The Framework Of The Arrow Debreu Model Finance Essay - Free Essay Example

Sample details Pages: 12 Words: 3605 Downloads: 8 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? The Arrow-Debreu Model, also referred to as the Arrow-Debreu-McKenzie model is often used as a general reference for other microeconomic models. It was named after Kenneth Arrow, Gerard Debreu and Lionel W. McKenzie. Don’t waste time! Our writers will create an original "The Framework Of The Arrow Debreu Model Finance Essay" essay for you Create order When compared to prior models, the Arrow-Debreu Model radically generalized the notion of a commodity, differentiating them by time and place of delivery. Hence, for instance, rice in India in July and rice in Bangladesh in September are regarded as different commodities. The Arrow-Debreu Model usually applies to economies with complete markets, in which there exists a market for every time period and forward prices for all commodity at all times and in all places. The Arrow-Debreu Model states that aggregate supplies will equal aggregate demand for every commodity in the economy, should the following assumptions be made: Convexity is the measure of the curvature in the relationship between price and interest. It is often used as a risk management tool to help measure and manage the amount of market risk to which a portfolio may be exposed to. The relationship between the price and the yield is generally inversely correlated, meaning that when the price of the product is hig h, it yields lower interest rates. Perfect Competition In economic theory, perfect competition is achieved when there are no participants large enough to have the market power to set the price of a homogeneous product; this is as defined by Roberts, J. (1987). We understand that every participant in the market is a price taker and there are no partial influences on the price of the product, the price is determined solely on the demand and supply of the product. This demand and supply is determined by the forces of the market. Although there are very few perfectly competitive markets, if any, out there, some buyers and sellers in some auction type markets satisfy the concept. Demand Independence This means that the demand for the product is independent of any conditional factors in the market. For instance, the demand is not conditional to the supply of another product or even any seasonal changes. The Arrow-Debreu Model is a central model in the General Equilibrium Th eory. This theory studies the supply and demand fundamentals in an economy, with the objective of proving that all prices are at equilibrium. Developed by economist Leon Walras, this theory studies a theoretical economic system in which all consumers are utility maximizers and firms are perfectly competitive. The model further goes on to prove that such a stable, unique equilibrium can exist under these conditions. (https://www.economyprofessor.com/economictheories/general-equilibrium-theory.php) Mainly, the ADM is built on two distinct assumptions: Equilibrium of competitive nature is possible on the condition that everyone in the economy should have at least some amount of every kind of available goods in their holdings. Secondly, there is a huge amount of labour resources available in the market that can be utilized for producing the required commodities and services. In the field of financial economics, Arrow Debreu represents a certain kind of securities product. The Arro w-Debreu security is a distinguished concept that is very helpful for understanding the analysis of the derivatives. By using this particular model, one can easily understand the activities like pricing and hedging that are also related to the derivative analysis. On the other hand, the Arrow-Debreu Model is also used in areas like financial engineering and many more. Although the theory was criticized by various eminent economists, but the truth is that the Arrow-Debreu Model is very important for the derivative industry and helps the industry to grow at a rapid pace. At present, Basis Instrument Contracts, a kind of derivative contract, is becoming very popular. This concept is tractable enough and is providing the Black Scholes analysis a new dimension. At the same time, the Basis Instrument Contracts is also applying the analysis of Black Scholes in different markets. Basis Instrument Contracts is playing a major role in popularizing the Arrow-Debreu security. FRAMEWORK OF THE ARROW-DEBREU MODEL In order to understand fully the mathematical structure of the Arrow-Debreu Model, we explore in more details the Arrow-Debreu securities and the Basic Instrument Contract in order to understand how the model applies in reality. Arrow-Debreu Securities Arrow-Debreu securities are assets that payoff in a specific state of nature at a certain time (LeBaron, 2005). They are useful building blocks to think about other assets even though they do not exist in reality. In order to understand these securities, we look into the following example: Let us assume that S is the set of all states that the world can be in tomorrow. Hence, for each s in S, there is a corresponding Arrow-Debreu security that pays off 1 if s happens, or otherwise 0 is paid. For instance, if s could be; Sunny tomorrow and No rain and S1 is at $4 and S2 at $5 and then if s happens then you will receive $4. Although this is not practical for a large number of securities, it is possible to apply this to a limited number. Suppose Adam wants to receive: State 1- $6, State 2- $8 and in State 3- $25. All Adam needs to do is buy 6 Arrow-Debreu securities for state 1, 8 for state 3 and 25 for state 3. With Arrow-Debreu securities we can replicate this stock to buil d a portfolio. Furthermore, with arbitrage principles we know that the price of any two things paying the same amount in every state should be the same (LeBaron, 2005). This would lead the price of the stock to be the same as the price of the Arrow-Debreu. Basic Instrument Contract (BICs) The basic instrument contract is an important contract when analysing financial derivatives. It is a form of representative derivative contract that helps the derivatives to be replicated in a static manner (https://finance.mapsofworld.com/finance-theory/concepts/basis-instrument-contract.html). This can be done in a market where there are many periods of trading. In order to make the definition more comprehensible, we need to first stress on the characteristics of BICs (https://knol.google.com/k/introduction-to-basis-instruments-contracts-bics-for-mathematics-finance-and#Defining_BICs): A BIC involves and identifies two parties; one or more buyers (named B) and one or more sellers (named A) The definition of each contract comprises of three dates; firstly, the contract agreement date- the date at which the binding rights and obligations are agreed upon. Secondly, the premium payment date [t (i)] the date at which B complies with his part of the agreement by paying seller A an amount of units (known as premium of contract). Thirdly, the contract expiry date- the payout payment date [t(j)] at which the seller A pays the buyer an amount in units of basis currency The agreements on the hedging BICs would have been contracted before the lapse of liquidity; this would ensure that there is no risk that the position cannot dynamically hedge. Furthermore, a BICs market would help structurally mitigate market volatility in market and reduce transaction costs because hedging activity is substantially reduced to the settlement of agreements contracted beforehand. Hence we can see here that BICs generally uphold the concept of the Arrow-Debreu model with a greater degree of realism. Trading BICs will allow agents to be involved with the Arrow-Debreu model. This is because both of them are involved with only two possible outcomes, you either receive money or you dont and also both of them do not allow for riskless arbitrage modelling. SHORTCOMINGS OF THE MODEL It has become rather passà © to criticize the Arrow-Debreu model on empirical grounds, i.e. by showing how the results are not robust under certain small relaxations of idealized assumptions. At every turn, the ADM assumes some unrealistic assumption in order to realize the logical structure of the model. Non-Convexities Radner (1968) extended the Arrow-Debreu model to include agents with differing information about the economy. He found that when information to the environment, the Arrow-Debreu contingent claims equilibrium can achieve an optimum. This is relative to a given structure of information. However, as Radner points out, if the agent receives information about the trading behaviour of other market participants, than externalities arise. These externalities often distort preferences or may proceed to diminish the optimality of the competitive equilibrium. It is particularly important to note that the set-up cost of gathering information (may be independent of the scale of production) can introduce non-convexity into the production possibility set. As we know that non-convexities violate the basic assumption of Arrow-Debreu model. Uncertainty about Market Prices Another issue arising from the Arrow-Debreu model is the concern of whether ex ante optimally or ex post optimality was the appropriate measure of efficiency. When regarding practicality, Arrows optimum is a normative dead end. Given Arrows claim on optimal distribution and supposing the occurrence of some event, Guth (2007) asked whether in the even to f the distribution of real goods resulting from the given distribution of contingent claims is a Pareto optimal distribution of real goods. Starr (1973) claims that for the pure exchange economy, the Arrow-Debreu equilibrium will be ex Post Pareto optimal. A Pareto optimal outcome is such that no-one can be better without making someone else worse off (https://moneyterms.co.uk/pareto-optimal/). This is only possible if all the market participants assign the same probability value to the given state (s) occurring. In this context, Starr refers to this property as universally similar beliefs. Hence, this means that the uncertainty and information about the environment and the behaviour of other market participants, proves that the Arrow- Debreu model has some shortcomings as one of its main assumptions is that the price is certain. CONCLUSION AND FUTURE IMPLICATIONS This paper attempts to explore the theoretical framework of the Arrow-Debreu model. The model imposes the limitations of (1) assuming that locational choices are made in the context of a capitalist economy and (2) excluding governmental or more generally, collective action. Within the framework of the model, it has been procured that general equilibrium among market participants and factors can exists, when the implications are put into practice. The Arrow-Debreu model is one that is based on a set of assumptions that is rather difficult to find in todays world. Formulated into a purely mathematical form, the Arrow-Debreu model can be easily modifies into spatial models with proper definitions of the commodities based on the commoditys location or time of delivery. Furthermore, when commodities are specified to be conditional on various states of the world, the model can be easily incorporated with expectations and uncertainties. This model has been subject to criticism that many of the assumptions it makes does not fit in the real economy. However it is important to note that the criticism is not unique to the Arrow-Debreu model but rather it applies to all general equilibrium models. There are many ways of improving the already proven flaw of the Arrow Debreu Model. One such way is provided by Radner. Radner (1985) in his work explains that the deficiency of Arrow-Debreu theory as inadequate treatment of money, the stock market, and active markets at every date can be improved for better results. In order to correct these deficiencies, he explains that for future extensions of the Arrow-Debreu model should include; Uncertainty about future prices as well as uncertainties about the environment A method for producers to compare net revenues at different dats and across states of the world Consumers facing a sequence of budget constraints over time, rather than the single present net worth budget constraint of the Arrow-Debreu model. Specu lation in future markets by storage, hedging, etc. Agents attempt to forecast future prices based on information about the environment and other market participants behaviour up until that point in time. Through these changes, we will be able to see a more real-life implication of the ADM, thus giving us more insight to the model. The model is one that, although correct from where it stands, is not able to be emulated to fit the practices of the real economy as of today. The assumptions, on which the Arrow-Debreu model is based, are very rare to find, for instance, a perfectly competitive market is rather impractical in todays reality. Hence, we are in need for more economists to work on the Arrow-Debreu model to modify it to suit reality as it is today. Risk Neutral Valuation/Pricing In finance we can estimate a real options value by using either Risk neutral valuation approach or Binomial/decision trees. Risk Neutral Valuation is a straight forward and essential in option pricing theory. The principle states that we can with complete impunity assume the world is risk neutral when pricing option (Hull, 2006). The resulting prices are correct not just in a risk neutral world, but in other worlds as well. For example: let us illustrate that risk neutral valuation gives the same answer as no arbitrage arguments. Suppose the stock price is currently $30 and will move either up to $32 or down to $28 at the end of 3 months. The option considered is a European call option with a strike price of $31 and an expiration date in 3 months. The risk-free interest rate is 12% per annum. Let us define p as the probability of an upward movement in the stock price in a risk-neutral world. We can argue that the expected return on the stock in a risk neutral world must be the r isk free rate of 12%. This means that p must satisfy 32p+ 28(1-p) = 30e0.12*3/12 or 4p= 30e0.12*3/12- 28. That is, p must be 0.6523. At the end of the 3 months, the call option has a 0.6523 probability of being worth 1 and a 0.3477 probability of being worth zero. Its expected value is therefore 0.6523*1 + 0.3477*0= 0.6523. In a risk neutral world this should be discounted at the risk free rate. The value of the option today is therefore 0.6523e-0.12*3/12 or $0.633. This is the same as the value obtained earlier, demonstrating that no arbitrage arguments and risk neutral valuation give the same answer. If we put it in a two step tree diagram: 34.2 32 30 29.8 28 26.2 It should be emphasized that p is the probability of an up movement in a risk neutral world. In general this is not the same as the probability of an up movement in the real world. In our example p= 0.6523. When the probability of an up movement is 0.6523, the expected return on both the stock and th e option is the risk free rate of 12%. Suppose that, in the real world, the expected return on the stock is 16% and p* is the probability of an up movement. It follows that 32p*+ 28(1-p*) = 30e0.16*3/12 so that p* = 0.7041. The expected payoff from the option in the real world is then given by p* x 1 + (1-p*) x 0. This is 0.7041. Unfortunately it is not easy to know the correct discount rate to apply to the expected payoff in the real world. A position in a call option is riskier than a position in the stock. As a result the discount rate to be applied to the payoff from a call option is greater than 16%. Without knowing the options value, we do not know how much greater than 16% it should be. Using risk neutral valuation is convenient because we know that in a risk neutral world the expected return on all assets (and therefore the discount rate to use for all expected payoffs) is the risk free rate. Besides having a connection with the binomial model, risk neutral valuation also arises from one key property of the Black Scholes Merton differential equation. This property is that the equation does not involve any variables that are affected by the risk preferences of investors. The variables that do appear in the equation are the current stock price, time, stock price volatility and the risk free rate of interest. All are independent of risk preferences. The Black Scholes Merton differential equation would not be independent of risk preferences if it involved the expected return,  µ, on the stock. This is because the value of  µ does depend on risk preferences. The higher the level of risk aversion by investor, the higher  µ will be for any given stock. It is fortunate that  µ happens to drop out in the derivation of the differential equation. Because the Black Scholes Merton differential equation is independent of risk preferences, an in In some case there is an existing model for a financial option that corresponds to the real option in question. Sometimes, however there is not such a model and financial engineering techniques must be used. Many financial engineering methods are very complex and are more suitable to be explained in an advanced finance course. On the other hand, Risk Neutral valuation is one of the methods which are reasonably easy to implement with simulation analysis. It is also similar to the certainty equivalent method in that a risky variable is replaced with one that can be discounted at the risk free rate. For example: Cordova Software, which produced antivirus software, is considering a project with uncertain future cash flows. Discounting these cash flows at a 14% cost of capital gives a present value of $51.08 million. The cost of the project is $50 million, so it has an expected NPV of $1.08 million. Given the uncertain market demand for the software, the resulting NPV could be much higher or much lower. However Cordova has certain software licenses that allow it to defer the project for a year. If it waits, it will learn more about the demand for the software and will implement the project only if the value of those future cash flows is greater than the cost of $50 million. If in case, the present value of the projects future cash flow is $44.80 million, excluding the $50 million cost of implementing the project. We expect this value to grow at a rate of 14%, which is the cost of capital for this type of project. However we know that the rate of growth is very uncertain and could either be much higher or lower than 14%. Lets assume that the variance of the growth rate is 20%. Given a starting value ($44.80), a growth rate (14%) and a variance of the growth rate (20%), option pricing techniques assume that the resulting value at a future date comes from a lognormal distribution. Because we know the distribution of future values, we could use simulation to repeatedly draw a random variable from that lognormal distribution. For example, suppose w e simulate a future value at Year 1 for the project and it is $75 million. Since this is above $50 million cost, we would implement the project in this random draw of the simulation. The payoff is $25 million, and we could find the present value of the payoff if we knew the appropriate discount rate. We could then draw a new random variable and simulate a new value at Year 1. Suppose the new value is $44 million. In this draw of the simulation, we would not implement the project, and the payoff is $0. We could repeat this process many thousands of times and then take the average of all the resulting present values, which is our estimate of the value of the option to implement the project in one year. Unfortunately we do not know the appropriate discount rate. Therefore, we turn to risk neutral valuation. Instead of assuming that the projects value grows at the risk free rate of 6%. Growing at 6% rate instead of a 14% rate would reduce the resulting project value at Year 1, the time we must exercise the option. For example, suppose our first simulation run produces a $55 project value, based on the $44.8 starting value, a 20% variance of the growth rate, and a 6% growth rate instead of the true 14% growth rate. The payoff is only $5 ($55-$50). However, we now discount the $5 payoff at the risk free rate to find its present value. Note that this procedure is analogous to the certainty equivalent approach in which we reduce the value of the risky future cash flow but then discount at the risk free rate. We can repeat the simulation many times, finding the present value of the payoff when discounted at the risk free rate. The average present value of all the outcomes from the simulation is the estimate of the simulation is the estimate of the real options value. We used the risk neutral approach to simulate the value was $7.19 million. With 200,000 simulations, the average value was $6.97 million. Besides using the simulation analysis method, we can also use th e probabilistic methods in estimates real options value. However, the main difficulty in intuitively grasping the risk neutral valuation concept arises from the fact that the probabilistic methods and tools used were not primarily developed from a financial pricing perspective (Cox, 1985). This results in the use of two different languages, one from economics and the other from mathematics, which can easily be confusing. From the economists view, risk-neutral probabilities are state prices compounded with the risk free rate. One can always use this translation in order to make economic sense when using the tools from probability theory. It should be mentioned that the risk neutral probability concept is only useful for arbitrage-free pricing. An arbitrage-free price is not necessarily a fair price, or the correct price; it is only a market consistent price. Moreover there are two general conclusions, first, if a market participant was buying (selling) a redundant asset above (below) its arbitrage-free price, then we can say that there would be a more efficient way for this market participant to express his view, namely via the replication strategy; secondly, if a market participant was buying (selling) the underlying asset of a redundant security, where the redundant security trades below (above) its arbitrage-free price, then there would be a more efficient way for this market participant to express his view, again via the replication strategy.

Essay about The Violence of Christopher Marlowes The Jew...

The Violence of Christopher Marlowes The Jew of Malta Christopher Marlowes The Jew of Malta is a violent, bloody, destructive play that literally jars the senses. Part of this is due to the modern readers background: we see the characters through modern eyes, with distinct views of low class and high class. It would be easy, as such, to discount The Jew of Malta as only appealing to the base interests of its time, and it would be only slightly less easy to protest that it has meaning beyond any crude first glance, and that the extreme acts presented are merely metaphors for deeper social commentary. Steane writes: There is a general feeling that this is a play of distinctive character, and an†¦show more content†¦As a true black-hat villain (almost mentally complete with greasy mustache and cape, tying poor Abigail to the railroad tracks of his house-cum-abbey), Barabas has no superior, only flunkies and enemies. And, like a true villain, he casts off the first patsy, Abigail, at the traditional moment, when shes about to betray him, for the second, Ithamore, who, also following tradition, after aiding him, turns traitor. Of course, the fact that Ithamore double-crosses Barabas is not surprising. Even though the story leads you to believe that Barabas will get his comeuppance, the main proof of Ithamores inferiority is in his introduction: he brags openly about how evil he is, violating the first rule of the truly wicked (much like the first rule of cool), that if you have to prove it, its not true (II.iii.204-214). While Barabas has already proved his evil and can t herefore talk of his crimes, the unknown Ithamore has to convince the audience of his lowliness by listing his crimes, and so he is doomed to fall prey to Bellamiras lusty wiles before becoming just another notch on Barabas belt of vengeance. Barabas continues making alliances, being betrayed, and exacting revenge on his betrayers, proving true the axiom the enemy of my enemy is myShow MoreRelatedElizabethan Era11072 Words   |  45 Pagesits language with a literary charm. |Christopher Marlowe (1564-1593) | |His LIFE -- His WORKS | | | While Lyly was creating an artistic tradition in realms of comedy, an even more impressive service was rendered to tragedy by another writer of greater poetic genius. Born only two months before Shakespeare, and dying before he had completed his thirtieth year, Christopher Marlowe (1564-93), the first English tragicRead Moreâ€Å"the Spirit of Renaissance and Elizabethan Era†5448 Words   |  22 Pagesdemonstrated an increased interest in understanding English Christian beliefs, such as the allegorical representation of the Tudor Dynasty in The Faerie Queen and the retelling of mankind’s fall from paradise in Paradise Lost; playwrights, such as Christopher Marlowe and William Shakespeare, composed theatrical representations of the English take on life, death, and history. Nearing the end of the Tudor Dynasty, philosophers like Sir Thomas More and Sir Francis Bacon published their own ideas about humanity

Pricing Strategies Free Essays

Penetration Pricing Price set to ‘penetrate the market’ ‘Low’ price to secure high volumes Typical in mass market products – chocolate bars, food stuffs, household goods, etc. Suitable for products with long anticipated life cycles May be useful if launching into a new market Market Skimming High price, Low volumes Skim the profit from the market Suitable for products that have short life cycles or which will face competition at some point in the future (e.g. We will write a custom essay sample on Pricing Strategies or any similar topic only for you Order Now after a patent runs out) Examples include: Playstation, jewellery, digital technology, new DVDs, etc. Value Pricing Price set in accordance with customer perceptions about the value of the product/service Examples include status products/exclusive products Loss Leader Goods/services deliberately sold below cost to encourage sales elsewhere Typical in supermarkets, e.g. at Christmas, selling bottles of gin at  £3 in the hope that people will be attracted to the store and buy other things Purchases of other items more than covers ‘loss’ on item sold e.g. ‘Free’ mobile phone when taking on contract package Psychological Pricing Used to play on consumer perceptions Classic example –  £9.99 instead of  £10.99! Links with value pricing – high value goods priced according to what consumers THINK should be the price Going Rate (Price Leadership) In case of price leader, rivals have difficulty in competing on price – too high and they lose market share, too low and the price leader would match price and force smaller rival out of market May follow pricing leads of rivals especially where those rivals have a clear dominance of market share Where competition is limited, ‘going rate’ pricing may be applicable – banks, petrol, supermarkets, electrical goods – find very similar prices in all outlets Tender Pricing Many contracts awarded on a tender basis Firm (or firms) submit their price for carrying out the work Purchaser then chooses which represents best value Mostly done in secret Price Discrimination Charging a different price for the same good/service in different markets Requires each market to be impenetrable Requires different price elasticity of demand in each market Destroyer/Predatory Pricing Deliberate price cutting or offer of ‘free gifts/products’ to force rivals (normally smaller and weaker) out of business or prevent new entrants Anti-competitive and illegal if it can be proved Absorption/Full Cost Pricing Full Cost Pricing – attempting to set price to cover both fixed and variable costs Absorption Cost Pricing – Price set to ‘absorb’ some of the fixed costs of production Marginal Cost Pricing Marginal cost – the cost of producing ONE extra or ONE fewer item of production MC pricing – allows flexibility Particularly relevant in transport where fixed costs may be relatively high Allows variable pricing structure – e.g. on a flight from London to New York – providing the cost of the extra passenger is covered, the price could be  varied a good deal to attract customers and fill the aircraft Contribution Pricing Contribution = Selling Price – Variable (direct costs) Prices set to ensure coverage of variable costs and a ‘contribution’ to the fixed costs Similar in principle to marginal cost pricing Break-even analysis might be useful in such circumstances Target Pricing Setting price to ‘target’ a specified profit level Estimates of the cost and potential revenue at different prices, and thus the break-even have to be made, to determine the mark-up Mark-up = Profit/Cost x 100 Cost-Plus Pricing Calculation of the average cost (AC) plus a mark up AC = Total Cost/Output Influence of Elasticity Any pricing decision must be mindful of the impact of price elasticity The degree of price elasticity impacts on the level of sales and hence revenue Elasticity focuses on proportionate (percentage) changes PED = % Change in Quantity demanded/% Change in Price Price Inelastic: % change in Q % change in P e.g. a 5% increase in price would be met by a fall in sales of something less than 5% Revenue would rise A 7% reduction in price would lead to a rise in sales of something less than 7% Revenue would fall Price Elastic: % change in quantity demanded % change in price e.g. A 4% rise in price would lead to sales falling by something more than 4% Revenue would fall A 9% fall in price would lead to a rise in sales of something more than 9% Revenue would rise How to cite Pricing Strategies, Papers

Wto Summary Essay Example For Students

Wto Summary Essay The courage and dedication that was displayed by the protestors in the video was what I took to heart. It was something else to see a group of people come together to protest something that they believed so strongly despite being pepper sprayed, shot at with rubber bullets, and thrown into jail†¦..But why would anyone go to these lengths to protest against an organization?The World Trade Organization was created in Jan. 1 1995 and has 140 member countries. According to their official website www.wto.org the organizations main purpose is to, â€Å"help trade flow as freely as possible-so long as there are no undesirable side-effects. This partly means removing obstacles.† However the organization isn’t a democratic organization. Instead the WTO rules are written by and for corporations with inside access to the negotiations. Citizen input by consumer, environmental, human rights and labor organizations is consistently ignored as WTO meetings are held in secret. Acco rding to the video, out of the 100 largest economies in the world, 51 are corporations and only 49 are countries. As a result it is no wonder why so many came to protest this secret meeting held in Seattle, WA. According to the video many protestors argued that the WTO and its motto of free world trade is stomping over labor and human rights in countries throughout the world as the use of cheap labor and child labor are continually ignored by the WTO. The magazine Global Exchange states that the WTO is blocking human rights abuses since they have ruled that, â€Å"1) It is illegal for a government to ban a product base on the way it is produced and 2) Governments cannot take into account the behavior of companies that do business with vicious dictatorships such as Burma.†The protestors in the video also felt that the WTO was destroying the environment. Evidence of this, dates back to 1993 when according to the Global Exchange , â€Å"The very first WTO panel ruled that a regulation of the US Clean Air Act, which required both domestic and foreign producers alike to produce cleaner gasoline, was illegal. Recently, the WTO declared illegal a provision of the Endangered Species Act tha t requires shrimp in the US to be caught with an inexpensive device that allows endangered sea turtles to escape, and the WTO is currently negotiating an agreement that would eliminate tariffs on wood products, which would increase the demand for timber and escalate deforestation. As a result I believe that these corporations should not be allowed to continue to get away with such actions. The people in Seattle honored their legal right to assemble. The actions taken by the city of Seattle against these protestors were too extreme and I’m still unclear for what reason they took such extreme measures against the protestors. These were peaceful protests and the city freaked out over a few broken windows at corporations such as Starbucks and Nike. In my point of view the steps taken by the city of Seattle was way over the line and its disgusts me that peaceful protestors were thrown into jail for demonstrating a legal right in the constitution. Social Issues

An Overview of the Sunbelt in the U.S.

An Overview of the Sunbelt in the U.S. The Sun Belt is the region in the United States that stretches across the Southern and Southwestern portions of the country from Florida to California. The Sunbelt typically includes the states of Florida, Georgia, South Carolina, Alabama, Mississippi, Louisiana, Texas, New Mexico, Arizona, Nevada, and California. Major U.S. cities placed within the Sun Belt according to every definition include Atlanta, Dallas, Houston, Las Vegas, Los Angeles, Miami, New Orleans, Orlando, and Phoenix. However, some extend the definition of Sun Belt as far north as the cities Denver, Raleigh-Durham, Memphis, Salt Lake City, and San Francisco. Throughout U.S. history, especially after World War II, the Sun Belt saw abundant population growth in these cities as well as many others and has been an important area socially, politically, and economically. History of Sun Belt Growth The term Sun Belt is said to have been coined in 1969 by writer and political analyst Kevin Phillips in his book The Emerging Republican Majority to describe the area of the U.S. that encompassed the region from Florida to California and included industries like oil, military, and aerospace but also many retirement communities. Following Phillips introduction of the term, it became widely used in the 1970s and beyond. Although the term Sun Belt was not used until 1969, growth had been occurring in the southern U.S. since World War II. This is because, at the time, many military manufacturing jobs were moving from the Northeast U.S. (the region known as the Rust Belt) to the South and the West. Growth in the South and West then further continued after the war and later grew substantially near the U.S./Mexico border in the late 1960s when Mexican and other Latin American immigrants began to move north. In the 1970s, Sun Belt became the official term to describe the area and growth continued even further as the U.S. South and West became more important economically than the Northeast. Part of the regions growth was a direct result of increasing agriculture and the earlier green revolution which introduced new farming technologies. In addition, because of the prevalence of agriculture and related jobs in the region, immigration in the area continued to grow as immigrants from neighboring Mexico and other areas were looking for jobs in the U.S. On top of immigration from areas outside the U.S., the Sun Belts population also grew via migration from other parts of the U.S. in the 1970s. This was due to the invention of affordable and effective air conditioning. It additionally involved the movement of retirees from Northern states to the South, especially Florida and Arizona. Air conditioning played an especially significant role in the growth of many Southern cities like those in Arizona where temperatures can sometimes exceed 100 F (37 C). For example, the average temperature in July in Phoenix, Arizona is 90 F (32 C), while it is just over 70 F (21 C) in Minneapolis, Minnesota. Milder winters in the Sun Belt also made the region attractive to retirees as much of it is relatively comfortable year-round and it allows them to escape cold winters. In Minneapolis, the average temperature in January is just over 10 F (-12 C) while in Phoenix it is 55 F (12 C). Additionally, new types of businesses and industries like aerospace, defense and military, and oil moved from the North to the Sun Belt as the region was cheaper and there were fewer labor unions. This further added to the Sun Belts growth and importance economically. Oil, for example, helped Texas grow economically, while military installations drew people, defense industries, and aerospace firms to the desert Southwest and California, and favorable weather led to increased tourism in places like Southern California, Las Vegas, and Florida. By 1990, Sun Belt cities like Los Angeles, San Diego, Phoenix, Dallas, and San Antonio were among the ten largest in the U.S. In addition, because of the Sun Belts relatively high proportion of immigrants in its population, its overall birth rate was higher than the rest of the U.S. Despite this growth, however, the Sun Belt did experience its share of problems in the 1980s and 1990s. For example, the regions economic prosperity has been uneven and at one point 23 out of the 25 largest metropolitan regions with the lowest per capita incomes in the U.S. were in the Sun Belt. In addition, the rapid growth in places like Los Angeles caused various environmental problems, one of the most significant of which was and still is air pollution. The Sun Belt Today Today, growth in the Sun Belt has slowed, but its larger cities still remain as some of the largest and fastest-growing in the U.S. Nevada, for example, is among the nations fastest-growing states due to its high immigration. Between 1990 and 2008, the states population increased by a whopping 216% (from 1,201,833 in 1990 to 2,600,167 in 2008). Also seeing dramatic growth, Arizona saw a population increase of 177% and Utah grew by 159% between 1990 and 2008. The San Francisco Bay Area in California with the major cities of San Francisco, Oakland and San Jose still also remains a growing area, while growth in outlying areas like Nevada has decreased significantly due to nationwide economic problems. With this decrease in growth and outmigration, housing prices in cities like Las Vegas have plummeted in recent years. Despite recent economic problems, the U.S. South and West (the areas that comprise the Sun Belt) still remain the fastest growing regions in the country. Between 2000 and 2008, the number one fastest growing area, the West, saw a population change of 12.1% while the second, the South, saw a change of 11.5%, making the Sun Belt still, as it has been since the 1960s, one of the most important growth regions in the U.S.

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buy custom IT Governance essay How does the description of IT governance mechanisms in Public Sector organizations in Australia differ from those presented by Weill and Ross (2004)? IT governance mechanisms in Public Sector organizations in Australia describes the importance of the principles, as well as, lessons of good corporate governance being replicated in the individual IT governance mechanisms laid down for the institution (Ali and Green, 2007). These mechanisms encourage a set of behavior, which encourages behavior that goes hand in hand with the companys mission, values, strategy, and norms (Ali and Green, 2007). On the other hand, Weill and Ross determine that, managers should focus in designing, implementing, and communicating the IT governance processes (Weill Ross, 2005). Furthermore, IT governance incorporates five important decision domains: infrastructure, investment decisions, prioritization, IT principles, infrastructure and business application needs (Weill Ross, 2005). IT governance mechanisms in Public Sector organizations in Australia, cautions the implementation of the above mechanisms; the nature of organizations is essential in showing how effective mechanisms are (Ali and Green, 2007). However, Weill and Ross explain six archetypal approaches applied in IT governance: IT monarchy, business monarchy, feudal, federal, duopoly, and anarchy (Weill Ross, 2005). The two recommend guidance in effective IT governance design. One needs to identify the companys needs for autonomy and synergy, establish the role played by organization structure, pick the desirable IT-related behaviors, and then design IT governance on a single page (Weill Ross, 2005). How does the description of IT governance mechanisms in Public Sector organizations in Australia differ from the claims of the case study material from the COBIT site: Solo Cup Uses COBIT to Develop IT Policies? IT governance mechanisms in Public Sector organizations in Australia describes the importance of the principles, as well as, lessons of good corporate governance being replicated in the individual IT governance mechanisms laid down for the institution (Ali and Green, 2007). These mechanisms encourage a set of behavior, which encourages behavior that goes hand in hand with the companys mission, values, strategy, and norms (Ali and Green, 2007). On the other hand, COBIT stipulates an effective set of guidelines that make sure IT policies show enough coverage of common control objectives. These guidelines also identify control gaps. The control elements have the correct content, depth, as well as breadth that would ensure compliance with the control objective put down by COBIT. IT governance mechanisms in Public Sector organizations in Australia, cautions the implementation of the above mechanisms; the nature of organizations is essential in showing how effective mechanisms are. In its part, the COBIT framework narrowed the process of coming up with a comprehensive set of the policies. Without COBIT, time and energy would have been wasted. Buy custom IT Governance essay

Changing Dialect of Singapore Essay Example | Topics and Well Written Essays - 1500 words

Changing Dialect of Singapore - Essay Example Tan has made it a point to continue to work with the original language of Singapore to keep the memory of the past alive and to embrace the past through the use of speaking. Tan has made an effort with the younger generations to continue to speak in the main language of Malay. â€Å"If we lose our culture through language, then what do we have left? I believe it is important to continue to remember what we speak, where we are from and what the ancient history is of this land,† says Tan. To him, the idea of keeping the language alive is also a part of keeping the memories and heritage and of his world as a part of the everyday lifestyle. For Tan’s children and grand children, understanding the language isn’t one that they rebel against and often find that the extra dialect helps them to stay ahead in their own thinking. â€Å"Even though we learn English in school, we like having the Malay dialect as a part of our upbringing. It makes us feel unique and like we a re truly from Singapore,† says Tan’s grandchild. This attitude is one that many who are able to speak in two dialects carry with them as they progress forward with the understanding of different dialects. The languages of Singapore have undergone changes through every generation, even though they are kept alive through stories such as Tan. English is now recognized as the main language of the land, specifically because of the colonialization that took place in the 1820s by James Cook. However, there is also an influence of Mandarin, Chinese and Indian dialects, all which have come from the several who have migrated to Singapore through time. This is combined with the main dialect of Malay which is spoken by those who are considered as native to the land. The mixture of languages has led to the four main dialects of English, Malay, Chinese and Tamil becoming the main dialects of the island. It is not only the recognition of the four main dialects that influences the dive rsity of Singapore. While it is a small island, the influx of immigration into the land and the philosophies, such as what Tan has, continue to alter the dialects which are spoken in various regions. For instance, the recognition of Mandarin Chinese as a dialect is only one of several ethnic ways of speaking that are in the region. When visiting Singapore, you will note that Hokkien, Teochew, Hakka, Hainanese and Cantonese are also spoken among households. No more than 10 -20% speak these languages and most is recognized in the home; however, the strong traditions keep the dialects such as these strong and alive (Chan, 2009). The alterations of dialect have also led to a creation of mixtures of each of the languages. A combination of English and Malay, for instance, is commonly heard among locals when they are working to converse among others who know more English. This is a common practice of those in the region, specifically with older generations who have not been educated with t he formal applications of English in the nation. The split of languages is known to have occurred specifically with waves of immigration which occurred from the 1800s. The beginning of the Malays and the structure of Singapore as a country was one which was noted as the dominant culture through this time. Ancient beliefs were kept during this time as well as patterns for economic trade and village life. While there were some fluctuations in Arabic and immigrants from other lands, most adapted to the Malay traditions and way of living. It was from the 1800s –