry well (11) can move to the wet well (24) through jet nozzles (14) to condense there (18). In the spent fuel pool (5), the used fuel rods (27) are stored. How to control the nuclear power plant to generate electricity? Control the operation of the nuclear plant involves two things. Namely the power control generation to maintain the secure and stable level, secondly is to shutdown of the reactor very quickly if needed. In MAPS, the power is kept constant by the use of so-called adjusters. These are stainless steel rods. When these rods are introduced into the reactor vessel, the chain reaction and slows down the production of heat is reduced. If the control rods are slightly pulled out of the reactor vessel, and the chain reaction is the power level increases. When the shutdown is completely, the heavy water is discharged from the reactor vessel in a fraction of a second. In the absence of heavy water in the box, the chain reaction ceasestotally. What are the fuel requirements for a nuclear power station? Compared to the burning of coal, the fission process is far more efficient. One gram of fissionable uranium can produce a million times more heat than one gram of coal. At MAPS which produces 400 MW of electricity, only 20 kg of uranium fuel is required per day, i.e. about one truck load of fuel per month from Hyderabad where the fuel is produced. In comparison, a coal burning thermal power station of the same capacity would require about 2000 tonnes of coal daily, i.e. 2-3 train loads of coal to be transported everyday from the coal mines of Singareni over 1000km away. Also the coal has to be continuously fed to the furnace at the rate of 4 tonnes each minute. At MAPS, fresh fuel is charged into the reactor about once daily. 5. Impact of the Fukushima Nuclear Disaster Society The emotional trauma of the devastating events in Japan is overwhelming. Radioactivity has been detected in nearly every state, whether it be in the air, rain water, food or in milk. The fear that arises from hearing about radioactivity being found nearby can cause increased stress and, sometimes, an overwhelming sense of loss of control. As for foods that may be imported from Japan, there are three safety nets in place so you can feel safe eating what you buy at the grocery store. The first safety net is the ban on importing food from within Japans evacuation zone (within about 20 kilometers of the nuclear reactors), the second safety net is Japans monitoring of other foods prior to leaving Japan, and the third safety net is the United States Department of Agriculture, which monitors and inspects our imported food. Ecology A rabbit born after the nuclear explosion was born with no ears and sending fear throughout the world of the mutations and deformities to come. The world has been exposed to very high amounts from five nuclear reactors in Sendai off of Japans east coast, and still to this day they are contaminating all of Japans farms, cities and lands with radioactive material-very dangerous and toxic to humans and animals. http://www.politicolnews.com/japan-nuclear-rabbit-born-with-no-ears/ Health According to a study by Stanford University in June 2012, 130 people died from (bound for estimator in the year is 1100 upper and 15 lower) cancer, and 180 radiation emission limit cancer cases (24 radiation exposure to the workers in the factory in. Japan, can lead to the death of up to 2-12 was predicted mainly there is a lower limit 1800) is a possibility. The emission radiation was an order of magnitude lower than that released from Chernobyl, about 80% of the radioactivity from Fukushima has been deposited on the Pacific Ocean. Precautions taken by the Japanese government may have to reduce the health effects of radiation emitting substantially. Radiation causes such as non-mandatory evacuation of about 600 people to death to be caused by such further has been reported. Evacuation procedures after the accident, may have reduced deaths from radiation by example 3-245 potentially, the best estimate is 28, the projected upper limit of the life that was saved from the shelter even i tself evacuation already is lower than the number of deaths caused by. Radiation exposure may cause 1,300 deaths worldwide and 2,500 cases of cancer in Japan. However, there is a bigger issue. The radiation emitted at Fukushima trigger transplant 16,000 people, which, according to the study, also caused mental illness and psychological impact on these people. Stress, fatigue and even being around other sick people are the main contributors to the mental health of many individuals during the evacuation. The study also identifies how these children are more susceptible to radiation because their cells are dividing more rapidly and radiation-damaged RNA may be brought in the younger generation of cells. In addition, DNA damage is also common among people with prolonged exposure to radiation through land, air and food. Actions taken by Tokyo Electric Power Company (TEPCO) The roadmap shows the three phases leading up to the end of the decommissioning. Phase 1: In 2 years, begin the process of fuel removal from the spent fuel pools Phase 2: In 10 years, begin removing fuel debris (solidified fuels and claddings that had melted). Phase 3: In 30-40 years, complete fuel debris removal and the processing and disposal of radioactive waste. http://www.tepco.co.jp/en/nu/fukushima-np/review/review3_1-e.html Improvement TEPCO have to reconsider including the condition of design flaws and the safety systems/measure after the Fukushima nuclear accident analysis and mitigation. TEPCO have to increase the knowledge management, safety culture, and regulatory oversight and the enforcement. Operator/technical people must know technical measurements in operating NPPs based on stress test results and Passive safety systems for nuclear power plant safety enhancement Study the advanced nuclear power plant with the existing design / passive security capabilities to prevent accidents Chernobyl / Fukushima-type Nuclear accident modeling and simulation and prevention action for disaster. Conclusion

Business Ethics :: essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  In Donaldson’s Values in Tension: Ethics Away From Home, he describes a policy that was standard at home, but unsuccessful elsewhere. In one example, the manager of a U.S. company in China caught one of the employees stealing. By following the company’s practice and turning the employee over to the authorities, which was the right thing to do according to our values. The employee was executed because he was judged based on China’s political, legal, and ethical codes, while to us (Americans) the punishment did not fit the crime.   Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  While many cultures believe in some variation of â€Å"The Golden Rule†, there really is no detailed international standard of business conduct. U.S. firms should, at the very least establish company policies that take into consideration the principles of different cultures.   Ã‚  Ã‚  Ã‚  Ã‚  There is clearly a balancing act to develop policies that define the ethics of the corporation, while understanding that codes of conduct vary greatly around the world. Firms like Levi Strauss and Motorola, not only define their policies, they understand that their managers must be able to adapt to a great deal of moral uncertainty in international assignments. Many business practices are neither black nor white but exist in a gray zone, a moral free space through which businesses and their managers must find away to deal with. Levi Strauss and Motorola seemed to have helped managers by treating company values as absolute and insisting that their suppliers and customers do the same. How this was addressed by these companies, was the development of detailed codes of conduct that provides clear direction on ethical behavior, but leaves room for managers of these companies to use moral imagination that allows them to resolve ethical problems appropriately.   Ã‚  Ã‚  Ã‚  Ã‚  Donaldson argues that companies must be guided by three principles in the shaping of ethical behavior: respect for core human value, respect for local traditions, and the belief that context matters when deciding what is right and wrong. These principles help in establishing a moral guide for business practice.   Ã‚  Ã‚  Ã‚  Ã‚  James Rachel’s The Challenge of Cultural Relativism, argues that different cultures have different moral codes. He is obviously taking the opposite approach to Donaldson’s absolute approach, that of a relativist approach. The relativist concludes that there is no objective â€Å"truth† in morality, therefore right and wrong are merely matters of opinion that can vary from culture to culture. The problem with this argument is that the stated con- clusion does not necessarily need to be the case if the premise is given.