Saturday, August 31, 2019

Site Layout Planning Ealing W5 5rf

Real Site Layout Map Site Layout Briefing It is important to maintain a high standard of duty, facility, resource management, in accordance to the Health and Safety & CDM Regulations, in order to convey a better atmosphere for all members of staff and workers. The following will analyse all aspects of our Construction Management Project Plans, to ensure how we will create a satisfying duty of care to all members of the construction team working for the UWL Student Accommodation Project 2012/2013. Site LocationUniversity Of West London, Park Road Via St Marys Road, Ealing, W5 5RF. The new building will be constructed on an unused field area, and car park, belonging to the university. The construction site is bounded by protected trees, at the south side of the building, parallel to a public building (YMCA), and the boundary on the west and north side of the building, which leads to the main and side road. The projected building will be built within the white box on the Real Site Layou t diagram, and Blue of the Map Site Layout diagram. Site Setup and LogisticsIn order to meet the CDM and Health and Safety obligations, it will be necessary to afford a fully functional and compliant temporary site accommodation arrangement as part of the site setup. Prior to commencement on site, the site setup will include perimeter site hoarding equipped with appropriate safety and way-finding signage, lighting installations, and set of gates for vehicle entrance. The perimeter safety segregation system (I. e. Heras Fencing) is to be erected and equipped with appropriate safety and way-finding signage.Clearly defined access routes will be defined both within the site and the surrounding roads and sites in accordance to the management plans and with particular attention to the segregation of pedestrians, plant and vehicle. The delivery, storage and distribution of materials will form part of this plan. Site Accommodation & Welfare Facilities After having judged the situation at th e site, with the documents of the feasibility report, there isn’t sufficient space to have (as promised), an accommodations site on the premises of the project.The temporary site accommodation will be located in the student car park of the University. The site accommodation will include suitable and sufficient sanitary conveniences. Supply of Water will be available through the water pumps of UWL into the rooms, toilets, sinks†¦ The room will be kept clean and tidy by the occupiers, and will be checked by a warden, so this rule isn’t breached, and is kept in an orderly condition. Adequate supply of drinking water will be put in few places as part of welfare facilities through drinking water fountains, and kitchen facilities.For Health and Safety reasons, water fountains and supply of drinking water will be marked with an appropriate signage, and sufficient number of cups will be provided. Washing Facilities will include: * A supply of clean hot and cold, or warm, water (which shall be running water so far as is reasonably practicable); * Suitable means of cleaning, such as soap, shampoo, and; * Suitable means of drying: towels, hand dryers, blow dryers. Washing Rooms will be ventilated, and given required lighting.They also will have to be kept cleaned and maintained. In order to minimise costs in welfare facilities, instead of having separate washing facilities for men and women, the multiple bathrooms will be individually shared, with an internal lock to prevent others coming in. This is more efficient as the number of males will dominate those of females. The accommodation will acquire changing rooms & lockers and sufficient spacing in these facilities, especially when the workers have to wear special clothing for his/her work and duty.Work may be on-going during rain; hence, facilities for drying areas for clothes, and seating will be set up in the accommodation. Lockers will also be provided near the changing areas in order to keep work uniform, clothes that haven’t been torn during the work and personal belongings safe. Damages to these will be at the occupier’s liability, not the site officer/warden/security/manager. Rooms and Resting areas will be prepared to be satisfying to all users. The rooms will be a hostel style living accommodation for all males, and separate ndividual rooms for females. Within 4 cabins as posted on the site layout, hostel dorm for males will consist of 14 beds, 7 in each cabin, and on cabin with 5 small rooms for ladies. Premises for accommodation will be handed to those living most further away, and to those who operate and work on a 24 hour shift. Others will have to live at their own homes, and travel to the site, or find accommodation in hotels nearby, with the assist of the construction team. Traffic Control Staff will control traffic into and out of siteNo Temporary light signals will be used, as it will delay public traffic times, won’t be efficiently used, and will cost more money to hire. Vehicle Movement into and out of site will occur around the Pink outline. Trucks and heavy machinery have been seen going into this outline and moving out safely and securely. Parking on Park road will be stopped until Kerrison Road, to ease movement of heavy machinery into site through Park Road, and make sure that cars do not get effected by any flying debris, which could lead into court appearances.Health and Safety Report The construction industry has the highest rate of accidents in the workforce. The diagram on the left proves data collected in 2008, which shows the multiple numbers of fatalities in the construction sector in comparison to other Work Sectors. In the production of the UWL Student Accommodation St Mary’s Road Ealing, our aim is to reduce accidents and fatalities as much as possible. Accidents are naturally occurring and unpredictable but controllable.This Health and Safety report will analyse the CDM Regulations 2007, and will in-corporate on how efficiently to use the Regulations in our project. This Health and Safety Report is a part of Risk analysis, hence following according to the H&S structure will reduce the for-see-able risks. Safe places of work Access & movement in and out of the construction site must be safe and practical. Walking distances must be short at all working times to cut down non-productive times amongst each of the workers on the field. The rea marked in yellow is the region where staff and workers will be making most movement. During the construction periods, it is important to keep the walking distances at a minimum, not only to cut down on non-productive time, but it will reduce damages to humans by falls, trips, falling and fallen debris. As the construction process is underway, the space will become more confined and little, due to the presence of the new building, hence, it is important to take vital care when crossing the site in such a tight area, to be further aware of accidents and to respect the Health and Safety Regulations.The area does consist of enough working space for all members of the team to work in a safe manner. Good Order and Site Security Every part of the construction must be kept in good order in the means of tidiness and cleanliness. The construction site will consist of a perimeter identified by suitable signs and be so arranged that its extent is readily identifiable, and be fenced off. See also fencing in the Site Layout Report for more information about fencing around the perimeter of the site. Sharp materials, such as projected nails, must be placed in good storage areas to reduce piercing people.Other construction projects, according to the CDM Regulations, do not allow timber with projected nails on site due to the Hazard danger of such equipments, therefore our alternative advice is to keep sharp objects, and all other materials that is a potential risk if not taken care of, to be stored appropriately, and used when ne eded. Site Security areas have been denoted on the Site Layout Plans. These sites will operate on a 24h basis. Construction materials and recourses are a high value for money, and hence, vandalism in construction is high at a time of economical downturn.Therefore, guards will be on patrol for 24 hour on the two areas located on the Site Plan. The site security will have to control the site premises, take care of all the site equipments, watch out for theft, and vandalism on non-operational times. During Operation periods, security will have to take control of vehicle movements in and out of the building, help with vehicles turning around, and check all the staff and worker’s badges before being let onto the site. Security check and report accidents and fatalities in the Risk Assessment and Health and Safety documents.Stability of Structure It is important to make sure that any part of the structure that may become un-stable with different load bearings or high wind loads, bec ome notified to all members of the team on site, who may be affected if un-cautioned. Foundations, buttress, and temporary supports, such as scaffolding, must be designed & used, to make sure they can adapt to the calculated load bearings and impact loads, so the building can remain stable, and none of the supports fail to collapse the building or the supports itself fall from a high distance.The load bearings, wind loads, impact loads, and snow loads have been calculated by the civil engineers, will provide exact figures, as to which the contractors will abide to, and design the supports in the safest manner. Excavation During the Excavation process, it is vital that nothing collapses into the region of excavation. There must be sufficient spacing between people, pile foundations and plants on the site. Neighbouring roof-tops must be checked to make sure that during the excavation process, nothing falls from these buildings into the excavation which may cause potential hazards for this stage of construction.The most potential building that may cause an issue for such reasons is the YMCA building next to the site, and its roof top must be verified. Excavation process must be inspected at the start of the shift, followed by regular interval checking, and finally at the end of the shift. Any material trapped in the excavation will cause a high health and safety issue for the employees, and also will affect the stability of the building a few years from completion. Reports of Inspection Dates when the QS and the Health and Safety Assessor will come and inspect the work have been noted on the Microsoft Project Scheduling, underneath the notes column.The QS will assess the progress of the work and supply information to the clients to supply the company with the income. Therefore in the inspection of the QS, if the project is working under the deadline, the income and profit will be below that of the project plan. The Inspection Report will be mentioned to the perso n in charge of the operations of the factors that needs to be amended to satisfy that report before further work can be carried out in a safe manner. Energy Distribution Installations Energy will come from the UWL campus Ealing.If more is required, then an electricity generator will be brought onto the site (shown on the left). The generator will need to be checked and revised before usage for safety requirements. Electric cables will run safely on the site, away from danger of being but off by plants, or by congestion. Gas will be distributed to Welfasre facilities from UWL. The student Car park has been cut off from Student and UWL staff, so that they are not at risk from un-known un-told danger, which the staff of the construction unit would be aware of whilst using the facilities.

Friday, August 30, 2019

Home of the Underdogs: A Great Educational Website Essay

In a website called Home of the Underdogs (http://www. the-underdogs. info/genre. php? name=Education&subgen=Language), there is an education genre where Language is one of the subgenres apart from Advanced Education, Arts or Literature, Early Childhood, General Knowledge, Math or Logic, Music, Problem Solving, Science, Social Studies, Typing or Writing, and Various Subjects (Home of the Underdogs, 2004). The Language section has great stuffs to use, such as Alf’s World of Words, Letter-Go-Round, Lingua Match, Mind Castle: Spell of the Word Wizard, and Reader Rabbit among others. There are exactly 18 Language games to choose from. If we add the other games in the other subgenres under the genre ‘Education’, then we would come to approximately 250 games all in all, and that is very helpful when teaching kids that are at least 3 years of age. The contents of this could be used when preparing a lesson plan like, for example, when preparing games or activities that can be drawn on the blackboard during discussion. We can apply Reader Rabbit, for example, by drawing a picture at the center and then spelling out three easy-to-read words (only 3 letters) beside the picture. There would be a clue above the picture on which letter it starts from, and by that the initial sound of that one letter can be read out loud. It would be good to read the three words that are beside the picture as well, so as to train them on the skill of reading. This is the same with Reader Rabbit’s game called ‘picture labeler’. There are three others that can be used as well: word sorter, word train, and memory game (Home of the Underdogs, 2004). Reader Rabbit is great for kids who are from 3-7 years of age, since it teaches them the skill of reading and spelling words. The word train, on the other hand, can be used by drawing a picture and a train that carries with it a couple of words that are almost the same. There are just so many in that website that can be used for preparing specific lessons for the kids.

Thursday, August 29, 2019

Net Present Value

Critics to DCF methods Ducht an UK companies * However, it is found inappropriate to use DCF methods for investments that have got strategic implications. * There are various reasons for the use of open approach. Since the outcomes of these projects are highly unforeseen, according one interviewee, the application of quantitative tools is not plausible. Therefore, companies tend to apply the rule of thumb methods rather than standardized quantitative models. The justification for not applying quantitative models is some times attributed to the nature of a project. Capital inv appraisal of new technologies: Problems, misconceptions and research directions Specifically, it has been alleged that the traditional appraisal methods of payback, discounted net present value (NPV) and internal rate of return (IRR) undervalues the long-term benefits; that traditional financial appraisals assume a far too static view of future industrial activity, under-rating the effects and pace of technological change; that there are many benefits from investments in new technology which are difficult to quantify and are often ignored in the appraisal process; and lastly, it is claimed that the systems of management control often employed by large organizations compound the bias against those investments which, although expensive, reap rewards vital for lon g-term viability. The first issue is a criticism of financial technique; the next two are criticisms of the way in which business operations are modelled; and the last is an issue of organizationalc ontrol and behavior. * We show that the criticisms directeda traditional appraisal methods may to some extent be based on misconceptions of the financial models and the ways in which they are best used * A similar objection is raised to the use of NPV and IRR. The claim is that discounting future cash benefits under-emphasizes the future benefits of new technology. This problem may be exacerbated by the application of risk premia to the discount rate. New echnology is assumed to be riskier than that which has been well established, Why DCF are bad for business and why business schools should stop using it * The assumptions related to DCF are increasingly becoming so disconnected from business reality that its continued use should come with the following warning, ‘This financial man agement technique is hazardous to your business. ’ * DCF as a capital investment appraisal tool suffers from a number of major limitations. These limitations include its narrow perspective, exclusion of non-financial benefits, overemphasis on the short-term, faulty assumptions about the status quo, inconsistent treatment of inflation, and promotion of dysfunctional/cheating behaviour. Previous authors, including Hastie (1974); Ramasesh and Jayakumar (1993); and Adler (2000) have enumerated and discussed the various sins of DCF. * The objections against the use of DCF for capital investment appraisal have often been objected to themselves. Kaplan (1986), for example, feels that the supposed limitations of DCF are in truth a limitation of the user and not of the technique. For example, the selection of a static discount rate is a failure of the user and not of the technique itself. Likewise, the inconsistent treatment of inflation, the overemphasis on the short-term, faulty assumptions about the status quo alternative, the adoption of a narrow organisational perspective, and manipulative and cheating behaviour are again all mistakes of the user. Even the difficulty of including non-financial benefits is seen as a lack of the financial analyst’s imagination rather than an inherent shortcoming of the technique. To help overcome the problems of DCF for capital investment decision-making, proponents of real options theory have argued for the tandem use of the Black and Scholes’ (1973) model and DCF. – The problem with DCF, and which cannot be overcome by its real options complement, occurs when data is not accessible or quantifiable. Not only do these occasions happen quite frequently, but also they become increasingly common as the decision moves from the operationally mundane to the strategically critical. The missapplication of capital investment appraisal techniques * Surveys of capital budgeting practices in the UK and USA reveal a trend towards the increased use of more sophisticated investment appraisals requiring the application of discounted cash flow (DCF) techniques. Several writers, however, have claimed that companies are underinvesting because they misapply ormisinterpret DCF techniques. * the only justification we can think of for using the accounting rate of return method is because top management believe that reported profits have an impact on how financial markets evaluate a company. This is further reinforced in many companies by linking management rewards to short-term financial accounting measures. Thus a project’s impact on the financial accounting measures used by financial markets would appear to be a factor that is taken into account within the decision-making process. Dimson and Marsh (1994) have expressed concern that many UK companies may be using exces sively high discount rates to appraise investments and, as a result, these companies are in danger of underinvesting. In the USA it has also been alleged that firms use discount rates to evaluate investment projects that are higher than their estimated cost of capital (Porter, 1992). Conclusions: Ducht an UK companies * All the UK case study companies apply combined methods of investment appraisal and most of them combine the DCF techniques with the value based management methods, such as SVA and EVA. The combination among the Netherlands companies, however, is mostly with the accounting based measures. Project decision-making in most of the case study companies is found decentralized, which provides the benefits of teamwork in project management. * In terms of appraisal model selection, however, the result is heterogeneous. Most companies prefer to apply combined methods of appraisal. Uniform methods of evaluation are no applied across all stages of a project, which will make diffi cult the comparison of project values at different stages. Although research in capital budgeting suggests the use of quantitative models for R&D and ICT projects, the application is not found in practice. In contrary, firms are relying on qualitative and non-standard approaches. This does not have rigorous theoretical basis, and hence, the decision-making process may not get an acceptable yardstick for its rationality. Capital inv appraisal of new technologies: Problems, misconceptions and research directions * Payback methods are inadequate appraisal techniques and should never be used alone. NPV and IRR are appropriate ways of valuing future cash-flows. Any bias in their application will be due to a systematic use of too high a discount rate, but this can be avoided by correct analysis. Assumptionsa bout the futurec an lead to bias if an over-optimisticp ictureo f the no-investment position is taken, but again this is an avoidable pitfall. As for the benefits ignored, many of these can be quantifieda nd broughtf ormallyi nto the analysis. W hereb enefitsc annot be quantifiedt, hey shouldn everthelessb e stateds o that they can be givenp roperc onsiderationw hena finalj udgement is made. The bias due to the use of short-term financial criteria can be removed by the use of measures reflecting the longer-term benefits of present investments. In principle, then, the biases of capital-investment appraisals are avoidable, but one difficulty remains. New technology invariably leads to greater complexity, and any unwillingness to face this complexity in the capital-investment process is likely to lead to bias against change. * NPV, IRR and PB undervalue long term benefits * Benefits from investing in technology very difficult to quantify and often are ignored in the appraisal process. DCF analysis places too little weight on the future due to the magnitude of the discount rate (too high). Reasons for a too high discount rate: 1. 2. to compensate non-profit projects 3. – To calculate the required rate of return we use t he CAPM – Managers? interests different from shareholders? ones so higher rate or return determined. Then, again, the critic/problem is not of the appraisal method but of its application or understanding Theory-practice gap in .. : UK The survey results indicate that UK corporations have increasingly adopted prescribed textbook financial analysis. The stage has now been reached where only a small minority do not make use of discounted cash flows, formal risk analysis, ppropriate inflation adjustment and post-auditing. However, managers continue to employ simpler rules-of-thumb techniques. There has not, in general, been a replacement of one set of methods with another, but rather, a widening of the range of ways of analysing a financial decision. Why DCF are bad for business and why business schools should stop using it It has been said, ‘Life must be lived forward but can only be understood backwards. ’ There is no denying that DCF is wonderful at looking backwa rds and calculating, for example, the actual NPV a project has earned. Sometimes, generally when commonplace, operational decisions are involved, DCF can even work as a forward-looking tool. To work in this manner, however, requires the relevant cash flow data to be either present or, perhaps with a bit of work, discoverable. DCF does not work well when the decision at hand is strategic in nature. In these situations, the data is often neither present nor discoverable in time for an ex ante evaluation. Only after the decision is made does useful data likely become available. The condition described here is well captured in the lyrics of the Rolling Stones’ song ‘You Can’t Always Get What You Want’: You can’t always get what you want But if you try sometimes, well you might find You get what you need. When it comes to matters that really matter, DCF and real options theory fail to enlighten us. Instead, they sap managers’ energy by focusing their attention on Pareto’s trivial many at the expense of his vital few. In the end, managers end up missing the forest in their search for the non-existent trees. It is time that as educators, we rediscovered the vital few and culled out the trivial many topics that have crept into our course outlines. DCF should be one of the first topics we drop or at a minimum drastically prune back. It is not only a prime example of the trivial many, but it is a potential hazard to firms that use it for decisions that affect firm strategy. Do I hear any other offers? The missapplication of capital investment appraisal techniques The use of conservative cash flow forecasts, combined with the incorrect treatment of nflation and excessive discount rates observed in the survey suggests that many UK organizations may be rejecting profitable investments. Given these problems it could be argued that DCF procedures should be abandoned or give n little weight in long-term investment decisions. We strongly disagree. DCF procedures should not be ignored or relegated in importance merely because they might be used incorrectly. Instead, decisionmakers should recognize potential problems and be careful to ensure that the financial appraisal is performed correctly. CRITICS TO PAYBACK PERIOD Capital inv appraisal of new technologies: Problems, misconceptions and research directions The objection to payback methods is that they ignore all cash flows after the desired payback period, which may be as short as 2 or 3 years. Thus they take no account of the long-term advantages that many large investments in new process technology bring, so the use of payback criteria is worthy of comment. 5 Payback can be insensitive to considerable variation among projects (in terms of their cash flows). 6 Payback methods are simple rules of thumb. Their attraction is their simplicity, and robustness for making judgements on possibly optimistic costings and uneasily quantified business risks. However, they do ignore medium- and long-term cash flows, and it is perhaps surprising that they seem to be regarded as serious tools of financial analysis. Net present value Firms generally have many investment opportunities available.   Some of these investment opportunities are valuable and others are not. The essence of successful financial management is identifying which opportunities will increase shareholder wealth. There are three basic and related concepts that form the very foundation of modern day finance: present value, net present value (NPV) and opportunity cost. Present value gives the value of cash flows generated by an investment and NPV gives the effective net benefit from an investment after subtracting its costs. Opportunity cost represents the rate of return on investments of comparable risk. Application of these concepts enables us to value different kinds of assets, especially those which are not commonly traded in well-functioning markets. NPV of an asset or investment is the present value of its cash flows less the cost of acquiring the asset. Smart investors will only acquire assets that have positive NPVs and will attempt to maximize the NPV of their investments. The rate of return received from an investment is the profit divided by the cost of the investment. Positive NPV investments will have rates of return higher than the opportunity cost. This gives an alternate investment decision rule. Good investments are those that have rates of return higher than the opportunity cost. This opportunity cost can be inferred from the capital market and is based on its risk characteristics of the investment. To assess why Net Present Value leads to better investment decisions than other criteria, let us start with a review of the NPV approach to investment decision making and then present four other widely used measures. These are: the payback period, the book rate of return, the internal rate of return (IRR) and profitability index. The measures are inferior to the NPV and should not, with the qualified exception of the IRR, normally be relied upon to provide sound investment decisions. These measures are commonly used in practice. The NPV represents the value added to the business by the project or the investment. It represents the increase in the market value of the stockholders’ wealth. Thus, accepting a project with a positive NPV will make the stockholders better off by the amount of its NPV. The NPV is the theoretically correct method to use in most situations. Other measures are inferior because they often give decisions different from those given by following the NPV rule. They will not serve the best interests of the stockholders (Brealey, 2002). To calculate NPV we should firstly forecast the incremental cash flows generated by the project and determine the appropriate discount rate, which should be the opportunity cost of capital. Then calculate the sum of the present values (PV) of all the cash flows generated by the investment. NPV = PV of cash inflows – initial investment. To make decision on investment, we should accept projects with NPV greater than zero and for mutually exclusive projects, accept the project with the highest NPV, if the NPV is positive. The NPV represents the value added to the stockholders’ wealth by the project. The discount rate should reflect the opportunity cost of capital or what the stockholders can expect to earn on other investments of equivalent risk (Brealey, 2002). The NPV approach correctly accounts for the time value of money and adjusts for the project’s risk by using the opportunity cost of capital as the discount rate. Thus, it clearly measures the increase in market value or wealth created by the project. The NPV of a project is not affected by â€Å"packaging† it with another project. In other words, NPV(A+B) = NPV(A) + NPV(B). The NPV is the only measure that provides the theoretically correct measure of a project’s value (Ross, 2002). Payback Period. The payback period is simply the time taken by the project to return your initial investment. The measure is very popular and is widely used; it is also a flawed and unreliable measure. It is simple to calculate and easy to comprehend. However, payback period has very limited economic meaning because it ignores the time value of money and the cash flows after the payback period. It can be inconsistent and the ranking of projects may be changed by packaging with other projects. Discounted payback is a modified version of the payback measure and uses the discounted cash flows to compute payback. This is an improvement over the traditional payback in that the time value of money is recognized. A project, which has a measurable discounted payback, will have a positive NPV. However, the other disadvantages of payback still apply. It is also not simple anymore (Investment Criteria). Book Rate of Return (BRR). This is a rate of return measure based on accounting earnings and is defined as the ratio of book income to book assets. Accounting earnings are reported by firms to the stockholders and the book return measure fits in with the reported earnings and the accounting procedures used by firms. However, the measure suffers from the serious drawback that it does not measure the cash flows or economic profitability of the project. It does not consider the time value of money and gives too much weight to distant earnings. The measure depends on the choice of depreciation method and on other accounting conventions. BRR can give inconsistent ranking of projects and rankings may be altered by packaging. There is very little relationship between the book return and the IRR. (Brealey, 2002). Internal Rate of Return (IRR). IRR is defined as the discount rate at which the NPV equals zero. Used properly, the IRR will give the same result as the NPV for independent projects and for projects with normal cash flows. As long as the cost of capital is less than the IRR, the NPV for the project will be positive. IRR can rank projects incorrectly, and the rankings may be changed by the packaging of the projects. For mutually exclusive projects, IRR can give incorrect decisions and should not be used to rank projects. If one must use IRR for mutually exclusive projects, it should be done by calculating the IRR on the differences between their cash flows (Ross, 2002). Profitability Index. Occasionally, companies face resource constraint or capital rationing. The amount available for investment is limited so that all positive NPV projects cannot be accepted. In such cases, stockholder wealth is maximized by taking up projects with the highest NPV per dollar of initial investment. This approach is facilitated by the profitability index (PI) measure. Profitability index is defined as: NPV/Investment. The decision rule for profitability index is to accept all projects with a PI greater than zero. This rule is equivalent to the NPV rule. The modified rule applied in the case of capital rationing is to accept projects with the highest profitability index first, followed by the one with next highest, and so on till the investment dollars are exhausted. This rule will maximize the NPV and stockholder wealth. If the resource constraint is on some other resources, the profitability index needs to be modified to measure the NPV per unit of the resource that is rationed. The profitability index cannot cope with mutually exclusive projects or where one project is contingent on another (Brealey, 2002). Thus, comparing NVP with other criteria we can assert that NPV is superior to other criteria. First, it is the only measure, which considers the time value of money, properly adjusting for the opportunity cost of capital. Second, it gives consistent measures of the project’s value (i.e. not affected by packaging with other projects). Third, it clearly measures the value added to the stockholders’ wealth. The only exception to the superiority of NPV is when the firm is constrained by capital rationing. This implies that the firm cannot finance all positive NPV projects and should therefore choose projects that give the highest NPV for each dollar of investment. The profitability index that is defined as the ratio of NPV to the investment amount is used to achieve this selection. However, the other criteria for the evaluation of projects are found to be popular in practice. If using them, we should make sure we use them in the best possible way and understand the limitations of them. For example, we should always compare mutually exclusive projects on the basis of the difference between their cash flows, because that it is the cash flows that determine the value of a project. Inadequate forecast of the cash flows can be far more disastrous than using the wrong appraisal technique. Cash flow forecasts are difficult to make and can be expensive. It does not make sense to waste the forecasts by using an inferior method of evaluation. References: Brealey, Richard A. & Myers, Stewart C. (2002). Principles of Corporate Finance, 7th ed. Chapters 5 – 6. Irwin/McGraw-Hill Book Co. Investment Criteria, Chapter 9. Introduction to Finance. COMM 203 Homepage. College of Commerce, University of Saskatchewan, 2004 from http://www.commerce.usask.ca/faculty/loescher/Commerce203/CapitalBudgeting/Investment_Criteria.ppt Ross, S., Westerfield, R., Jordan, B. & Roberts, G. (2002). Fundamentals of Corporate Finance, 4th Edition. McGraw-Hill Ryerson Limited. Net Present Value Critics to DCF methods Ducht an UK companies * However, it is found inappropriate to use DCF methods for investments that have got strategic implications. * There are various reasons for the use of open approach. Since the outcomes of these projects are highly unforeseen, according one interviewee, the application of quantitative tools is not plausible. Therefore, companies tend to apply the rule of thumb methods rather than standardized quantitative models. The justification for not applying quantitative models is some times attributed to the nature of a project. Capital inv appraisal of new technologies: Problems, misconceptions and research directions Specifically, it has been alleged that the traditional appraisal methods of payback, discounted net present value (NPV) and internal rate of return (IRR) undervalues the long-term benefits; that traditional financial appraisals assume a far too static view of future industrial activity, under-rating the effects and pace of technological change; that there are many benefits from investments in new technology which are difficult to quantify and are often ignored in the appraisal process; and lastly, it is claimed that the systems of management control often employed by large organizations compound the bias against those investments which, although expensive, reap rewards vital for lon g-term viability. The first issue is a criticism of financial technique; the next two are criticisms of the way in which business operations are modelled; and the last is an issue of organizationalc ontrol and behavior. * We show that the criticisms directeda traditional appraisal methods may to some extent be based on misconceptions of the financial models and the ways in which they are best used * A similar objection is raised to the use of NPV and IRR. The claim is that discounting future cash benefits under-emphasizes the future benefits of new technology. This problem may be exacerbated by the application of risk premia to the discount rate. New echnology is assumed to be riskier than that which has been well established, Why DCF are bad for business and why business schools should stop using it * The assumptions related to DCF are increasingly becoming so disconnected from business reality that its continued use should come with the following warning, ‘This financial man agement technique is hazardous to your business. ’ * DCF as a capital investment appraisal tool suffers from a number of major limitations. These limitations include its narrow perspective, exclusion of non-financial benefits, overemphasis on the short-term, faulty assumptions about the status quo, inconsistent treatment of inflation, and promotion of dysfunctional/cheating behaviour. Previous authors, including Hastie (1974); Ramasesh and Jayakumar (1993); and Adler (2000) have enumerated and discussed the various sins of DCF. * The objections against the use of DCF for capital investment appraisal have often been objected to themselves. Kaplan (1986), for example, feels that the supposed limitations of DCF are in truth a limitation of the user and not of the technique. For example, the selection of a static discount rate is a failure of the user and not of the technique itself. Likewise, the inconsistent treatment of inflation, the overemphasis on the short-term, faulty assumptions about the status quo alternative, the adoption of a narrow organisational perspective, and manipulative and cheating behaviour are again all mistakes of the user. Even the difficulty of including non-financial benefits is seen as a lack of the financial analyst’s imagination rather than an inherent shortcoming of the technique. To help overcome the problems of DCF for capital investment decision-making, proponents of real options theory have argued for the tandem use of the Black and Scholes’ (1973) model and DCF. – The problem with DCF, and which cannot be overcome by its real options complement, occurs when data is not accessible or quantifiable. Not only do these occasions happen quite frequently, but also they become increasingly common as the decision moves from the operationally mundane to the strategically critical. The missapplication of capital investment appraisal techniques * Surveys of capital budgeting practices in the UK and USA reveal a trend towards the increased use of more sophisticated investment appraisals requiring the application of discounted cash flow (DCF) techniques. Several writers, however, have claimed that companies are underinvesting because they misapply ormisinterpret DCF techniques. * the only justification we can think of for using the accounting rate of return method is because top management believe that reported profits have an impact on how financial markets evaluate a company. This is further reinforced in many companies by linking management rewards to short-term financial accounting measures. Thus a project’s impact on the financial accounting measures used by financial markets would appear to be a factor that is taken into account within the decision-making process. Dimson and Marsh (1994) have expressed concern that many UK companies may be using exces sively high discount rates to appraise investments and, as a result, these companies are in danger of underinvesting. In the USA it has also been alleged that firms use discount rates to evaluate investment projects that are higher than their estimated cost of capital (Porter, 1992). Conclusions: Ducht an UK companies * All the UK case study companies apply combined methods of investment appraisal and most of them combine the DCF techniques with the value based management methods, such as SVA and EVA. The combination among the Netherlands companies, however, is mostly with the accounting based measures. Project decision-making in most of the case study companies is found decentralized, which provides the benefits of teamwork in project management. * In terms of appraisal model selection, however, the result is heterogeneous. Most companies prefer to apply combined methods of appraisal. Uniform methods of evaluation are no applied across all stages of a project, which will make diffi cult the comparison of project values at different stages. Although research in capital budgeting suggests the use of quantitative models for R&D and ICT projects, the application is not found in practice. In contrary, firms are relying on qualitative and non-standard approaches. This does not have rigorous theoretical basis, and hence, the decision-making process may not get an acceptable yardstick for its rationality. Capital inv appraisal of new technologies: Problems, misconceptions and research directions * Payback methods are inadequate appraisal techniques and should never be used alone. NPV and IRR are appropriate ways of valuing future cash-flows. Any bias in their application will be due to a systematic use of too high a discount rate, but this can be avoided by correct analysis. Assumptionsa bout the futurec an lead to bias if an over-optimisticp ictureo f the no-investment position is taken, but again this is an avoidable pitfall. As for the benefits ignored, many of these can be quantifieda nd broughtf ormallyi nto the analysis. W hereb enefitsc annot be quantifiedt, hey shouldn everthelessb e stateds o that they can be givenp roperc onsiderationw hena finalj udgement is made. The bias due to the use of short-term financial criteria can be removed by the use of measures reflecting the longer-term benefits of present investments. In principle, then, the biases of capital-investment appraisals are avoidable, but one difficulty remains. New technology invariably leads to greater complexity, and any unwillingness to face this complexity in the capital-investment process is likely to lead to bias against change. * NPV, IRR and PB undervalue long term benefits * Benefits from investing in technology very difficult to quantify and often are ignored in the appraisal process. DCF analysis places too little weight on the future due to the magnitude of the discount rate (too high). Reasons for a too high discount rate: 1. 2. to compensate non-profit projects 3. – To calculate the required rate of return we use t he CAPM – Managers? interests different from shareholders? ones so higher rate or return determined. Then, again, the critic/problem is not of the appraisal method but of its application or understanding Theory-practice gap in .. : UK The survey results indicate that UK corporations have increasingly adopted prescribed textbook financial analysis. The stage has now been reached where only a small minority do not make use of discounted cash flows, formal risk analysis, ppropriate inflation adjustment and post-auditing. However, managers continue to employ simpler rules-of-thumb techniques. There has not, in general, been a replacement of one set of methods with another, but rather, a widening of the range of ways of analysing a financial decision. Why DCF are bad for business and why business schools should stop using it It has been said, ‘Life must be lived forward but can only be understood backwards. ’ There is no denying that DCF is wonderful at looking backwa rds and calculating, for example, the actual NPV a project has earned. Sometimes, generally when commonplace, operational decisions are involved, DCF can even work as a forward-looking tool. To work in this manner, however, requires the relevant cash flow data to be either present or, perhaps with a bit of work, discoverable. DCF does not work well when the decision at hand is strategic in nature. In these situations, the data is often neither present nor discoverable in time for an ex ante evaluation. Only after the decision is made does useful data likely become available. The condition described here is well captured in the lyrics of the Rolling Stones’ song ‘You Can’t Always Get What You Want’: You can’t always get what you want But if you try sometimes, well you might find You get what you need. When it comes to matters that really matter, DCF and real options theory fail to enlighten us. Instead, they sap managers’ energy by focusing their attention on Pareto’s trivial many at the expense of his vital few. In the end, managers end up missing the forest in their search for the non-existent trees. It is time that as educators, we rediscovered the vital few and culled out the trivial many topics that have crept into our course outlines. DCF should be one of the first topics we drop or at a minimum drastically prune back. It is not only a prime example of the trivial many, but it is a potential hazard to firms that use it for decisions that affect firm strategy. Do I hear any other offers? The missapplication of capital investment appraisal techniques The use of conservative cash flow forecasts, combined with the incorrect treatment of nflation and excessive discount rates observed in the survey suggests that many UK organizations may be rejecting profitable investments. Given these problems it could be argued that DCF procedures should be abandoned or give n little weight in long-term investment decisions. We strongly disagree. DCF procedures should not be ignored or relegated in importance merely because they might be used incorrectly. Instead, decisionmakers should recognize potential problems and be careful to ensure that the financial appraisal is performed correctly. CRITICS TO PAYBACK PERIOD Capital inv appraisal of new technologies: Problems, misconceptions and research directions The objection to payback methods is that they ignore all cash flows after the desired payback period, which may be as short as 2 or 3 years. Thus they take no account of the long-term advantages that many large investments in new process technology bring, so the use of payback criteria is worthy of comment. 5 Payback can be insensitive to considerable variation among projects (in terms of their cash flows). 6 Payback methods are simple rules of thumb. Their attraction is their simplicity, and robustness for making judgements on possibly optimistic costings and uneasily quantified business risks. However, they do ignore medium- and long-term cash flows, and it is perhaps surprising that they seem to be regarded as serious tools of financial analysis.

Wednesday, August 28, 2019

What influenced the writing of this piece of literature Essay

What influenced the writing of this piece of literature - Essay Example When it was first published, â€Å"Desiree’s Baby† did become famous, but it was only for the ability of the author to picturize the Bayou Louisiana so vividly, not for the tremendous social impact her writings had. Chopin’s writings were influenced by her personal life experiences, which were quite extraordinary. Monsieur Valmonde, a Creole gentleman, finds the infant Desiree abandoned by unknown persons near his home .He and his wife bring up the child as their own. Desiree grows up into a beautiful young woman, with whom their young aristocratic neighbor, Armand Aubigny falls in love. They get married, and Desiree is very happy at first. Soon she has a baby son and Armand is proud and happy. He becomes gentle even towards the slaves. Soon it becomes apparent to everybody around her that the baby is of mixed blood .Armand becomes cold towards her and when she asks him what was the meaning of it, Armand tells her bluntly that neither baby nor she is white. In despair, Desiree writes to her adopted mother who tells her to come home with the baby. She asks her husband whether she should go, and he tells her brutally to go. Desiree takes her baby and disappears into the bayou and is never seen again. Some time later, Armand puts everything that belonged to Desiree and her baby into the flames. During that time he comes across an old letter written by his mother to his father which reveals the secret that his own mother was not white. Written in a simple style, the story centers about the complex subject of miscegenation. The protagonist Desiree, is a woman of unknown parentage, who was found â€Å"lying asleep in the shadow of the big stone pillar†(Chopin) by Monsiur Valmonde, has been brought up as their own daughter by the childless Creole couple, Monsieur and Madame Valmonde. †The prevailing belief was that she had been purposely left by a party of Texans, whose canvas covered wagons, later in the day, had crossed the ferry

Summary of Personal Reflections and Learning In Relation To My SWOT Essay

Summary of Personal Reflections and Learning In Relation To My SWOT and PDP - Essay Example Further, I become familiar with the university setting and learned that the only difference from other lower learning institutions was the fact that one had to be self- driven. In relation to this, I learned a significant number of behaviors characteristic of me. In other words, I have come to learn and appreciated some attributes that define my personality. It was with the help of a questionnaire that colleagues at the university were able to guide me towards self-discovery. However, there are some attributes inherent in my personality that I would like to work on. I call them personal weaknesses. This paper summarizes my reflection and learning in relation to my strengths, weakness, opportunities, and threats. Further, I will present my personal development plan. This exercise will help me to identify my weakness, and improve on them. Consequently, I will be able to improve my chances of being employed in the future. After two weeks of attending classes, I discovered some strengths about myself. In my case, I could easily start a conversation, thus most people approached me for help regarding some personal problems. During lectures, students will request me to ask the lecturer regarding class materials. At some point, I was voted as the class representative owing to my outgoing nature. Hence, I came to learn that I was confident, but others called it daring. Overall, what they meant is that I had the courage to express myself whenever I felt like doing it. I learned that I had taken this attribute for granted while growing up. I hardly knew that it was not in the nature of everyone to take charge and face issues without apprehension. Based on Eysenck’s theory of personality, some people’s personality is characterized as extroverted- stable. These types of people are sociable, outgoing, responsive, and could be able to lead others (Nevid, 2010).

Tuesday, August 27, 2019

Sports injuries Research Paper Example | Topics and Well Written Essays - 2250 words

Sports injuries - Research Paper Example Although most people do not lose their consciousness, there is a tendency to forget events prior to or immediately after concussions. In some cases, individuals sustaining concussions simply feel confused. A concussion may not be life-threatening, but it can have very serious effects on an individual’s health (Cornell University). The symptoms of concussion are rare to notice. In most cases, it is difficult to tell if someone has sustained concussion especially if there are no bruises on the head. However, there are some signs that manifest in most patients who have sustained concussion. Some of the physical signs include nausea, vomiting, persistent headaches, dizziness, high sensitivity to light, blurred vision, tiredness, and balance problems. Some of the emotional signs include sadness, anxiety, bad mood, and unusually high temper. Young children with concussions can develop prolonged headaches, cry more than usual, change the way they act or play, develop sad mood, and lose interest in their usual activities. They can also lose new skills such as toilet training. In addition, they can have trouble while walking or even lose their balance. Moreover, they can easily be upset or lose their tempers (Cornell University). The long-term effects of concussions depend on the severity of the injury, subsequent treatment, and the age of the athlete. Concussions caused by severe injuries often take very long periods to heal. Similarly, untreated symptoms of concussions may take a long period to subside. Additionally, very young athletes take more time than adults to recover from concussions (Cornell University). Second impact syndrome occurs mostly in young athletes, particularly the ones under the age of 18. It usually arises when an individual sustains a concussion before recovering completely from a prior brain injury. The second concussion interrupts cerebral blood flow, subsequently triggering vascular engorgement, herniation of the brain, and increased

Monday, August 26, 2019

Vipassana Essay Example | Topics and Well Written Essays - 500 words

Vipassana - Essay Example In 528 BCE, after his enlightenment, the Buddha spent the 45 years of his life that remained teaching on the way out of suffering. Vipassana symbolizes the most vital part of his teachings. For 5 centuries, millions of people in the Buddha’s homeland- India were helped by Vipassana. However, after around 500 years, the practice had vanished from India. Luckily, an uninterrupted chain of meditation teachers in the neighboring country of Burma maintained it until the present day. In recent times, the practice of Vipassana has been to India and to individuals worldwide. This has been done by a retired industrialist named S. N. Goenka. He is of Indian heritage but was born in Burma. Mr. Goenka was taught the technique of Vipassana by Sayagyi U Ba Khin. U Ba Khin was a famous lay Vipassana teacher and was the first one to teach westerners in English. In 1969, Goenka was appointed by U Ba Khin to teach Vipassana (Hart, 1987). Vipassana is translated to mean ‘insight’. It utilizes awareness to take note of all details of our physical as well as mental experiences from time to time with an attitude that is without bias. There are three methods of practicing Vipassana. The main focus of all three is on breathing and the difference is the points on which attention is focused when breathing. The first method involves watching the belly. The belly is regarded as the location where the Hara center is. The Hara is a point of awareness that is regarded as the center of one’s subtle body. It is found just behind and below the navel. One can easily achieve a meditative state of mind by focusing their attention on the Hara center (Catherine, 2011). The second method is watching the coolness in the nostril. When the air enters an individual’s body through the nostril, it creates a little coolness that is soothing. This method involves focusing one’s attention on this

Sunday, August 25, 2019

Cosmetic Industry background Analysis in China Marcket Assignment

Cosmetic Industry background Analysis in China Marcket - Assignment Example Due to this, many cosmetics manufacturers have introduced more products in the expanding cosmetic market such as flavored glosses and lipstick, cosmetic packaged in sparkly and glittery packaging, and advertising and marketing using young beautiful models. However, cosmetics market in China is doing well in the manufacturing and packaging of beauty products. For instance, the raw materials of making shampoos are best provided in China by various manufacturers such as: Wuxi Nuoya Machinery Co., Ltd., Yangzhou Chenhua Science &Technology Group Co., Ltd., Shanghai Xiaoxiang Chemical Co., Ltd., and Shandong Freda Biotechnology Co., Ltd., among others (Yang, 2004, p. 123). Cosmetic industry is dominated by a number of multinational corporations. However, sale and distribution is spread over a wide range of businesses in China. Historically, the people of China initially stained their fingernails using gelatin, gum Arabic, egg, and beeswax. The used color represented a particular social cl ass (Tao, 2005, p. 231). For instance, the royals wore silver and gold, and red or black. The lower social classes were forbidden from wearing bright colors. Cosmetics market in China and the world today make a lot of money due to the furious rate of growth of the anti aging industry and the factor of celebrity in marketing and advertising (Tang, 2008). Today in the whole world, beauty is characterized with the youths and many are obsessed with their falling jowls and wrinkles and lines appearing. This is even turning people to undertake cosmetic surgery. This is what has taken my interest in writing this research paper, which will focus on the cosmetic market in China including: wholesalers, manufacturers and retailers; Chinese cosmetic suppliers including raw materials and packaging suppliers (Sunfaith China Ltd., 2005, p. 200). Cosmetic market in China Cosmetic market and industry in China has evolved to a fully fledged market with the emergence of flouring brands (Tang, 2000, p. 311). Within the cosmetic market in China, among the 300 brands, 20 of the brands have a joint venture and leading position of 80% of the share of the market. The cosmetic manufacturers in China are generally located in the inland cities and the Eastern Coastal line (Shen, Liu & Huang, 2005, p. 19). The market produces 90% with sales rated above 60% within the country. With respect to the types of cosmetics in Chinese markets, products of skin care is first in the list with 35% share, products of hair care sharing 28%, and products of make up taking up 29% share, and others are perfumes. According to the cosmetic insiders, the total sales of the cosmetics will probably reach to RMB 80 billion and amount to 12.9% per annum. The wholesalers, manufacturers and retailers are making huge profits in the cosmetic market in China due to the mentioned estimates of sales (Schutte & Ciarlante, 1998, p. 78). China has also emerged the eighth best cosmetic market in the world and second best in Asia. The stiff competition in the cosmetic sector has pushed the industry of cosmetics to combine the cosmetic market, industrialization and internationalization (Pitman, 2005, p. 12). Back in 2005, the scale of market even reached RMB 46 billion, with the cosmetic retail sector reaching RMB 33.05 billion which was much above the expected limit of growth 19.1% (Li, 2005, p. 32). the cosmetic market in China is currently exhibiting the following characters: the cosmetic mark

Saturday, August 24, 2019

Discuss gender roles and male and female relationship as it relates to Essay

Discuss gender roles and male and female relationship as it relates to the concept of authority in 20th American society - Essay Example The 20th century American society was very much influenced by the patriarchal western culture; but towards the end of the century rapid changes occurred in the American society. The role of women and the importance of family life had to be redefined as there was greater number of divorces: divorce was common in half of the homes and many families included single parents, step-parents, step siblings, adopted children and even mixed parents. Family as an institution was a great failure and very often the concept of man as the ‘bread giver’ of the family was shattered as women had to earn themselves to support the family and children. Many writers have pictured this conflict in the American society and Anzia Yezierska’s novel ‘Bread givers’ is a genuine attempt in this regard. The writer narrates the story of her protagonist, Sara Smolinsky, who fights against the dominant male culture and beliefs of her father and finally finds her own place in the high ly competitive New America. The novel clearly shows how her father Reb Smolinsky leads an easy going life and how he imposes his domination over his wife and daughters. The novel is set in the background of a massive immigration to America by people from all over the world for better living standards, believing that America is the most suitable nation to establish themselves financially and culturally, and to realize their inner urge for independence and self fulfillment. Sara, the protagonist of the novel, is the youngest daughter of an orthodox Jewish rabbi who cherishes a rigid conception of Jewish womanhood. Her family had immigrated to America from a village in Poland and according to her father’s Jewish tradition, the only role a Jewish woman had in her life was to take care of the family, and to make life easier for her husband or father. Thus, women were not given the individual freedom to decide a life of their own. This is evident when we find

Friday, August 23, 2019

Part 2 Theories of the Policy Process Essay Example | Topics and Well Written Essays - 2500 words

Part 2 Theories of the Policy Process - Essay Example Bentley's (1908) research offered preliminary insights on how advocacy groups affect the policy process. After Bentley's research, numerous studies on interest groups followed, with each study revealing the importance of interest groups to the policymaking process and the difficulty of measuring the impact of interest group influence on the policymaking process (Baumgartner & Leech, 1998, p. 45-46). In addition to interest groups, political scientists also emphasized the role of bureaucrats, policymakers, and the media in the policy process. All of these entities could influence a specific policy subsystem such as agricultural subsidy policy, pesticide regulatory policy, or any policy considered by policymakers. Over the course of 100 years, political scientists used case studies and quantitative analyses to further examine the impact of these variables on the policy process. By the late 1980s, this collection of research helped to provide the theoretical backdrop to models such as the ACF and PE that attempted to theorize about policy process. The ACF owes much of its intellectual heritage to research on the impact of interest groups on the policy process. This line of research started in the early 1900s and can be roughly divided into four eras. In the first era, lasting from 1900- 1930s, researchers examined the pressure tactics of groups and the impact of those tactics on the policy process. Significant works during this era included Arthur Bentley's (1908) The Process of Government. Bentley broadly theorized that groups compete against one another in order to influence governmental processes (p. 222,269). Although Bentley was not concerned with constructing specific theories on group activity, his research was the first to suggest that groups influenced the policy process. It also helped political scientists refocus their research efforts to other aspects of government aside from legalistic examinations of governing institutions (Bentley, 1908, p. 162). Similar works that examined the role of interest groups, or pressure groups as they were commonly known during this period, followed with each work examining the importance of interest groups in policymaking and reconciling that notion with theories of government and democracy (Griffith, 1939; Herring, 1929; Odegard, 1928; Schattschneider, 193 5; see also Cleveland, 19 13; Crawford, 1939; Croly, 19 15; Pollock, 1927; Zeller, 1937). Even more than Arthur Bentley, whose work was generally not even recognized until the 1950s, these researchers made the study of interest groups' impact on the policy process noteworthy (Garson, 1978, p. 77). However, it was not until the 1950s that interest group research really became important to political science. During this second era of research, lasting approximately from the 1940s- 1960s, the study of interest group influence on the policy process reached its scholarly zenith as the administrative size of the federal government increased. Research during this time period reaffirmed the importance of interest groups to policymaking (Griffith, 195 1 ; Latham, 1952; Truman, 1951 ; see also Key, 1952; McConnell, 1966). Some of the most influential research also extended the notion of interest group influence on the policy process to the notion that interest groups, policymakers, and agencies jointly controlled the policy proc

Thursday, August 22, 2019

Pro Death Penalty Essay Example for Free

Pro Death Penalty Essay The death penalty should be kept as a punishment in our court systems. It should be kept because it helps crime rates drop, helps give closure, serves justice, and more. Even though it gives a great outcome to the system there are people who argue against it. People against say that capital punishment is not rite, innocent people get killed, and its cruel and unusual punishment; yet none of those facts are proven, in fact, there is prove against them. Ultimately the death penalty helps society feel better and be a better place. The death penalty prevents more murders in society by causing one that is deserved. This is because people get scared of giving up everything for nothing. They think twice before they take a life because they can be punished by getting their life taken. The death penalty stops most people from killing others over stupid things like money, arguments, etc. Most of the people that do commit murders either dont care about there life, didnt mean to, or have some kind of anger or psychiatric problem like being psychotic, schizophrenic, bipolar and more. Many people tried to prove that the death penalty prevented murders, but there attempts were inconclusive. In 1973 Isaac Ehlrich engaged in an analysis which results showed that for every criminal executed 7 lives were saved (MSU); only because people were scared of the death penalty and didnt want to take a chance with there life. The many people that appose the death penalty say that the death penalty doesnt prevent murders, but causes th em. Like criminologist William Bowers of Northeastern University says Society is hurt by the use of the death penalty, this ups the likelihood of more murder. (MSU) I think that this is an insane idea. Even if society was brutalized by the use of the death penalty, why would they ever even think of committing more murders. The more murders that they commit the more the state would have to sentence the death penalty thus making what they were brutalized by even worse. What about all the criminals in our prisons that are serving life sentences. Life imprisonment is the worst punishment next to the death penalty and without that there is nothing left to punish the inmates with. If the inmate knows that it cant get worse than that they could kill guard and do whatever they wanted. When there is a punishment of death the inmates have to think that they are in jail and its not a nice place there but at least they are alive. Murder is very severe crime and can not be handled lightly. As stated by MSU when someone kills somebody they must be punished equally; as they should be for any other crime. This can be related to the saying an eye for an eye of course we dont take it to as great extent as they did before. If a teenager steels something like a CD they will get a certain amount of community service. This is basically being forced to do volunteer work to pay back for what you would have stolen and extra hours as a punishment. In an act of murder the victims family gets extremely traumatized. The damage caused can never be fixed. If the victim was say caught in a crossfire some family members might be scared to go outside. They could have nightmares and much more can happen. If the murderer is put to justice and executed at least they will have some kind of closure and know that the murderer is not able to commit any more murders. New Media Mill states that only good has happened since the government r einstated the death penalty after the court case Gregg vs. Georgia (1976). Ever since it was reinstated murder rates have dropped in almost all the states from 30% to 65%. Today, about 70% of America is for the death penalty even though there are a few problems just as there is in any other system. The main problem is executing and innocent person. According to MSU there is no proof of any innocent person getting executed. It would be extremely hard to happen because of all the safeguards and appeals added in the 1970s. Even if an innocent has been executed it is very rare. It wouldnt be rite to try an stop the death penalty because of some unproven fact, thats like saying there are innocent people in prison so abolish prison. There is no way you can be 100% sure which inmates are innocent and which ones are not, and you cant re-investigate all there cases because that would take too much man power and time. The people that do get out of death row normally get out because of legal technicalities. If someone can be proven innocent the governor will grant them clemency. The other claims are usually just delaying tactics (MSU). This is way the court has the appeal system which allows the inmate to postpone the execution. According to statistics on New Media Mill it is more likely to take a guilty man off death row and put him in a normal prison for life than it is to execute an innocent man. People say that the death penalty is cruel and unusual punishment if anything the system goes way too easy on the death row inmates. Some murderers kill people in the most brutal, disgusting, and unimaginable ways and they are executed by lethal injection. They get to die in there sleep without any pain or suffering. They die the way everyone wishes they die. In my eyes, thats not considered a punishment comparing it to how some inmates have killed people. For example Michele Ross got the death penalty and was killed by painless lethal injection after raping and killing eight women. The people put on death row should be killed in a harsher way. According to MSU government isnt giving cruel and unusual punishment by lethal injection, people should be happy that they are nice enough to execute the inmates so peacefully. I could understand people seeing it as cruel and unusual if the government banned lethal injection and left the inmates with a choice of the other four methods for execution which are hanging, gas chamber, firing squad, and electrocution which cause pain (MSU). When hanging the person drops with the noose around his neck so that it snaps his neck. Instant death doesnt always happen so the person sometimes suffocates. Using the gas chamber they sit the person in a chair and fill the room until he chokes from the lethal gas. The firing squad gives a shot to the heart and kills the person in a few seconds or if the heart is missed the person bleeds to death. When being electrocuted the person is tied to a chair while they put 2000 volts of electricity through them. During lethal injection the person is put to sleep then paralyzed then given a liquid witch stops all function in the body. As you see execution cant get much better than lethal injection. Cruel and unusual is when Ronell Wil son shot and killed detectives James Nemorin and Rodney Andrews in 2003 (Google News). Hopefully you know realize that the death penalty should be kept as a punishment in our court systems. It has helped crime rates in almost every state drop, it has given closure to many families, it has served justice, and more. There will always be people coming up with reasons why the death penalty should be stopped. Reasons like cruel and unusual punishment, that it hurts society, and more but in the end it is the main thing that stops people from going out of control and makes society a better place. Work Cited Google News. The Death Penalty. 2006. 11/25/06. http://news.google.com/news?q=for+the+death+penaltyMichigan State University. The Death Penalty. 2006. 11/21/06. http://www.deathpenaltyinfo.msu.eduNew Media Mill. DPIC. 2006. 11/20/06. http://www.deathpenaltyinfo.org

Wednesday, August 21, 2019

Gender Socialization in American Social Institutions Essay Example for Free

Gender Socialization in American Social Institutions Essay Socialization refers to how people learn different cultures and learn to live with the various aspects of the cultures. For an individual, socialization provides an opportunity to gain various habits and skills that are necessary for participating and acting at various levels within the society. For the wider society, socialization enables different people to exchange moral norms, values, attitudes, social roles, languages, motives and so forth, thereby attaining a form of social and cultural stability (Sapiro, 1990). Socialization is affected by many factors, which have contributed to factors such as social stratification with particular with reference to gender among various societies. Many social theories have suggested that gender is a core cause of social stratification in the American Society (Stone, 2001; Andersen Taylor, 2005; Levinson, Cookson Sadovnik, 2002; Giddens Griffiths, 2006). Social stratification with respect to gender has been noted in many areas such as place of worship, schools, workplaces, and many other areas that involve social interactions. According to Andersen and Taylor (2005), the various methods used in interaction in different institutions lead to stratification since males usually tend to dominate the social scene, thus creating a situation whereby females have to play a second role in socialization. This paper will evaluate the methods of socialization used by people in different American educational institutions with particular reference to the role of gender in the social scene. The format of the paper will involve a brief discussion of the various aspects of socialization in the American context followed by a discussion of the methods of gender socialization in American social educational institutions. Gender socialization among Americans According to Stone (2001), the American society places a lot of importance in the role of the family as the basic social unit of the society. In fact, the evidence for this is shown by the abundance in most libraries of published materials regarding marriage and family life in the United States. The interest in family life is instigated by the fact that there are various instances of gender interaction such as those involving children; between children and their parents; between parents; and between parents and their in-laws (Stone, 2001). An obvious gender interaction that is usually less mentioned is that between any parent and mother-in–law or father-in-law of the opposite sex. The aspect of mother in law in particular has been a problem to many couples in the American society. In this context, Stone (2001) quotes Eppie Lederer who commented on the persistent problem associated with mothers-in-law by asking the question â€Å"Must we outlaw the mother in law? † The products of family life, that is children, also socialise differently depending on where they are. Andersen and Taylor (2005) note that gender socialization among children is impacted upon by peers, parents, the media, schools, religious institutions and forth. It is at the child level that various paths of gender socialization are charted. For instance, in schools girls usually get involved in communal games and like getting into groups whereas boys tend to put interest in games that are individualistic (Andersen Taylor, 2005). The same authors also note that girls play more freely when they are involved in same sex groups. On the other hand, boys tend to wield power over girls when they play with them and have a tendency to create laws of play over girls. This is perhaps what leads to men’s dominance in scenes in later life (Andersen Taylor, 2005; Stone, 2001). Methods of gender socialization in American educational and religious institutions As is the case in all societies, socialization occurs at all stages of life, not just in childhood stages. The attributes displayed by children in their early days such as gender-typed forms of games are indicator of behavior that appear later during adult life. The aspects of competitive play displayed by boys prepare them for the kind socialization environment they encounter as adults. Giddens and Griffiths (2006) note that boys engage in more aggressive socialization activities because in future they get active in activities such as sports; and the large groups they socialize with also teach them to cooperate and compete when working together later in life. Among girls, there is a slightly different approach to socialization. Andersen and Taylor (2005) note that learn in the same way as girls but they don’t tend to value the attributes such as highly as boys or men even though these attributes are no less important to them. Thus, gender socialization in various American educational institutions is based on these attributes as discussed in the following sections. Gender socialization in schools Schools in have a distinct influence on gender socialization because of the considerable amount to time children spend them (Cookson, 1990). Teachers of either sex have different expectations for boys and girls. According to research findings, boys in American schools call out answers about eight times more than girls (Andersen Taylor, 2005). This makes boys get more attention from their teachers than girls. This point is emphasized by the fact that when teachers of either sex respond to the boys they increase the boys’ level of perceived importance. Another level of socialization in schools is the kind of books used in class. The kind of messages depicted in the books usually determine the kind of socialization that children have later in life or among themselves (Levinson, Cookson Sadovnik, 2002). If a person of a certain gender is used as a central figure and is portrayed to be powerful or a genius, a mentality is developed among children that people of that gender are powerful in all dimensions. Most of the characters depicted as such are men. Gender socialization and religion Religion is one of the aspects of gender socialization that is often overlooked in the American society. Different religious groups lay emphasis on different aspects of their culture such as gender differences. For instance, most Judeo-Christian religions found in the United States put much emphasis on gender, with a common perspective that men are superior to women. In religions that embrace Orthodox Judaism, men offer prayer to God thanking him for not having made a slave of woman for them. In addition, many other religions in the United States exclude women from leadership in religious functions to signify that women hold a lower position in the society (Levinson, Cookson Sadovnik, 2002). Aside from the religions that belittle gender, socialization in Christian and Muslim faiths encourages some form of gender equity (Cookson, 1990). Thus in both churches and mosques, women constantly use what they learn based on their faiths to question racist practices and other forms of unfair treatment by men. Along this line, protestant and evangelical churches in the United States campaign for shared household roles and equal job opportunities as part of socialization between men and women (Stone, 2001). Gender socialization and the media Different forms of media such as magazines, film, television, music and many others have a lot of influence on the kind of socialization in the United States. Communication through the various forms of media is facilitated through features such as cartoons, narrations, messages in music and so forth. Men and women play different roles in the media industry and this determines show they socialize at various levels. But a common tendency is that men are usually portrayed as more powerful figure in various media by their dominance in films, sports, and many other activities. This has changed how people view various forms of media and stratified the society (particularly learning institutions) in terms of popularity of some programs. Television in the United States has been criticized for portraying unrealistic images of women and men with respect to their appearance and age (Stone, 2001). There is a common opinion that women are usually portrayed provocatively on television in dresses such as underwear, nightwear, swimsuits and so forth. Media images in social scenes such as social halls, school halls, colleges and other institutions in the United States and so on are criticized for depicting white men as exercising higher authority than white women as well as black men and black women. Many advertisements in social settings also have the same tendency of depicting the male gender as being superior to the female gender (Stone, 2001). Gender socialization and employment in educational institutions Workplaces as schools are characterized by people of either gender playing different roles. The American system of job classification us characterized by hierarchical organizations which put men and women in different job capacities. For instance, most principals in schools and superintendents of colleges are men (Andersen Taylor, 2005). This therefore creates an ill-advised notion that leaders in social institutions are always men. Conclusion It is evident that various from of gender socialization in educational institutions such as schools, colleges, churches, social halls and so forth in the United States is greatly influenced by the kind of socialization that takes place in elementary levels of education such as junior schools. In addition, the kind of behavior that boys and girls are exposed to is carried into adult life. This is shown in many organizations that disseminate knowledge such as colleges, most of which portray men as being superior to women. References Andersen, M. L. and Taylor H. F. (2005). Sociology: understanding a diverse society. New York: Cengage Learning. Cookson, L. Gender equity, social institutions and the future of fertility. Journal of Population Research, 17(1):1-14 Giddens, A Griffiths, S. (2006). Sociology. New York: Polity Levinson, D. ; Cookson, P. W. Sadovnik , A. R. (2002). Education and sociology: an encyclopedia. New York: Taylor Francis. Sapiro, V. (1990) Women in American society: an introduction to womens studies. New York: Mayfield Pub. Co. Stone, L. (2001). New directions in anthropological kinship. New York: Rowman Littlefield.

Characteristics of a Capitalist Society

Characteristics of a Capitalist Society Title: What social, economic or cultural characteristics define a society as capitalist? Which characteristics have held constant, and which been transformed, in the period since the late 18th century? According to sources, it was William Makepeace Thackeray who initially applied the notion of ‘capitalism’ in 1854 to define the ownership of capital. Throughout the history, the term capitalism has been closely associated with other related notions, including: market capitalism, laissez-faire (pure capitalism), economic liberalism, private enterprise etc[1]. Capitalism transformed feudalism in the Western world, namely Britain, from where it had flourished throughout Europe predetermining economic, cultural and political developments of the then society. Later, over the 19th and 20th centuries, capitalism formed the grounds of industrialization[2]. Nevertheless, namely the eighteenth century became crucial in the foundation of capitalism concept after the first economic school was established in Britain. The school has produced much of the fundamental thought in the field of classical political economy supported by the invaluable contributions of David Ricardo, Adam Smit h, John Stuart Mill, and Jean-Baptiste Say et al who thoroughly researched various ways goods were produced, distributed and exchanged under market conditions. Namely, those classical thoughts have set the foundations of the contemporary perception of capitalism[3]. During the 18th century the concept of capitalism was much commercialized and dominated by merchants. Consequently, by the end of 18th century, mercantilism was in dire straits since mercantile activity could not longer provide sufficient resources to maintain military expenditures of those states that depended on commerce. The subsequent industrial revolution was another driving force that had intensified the crisis since the new industrializing countries were questioning the true value of mercantilist practices. In the course of the industrial revolution, merchants were replaced by industrialists to dominate the capitalist system and diminish the roles of conventional handicraft labourers, including guilds, artisans and journeymen. Other effects involved the advancement of bourgeoisie as a dominant social class as well as immense mechanization of agriculture. Being the center of the Industrial Revolution in the mid-18th century, Great Britain made a considerable influence on the ne w perception of traditional mercantilist doctrines through the works of economic theorists who claimed that the global wealth was constant and only states were able to increase their own wealth at the account of other (weaker) states. According to Marx, since the last third of the 18th century industrial capitalism should be associated with the following factors: (1) development of the factory system wherein manufacturing was based on the complex division and exploitation of labor within work processes; (2) routine designation of work duties; and (3) the overall dominance of the capitalist mode of production[4]. In the mid-18th century, French physiocrat David Hume much contributed to the promotion of free trade as well as the concept of land as the main source of wealth. Later on, in 1759 Franà §ois Quesnay outlined further features of capitalism in his Tableau Économique, wherein he provided the first ever analytical description of the economy, having predetermined the grounds for the economic theory forwarded by physiocrats. These critical views were strongly supported by Anne Robert Jacques Turgot who advocated free trade in contrast to customs duties and tariff. More precisely, Richard Cantillon featured the notion of long-run equilibrium being the balance of income flows, pointed out the dependence between land and prices, and the impact supply and demand had on short-term prices[5]. 1776 marked the appearance of Adam Smith’s The Wealth of Nations wherein the economist defended his standpoint regarding natural liberty system and fiercely opposed mercantilism. At this point, according to economic theorists, the roots of classical political economy were put down. Specifically, the economist forwarded a couple of capitalism-related concepts that are of great theoretical and empirical importance today. For instance, Smith’s ‘invisible hand’ theory of the market indicates that individual interest is a core prerequisite of collective social good (wealth). While forwarding his liberal economic concepts favoring free markets, Smith was vehemently opposed by the sentiments of then domineering mercantilist society[6]. In particular, Smith severely criticized all forms of state intervention in the economy, as well as restrictions imposed by a state including duties and tariffs, and monopolies, on the other hand. At that he held a strong view that market alone was able to fairly redistribute all the available resources. More than that, Smith advocated retaliatory tariffs as indispensable part of free trade, wherein patents and copyrights encouraged innovation[7]. In a while, Smith’s views were supported by David Ricardo the author of the economic law of comparative advantage forwarded in 1817 in The Principles of Political Economy and Taxation, explaining mutual benefits of trade between the parties, regardless all possible economic differences between them. Thus, the notion of free trade was proven. Guided by the Say’s Law, Ricardo emphasized on the significance of full employment enabling a competitive economy with normal equilibrium[8]. Furthermore, Ricardo advocated strong interrelation between the changes in credit and monetary quantities and inflation, and emphasized on the diminishing returns highlighting the interdependence of additional inputs and outputs[9]. Following Smith’s ideas, Karl Marx clearly differentiated the use and exchange value of commodities in the market. Hence, Marx perceived capital as the value created through the purchase of commodities in order to create new commodities which exchange value would exceed the amount of initial purchases. Moreover, Marx considered the use of labor force featured by certain exchange value (i.e. wage) as a sufficient commodity in the capitalist society. Though, according to Marx, the value of labour force has always been less compared to the value potentially gained by the capitalist out of its use. Such principle difference, as Marx argues, creates surplus value extracted and accumulated in the capitalist society. Marx’s fundamental work is named Capital, where he clearly distinguished the capitalist mode of production. Precisely, to provide a relevant evidence Marx explained how the surplus was extracted by the capital owners from workers through the sale-value of produced commodities[10]. In due respect, Marx claimed that namely surplus value extraction laid the grounds for a struggle between the classes. Thus, Marx considered labour as the primary source of profit. In addition to this, Marx held a strong opinion regarding an exploited labor as the driving force that could revolutionize socialist-style economies. Herewith, the analysis of Marxian thinking assumes that centrally-planned economies mainly established in the former communist societies to a great extent reflected the features of state capitalism through the exploitation of labor force. Subsequently, in 1916 Vladimir Lenin transformed the notion of Marxian capitalism into imperialism claiming monopoly capitalism as the highest stage of capitalism society in his Imperialism, the Highest Stage of Capitalism[11]. The German Historical School provided fresh insight into the perception of capitalism as the efficient system that supplied markets with production. In such a way, this approach highlighted the core difference between capitalism and previous modes of economic activity since capitalism assumed principal shift from medieval restrictions imposed on money and credit to the monetary economy emphasizing on the profit. Another prominent thinker that influenced the understanding of distinguishing characteristics of capitalism in the 19th century was Max Weber, German social theorist. Weber mainly concentrated on market exchange conversely to production, as the main distinguishing characteristic of capitalism. At that, he pointed out that within the capitalist mode enterprises focused on the rationalization of production by maximizing productivity and efficiency[12]. In his fundamental work 1904-1905 The Protestant Ethic and the Spirit of Capitalism, Weber traced the way capitalism transforme d previous economic systems. For this purpose, the theorist highlighted the ‘spirit of capitalism’ particular to Puritan comprehension of human laboring. Weber deemed that a devotion to God helped the Puritans to lay the foundations of the then economic mode. Compared to Marx, Weber regarded capitalism in a broader perspective rather than merely a result caused by the alterations in the means of production[13]. Therefore, capitalism, from Weber’s viewpoint, was the advanced economic system that had ever been developed throughout human evolution. In particular, Weber identified the following distinguishing characteristics particular to capitalism: public credit, corporate business, and expansion of bureaucracy. Being opposed to socialist remarks against capitalism, Weber himself criticized the very economic system as one that posed threat to the conventional cultural values shared by the society as well as the one that constrained human freedom. Namely, Weber much criticized ‘spiritless specialists’ and ‘heartless hedonists’ who had nothing in common with the genuine Puritan spirit particular to capitalism[14]. During 1930-s, John Maynard Keynes had a tremendous influence on the notion of capitalism and the role of monetary policy. The British economist emphasized on the important functions of monetary policy within economic policy. In his The General Theory of Employment, Interest, and Money 1937 he argued that capitalism was not able to fully recover from the slowdowns in investment. At that, Keynes claimed that the economic mode particular to the capitalist society could sustain its indefinite equilibrium even in spite of high unemployment. At that, during the 1930s Keynesian approach to economics assumed that laissez-faire capitalist economics was self-sufficient and did not need any intervention from a state to cut down unemployment or boost aggregate demand. Furthermore, Keynes suggested ‘pump-priming’ approach to save the economy from recession in the period of economic down-turn, which involved increase in government borrowing and spending as well as cutting-down taxes. In such a way, Keynes put forward his idea of cutting real wages through the system of their control from the state and deterring from holding money during inflation[15]. This indicates that Keynes much favored state regulation as an effective tool to eliminate economic slowdown. Actually, Keynesian policies enabled the capitalism recovery afterwards the state of the Great Depression[16]. The contemporary academic research on the concept of capitalism is largely grounded on neoclassical economics and the relevant approaches developed by the Chicago School. The modern perception of capitalism therefore favors neutral government regulation and coordination of markets with the focus being placed on property rights’ maintenance; deregulation of labor markets; promotion of corporate governance by private owners; development of transparent financial systems with capital market-based financing in their core. According to Milton Friedman, active follower of Adam Smith’s thinking, under the conditions of free competition social responsibility makes up an indispensable part of any business activity and profit-making. In such a way, Friedman shows how self-interest can benefit the entire society in the modern economic conditions[17]. The major distinctive features of capitalist society were pointed out throughout the 20th century while experts compared and contrasted due system with the centrally planned economic system. In due respect, capitalism has always enabled consumers with free choice, while producers were able to satisfy a consumer demand. By contrast, in the planned economies the production was entirely controlled and directed by a hierarchically-led state policy. Thus, capitalism alone has achieved sufficient delivery of goods and services through the privatization of previously state-owned means of production and infrastructural objects. In addition to this, the notion of capitalism is closely associated with the abolishment of subsidies and free trade wherein capitalist society is prone to perform both rational and irrational actions that are often unpredictable. Namely the last quarter of the 20th century clearly indicated the increasing ability of people and capital to mobilize. Globalization alone has opened a new avenue for the development of both capitalist and non-capitalist models. Today, capitalism is regarded by many as world system featured by all the peculiarities of capitalist trade. Analysts state that such perception of capitalism dates back to the early 20th century imperialism. Following the same fashion, imperialistic policies emphasized on the promotion of capitalistic principles of free trade among countries. Taking the abovementioned features of the contemporary capitalism into account, it is noteworthy that along with many positive effects global capitalism has caused the state of global inequality in income rates, social security, access to strategic resources, and redistribution of world capital. In due respect, since the times of the Industrial Revolution there have been considerable changes boosted by economic growth in such areas as life expectancy, access to educational resources and information and communication technologies, literacy, infant mortality, child labor etc. By and large, global capitalist economy has been dramatically shifted b y the invention and fast application of telecommunications within the last thirty years. Information and communication technologies such as computers, Internet and cell phones have enabled most of the business transactions in virtually any part of the globe[18]. Overall, capitalism promotes economic growth and social standard of living measured by Gross Domestic Product (GDP). According to Adam Smith, free market alone allocates necessary resources and controls production and price, which is particular to the contemporary world capitalist system. Furthermore, capitalist economy, if compared to conventional economic systems and feudal or socialist societies, provides vast opportunities to raise individual income while engaging in new professions or launching private business ventures, for example. As Milton Friedman puts it, competitive capitalism leads to economic freedom and subsequently to the political one where there is no place for the centralized control of economic activity or political repression from the state. Conversely, the variety of market economy transactions causes wide diversity of activities and/or their free choice. In accordance with John Maynard Keynes and Friedrich Hayek, capitalism is a reflection of economic freedom w hich is essential for social survival and development[19]. Thus, many capitalism supporters claim that namely the decentralized system of coordination is the most powerful feature of capitalism. Particularly, the decentralization of economic processes leads to free competition and optimal solutions to the arising challenges. Even the slightest control from then state, according to the Austrian School thinkers, can potentially cause serious inefficiencies since economy then becomes unpredictable in the long-term perspective. One of the major causes of the Great Depression, for instance, was the immense interventionist policy led by the Federal Reserve. Despite such positive views on capitalism, throughout its long evolution this economic concept was fiercely criticized by namely left-oriented proponents. 19th century conservatives, for instance, regarded particular characteristics of capitalism such as commodity production and free market exchange as potential threats to religious and cultural traditions. Other critics associated capitalism with the spread of negligence, corruption, and many other socio-economic problems. Socialists, for example, strived for the state regulation of capitalism rather than its abolishment. Throughout centuries, much of criticism has been received from religious leaders who fiercely opposed the materialist side of capitalism. From a religious viewpoint, it would rather be mixed economy that could meet the demands of society and ensure economic justice. For the most part, critics point out at negative features of capitalism including: inefficient and unfair distribution of power and wealth; monopolisti c tendencies of businesses and corporations; signs of cultural and economic exploitation of cheap and unskilled labour force (including children and/or old people); social alienation, unemployment, economic instability, and inequality to name a few. Nowadays, however, we understand capitalism as an economic system that assumes private ownership and control of wealth and the means of its production. In due respect, state ownership bears limited relation to the essence of capitalism. Both private individuals (entrepreneurs) and companies (corporations and small and medium-sized enterprises) own, operate, and trade capital and labor, as well as other resources for the sake of profit-making. In the contemporary conditions, capitalism is an indispensable component of market economy which entirely excludes any government intervention in the transactions that involve investments, income, distribution, production, pricing and supply of goods and services etc. Furthermore, labour as such is a distinguishing feature that characterizes capitalism in the contemporary conditions of fierce competition. Based on appropriate knowledge and skills, human resources are viewed as the most valuable asset by the majority of employers. Herewith, marke t rules make up a regulatory framework that determines economic developments in the contemporary capitalist state. In most instances, the role of a state is limited to the provision of relevant infrastructure and public goods. This indicates that economic developments are predominantly grounded on the so-called ‘laissez-faire’ principle envisaging a minimum state intervention into the economy. Consequently, the contemporary notion of capitalism highlights the ultimate importance of the control over the means of production by private owners wherein the state role is mainly limited to the protection of property rights. However, such conclusion would be correct only from the pure capitalism viewpoint. By and large, the well-developed contemporary economies present a mixture of public and private ownership and therefore are reasonably referred to as the capitalist mixed economies, where both private capital and state serve their particular roles. In its essence, classical p olitical economy has been strongly interrelated with classical liberal doctrine assuming minimum economic intervention on the part of government. At that economic and social realms were clearly distinguished, wherein state could provide necessary public goods and services[20]. Reference list Bellamy, R. 2003, The Cambridge History of Twentieth-Century Political Thought. Cambridge University Press Burnham, P. 2003, Capitalism: The Concise Oxford Dictionary of Politics. Oxford University Press. Calhoun, C. 2002. Capitalism: Dictionary of the Social Sciences. Oxford University Press. Edgell, S. 2006, The Sociology of Work: Continuity and Change in Paid and Unpaid Work. London: Sage, Ch 1. Erhardt, E. History of Economic Development, Lindner Center Auditorium, Cincinnati. Evans, P. 1997, The Eclipse of the State? Reflections on Stateness in an Era of Globalization. World Politics 50 (1): 62–87. Friedman, M. 1970, The Social Responsibility of Business is to Increase its Profits, The New York Times Magazine. Hunt, E. 2002, History of Economic Thought: A Critical Perspective. M.E. Sharpe Kumar, K. 1978, Prophecy and Progress, London Penguin. Ch. 3. Lane J. Ersson, S. 2002, Government and the Economy: A Global Perspective. Continuum International Publishing Group. Saunders, P. 1995, Capitalism. University of Minnesota Press. Skousen, M, 2001, The Making of Modern Economics: The Lives and Ideas of the Great Thinkers. M.E. Sharpe Wheen, F. 2006, Books That Shook the World: Marxs Das Kapital1st ed. London: Atlantic Books 1 Footnotes [1] K Kumar 1978, Prophecy and Progress, London Penguin. Ch. 3. [2] P Saunders, 1995. Capitalism. University of Minnesota Press. p. 1 [3] M Skousen 2001, The Making of Modern Economics: The Lives and Ideas of the Great Thinkers. M.E. Sharpe [4] S Edgell 2006, The Sociology of Work: Continuity and Change in Paid and Unpaid Work. London: Sage, Ch 1. [5] M Skousen 2001, The Making of Modern Economics: The Lives and Ideas of the Great Thinkers. M.E. Sharpe [6] E Hunt 2002, History of Economic Thought: A Critical Perspective. M.E. Sharpe [7] P Burnham 2003, Capitalism: The Concise Oxford Dictionary of Politics. Oxford University Press. [8] M Skousen 2001, The Making of Modern Economics: The Lives and Ideas of the Great Thinkers. M.E. Sharpe [9] C Calhoun 2002. Capitalism: Dictionary of the Social Sciences. Oxford University Press. [10] F Wheen 2006, Books That Shook the World: Marxs Das Kapital1st ed. London: Atlantic Books [11] E Erhardt, History of Economic Development, Lindner Center Auditorium, Cincinnati. [12] Erhardt (Ibid). [13] Erhardt (Ibid). [14] Erhardt (Ibid). [15] Erhardt (Ibid). [16] M Friedman 1970, The Social Responsibility of Business is to Increase its Profits, The New York Times Magazine. [17] Friedman (Ibid). [18] P Evans 1997, The Eclipse of the State? Reflections on Stateness in an Era of Globalization. World Politics 50 (1): 62–87. [19] R Bellamy 2003, The Cambridge History of Twentieth-Century Political Thought. Cambridge University Press [20] J Lane S Ersson, 2002, Government and the Economy: A Global Perspective. Continuum International Publishing Group.