Economic Development Land Tenure Systems

  Land tenure can be defined as the traditional or legal rights which individuals and groups have to land and the behavior characteristics which directly result from these rights. The above definition denotes social relationships manifested in the property rights which individuals and groups have to the land. Land tenure is a crucial factor in the operation of rural land markets, influencing the pace and direction of agricultural development. Since land tenure systems govern access to the means of production in agriculture, they have also been an intensely political subject in rural societies.The first indication of tenure considerations is found among certain preliterate or primitive societies. Among these groups the appropriation of land has not assumed importance in and of itself and the land is viewed as free in total. But in some societies which have progressed no further than a hunting and fishing economy, exclusive claims sometimes are made on certain parcels of land.Since c olonial times, the dominant belief has been that individual tenure is more progressive, modern, efficient, and better for economic growth than indigenous communal tenure. The arguments in favor of labeling claimed that customary tenure is insecure for the small farmer and provides no incentive for land improvements, that it prevents land from being used as collateral for credit and that it prevents the transfer of land from inefficient users to efficient ones. They expected that indigenous customary tenure would wither, but it has proved surprisingly resilient and adaptable, and has coexisted with modern tenure. The most effective form of policy intervention would be governmental guidance, so that customary tenure systems evolve and operate more effectively.Some studies argue that tenure insecurity is correlated negatively with the quality of resource management. Over usage and degradation of natural resources, such as deforestation and soil erosion, are often characterized because of incomplete, inconsistent property rights, as the costs are borne by society as a whole, whereas benefits accrue to individuals. The relationship between customary tenure and land degradation indicates that customary tenure is partly responsible for land degradation. However the behavior that leads to land degradation by smallholder farmers under customary tenure cannot be linked to their lack of tenure security under customary tenure. Rather it is linked to other reasons such as lack of knowledge of conservation practices, use of traditional agricultural production practices that are not sustainable, and lack of inputs such as labor. In this regard, small farmers need extension methods that focus on relevant technologies that promote sustainable agricultural production. (Lynn Smith, 1953)The concept of land reform is itself a controversial and semantically intriguing topic. Its narrowest and traditional meaning confines it to land distribution. A broader view includes in it other related changes in agricultural institutions, such as credit, taxation, rents, cooperatives, etc. It can also be interperated that these reforms are practically synonymous with all agricultural improvement measures — better seeds, price policies, irrigation, research, mechanization, etc.The Land Tenure reforms to be found in any country appear to a great extent to be the function of government. They are closely related to the social and economic well-being of the people. The latter fact sets the stage for the discussion in this chapter. Its concern is the major forms or systems of land tenure and the distinct patterns of social and economic relationships characteristic of each. By way of illustration they point out, among other examples, that individualism and individual initiative are usually more developed in a community of individual farm-owners on small holdings than in a community where one or a few men own all the land and the workers are serfs, laborers, or non-managi ng tenants of one kind or another.The extent to which the ownership and control of the land is concentrated in a few hands or widely distributed among those who live from farming is probably the most important single determinant of the welfare of the people on the land. Throughout the world wherever there is a widespread distribution of land ownership and control.The implication of intense pressure of farm population on agricultural land inevitably results in a farm-tenure situation that is unsatisfactory from the point of view of working farm people. This is so because pressure of population on land drives down the marginal productivity of labor and the real return to labor as a factor of production. If farm land-tenure reforms are not accompanied by policies to reduce excessive pressure of farm population on agricultural land, such reforms are likely to be of little or no avail. Fortunately, the two recent programs to assist depressed rural areas to some degree reflect an awarenes s of this principle.The term that is basic to land tenure theory and which helps to explain the usefulness of the interdisciplinary approach is distribution. According to economic theory, laying aside all qualifying statements for the sake of simplicity, the impersonal market distributes economic rewards according to merit. However, is too narrow a concept to explain fully the distribution principle even in a † free † market. (Alvin L. Bertrand, Floyd L. Corty 1962)The reform or liberal position on the land question thus far had been to make the public-land system function in a democratic way by assuring the small man the right to acquire a piece of the national domain. Limitations were put in the Preemption, the Graduation, the Homestead Acts and their variations to make certain that only the small man could take advantage of them until the issue of the patent, but beyond that they had no effect. All such measures were therefore used by large interests acting through fa ke buyers to acquire lands they could not legally acquire otherwise.Timber land in Wisconsin, Minnesota, California, and Washington, grazing lands in Colorado, Wyoming, Arizona, and Idaho, wheat lands in Kansas, Nebraska, North and South Dakota passed into the hands of great lumber companies, cattle companies, and bonanza farm groups under laws that were designed to prevent large-scale accumulation. The unwillingness of Congress to experiment with restrictions on alienation made inevitable the concentration of ownership which grieved western agrarians. (Alvin L. Bertrand, Floyd L. Corty, 1962)Evans, Greeley, George, and other radicals had failed to carry the mass of land reformers with them on the question of alienability. Americans found it easy to be radical or to favor reform when to do so did not impose any self limitation, but few were attracted to any idea that might restrict their right to accumulate property or to sell and gain the unearned increment.The reforms which were b eing adopted at this late time were both ineffective and to some extent unwise. Since the desirable size for land-use units was increasing as population moved into the arid and semi-arid regions, the 320 acre limitation on the amount of government land persons could acquire compelled either evasion and abuse of the laws to acquire adequately sized units or the establishment of small grain farms in areas unsuited to cultivation. This pattern of evasion and abuse of the land laws and the establishment of small grain farms in areas better planned by nature for grazing carried well into the twentieth century. Not until 1934 were comprehensive and far-reaching reforms initiated to produce a desirable and constructive plan of land use.The preponderant, almost the universal view of Americans until near the end of the nineteenth century was that the government should get out of the land business as rapidly as possible by selling or giving to settlers, donating for worthy purposes and ceding the lands to the states which should in turn pass them swiftly into private hands. No matter how badly owners abused their holdings through reckless cultivation, destructive and wasteful cutting of the timber, prodigal and careless mining for coal and drilling for oil, few questioned their right to subject their property to any form of use or abuse.An extensive part of the fertile coastal plain and piedmont of the South and of the hill-farming area of the northeast could be cultivated in such a way as to reduce the land to barren, gullied, and eroded tracts no longer able to produce crops, to support families, and to carry their share of community costs, but few denied the right of the owners to do as they wished with their property or, more fundamentally, questioned the system of land distribution that seemed to invite such practices.The shore line of the Atlantic, of bays and inlets, of inland lakes all near congested urban areas could be monopolized by a wealthy few, and still t here were few complaints. Rich landlords, speculators, and corporations could buy unlimited amounts of land from the United States, or purchase from other owners who had acquired tracts from the state or federal government and keep their holdings from development for years, thereby blighting whole areas, delaying the introduction of schools and roads and doing immeasurable harm to neighboring residents.ReferencesAlvin L. Bertrand, Floyd L. Corty (1962) Rural Land Tenure in the United States: A Socio-Economic Approach to Problems, Programs, and Trends. Southwest Land Tenure Research Committee   Louisiana State University Press. Place of Publication: Baton RougeAlvin L. Bertrand, † The Social System as a Conceptual and Analytical Device in the Study ofLand Tenure,† Land Tenure Workshop Report, Chap. VII.Lynn Smith, The Sociology of Rural Life (3d ed.; New York: Harper & Bros., 1953), 274.Rawls John ( 1971) The Theory of Justice. Belknap Press.Rawls J (2001) Justice as Fa irness: A Restatement. Cambridge: Harvard University Press.Roth Michael 2002) Integrating Land Issues and Land Policy with Poverty Reduction andRoland R. Renne, Land Economics ( New York: Harper & Bros., 1947), 429.William H. Nicholls, † Southern Traditions and Regional Economic Progress,† SouthernEconomic Journal, Vol. 26 ( January, 1960), 187-98; id., Southern Traditions and Regional Economic Progress ( Chapel Hill, N. C.: University of North Carolina Press, 1960).

African American Characteristics Paper Essay

African American culture in the United States refers to the cultural contributions of Americans of African descent to the culture of the United States, either as part of or distinct from American culture. The distinct identity of African American culture is rooted in the historical experience of the African American people. The culture is both distinct and enormously influential to American culture as a whole. African-American culture is rooted in Africa. It is a blend of chiefly sub-Saharan African and Sahelean cultures. Although slavery greatly restricted the ability of Americans of African descent to practice their cultural traditions, many practices, values, and beliefs survived and over time have modified or blended with European American culture. There are some facets of African American culture that were accentuated by the slavery period. The result is a unique and dynamic culture that has had and continues to have a profound impact on mainstream American culture, as well as the culture of the broader world† (Rydell, 2010). Learning Team B has chosen African Americans as the culturally diverse group we will focus on. The subjects in this paper will be African American history, family characteristics, parenting practices, language, and religion. Also, the primary characteristics of African Americans and how those characteristics impact their experience as a subculture in American Society will be a topic. The last topic will be the implications of the characteristics for psychological theories and practices. History African Americans are the descendants of Africans brought to America during the slavery era. Many were owned as property and forced to work as day laborers in the fields or as servants in their owner’s homes. Others were allowed to work off their debts by being bough and sold on â€Å"the block†. An article titled â€Å"The Slave Auction of 1859 gives a brief account of what it was to be sold on â€Å"the block†: â€Å"The buyers, who were present to the number of about two hundred, clustered around the platform; while the Negroes, who were not likely to be immediately wanted, gathered into sad groups in the background to watch the progress of the selling in which they were so sorrowfully interested. The wind howled outside, and through the open side of the building the driving rain came pouring in; the bar down stairs ceased for a short time its brisk trade; the buyers lit fresh cigars, got ready their catalogues and pencils, and the first lot of human chattels are led upon the stand, not by a white man, but by a sleek mulatto, himself a slave, and who seems to regard the selling of his brethren, in which he so glibly assists, as a capital joke. It had been announced that the Negroes would be sold in â€Å"families,† that is to say; a man would not be parted from his wife, or a mother from a very young child. There is perhaps as much policy as humanity in this arrangement, for thereby many aged and unserviceable people are disposed of, who otherwise would not find a ready sale†¦ â€Å"(New York Daily Tribune, 1928). President Abraham Lincoln issued the Emancipation Proclamation on January 1, 1863, as the nation approached its third year of civil war. The proclamation declared â€Å"that all persons held as slaves† within the rebellious states â€Å"are, and henceforward shall be free. † Despite this expansive wording, the Emancipation Proclamation was limited in many ways. It applied only to states that had seceded from the Union, leaving slavery untouched in the loyal border states. It also expressly exempted parts of the Confederacy that had already come under Northern control. Most important, the freedom it promised depended upon Union military victory. History pages often claim President Lincoln as â€Å"The Great Emancipator† which most educated adults come to learn is an over exaggeration. The general consensus is that Lincoln never freed a single slave, and only used the proclamation as a means to get what he wanted from the states. Once freed most African Americans still experienced racial violence and lived in fear for many years. In 1870 the fifteenth amendment was added to the constitution giving blacks the right to vote. Although blacks were free they were still segregated from the white people, made to go to different schools, stores, and even ride at the back of the bus. In 1954 the supreme courts declared segregation in school unconstitutional due to the Brown vs. The Board of Education of Topeka Kansas. The civil right movement was at its peak during 1955-1965. Congress passed the Civil Rights Act of 1964 and the Voting Rights Act of 1965, ensuring basic civil rights for all Americans, regardless of race, after nearly a decade of nonviolent protests and marches, ranging from the 1955-1956 Montgomery bus boycotts to the student-led sit-ins of the 1960s to the huge March on Washington in 1963. In 1968 President Johnson signed the Civil Right act prohibiting discrimination in the sale, rental, and financing of housing. Some of the most famous leader of the civil right movement includes Martin Luther King Jr. , Thurgood Marshall, Rosa Parks and many others. Although civil rights were established many African American still struggled to be treated fairly in America. Affirmative Action was established in 1978 by a ruling of the Supreme Court to ensure that minorities are given an opportunity that they may have missed because of their race. In 2008 Barack Obama was the first African American to be nominated for a major party nominee for president. He was elected the 44th President of the United States on November 4, 2008, and sworn in on January 20, 2009. Family and Parenting Characteristics As with most cultures, African Americans place a high value on their families. In the United States African American family’s make-up 12. 9 percent of the population according to the 2003 US Census. The US census also shows that for African Americans over the age of 15 there are 34 percent married, five percent separated, eleven percent divorced, seven percent widowed, and 43 percent were never married. According to the First Things First website, â€Å"African Americans are the most un-partnered group in America† (Medium, 2011, para. 4). One major goal of African American families is communalism, which is very important for effective functioning (Hall, 2010). Hall (2010) describes African American families as having three family types. The first type is the cohesive-authoritative that is explained to be a family with high cohesion along with being supportive, nurturing, and involved with their children (Hall, 2010). The second type of family is the conflictive-authoritarian that is defined as families with conflict and the parents are controlling, critical, and express unhappiness with children (Hall, 2010). The last type of family Hall (2010) explains is the defensive- neglectful, that did not like other racial groups and also did not teach their children to be proud of being an African American. One significant trend that has been determined about the African American family structure is that the more interconnected the family is, the lower the rate of depression in African Americans (Hall, 2010). Based on these findings, a program called Strong African American Families has been created in order to strengthen the relationships between parents and children. According to Hall (2010), â€Å"The Strong African American Families program also has been found to reduce preadolescent risky sexual behaviors, preadolescent alcohol use, and parental depression among African American families† (p.95). This kind of program has been very effective in keeping families cohesive and helping to improve the goal of communalism. Language â€Å"Generations of hardships imposed on the African American community created distinctive language patterns. Slave owners often intentionally mixed people who spoke different African languages to discourage communication in any language other than English. This, combined with prohibitions against education, led to the development of pidginsimplified mixtures of two or more languages that speakers of different languages can use to communicate. Examples of pidgins that became fully developed languages include Creole, common to Louisiana, and Gullah, common to the Sea Islandsoff the coast of South Carolina and Georgia† (Rydell, 2010). It is sad to think that slave owners intentionally put Africans with people who did not speak their language to discourage communication, but is have been researched and proven to be true. Slavery is not the only element to African American culture, and it often seems that when discussing African American culture slavery is the main topic. However, when discussing language the centuries of slavery that they endured have everything to do with the evolution of African-American language. Now that we have covered the origin of African American language we can discuss the American perspective of where modern day African American language stands, and how this effects the culture. â€Å"African American Vernacular English (AAVE)—also called African American English; less precisely Black English, Black Vernacular, Black English Vernacular (BEV), or Black Vernacular English (BVE)—is an African Americanvariety(dialect, ethnolect and sociolect) of American English. Non-linguists sometimes call it Ebonics(a term that also has other meanings or strong connotations) or jive or jive-talk. Its pronunciation is, in some respects, common to Southern American English, which is spoken by many African Americans and many non-African Americans in the United States. There is little regional variation among speakers of AAVE. Several creolists, including William Stewart, John Dillard, and John Rickford, argue that AAVE shares so many characteristics with Creole dialects spoken by black people in much of the world that AAVE itself is a Creole dialect; while others maintain that there are no significant parallels. As with all linguistic forms, its usage is influenced by age, status, topic and setting. There are many literary uses of this variety of English, particularly in African-American literature† (Rydell, 2010). Of course this information does not imply that all African Americans speak a version of AAVE, only that it is very common and prevalent throughout the modern day African American culture. Religion In the African American community religion plays an extremely significant role. â€Å"The story of African-American religion is a tale of variety and creative fusion. Enslaved Africans transported to the New World beginning in the fifteenth century brought with them a wide range of local religious beliefs and practices. This diversity reflected the many cultures and linguistic groups from which they had come. The majority came from the West Coast of Africa, but even within this area religious traditions varied greatly. Islam had also exerted a powerful presence in Africa for several centuries before the start of the slave trade: an estimated twenty percent of enslaved people were practicing Muslims, and some retained elements of their practices and beliefs well into the nineteenth century. Preserving African religions in North America proved to be very difficult. The harsh circumstances under which most slaves lived—high death rates, the separation of families and tribal groups, and the concerted effort of white owners to eradicate â€Å"heathen† (or non-Christian) customs—rendered the preservation of religious traditions difficult and often unsuccessful. Isolated songs, rhythms, movements, and beliefs in the curative powers of roots and the efficacy of a world of spirits and ancestors did survive well into the nineteenth century. Historically during their most difficult times the African American relied on their religious beliefs to endure. During the civil rights movement black churches were often the target of racial violence because that was a place that African Americans spent most of their time. This was a place where they often held meetings to discuss their civil rights efforts. African Americans practice a number of religions, but Protestant Christianity is by far the most prevalent. Some African and African American also follow the Muslim and Judaism. According to Fife, Kilgour, Canter and Adegoke (2010), â€Å"African spiritual traditions have historically held a central place in African American communalism (Mbiti, 1990) and were vital to survival during the time of slavery. In African and African American culture the concept of spirituality is inseparable from all other aspects of human experience. The spiritual and the physical are indistinguishable (Mbiti, 1990). A deep connection exists between humans, God, family, and group (Barrett, 1974). Spirituality is not compartmentalized into systematized beliefs and practices but woven into everyday experience (Boyd Franklin, 1989). The Black church is the primary means through which many African Americans express their religious and spiritual beliefs and values (Richardson & June, 1997). This institution is a central force in African American childhood and adolescent identity and helps to shape ideas about what comprises community. † Many African American children have christen ceremonies for they can even walk or talk. African American families generally spend a substantial amount of time within their places of worship. Conclusion For review, the big questions the above research addressed were: †¢What are the primary cultural characteristics of this selected group? †¢How do the characteristics of this group impact its experience as a subculture in American society? †¢How might the cultural aspects of this group be applied to traditional psychological theory? †¢What are the implications of these characteristics for psychological theory and practice? We have found that the primary cultural characteristics of the African America culture are their history of slavery in America, distinct family and parenting practices, slavery based evolution of their language, and their dedicated religious beliefs. The characteristics of this group impact its experience as a subculture in American society by enticing others in to the culture and sparking curiosity around the world. African Americans make up a small percentage of the minority in America. However African American culture dominates the world of music, fashion, and professional sports. The cultural aspects of the African American group can be applied to traditional psychological theory when considering family dynamics, cultural perspectives, and how these aspects influence mental health. The implications of these characteristics for psychological theory and practice would focus on how the African American history of slavery in America influences their world view, how family and parenting practices mold their ideals of what a family should be, how religion influences their beliefs and actions, and how language distinguishes them from others and what psychological impact this has on them as a whole. For many years African-American culture developed separately from mainstream American culture, both because of slavery and the persistence of racial discrimination in America, as well as African-American slave descendants’ desire to create and maintain their own traditions. Today, African-American culture has become a significant part of American culture and yet, at the same time, remains a distinct cultural body. References Fife, J. , McCreary, M. , Kilgour, J. , Canter, D. , & Adegoke, A. (2010). Self Identification Among African American and Caucasian College Students. College Student Journal, 44(4), 994. Retrieved from EBSCOhost. Hall, G. C. N. (2010). Multicultural psychology (2nd ed. ). Upper Saddle River, NJ: Pearson/Prentice Hall. Medium. (2011). First Things First. Retrieved from http://firstthings. org/page/research/african-american-family-facts New York Daily Tribune, March 9, 1859 reprinted in Hart, Albert B. , American History Told by Contemporaries v. 4 (1928). Retrieved from http://eyewitnesstohistory. com Rydell, R. J. , Hamilton, D. L. , & Devos, T. (2010). NOW THEY ARE AMERICAN, NOW THEY ARE NOT: VALENCE AS A DETERMINANT OF THE INCLUSION OF AFRICAN AMERICANS IN THE AMERICAN IDENTITY. Social Cognition, 28(2), 161-179. Retrieved from EBSCOhost.

The Secret of Ella and Micha Chapter 21

Micha The hospital lights are bright and the air is a little cold, but Ella's warm hand in mine is comforting. The doctor doped me up with a sedative to ease the pain and then I lay down on the bed, waiting for them to come clean the fragments of the branch out of my wound. I was scared shitless when I crashed into that tree, worried I was going to die and leave Ella behind with no one. But now, I'm feeling pretty good. Ethan peers over me and scrunches his nose at the wound. â€Å"It's gnarly looking.† I shove him out of the way and pull Ella down beside me. â€Å"Hey there, pretty girl, come sit with me.† She giggles, then glances at someone and laughs harder. â€Å"I think you might be better off trying to shut your eyes,† she tells me. I shake my head from side to side. â€Å"No way, all I want to do is stare at you all day.† She snorts a laugh and then smoothes my hair back from my head. â€Å"Quit talking, before you say something embarrassing.† I search my brain, not finding anything embarrassing stashed away inside. â€Å"I'll be fine.† I reach over with my good hand and find her leg. Grabbing hold of it, I pull her over toward me so she falls onto the bed. â€Å"Micha,† she says, her green eyes so wide I can see my reflection in them. â€Å"There are people everywhere.† I glance from left to right, not seeing anything but blurry shapes. â€Å"I think we're good.† I move into kiss her and she gives me a quick peck on the lips, before leaning away. â€Å"How about you rest your head in my lap,† she says. â€Å"And I'll rub your back until you go to sleep.† â€Å"But what if I wake up and you're not here?† I ask, sounding like a little baby, but not giving a shit. She presses her lips together and sighs. â€Å"I'm not going anywhere.† â€Å"You promise?† â€Å"I promise.† She sits up and I rest my head on her lap. She rubs her fingers up my back and through my hair. I hold onto her as I drift into unconsciousness. Ella Micha is lying on my bed without a shirt on, fiddling with the bandage covering the hole where the branch stabbed into him. The doctors couldn't stitch it up because it was too wide of an injury, so he has to keep it covered and is not allowed to take showers, something he had jokingly griped about at the hospital as he winked at me. It's been a few days since the accident and the Chevelle is parked out in his garage in ruins. When I saw it in the light, I practically passed out because it doesn't look like an accident anyone would walk away from; the driver's door is caved in and the front fender fell completely off. â€Å"This is going to leave an awesome battle scar.† He pushes the bandages back down over the wound. â€Å"I'm glad you think so.† I read the email that showed up in my inbox the day after the accident. Turns out, I got the internship at the museum and now I have no idea what to do. I want to do it – it's a great opportunity, but I also don't want to leave him. â€Å"What are you reading?† he asks, sliding his legs off the bed, starting to get to his feet. â€Å"Nothing. I was just looking through my emails.† I shut the computer screen off, climb onto the bed with him, and lean back against the headboard, stretching my legs out. He points at the drawing of the broken mirror on my wall. â€Å"I like that one. Especially the guitar part.† It turned out to be my best piece, full of memories, and a future I wasn't able to see until I finally let go. A freedom given to me by Micha because he refused to let me go. â€Å"Me too,† I agree. â€Å"I think I'll probably turn it in as one of my art projects one day.† â€Å"It's got a lot of meaning in it,† he comments. I smile and slide down, putting my head next to his. â€Å"I know.† He rolls to his side carefully, so he doesn't hurt his shoulder and we're lying face to face. â€Å"Where's your head, Ella May? Ever since the accident, you've been really quiet.† I'm so close to him I can see the dark specks of blue in his aqua eyes. I've been quiet because that night made me realize something important. For a split second, I thought I'd lost him and it opened up my heart and freed what I'd buried deep inside me that night on the bridge. I look into his eyes, no longer afraid of what's in them, but afraid I'll lose what they carry. â€Å"I just don't ever want to lose you.† His eyebrows dip together as he props up onto his elbow. â€Å"Is that what it's been about? The accident? Because I'm fine.† He points to the bandages. â€Å"It's just a tiny scrape.† â€Å"I know you're okay,† I say, sounding choked. â€Å"But for a second I didn't think you were.† â€Å"Hey.† He cups my cheek and kisses me tenderly. â€Å"I'm okay. You're okay. Everything's okay.† I take a deep breath and let it out before I can suck it back in. â€Å"Micha, I love you.†

International Financial Management Assignment Example | Topics and Well Written Essays - 2500 words - 1

International Financial Management - Assignment Example Fluctuation of the exchange rates between the different currencies the firm transacts through has the potential of exposing the firm to financial losses. The major exposure risk the firm is likely to experience is the transaction risk that distorts the cash flows realized. This is due to the recent behavior of the US dollar against major international currencies. The US dollar has of recent been depreciating against Euro and pound currency. Thus, the cost of the purchases the firm makes using dollar has the potential of increasing when it is converted to Euros or pounds in determining the profit earned. Consequently, it is critical for the firm to undertake measures to manage the exchange rate risks to mitigate probable financial losses in future. Managing the exchange risk facing a firm engaged in cross-border trade requires the management to determine the exposure risks been faced, hedging strategies capable of mitigating the risk and the existing instruments that can be used to cushion the exchange risks. This is done by adopting hedging strategies that help in reducing or eliminating currency risks. A number of hedging options are available in managing the exposure risks the firm faces under it cross-border trade. One of the hedging methods that can be used in managing the exchange risk facing the firm is forward contract. Forward contract allows a firm to exchange foreign currencies at an agreed exchange rate in future (Levi, 2009). Consequently, SN can undertake a forward contract that will guarantee the exchange rate that will be used in exchanging the foreign currencies in future date. The pre-fixed exchange rate that will be used in converting the foreign or domestic currency will counter the exchange rate fluctuation since the firm will be shielded by the agreement from such exposure. This arrangement will allow the firm to convert the Euros or Pounds it is possessing to dollar

The Landscape Masters of the Baroque Essay Example | Topics and Well Written Essays - 2000 words

The Landscape Masters of the Baroque - Essay Example For the most part, French baroque art can be considered as an expression of the French Crown’s values, particularly those of King Louis XIV.King Louis built the Versailles palace as a symbol of the Crown’s total authority, of which the design of both the palace and surrounding land was a direct product of a rigid, rational, and disciplined approach meant to show the state and government control of the king. The sculptures, paintings, and architecture that were chosen to decorate this palace were, stylistically, purely classical in nature, conveying the timeless and orderly truths of the policies pursued by King Louis XIV. However, not every artist in France wanted to be employed by the government with majority of them electing to leave the country, contending that this was better than placing their artistic creativity in political service. The two most distinguished artists of this period, Claude Lorrain and Nicolas Poussin, chose to move to Italy, where they got inspir ation from the gentle landscape in Rome.Claude Lorrain elected to paint the lovely countryside in form of poetry, populating the landscapes with ancient monuments and their picturesque ruins, as well as flocks of sheep. Poussin also sought to depict similar features in his landscapes on the countryside in Rome. However, Poussin sought to do more than delight the audience or viewer. Instead, he utilized the classical setting to present human history in dramatic form. On top of delighting his landscapes’ viewers, he also set out to instruct them.

Economy of Saudi Arabia and Canada Research Paper

Economy of Saudi Arabia and Canada - Research Paper Example In this case it is worth noting that these two countries are of the developed world and for that matter are in the first world countries. The various similarities that come into play are going to be focused on. The Saudi Arabian economy is one which is majorly based on its oil production capabilities. In this case it is worth noting that the country produces a significant amount of oil on the global market. For this reason, the revenues that are generated from the oil activities are very influential in the developments that are taking place in the Saudi Arabian economy. The other thing which is worth noting is that the Saudi government is an entity which has significant influence in the happenings of this economy. The revenue which is gotten from petroleum and its associated products accounts for close to 45 per cent of the total budget of the country. On the other hand, close to 40 per cent of the GDP in the country comes from the private sector. It is worth noting that the economy in the country is very encouraging to investments especially from the locals and also foreign investors. This significant developments in the financial well-being of the country has attracted quite a lot of for eign workers in the country. The figure at the moment stands at close to six million foreign workers. These are centered in the oil industries and also the private sector. Initially before the inception of the oil phenomenon, the Saudi economy was largely dependent on nomadic pastoralism. This was until the discovery of oil in the country. After the oil crisis that occurred in the year 1973, the country realized significant growth in its GDP. The GDP per capita in the 1970s went up by close to 2 per cent. As at the year 2009, the World Bank set Saudi Arabia as the strongest economy in Arab world. Saudi Arabia has the second largest oil reserves in the world. The figures that w4ere released by the government put this at close to 260 billion barrels of oil. This

Importance of ERP systems for its success in the business environment Dissertation

Importance of ERP systems for its success in the business environment through solutions - Dissertation Example The constant support and guidance helped in gaining multiple perspectives and understanding over the research topic. The researcher would also like to thank his professors for offering profound insights on the research topic along with helping in forming deeper understanding over the research topic. The researcher feels proud of his University on offering all the possible help and support by allowing access to the library and electronic sources. This helped in exploring the research area in a systematic manner. The help and support of family and friends often act as a support system and the researcher would like to thank his family members for being there and supporting him during the research process. Their constant motivation and guidance helped in being positive and enthusiastic while conducting the research. The researcher feels happy to state the significance of friends in terms of offering critical views and opinions along with helping in thinking differently through logical di scussions. The support and cooperation of friends helped in gaining multiple insights over the research topic along with being critical in assessing personal understanding of the research topic. Overall, the researcher would like to thank everyone who has been a constant support and medium of motivation in the research process. ... The introduction chapter introduces the research topic along with stating the aim, objectives and research questions. The chapter also explains the scope of the research topic along with highlighting its rationale. The literature review helped in investigating the elements of the ERP along with exploring its benefits and risks in the competitive business environment. The literature review also helped in investigating issues and reasons resulting in the success and failure of the ERP systems. In order to explore more, a robust research methodology has been designed using positivism research philosophy and deductive research approach to analyse secondary data and information. The findings and analysis revealed that ERP Systems succeed mainly because of the organisational culture and support, cooperation and acceptance offered by internal stakeholders. The case studies of Dell and Fox Meyer revealed that Dell succeeded in its ERP implementation mainly because of effective and judicious planning while Fox Meyer failed because there was no planning and human resources were not trained or skilled enough to handle the challenges and complexities of ERP systems. Overall, it was concluded that in order to derive benefits from ERP systems, it is important to understand the use and purpose of ERP along with assessing the organisational culture and stakeholders’ acceptance for the ERP Systems. TABLE OF CONTENTS Chapter 1.Introduction 5 1.1introduction 5 1.2 Research Aim 6 1.3 Research Objectives 6 1.4 Research Questions 6 1.5 Research Topic within the Current Academic Literature 7 1.6 Relevance of the Research Topic 9 1.7: Contemporary Nature of the Study 10 1.8 Summary 10 Chapter 2.0 Literature Review 11 2.1 Introduction 11 2.2 Elements and Modules of ERP 11 2.3

Respect and the Attica Correctional Facility Research Paper

Respect and the Attica Correctional Facility - Research Paper Example After three days of negotiating the state police opened fire after tear gas was dropped on the rioting inmates. The death toll came to 29 inmates and 10 hostages which the state tried to claim came from ‘zip guns’ which are homemade guns that inmates sometimes make and that some had their throats cut. In the end, it was proven that all died of real gunshot wounds and that the inmates had not had any zip guns. The state police had killed them all. The corruption in the prison included not only brutal punishments by the guards on the prisoners, but racial discrimination and punishment that was based upon the color of skin a man wore (Danver, 2011). There were many consequences from the actions taken in this riot. After the riots one of the inmates, Frank Smith was made to lie naked on a table with a football balanced on his chest. He was told that should he let the ball fall he would be castrated. The guards also established other tortures including making naked men run a gauntlet of nightsticks or crawl through glass. Frank Smith and others who had been treated with these punishments filed suit against the prison in 1974. He received four million dollars in a civil suit against the facility with 23 other prisoners receiving a settlement of eight million dollars. Although the consequences of the riot caused prison reform to take place, the prison remains a hard line prison with tough restrictions on inmates who are considered to be some of the most dangerous (Danver, 2011). The question is if they are dangerous because of the conditions imposed and the new construction of social living that they are forced to conform under. The Attica Correctional Facility of today is only moderately... The term respect is one that is very important in the construction of social order in the Attica Correctional facility. The facility is known for housing some of the worst criminals in the United States, leaving the structure for abuse open from both inmates and guards where people have largely forgotten about those who enter into those walls. Respect, therefore, is won through violent and physical confrontation. This allows those in the culture within the walls to determine who has status and who will be the weaker section of the population. While male dominated codes and structures are at the core of the hierarchy, there are some unique concepts in a prison that already has a great deal of structure. Male dominance is at the center of this construction of social order and at the core of male dominance is the need for having respect, showing respect, and earning respect. Some prisoners earn respect just to keep them safe while others earn it to gain power among their peers. The one solidarity that is common among all the prisoners is against the guards. From the evidence of the 1971 riot and the restrictions that are enforced on the behavior of men in the prison system that this nuances and subtleties of life in Attica are often built upon the fragile amounts of freedom they are given. Without the development of structures of respect, they would be lost to the oppression that the guards and the system impose.

Mistakes Made in Casey Anthony Trial Investigation and Prosecution Research Paper

Mistakes Made in Casey Anthony Trial Investigation and Prosecution - Research Paper Example The accused was acquitted on July 5th, 2011. The Orlando, Fla., jury held that Casey Anthony was never guilty of killing her daughter culminating in a stunning end to the trials that had significantly fixated the country, thus, raising serious similar questions of forensic expertise and evidence featuring in The Child Cases. The case was weakened by a flawed state’s forensic case hence attracting a lot of questions concerning the strength of the forensic evidence. The Florida prosecutors never proved beyond a reasonable doubt how the two-year-old died. Also, they never proved where the body had been prior to being uncovered in garbage bags in swampy woods adjacent to the Anthony’s family home. Therefore, the case greatly relied on cutting-edge forensic evidence that the defense tagged, ‘junk science’ and too experimental for the Courtroom. Therefore, there was a real danger from the case as scientific precedents turned out scary. Therefore, a greater percentage of the forensic techniques relied on the prosecution team had never been permitted in any trial in the U.S. Indeed, an average juror lacks such an advanced expertise to distinguish between ‘junk science’ and ‘good science’ therefore; the Court expunges then to eliminate dubious evidence. Howeve r, there could have been a mistake made by jurors in this particular elimination of the ‘dubious evidence’ The Court juror never bought the evidence and attempted to validate the functionality of the system. Therefore, the state’s case had a number of hard questions unanswered leaving the juror with a single option to acquit the accused. Charging someone with murder must result from the evidence of how she is killed or why one might have killed someone. Also, it calls for where, when why and how someone was killed or might have been killed. However, the prosecutor relied on junk science that had never answered a single question. Indeed,

Religion Journal Essay Example | Topics and Well Written Essays - 1000 words - 4

Religion Journal - Essay Example Rituals in case of Confucianism varied from being semi religious routines to the way people met and interacted with each other. As per Confucianism, the construction of a moral society depended on the extent to each individual affiliated to and abided by the salient morals. It does come out as being strange that one of the most ancient world religions like Confucianism does remain silent about the notion or concept of a higher power. It is really interesting to note that the crux of Confucian thought does tend to focus on the creation of a social moral order. However, one does wonder as to the moral order that Confucianism talks about does mean subservience to the existent order, or did it allow for original and individualistic thought and action? It is indeed interesting to note that Confucian virtues do aspire for the creation of a society where people respected one another and cared for each other. Does it leave a scope for competitiveness and personal ambition? Taoism did originate in China about two thousand years ago. Taoism does regard Tao to be the quintessential source of and the principle underlying all order in the universe. Taoism is a religion marked by both a profound sense of unity symbolized by Tao as well as the interplay of opposites marked by Yin and Yang. As far as morality is concerned, Taoism does affiliate to a relativistic view in the sense that it does belief that there do not happen to be and sacrosanct moral values, and that the morality imminent in a situation did depend on the circumstances attendant on that situation.

Impact of technology on patient care Research Paper - 1

Impact of technology on patient care - Research Paper Example Also, most cooking can be done in a matter of minutes with microwave technology. Our means of transportation has improved over time; cars now run on solar and even electric energy. Likewise, one could not discount the innovation in mobile technology. Now, people could not only call and receive messages from another person at the same time; but also see the person one is conversing with despite expansive geographical distance. Recently, a CNN report about the improvement in Twitter revealed that individuals chat with followers while viewing real time activities and instantly commenting on the account page. As such, advancement in technology has impacted most aspects of life; not leaving behind the area of health and patient care. Among the most noted technological advancement in this field include the application of the electronic health record, telemedicine, wireless communication, sensors and wearable technology, portal technology, mHealth, as well as other advanced medical tools, d rugs, and equipment (Jayanthi, 2014). As a result, the delivery of patient care has been noted to be more efficient as interventions are tailored to the unique health needs of culturally diverse clientele. In this regard, the current discourse hereby aims to present the impact of technology on patient care. The paper would initially provide a review of previous studies made on the subject; specifically how technology relates to patient care, how technological advancement impacted patient care, as well as the areas of patient care impacted.

Focus on the Learner Essay Example for Free

Focus on the Learner Essay Student Background Veronica is a 31 year old elementary level student. She is originally from Ecuador and is currently residing in Birmingham and has been for the past 3 months. She is University level educated, as a graduate in Dentistry, and a native speaker of Spanish and is also fluent in Italian. Veronica has worked as a dentist in her families practice; she has learned English at a basic level and is able to converse in English at an elementary level. Her motivation for studying English is to increase her level of English language so that she may work as a dentist in England. She has been encouraged by her sister to move to the United Kingdom as the rate of pay in her home country she could not earn enough money. She is very motivated to learn English as she will be able to provide a better life for herself financially and will also be able to better communicate and therefore socialise with her friends from different cultures. Linguistic and Skills: Strengths and Weaknesses 1. Listening It is difficult to grade listening skills without actually setting a listening task. For the purpose of this report I will analyse the understanding of questions set in the interview as well as class observation of the learner. Veronica seems to understand what is said and did not stall in answering the questions. She is able to understand most task set in class with the teacher’s explanation, without requiring further help. However when she doesn’t understand an exercise, she will not respond to the task set and will check with classmates in order to complete the task. 2. Speaking Strengths Veronica is able to present her message in a relatively clear manner. She is a fast speaker, often the case with Spanish native speakers. She uses simple short sentences mainly in the present tense. (Lines 10/14). Weaknesses Veronica has difficulty with pronunciation, often not using stresses. She pronounces the word noisy as nosy as seen in line 13-14. However when I repeated the word in the correct manner, she quickly adopted the correct pronunciation. She uses the past simple to explain future plans as seen in line 20 and line 25.This is a grammar error also noted in her writing and reading task. Veronica uses ‘is’ instead of it ‘it is’ and makes the error of using in instead of at (as seen in line 20) to state future plan of studying at University, she also made the error of putting the before the lexical verb university Grammar Tense Veronica struggles with the future tenses. She uses ‘is’ to explain future plans as seen in line 20. Vocabulary Veronica displays a relatively good level of vocabulary, illustrated by words such a professional, principle and University (lines8/20/21). However at times she struggles to find the words she wants to explain which results in her mumbling ’inaudible’. Pronunciation Veronica struggles with pronunciation. This may be seen in words such as noisy, seen in line 13-14, and principle, line 8/20 Reading Strengths Veronica was able to complete the reading task without any prompt, in other words independently. She was able to read for the specific information, and seemed to be familiar with have and haven’t. She showed particular strength in writing full sentences with correct capital letters as well as an ability to recognise the correct punctuation and contractions making only a few errors. Weaknesses Veronica has made a few errors in the reading exercise. This may be seen through her answering, ‘it is’ instead of ‘it has’, when asked whether an individual has internet on their mobile phone. This perhaps illustrate that she may struggle with grammar. Veronica has also made a few mistakes in writing the correct punctuation, often rewriting the wrong sentence instead of correcting it as well as failing to put a full stop at the end of the sentence, as well as not using enough commas. This illustrates that Veronica who is although familiar with capital letters, punctuation, and contractions needs more support in this area. Writing Strengths Veronica is able to present her message relatively well; she is able to spell most word correctly. She illustrates a variety of words, therefore can be seen to have a good vocabulary for a learner at elementary level. She presents her ideas in logical manner, she states for example that her life in England is interesting and is able explain in more detail why she has written this. Her handwriting is very legible. She is able to use correct punctuation such as full stops and comma’s as well as contractions. Weaknesses Veronica has made a few spelling mistakes, often when words are difficult to spell such as profession which even native speaker struggle with. However even more importantly Veronica has struggled to use the capital letters in the correct manner, for example she writes Favourite instead of favourite and uses full stops to frequently instead of commas. She also struggles with the difference between is, has are and often makes errors in word order. Some of these mistakes such as wrong use of capital letter could also seen in reading task. Rationale for choice of Language area I have chosen to focus on grammar, most specifically on future tenses and future plans. In order to help improve Veronica’s improve her language skills in the area of tenses, as this is an area which is problematic for Veronica. Rationale for chosen skills area I have chosen to focus on speaking as this is an area which Veronica displays difficulty in as illustrated through the recording and may be seen in the transcript.

Exploring The Health Benefits Of Tea

Exploring The Health Benefits Of Tea Japan the country with the worlds longest life expectancy. Based on Paul Wiseman, journalist from USA TODAY reported that Japanese live longer life compared to everyone else in the world (par. 1). Frank Jordans, journalist of The Huffington Post also states that Japanese girls that are born in the year 2009 have a high chance of living to the year 2095, some may even stand the chance to explore the wonders of the next century (par. 1). Have you ever question the reason why Japanese carries the title of the worlds longest life expectancy? One of the reason is Japanese consume tea, in large quantity. Many countries across the globe believed in the health benefits of drinking tea peculiarly China, Japan, India and even England. Tea, commonly known as the natures wonder drug should be continuously explored by the general public to increase health awareness (Tea Benefits). The natures wonder drug tea, plays an important role in varies countries around the world which includes the formation of cultural ceremonies, trade routes, formal events, entertainment, and leisure for almost 4000 years. Tea is important not just solely due to the taste but also the health benefits that are tied along this ancient drink. Hence, people should include tea into their daily routine and experience the revitalizing benefits of tea (Walker). Tea has numerous health benefits that could be grouped into 5 different categories: overall health care, mental health, internal organ, fitness appearance, and illness disease. Tea contains chemicals known as polyphenols that provides antioxidant properties of tea. Antioxidant reduces the rate of aging process and improves regeneration of cells (Bell). It is true that coffee also contains antioxidant properties that have similar effect towards our human body, but, coffee contains much more caffeine as compared to tea that contributes towards a negative effect on human. For every ounces of green tea, it contains 3.1mg of caffeine while every ounce of a Starbucks Tall Coffee contains 21.7mg of caffeine (Energy Fiend). In this case, the caffeine level in coffee is 7 times stronger compared to tea. Just like any drugs, caffeine causes a chemical reaction that creates addiction towards the brain that will cause withdrawal symptoms when caffeine is not taken. When temporary stimulation is not given, brain cells will start demand for caffeine for stimulation. Deprivation of caffeine might even result in severe conditions like depression or other mental problem (Jo hnson). In addition, tea helps to keep body hydrated. Most caffeinated drinks actually dehydrate body fluid unless more than five to six cups are consumed at a time but tea has the opposite reaction. Tea is shown to be healthier than water as it keeps body hydrated in the same time providing antioxidants and a moderate amount of caffeine that is suitable for body intake (Walker). Many researches also show that tea provides a positive impact towards the brain and improve mental state of a person. Tea contains amino acid L-theanine that is scientifically proven to improve relaxation and concentration (Walker). I understand that many people like to drink coffee at it provides similar effects, some may even argue that coffee is better than tea as it provide instantaneous and stronger boost towards the brain as it contains a much higher level of caffeine. However, when high dosage of caffeine is consumed to provide the mental stimulant, it will lead to depression, mood swing and nervousness in the long run (Rodolfo). Tea also decreases the probability of having cognitive impairment, which affects the ability to think, reason, formulate ideas, and remember. Research shows that Japanese adults who drink at least 2 cups of green tea daily decrease the risk of cognitive impairment by 50%. Stress is unavoidable across age, gender, nationality and culture. Cortisol, a s tress hormone shows a 20% drop as a result of drinking 4 cups of tea daily for one month. This evidently proves that tea have the effect of reduce stress hormone level (Walker). Long term consumption of coffee in a daily basis will also disturb a persons sleeping pattern. Coffee, a beverage with high level of caffeine is a chemical stimulant that will stimulate our brain to be awake for a longer time period than normal people. This also means that people that consume coffee actually have a shorter sleeping period, and the quality sleep is highly affected. As caffeine is an addictive chemical, it will affect sleeping pattern of a person, and possibly causes insomnia or other sleeping problems, creating feeling of restlessness, tremors, and etc. The level of negative effects varies accordingly based on the consumption period, and consumption quantity (Johnson). Japan to be title the worlds longest life expectancy is mainly due to the fact that tea has many beneficial effects related to our internal organ, mainly our heart. Firstly, tea reduces the risk of heart attack and stroke as it prevents dangerous blood clots which is the main cause of heart attack and stroke. The Boston Area Health Study recorded a 44% lower risk when a person consume at least one cup of tea daily compared to a person that doesnt drink tea (McKay, and Blumberg 3). Not just in Boston, In a long-term study of a Dutch cohort, the highest tertile of tea consumption was associated with a lower risk of death from coronary heart disease and lower incidence of stroke (Yang, and Landau 2410). A reader might ask, is coffee good for our heart as well? Joseph A. Vita from Evans Department of Medicine and Whitaker Cardiovascular Institute, Boston University School of Medicine states that There was no significant relationship between coffee consumption and cardiovascular disease ( 3293S). Hence, this proves that there is no significant positive correlation between coffees as compared with the natures wonder drug tea. On the other hand, tea helps lessen blood pressure level in the body and decrease risk of hypertension. Drinking half a cup of green tea daily could reduce blood pressure risk by up to half and it has a directly proportional relationship between tea consumption and reduction of blood pressure risk. The more tea is consumed daily, the further reduction of blood pressure risk. A research was held in Taiwan with 1507 subjects to test the long term effect of tea upon hypertension and it was concluded that consumption of more than 120ml or more per day for one year significantly decrease the risk of hypertension in the Chinese population (Yi-Ching Yang et al. 1534). Using this research as the fundamental base of argument, consumption of tea in a large quantity will further provide benefits towards our heart, hence, tea should be included into our daily routine. Teas benefits are not just limited to our heart and blood pressure, it also proven to improve our digestive system. For the past 5000 years, tea has been widely used in China as an after-meal drink to aid digestion as it contains high level of tannins. Other than that, polyphenols in green tea presented an effect that helps intestinal inflammation while antispasmodic agent available in the properties of red tea helps to relief stomach cramp (Walker). On the other hand, using coffee as a comparison, drinking coffee with an empty stomach will harm our internal body which will leads to ulcer growth in the long run (Rodolfo). As a people slowly include tea into their daily routine, they will discover tea can not only improve mentally brain, physically internal organs but also providing effects on a persons fitness and appearance as well. Most people does not know that tea contains tannins and fluoride, substance that is contain in regular toothpaste, in which both reduce oral tooth decay and plaque. University of Chicago proposed polyphenols that is contain in tea aids bad breath. Hence, tea provides a platform for oral care that includes healthier teeth and breath issues that is suffered by people. Antioxidant in green tea also take place in acne problems, it was shown to be functioning the same as 4% benzoyl peroxide which is mainly used in acne treatment, bleaching teeth and hair and improving flour (Walker). Hence, why not get acne-free skin from natural antioxidant by drinking tea? A cup of tea with its full aroma has no calories unless sweeteners, sugar or milk is added. This beverage is one of the healthiest low calorie drinks that provide the morning boost without worrying of gaining weight (Walker). It is true that coffee itself is also calorie free, but, most coffee drinkers have the habit of adding sugar, creamer, sweeter or milk into their coffee compared to tea drinkers, using the research held in Taiwan, out of 1507 subjects, only 4.8% have the habit of adding milk into their beverage tea (Yi-Ching Yang et al. 1537). It was also found out by the department of chemical biology of the State University of New Jersey that feeding oolong tea to diet-induced obese mice for 10 weeks prevented obesity and fatty liver (Yang, and Landau 2411). In addition, consumption of coffee (caffeine) in large quantity at once will also disrupt sugar level in blood that could affect fat burning to change into storing fat which will cause it weight gain and other negative ef fects towards out body (Wash). Since tea has so many benefits towards our health in regards of mentally nor physically, does tea have any positive implication towards illness and disease as well? The answer is YES. Tea contributes towards strengthening of our body immune defenses system. A study was held among tea drinkers and coffee drinkers to compare immune activity within the body and it was found that immunity activity was up to five times higher in tea drinkers. Hence, practice the habit of drinking tea especially when there are people around you not feeling too well as it could help to prevent germs or virus entering your body. As tea increase our immunity system, tea also aids fighting flu as participants who gargle black tea extract solution twice a day was found to be more immune to flu virus (Walker). Instead of taking flu shots, why not just try the magical effect of tea? Besides, tea contains alkylamine antigens, which is an organic compound similar function as some bacteria and tumor cells to boost immunity. Evidence shown that tea even has effect on serious infections like sepsis, a severe bacterial infection in body tissue or blood stream. Likewise, tea also has effect in preventing food poisoning. Bacteria which lead to food poisoning are killed and toxins effects are minimize through a substance known as catechin, a bitter ingredient in green tea. With the combination of catechin and polysaccharides, it was also found to have an effect on lowering blood sugar, which will also, leads to diabetes prevention in the long run (Walker). It is true that coffee prevents type 2 diabetes, it is a beverage that naturally contains sugar that are sugar friendly to our blood, if no additional substance (sugar, creamer, syrup, and etc.) are added, it is no doubt coffee is beneficial for controlling sugar level when consumed in small quantity. Based on the World Health Organization statistics, cancer the leading cause of death with 13% worldwide, accounted for 7.9 million people in 2007. The bad news is that deaths caused by cancer are projected with an uphill slope of up to 12 million deaths in 2030. The good news is, about 30% of the death caused by cancer can be prevented (Cancer). Tea, offers a gateway toward the prevention of cancer. Many experiments and research are held to question the relationship between tea and prevention of cancer development. Studies held in Asia among 8552 Japanese adults for nine years, all subjects consume at least 10 cups of green daily are found to be having the effect of delaying cancer onset. The protective effect differs according with gender females by 8.7 years while male by three years when compared to subjects consume less than 3 cups a day. On the contrary, the delay effect of cancer was found to be less significant in Europe populations who generally consume black tea. Therefore it is important to understand the effects of different tea on our body as well as the effect of tea also differ on type of cancer (McKay, and Blumberg 6). For instance, no relation was found between tea and breast cancer in recent studies in United States, Netherlands and Italy. Conversely, 472 Japanese patient with stage I and II breast cancer recorded an inverse relationship between green tea consumption period and recurrence rate after seven years. Green tea contains substances that able modifies sex hormones that have major relationship with the risk of breast cancer reoccurrence (McKay, and Blumberg 6). Another study that was held in Iowa in regards of postmenopausal woman, it was shown that there are lower risk for urinary tract cancer and digestive tract cancer when black tea is consumed (Yang, Landau 2411). Besides that, in Netherlands, 120852 people were observed to have a weak, inverse association with consumption of black tea and stomach cancer. However, in Poland, a significant result of stomach cancer reduction is found in woman who drank tea daily. Although the effect does not occur to men, it is important to take note th at growth of stomach cancer cells are inhibited through theaflavins, a substance contain in black tea (McKay, and Blumberg 6). The most important point is to acknowledge the different tea has its own unique chemical substances and effects towards human body in the same time understanding that there is no one tea fit all concept. The effects of tea vary accordingly and it is high affected by lifestyle, eating habit, geographical, population and climate of an individual. A careful in dept study should be held in each nation to understand the chemical properties of tea in associate with lifestyle from that area itself to obtain its greatest potential benefits. In the nut shell, tea has a vast variety of benefits which includes taking care of our overall health care and mental health, protecting our internal organs, in the same time provides a better fitness and appearance. It also provides preventive measures for illness and disease. Hence, the next time anyone asks the question, Hello, would you like coffee or tea? Please reply, I would like TEA.

Grey Marketing Activities Within the Software Industry

Grey Marketing Activities Within the Software Industry Future ABSTRACT The research work has presented an enlarged view of the operation within the grey markets, their functioning, pricing structure, the customer base lastly the arguments in favour, thereby evaluating -‘Can grey be good? It has also focussed on grey markets- as a subject of annoyance for the IT players OEMs. Counter-arguments hostile measures adopted to combat grey goods have also been the point of discussion. Overall, this piece of research is being successful in presenting a balanced view of the goods the bads of the grey industry from the perspective of industry players, grey entrepreneurs as well as consumers. INTRODUCTION 1.1 AIMS To obtain information insights about grey marketing activities within the software industry. With the help of Journals, case studies secondary research activities shed light on the present scenario of the grey markets (consumer targeting inclination, pricing etc). The pros cons of grey marketing shall also be presented to have an equalised view. To know what are the hostile measures adopted by firms to prevent grey activities. Present cases to depict the preventive measures adopted by firms like HP Microsoft to combat grey market products. The paper also focuses on the initiatives adopted by independent agencies such as AGMA BSA towards grey market activities. Market Penetration Grey Markets Can grey market ever be an alternative to market penetration? If yes, to which extent can it be possible? In addition, understanding the concept of ‘free riding as a way for market penetration, as mentioned in the Journal of Business Venturing (Vol 4). To evaluate: Can grey ever be good? Based on the research undertaken, evaluating thereby concluding the positives negatives of grey markets. Should they be encouraged? Can they boost an economic scenario of a country? lastly how effective can they be in increasing sales of a product? 1.2 OBJECTIVES The methodology that is to be adopted for fulfilment of the above aims is as under: Journals, Newsweekly, Internet (secondary research) along with white papers provided by firms shall be the main sources of information for this research. Primary data obtained through interviewing shall be the most vital aspect (it shall be considering not only the consumer perspective towards grey markets its products, but also of dealers operating within this arena). finally, the crux of the research (insights, analysis evaluation) will be presented to obtain a concluding perspective. 1.3 GREY MARKET: AN NTRODUCTION Majority of distribution companies are flourishing thanks to distribution channels that shepherd product from a manufacturer eventually direct them to the consumers through a chain of legitimate distributors across the world. But a mounting quite detrimental market subsists that can cause ignorant customers to buy technology products with untrue warranties, several designed for use in other countries or worse products consisting counterfeit parts. These practices can erode customer satisfaction harm brand integrity, causing major profit attrition for manufacturers. Welcome to the global ‘Grey Market where branded products have been sidetracked from the authorised supply channel within a country or are imported into a country without the approval or awareness of the manufacturer. Grey market goods are usually sold at lesser prices than those proposed by the legitimate distributors. And the pricing disparity amongst various legitimate markets customers generates an opportunity for the brokers to procure labelled products at discounted prices move them to markets where they can fetch high income. A research study by KMPG demonstrates that grey market goods pose a grave challenge to information technology manufacturers their authorised dealers. The study reveals that IT manufacturers are communally losing up to US$5 billion in profits on yearly basis, a figure that is mounting. While the grey market affects many businesses, including automobiles, consumer products, pharmaceuticals, fashion accessories others, this study shall validate that computers related products are the industry segments most affected by grey market actions. 1.4 INTRODUCTION TO THE PROBLEM (a) Software Counterfeiting Counterfeiting is amongst the most exigent problem facing the information technology (IT) industry today. Illegal replicas of brand-name high tech products are flooding the marketplace, causing harm to legitimate companies profits and dropping their aptitude to invest in research and development (RD). Multiplication of technology employed to make computers, servers, and a host of high tech products—as well as a lack of regulatory enforcement in developing countries—is speeding up counterfeiting. It is now estimated that as much as 10 percent of all high tech products sold globally are counterfeit. (b) Free Riding: A Way To Penetrate Markets? ‘Free Riding is a term which comes into picture when software products have been counterfeited. Free-riding was first introduced by Tan et al. (1995, 1997) as an alternative explanation for the incidence of grey marketing, whereby grey entrepreneurs are provided with the opportunity to enter money-making markets that are presently supplied by big firms. However, hostile measures have been taken to prevent grey market activities by agencies like AGMA BSA as well as biggies like Microsoft, HP etc. HP is administrating reseller spot checks and distie reviews to stamp out the grey market in a variety of regions without being hesitant to exercise the law courts against resellers who â€Å"breach contractual requisites†. The firm, at the moment, is taking legal action in opposition to one UK reseller for violation of agreement and cautions it has other cases under review. While, Microsoft has collared another plagiarist in the UK for flogging grey software on eBay. The software giant has scored  £35,000 in compensation against an internet trader for copyright violations and illegitimately bringing in cheap American software to Europe. Meanwhile, an agency like Business Software Alliance (BSA) is outing bandits by setting a bounty on their heads. The group announced its Blow the Whistle operation which presents $1m to workers who squeal on their companies. Certain firms are trying to launch software which might allow manufacturers detect sales through unofficial mediums. 1.5 SCOPE FOR THE REASERCH The main reason behind the proposed research subject is to obtain information on the grey markets the practices that are being carried out. The scope for undertaking the research work is as under: Understanding the global phenomenon of ‘grey marketing. Understanding the logistics within grey markets. The precautionary measures adopted by the firms agencies to prevent grey activities. The concept of free riding to penetrate markets within the software arena. lastly analysing evaluating the research produced to gather provide insights. 1.6 LIMITATIONS TOWARDS THE REASERCH The possible shortcomings for the proposed research topic are as under: Being an unconventional subject for research, obtaining information can be tough. Tracking the right sources of information is a major challenge. Information gathered through ground research cant be entirely relied upon, as it can be manipulative. Information obtained from grey suppliers may not be fruitful, as they might not give out precise information about the present scenario Interviewing people from companies or firms who are being targeted by grey marketers may prefer to remain low profile on the preventive measures they plan to adopt in future. 1.7 REASEARCH STRUCTURE The research has five focus groups (in order to understand the information.) The first chapter offers an inside view of the topic with its backdrop. It also contains the customary objectives which form the foundation for a focused research study. Meanwhile, it also describes how the established purpose will be achieved and the manner they would provide help. This section gives rationale and importance of conducting this research. The second chapter comprises the prior literature on grey markets, constructed by a range of authors and researchers in earlier years. This would aid to shed light on the pros cons in grey marketing. In addition; this chapter provides live cases published in reputed newsweekly. The third chapter talks about the type of methodology the researcher has employed to achieve the study. It gives out the arguments in favour against of each method in order to gain understanding. Furthermore, it exemplifies of some important sources which have been accessed to complete the study. Thus, this chapter explains the different techniques to achieve the objectives. The fourth chapter forms the body of the thesis as it entails the detailed analysis of the various aspects to establish the objectives. This chapter generates convincing points to support the study. The fifth and the last chapter of the paper summarises all the information gathered, finally, concluding the thesis. 1.8 SUMMARY HYPOTHESIS To summarise the above literature in few words, I shall be basically focusing weather grey markets can influence the sales of a product, thereby helping towards market penetration. Concepts, rather strategies, such as free riding shall be looked researched upon to present realistic as well as optimistic view towards grey markets, thereby analysing -‘Can grey ever be good? ‘Can grey goods help in market penetration? LITREATURE REVIEW Almost exclusively, the existing literature on grey marketing regards the occurrence as a pricing problem but falls short to identify it as a market entry opportunity for start-up entrepreneurs. The grey marketing strategy forms apt for start-up entrepreneurs in view of their resource limitations and the risk of being a first-mover in market development. Within this paper, the researcher shall be focusing on how an entrepreneur can effectively penetrate an established market by adopting suitable approaches. This is most favorable for an incumbent trader to accommodate the entrepreneur/grey marketer even if the former could compel the latter out of the market through hostile counter actions. Moorthy (1985) demonstrated the game theoretic methodology is most appropriate to investigating the behavior of market participants in such a state. This game theory is being pursued by Lim G.H., Lee K.S., Tan S.J. (Journal of Business Venturing, Jul 2001, Vol 16) to depict the strategic communications between parties concerned in grey markets and to recognise the circumstances under which entrepreneurs can effectively enter these markets. 2.1 THE POSITIVES OF GREY MARKETING A study offered by USC Marshall Research in fall 2004 by Mark Bergen (Carlson School of Management, Kersi D. Antia (University of West Ontario, London) Shantanu Dutta (Marshall School of Business, University of California) portrays the optimism towards grey markets. According to the paper, grey markets are often an helpful way to react to competitive demands, control distribution channels, fragment markets, reach unexploited markets alter the changes in market conditions. Some of the positive aspects of grey markets are being highlighted below: Incremental Sales: Grey markets are favourable if they reach formerly untapped markets. Grey markets also disclose the existence of new markets. Cell phone manufacturers competing in Malaysia, for instance, discovered a buying segment keen to pay premium prices for the newest phone gadgetry. Supply restrictions: Grey markets are advantageous if they permit dealers to overcome supply constraints scarcities. For example, IBM relied on the illegal outlets in China to get around government policies requiring the participation of local companies. Rather than make huge investments to fake partnerships with local distributors, IBM turned a blind eye to a flood of grey market imports from Hong Kong. Competitive need of opportunity: Competitors will frequently exploit grey markets if they are lucrative companies which do not follow trail shall lose significant market share, position power. This is precisely what happened to Indian-branded manufacturers of PCs. With the evident competition and sales went on at high-end retailers, the actual sales volume that led to economies of scale market penetration took place in the unorganised sector, accounting nearly 60% of total market. Several branded PC maker in India, uncared for this market, failing to reach a large unexploited segment of customers whose wants were not being met by the existing channel. Competitors that did sell to this sector have since grown to be key players. Market Segmentation: It is at times complicated to segment market within an existing distribution channel structure. Grey markets permit firms to segment their customer base more profitably than they could if they employ only a constricted base of distributors, customer uncertainty branded dilution that arrives from selling through a multi-channel network of legitimate dealers. IBM used a twofold channel approach to sell profitably in high end markets while still attaining more price responsive consumers with grey market goods; this strategy helped the company meet sales targets, spawn profits produce sales economies in manufacturing. Channel Management: Occasionally it is less expensive to abide grey market activity than to close it entirely. Shutting down grey market can be very pricey in terms of management time other resources required sensing breach, filing them, communicating them internally with distributors, and punishing the lawbreakers. Grey markets may also be a less expensive means to serve small customer sections that do not have access to authorised outlets or customers who do not value the services offered by authorised dealers. Varying market environment: In many situations, distribution channels cannot modify adequately to meet new market realities. For example, auto dealers have supply networks in places that are hard to switch. But in an epoch of soft sales, sustained incentives continually growing competition, they are struggling for numbers, even if it means forgone revenues. With effect, dealers have been more tolerant to grey markets as long as these markets let them to get in touch with a broader set of customers at improved prices. Market Aptitude: Companies that reveal grey market activities the causes following them discover about their customers their markets. Since grey markets materialise on their own, outside existing supply channels structures, they are frequently driven by influential market forces (such as short supply to a particular segment that wants the product) therefore put forward some of the purest forms of market intelligence accessible. 2.2 CONS OF GREY MARKETING 1. Dilution of exclusivity: Perhaps the most instant outcome of grey market is the draining down of exclusive rights to distribute a product. Instead of being the solitary distributor or one of a select few enterprises for delivering a product, the authorised distributor becomes merely one of several sources. The consequence is a radical drop in margins as multiple outlets struggle for the same customer. What follows promptly thereafter is only to be expected: loud complaints from the legitimate distributors and calls to the company to â€Å"do something concerning it!† 2. Free riding: But what if a manufacturer turns blind eye or, worse yet, writes off its authorized distributors complaints? While it is improbable that a distributor would split relations with the supplier in protest, there are several indirect but possibly more insidious ways of reaching the manufacturer. One of these is free riding. Free-riding was initially offered by Tan et al. (1995, 1997) as an alternative justification for the event of grey markets. In such situations, authorised traders, dispirited by anemic margins and manufacturers ineffectiveness, begin skimping on the imperative services they generally offer—such as presale service, consumer awareness education on product features, salesperson training and so on—in an attempt to lessen their expenses and match grey marketers price. This approach can weaken the value-added services and activities that often lay at the heart of several enterprises sources of differentiation and competitive plan in the market place. As one automobile dealer put it, â€Å"We invest millions in sales and service facilities. Its hard to compete with someone whose only investments are a briefcase and a cell phone.† The under provision of services is the death knell of high-end brands, as customers who value service will discard the brand in droves. 3. Damage to channel relations: Perhaps the prime cost of grey marketing is its impact on the relations and trust amid members of the distribution system. When a manufacturer has made major investments in official channel members or is dependent on one or a few associates (or both), grey markets that rip off these relationships can be particularly pricey. Visualise an official supplier that has recently coughed up $2 million to set up a new outlet and its related trappings—all to accomplish its contractual obligations. The manufacturer has guaranteed the dealer that ownership of an exclusive region will more than add up for his venture. Just as the distributor begins to foresee the promised sales, he receives word that the cash cow of the product line is offered down the street at a markdown of 15% to 20% off its own posted price. Frenzied phone calls to the manufacturer are met with empty reassurances or even stony silence. What should the enterprise do? Should it (a) match the price of its grey market opponent, doing whatsoever necessary to cut costs, (b) complain robustly to the manufacturer or (c) seek assistance from the courts, suing whoever appears liable for his current remorseful situation? 4. Undermining segmented pricing schemes: The spill over from this distribution headache expands with equivalent viciousness to most essential elements of a marketing strategy, including pricing. A basic characteristic of multinational operational strategy is the facility to price goods at levels that every local market can bear. As long as a company can fragment each market, it has a winning hand. But globalisation tosses a twist in the works. Tumbling trade barriers, easy accessibility of information and improved logistical potentials have collectively made the watertight local market a quaint belief; these factors also make it easier for grey market operators to flourish. 5. Repute and legal liability: A manufacturers ability to support its product is taken for granted. In the case of grey market goods, however, the manufacturer loses control of the product. FOR AN EXAMPLE OF how these five fundamentals can work together, consider the troubles faced by manufacturers of new, high-end IT products. High levels of services are often required to instruct customers on the features and benefits of these products. To really understand quality new product features and their functioning with other technologies, it is obligatory for the customers to learn from a salesperson at the retail outlet. To make such services available, the manufacturer time and again needs to develop a relatively elite set of distributors, fostering strong contacts and supporting the distributors actions with subsidies and an opportunity to achieve high margins. Authorised suppliers are chiefly vulnerable to grey markets in this condition. Illegitimate dealers can free ride, allowing other dealers invest in the service and offering the similar products at lower prices. Budding customers can take what they discover from authorised dealers and hunt for low-service, lower-price grey markets. The authorised sellers thus face high costs, shrinking margins and low sales. Often, the clarification they opt is to provide less service and to be more price competitive. As their margins contract, channel clashes grow, and the dealers start routing customers to competitors products which offer higher margins. The difficulty, then, eventually budges from the authorised distributors and comes to rest on the shoulders of the manufacturer. Below presented are two different cases providing two different perspectives towards grey practices. The first consist of a comparative study amongst countries the pricing structure of the grey goods that are being sold. The second case depicts the current scenario of grey activities in China. The case focuses mainly on the problem of counterfeiting of IT products the preventive measures that can be taken to minimise this nuisance. CASE 1: BUYING FROM THE GREY MARKET Are you tempted to buy cheap and cheerful goods from the grey market or should you take the authorised route? asks Sean Fleming. Anyone who has visited the US or the Far East will have found themselves going misty-eyed and waxing lyrical on the subject of how cheap things are over there. But you dont have to cross an ocean to see bargains. The difference in the price of new cars in Britain and mainland Europe they are often as much as 20% cheaper on the continent has many people hopping mad. The UKs Director General of Fair Trading has concluded the market isnt working, and has now ordered the Monopolies and Mergers Commission to investigate whether or not cartels exist in the car industry. Whatever the cause, people are realising that we must be paying over the odds in the UK for a whole range of goods and services. But do we complain? No, thats not the British way, is it? So that decision to investigate high prices in the UK will come as music to many peoples ears. Trade and industry minister Stephen Byers says he has identified this as a key obstacle to the concept of a harmonised Europe. If you want proof that things cost more here in the UK, there is plenty of it around. Bureau European des Unions de Consommateurs (BEUC), the European consumers organisation, carried out a survey last year in 52 cities across Europe in which it compared the prices of 400 different products. From this it produced an index of the cheapest and most expensive countries. The UK turned out to be the dearest of the 10 countries sampled, with a rating of 124 overall. By comparison, France scored 107, Luxembourg 102 and Germany a rating of 100. Report after report, survey after survey, they all come back with the same result when you compare like-for-like goods, we in the UK are paying more than just about everyone else in the developed world. Sure enough, its the same story with IT equipment both hardware and software. Feel like paying through the nose? No? Thats unfortunate, because the chances are youre going to. There is a painfully simple solution to all of this, of course. If stuff is cheaper somewhere else, then go somewhere else to buy it. Plenty of people import cars from Holland and Germany, and even from the Far East, so why not do it with IT? The practice of buying from non-standard, unauthorised outlets is often referred to as buying from the grey market. The grey market is a bit like the black market, except in this case no ones actually breaking the law just risking the annoyance of original manufacturers. There are big savings to be had from going grey. For example, an IBM PC 300GL, with PII 400MHz chip, 32Mb memory and a 4.2Gb hard drive running Windows 98 would set you back about #814 in the UK, but bought on the European mainland, the same PC will cost you #689. Thats a 15% saving. How about a Cisco 1601CH router? Itll cost you about #779 here and only #649 on the other side of the channel. Mike Almond is business development manager at ProSource, a company which specialises in finding this sort of deal for its customers. Using a combination of overseas contacts and the Net, ProSource keep tracks of international prices on a daily basis. When asked by a customer for a particular product, it can go out and find the best price. Were not saying were better than established channels or that our approach is the right one for organisations to adopt, but our results speak for themselves. More importantly, we offer an alternative option to our customers. Thats what a free market should deliver, Almond says. Its not difficult to find this stuff. Some manufacturers will discount heavily in particular countries to make in-roads into that market. We can use those markets to buy products back cheaper. There is, of course, a catch buy your kit from another country and the manufacturers warranty is invalid when you get home. No warranty means no technical support, no helpline advice and certainly no upgrades. Some manufacturers are so inflamed at the thought of people saving money like this that they will not just refuse support; they will also claim the law is being broken. This is despite the fact that Europe is now a single market. Phil Humphries is head of IT services at Surrey Police and it is no surprise that hes extremely cautious about ending up on the wrong side of the law, whether statutory or a manufacturers warranty rule. As part of his forces year 2000 project, a lot of equipment has been replaced, at the same time as migrating to Windows NT. He may have seen lots of expensive equipment being bought, but Humphries is not tempted by the lure of the grey market. I am aware that some of the things we use could be bought cheaper overseas by using the grey market, but I dont think the differences are as great as they used to be, he says. Apart from which, the hassle factor would be enough to put me off. This is an important factor for many people. All too often you dont know exactly what youre buying and who you are buying it from. In the event of a problem, can you be sure youll be able to get hold of them? Humphries said. But theres more to it than that. Saving money on initial capital outlay may have its attractions, but Humphries feels this is a short-term gain had at the expense of longer term success. We are moving away from a situation where we are buying boxes. Now we want to deal with a partner which can offer the right support we need from start to finish. Most of the bargain-basement IT offers that crop up in the small ads will be for software. Adverts purporting to have US versions of Microsoft Office at less than half price are fairly commonplace. David Gregory, Microsoft UKs customer legal licensing manager, warns there is more to these offers than meets the eye. He explains: Our biggest problem with people using unauthorised sources is that the overwhelming majority of this software is counterfeit. It will be passed off as being from the US, but in about 90% of cases it is pirated. The individual serial number on the product tells us where that product was bought or if it is a copy. Finding anyone with IT purchasing responsibility who will admit to using the grey market is difficult, although one IT manager confided anonymously: Most of our procurement has to go through a centralised process. However, some stand-alone projects are bought on an ad-hoc basis and thats when buying on the cheap becomes a viable option. But why is any of this stuff priced so much higher in the UK in the first place? Almost all the major manufacturers operate different pricing policies in different countries, but few can explain why the UK gets clobbered quite so comprehensively. As far as Microsoft is concerned, Gregory says: The majority of software originates from the US and there are certain unavoidable costs incurred when taking that software into other territories local support services, language support, translating documentation and so on. Not to mention currency fluctuations. But with the worlds foremost software vendor moving toward shipping single every-language versions of its products, this position is set to become obsolete. On the hardware front, the worlds number one in PCs, Compaq, also varies prices between the countries that it sells to. David Petts, Compaq UK commercial unit business manager, explains: Local pricing exists because different markets have different patterns of economic behaviour. In Europe, Compaq prices are set by the companys European HQ in Munich, and individual countries are then able to fix their own prices within a given range. So, if one were to charge at the top end of the range and another charged at the lower end, you could, in theory, see material price differences, he says. Why the UK is hit hardest by these price differentials is obviously a difficult subject for manufacturers to discuss candidly. One source within a major hardware company begrudgingly admits: Lots of things are cheaper in the US and Japan. Its the way of the world people just need to face up to it. So, there you have it put up and shut up. If you dont put up, and instead succumb to the grey market, your warranties wont work. However, there are ways to get around the warranty issue. In the case of Compaq, any warranty in operation in the UK will also cover the rest of Europe and vice-versa. You can buy Compaq kit in Holland, for example, and not have to worry about your warranty. ProSources Almond explains that it is important to keep geography in mind when venturing into the grey market. Manufacturers will claim warranties are not valid, but under EC law there is nothing to stop you buying things from any other EC country. If we have a customer that is very sensitive about maintaining the warranties, well be careful to only buy from within the right region, he says. In the case of IBM, things are even more straightforward: good old Big Blue offers global support on all its products, so it doesnt matter if you bought your ThinkPad in Durban but you live in Doncaster. A long-standing champion of the grey market is Cirencester-based RBR Networks, Ciscos largest European distribution partner. Before getting its Cisco accreditation in October 1997, RBR was something of a thorn in Ciscos side. It was doing so much business in grey-market Cisco product that in the end the company had to be brought into the fold. RBR marketing director, Jos White, takes a fairly pragmatic view of the subject. He does, however, prefer the term second sourcing to grey market he believes it doesnt sound so grubby. Using second sourcing, we could make a healthy margin and still sell cheaper than most of the competition, says White. It has to be up to the manufacturer to make it worth everyones while to use the authorised channels, he adds. Manufacturers cannot simply try and ban this sort of thing and it is definitely not on for them to throw their weight around, threatening everyone by saying that their licences are invalid and they may be breaking the law. It comes as no surprise that a manufacturer such as Compaq is against the use of the grey market. It has nothing to Grey Marketing Activities Within the Software Industry Grey Marketing Activities Within the Software Industry Future ABSTRACT The research work has presented an enlarged view of the operation within the grey markets, their functioning, pricing structure, the customer base lastly the arguments in favour, thereby evaluating -‘Can grey be good? It has also focussed on grey markets- as a subject of annoyance for the IT players OEMs. Counter-arguments hostile measures adopted to combat grey goods have also been the point of discussion. Overall, this piece of research is being successful in presenting a balanced view of the goods the bads of the grey industry from the perspective of industry players, grey entrepreneurs as well as consumers. INTRODUCTION 1.1 AIMS To obtain information insights about grey marketing activities within the software industry. With the help of Journals, case studies secondary research activities shed light on the present scenario of the grey markets (consumer targeting inclination, pricing etc). The pros cons of grey marketing shall also be presented to have an equalised view. To know what are the hostile measures adopted by firms to prevent grey activities. Present cases to depict the preventive measures adopted by firms like HP Microsoft to combat grey market products. The paper also focuses on the initiatives adopted by independent agencies such as AGMA BSA towards grey market activities. Market Penetration Grey Markets Can grey market ever be an alternative to market penetration? If yes, to which extent can it be possible? In addition, understanding the concept of ‘free riding as a way for market penetration, as mentioned in the Journal of Business Venturing (Vol 4). To evaluate: Can grey ever be good? Based on the research undertaken, evaluating thereby concluding the positives negatives of grey markets. Should they be encouraged? Can they boost an economic scenario of a country? lastly how effective can they be in increasing sales of a product? 1.2 OBJECTIVES The methodology that is to be adopted for fulfilment of the above aims is as under: Journals, Newsweekly, Internet (secondary research) along with white papers provided by firms shall be the main sources of information for this research. Primary data obtained through interviewing shall be the most vital aspect (it shall be considering not only the consumer perspective towards grey markets its products, but also of dealers operating within this arena). finally, the crux of the research (insights, analysis evaluation) will be presented to obtain a concluding perspective. 1.3 GREY MARKET: AN NTRODUCTION Majority of distribution companies are flourishing thanks to distribution channels that shepherd product from a manufacturer eventually direct them to the consumers through a chain of legitimate distributors across the world. But a mounting quite detrimental market subsists that can cause ignorant customers to buy technology products with untrue warranties, several designed for use in other countries or worse products consisting counterfeit parts. These practices can erode customer satisfaction harm brand integrity, causing major profit attrition for manufacturers. Welcome to the global ‘Grey Market where branded products have been sidetracked from the authorised supply channel within a country or are imported into a country without the approval or awareness of the manufacturer. Grey market goods are usually sold at lesser prices than those proposed by the legitimate distributors. And the pricing disparity amongst various legitimate markets customers generates an opportunity for the brokers to procure labelled products at discounted prices move them to markets where they can fetch high income. A research study by KMPG demonstrates that grey market goods pose a grave challenge to information technology manufacturers their authorised dealers. The study reveals that IT manufacturers are communally losing up to US$5 billion in profits on yearly basis, a figure that is mounting. While the grey market affects many businesses, including automobiles, consumer products, pharmaceuticals, fashion accessories others, this study shall validate that computers related products are the industry segments most affected by grey market actions. 1.4 INTRODUCTION TO THE PROBLEM (a) Software Counterfeiting Counterfeiting is amongst the most exigent problem facing the information technology (IT) industry today. Illegal replicas of brand-name high tech products are flooding the marketplace, causing harm to legitimate companies profits and dropping their aptitude to invest in research and development (RD). Multiplication of technology employed to make computers, servers, and a host of high tech products—as well as a lack of regulatory enforcement in developing countries—is speeding up counterfeiting. It is now estimated that as much as 10 percent of all high tech products sold globally are counterfeit. (b) Free Riding: A Way To Penetrate Markets? ‘Free Riding is a term which comes into picture when software products have been counterfeited. Free-riding was first introduced by Tan et al. (1995, 1997) as an alternative explanation for the incidence of grey marketing, whereby grey entrepreneurs are provided with the opportunity to enter money-making markets that are presently supplied by big firms. However, hostile measures have been taken to prevent grey market activities by agencies like AGMA BSA as well as biggies like Microsoft, HP etc. HP is administrating reseller spot checks and distie reviews to stamp out the grey market in a variety of regions without being hesitant to exercise the law courts against resellers who â€Å"breach contractual requisites†. The firm, at the moment, is taking legal action in opposition to one UK reseller for violation of agreement and cautions it has other cases under review. While, Microsoft has collared another plagiarist in the UK for flogging grey software on eBay. The software giant has scored  £35,000 in compensation against an internet trader for copyright violations and illegitimately bringing in cheap American software to Europe. Meanwhile, an agency like Business Software Alliance (BSA) is outing bandits by setting a bounty on their heads. The group announced its Blow the Whistle operation which presents $1m to workers who squeal on their companies. Certain firms are trying to launch software which might allow manufacturers detect sales through unofficial mediums. 1.5 SCOPE FOR THE REASERCH The main reason behind the proposed research subject is to obtain information on the grey markets the practices that are being carried out. The scope for undertaking the research work is as under: Understanding the global phenomenon of ‘grey marketing. Understanding the logistics within grey markets. The precautionary measures adopted by the firms agencies to prevent grey activities. The concept of free riding to penetrate markets within the software arena. lastly analysing evaluating the research produced to gather provide insights. 1.6 LIMITATIONS TOWARDS THE REASERCH The possible shortcomings for the proposed research topic are as under: Being an unconventional subject for research, obtaining information can be tough. Tracking the right sources of information is a major challenge. Information gathered through ground research cant be entirely relied upon, as it can be manipulative. Information obtained from grey suppliers may not be fruitful, as they might not give out precise information about the present scenario Interviewing people from companies or firms who are being targeted by grey marketers may prefer to remain low profile on the preventive measures they plan to adopt in future. 1.7 REASEARCH STRUCTURE The research has five focus groups (in order to understand the information.) The first chapter offers an inside view of the topic with its backdrop. It also contains the customary objectives which form the foundation for a focused research study. Meanwhile, it also describes how the established purpose will be achieved and the manner they would provide help. This section gives rationale and importance of conducting this research. The second chapter comprises the prior literature on grey markets, constructed by a range of authors and researchers in earlier years. This would aid to shed light on the pros cons in grey marketing. In addition; this chapter provides live cases published in reputed newsweekly. The third chapter talks about the type of methodology the researcher has employed to achieve the study. It gives out the arguments in favour against of each method in order to gain understanding. Furthermore, it exemplifies of some important sources which have been accessed to complete the study. Thus, this chapter explains the different techniques to achieve the objectives. The fourth chapter forms the body of the thesis as it entails the detailed analysis of the various aspects to establish the objectives. This chapter generates convincing points to support the study. The fifth and the last chapter of the paper summarises all the information gathered, finally, concluding the thesis. 1.8 SUMMARY HYPOTHESIS To summarise the above literature in few words, I shall be basically focusing weather grey markets can influence the sales of a product, thereby helping towards market penetration. Concepts, rather strategies, such as free riding shall be looked researched upon to present realistic as well as optimistic view towards grey markets, thereby analysing -‘Can grey ever be good? ‘Can grey goods help in market penetration? LITREATURE REVIEW Almost exclusively, the existing literature on grey marketing regards the occurrence as a pricing problem but falls short to identify it as a market entry opportunity for start-up entrepreneurs. The grey marketing strategy forms apt for start-up entrepreneurs in view of their resource limitations and the risk of being a first-mover in market development. Within this paper, the researcher shall be focusing on how an entrepreneur can effectively penetrate an established market by adopting suitable approaches. This is most favorable for an incumbent trader to accommodate the entrepreneur/grey marketer even if the former could compel the latter out of the market through hostile counter actions. Moorthy (1985) demonstrated the game theoretic methodology is most appropriate to investigating the behavior of market participants in such a state. This game theory is being pursued by Lim G.H., Lee K.S., Tan S.J. (Journal of Business Venturing, Jul 2001, Vol 16) to depict the strategic communications between parties concerned in grey markets and to recognise the circumstances under which entrepreneurs can effectively enter these markets. 2.1 THE POSITIVES OF GREY MARKETING A study offered by USC Marshall Research in fall 2004 by Mark Bergen (Carlson School of Management, Kersi D. Antia (University of West Ontario, London) Shantanu Dutta (Marshall School of Business, University of California) portrays the optimism towards grey markets. According to the paper, grey markets are often an helpful way to react to competitive demands, control distribution channels, fragment markets, reach unexploited markets alter the changes in market conditions. Some of the positive aspects of grey markets are being highlighted below: Incremental Sales: Grey markets are favourable if they reach formerly untapped markets. Grey markets also disclose the existence of new markets. Cell phone manufacturers competing in Malaysia, for instance, discovered a buying segment keen to pay premium prices for the newest phone gadgetry. Supply restrictions: Grey markets are advantageous if they permit dealers to overcome supply constraints scarcities. For example, IBM relied on the illegal outlets in China to get around government policies requiring the participation of local companies. Rather than make huge investments to fake partnerships with local distributors, IBM turned a blind eye to a flood of grey market imports from Hong Kong. Competitive need of opportunity: Competitors will frequently exploit grey markets if they are lucrative companies which do not follow trail shall lose significant market share, position power. This is precisely what happened to Indian-branded manufacturers of PCs. With the evident competition and sales went on at high-end retailers, the actual sales volume that led to economies of scale market penetration took place in the unorganised sector, accounting nearly 60% of total market. Several branded PC maker in India, uncared for this market, failing to reach a large unexploited segment of customers whose wants were not being met by the existing channel. Competitors that did sell to this sector have since grown to be key players. Market Segmentation: It is at times complicated to segment market within an existing distribution channel structure. Grey markets permit firms to segment their customer base more profitably than they could if they employ only a constricted base of distributors, customer uncertainty branded dilution that arrives from selling through a multi-channel network of legitimate dealers. IBM used a twofold channel approach to sell profitably in high end markets while still attaining more price responsive consumers with grey market goods; this strategy helped the company meet sales targets, spawn profits produce sales economies in manufacturing. Channel Management: Occasionally it is less expensive to abide grey market activity than to close it entirely. Shutting down grey market can be very pricey in terms of management time other resources required sensing breach, filing them, communicating them internally with distributors, and punishing the lawbreakers. Grey markets may also be a less expensive means to serve small customer sections that do not have access to authorised outlets or customers who do not value the services offered by authorised dealers. Varying market environment: In many situations, distribution channels cannot modify adequately to meet new market realities. For example, auto dealers have supply networks in places that are hard to switch. But in an epoch of soft sales, sustained incentives continually growing competition, they are struggling for numbers, even if it means forgone revenues. With effect, dealers have been more tolerant to grey markets as long as these markets let them to get in touch with a broader set of customers at improved prices. Market Aptitude: Companies that reveal grey market activities the causes following them discover about their customers their markets. Since grey markets materialise on their own, outside existing supply channels structures, they are frequently driven by influential market forces (such as short supply to a particular segment that wants the product) therefore put forward some of the purest forms of market intelligence accessible. 2.2 CONS OF GREY MARKETING 1. Dilution of exclusivity: Perhaps the most instant outcome of grey market is the draining down of exclusive rights to distribute a product. Instead of being the solitary distributor or one of a select few enterprises for delivering a product, the authorised distributor becomes merely one of several sources. The consequence is a radical drop in margins as multiple outlets struggle for the same customer. What follows promptly thereafter is only to be expected: loud complaints from the legitimate distributors and calls to the company to â€Å"do something concerning it!† 2. Free riding: But what if a manufacturer turns blind eye or, worse yet, writes off its authorized distributors complaints? While it is improbable that a distributor would split relations with the supplier in protest, there are several indirect but possibly more insidious ways of reaching the manufacturer. One of these is free riding. Free-riding was initially offered by Tan et al. (1995, 1997) as an alternative justification for the event of grey markets. In such situations, authorised traders, dispirited by anemic margins and manufacturers ineffectiveness, begin skimping on the imperative services they generally offer—such as presale service, consumer awareness education on product features, salesperson training and so on—in an attempt to lessen their expenses and match grey marketers price. This approach can weaken the value-added services and activities that often lay at the heart of several enterprises sources of differentiation and competitive plan in the market place. As one automobile dealer put it, â€Å"We invest millions in sales and service facilities. Its hard to compete with someone whose only investments are a briefcase and a cell phone.† The under provision of services is the death knell of high-end brands, as customers who value service will discard the brand in droves. 3. Damage to channel relations: Perhaps the prime cost of grey marketing is its impact on the relations and trust amid members of the distribution system. When a manufacturer has made major investments in official channel members or is dependent on one or a few associates (or both), grey markets that rip off these relationships can be particularly pricey. Visualise an official supplier that has recently coughed up $2 million to set up a new outlet and its related trappings—all to accomplish its contractual obligations. The manufacturer has guaranteed the dealer that ownership of an exclusive region will more than add up for his venture. Just as the distributor begins to foresee the promised sales, he receives word that the cash cow of the product line is offered down the street at a markdown of 15% to 20% off its own posted price. Frenzied phone calls to the manufacturer are met with empty reassurances or even stony silence. What should the enterprise do? Should it (a) match the price of its grey market opponent, doing whatsoever necessary to cut costs, (b) complain robustly to the manufacturer or (c) seek assistance from the courts, suing whoever appears liable for his current remorseful situation? 4. Undermining segmented pricing schemes: The spill over from this distribution headache expands with equivalent viciousness to most essential elements of a marketing strategy, including pricing. A basic characteristic of multinational operational strategy is the facility to price goods at levels that every local market can bear. As long as a company can fragment each market, it has a winning hand. But globalisation tosses a twist in the works. Tumbling trade barriers, easy accessibility of information and improved logistical potentials have collectively made the watertight local market a quaint belief; these factors also make it easier for grey market operators to flourish. 5. Repute and legal liability: A manufacturers ability to support its product is taken for granted. In the case of grey market goods, however, the manufacturer loses control of the product. FOR AN EXAMPLE OF how these five fundamentals can work together, consider the troubles faced by manufacturers of new, high-end IT products. High levels of services are often required to instruct customers on the features and benefits of these products. To really understand quality new product features and their functioning with other technologies, it is obligatory for the customers to learn from a salesperson at the retail outlet. To make such services available, the manufacturer time and again needs to develop a relatively elite set of distributors, fostering strong contacts and supporting the distributors actions with subsidies and an opportunity to achieve high margins. Authorised suppliers are chiefly vulnerable to grey markets in this condition. Illegitimate dealers can free ride, allowing other dealers invest in the service and offering the similar products at lower prices. Budding customers can take what they discover from authorised dealers and hunt for low-service, lower-price grey markets. The authorised sellers thus face high costs, shrinking margins and low sales. Often, the clarification they opt is to provide less service and to be more price competitive. As their margins contract, channel clashes grow, and the dealers start routing customers to competitors products which offer higher margins. The difficulty, then, eventually budges from the authorised distributors and comes to rest on the shoulders of the manufacturer. Below presented are two different cases providing two different perspectives towards grey practices. The first consist of a comparative study amongst countries the pricing structure of the grey goods that are being sold. The second case depicts the current scenario of grey activities in China. The case focuses mainly on the problem of counterfeiting of IT products the preventive measures that can be taken to minimise this nuisance. CASE 1: BUYING FROM THE GREY MARKET Are you tempted to buy cheap and cheerful goods from the grey market or should you take the authorised route? asks Sean Fleming. Anyone who has visited the US or the Far East will have found themselves going misty-eyed and waxing lyrical on the subject of how cheap things are over there. But you dont have to cross an ocean to see bargains. The difference in the price of new cars in Britain and mainland Europe they are often as much as 20% cheaper on the continent has many people hopping mad. The UKs Director General of Fair Trading has concluded the market isnt working, and has now ordered the Monopolies and Mergers Commission to investigate whether or not cartels exist in the car industry. Whatever the cause, people are realising that we must be paying over the odds in the UK for a whole range of goods and services. But do we complain? No, thats not the British way, is it? So that decision to investigate high prices in the UK will come as music to many peoples ears. Trade and industry minister Stephen Byers says he has identified this as a key obstacle to the concept of a harmonised Europe. If you want proof that things cost more here in the UK, there is plenty of it around. Bureau European des Unions de Consommateurs (BEUC), the European consumers organisation, carried out a survey last year in 52 cities across Europe in which it compared the prices of 400 different products. From this it produced an index of the cheapest and most expensive countries. The UK turned out to be the dearest of the 10 countries sampled, with a rating of 124 overall. By comparison, France scored 107, Luxembourg 102 and Germany a rating of 100. Report after report, survey after survey, they all come back with the same result when you compare like-for-like goods, we in the UK are paying more than just about everyone else in the developed world. Sure enough, its the same story with IT equipment both hardware and software. Feel like paying through the nose? No? Thats unfortunate, because the chances are youre going to. There is a painfully simple solution to all of this, of course. If stuff is cheaper somewhere else, then go somewhere else to buy it. Plenty of people import cars from Holland and Germany, and even from the Far East, so why not do it with IT? The practice of buying from non-standard, unauthorised outlets is often referred to as buying from the grey market. The grey market is a bit like the black market, except in this case no ones actually breaking the law just risking the annoyance of original manufacturers. There are big savings to be had from going grey. For example, an IBM PC 300GL, with PII 400MHz chip, 32Mb memory and a 4.2Gb hard drive running Windows 98 would set you back about #814 in the UK, but bought on the European mainland, the same PC will cost you #689. Thats a 15% saving. How about a Cisco 1601CH router? Itll cost you about #779 here and only #649 on the other side of the channel. Mike Almond is business development manager at ProSource, a company which specialises in finding this sort of deal for its customers. Using a combination of overseas contacts and the Net, ProSource keep tracks of international prices on a daily basis. When asked by a customer for a particular product, it can go out and find the best price. Were not saying were better than established channels or that our approach is the right one for organisations to adopt, but our results speak for themselves. More importantly, we offer an alternative option to our customers. Thats what a free market should deliver, Almond says. Its not difficult to find this stuff. Some manufacturers will discount heavily in particular countries to make in-roads into that market. We can use those markets to buy products back cheaper. There is, of course, a catch buy your kit from another country and the manufacturers warranty is invalid when you get home. No warranty means no technical support, no helpline advice and certainly no upgrades. Some manufacturers are so inflamed at the thought of people saving money like this that they will not just refuse support; they will also claim the law is being broken. This is despite the fact that Europe is now a single market. Phil Humphries is head of IT services at Surrey Police and it is no surprise that hes extremely cautious about ending up on the wrong side of the law, whether statutory or a manufacturers warranty rule. As part of his forces year 2000 project, a lot of equipment has been replaced, at the same time as migrating to Windows NT. He may have seen lots of expensive equipment being bought, but Humphries is not tempted by the lure of the grey market. I am aware that some of the things we use could be bought cheaper overseas by using the grey market, but I dont think the differences are as great as they used to be, he says. Apart from which, the hassle factor would be enough to put me off. This is an important factor for many people. All too often you dont know exactly what youre buying and who you are buying it from. In the event of a problem, can you be sure youll be able to get hold of them? Humphries said. But theres more to it than that. Saving money on initial capital outlay may have its attractions, but Humphries feels this is a short-term gain had at the expense of longer term success. We are moving away from a situation where we are buying boxes. Now we want to deal with a partner which can offer the right support we need from start to finish. Most of the bargain-basement IT offers that crop up in the small ads will be for software. Adverts purporting to have US versions of Microsoft Office at less than half price are fairly commonplace. David Gregory, Microsoft UKs customer legal licensing manager, warns there is more to these offers than meets the eye. He explains: Our biggest problem with people using unauthorised sources is that the overwhelming majority of this software is counterfeit. It will be passed off as being from the US, but in about 90% of cases it is pirated. The individual serial number on the product tells us where that product was bought or if it is a copy. Finding anyone with IT purchasing responsibility who will admit to using the grey market is difficult, although one IT manager confided anonymously: Most of our procurement has to go through a centralised process. However, some stand-alone projects are bought on an ad-hoc basis and thats when buying on the cheap becomes a viable option. But why is any of this stuff priced so much higher in the UK in the first place? Almost all the major manufacturers operate different pricing policies in different countries, but few can explain why the UK gets clobbered quite so comprehensively. As far as Microsoft is concerned, Gregory says: The majority of software originates from the US and there are certain unavoidable costs incurred when taking that software into other territories local support services, language support, translating documentation and so on. Not to mention currency fluctuations. But with the worlds foremost software vendor moving toward shipping single every-language versions of its products, this position is set to become obsolete. On the hardware front, the worlds number one in PCs, Compaq, also varies prices between the countries that it sells to. David Petts, Compaq UK commercial unit business manager, explains: Local pricing exists because different markets have different patterns of economic behaviour. In Europe, Compaq prices are set by the companys European HQ in Munich, and individual countries are then able to fix their own prices within a given range. So, if one were to charge at the top end of the range and another charged at the lower end, you could, in theory, see material price differences, he says. Why the UK is hit hardest by these price differentials is obviously a difficult subject for manufacturers to discuss candidly. One source within a major hardware company begrudgingly admits: Lots of things are cheaper in the US and Japan. Its the way of the world people just need to face up to it. So, there you have it put up and shut up. If you dont put up, and instead succumb to the grey market, your warranties wont work. However, there are ways to get around the warranty issue. In the case of Compaq, any warranty in operation in the UK will also cover the rest of Europe and vice-versa. You can buy Compaq kit in Holland, for example, and not have to worry about your warranty. ProSources Almond explains that it is important to keep geography in mind when venturing into the grey market. Manufacturers will claim warranties are not valid, but under EC law there is nothing to stop you buying things from any other EC country. If we have a customer that is very sensitive about maintaining the warranties, well be careful to only buy from within the right region, he says. In the case of IBM, things are even more straightforward: good old Big Blue offers global support on all its products, so it doesnt matter if you bought your ThinkPad in Durban but you live in Doncaster. A long-standing champion of the grey market is Cirencester-based RBR Networks, Ciscos largest European distribution partner. Before getting its Cisco accreditation in October 1997, RBR was something of a thorn in Ciscos side. It was doing so much business in grey-market Cisco product that in the end the company had to be brought into the fold. RBR marketing director, Jos White, takes a fairly pragmatic view of the subject. He does, however, prefer the term second sourcing to grey market he believes it doesnt sound so grubby. Using second sourcing, we could make a healthy margin and still sell cheaper than most of the competition, says White. It has to be up to the manufacturer to make it worth everyones while to use the authorised channels, he adds. Manufacturers cannot simply try and ban this sort of thing and it is definitely not on for them to throw their weight around, threatening everyone by saying that their licences are invalid and they may be breaking the law. It comes as no surprise that a manufacturer such as Compaq is against the use of the grey market. It has nothing to