Large classes Essay

When students are in large classes it is very hard for the teacher to give every student individual attention. What can educational authorities do about this? It is quite obvious that when the students are in very large numbers in a class, the teacher can’t pay individual attention. I think as far as students are attentive in the class, teachers attention to individual hardly matters. Not all students in a class need personal attention, because they are smart and grasp the lessons quickly by themselves. However some of the students who are a little weak can surely get personal attention of the teachers. Nevertheless for the teacher to be able to monitor progress of all students of a class, it is necessary that proper student teacher ratio is adhered to. Student-Teacher ratio refers to the number of teachers in a school or university with respect to the number of students who attend the school or university. For example, a student teacher ratio of 10:1 means that there are 10 students for every one teacher available. The term can also be reversed to be teacher-student ratio. If one classroom has a 30:1 ratio and the other has a 10:1 ratio, the school could claim to have a 20:1 ratio overall. But if the ratio is 50:1, the school needs to hire more teachers. In a way 40:1 is the ideal ratio where all students can get proper attention of the teacher. Summarizing, this is the responsibility of the educational authorities to inspect schools and universities periodically to ensure a right student-teacher ratio and in the event of this ratio changing due to greater number of students, educational authorities must strictly advice schools to hire more teachers and maintain appropriate student – teacher ratio. This shall help all students get better attention of the teachers if not individual attention.

Minimum Wage and Nike Marketing Phrase

Nike is in many ways the quintessential global corporation. Established in 1972 by former University of Oregon track star Phil Knight, Nike is now one of the leading marketers of athletic shoes and apparel on the planet. In 2006, the company has $15 billion in annual revenues and sold its products in some 140 countries. Nike does not do any manufacturing. Rather, it designs and markets its products, while contracting for their manufacture from a global network of 600 factories scattered around the globe that employ some 650,000 people. This huge corporation has made Knight into one of the richest people in America. The Nike marketing phrase â€Å"Just Do It! † has become as recognizable in popular culture as its â€Å"swoosh† logo or the faces of its celebrity sponsors, such as Michael Jordan and Tiger Woods. For all of its successes, the company has been dogged for more than a decade by repeated and persistent accusations that its products are made in sweatshops where workers, many of them children, slave away in hazardous conditions for less than subsistence wages. Nike's wealth, its detractors claim, has been built upon the backs of the world's poor. To many, Nike has become a symbol of the evils of globalization—a rich Western corporation exploiting the world's poor to provide expensive shoes and apparel to the pampered consumers of the developed world. Nike's â€Å"Niketown† stores have become standard targets for anti-globalization protesters. Several nongovernmental organizations, such as San Francisco–based Global Exchange, a human rights organization dedicated to promoting environmental, political, and social justice around the world, have targeted Nike for repeated criticism and protests. News organizations such as CBS's â€Å"48 Hours† hosted by Dan Rather have run exposes on working conditions in foreign factories that supply Nike. Students on the campuses of several major U. S. universities with which Nike has lucrative sponsorship deals have protested against the ties, citing Nike's use of sweatshop labor. For its part, Nike has taken steps to counter the protests. Yes, it admits, there have been problems in some overseas factories. But the company has signaled a commitment to improving working conditions. It requires that foreign subcontractors meet minimum thresholds for working conditions and pay. It has arranged for factories to be examined by independent auditors. It has terminated contracts with factories that do not comply with its standards. But for all this effort, the company continues to be a target of protests and a symbol of dissent. The Case against Nike Typical of the exposes against Nike was a â€Å"48 Hours† report that aired October 17, 1996. 3 Reporter Roberta Baskin visited a Nike factory in Vietnam. With a shot of the factory, her commentary began: The signs are everywhere of an American invasion in search of cheap labor. Millions of people who are literate, disciplined, and desperate for jobs. This is Nike Town near what use to be called Saigon, one of four factories Nike doesn't own but subcontracts to make a million shoes a month. It takes 25,000 workers, mostly young women, to â€Å"Just Do It. † But the workers here don't share in Nike's huge profits. They work six days a week for only $40 a month, just 20 cents an hour. Baskin interviewed one factory worker, a young woman named Lap. Baskin told viewers: Her basic wage, even as sewing team leader, still doesn't amount to the minimum wage †¦ She's down to 85 pounds. Like most of the young women who make shoes, she has little choice but to accept the low wages and long hours. Nike says that it requires all subcontractors to obey local laws; but Lap has already put in much more overtime than the annual legal limit: 200 hours. Baskin then asked Lap what would happen if she was sick or had something she needed to take care of, such as a sick relative, and needed to leave the factory? Through a translator, Lap replied: It is not possible if you haven't made enough shoes. You have to meet the quota before you can go home. The clear implication of the story was that Nike was at fault here for allowing such working conditions to persist in the Vietnam factory, which was owned by a Korean company. Another attack on Nike's subcontracting practices came in June 1996 from Made in the USA, a foundation largely financed by labor unions and domestic apparel manufacturers that oppose free trade with low-wage countries. According to Joel Joseph, chairman of the foundation, a popular line of high-priced Nike sneakers, the â€Å"Air Jordans,† were put together by 11-year-olds in Indonesia making 14 cents per hour. A Nike spokeswoman, Donna Gibbs, countered that this was false. According to Gibbs, the average worker made 240,000 rupiah ($103) a month working a maximum 54-hour week, or about 45 cents per hour. Gibbs also noted that Nike had staff members in each factory monitoring conditions to make sure the factory obeyed local minimum wage and child labor laws. Another example of the criticism against Nike is the following extract from a newsletter published by Global Exchange:5 During the 1970s, most Nike shoes were made in South Korea and Taiwan. When workers there gained new freedom to organize and wages began to rise, Nike looked for â€Å"greener pastures. † It found them in Indonesia and China, where Nike started producing in the 1980s, and most recently in Vietnam. The majority of Nike shoes are made in Indonesia and China, countries with governments that prohibit independent unions and set the minimum wage at rock bottom. The Indonesian government admits that the minimum wage there does not provide enough to supply the basic needs of one person, let alone a family. In early 1997 the entry-level wage was a miserable $2. 46 a day. Labor groups estimate that a livable wage in Indonesia is about $4. 00 a day. In Vietnam the pay is even less—20 cents an hour, or a mere $1. 60 a day. But in urban Vietnam, three simple meals cost about $2. 10 a day, and then of course there is rent, transportation, clothing, health care, and much more. According to Thuyen Nguyen of Vietnam Labor Watch, a living wage in Vietnam is at least $3 a day. In another attack on Nike's practices, in September 1997 Global Exchange published a report on working conditions in four Nike and Reebok subcontractors in southern China. 6 Global Exchange, in conjunction with two Hong Kong human rights groups, had interviewed workers at the factories in 1995 and again in 1997. According to Global Exchange, in one factory, a Korean owned subcontractor for Nike, workers as young as 13 earning as little as 10 cents an hour toiled up to 17 hours daily in enforced silence. Talking during work was not allowed, with violators fined $1. 20 to $3. 0, according to the report. The practices were in violation of Chinese labor law, which states that no child under 16 may work in a factory, and the Chinese minimum wage requirement of $1. 90 for an eight-hour day. Nike condemned the study as erroneous, stating that the report incorrectly stated the wages of workers and made irresponsible accusations. Global Exchange, however, continued to be a major thorn in Nike's side. In November 1997, the organization obtained and then leaked a confidential report by Ernst & Young of an audit that Nike had commissioned of a factory in Vietnam owned by a  Nike subcontractor. 7 The factory had 9,200 workers and made 400,000 pairs of shoes a month. The Ernst & Young report painted a dismal picture of thousands of young women, most under age 25, laboring 10 1/2 hours a day, six days a week, in excessive heat and noise and in foul air, for slightly more than $10 a week. The report also found that workers with skin or breathing problems had not been transferred to departments free of chemicals and that more than half the workers who dealt with dangerous chemicals did not wear protective masks or gloves. It claimed workers were exposed to carcinogens that exceeded local legal standards by 177 times in parts of the plant and that 77 percent of the employees suffered from respiratory problems. Put on the defensive yet again, Nike called a news conference and pointed out that it had commissioned the report and had acted on it. 8 The company stated it had formulated an action plan to deal with the problems cited in the report, and had slashed overtime, improved safety and ventilation, and reduced the use of toxic chemicals. The company also asserted that the report showed that its internal monitoring system had performed exactly as it should have. According to one spokesman: This shows our system of monitoring works †¦ We have uncovered these issues clearly before anyone else, and we have moved fairly expeditiously to correct them. Nike's Responses Unaccustomed to playing defense, Nike formulated a number of strategies and tactics to deal with the problems of working conditions and pay at subcontractors. In 1996, Nike hired Andrew Young, onetime U. S. mbassador to the United Nations and former Atlanta mayor, to assess working conditions in subcontractors' plants around the world. Young released a mildly critical report of Nike in mid-1997. After completing a two-week tour that covered 15 factories in three countries, Young informed Nike it was doing a good job in treating workers, though it should do better. According to Young, he did not see sweatshops, or hostile conditions †¦ I saw crowded dorms †¦ but the workers were eating at least two meals a day on the job and making what I was told were subsistence wages in those cultures. Young was widely criticized by human rights and labor groups for not taking his own translators and for doing slipshod inspections, an assertion he repeatedly denied. In 1996, Nike joined a presidential task force designed to find a way of banishing sweatshops in the shoe and clothing industries. The task force included industry leaders such as Nike, representatives from human rights groups, and labor leaders. In April 1997, the task force announced an agreement for workers rights that U. S. companies could agree to when manufacturing abroad. The accord limited the work week to 60 hours and called for paying at least the local minimum wage in foreign factories. The task force also agreed to establish an independent monitoring association—later named the Fair Labor Association (FLA)—to assess whether companies are abiding by the code. 10 The FLA now includes among its members the Lawyers Committee for Human Rights, the National Council of Churches, the International Labor Rights Fund, some 135 universities (universities have extensive licensing agreements with sports apparel companies such as Nike), and companies such as Nike, Reebok, and Levi Strauss. In early 1997, Nike also began to commission independent organizations such as Ernst & Young to audit the factories of its subcontractors. In September 1997, Nike tried to show its critics that it was involved in more than just a public relations exercise when it terminated its relationship with four Indonesian subcontractors, stating that they had refused to comply with the company's standard for wage levels and working conditions. Nike identified one of the subcontractors, Seyon, which manufactured specialty sports gloves for Nike. Nike said that Seyon refused to meet a 10. 7 percent increase in the monthly wage, to $70. 0, declared by the Indonesian government in April 1997. 11 On May 12, 1998, in a speech given at the National Press Club, Phil Knight spelled out in detail a series of initiatives designed to improve working conditions for the 500,000 people that make products for Nike. 12 Among the initiatives Knight highlighted were the following: We have effectively changed our minimum age limits from the ILO (International Labor Organization) standards of 15 in most countries and 14 in developing countries to 18 in all footwear manufacturing and 16 in all other types of manufacturing (apparel, accessories, and equipment. . Existing workers legally employed under the former limits were grandfathered into the new requirements. During the past 13 months we have moved to a 100 percent factory audit scheme, where every Nike contract factory will receive an annual check by Pricewaterhouse Coopers teams who are specially trained on our Code of Conduct Owner's Manual and audit/monitoring procedures. To date they have performed about 300 such monitoring visits. In a few instances in apparel factories they have found workers under our age standards. Those factories have been required to raise their standards to 17 years of age, to require three documents certifying age, and to redouble their efforts to ensure workers meet those standards through interviews and records checks. Our goal was to ensure workers around the globe are protected by requiring factories to have no workers exposed to levels above those mandated by the permissible exposure limits (PELs) for chemicals prescribed in the OSHA indoor air quality standards. 3 These moves were applauded in the business press, but they were greeted with a skeptical response from Nike's long-term adversaries in the debate over the use of foreign labor. While conceding that Nike's policies were an improvement, one critic writing in the New York Times noted: Mr. Knight's child labor initiative is †¦ a smoke screen. Child labor has not been a big problem with Nike, and Philip Knight knows that better than anyone. But public relations is public relations. So he screen. Child labor has not been a big problem with Nike, and Philip Knight knows that better than anyone. But public relations is public relations. So he have to keep a close eye on him at all times. The biggest problem with Nike is that its overseas workers make wretched, below-subsistence wages. It's not the minimum age that needs raising, it's the minimum wage. Most of the workers in Nike factories in China and Vietnam make less than $2 a day, well below the subsistence levels in those countries. In Indonesia the pay is less than $1 a day. The company's current strategy is to reshape its public image while doing as little as possible for the workers. Does anyone think it was an accident that Nike set up shop in human rights sinkholes, where labor organizing was viewed as a criminal activity and deeply impoverished workers were willing, even eager, to take their places on assembly lines and work for next to nothing? 14 Other critics question the value of Nike's auditors, Pricewaterhouse Coopers (PwC). Dara O'Rourke, an assistant professor at MIT, followed the PwC auditors around several factories in China, Korea, and Vietnam. He concluded that although the auditors found minor violations of labor laws and codes of conduct, they missed major labor practice issues including hazardous working conditions, violations of overtime laws, and violation of wage laws. The problem, according to O'Rourke, was that the auditors had limited training and relied on factory managers for data and to set up worker interviews, all of which were performed in the factories. The auditors, in other words, were getting an incomplete and somewhat sanitized view of conditions in the factory. 5 The Controversy Continues Fueled perhaps by the unforgiving criticisms of Nike that continued after Phil Knight's May 1998 speech, beginning in 1998 and continuing into 2001, a wave of protests against Nike occurred on many university campuses. The moving force behind the protests was the United Students Against Sweatshops (USAS). The USAS argued that the Fair Labor Association (FLA), which grew out of the presidential task force on sweatshops , was an industry tool, and not a truly independent auditor of foreign factories. The USAS set up an alternative independent auditing organization, the Workers Rights Consortium (WRC), which they charged with auditing factories that produce products under collegiate licensing programs (Nike is a high profile supplier of products under these programs). The WRC is backed, and partly funded, by labor unions and refuses to cooperate with companies, arguing that doing so would jeopardize its independence. By mid-2000, the WRC had persuaded some 48 universities to join the organization, including all nine calmpuses of the University of California system, the University of Michigan, and the University of Oregon, Phil Knight's alma mater. When Knight heard that the University of Oregon would join the WRC, as opposed to the FLA, he withdrew a planned $30 million donation to the university. 16 Despite this, in November 2000, the University of Washington announced it too would join the WRC, although it would also retain its membership in the FLA. 7 Nike continued to push forward with its own initiatives, updating progress on its website. In April 2000, in response to pressure that it was still hiding poor working conditions, Nike announced it would release the complete reports of all independent audits of its subcontractors' plants. Global Exchange continued to criticize the company, arguing in mid-2001 that the company was not living up to Knight's 1998 promises, and that it was intimidati ng workers from speaking out about abuses.

Principles of Advertising Study Guide

* Advertising Business – Either using an agency or have your own advertising department/advertise on your own. Government – is a regulatory body, create laws to regulate advertising, things you can advertise and things you cant advertise Cigarete Comercials on TV Lobby – Corp trying to lobby gov. to change for the good, two forces, that think gov, is a positive thing and thinks its good for them to regulate everything and keep things in order. others who think the gov. needs to be smaller, and that they should not have as much control. Society – the culture that your brought up in, tradition, morals and values of the people.Business Finance – the amount of money involved in advertising to promote your product. Marketing – Finding a need that the people want, and filling that need. Advertising – Non personal (to everyone whose watching, not just to one person), Always paid for, communication of info about the companies product, service or idea through the various medias (Television, Radio, Magazines, Internet) Public Relations – figuring out what the people want. Publicity – exactly like advertising but free Personal Selling – what you selling is relatively expensive, and exclusive. Trade shows – where companies get to meet perspective corp. uyers, they can buy a lot of stuff on behalf of their company. Promotions – any inducement or excitement to get you excited about the companies product. (giving out free t-shirts) Operations – whatever the company does Types of markets advertising goes after Consumer Market – things you might see on tv or hear on the radio Business/Profesional Market Government – Trying to sell things to the government, and Profesional – advertising for accounting software, and things that your generally not going to read for pleasure, but there going to be ways to improve your business.Bar Magazines, no one is going to buy the stu ff in that magazine, but owners of restraunts are going to buy it. Business – trying to get your beer on the first shelf, and dealing with the grocery store , or liquor store Integrated Marketing system – Customers hear from a various amount of different markets. (Flagler College business Cards) The consistency so everyone knows what a companies about, and what their image, logo, and slogan is.All state – Have their lil slogan on anything they hand out, â€Å"The Good Hands People†, and have their logo on most things, and have their color that they always use, so it will last in peoples memories and they associate everything their company with it. Art to creating proper advertising to get their message out properly. Theres going to be a persona (Spokesperson), a Medium (Getting the message out with a catchy phrase or something) , and the way people will receive it. Spokesperson – Someone that speaks on behalf of a company. hey can be a person (like William Shatner for priceline) but they can also be a persona (like Ronald Mc’Donald), pretty much any person that’s getting the companies message out. They should be catchy, and will use catchy phrases (subway foot-long song, or I want my Baby Back Ribs) You need that artistic eye, certain color combos can make all the difference and mean completely different things. A lot of times they will advertise things as being bigger, and sounding better than they are. A lot of companies will take out some of the product, Bags of potato chips, making a beer only 11. 5 ounces rather than 12. out of 5 dentist recommend it ( that’s not a lot of dentist out of the millions that exist) Price Economic Argument – Argument that competition Exclusive Distributions – you need to buy the right to sell a certain product in that area. Advertising perpetuating stereotypes – advertising can sometimes bring out stereotypes for certain people. They have women in the kitchen in commercials, and men always doing the work. Ad agencies need to regulate themselves, they actually meet every year to figure out what they can do, and what they can’t do. FTC – Federal trade commission deal with any company that does trade with more than one state.If there is not trading involved in more than one state than it is generally just regulated by the states capital The FTC will tell people to not air something, and make sure that nothing offensive is on the air. If you don’t sign the consent to agree then you have make another commercial correcting your mistake, and putting out a new ad with the correction on your expense. (corrective advertising) Puffery – is exaggeration, and that is something you can do. * self actualization – becoming the top , ceo, of a company, you’ve proven to the world that your at the top, and are very successful. Generally these people will buy the expensive cars, boats, jets, watches, and ec t. * Assumption Factor – Never assume you know what your target is, or what they want. * Task Utility – product or service that does something for you, makes doing a task easier. * Premade food * Form utility – when a manufacturer puts together hundreds of pieces that you would not want to do. * A computer being built for you, a chair, ect. * Time Utility – product or service available when you want it. * Can’t buy a Harley Davidson right away, going to be at least a few months to get one. * Where utility – the product is available where you want.This includes being delivered to your house. * â€Å"Perception is the reality† – if you perceive a product to be better, than it is. * * Ch. 1 Advertising Today Advertising lets customer aware of a product, comprehend what its used for, and see how it is different from its competition. Info will help create a conviction, that this product is better. It will then give the customer a de sire to buy from this retailer, and help them take the action to buy a product. Integrated Marketing Communications (IMC) – when consumers receive consistent and positive messages about a brand.Marketing Communications – Tools that companies and organizations use to initate and maintain contact with their customer, clients, and prospects. Advertising – is the structured and composed nonpersonal communication of information, usually paid for and usually persuasive in nature, about products by identified sponsors through various media. A type of communication, structured, and composed Directed to groups of people, not individuals so its nonpersonal Most is paid for by sponsors Public service messages – carried at no charge because of their nonprofit status. Product – encompasses goods, services, and ideas.Medium – the channel of communication advertising reaches us through. Word of mouth (WOM) – when you tell somebody how much you like a product. Becoming more popular thanks to twitter and facebook. Mass Media – the traditional way of advertising. Addressable media – direct mail. Interactive media – the internet Nontradional media – shopping carts, blimps, and dvds. * Two types of dimensions in advertising * Communication dimension – how advertising is actually a form of structured, literary communication. Marketing dimension – explains the important role advertising plays in business.Economic dimension – shows how and why advertising evolved as it did. Social and ethical dimension – considers the impact of advertising on consumers, businesses and society. * Source Dimension Sponsor – the company advertising a product or idea, legally responsible for the communication and has a message to communicate to actual consumers. Author – the sponsors ad agency, a creative team at an ad agency. Persona – real or imaginary spokesperson who lends so me voice or tone to the ad. * Message dimension Autobiographical – tell a story about myself to you the imaginary audience.Narrative messages – a third-person persona tells a story about others to an imagined audience. Drama message – the characters act out events directly in front on an imagined epmpathetic audience. * Reciever Dimensions Implied consumers – Adressed by the ad’s persona, imagined by the ad’s creators to be the ideal consumers who accept uncritically the arguments made by the ad. Sponsorial consumer- the gatekeepers who decide if the ad will run or not, group of decision makers at the sponsors organization. Actual Consumer – people in the real world who make up the ad’s target audience.They will actually get to see and hear the ad . * Feedback – completes the cycle, verifying that the message was received. * Every business has three broad functional division – Operations, Finance, and Marketing. * Marketing – the process of planning and executing the conception, pricing, distribution, and promotion of ideas, goods, and services to create exchanges that atisfy the perceived needs, wants, and objectives of individuals and organizations. Consumer advertising – most advertising falls under this category. Retail advertising – advertising sponsored by retail stores and businesses. PSA (Public Service Announcements) –Industrial / Business Markets Business to business – rarely seen by the actually consumer, because they will generally specialize in one department. Kitchen Magazines for restraunts. Trade Advertising – Wholesalers, retailers, and dealers. Generally a product is sold to these companies so they can get rid of a mass quanity at one time. Professional advertising – advertising aimed at teachers, accountants, doctors, engineers, ect. Used to convince professionals to recommend or prescribe a specific product or service, to b uy brands of equipment and supplies for use in their work, or to use the product personally.Agricultural advertising – to promote products and services used in agriculture to farmers and other employed in agribusiness. Price strategies – Image advertising – creates a perception of a company or a personality for a brand, is rarely explicit about price. Almost never mention price, but always say how cool it is to have their product. Sale advertising – used most often by retailers, dealers, and shops to call attention to a recent drop in the price of a brand or service. Place : Global, international, national, regional, and local.Promotion Personal selling – face to face interaction or telemarketing. Usually high priced items like cars or real estate. Product advertising – service and goods Nonproduct advertising – sells ideas Noncommercial advertising – seeks donations, volunteers, or changes in consumer behavior. Awareness adver tising – wants to create an image for a product and position it competitively with the goal of getting readers or viewrers more aware of their product. Action advertising (Direct-response) – toll free number for immediate information.Sales promotion – coupons, free samples, contests, or rebates on the purchase price. Public Relations – Collateral materials – brocures, catalogs, posters, sales kits, instruction booklet, ect. Art Director – responsible for visuals Creative Director – responsible for all creative departments Typically comes from the copy side * Graphic designer – works on the visuals * Rainmaker – acountive executive, they pitch what advertising agency can do * Copy-writer – responsible for the slogan, and words * Resignance – you get what the ad is trying to get through, or say to you. Relevant – good ads should all be relevant, has some type of reason. * What good advertising should d o : Inform – where is product, how much does it cost, what is it, Persuasion – should give you reasons to try product or service Reminding – have to continue to let you know that they are still there. Objective statement – what ad is trying to accomplish, are you solving a problem, something that makes life easier Supportive Statement – what can you put in there to support what you are saying Getting a spokesperson, athlete to go in there to back up the product.Primary demand – demand for the entire product class Selective demand – demand for a particular brand. Abundance principle – states that in an economy that produces more goods and services than can be consumed, advertising serves two important purposes. Keeps consumers informed of their alternatives (Complete information) It allows companies to compete more effectively for consumer dollars (Self-Interest) * Why people are against advertising Short term manipulative argum ents – saying advertising is deceptive or manipulative.Puffery – exaggerated, subjective claims that can’t be proven true or false, such as â€Å"the best†, or â€Å"the only way to fly†. Non-product facts – aimed not at the product but the consumer, and does not really give any information about the actual product. Such as â€Å"Pepsi. The choice of a new generation†. Social or enviormental impact of advertising – long-term macro arguments. Manipulates us into buying things we don’t need. Replacing our citizen democracy with a selfish consumer democracy.Only 17 percent of consumers view advertising as a source of information to help them decide what to buy. Too much advertising. * Ethical – means doing what is morally right in a given situation. * Social responsibility – doing what society views as the best for the welfare of people in general or for a specific community of people. * CARU (Childrens Advert ising Review Unit – promotes responsible children’s advertising and to respond to public concerns, self regulatory guidelines for childrens advertising. * Fair information practice principlesNotice – requires website to clearly post its privacy policy Choice – consumers level of control over being profiled and how their information is used Access – ability for consumer to access information collected about them and make amendments to it. Security – requires advitisers to protect the data they have colleceted Enforcement – requires all industry members subject themselves to third party monitoring by independent company. FTC – major regulator of advertising for products sold in interstate commerce.Substantiation – supporting data and scientific studies to their products purpose Endorsements – the person promoting the product can’t be misleading, he has to actually use that product himself. Affirmative disclos ure – gives health warnings Remedies for unfair advertising Consent decree – document the advertiser signs agreeing to stop the objectionable advertising Cease and desist order – when consent decree wont be signed ftc may prohibit further use of the ad. Corrective decree – explains how their ad was wrong before and corrects the misleading mistake.FCC – responsible for protecting the public interest and encouraging competition. Four distinct groups in advertising Advertisers – companies that sponsor advertising for themselves and their products. Advertising agencies – helps the advertisers plan, create, and prepare ad campaigns and other promotional materials. Suppliers – assist both advertisers and agencies in preparing advertising materials. Media – sell time and space to carry the advertisers message to the target audience.Local advertising – targeting customers in their geographic area. Sometimes called retail advertising because retail stores account for so much of it. Dealers or local franchisees of national companies. Stores sell a variety of items. (grocery, department stores, convience) Speciality businesses and services (Banks, restaurants) Governmental, and nonprofit organizations. Product advertising – promotes a specific product or service Regular price-line advertising – informs consumers about services or merchandise offered at regular prices.Accounting firms might use regualar price-line Sales advertising – placing items on sale and offering deals Clearance advertising – making room for a new product line getting rid of the old stuff at a low price Institutional advertising – create a favorable long-term perception of the business as a whole, not just of a particular product or service. â€Å"Im loving campagn†. More of an idea Classified advertising – locate and recruit new empoyees, offer services, sell or lease merchandise.In tegrated marketing communications – (IMC) joining together in a consistent manner everything that communicates with customers. Co-op advertising – build the manufacturers brand image and to help its distributors, dealers, or retailers make more sales. Newspapers – want to advertise in newspaper because a lot of people, different sections for different types of ads, and can also be local. Disadvantage – poor production, no high quality animation and mostly black and white. Ad is normally short termed, because new paper comes out everyday.

Gambling and crime Essay Example | Topics and Well Written Essays - 2250 words

Gambling and crime - Essay Example The gambling industry entices people to try gambling in order to get them hooked and become addicted and the industry knows full well the consequences of an addiction. A former lawyer of John Ascuagas â€Å"Nugget† embezzled $3 million for his gambling habit and in another case, the accountant of a doctors clinic stole some $2.3 million from her employer to feed her habit of buying lottery tickets, as much $6,000 per day. She had pleaded guilty and was charged with a second-degree grand larceny. As it becomes an addiction, some decent, reasonable, respectable and rational people are really tempted to steal money and also commit other far more serious crimes like murder for their gambling addictions. Gambling involves taking the odds or probability of a certain outcome to be occurring. Gambling can take many forms such as horse racing, card games, table games, slot machines, dog racing, sports betting (boxing, basketball, soccer, etc.) and even on the Internet. Some forms of gambling are considered tame or mild in nature such as sweepstakes, lotteries and bingo games because the bet amounts are not very large although prizes can get very big. There are warning signs of a gambling addiction and people should be made aware of them. Planning a future action is a healthy attitude. This is the same principle involved when businessmen and investors go into business in order to earn money. This speculative attitude generates investments and jobs such as in the form of insurance contracts (fire, auto, marine, flood, etc.), life annuities and the modern and very complex forms of contracts like financial derivatives and stock options. The futures market in agricultural commodities is a very good example of gambling based on speculation but minimizing the risks involved. However, this paper will explore and discuss the troubling issues associated with types of gambling in the strict sense of the word. This paper looks at the problems generated by the uncontrolled urge

Treatment and Prevention of Hepatitis C in Adult Population Essay

Treatment and Prevention of Hepatitis C in Adult Population - Essay Example Since the transmission of HCV is similar to HIV and IDU is the primary risk factor for HCV infection, and coinfection of these two blood borne diseases cause morbidity and mortality, harm reduction approach and the strategies that addresses the social and economic harms that impact an individual, community, or society are paramount in preventing the epidemic. Hepatitis C is the major cause of chronic hepatitis, cirrhosis, and liver cancer in the United States and the identification of Hepacivirus of the family Flaviviridae in 1989 led to an explosion of research and development of specific tests for detecting anti-HCV and HCV RNA as well as recognizing it as a common cause of chronic liver disease. (Chapter 5: Viral Hepatitis, p. 61). According to WHO estimates there are "about 180 million people, some 3% of the world's population, are infected with hepatitis C virus (HCV), 130 million of whom are chronic HCV carriers at risk of developing liver cirrhosis and/or liver cancer" and three to four million persons are newly infected each year, making HCV a "viral time bomb". It is also estimated that 3.9 million Americans are infected with HCV, with 'prevalence rates as high as 8-10% in African Americans'. The route of HCV transmission is mainly through injectable drug use that account for nearly 90% of new infection, as well as through blood transfusion and perinatal infection. (WHO2). (Initiative for vaccine Research (IVR). 2008). It is estimated that there are 1-2 million homeless youth in the United States and a national study of homeless youths found that "68% are 15-17 years old; 57% are Caucasians; 17% African American; 15% Hispanic; and 12% from other ethnic origins" (Nyamathi et al, 2005). It is found that approximately 16-25% of those infected with HCV are co-infected with HIV, and due to shared risk factors HIV/HCV co-infection is common among homeless and urban poor. Edlin & Carden (2006) argue that though HCV is four times more prevalent than HIV infection and viral transmission is uncontrolled among IDUs with 'incidence rates ranging from 16% to 42% per year' the efforts of the US government to "control this pandemic have largely ignored the population in whom its biology and epidemiology are being played out with the most devastating effects." (Edlin & Carden, 2008). The Disease: Its detection and symptoms Hepatitis is an inflammation of the liver and its symptoms include jaundice, dark urine, extreme fatigue, nausea, vomiting, and pain. There are five major types of hepatitis viruses, named A, B,C, D, and E type, of which A and E are caused by ingestion of contaminated food or water, and "hepatitis B, C, and D usually occur as a result of parenteral contact with infected blood fluids." (Hepatitis. 2008). HCV infection is categorized into acute and chronic and specific symptoms in the acute stage are nausea and vomiting, fatigue, loss of appetite, fever, head ache, and

Finance Essay Example | Topics and Well Written Essays - 2250 words

Finance - Essay Example Overview The term liquidity refers to the ability of the firm to cover its debt obligations through its liquid assets, without incurring a large loss. For example, if a firm wants to repay its outstanding commercial paper obligation of one month, then it might issue new commercial papers instead of selling its assets (The Economist 2001). Thus, liquidity risk involves the inability of the firm to meet its current and its future collateral needs and cash flows, without affecting the overall financial operations of the firm (FRBSF 2010, 1). The financial firms are generally sensitive regarding funding the liquidity risks, as transforming debt maturity such as purchasing assets with the short-term deposits, funding the long-term loans or debt obligations, are the major business areas. As a response to the liquidity risk, the financial firms generally maintain and establish a system for liquidity management. This system helps in assessing the prospective requirements of funds and also en sures that the funds are accessible during the appropriate time. Before moving on to discuss the solutions firms prepare to meet out the liquidity risks, we will discuss the types of liquidity risk that prevails (Nikolaou 2009, 10-11). Figure 1 Source: (Fiedler 2002). There are two types of liquidity risks that would be discussed in this study, namely: a) Market Liquidity Risk, and b) Funding Liquidity Risk. The Market Liquidity Risk means that the assets cannot be sold in the market due to constraints in liquidity in the market. It can be due to widening of the offer spread, expansion of holding period, or making unambiguous liquidity reserves. The Funding Liability Risk means having risk when the liabilities cannot be met, when they are due, can be met when the price is uneconomic, or is systematic. There are different situations or causes due to when liquidity risk can be assessed. The situation when not a single buyer is available in the market to trade for an asset or assets, l eads to liquidity risks. Liquidity risk can be denoted as a financial risk which occurs due to uncertain liquidity. Liquidity risks might arise when the credit ratings of the firm falls, or when it experiences a sudden outflow of cash (Drehmann, and Nikolaou 2009, 4-5). The recent disintegration of several huge financial institutions reveals the critical nature of the liquidity risks and also depicts the critical role that it plays for the regulators, globally. The Bank of International Settlements (BIS) was among the first to adopt the comprehensive regime of testing liquidity risk and protecting the institutional stakeholders. The Financial Service Authorities (FSA) has also issued policy statement PS09/16, for strengthening the liquidity standards. Liquidity risk can be regarded as both eccentric as well as systematic. It plays a crucial role for the banking entities and the other industries too. Liquidity risks may vary between assets, liability and time. It includes the institu tional stakeholders like the creditors, debtors, owners, etc (Oracle Financial Services 2009, 2-4). Risk Measurement The recent fluctuations in the financial market included the payment system and several banking processes which are directly related to short-term forecasting. The control system should be such so that it can measure the liquidity risks and the performance with relation to the models utilized for market and credit risks.

Racial Disparities in Criminal Justice Research Paper

Racial Disparities in Criminal Justice - Research Paper Example Racial disparity in the criminal justice system is a situation in which the numbers of individuals from an ethnic group or race under the control of the criminal justice system is disproportionately greater than their numbers in the rest of the population. Such a situation casts a bad light and suspicion upon the criminal justice system and as a result calls for intervention and study. Through reviewing literature from the turn of this millennium this study will demonstrate the presence and extent of racial disparity currently within the criminal justice system stages. This will involve a review of the statistics of the situation, causes of this racial disparity, its impacts and possible interventions. Racial disparity within the criminal justice system will then be discussed in terms of ethics and how it transgresses the principals and foundations on which America was built. The Statistics The figures available on this issue paint a grim picture of the situation indicating that the racial disparity is as a result of cumulative decisions made in the criminal justice system. While African Americans make up only 12.7% of the US population they contribute 48.2% of all adults in the American jails. Interestingly, while Whites contribute 72% of all drug abusers and African Americans only 15%, the latter are arrested more for drug abuse. Latinos make up 18.6% of the population in prisons and 22.5% of all arrested drug abusers when they are only 11.1% of the entire population. 4% of all American Indian adults are under control of the criminal justice system which is more than twice the Whites while considering the considerably small numbers of American Indians today. 42.5% of all prisoners awaiting capital punishment are African American which translates to over thrice their national population. As of 2003, the rate of imprisonment per 100,000 for every race was 2,526 for African Americans, 997 for Latinos, 709 for American Indians and only 376 for Whites. The chances that an African American person will be incarcerated at one point in their lifetime is 32%, 17% for Latinos and 6% for Whites which translates to 1 in every 3 African Americans, 1 in every 6 Latinos and 1 in every 17 Whites. The emerging trends in drug crime indicate that colored women are the highest growing proportion in jails (Coker, 2003; Pager et al, 2009). Nearly 10% of young African American men (24-29 years) were in jails while 25% of African Americans aged 18-34 were under the criminal justice system compared to 6% whites in the same age brackets at the turn of the millennium. When compared to other criminal justice systems around the world, the rate of African American imprisonment can only be termed as astronomical by world standards (Pager, et al., 2009). Breaking the figures down according to stages of the criminal justice system reveals that there is racial and ethnic disparity during arrests. Minority drivers are stopped and searched for contraband at higher rates. 5 .2% of African Americans and 4.2% Latinos are stopped by police when driving as compared to 2.6% of Whites. Law enforcement officers are more likely to conduct a search on a vehicle with African Americans as occupants (15.9%) and Latinos (14.2%) than Whites (7.9%). 75.7% of African Americans and 79.4% of Hispanics are likely to be given tickets when stopped compared to

Litigation v. Mediation Essay Example | Topics and Well Written Essays - 500 words

Litigation v. Mediation - Essay Example f a lawsuit, case, or controversy – which is a contest authorized by the provisions of law, and at a court of justice – which is aimed at the realization or the pursuit of enforcing the breached rights or the expected parts of the deal in question. The participants in such a case are the plaintiff and the defendant – who within the subject of the lawsuit are referred to, as the litigants. Mediation on the other hand, is an ‘alternative dispute resolution’ model, which is used to complement or substitute other modes – as a way of assisting the disputants reach an agreement, through the creation of improved dialogue between them. In such a case, the parties involved are to consider the mediation process – as resolving the dispute to their mutual advantage – besides facilitation by an impartial mediator. Considering that the dispute is of a business nature, it is conclusive that the right or the duty to be enforced must have some financial value – as well as a time-span within which its value may be perceived. Therefore, in the case the legal pursuit is to extend to the level – which the value of the legal practice or pursuit exceeds the value of the breached agreement; then from a business perspective, the pursuit will not be logical or rational. On the basis of this argument, mediation as opposed to litigation is a better option; as it will require less time and cost incurrence. The advantages that Alexander is likely to enjoy, in the case he chooses to take mediation instead of litigation include the following: A timely resolution of the dispute, which is basically – because the neutral and experienced third-party will push for increased dialogue between the disputants, from which better understanding of the dispute premises will be established, therefore making the case easier to resolve. In this regard, the better understanding as well as the pursuit for voluntary agreement and mutual advantage will enable the disputants to arrive at

Unit 3 Case Mangement Seminar Research Paper Example | Topics and Well Written Essays - 250 words

Unit 3 Case Mangement Seminar - Research Paper Example In my case, I use my cultural practices to relate with my customers. A proper dress code is the first impression that attracts customers to wards my business. When interacting with my customers, I often uses motivational languages thus I am able to encourage customers to buy products that are by giving out reasonable discounts. Culture biasness is common in many business organizations. These practices create drift between the rich, those who live in the middle class society and the poor. The cultural practice of a business determines the type of customer expectations. Some business tend to trade on goods and services that are only affordable to people of high social classes, while others can accommodate both the rich and model class social groups. The cultural practices are universal thus free from culture bias. Business organizations often advance easily if they adapt a culture that is free from bias. Culture bias discourages clients from investing as well as trading withy certain business organizations. Human service workers discourage clients from trading if they engage in cultures that accommodate business. Non-verbal communications are used to define a business culture. They are the daily business activities that are used to draw

Essentials of Strategic Management Research Paper

Essentials of Strategic Management - Research Paper Example They offer an online service of renting movies whereby one has to subscribe. There are subscription fees that are usually paid on a monthly basis. Most of the industries that embrace technology, more so electronics, are known to be very competitive. This is the same case with rental industries where Netflix is facing stiff competition from some other organizations like Blockbuster who are offering almost the same services. Netflix has to lay down critical strategies that will help it to retain its position in the movie industry. There is a need to have a fertile basis of technology to ensure that they are able to cope up with technology that is changing at the speed of lightning (Barringer, 2010). Thesis Statement Rental industry is one of the risky businesses to venture into because of some reasons. The main reason is that it deals with the technological skills that you employ and how. An organization may make any cash from this trading while another one may incur high losses at the same time. This paper will look at some essential ways and methods that can be employed in this business. It will be based on a sample case study of Netflix, which is one of the successful tradings in the industries. As managers of other organizations in the industry, what would be important to consider being successful? Improvements do not come up abruptly thus there is a procedure that must be followed to the latter to get to that better place. This is only through proper planning and proper research. All the companies in this strategy have their own marketing structure that ought to be structured in accordance with changes in the market and technology. All this will be analyzed in depth with regard to Netflix (Olsen, 2011). Netflix Current Situation As compared to other companies in this industry, Netflix has the highest number of subscribers. The sales that are done on a daily basis are high however at times they have been observed to be low. The market structure is therefore n ot constant. In 2002, a case study carried out showed that there were around 190,000 discs sold per day to the 670, 000 subscribers. This number of subscribers grew from that number to around 8.4 million at the end of 2008. Currently, the number of customers is estimated to be 23 million. The company is the highest selling in America covering over 75% of the continent. The company has not yet ventured to other business places apart from America however it has some plans that are still cooking to venture into United Kingdom (Olsen, 2011). The subscription fee in this industry, usually on a monthly basis has been changing but the range is between $4.99 and $17.99. The main reason that this has been changing is the fluctuations of the subscription fee in other rental companies more so Blockbuster who has been working hard to ensure that their subscription fee is below that of Netflix. To fight the changing monthly subscription fees, the company set a one percent deduction fee on the to tal based on the overall annual fee. There are also Netflix plans in place for people to rent many DVDs will get a reduction in the total. This company is offering rental services online; people can also watch movies online, together with TV shows. Online streaming is aimed at getting users who rely on other electronics apart from computers, for instance, iPod users, and smartphones users.

Mill vs. Raz Essay Example | Topics and Well Written Essays - 1000 words

Mill vs. Raz - Essay Example Guided by 'one very simple principle' he outlines an argument for a system, which he believed, provided the best possible environment for individual and social progress (Mill, 1991, p.30). Mill advocates for human's shortcoming and their incompleteness of knowledge, which means that the "truth" is not always the truth. Based on Mill's assertions, any one group who attempts to coerce another group or individual is breaching individual liberty, which leads to the stagnation of the intellectual community. The key to progress lies in the condition of seeking the best span of human experience and development. The individual in the Millian liberal society is engaged in 'experiments in living'; attempts to find "new, deeper or merely different sources of happiness in life", uncoerced by the state or fellow individuals. (Ryan, 1991, p.166) The most important aspect of well-being is to note that the individual has complete authority in matters regarding themselves, society does not have the r ight to restrict the individual, as long as the actions of the individual is not causing harm to themselves or others. Liberty is, therefore, an integral component of well-being; liberty provides the best possible conditions to achieve the "permanent interests of man as a progressive being." (Mill, 1991, p.31) In Joseph's Raz's The Morality of Freedom, his theory does not rest on a human being's fallacies but instead he argues that the individual's w... Raz creates an idea of the individual's well-being results from not just one being but that individual's situation within a culture, history, and society. He makes the simple argument that if a government can make a universal decision to prevent murder, then the state can act in defense of moral reason. Raz states that 'governments should promote the moral quality of the life of those whose lives and actions they can affect.' (1988, p.415) He advocates that the individuals will adapt to society's preferences and then will be able to have a good life, striving for well-being. Raz declares that the importance of a liberal society does not rely on the individual choice, as it does for Mill, but instead the individual should be able to choose between various alternatives that have been determined and supported by the society where the individual resides. A person's well-being should not be dependant on how the individual lives their life and how they determine their actions to be of vale but rather their well-being rests on how living a life is valuable independent of how it helps the individual. As he explains, an "autonomous life is valuable only if it is spent in the pursuit of acceptable and valuable projects and relationships." (1988, p.417) To best illustrate Mill and Raz's ideals for an individual's well-being take for example an person's addiction to alcohol. Through Mill's theory, the demand and priority for an individual's liberty in this self-regarding conduct and the belief in human experimentation does not accrue any benefits for the individual. It is highly unlikely that the majority of individuals will benefit from a life influenced by drugs. Raz on the other hand argues that the life of a drug addict is clearly inferior in terms

Patient Rights Essay Example for Free

Patient Rights Essay Patient rights are also human rights. Every patient deserves to be treated respectfully and with every intention of helping patients improve their health. Due to past historical events, there was a need for the creation of two documents that give patients protection and rights when it comes to clinical experiments. These events were experiments that were conducted unethically and violated human rights. The names of these documents are: The Nuremberg Code and The Belmont Report. The first one that was created in the 1940’s was The Nuremberg Code which relates to the events that happened during the holocaust. Nazi physicians were responsible for performing malicious experiments on prisoners in the concentration camps. The Belmont Report was created later after the discovery of the Tuskegee Syphilis Experiment. In this study, which was conducted from 1930-1972, African American men were deceived into thinking they were being treated for syphilis when they actually were not. Even after the discovery that penicillin was an effective treatment for this disease, many men were still left untreated and left to die unnecessarily. The â€Å"Doctors’ Trial† was one of the main trials conducted after World War II in Nuremberg, Germany. This was an international trial made up of judges from the United States, Britain, France, and the former Soviet Union. This trial involved 23 defendants, 20 of them being physicians, all accused of torturing and murdering prisoners in concentration camps with the use of medical experiments. Sixteen of the 23 defendants were found guilty and sentenced to death, life in prison, 25 years, fifteen years and ten years in prison. The remaining seven were acquitted. After conclusion of the trial, the judges felt a strong need for an additional way to protect human research subjects. This is when they created the ten research principles now known as The Nuremberg Code. As the Hippocratic ethics was great for physician-patient relationships, it did not fit so well with scientific research. Everything changes because the primary goal of the physician is no longer the patient, but instead the results of his or her experiment. The Nuremberg Code solves this conflict. The first and main principle of the Nuremberg Code makes the voluntary consent of human subjects absolutely essential. Experiments should not be random or unnecessary; they should be in search of beneficial results. It should be based on experimentation of animals and help prove positive effects are the result. Mental and physical suffering or injury should absolutely be avoided. No study shall be performed when there is a risk of death or severe injury involved. The potential risks should never exceed the potential benefits. Sufficient preparations must be made and acceptable facilities must be used in order to protect against injuries, disabilities, or death. Only qualified individuals may perform such studies and the highest possible skill and care shall be applied throughout the entire process. Subjects will always hold the power to end the experiment at any time they feel is necessary for their own well-being. And last of all the scientist in charge must end an experiment as soon as there might be any reason to believe that there is a possibility that continuation of the study could result in injury, disability, or death to any of the participating subjects. In Tuskegee Syphilis Experiment the Nuremberg Code was disregarded and still continued to be sponsored by the U. S. government. The reason for this may be because the code and principles were not regulated and could not be enforced by laws. In 1978 the Department of Health and Human Services (HHS) published the Belmont Report. The Belmont Report is made up of three basic ethical principles which are: respect for persons, beneficence, and justice. All persons asked to be in a study should have total autonomy and complete control of their decisions. For beneficence researcher should not only attempt to achieve maximum benefits for the subjects, but also minimize all risks. Justice states all people should be treated fairly and benefits and problems should be distributed fairly as well. These are now regulation guidelines and remain the main focus to protect humans as subjects. To this present day the Belmont Report continues to be used as a reference for institutional review boards (IRB) which ensure that human based research follow all ethical regulations and guidelines. Anytime experiments on humans are being conducted, ethical issues will always be involved. With the creation of these two documents it helps determine whether a clinical trial is ethical or not. First of all the experiment must have some kind of social or scientific value in which it may produce results that will benefit health and well-being or even increase knowledge on a certain subject. Only qualified scientists or physicians are allowed to perform such studies using methods and techniques that will produce reliable results. Subjects must be chosen fairly. The risks of the study must be minimized while the benefits maximized, or at the least benefits and risks should be proportionate. Informed consent means subjects will be informed on the purpose of the research, its risks, benefits, and alternatives. This helps to make informed decisions and also subject have the power to end the study at any time. Subjects will also be provided confidentiality, information on any new discoveries and results of the studies. These documents not only provide protection and safety for test subjects, but it also protects certain individuals from being participants in any studies. There are certain populations or groups of people that cannot be selected for studies for certain reasons. Adults are preferred subjects over children. Individuals must be competent in order to give informed consent, which would eliminate using mentally ill people as subjects for a study. Prisoners should also be excluded as test subjects as they are already in a forced position. There must be a certain criteria met in order to use any of these subjects in a research study. I find it to be a real shame that the Nuremberg Code was overlooked in many studies performed in the United States after its creation. It was not regulated and it was not against the law to not follow these codes of ethics on research. Although it took a series of unfortunate events to come up with the Belmont Report, it sure is nice to know there is protection now for human test subjects. The creation of Institutional Review Boards (IRB) to enforce that studies are being conducted under ethical guidelines and researchers are following these rules was essential in helping to improve the search for better health in this country. This will continue to guide our effort as well as change when other issues arise. The good thing is that I do not seeing it ever changing much more as all the most important ethical issues is covered by these documents when performing any research on human subjects.

Role of a Smooth Economy

Role of a Smooth Economy In an economy, in order for a country to have balance it must have stability and growth to become successful and function properly. The economy is very important, as it is as defined as the wealth and resources of a country or region. A strong economy brings wealth and stability to consumers, borrowers, purchasers, savers, and lenders. We also need a balanced financial system that runs smoothly to go along with a strong economy. One might ask what is the financial system? It is a network of markets and institutions that bring together households, businesses, and governments. When the financial system begins to struggle or becomes unstable everyone is affected. Chaos is an inevitable result when the financial system is not stable and we face the possibility of recessions. The financial system helps the economy keep a healthy status but lack of control and other factors such as corruption, greed, and too much debt have kept it from functioning properly. Financial systems provide great services such as data on risk sharing, liquidity and information. The risk in finance are high because many of the times we are dealing with uncertainty as it is difficult to determine how well organizations may do. The services that the financial system provides is the fact that it allows risk sharing and this helps spread and transfer risk. The transferring of risk is a good thing because it ensures not just one entity is affected when a great loss occurs. Risk sharing is a great feature the financial system provides and â€Å"it allows savers to hold many assets† (Hubbard, O’Brien, 2012 pg 13). The second service the system provides is liquidity. Savers and borrowers are provided with ease that an asset can be exchanged for money. Lastly we know that the financial system provides information and when dealing with money it is important that everyone involved is well informed on the loss or risk that one faces. The services the financial system provides are essential to the functioning relationship between everyone involved and are a great benefit that citizens receive. It has been demonstrated that when these things are not watched and monitored financial crisis happen. Countries with severe poverty have a weak financial system in place. In order for everything to run smoothly positive relationships much exist. Banks must have loans in order to collect interest rates to keep running and consumers must be well informed and protect themselves from abuse and fraud. It is all a revolving relationship where everyone involved benefits in some way and in order for it to continue, the parties involved must remain courtesy and no abuse of one another. Countries such as Mexico and Greece are an example of just what a bad economy looks like. Greece is currently facing a difficult situation as they have major debit issues and banks are running out of solutions. In the United States as we all know, we have been forced to face financial crisis in the past with the Great Depression and the Great Recession of 2007. In both situations the country faced unemployment and a rise in poverty that at times seemed difficult to overcome. In The Recession of 2007, the financial system was unstable and banks struggled to conduct business as necessary but did not have bank failure as in the 1930’s. Liquidity and funding was a problem that was a major key role in both time recessions. Although the economic decline was not as severe in 2007 as in 1930 the country was very much hurting. We must note both crises were preceded by innovations in consumer finance in the 1930s we saw installment on consumer credit and in the 2000’s banks ramped up lending in regards to real estate and securitization of mortgages. (Geewax, npr.org). The biggest difference of course is that the Great Depression lasted approximately 43 months oppose to the Great Recessi on that lasted 18 months. A big difference noted between the two crises was the United States response; in The Great Depression they raised taxes and cut spending and in 2007, they issued a Federal stimulus plan that gave fiscal relief to states to lessen the impact if tax increases. Both of these hard times displayed what a lack of financial stability looks like and just how far debt can take the country. Inflation and bad planning leads the countries to suffer banks have a hard time climbing out of the debt. Improper lending and borrowing really created a problem that occurred in 2007 and many did not thing the United States would recover. The Federal Reserve is a large bank that lends the United States money and throughout history they have obtained more and more control. Although many argue whether or not they should exist or have power the reality is they have much control over the financial markets as they play a major role in regards to money or U.S. currency. In 2008 the SAFE Act was established as a precaution to stop some issues from occurring. The SAFE Act put into effect the federal registration requirements that an individual that is acting as a residential mortgage loan originator and is employed with an company that is regulated by the Board of Governors of the Federal Reserve System, Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, Office of Thrift Supervision, National Credit Union Administration, or the Farm Credit Administration. (Federalreserve.gov). They also developed the Troubled Asset Relief Program in which the government attempted to address and improve the s ubprime mortgage crisis, the program for the most part ended in 2014. They also implemented the federal takeover of Fannie Mae and Freddie Mac (treasury.gov). The housing market needed a lot of improvement after the crisis that was faced. In the current years it has become more difficult to purchase a home than before as requirements set in place are attempting to stop people from buying homes they simply cannot afford. Changes such as robust supervision and regulation of financial organizations are also among implementations for improvement. Among all of the supervision changes, we also witnessed new employment roles in the Federal Reserve in charge of supervising firms that could be a threat to financial stability. They established changes so that consumers would not be subject to financial abuse in hopes of winning back the trust of Americans across the country that lost faith in the government. Other changes were also implemented and I believe it was all in efforts to avoid the crisis from repeating itself. Many consider the changes the government made to be too much, but with what we have seen happen in past years these changes were very much needed. In conclusion, the financial system is complex and has many implications when things are not running smoothly. Factors such as loans and interest rates are what keep things flowing and when something is off balance everyone feels it one way or another. History shows us what happens when things are not ran smoothly and control is lost to inflation and greed. All of the parts that make up the financial system are important, as we must have risk, liquidity, and information to function. It is important that we have supervision in place and that risk is always assessed when dealing with borrowers and savers. The government continues to attempt to keep things running smoothly so that history does not repeat itself and money does not lose value, now how long this will last is unclear. References Financial Regulatory Reform. (n.d.). Retrieved June 29, 2015. Geewax, M. (2012, July 11). Did The Great Recession Bring Back The 1930s? Retrieved June 29, 2015. Hubbard, R., Brien, A. (n.d.). Key Components of the Financial System. In Money, banking, and the financial system (Second ed., p. 13). Pearson. Troubled Asset Relief Program (TARP) Information. (2013, August 2). Retrieved June 29, 2015.

The liberlization and privatization of the indian economy

The liberlization and privatization of the indian economy Rajiv Gandhis government initiated the policy of liberalization since mid-80s. The liberalization initiatives have been undertaken in India with a view to increase a production, improve quality and get access to market for products and service abroad. Radical liberalization or globalization measures have been brought in since July 1991 to make the Indian economy progressively market oriented and integrate it with the emerging global economy structure. These measures include reduction and rationalization of excise duty and customs duties, delicensing of several drug and pharmaceutical products, ready access to import of raw material and capital goods and so on. It has created an environment conducive to an enterprise, investment and innovation. Indian industries have started to attract foreign portfolio investment and equity participation in new ventures. The government is committed to make foreign players feet at ease to invest directly and bring with it new technology and marketing skills. There has been impressive growth in FDI inflows to India with the introduction of policy reforms. As compared to a near total concentration in manufacturing till 1991, the bulk of new inflow has come in the energy and service sector. Liberalization The New Industrial Policy, 1991 A number of significant economic changes introduced by many a number of countries all the world over, the encouraging results of the liberalization measures introduced in 1980s by the Government of India, and the precarious economic situation that prevailed during the later part 80s have encouraged and forced the then Congress government, which came back to power at the center, under the leadership of Shri. P. V. Narasimha Rao-a non Nehru family member, to take some bold measures to rejuvenate the economy and to accelerate the pace of development. In this background, the Government of India announced its New Industrial Policy (NIP or IP) on July 24, 1991. The important objectives are: (a) to correct the distortions that may have crept in, and consolidate the strengths built on the gains already made, (b) to maintain sustained growth in the productivity and gainful employment, and (c) to attain international competitiveness. Therefore, the basic philosophy of the New IP, 1991 has bee n the continuity with change. Because, the new policy represents a renewed initiative towards consolidating the gains of national reconstruction at this crucial stage. But what is more important is the change (in continuity with change)-change in the attitude of the state towards the industrial society, change from centrally planned economy to market led economy, change from excessive government intervention to minimal intervention, change from nationalization to privatization, change from subsidization and cross-subsidization to gradual withdrawal of subsidy, etc. But these changes, which the government has introduced, represent a sharp departure from the earlier industrial policies. These changes pertain broadly to five areas viz., (a) Industrial licensing, (b) Public sector policy, (c) MRTP Act, 1969, (d) Foreign investment, and (e) Foreign technology agreements. Industrial Licensing This is one of the areas in which substantial change has been made by the government. With a view to give effect to these changes, the government issued a notification [viz., Notification No. 477 (E)] on July 25, 1991 and this notification has exempted the industrial undertakings from the operation of the following Sections of Industries Development and Regulations Act, 1951 subject to the fulfillment of certain conditions. Section 10 (which deals with registration of existing industrial undertakings); Section 11 (which is concerned with the licensing for new industrial undertakings); and Section 13 (which is concerned with the licensing requirements for substantial expansion). Further, the second schedule appended to the notification cited above [viz., No. 477 (E)] lists the industries which are subject to mandatory industrial licensing. According to this notification, only 18 industries were subject to compulsory industrial licensing. Further, five more industries have been excluded from the list of industries which are subject to compulsory industrial licensing subsequently. That means, only 13 industries are now subject to compulsory industrial licensing. Public Sector Policy A large number of Public Sector Enterprises have failed to achieve at least a reasonable rate of success. Some of the factors which have contributed to this situation are over staffing and over managing, price and distributions controls, etc. Hence, the government, in its Industrial Policy, 1991, introduced the number of significant changes pertaining to the PSEs. Some of the important changes envisaged by the New Policy are summarized below. Prior to the announcement of New Industrial Policy, 1991, seventeen industries were reserved exclusively for the state for their future development. Further, with respect to another 12 industries, the state was to play an important role by taking initiative to establish new undertakings. Besides, the state had power to enter into any other area reserved for the private sector. However, the failure on the part of majority of PSEs has forced the government to review its earlier decision. Consequently, the government in its New Industrial Policy, 1991 has pruned the list of the industries reserved for the public sector to only 8. Further, the government has dereserved 2 more industries. As a result, only six industries are now reserved for the public sector. They are: (a) Arms and ammunition and allied items of defence equipment, aircraft and warships, (b) Atomic energy, (c) Coal and lignite, (d) Mineral oils, (e) Minerals specified in the schedule to the Atomic Energy Order, 1953, and (f) Railway transport. Hence, the focus of the public sector will be only on strategic and high tech industries and on basic infrastructural projects. However the objective of the New Industrial Policy has been to withdraw the public sector investment from the activities which can successfully be taken up by the private sector enterprises. The emphasis of PSEs in future will be on: (a) Basic and essential infrastructural facilities, (b) Mineral resources, (c) Crucial areas in the interest of the economy in the long run and where the private sector investment is inadequate, and (d) Defence equipment. With a view to mobilize the resources and to have a wider public participation, apart of governments share holdings in its enterprises will be offered to the mutual funds, financial institutions, employs of PSEs, and the general public. The New Industrial Policy also proposes selective privatization of PSEs. Further, the policy also proposes to close down the PSEs which have become sick and which cannot be rehabilitated. The sick PSEs which can be revived will be refered to Board for Industrial and Financial Reconstruction for the formulation of revival packages. The New Industrial Policy also aims at providing greater operational and managerial autonomy to the management of PSEs and making the managements accountable for the performance through a system called Memorandum of Understanding. MRTP Act, 1969 The New Industrial Policy, 1991 proposes to amend suitably the Monopolies and Restrictive Trade Practices Act, 1969. To remove the threshold limits of assets in respect of MRTP companies and the dominant industrial undertakings. The important objectives of this were two in number. They are: Prevention of concentration of economic power in the hands of few which will be detrimental to the common interest; and Regulation of monopolistic, restrictive and unfair trade practices which are pursued by the business community and which are prejudicial to the public interest. The New Policy proposes to renew the threshold limits of assets and therefore, to repeal the Provisions of MRTP Act, 1969 pertaining to the first objective. Hence, the MRTP Act now concerned only with the prohibition of monopolistic, restrictive and unfair trade practices followed by the industrial undertakings and the trading communities. Foreign Investment As far as the direct foreign investment is concerned, the New Policy proposes to give automatic approval up to 51% of equity in the case of high priority industries and it has also identified 34 such industry groups. Further, the policy proposes to allow majority foreign equity holdings up to 51% of equity for the trading companies which are engaged in export activities. This is to enable the domestic companies an easy access to international markets. With a view to negotiate with the large international financial institutions and to approve the direct foreign investments proposals in selected areas, the New Policy proposes to constitute a special committee. Foreign Technology Agreements The New Industrial Policy proposes to give automatic permission for foreign technology agreements in identified high priority industries. Further, it also proposes to allow other industries to import foreign technology subject to the fulfillment of certain conditions. Conclusion The New Industrial Policy, 1991 certainly differs significantly from the earlier philosophies, approaches, etc. of the government. For instance, prior to 1991, scope of public sector was expanded by reserving more number of industries for the public sector. But now, its scope has been reduced drastically by reducing the number of industries reserved for the public sector. Like this, a large number of changes can be noticed in the new policy. This process has been continuing even in post liberalization era. Adding to this, the government has taken a number of steps to give effect to its policy decisions included in the New Industrial Policy, 1991. Though the economy has been benefited significantly from these measures, the economy has not been able to reap the full benefits of the Economic Reform Package owing to the political instability, etc. Privatization Privatization of PSUs Majority of the industrial enterprises in the public sector have failed to achieve the desired result. Of course, a number of factors-internal and external, controllable and non- controllable are responsible for his precarious performance. A look at the history of public sector undertakings (PSUs) in the country reveals the continuous expansion in the role of PSUs. Consequently, a number of enterprises have been established and huge amount of borrowed capital has been employed by the state even in the non-core, non-strategic and not so essential area. Hence, the state has made a number of changes in its New Industrial Policy announced on July 24, 1991. Introduction In the sixties and seventies, the public sector policy has been largely guided by Industrial Policy Resolution, 1956 which gave the public sector a strategic role in the economy. During the last four decades, massive investments have been made to build a public sector which has a commanding role in the economy. Today, many key sector of the economy are dominated by the mature public sector enterprises that have successfully expanded the production. In the early post-Independence years, there was virtual consensus about the need for the government intervention in economic activities. Pandit Jawaharlal Nehru described the public sector as Temples of Modern India. At that time, virtually neither questioned the strategy nor raised any doubts about its implementation. The number of central public sector enterprises increased from 5 in the year 1951 to 240 by the end of 1995 and investments in public sector undertakings (PSUs) increased from Rs29 crore in 1951 to Rs. 1,72,438 crore by the end of 1995. They contributed nearly one third of our exports. They made significant contribution to import substitution. Government undertakings account for more that 70% of the work force employed in the organized sector. They have greatly reduced the imbalanced of regional development and have laid strong base for the rapid development of the country. Some of the PSUs have earned a reputation par excellence at the international level. Some giant public sector units (e.g., Indian Oil Corporation, Steel Authority of India, Oil and Natural Gas Commission, Hindustan Petroleum Corporation Ltd., Coal India Ltd and Bharat Petroleum Corporation Ltd) figure in Fortune Internationals large companies. Further, the public sector accounts for one-fourth of the countrys GDP. There are two million employees in government undertakings and the average emoluments per annum amount to more than Rs.50, 000 each. Besides paying higher salaries, public enterprises assure job security, good working condition, attractive incentive scheme, participative management, higher degree of safety, adequate facilities, etc. Meaning of Privatisation The revolution of privatization started in 1980 and spread to many parts of the world. Several countries are privatizing their public sector enterprises. India is no exception to it. Privatization was meant to improve the performance of public enterprises. Privatization techniques have been tried in countries like Great Britain, China, US, Turkey, Brazil, Mexico, Japan, etc. Privatization, in the narrow sense, means transfer of ownership, or sale of public enterprises. However, privatization has been used in different ways as detailed below: Liberalization Approach: Privatization may be used in the sense of liberalization having fewer controls and regulation by the state in economic activities. This also means slowing of new controls and regulations and also dismantling of the existing controls and regulations. Relative Share Enlargement Approach: Privatization may relate to enlargement of the share of private enterprises in the production of goods and services in the economy. This means that faster economic expansion of goods and services produced by private sector and slowing down of production of goods and services in the public sector. Association of Private Sector Management Approach: This approach suggests utilizing the services of managerial personnel or executives of private sector enterprises for the conduct and management of PSUs. Transfer of Minority Equity Ownership Approach: Privatization may be defined as the transfer of minority equity ownership of public enterprises to private individuals and institutions so that the ultimate control continues to remain with the state. Transfer of Complete Ownership Approach: Privatization is also used in the sense of sale of all the shares to the private parties so that the public enterprises are converted into private enterprises. In India, privatization is taking place by adopting two common methods viz., (a) Having fewer controls and regulations by the state in economic activities, and (b) Transferring ownership of state equity in PSUs to private individuals and institutions. Benefits of Privatization It is expected that privatization will ensure the following benefits: Increasing overall efficiency: Improvement in the quality of management and decision making: No government financial backing, and therefore, capital market will compel these enterprises to be more efficient; Substantial reduction in governments budgetary support resulting in reduction in budgetary deficit; Recovery of government fund which could more productively be used in development activities; Reduction in political and bureaucratic interferences; Better industrial relations management; etc. Shortcomings Though the PSUs have contributed heavily to develop the industrial base of the country, they continue, even today, to suffer from a number of shortcomings which are identified below very briefly. A sizable number of PSUs have been incurring and reporting losses on a continual basis. Consequently, a large number of PSUs have already been referred of BIFR; Multiplicity of authorities to whom the PSUs are accountable; Delay in implementation of projects leading to cost escalation and other consequences; Ineffective and widespread inefficiency on management; Many PSUs are operating without the leader (i.e., chief executive or chairman); With a view to provide opportunities for more and more unemployed youths, more number of people, than required, were recruited and therefore, many PSUs are over-staffed resulting in lower labour productivity, bad industrial relations, etc.; un-remunerative pricing policy; and A number of sick companies (40 companies) which were in the private sector was taken over by public sector mainly to protect the employees. These sick units are causing a big drain on the resources of the state; etc. Methods of Privatization There are four important modes of privatization. They are: Franchising, (b) Contracting, (c) Leasing, and (d) Disinvestment. In India, disinvestment of government share of equity in PSUs is predominant. It started in 1992 immediately after the New Economic Policy in a phased manner. The main criticism of disinvestment of shares of PSUs in India is that it has been partial and half-hearted. There seems to be no plans to disinvest completely. The government still would like to keep a dominant control. 39 companies have been proposed for disinvestment till 1995-96. All the companies proposed for disinvestment are central PSUs. No state level PSU has been proposed for disinvestment. It could only disinvest 1% to 35% shares of PSUs on an average. It is also observed that the shares of efficient and profit-making companies are disinvested more than the companies which are potentially sick or sick companies. The disinvestment percentage is also not much in loss-making and inefficient units, thereby defeating the purpose. The Finance Ministry has also explained that the government is consciously not off-loading larger chunks of its holding. The Rangarajan Committee has suggested that government holding in public sector undertaking must be less than 50%. But partial disinvestment will be of no avail to change the culture in the public sector undertaking. Future Plans of Government The following are the future plans of government: Strengthening strategic units, Privatizing non-strategic units by (1) Gradual disinvestment, and (2) Strategic sale, and Devising suitable rehabilitation package for weak units. Conclusion The privatization process launched with all seriousness after the announcement of New Industrial Policy, 1991 was a failure. The state must accept this and take necessary steps either to privatize or to improve the efficiency and performance of PSUs. GLOBALISATION Introduction: The expansion of economic activities across political boundaries of nation states. More important, perhaps, it refers to a process of increasing economic integrated and growing economic interdependence between countries in the world economy. It is associated not only with an increasing cross- border movement of goods, services, capital technology information and people but also with an organization of economic activities which straddles national boundaries. This process is driven by the lure of profit and threat of competition in the market. The term Globalization as such denotes adjustment of national economy with that of the world economy. It is conversion of a national market into international mobility of factors of production. In others words, it may be described as the integration of national economy with that of global economy. An important attribute of Globalization is the increasing degree of openness, which has three dimensions, i.e.; international trade, international investment and international finance. According to World Development Report, Globalization reflects the progressive integration of worlds economies. The manifestation of production includes spatial reorganization of production the interpenetration of industries across borders, the spread of financial markets, and the diffusion of identical consumer goods to distant countries and massive transfer of population across national frontiers. Globalization is a process of reaffirmation of faith in the markets, retaining the character of independence of a country. Here, the country follows a pragmatic policy with a shift in decision making from government to business. The market forces and the laws of economics will have greater importance than the political ideology. To make a country a successful partner in Globalization, the government must play a complimentary role. Factors contributing to Globalization: The important factors that contribute to Globalization are: (a) Technological Advances In communication: Technological advances in communication have made it possible to know in an instant what is happening in different parts of the world. The flow of information and ideas, boosted greatly by the Internet, can enable developing countries to learn more rapidly from each other and from industrial countries. (b) Improvements In Transportation And Technology: Improvements in transportation networks and technology are reducing the costs of shipping goods by water, ground and air. This can facilitate the movements of goods. Technological improvements can enable developing countries to leap stages in the development process that rely on inefficient uses of national resources. (c) Other Factors: Rising educational levels, technological innovations that allow ideas to circulate, and the economic failures of most centrally planned economies have also contributed to Globalization. Trends in Globalization: The important trends in Globalization are the following: International Trade: Trade in goods and services has grown twice as fast as global GDP in the 1990s and the share attributable to developing countries has risen from 23 to 29 percent. There is a compositional shift in trade, which has created a new pattern in the international exchange of goods, services, and ideas. Trade in components is one part of that new pattern. Advances in information technology helps to link firms from developing countries into global production networks. The tremendous growth of trade in services and, more recently, of electronic commerce is also a part of the new trade pattern. (b) International Financial Flows: There has been increase in international capital flows of developing countries. However, the financial crisis of 1977-99 have put the growing interdependencies among countries in the spotlight and led to intense scrutiny. Such flows are started to rise again. The financial performance of emerging markets in the 1990s made capital account liberalization an attractive option for developing countries. Many developing countries have began to loosen controls on inflows and outflows of capital. The East Asian meltdown has enhanced the attractiveness of long-term capital investment. Countries have started to recognize that foreign direct investment brings with it not only capital but also technology market access and organizational skills. An analysis of the period 1996-97 shows that foreign direct investment was less volatile than the commercial bank loans and foreign portfolio flows. (c) International Migration: Along with goods, services, and investment, people are crossing borders in large numbers. According to World Development Report 1999-2000, each tear between 2 million and 3 million people emigrate, with majority of them going to just 4 countries: the United States, Germany, Canada and Australia. The market for highly skilled workers will become even more globally integrated in the coming decades. At the end of the 20th century Globalization has already demonstrated that economic decisions, wherever they are made in the world, must take international factors into account. There is acceleration of goods, services, ideas and capital across nation borders. Advantages of Globalization: (a) Promise of Increase Productivity And Higher Living Standards: Globalization brings in new opportunities such as access to markets and technology transfer. These opportunities hold out the promise of increased productivity and higher living standards. (b) Increase In Trade In Goods And Services: There is tremendous growth in trade in goods and services. Trade in goods and services has grown twice as fast as global GDP in the 1990s and the share attributable to developing countries has climbed from 230to 29 percent. Increased international competition in services will lead to reduction in prices and improvements in quality. This will increase the competitiveness of downstream industries. Both industrial and development economics will gain by opening their markets. (c) Provide New Opportunities For Growth: For developing countries, trade is the primary vehicle for realizing the benefits of Globalization. Imports bring additional competition and variety to domestic markets, which benefit consumers. Exports, on the other hand, enlarge foreign markets and benefit business. Further trade exposes domestic firms to the best practices of foreign firms and encourages greater efficiency. Trade gives forms access to improved capital inputs such as machine tools, which boosts productivity. Trade encourages the redistribution of labour and capital too relatively to more productive sectors. It has contributed to the ongoing shift of some manufacturing and services activities from industrial to developing countries, providing new opportunities for growth. (d) Globalization of Financial Markets: Globalization of finance markets affects development because finance plays an important role in economic growth and industrialization. Financial Globalization affects growth in two ways. First, it increases the global supply of capital. Second, it promotes domestic financial development and hence, improves allocative efficiency, creates new financial instruments, and raises the quality of baking services. (e) Increased Flow Of foreign Market Capital: Globalization leads to increased flows of capital across countries. Flows of foreign capital offer substantial economic gains to all parties. Foreign investors diversify their risks outside their home market and gain access to profitable opportunities through out the world. Economies receiving inflows raise the level of investment. When there is foreign investment it is generally accompanied by management expertise, training programs and important linkages to suppliers and international markets. (f) Impact on Poverty: The fast growth and overall development resulting from liberalization, increased flow of trade ad capital could have a major impact on poverty. It is likely to reduce the number of people living in absolute poverty. (g) Increase The Level Of Interdependence And Competitiveness: Globalization is supposed to accelerate and increase the level of interdependence and competitiveness among nation. It is a change from plan to market. As a consequence, markets for merchandise trade are expanding, more and more service are being traded internationally, and capital is flowing in quicker and increasingly diverse ways across countries and regions. There is increasing integration of countries into World markets for goods, services and capital. In short, Globalization widens and intensifies international linkages in trade and finance. (h) Induce Domestic Firms To Improve Technology: The better technology brought in by the MNCs may induce or provoke the domestic firms to absorb similar technology. This may improve their competitiveness and expansion. Disadvantages of Globalization: The universal acceptance of the market economy and the Globalization led by private enterprises tend to have some harmful effects on the economy of developing countries. They are discussed below: Takeover of National Firms: There are a large numbers of cases of takeover of national firms by foreign firms. In some cases, the domestic firms had to handover the majority of equity to foreign partners of joint ventures due to their inability to bring in additional capital. Ruin of Traditional Crafts And Industries: Globalization has lead to replacement of traditional and indigenous products by modern products. This has resulted in the ruin of traditional crafts and industries and the livelihood of the people depended on these sectors. Brings Instability: Globalization sometimes brings instability and unwelcome change in the economy. It exposes workers to competition from imports, which can threaten their jobs. The inflow of foreign capital into the country through Globalization may undermine banks. (d) Widens The Disparity: Globalization will widen the disparity between one who are associated with market and one who are not. With the expansion of trade and foreign investment, the gaps among the developing countries will widen .it has brought in increased income inequality in many industrial countries .it is argued that the developing countries and the poor people are not in a position of achieving benefits from Globalization. The only beneficiaries of it are the developed countries and the MNCs. Growth rate of Indias real GDP per capita Per Capita GDP of South Asian Economies. Estimates of the Per Capita Income of India. CONCLUSION: Economic liberalization has increased the responsibility and role of the private sector. At the same time, it has reduced the control of the government on economy affairs. It is expected that the reforms would liberalize the Indian economy enough to create a conducive environment for rapid economic development. The Ninth Five Year Plan, therefore, rightly observed, The conditions that exist today, demand a decisive break from the past. The government has taken on itself too many responsibilities with the result that it not only encouraged a dependency syndrome among our people, but also imposed severe strains on financial and administrative capabilities of the government. Private initiative whether individual, collective or community-based forms the essence of the development strategy articulated in the plan. The process of reforms according to many economists and social scientists is not fast enough to achieve the goals. Jeffrey Sachs, director of Harvard Universitys center for international development and a noted economist, pointed out that the reform process in India had a long way to go. He feels that without a focus on the twin pillars of social and economic strategies, the future would be bleak for India, especially in the context of competition all around. Liberalization process is on the slow track. Government is expected to reduce and finally give up its involvement in economic matters and play a major role in providing the required socio-economic infrastructure. The government, however, is reluctant to give up its role of owning and controlling economic activities. At the same time its inability to spend for providing minimum health and education services. It is eager to spend on higher education without spending enough on primary and secondary education. It has failed in providing a corruption free administration, an essential precondition for increasing com