Case Presentation “Please Dont Let Me Die” Essay

The ethical principal showcased in this case presentation was beneficence. The nurses were not thinking beneficially of the resident in any aspect of their practice. A professional nurse would not consider leaving a floor with only three nursing assistants to care for 100 patients. The nursing assistants do not have the authority to manage a floor, the license to ensure patient care, nor do they possess the required knowledge to assess patients or delegate tasks. The institutional constraint would be the state of severe understaffing. For a facility of one hundred patients to be cared for by only three nurses significantly lowers the standard of care. According to a chart in the Journal of Scholarly Nursing (2010), Ohio standards are to have a ratio of one licensed nurse to every fifteen direct care patients in a nursing home facility (p 91). This presentation, even with the ten additional nursing assistants, was still understaffed with these standards. Although understaffed, the nurses are culpable because the patient was not thoroughly assessed. As a part of the scope and standard of nursing, an assessment would have revealed the need for a focused assessment. The focused assessment would have directed the nurses to signs and symptoms of the bowel obstruction, or led to further investigation. Provision Six is associated with the presentation in that it is essentially concentrating on ethical decision making in the workplace. Stated in Provision Six (2010), â€Å"Professional nurses make decisions that significantly affect the lives of others on a daily basis† (p.72). The nurses caring for Loren Richards should have used Provision Six in deciding when to take a break. There are several characteristics I would have changed about the presentation. Firstly, none of the nurses voiced the aversion for the short staffing. I feel strongly about this being a issue and would have mentioned something to management or the director of nursing. Secondly, the amount of professionals taking a break at the same time was exceptionally unethical. Scattering breaks throughout the shift would have been a more superior decision. Finally, pain is the fifth vital sign and when a patient is complaining, it is a nursing standard to assess. To add vomiting to his signs, and no action was taken, is complete contrary to my nursing practice. References Harrington, C., Choiniere, J., Goldmann, M., Jacobsen, F., Lloyd, L., McGregor, M., & †¦ Szebehely, M. (2012). Nursing Home Staffing Standards and Staffing Levels in Six Countries. Journal Of Nursing Scholarship, 44(1), 88-98. doi:http://dx.doi.org.proxy.library.ohiou.edu/10.1111/j.1547-5069.2011.01430.x Olson, L. (2010). Provision Six. In Guide to the Code of Ethics for Nurses (p. 72). Silver Spring , Maryland: nursesbooks.org.

Recession in India Essay

We have compiled the said report which helps in understanding what corrective steps were taken which helped the banks to emerge out of the turmoil. Financial Crisis The financial crisis of 2007 to the present is a crisis triggered by a liquidity shortfall in the United States banking system caused by the overvaluation of assets. It has resulted in the collapse of large financial institutions, the bailout of banks by national governments and downturns in stock markets around the world. In many areas, the housing market has also suffered, resulting in numerous evictions, foreclosures and prolonged vacancies. It is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s. It contributed to the failure of key businesses, declines in consumer wealth estimated in the trillions of U. S. dollars, substantial financial commitments incurred by governments, and a significant decline in economic activity. Many causes have been suggested, with varying weight assigned by experts. Both market-based and regulatory solutions have been implemented or are under consideration, while significant risks remain for the world economy over the 2010–2011 periods. The collapse of a global housing bubble, which peaked in the U. S. in 2006, caused the values of securities tied to real estate pricing to plummet thereafter, damaging financial institutions globally. Questions regarding bank solvency, declines in credit availability, and damaged investor confidence had an impact on global stock markets, where securities suffered large losses during late 2008 and early 2009. Economies worldwide slowed during this period as credit tightened and international trade declined. Critics argued that credit rating agencies and investors failed to accurately price the risk involved with mortgage-related financial products, and that governments did not adjust their regulatory practices to address 21st century financial markets. Governments and central banks responded with unprecedented fiscal stimulus, monetary policy expansion, and institutional bailouts. | Background and causes The immediate cause or trigger of the crisis was the bursting of the United States housing bubble which peaked in approximately 2005–2006. Already-rising default rates on â€Å"subprime† and adjustable rate mortgages (ARM) began to increase quickly thereafter. An increase in loan packaging, marketing and incentives such as easy initial terms and a long-term trend of rising housing prices had encouraged borrowers to assume difficult mortgages in the belief they would be able to quickly refinance at more favorable terms. However, once interest rates began to rise and housing prices started to drop moderately in 2006–2007 in many parts of the U. S. , refinancing became more difficult. Defaults and foreclosure activity increased dramatically as easy initial terms expired, home prices failed to go up as anticipated, and ARM interest rates reset higher. Share in GDP of U. S. financial sector since 1860 Low interest rates and large inflows of foreign funds created easy credit conditions for a number of years prior to the crisis, fueling a housing construction boom and encouraging debt-financed consumption. The combination of easy credit and money inflow contributed to the United States housing bubble. Loans of various types (e. g. mortgage, credit card, and auto) were easy to obtain and consumers assumed an unprecedented debt load. As part of the housing and credit booms, the number of financial agreements called mortgage-backed securities (MBS) and collateralized debt obligations (CDO), which derived their value from mortgage payments and housing prices, greatly increased. Such financial innovation enabled institutions and investors around the world to invest in the U. S. housing market. As housing prices declined, major global financial institutions that had borrowed and invested heavily in subprime MBS reported significant losses. Falling prices also resulted in homes worth less than the mortgage loan, providing a financial incentive to enter foreclosure. The ongoing foreclosure epidemic that began in late 2006 in the U. S. continues to drain wealth from consumers and erodes the financial strength of banking institutions. Defaults and losses on other loan types also increased significantly as the crisis expanded from the housing market to other parts of the economy. Total losses are estimated in the trillions of U. S. dollars globally. While the housing and credit bubbles built, a series of factors caused the financial system to both expand and become increasingly fragile, a process called financialization. Policymakers did not recognize the increasingly important role played by financial institutions such as investment banks and hedge funds, also known as the shadow banking system. Some experts believe these institutions had become as important as commercial (depository) banks in providing credit to the U. S. economy, but they were not subject to the same regulations. These institutions as well as certain regulated banks had also assumed significant debt burdens while providing the loans described above and did not have a financial cushion sufficient to absorb large loan defaults or MBS losses. These losses impacted the ability of financial institutions to lend, slowing economic activity. Concerns regarding the stability of key financial institutions drove central banks to provide funds to encourage lending and restore faith in the commercial paper markets, which are integral to funding business operations. Governments also bailed out key financial institutions and implemented economic stimulus programs, assuming significant additional financial commitments. The crises culminated on Sept. 15th 2008 with Lehman Brothers filing for bankruptcy. It has been reported that JP Morgan helped drive Lehman into bankruptcy and kicked off the credit crises by forcing it to give up billions in cash reserves on the afternoon of Friday September 13, 2008. Growth of the housing bubble Main article: United States housing bubble A graph showing the median and average sales prices of new homes sold in the United States between 1963 and 2008 (not adjusted for inflation) Between 1997 and 2006, the price of the typical American house increased by 124%. During the two decades ending in 2001, the national median home price ranged from 2. 9 to 3. 1 times median household income. This ratio rose to 4. 0 in 2004, and 4. 6 in 2006. This housing bubble resulted in quite a few homeowners refinancing their homes at lower interest rates, or financing consumer spending by taking out second mortgages secured by the price appreciation. In a Peabody Award winning program, NPR correspondents argued that a â€Å"Giant Pool of Money† (represented by $70 trillion in worldwide fixed income investments) sought higher yields than those offered by U. S. Treasury bonds early in the decade. Further, this pool of money had roughly doubled in size from 2000 to 2007, yet the supply of relatively safe, income generating investments had not grown as fast. Investment banks on Wall Street answered this demand with the MBS and CDO, which were assigned safe ratings by the credit rating agencies. In effect, Wall Street connected this pool of money to the mortgage market in the U. S. , with enormous fees accruing to those throughout the mortgage supply chain, from the mortgage broker selling the loans, to small banks that funded the brokers, to the giant investment banks behind them. By approximately 2003, the supply of mortgages originated at traditional lending standards had been exhausted. However, continued strong demand for MBS and CDO began to drive down lending standards, as long as mortgages could still be sold along the supply chain. Eventually, this speculative bubble proved unsustainable. The CDO in particular enabled financial institutions to obtain investor funds to finance subprime and other lending, extending or increasing the housing bubble and generating large fees. A CDO essentially places cash payments from multiple mortgages or other debt obligations into a single pool, from which the cash is allocated to specific securities in a priority sequence. Those securities obtaining cash first received investment-grade ratings from rating agencies. Lower priority securities received cash thereafter, with lower credit ratings but theoretically a higher rate of return on the amount invested. By September 2008, average U. S. housing prices had declined by over 20% from their mid-2006 peak. As prices declined, borrowers with adjustable-rate mortgages could not refinance to avoid the higher payments associated with rising interest rates and began to default. During 2007, lenders began foreclosure proceedings on nearly 1. 3 million properties, a 79% increase over 2006. This increased to 2. 3 million in 2008, an 81% increase vs. 2007. By August 2008, 9. 2% of all U. S. mortgages outstanding were either delinquent or in foreclosure. By September 2009, this had risen to 14. 4%. Easy credit conditions Lower interest rates encourage borrowing. From 2000 to 2003, the Federal Reserve lowered the federal funds rate target from 6. 5% to 1. 0%. [31] This was done to soften the effects of the collapse of the dot-com bubble and of the September 2001 terrorist attacks, and to combat the perceived risk of deflation. [32] U. S. current account or trade deficit Additional downward pressure on interest rates was created by the USA’s high and rising current account (trade) deficit, which peaked along with the housing bubble in 2006. Ben Bernanke explained how trade deficits required the U. S. to borrow money from abroad, which bid up bond prices and lowered interest rates. Bernanke explained that between 1996 and 2004, the USA current account deficit increased by $650 billion, from 1. 5% to 5. 8% of GDP. Financing these deficits required the USA to borrow large sums from abroad, much of it from countries running trade surpluses, mainly the emerging economies in Asia and oil-exporting nations. The balance of payments identity requires that a country (such as the USA) running a current account deficit also have a capital account (investment) surplus of the same amount. Hence large and growing amounts of foreign funds (capital) flowed into the USA to finance its imports. This created demand for various types of financial assets, raising the prices of those assets while lowering interest rates. Foreign investors had these funds to lend, either because they had very high personal savings rates (as high as 40% in China), or because of high oil prices. Bernanke referred to this as a â€Å"saving glut. † A â€Å"flood† of funds (capital or liquidity) reached the USA financial markets. Foreign governments supplied funds by purchasing USA Treasury bonds and thus avoided much of the direct impact of the crisis. USA households, on the other hand, used funds borrowed from foreigners to finance consumption or to bid up the prices of housing and financial assets. Financial institutions invested foreign funds in mortgage-backed securities. The Fed then raised the Fed funds rate significantly between July 2004 and July 2006. This contributed to an increase in 1-year and 5-year adjustable-rate mortgage (ARM) rates, making ARM interest rate resets more expensive for homeowners. This may have also contributed to the deflating of the housing bubble, as asset prices generally move inversely to interest rates and it became riskier to speculate in housing. USA housing and financial assets dramatically declined in value after the housing bubble burst. Sub-prime lending U. S. subprime lending expanded dramatically 2004-2006 The term subprime refers to the credit quality of particular borrowers, who have weakened credit histories and a greater risk of loan default than prime borrowers. The value of U. S. subprime mortgages was estimated at $1. 3 trillion as of March 2007, with over 7. 5 million first-lien subprime mortgages outstanding. In addition to easy credit conditions, there is evidence that both government and competitive pressures contributed to an increase in the amount of subprime lending during the years preceding the crisis. Major U. S. investment banks and government sponsored enterprises like Fannie Mae played an important role in the expansion of higher-risk lending. Subprime mortgages remained below 10% of all mortgage originations until 2004, when they spiked to nearly 20% and remained there through the 2005-2006 peak of the United States housing bubble. A proximate event to this increase was the April 2004 decision by the U. S. Securities and Exchange Commission (SEC) to relax the net capital rule, which permitted the largest five investment banks to dramatically increase their financial leverage and aggressively expand their issuance of mortgage-backed securities. This applied additional competitive pressure to Fannie Mae and Freddie Mac, which further expanded their riskier lending. Subprime mortgage payment delinquency rates remained in the 10-15% range from 1998 to 2006, then began to increase rapidly, rising to 25% by early 2008. Fannie Mae, the nation’s biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people†¦ In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980s. A 2000 United States Department of the Treasury study of lending trends for 305 cities from 1993 to 1998 showed that $467 billion of mortgage credit poured out of Community Reinvestment Act (CRA)-covered lenders into low and mid level income borrowers and neighborhoods. Nevertheless, only 25% of all sub-prime lending occurred at CRA-covered institutions, and a full 50% of sub-prime loans originated at institutions exempt from CRA. While the number of CRA sub-prime loans originated were less than non-CRA sub-prime loans originated, it is important to note that the CRA sub-prime loans were the more â€Å"vulnerable during the downturn, to the detriment of both borrowers and lenders. For example, lending done under Community Reinvestment Act criteria, according to a quarterly report in October of 2008, constituted only 7 percent of the total mortgage lending by the Bank of America, but constituted 29 percent of its losses on mortgages. Economist Paul Krugman argued in January 2010 that the simultaneous growth of the residential and commercial real estate pricing bubbles undermines the case made by those who argue that Fannie Mae, Freddie Mac, CRA or predatory lending were primary causes of the crisis. In other words, bubbles in both markets developed even though only the residential market was affected by these potential causes. Predatory lending Predatory lending refers to the practice of unscrupulous lenders, to enter into â€Å"unsafe† or â€Å"unsound† secured loans for inappropriate purposes. A classic bait-and-switch method was used by Countrywide, advertising low interest rates for home refinancing. Such loans were written into extensively detailed contracts, and swapped for more expensive loan products on the day of closing. Whereas the advertisement might state that 1% or 1. 5% interest would be charged, the consumer would be put into an adjustable rate mortgage (ARM) in which the interest charged would be greater than the amount of interest paid. This created negative amortization, which the credit consumer might not notice until long after the loan transaction had been consummated. Countrywide, sued by California Attorney General Jerry Brown for â€Å"Unfair Business Practices† and â€Å"False Advertising† was making high cost mortgages â€Å"to homeowners with weak credit, adjustable rate mortgages (ARMs) that allowed homeowners to make interest-only payments. â€Å". When housing prices decreased, homeowners in ARMs then had little incentive to pay their monthly payments, since their home equity had disappeared. This caused Countrywide’s financial condition to deteriorate, ultimately resulting in a decision by the Office of Thrift Supervision to seize the lender. Former employees from Ameriquest, which was United States’s leading wholesale lender,[60] described a system in which they were pushed to falsify mortgage documents and then sell the mortgages to Wall Street banks eager to make fast profits. [60] There is growing evidence that such mortgage frauds may be a cause of the crisis. [60] Deregulation Further information: Government policies and the subprime mortgage crisis Critics have argued that the regulatory framework did not keep pace with financial innovation, such as the increasing importance of the shadow banking system, derivatives and off-balance sheet financing. In other cases, laws were changed or enforcement weakened in parts of the financial system. Key examples include: * Jimmy Carter’s Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA) phased out a number of restrictions on banks’ financial practices, broadened their lending powers, and raised the deposit insurance limit from $40,000 to $100,000 (raising the problem of moral hazard). Banks rushed into real estate lending, speculative lending, and other ventures just as the economy soured. * In October 1982, U. S. President Ronald Reagan signed into Law the Garn–St. Germain Depository Institutions Act, which provided for adjustable-rate mortgage loans, began the process of banking deregulation, and contributed to the savings and loan crisis of the late 1980s/early 1990s. * In November 1999, U. S. President Bill Clinton signed into Law the Gramm-Leach-Bliley Act, which repealed part of the Glass-Steagall Act of 1933. This repeal has been criticized for reducing the separation between commercial banks (which traditionally had a conservative culture) and investment banks (which had a more risk-taking culture). In 2004, the U. S. Securities and Exchange Commission relaxed the net capital rule, which enabled investment banks to substantially increase the level of debt they were taking on, fueling the growth in mortgage-backed securities supporting subprime mortgages. The SEC has conceded that self-regulation of investment banks contributed to the crisis. * Financial institutions in the shadow banking system are not subject to the same regulation as d epository banks, allowing them to assume additional debt obligations relative to their financial cushion or capital base. This was the case despite the Long-Term Capital Management debacle in 1998, where a highly-leveraged shadow institution failed with systemic implications. * Regulators and accounting standard-setters allowed depository banks such as Citigroup to move significant amounts of assets and liabilities off-balance sheet into complex legal entities called structured investment vehicles, masking the weakness of the capital base of the firm or degree of leverage or risk taken. One news agency estimated that the top four U. S. banks will have to return between $500 billion and $1 trillion to their balance sheets during 2009. This increased uncertainty during the crisis regarding the financial position of the major banks. Off-balance sheet entities were also used by Enron as part of the scandal that brought down that company in 2001. * As early as 1997, Federal Reserve Chairman Alan Greenspan fought to keep the derivatives market unregulated. With the advice of the President’s Working Group on Financial Markets, the U. S. Congress and President allowed the self-regulation of the over-the-counter derivatives market when they enacted the Commodity Futures Modernization Act of 2000. Derivatives such as credit default swaps (CDS) can be used to hedge or speculate against particular credit risks. The volume of CDS outstanding increased 100-fold from 1998 to 2008, with estimates of the debt covered by CDS contracts, as of November 2008, ranging from US$33 to $47 trillion. Total over-the-counter (OTC) derivative notional value rose to $683 trillion by June 2008. Warren Buffett famously referred to derivatives as â€Å"financial weapons of mass destruction† in early 2003. Increased debt burden or over-leveraging Leverage ratios of investment banks increased significantly 2003-2007 U. S. households and financial institutions became increasingly indebted or overleveraged during the years preceding the crisis. This increased their vulnerability to the collapse of the housing bubble and worsened the ensuing economic downturn. Key statistics include: * Free cash used by consumers from home equity extraction doubled from $627 billion in 2001 to $1,428 billion in 2005 as the housing bubble built, a total of nearly $5 trillion dollars over the period, contributing to economic growth worldwide. U. S. home mortgage debt relative to GDP increased from an average of 46% during the 1990s to 73% during 2008, reaching $10. 5 trillion. * USA household debt as a percentage of annual disposable personal income was 127% at the end of 2007, versus 77% in 1990. * In 1981, U. S. rivate debt was 123% of GDP; by the third quarter of 2008, it was 290%. * From 2004-07, the top five U. S. investment banks each significantly increased their financial leverage (see diagram), which increased their vulnerability to a financial shock. These five institutions reported over $4. 1 trillion in debt for fiscal year 2007, about 30% of USA nominal GDP for 2007. Lehman Brothers was liquidated, Bear Stearns and Merrill Lynch were sold at fir e-sale prices, and Goldman Sachs and Morgan Stanley became commercial banks, subjecting themselves to more stringent regulation. With the exception of Lehman, these companies required or received government support. * Fannie Mae and Freddie Mac, two U. S. Government sponsored enterprises, owned or guaranteed nearly $5 trillion in mortgage obligations at the time they were placed into conservatorship by the U. S. government in September 2008. These seven entities were highly leveraged and had $9 trillion in debt or guarantee obligations, an enormous concentration of risk; yet they were not subject to the same regulation as depository banks. Boom and collapse of the shadow banking system In a June 2008 speech, President and CEO of the New York Federal Reserve Bank Timothy Geithner  Ã¢â‚¬â€ who in 2009 became Secretary of the United States Treasury  Ã¢â‚¬â€ placed significant blame for the freezing of credit markets on a â€Å"run† on the entities in the â€Å"parallel† banking system, also called the shadow banking system. These entities became critical to the credit markets underpinning the financial system, but were not subject to the same regulatory controls. Further, these entities were vulnerable because of maturity mismatch, meaning that they borrowed short-term in liquid markets to purchase long-term, illiquid and risky assets. This meant that disruptions in credit markets would make them subject to rapid deleveraging, selling their long-term assets at depressed prices. He described the significance of these entities: In early 2007, asset-backed commercial paper conduits, in structured investment vehicles, in auction-rate preferred securities, tender option bonds and variable rate demand notes, had a combined asset size of roughly $2. trillion. Assets financed overnight in triparty repo grew to $2. 5 trillion. Assets held in hedge funds grew to roughly $1. 8 trillion. The combined balance sheets of the then five major investment banks totaled $4 trillion. In comparison, the total assets of the top five bank holding companies in the United States at that point were just over $6 trillion, and total assets of the entire banking system we re about $10 trillion. The combined effect of these factors was a financial system vulnerable to self-reinforcing asset price and credit cycles. Paul Krugman, laureate of the Nobel Prize in Economics, described the run on the shadow banking system as the â€Å"core of what happened† to cause the crisis. He referred to this lack of controls as â€Å"malign neglect† and argued that regulation should have been imposed on all banking-like activity. Financial markets impacts Impacts on financial institutions 2007 bank run on Northern Rock, a UK bank The International Monetary Fund estimated that large U. S. and European banks lost more than $1 trillion on toxic assets and from bad loans from January 2007 to September 2009. These losses are expected to top $2. 8 trillion from 2007-10. U. S. banks losses were forecast to hit $1 trillion and European bank losses will reach $1. 6 trillion. The IMF estimated that U. S. banks were about 60 percent through their losses, but British and eurozone banks only 40 percent. One of the first victims was Northern Rock, a medium-sized British bank. The highly leveraged nature of its business led the bank to request security from the Bank of England. This in turn led to investor panic and a bank run in mid-September 2007. Calls by Liberal Democrat Shadow Chancellor Vince Cable to nationalise the institution were initially ignored; in February 2008, however, the British government (having failed to find a private sector buyer) relented, and the bank was taken into public hands. Northern Rock’s problems proved to be an early indication of the troubles that would soon befall other banks and financial institutions. Initially the companies affected were those directly involved in home construction and mortgage lending such as Northern Rock and Countrywide Financial, as they could no longer obtain financing through the credit markets. Over 100 mortgage lenders went bankrupt during 2007 and 2008. Concerns that investment bank Bear Stearns would collapse in March 2008 resulted in its fire-sale to JP Morgan Chase. The crisis hit its peak in September and October 2008. Several major institutions either failed, were acquired under duress, or were subject to government takeover. These included Lehman Brothers, Merrill Lynch, Fannie Mae, Freddie Mac, Washington Mutual, Wachovia, and AIG. Credit markets and the shadow banking system TED spread and components during 2008 During September 2008, the crisis hit its most critical stage. There was the equivalent of a bank run on the money market mutual funds, which frequently invest in commercial paper issued by corporations to fund their operations and payrolls. Withdrawals from money markets were $144. 5 billion during one week, versus $7. 1 billion the week prior. This interrupted the ability of corporations to rollover (replace) their short-term debt. The U. S. government responded by extending insurance for money market accounts analogous to bank deposit insurance via a temporary guarantee and with Federal Reserve programs to purchase commercial paper. The TED spread, an indicator of perceived credit risk in the general economy, spiked up in July 2007, remained volatile for a year, then spiked even higher in September 2008, reaching a record 4. 65% on October 10, 2008. In a dramatic meeting on September 18, 2008, Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke met with key legislators to propose a $700 billion emergency bailout. Bernanke reportedly told them: â€Å"If we don’t do this, we may not have an economy on Monday. † The Emergency Economic Stabilization Act, which implemented the Troubled Asset Relief Program (TARP), was signed into law on October 3, 2008. Economist Paul Krugman and U. S. Treasury Secretary Timothy Geithner explain the credit crisis via the implosion of the shadow banking system, which had grown to nearly equal the importance of the traditional commercial banking sector as described above. Without the ability to obtain investor funds in exchange for most types of mortgage-backed securities or asset-backed commercial paper, investment banks and other entities in the shadow banking system could not provide funds to mortgage firms and other corporations. This meant that nearly one-third of the U. S. lending mechanism was frozen and continued to be frozen into June 2009. According to the Brookings Institution, the traditional banking system does not have the capital to close this gap as of June 2009: â€Å"It would take a number of years of strong profits to generate sufficient capital to support that additional lending volume. † The authors also indicate that some forms of securitization are â€Å"likely to vanish forever, having been an artifact of excessively loose credit conditions. While traditional banks have raised their lending standards, it was the collapse of the shadow banking system that is the primary cause of the reduction in funds available for borrowing. Global effects A number of commentators have suggested that if the liquidity crisis continues, there could be an extended recession or worse. The continuing development of the crisis has prompted in some quarters fears of a global economic collapse although the re are now many cautiously optimistic forecasters in addition to some prominent sources who remain negative. The financial crisis is likely to yield the biggest banking shakeout since the savings-and-loan meltdown. Investment bank UBS stated on October 6 that 2008 would see a clear global recession, with recovery unlikely for at least two years. Three days later UBS economists announced that the â€Å"beginning of the end† of the crisis had begun, with the world starting to make the necessary actions to fix the crisis: capital injection by governments; injection made systemically; interest rate cuts to help borrowers. The United Kingdom had started systemic injection, and the world’s central banks were now cutting interest rates. UBS emphasized the United States needed to implement systemic injection. UBS further emphasized that this fixes only the financial crisis, but that in economic terms â€Å"the worst is still to come†. UBS quantified their expected recession durations on October 16: the Eurozone’s would last two quarters, the United States’ would last three quarters, and the United Kingdom’s would last four quarters. The economic crisis in Iceland involved all three of the country’s major banks. Relative to the size of its economy, Iceland’s banking collapse is the largest suffered by any country in economic history. At the end of October UBS revised its outlook downwards: the forthcoming recession would be the worst since the Reagan recession of 1981 and 1982 with negative 2009 growth for the U. S. , Eurozone, UK; very limited recovery in 2010; but not as bad as the Great Depression. The Brookings Institution reported in June 2009 that U. S. consumption accounted for more than a third of the growth in global consumption between 2000 and 2007. â€Å"The US economy has been spending too much and borrowing too much for years and the rest of the world depended on the U. S. consumer as a source of global demand. With a recession in the U. S. and the increased savings rate of U. S. consumers, declines in growth elsewhere have been dramatic. For the first quarter of 2009, the annualized rate of decline in GDP was 14. 4% in Germany, 15. 2% in Japan, 7. 4% in the UK, 18% in Latvia, 9. 8% in the Euro area and 21. 5% for Mexico. Some developing countries that had seen strong economic growth saw significan t slowdowns. For example, growth forecasts in Cambodia show a fall from more than 10% in 2007 to close to zero in 2009, and Kenya may achieve only 3-4% growth in 2009, down from 7% in 2007. According to the research by the Overseas Development Institute, reductions in growth can be attributed to falls in trade, commodity prices, investment and remittances sent from migrant workers (which reached a record $251 billion in 2007, but have fallen in many countries since). The has stark implications and has led to a dramatic rise in the number of households living below the poverty line, be it 300,000 in Bangladesh or 230,000 in Ghana. By March 2009, the Arab world had lost $3 trillion due to the crisis. In April 2009, unemployment in the Arab world is said to be a ‘time bomb’. In May 2009, the United Nations reported a drop in foreign investment in Middle-Eastern economies due to a slower rise in demand for oil. In June 2009, the World Bank predicted a tough year for Arab states. In September 2009, Arab banks reported losses of nearly $4 billion since the onset of the global financial crisis. U. S. economic effects Real gross domestic product — the output of goods and services produced by labor and property located in the United States — decreased at an annual rate of approximately 6 percent in the fourth quarter of 2008 and first quarter of 2009, versus activity in the year-ago periods. The U. S. unemployment rate increased to 10. 1% by October 2009, the highest rate since 1983 and roughly twice the pre-crisis rate. The average hours per work week declined to 33, the lowest level since the government began collecting the data in 1964. Effects of Recession on India There is, at least in some quarters, dismay that India has been hit by the crisis. This dismay stems from two arguments. The Indian banking system has had no direct exposure to the sub-prime mortgage assets or to the failed institutions. It has very limited off-balance sheet activities or securitized assets. In fact, our banks continue to remain safe and healthy. So, the enigma is how can India be caught up in a crisis when it has nothing much to do with any of the maladies that are at the core of the crisis. The second reason for dismay is that India’s recent growth has been driven predominantly by domestic consumption and domestic investment. External demand, as measured by merchandize exports, accounts for less than 15 per cent of our GDP. The question then is, even if there is a global downturn, why should India be affected when its dependence on external demand is so limited? The answer to the above frequently-asked questions lies in globalization. First, India’s integration into the world economy over the last decade has been remarkably rapid. Integration into the world implies more than just exports. Going by the common measure of globalization, India’s two-way trade (merchandize exports plus imports), as a proportion of GDP, grew from 21. 2 per cent in 1997-98, the year of the Asian crisis, to 34. 7 per cent in 2007-08. Second, India’s financial integration with the world has been as deep as India’s trade globalization, if not deeper. If we take an expanded measure of globalization, that is the ratio of total external transactions (gross current account flows plus gross capital flows) to GDP, this ratio has more than doubled from 46. 8 per cent in 1997-98 to 117. 4 per cent in 2007-08. Importantly, the Indian corporate sector’s access to external funding has markedly increased in the last five years. Some numbers will help illustrate the point. In the five-year period 2003-08, the share of investment in India’s GDP rose by 11 percentage points. Corporate savings financed roughly half of this, but a significant portion of the balance financing came from external sources. While funds were available domestically, they were expensive relative to foreign funding. On the other hand, in a global market awash with liquidity and on the promise of India’s growth potential, foreign investors were willing to take risks and provide funds at a lower cost. Last year (2007/08), for example, India received capital inflows amounting to over 9 per cent of GDP as against a current account deficit in the balance of payments of just 1. 5 per cent of GDP. These capital flows, in excess of the current account deficit, evidence the importance of external financing and the depth of India’s financial integration. So, the reason India has been hit by the crisis, despite mitigating factors, is clearly India’s rapid and growing integration into the global economy. The contagion of the crisis has spread to India through all the channels – the financial channel, the real channel, and importantly, as happens in all financial crises, the confidence channel. India’s financial markets – equity markets, money markets, forex markets and credit markets – had all come under pressure from a number of directions. First, as a consequence of the global liquidity squeeze, Indian banks and corporates found their overseas financing drying up, forcing corporates to shift their credit demand to the domestic banking sector. Also, in their frantic search for substitute financing, corporates withdrew their investments from domestic money market mutual funds putting redemption pressure on the mutual funds and down the line on non-banking financial companies (NBFCs) where the MFs had invested a significant portion of their funds. This substitution of overseas financing by domestic financing brought both money markets and credit markets under pressure. Second, the forex market came under pressure because of reversal of capital flows as part of the global deleveraging process. Simultaneously, corporates were converting the funds raised locally into foreign currency to meet their external obligations. Both these factors put downward pressure on the rupee. Third, the Reserve Bank’s intervention in the forex market to manage the volatility in the rupee further added to liquidity tightening. The transmission of the global cues to the domestic economy has been quite straight forward – through the slump in demand for exports. The United States, European Union and the Middle East, which account for three quarters of India’s goods and services trade are in a synchronized down turn. Service export growth is also likely to slow in the near term as the recession deepens and financial services firms – traditionally large users of outsourcing services – are restructured. Remittances from migrant workers too are likely to slow as the Middle East adjusts to lower crude prices and advanced economies go into a recession. Beyond the financial and real channels of transmission as above, the crisis also spread through the confidence channel. In sharp contrast to global financial markets, which went into a seizure on account of a crisis of confidence, Indian financial markets continued to function in an orderly manner. Nevertheless, the tightened global liquidity situation in the period immediately following the Lehman failure in mid-September 2008, coming as it did on top of a turn in the credit cycle, increased the risk aversion of the financial system and made banks cautious about lending. The purport of the above explanation is to show how, despite not being part of the financial sector problem, India has been affected by the crisis through the pernicious feedback loops between external shocks and domestic vulnerabilities by way of the financial, real and confidence channels. Effect on Banks The actual effect of recession was only realised in February 2008 in Banking Industry. Before this there were lot of questions and queries regarding whether the U. S. recession will have any impact on India or Indian banking sector. In Feb 2008, the markets suddenly crashed the actual picture came in front. The effects which came across the banking sector are as follow * Credit Card and loan settlements. As soon as the impact of recession was realized by the banking sector, the Indian banking system came into the mode of consolidation. Each and every bank started reviewing their NPA’s and the amount of lending they have done which is yet to be recovered. Bank concentrated more on retail loans and Credit Card payments. The first priority for bank was to recover such amount which was unpaid from their customers. The banks hired external agencies for calling up clients and requesting them to settle their respective dues. This in turn created a panic in the customers mind. The banks in order to recover their dues and make the process fast provided attractive offers to its customers. For e. g. By settling the entire amount by cash there were discounts which were given amounting to about 5% of the entire due amount. * Call money market. In the initial stages of recession there was lot of demand for short term cash amongst the bank as the bank needed to fulfil the requirement of CRR and SLR. The money which was lended by the bank were taking time to recover and therefore there was a sudden requirement of short term money. The interest rate which were use to be at 5-6% grow up to 14-15% for a time period of 11-15 days. These requirements by few banks were enchased fully by other banks which were low on lending. The banks like ING Vysya bank, Yes Bank, IDBI Bank were amongst the few who were lending through call money market to other banks. * Fixed Deposit Rates Before recession hit the market FD rates were at a sky high level. Lot of private sector banks as well as public sector banks were offering interest rates in long term period upto 11-12%. When the recession kicked in the money demand for long term had almost finished. This was because of the reason that banks were in the mode of consolidation and did not want to lend further till the time most of the money was recovered. The bank deposit rates came down to a level of 6-7% as there was ample liquidity in the banking sector because of funds being not given ahead as loans. * Private banks became unpopular. During recession looking at the bankruptcy of foreign banks there was panic in the mind of investors even in india. There were lot of question that were raised whether the private sector banks who take exposure in foreign securities are safe in investing or not. During this period only there was a news which came for ICICI Bank. ICICI Bank had taken direct exposures in securities which issued by Lehman Brothers and Merill Lynch. In fact even few of public sector banks had taken similar exposures but since public sector banks were backed up by the government, there was a comfort factor amongst the investors. If we look at what happened with ICICI Bank, the liquidity was ample and it was just a few percentage of exposure that has gone as bad debt but other private marked players like HDFC Bank and Kotak Mahindra Bank encashed on these opportunities and placed their canopies next to each and every branch and ATM of ICICI Bank. There was a lot of panic which was created within the investors and they wanted to park their funds in a safer bank. Many of them shifted to nationalized banks and others were diverted to other private banks. This not only hampered the image of ICICI Bank but also created a bad image of Indian Private Banks. They were much difficulties which were faced by these banks to get additional deposits from investors and even retain theri clients who were shifting toward nationalised banks. * Diversifying and churning of funds. While the recession was impacting the country and the banking system there were informations that were given to the investors that the government insures on Rs. 1 lakh for any particular individual. This was misinterpreted by lot of investors in what they believed was with respect to one particular bank. With these being public diversification started. Each investor to safeguard his/her money started opening many accounts in different banks and keeping the funds equal in all. There was a lot of churning which happened from private sector banks to public sector banks as there were lot of uncertainity about funds being saved in a private sector bank. Investor created portfolios in different nationalised banks because of which private sector banks faced decline in their interest earnings as well as corpus and faced losses. After a while this myth was broken by RBI governor that the government only ensures Rs. lakh in totality no matter how many banks an investor has. * Lending Choked. The banks private sector as well as public sector were uncertain with what more negative impact were forthcoming. This resulted in, banks not at all lending to retail and corporate which were related to infrastructure or real estate. The cycle of churning of funds had suddenly stopped. Many projects which were about to start or were half way completed we re forced to put their projects on hold as no additional funds were being provided. This created commotion in real estate market which resulted in decline of prices. Even on retail side many of the housing loans were rejected which propelled the negativity more. Even for Large Cap companies the banks were demanding additional securities in cash apart from normal tangible assets. Even for processing loans for investors who had excellent credit history, the banks put ahead lot of extra conditions and terms. This further created panic and investors postponed their financial goals and loans were not applied for. After a while many loan divisions of banks were shut down and the employees were shifted to other departments were asked to leave. This even further increased the liquidity with banks. * Banks Investment Primary earning for any bank is through lending. Loans were not being processed and since the banks were uncertain of what more negative impact will come the banks were desperately looking out for other avenues to make money. The most safest option available with banks was to invest in G-Secs (Government of India Securities). Many banks started heavily into govt. Securities and bonds. These securities were traded quite highly at that period. Other sources including were through reverse repo and short term lending to different banks. During this time period much more focus was given to income from wealth management as markets has been corrected and banks insisted on educating the investors to park their funds in the equity market. Though the banks were heavily investing in G-Secs and other bonds it was not enough for their survival. Sooner or later the banks had to lend where they make the maximum profit. * Unemployment During the time of recession many jobs were lost in all the sectors. The similar effect was seen in banking but it was not in totality but few departments specific. The maximum hits were taken by two divisions which suffered most during the recession time. The first being the Wealth management division of banks. Though the feeling was correct that the markets have come down and valuations are excellent, it was very difficult convincing the investors. This resulted in many job losses in wealth management department of all the banks as revenue was expected which was not possible to generate. The next division which suffered was the loan division. The lay off’s happened more as the departments closed down and were not functional at all. Most of the bank had outsourced the servicing part as it was cheaper compared to keeping the existing team operational. Close to 1100 jobs were lost in the matter of 3 months in the entire banking sector. There were lot of apprehensions in the mind of new jonnies and soon working for a retail bank became unpopular. * Nationalised Banks popularity During all these events the only player in banking who were waiting to claw back the market shares were the nationalised bank. There was enough panic in retail investor’s regarding their funds being safe and sound, which the nationalised banks encashed fully. Maximum number of promotional activities and advertisement were given by them in the news paper and new channels. Even the investors responded to them equally and more than willingly because the backing up of the government was more than enough to provide a relief factor. Even in terms of employment, soon the nationalised banks became very popular and the people who were asked to leave from private banks where looking out for safe options to enter again. They were not willing to take any more risk. With this the bank got best of the aggressive talent in cheap prices. What corrective measures were taken? Decrease in CRR and repo rates. RBI again cuts repo rates ; CRR to inject additional liquidity of Rs 20,000 crore January 2, 2009: On a review of current global and domestic macroeconomic situation, the Reserve Bank has decided to take the following further measures: Repo Rate To reduce the repo rate under the liquidity adjustment facility (LAF) by 100 basis points from 6. 5 per cent to 5. 5 per cent with immediate effect. Reverse Repo Rate To reduce the reverse repo rate under the LAF by 100 basis points from 5. 0 per cent to 4. 0 per cent with immediate effect. Cash Reserve Ratio To reduce the cash reserve ratio (CRR) of scheduled banks by 50 basis points from 5. 5 per cent to 5. 0 per cent from the fortnight beginning January 17, 2009. The reduction in the CRR will inject additional liquidity of around Rs. 20,000 crore to the financial system. It is expected that the reduction in the policy interest rates and the CRR will further enable banks to provide credit for productive purposes at appropriate interest rates. The Reserve Bank on its part would continue to maintain a comfortable liquidity position in the system. Background to announcement of present monetary stimulus by RBI: The global financial situation continues to be uncertain. Since the official recognition of recession in the US, the UK, the Euro area and Japan, the downside risks to the global economy have increased. Concomitantly, the policy initiatives in the advanced economies are geared towards managing the recession and defusing potentially deflationary trends. The US has reduced the Federal Funds Rate to 0 – 0. 25 per cent. Several other advanced and emerging economies such as Japan, Canada, Republic of Korea, Hong Kong and China too have reduced their policy rates. India’s financial sector has remained resilient even in the face of global financial turmoil that is so deep and pervasive. Our financial markets continue to function in an orderly manner. India’s growth trajectory has, however, been impacted both by the financial crisis and the follow-on global economic downturn. This impact has turned out to be deeper and wider than earlier anticipated. Concurrently, because of global developments coupled with supply and demand management measures at home, inflation is on the decline. Reflecting these developments, the Reserve Bank has adjusted its policy stance from demand management to arresting the moderation in growth. In particular, the aim of these measures was to augment domestic and forex liquidity and to ensure that credit continues to flow to productive sectors of the economy. Notably, since mid-September 2008, the Reserve Bank has reduced the repo rate under the liquidity adjustment facility (LAF) from 9. 0 per cent to 6. 5 per cent, reduced the reverse repo rate under the LAF from 6. 0 per cent to 5. 0 per cent and the cash reserve ratio from 9. 0 per cent to 5. per cent How it helped? With these measures of RBI there was ample liquidity which was created in the market which forced the bank to lend out to companies as the funds in the banks were lying ideal and making no money for the bank. This actually started the lending process of the banks. * Role of fiscal stimulus package by government. There is a relationship between budget deficits and the hea lth of the economy, but is certainly not a perfect one. There can be massive budget deficits when the economy is doing quite well – the past few years of the United States being a prime example. That being said, government budgets tend to go from surplus to deficit (or existing deficits become larger) as the economy goes sour. This typically happens as follows: 1. The economy goes into recession, costing many workers their jobs, and at the same time causing corporate profits to decline. This causes less income tax revenue to flow to the government, along with less corporate income tax revenue. Occasionally the flow of income to the government will still grow, but at a slower rate than inflation, meaning that flow of tax revenue has fallen in real terms. 2. Because many workers have lost their jobs, there is increased use of government programs, such as unemployment insurance. Government spending rises as more individuals are calling on government services to help them out through tough times. 3. To help push the economy out of recession and to help those who have lost their jobs, governments often create new social programs during times of recession and depression. FDR’s â€Å"New Deal† of the 1930s is a prime example of this. Government spending then rises, not just because of increased use of existing programs, but through the creation of new programs. Because of factors one, the government receives less money from taxpayers, while factors two and three, the government spends more money. Money starts flowing out of the government faster than it comes in, causing the government’s budget to go into deficit. * How it helped? With the government spending more the government securities started declining in performance. As more and more securities were being issued the interest rate on securities started rising which has a direct impact on the gsec return. This again closed one more avenue of investment for banks as they were investing heavily into them instead of lending it out to corporate. This in all diverted the funds of the bank to the needful and thus started the lending process again. Future outlook In India there is evidence of economic activity slowing down. Real GDP growth has moderated in the first half of 2008 / 09. The services sector too, which has been our prime growth engine for the last five years, is slowing, mainly in construction, transport and communication, trade, hotels and restaurants sub-sectors. For the first time in seven years, exports have declined in absolute terms for three months in a row during October-December 2008. Recent data indicate that the demand for bank credit is slackening despite comfortable liquidity in the system. Higher input costs and dampened demand have dented corporate margins while the uncertainty surrounding the crisis has affected business confidence. The index of industrial production has shown negative growth for two recent months and investment demand is decelerating. All these factors suggest that growth moderation may be steeper and more extended than earlier projected. There are also several structural factors that have come to India’s aid. First, notwithstanding the everity and multiplicity of the adverse shocks, India’s financial markets have shown admirable resilience. This is in large part because India’s banking system remains sound, healthy, well capitalized and prudently regulated. Second, our comfortable reserve position provides confidence to overseas investors. Third, since a large majority of Indians do not participate in equity and asset markets, the negative impact of the wealth loss effect that is plaguing the advanced economies should be quite muted. Consequently, consumption demand should hold up well. Fourth, because of India’s mandated priority sector lending, institutional credit for agriculture will be unaffected by the credit squeeze. The farm loan waiver package implemented by the government should further insulate the agriculture sector from the crisis. Finally, over the years, India has built an extensive network of social safety-net programmes, including the flagship rural employment guarantee programme, which should protect the poor and the returning migrant workers from the extreme impact of the global crisis. RBI’s policy stance Going forward, the Reserve Bank’s policy stance will continue to be to maintain comfortable rupee and forex liquidity positions. There are indications that pressures on mutual funds have eased and that NBFCs too are making the necessary adjustments to balance their assets and liabilities. Despite the contraction in export demand, we will be able to manage our balance of payments. It is the Reserve Bank’s expectation that commercial banks will take the signal from the policy rates reduction to adjust their deposit and lending rates in order to keep credit flowing to productive sectors. In particular, the special refinance windows opened by the Reserve Bank for the MSME (micro, small and medium enterprises) sector, housing sector and export sector should see credit flowing to these sectors. Also the SPV set up for extending assistance to NBFCs should enable NBFC lending to pick up steam once again. The government’s fiscal stimulus should be able to supplement these efforts from both supply and demand sides. What Industry experts think? Mentioned below is what the senior experts in banking think of how the banking sector survived the crisis. 1). Mr. Anil Kumar Gupta (Vice President) Wealth management division- North and east region ING VYSYA BANK LTD. â€Å"The banking sector is very strong in India. Especially with the help of a governing body like RBI monitoring all the banks in Indian. † â€Å" I would say that step’s that were taken by the RBI in terms of rate cuts made so much liquidity in banking system that they were compelled to lend out to corporate. The recession gets more dangerous if the spending cycle by the people of the country or the lending cycles by the banks are put on a hold. † 2). Mr. Manavjeet Awasty (Senior Vice President) CITI BANK LTD- North â€Å"The ratio’s that the banks need to maintain because of RBI like CRR and SLR are the life savers for any banking firm. During financial crisis the condition of bankruptcy comes only when liquidity is crunched. The ratio’s which are maintained makes sure that enough liquidity is available in the system. † When the turnaround comes Over the last five years, India clocked an unprecedented 9% growth, driven largely by domestic consumption and investment even as the share of net exports has been rising. This was no accident or happenstance. True, the benign global environment, easy liquidity and low interest rates helped, but at the heart of India’s growth were a growing entrepreneurial spirit, rise in productivity and increasing savings. These fundamental strengths continue to be in place. Nevertheless, the global crisis will dent India’s growth trajectory as investments and exports slow. Clearly, there is a period of painful adjustment ahead of us. However, once the global economy begins to recover, India’s turn around will be sharper and swifter, backed by our strong fundamentals and the untapped growth potential. Meanwhile, the challenge for the government and the RBI is to manage the adjustment with as little pain as possible. Conclusion To conclude, we would say that the Indian banking sector is very strong in terms of its maintaining the said regulations and to follow the rule implied by its governing body which is RBI. The necessary steps were taken during the financial crisis which helped the banking sector to emerge out of the crisis without any major disturbance.

Persuasive speech: People should support organic food production Essay

Ladies and Gentlemen, Have you ever thought about the food you eat? Of course you have, we all do. We think about the taste, the ingredients and the health benefits, but we don’t question where the food comes from and we barely think about all the chemicals and toxins added to it, because most foods that we are surrounded with are all the same, most food companies that we enjoy are not organically produced, but are just easier to obtain. We see organic food so rarely and are encouraged so rarely by it that we don’t even think of it as a priority, we just think of it as an expensive rare market. I believe that people all around the world should support organic food production. In 1983 genetically modified food was introduced to the world, and by 1996 it was found on super-market shelves worldwide. It was a huge commercial explosion. Genetically modified food is produced from plants and animals that scientists have been able to modify by changing the gene structure, which can alter foods characteristics. One of the first examples of genetically modified foods is the FlavrSavr tomato; as you know when a tomato ripens, it reddens becomes soft, and naturally rots. Scientists then chemically were able to change the gene that causes this, meaning the tomato can ripen for longer, redden for longer, and rot slower than it naturally would. One of the main reasons why we should support organic food growth productions is for the better benefits for our bodies and health. As farmers plant seeds, they slowly inject the growing food with numerous amounts of toxins to make it genetically modified/ non-organic. The worst additions would be the pesticide toxins and irradiation. Pesticides are horrible toxins used on growing plants like tomatoes and oranges, which cause health risks. The Environmental Health News found a new case study showing that â€Å"prenatal exposure to pesticides, can decrease a child’s IQ and are proven to be more harmful to boys than girls as their developing brains are much more vulnerable.† Close to the end of the process when all the toxins have been added to create a sure non-organic product, irradiation is accustomed for non-organic products as it’s meant to kill the harmful bacteria and microorganisms in the plant, however naturalbias.com states â€Å"The purpose of  irradiation is to kill pathogens, but the ironic part is that it doesn’t kill all pathogens and certainly destroys most of the food’s good qualities. Irradiation also changes the chemical structure of the molecules within the food and can transform them into mutagenic and carcinogenic compounds that promote cancer.† All of this combined creates an awful product that I’m sure no one wants to consume. Laura Fillmore, from Gardnerville, Nevada, states in the NY Times â€Å"organic production is better for the land. Not probably better, but definitely better.† You probably don’t think about this much, because as teenagers we eat a lot of unhealthy products and although we are aware of some consequences and possibilities, we don’t seem to be very concerned about where the food comes from. Nevertheless we are concerned for the future of our planet, we want to help, we do the little things that make a difference; we recycle, we turn off the lights, we care about our future and our planet. But did you know that eating organic food can actually benefit the earth just as much? The chemicals added to the non-organic plants, suck all the nutrients out of the soil, damaging it, until it can start to restore, which can take over a hundred years. The land becomes useless, that’s why the US government is already looking for foreign land, which they could use for their farming. Due to these plantation techniques soil erosion occurs, it forms large amounts of dust in the air and when mixed with wind creates air pollution, which is v ery environmentally unfriendly, that’s why organic food is a better choice for farmers and for us to support. It’s an easy way we can help save our planet and our health. Organic food does tend to be more expensive, but if people can support organic food and demand its production, maybe we can create a better world for the next generation of people, it’s hard but it’s a goal that’s worth striving and completing! If we want to help our planet, our countries, and our selves we need think carefully about what we’re eating. We need to support organic food production we need to choose the best there is; which means the simplest. Israel, Brett, Environmental Health Sciences. â€Å"Environmental health news: Widely used pesticide seems to harm boys brains more than girls, 2012.† Accessed 18th September, 2012. http://www.environmentalhealthnews.org/ehs/news/2012/boys-and-chlorpyrifos Miller, Vin, Rage Wellness. â€Å"Natural bias: 7 major reasons to go organic, 2009.† Accessed 18th September, 2012. http://naturalbias.com/7-major-reasons-to-go-organic/ Savvy Vegetarians Inc. â€Å"What Is Organic Food and why we Should Eat It?† Accessed 19th September, 2012. http://www.savvyvegetarian.com/articles/what-is-organic-food.php

World war one BOOK REVIEW Essay Example | Topics and Well Written Essays - 750 words

World war one BOOK REVIEW - Essay Example Despite the economic focus of the book, it is written in a surprisingly easy to read style, and offers a deep thoughtful insight into the economic underpinning of the peace established in the aftermath of World War I. The book consists of several chapters describing the situation in Europe before and after the war, the peace conference and the Treaty, reparations, and remedial actions suggested by the author. One of the key points emphasized by Keynes throughout the book is the need for a non-vindictive peace treaty. The essence of this suggestion is that the victorious Allied states should minimize the burden of reparations and repayments borne by Germany. Keynes believes that settlement of frontiers and confiscation of property owned by the German governments would be a better solution because huge reparations envisaged by the Peace Treaty would discourage German domestic production and entrepreneurship. The result would be production of only subsistence minimum and eventual economic failure of Germany and its inability to pay the imposed reparations. Keynes claims that the negotiating parties were predominantly concerned by the political aspects of future peace and had almost no vision of the economic outcomes of the peace. The Big Three leaders balanced between the long-term political benefits of their countries, varying interests of their partners, and the public opinions of their nations. Thus, French Prime Minister Clemenceau perceived Germany as a potential threat to stability and peace in Europe, and a threat to security of his country. Therefore, France tried to make economic conditions of the Treaty as harsh as possible for Germany arguing that light economic penalties would result in rapid recovering and further strengthening of Germany. Keynes' position can probably be explained by the interest of his own country that was extremely concerned with the revival and further development of international trade which constituted the cornerstone of the country's economic potency. Lloyd George understood that Germany ruined by excessively hard economic claims of France and other Allies would seriously undermine marketability of British goods in the European market. The British representatives also viewed Germany as a potential barrier against Russia and reasonably considered that only country with healthy economy tied by strongly trade-based relationships could effectively fulfil such mission. No wonder Keynes labels Versailles as 'the triumph of political passion over economic reason' (p.16). Bringing forth a number of serious arguments, Keynes also predicts impoverishment of Central Europe and growth of radical nationalism. He brilliantly predicted not only failure of Germany to pay the imposed reparations, but also the process of hyperinflation that occurred in Germany after the war and the political victory of reactionist parties in the country. The prediction made by the author relies on comprehensive analysis of Germany's exports, imports, and other aspects of economic life.On the other hand, the death of millions Germans from starvation also predicted by Keynes never occurred. The list of remedies suggest by Keynes to avoid or mitigate the negative

Rhetoric Analysis of a Music News Website Essay

Rhetoric Analysis of a Music News Website - Essay Example In order to understand why this target audience continues such criminal activity, their assumptions about the record industry must be examined. Music United is one website that analyzes and addresses these assumptions. A coalition group of many different organizations committed against online music piracy, Music United strives not only to disprove college students' assumptions about the record industry, but also to persuade college students to abide by the law when obtaining music. In order to accomplish these goals, the Music United site utilizes textual and technical features to establish a direct communication with its targeted audience of college students. These features are functions of appeals to guilt, fear, empathy, and the law that are embedded within the content and the purpose of the site. College students view the internet as a place of public freedom, where people can come and go, sharing their ideas, pictures, and pages along the way. A basic knowledge of web designing is all that is needed to post material on the internet for the world to see. Over time, users view the internet as a "marketplace" where everyone is entitled to every page, picture, and idea posted. College students adopt this kind of public-sharing sentiment when they download mp3s without paying. ... ree for the taking in much the same way reading a newspaper article online is free (as opposed to paying $0.50 to read the same article on a hard copy). Music United disagrees with this "free for all" spirit of college students who participate in the sharing and downloading of illegal mp3 files. Not everything on the internet is for free, certainly not music. This is one of the college students' assumptions the site refutes. Music United accomplishes this goal through the use specially designed text-graphics, which appeal to guilt and fear. The home page provides an example of these text-graphics. Although they may look like regular text, these special headers and key quotations are actual graphics (clicking on them reveals they are gif files) that were most likely created in some photo editing program like Paint Shop Pro. The combination of red and white colors functions the same way a "stop" sign functions: it awakens the senses by signaling a warning. When college students see this graphic, the colors indicate that something of greater importance is being said here, as opposed to the regular black-colored text found throughout the site. The colors catch their eyes, compelling them to read the text. The font type is different and larger from the standard Verdana text found throughout the site, further emphasizing the importance of the message. The capitalization of the number ("2.6 million") and the cr ime ("illegally downloaded") not only stresses the importance of the text, but also accentuates the guilt the phrases elicit from its audience. When college students who engage in illegal mp3 trading read the text, they are struck with guilt. They immediately identify themselves as illegal downloader's who partake in the distribution of those 2.6 billion files each

Corporate finance Essay Example | Topics and Well Written Essays - 2000 words - 4

Corporate finance - Essay Example Breakavia is a newly formed country. The country has been formed recently by splitting from earlier communist states. The newly formed government of this country has recognised that there are many advantages in developing a democratic country and forming capital principles to regulate the country. Government also identified that the country has enough natural resources like oil and mineral reserves and therefore, it can functions as an independent state depending upon these huge natural resources sufficient for sustainable development of the country. As a newly developed country, the government thinks to invite the European multinational companies to enter to this market and use the natural resources which lead to overall development of the country in terms of many areas like economic development and employment and many more. For this purpose, the finance department of the country has decided to develop a standard tax regime and banking systems which will provide low cost finance for commercial and domestic housing development opportunity for developing tourism industry in the country. The government is also aiming to setting up Stock Exchange in Heeritis, the capital of this newly formed country. Therefore, to develop corporate sectors consists of domestic as well as foreign companies; the government is seeking corporate financial advice regarding development of a standardised corporate reporting for regulating businesses sector in the country. For this purpose, the finance minister of this country needs advice regarding two important areas of corporate finance. First, advice for standardised corporate reporting development by adopting any existing international standardised financial reporting. Second is importance of corporate governance in business and as an important part of annual corporate report the companies. International Accounting Standard

International Financial Management Essay Example | Topics and Well Written Essays - 1500 words

International Financial Management - Essay Example To the common man trade is simply the exchange of goods and services between two individuals, groups, and organizations. When trade begins to happen across regional boundaries it is categorized as international trade. Modern day phenomenon such as advancement in technology and globalization have allowed for international trade to happen at a much faster rate over a much larger scale. For this trade to occur smoothly and in order to avoid confusion and chaos; regulation and systematic order are extremely important. For this reason regions join hands to make trade blocs and trade regions which not only allow for a more efficient process but help both the trader and the buyer. In this essay we will be discussing the role of two trading giants, Organization of the Petroleum Exporting Countries  (OPEC), and North American Free Trade Agreement (NAFTA); both of whose introduction caused dramatic changes to the way modern age trade is conducted. Before moving forth it is essential to differentiate between a trade region and a trade bloc. A trade region is essentially an agreement based on regional boundaries. Member countries join such a region based on their geographical location and hence enjoy many trade privileges. An example of a trade region is NAFTA where North American countries come together to form member states. A trade bloc maybe a trade region but it is not necessary since members are made not on geographical proximity but based on ownership of common assets. An example of a trade bloc is OPEC where countries exporting petroleum have come together to ease trade. OPEC was established when five countries (Islamic Republic of Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela) signed a trade agreement in Baghdad in September 1960. These five countries were then known as the founding members for this organization and were in later years joined by many more countries. Gabon and

Interface Design Essay Example | Topics and Well Written Essays - 2000 words

Interface Design - Essay Example However, a lot of user interfaces are weakly designed. In this scenario, a lot of people are not capable to utilize system user interfaces efficiently for the reason of meager interface design. In addition, high-quality user interface design is significant for minimizing faults, expenses, extra guidance, workers earnings and boosting user working and operational contentment, efficiency as well as valuable services and supreme products (The Pennsylvania State University, 2010) and (Myers, 1998). Moreover, the user interface design is frequently linked with software interfaces as well as is commonly referred as HCI (Human-Computer Interface) factor. Though, user interface design has to be recognized anywhere users collaborate with displays or user controls. Additionally, the implementation of user-interface-design is persistent, comprising products like that a plain timepiece, an airplane arena, a DVD player, a software application and so on. In a lot of scenarios, a product with high- quality functionality is not willingly approved for the reason that it is not simple or resourceful to utilize. In addition, a product's front-end user-interface design as well influences the approval, working efficiency and promotion of a certain product. In other words, excellent quality user interface designs augment the competence, intuitiveness and ease level of a product, which transforms into product approval and utilization. Thus, for a product to be flourishing, it requires many features such as high-quality working, practical capabilities, technology and a functional and insightful user interface (UI) (Interface Analysis Associates, 2011) and (Gray & Higgins, 2006). This report presents a detailed analysis of some of the main aspects and factors that are important to interface design. In this scenario this research will assess and investigate important issues regarding development of the high quality user interface. Rules for High-Quality Interface Design This section disc usses some of the important rules for the high quality user interface design. In fact, effective user interface design is completely about acquiring the user’s viewpoint, as well as allowing things take place in the sequence that the client would imagine. In this scenario, the back end is normally programmed to gather or draw data in ASP, JSP, PHP, Filemaker, Lasso, etc. Additionally, the user’s screens are normally made gleaming on images as well as have to be cross browser and other platform amenable. Moreover, the page sizes are below 30kb, by making use of CSS to reduce code bloating. However, effectively shaped code is particularly significant here, because of the additional load time meager shaped code generates (FrontEndTech, 2009). Furthermore, in designing the user interface there is an awful need to ensure that the tester adjusts the report of the websites’ viewers. In this scenario, a usual function may be to discover this information in the website, and then look at how they try to fulfill a requirement in the website. In addition, video recording is a necessary element of high-quality testing, to be capable to precisely revert to the test data (FrontEndTech, 2009). Important Factors for Interface Design This section discusses some important factors that we consider to be important to int

The Economic Motive Essay Example | Topics and Well Written Essays - 500 words

The Economic Motive - Essay Example But in the rights of everyone, he busted everyone's lives among those 200+ people. Upon examining the case with the (3) three facts beyond a reasonable doubt is the opportunity, where Mr. Lee is said to be proven as he have the crime at hand. He also has the ability to do the crime. But the motive of him is somewhat unpredictable since don't mean to hurt these people but he is just doing what his ancestors are doing before him. In here the problem will be circulating at the situation on which is much better to measure his weakness. Will it be the opportunity and ability or his motive Glifonea stated again that , if u have been with or have any connection with the crime, we cannot call it not a crime doer, because what he did is also a crime, even we look at it on any other sides. As time passes by, our society, and the whole wide world are also changing. Why ot Mr. Lee's generation change their old tradition Kevin Bales said "Slavery is a horrible thing". As if everybody will look at this case, people might say it's too crude and tyrannous. And we should not treat other people mean fully.

AIRPORT PLANNING AND DEVELOPMENT Essay Example | Topics and Well Written Essays - 1000 words

AIRPORT PLANNING AND DEVELOPMENT - Essay Example According to London City Airport (2006: 10), LCA Master Plan indicates that the airport is in a position of accommodating 8 million passengers up to 2030. This is anticipated to occur in line with continued support of London growth, and meeting the increment in the demand for business travel. Moreover, the LCA Master Plan illustrates that the airport focuses on maintaining good neighbourhood with local citizens and environmental record. In addition, the plan illustrates that the airport will maintain its operational hours of closing at night during weekdays, and operating 24 hours during weekends (London City Airport 2006: 10). Further, the Master Plan claims that the airport will neither create another runway nor will it host larger aeroplanes. As such, the airport focuses on achieving its growth through maximization of its runway, creation of better facilities, and improving flight occupancy for passengers. Finally, LCA Master Plan indicates that passenger growth will increase duri ng the Olympic Games and employment opportunities will be created through the implementation of the Master Plan (London City Airport 2006: 10). The purpose of LCA Master Plan is to indicate the growth potential of the airport up to 2030 (London City Airport 2006: 10). The Master Plan was prepared in response to 2003 government requirement on White Paper that all UK airports have to develop Master Plans, which indicate growth in response to passenger demand. As such, LCA Master Plan indicates how to optimize on the current runways without a need of constructing new runways. In addition, LCA Master Plan reflects White Paper principles, as well as how the airport intends to make objectives outlined in the Master Plan a reality. LCA Master Plan illustrates how the airport intends to have a growth of 8 million passengers by 2030, minimize noise, and maintain environmental sustainability (London

Tale of Genji-Evanescence of Life Essay Example for Free

Tale of Genji-Evanescence of Life Essay Man has always been the one that chases the woman, and the harder the woman is for them to get the more the man wants her. People tend to not appreciate what they have in front of them until they don’t have them anymore. The evanescence of a man’s relationship with a woman of importance is a recurring theme throughout the book. This is demonstrated frequently through Genji’s relationships with the women and people he cared about throughout his life. In Genji’s life he encounters a variety of women through which the same routine occurs; he falls in love, he loses her then he suffers. An important aspect of this evanescence of women is the consolation phase which follows where male characters seek comfort for lost from women of similar physical traits. In The Tale of Genji, Murasaki Shikibu convey the idea of evanescence of important relationships through Genji’s life. Genji’s mother Kiritsubo, who is the Emperors true love, died when Genji was only three years old. Genji had very little time with his birth mother; this foreshadows Genji’s whole life as he matures of how he continuously suffers from losing the women he cares about. When Kiritsubo passed away the Emperor was filled with unending sorrow, he â€Å"had clung all too foundly to his old love, despite universal disapproval, and he did not forget her now, but in a touching way his affection turned to [Fujitsubo], who was a great consolation to him† (Murasaki14). The Emperor seeks a substitute for his wife while Genji seeks a mother. The Emperors grief over Kiritsubo is eased when he meets Fujitsubo because she almost exactly resembles Kiritsubo. Although Genji does not remember his mother much, when the Dame of Staff told him that Fujitsubo resembled his mother, Genji â€Å"wanted always to be with her so as to contemplate her to his heart’s content† (Murasaki14). In order to find comfort, both Genji and his father seek substitution after losing the women the y love. Genji’s relationship with Fujitsubo was short lived. Fujitsubo was a mother replacement when Genji was young, and when Genji came of age he was denied access to her. Genji had an affair with Fujitsubo, falls in love with her and got her pregnant; even though no one found out he still cannot marry her because she is his father’s wife. When Genji was eighteen, he discovers Murasaki in the hills north of Kyoto. Though Murasaki was only ten years old, she already looked extremely similar to Fujitsubo. To Genji, Murasaki is a subsitude for Fujitsubo; he is drawn into her from the moment he saw her and was determined to adopt her no matter what. Genji told the nun that, â€Å"There is an unfathomable bond between her and me, and my heart went out to her the moment I saw her† (Murasaki 99). He falls in love with Murasaki because of her physical resemblance to Fujitsubo. In the end, Genji successfully took Murasaki away to his household before her birth father could make his proper claim. Genji was a father status to Murasaki when she was young, but when she came of age Genji married her. Genji and his first wife Aoi’s romantic relationship is short lived, Genji and Aoi is married for a while, she passed away when he just began to care about her. Genji did not have a good married relationship with Aoi because he finds her cold and unsympathetic, but when Aoi died Genji was depressed. After giving birth Aoi became very sick, Genji went to visit her, â€Å"The sight of her lying there, so beautiful yet so think and weak that she hardly seemed among the living, aroused his love and his keenest sympathy. The hair streaming across her pillow, not a strand out of place, stuck him as a wonder, and as he gazed at her, he found himself unable to understand how for all these years he could have seen any flaw in her† (Murasaki176). Genji did not appreciate or notice Aoi’s beauty until he loses her. After the Emperor died, Genji’s power and influence d eclined. Genji and Oborozukiyo also had a short relationship. They were caught in the act of making love by the Minister of the Right. After knowing that their affair was found out, Genji sent a message to Oborozukiyo saying that, â€Å"I am not surprised to have heard nothing from you, but I am sorrier and more disappointed than words can say now that I am leaving all my world behind† (Murasaki 235). Genji was refrained from seeing her and was exiled to Suma by Lady Kokiden. Throughout Genji’s life, he always falls in love with the women, then loses her and suffers in the end. It is also human nature that the harder it is to get something the more we want to get it. Genji fell in love with Utsusemi when he visited the governor of Kii in Kyoto. Utsusemi’s little brother Kokimi appealed to Genji, therefore, he took him into his personal service. Kokimi helped Genji deliever letters to Utsusemi, and Genji â€Å"learned that there was no hope, her astonishing obduracy made him so detest his own existence that his distress was painfully obvious† (Murasaki 44). He tried hard to seduce her but kept on getting rejected. Genji got hurt when he was rejected by Utsusemi, â€Å"It infuriated him that her amazing resistance, far from disappearing, had instead risen to this pitch, and he was beside himself with outrage and injury, although he also knew perfectly well that strength of character was what had attracted him to her in the first place† (Murasaki 44).When Kokimi was unable to set up Genji to meet with Utsusemi, Genji tells him, â€Å"Very well, then you, at least shall not leave me† and had him lie down with him (Murasaki 44). Since Genji was unable to get Utsusemi, in a way Kokimi became a replacement for her. In The Tale of Genji by Murasaki Shikibu, Genji’s always have short lived relationships with the women he cares about. When it comes to love, Genji tends to not have self-control. He knew he should not pursue Fujitsubo, Oborozukiyo, and many other women, but still he does it. Therefore, Genji has to suffer from constantly losing the woman he loves as the consequence to his actions. After falling in love, losing his love, and suffering, Genji always looks for someone who is physically similar as a subsitution. When the first object of desire proves to be out of reach, attention is naturally transferred to the next best thing. Bibliography Murasaki, Shikibu, and Royall Tyler. The Tale of Genji. New York: Viking, 2001. Print.

Autopsy of a Crime Scene Essay Example for Free

Autopsy of a Crime Scene Essay 1.Which technique is the best choice when blood is found at a crime scene? In the genetics laboratory (under resources at the bottom of the window), who is one individual that contributed to modern genetic analysis? What did this person contribute? I would say that analyzing the blood in a lab would be the best technique. Alec Jeffreys is known as the father of genetic profiling. He invented what is now an essential technique, especially in forensic science, called a polymerase chain reaction, or PCR. 2.How are computers used in fingerprint analysis? Experts examine tiny fingerprint details known as minutiae. These may be loops, dots, forks, islands, etc. Several comparison points must be perfectly matched for two fingerprints to be considered identical. 3.Who is a pioneer in fingerprint analysis? Describe a famous case that this person was involved in. Edward Foster studied fingerprint analysis in the US and introduced it to Canada. IN1911, Foster testified as a fingerprint expert in the Jennings case. Fingerprints in the wet paint next to Mr. Hiller, the murder victim, were the only clue. Foster demonstrated to the court that the prints of Thomas Jennings, who had been arrested as he was fleeing the scene, matched those left in the paint, and Jennings was convicted. 4.What is the role of the forensic chemist in crime scene investigation? These experts analyze all chemical, organic, and inorganic aspects of a sample. They separate the components and identify them using a variety of tests and devices. Their findings are used as evidence by the investigator and in court. 5.Who helped pioneer forensic chemistry? Describe one of her famous cases. France McGill became a pathologist and teacher is Saskatchewan. When Dr. McGill examined the stomachs of an elderly couple who had died on Christmas Day, she found a large quantity of strychnine, a powerful poison, along with the bran. The murder weapon was soon identified: the two of the victims had eaten bran muffins baked by their granddaughter. She had actually intended them for her father. She was charged with murder, but later acquitted. 6.In the ballistics laboratory, what is the water tank used for? Describe the analysis. To determine whether a bullet found at the crime scene actually came from the suspects weapon, it must be compared with  another bullet from the same gun. Ballistics experts fire it into a special water tank that slows and stops the bullet so that they can collect it intact. 7.Who helped pioneer ballistics analysis? What did he contribute? Wilfrid Derome was a multitalented Quebec doctor: a medico-legal expert, toxicologist, forensic photographer, medical examiner and scientific communicator. He founded the Laboratoire de recherchà © medico-legales de Montreal, the first laboratory in North America and only the third in the world. His motto: â€Å"Never allege anything you can’t prove.† 8.Why is measuring and diagramming the scene important? A police officer makes a sketch of the scene, measuring distances using measuring tapes and a laser meter. He notes the specific location of objects, Clues, and the body. The photos of this sketch will later be used to draw an accurate plan of the site on the computer. 9.What materials or tools would a crime scene technician use? A crime scene technician would use a camera to photograph the scene, a polilight to find clues that a rent visible to the naked eye, he would make diagrams and take measurements, they would use a magna brush and some type of colored powder to make any fingerprints more visible, and anything to properly take samples with. 10.From the activity and the information it had, what aspect of an investigation do you think you’d most like to work in? For example, would you prefer one of the laboratories? What appeals to you about this particular aspect of the investigation? I think I would like to work in a lab doing ballistics examination because I like to do a lot of puzzles and I believe that in some aspects it is like a big puzzle trying to figure out which gun fired the bullets at the scene.

Understanding The Dell Direct Distribution Channel Commerce Essay

Understanding The Dell Direct Distribution Channel Commerce Essay The direct model refers to the fact that Dell does not use the retails channel, but sells its PCs directly to customers through its website, this way the intermediary steps that may add time and cost are eliminated, and Dell is directly linked to its customers. The direct approach allows Dell to build a relationship, which makes it quick and easy for customers to do business with Dell. Supplier DELL Final Customer The build-to-order model enables Dell to keep inventory down very low compared to competitors like Compaq and IBM. Dell has a low inventory of five to ten days, while Compaq and IBM have inventory of four weeks or more. Dell purchases a significant number of components from single sources. In some cases, alternative sources of supply are not available. In other cases Dell may establish a working relationship with a single source, even when multiple suppliers are available, if the company believes it is advantageous to do so when considering performance, quality, support, delivery, capacity and price (Annual Report, 1996). If the supply of a critical single-sourced material or component were delayed or curtailed, Dells ability to ship the related product in desired quantities and in a timely manner could be adversely affected. Even where alternative sources of supply are available, qualification of the alternative suppliers and establishment of reliable supplies could result in delays and a possible loss of sales, which could affect operating results adversely (Annual Report, 1996). An Event:- On 21 September 1999, an earthquake of magnitude 7.6 struck Chichi, Taiwan. It had devastating consequences. Baum (1999) reports that after the disaster more than 2,200 people lost their lives, more than 50,000 buildings were destroyed and total industrial production losses were estimated as $1.2 billion. This area features high production concentration of many other computer components, e.g. motherboards (more than two-thirds of world consumption in 1999) and notebook displays. Local producers of computer memory, TSMC and UMC being the leading Taiwanese suppliers, lost significant quantities of work in progress at the time of the earthquake. Sherin and Bartoletti (1999) report that production lines could not restart at the first couple of days after the event as sensitive critical-path equipment had been damaged. The world markets of memory chips reacted very fast to this news, as supply was constrained at the last part of 1999. The spot price of memory chips went up fivefold. computer memory increases were not passed on to consumers as higher product prices, but they were absorbed by the company and were passed on to investors in the form of less stock repurchases. Dell Computer Co. (2000a) announced that during the fourth quarter of 1999 it lost $300 million in revenue due to the Earthquake. Literature Review The global presence of DELL with sales offices in 43 countries, sales presence in 170 countries, 6 global manufacturing sites in Brazil, Tennessee, Texas, China, Ireland and Malaysia clearly defines its leading position in the computer systems market. The annual revenue for Dell Inc was $ 61.8 Billion (FY 2008- 2009). By cutting .the middle man and building PCs, enterprise products like servers, storages, solutions to order, Dell has revolutionized an industry once inundated with unsold inventory and products that quickly became obsolescent. Dells integrated supply chain has allowed it to gain market share while remaining profitable. Dells business strategy includes direct route to market, Supplier relationship and E- Commerce. Dell Direct Model Supplier Relationship (Just In Time Strategy) E- Commerce Direct Model: Dells business model is the envy of many competitors. Most other competitors are in the process of developing a direct market strategy but the transition from existing sales channel is not simple. Dell continues to gain market share by using its knowledge about its customers. First of all, the model eliminates the need to support a widespread network of wholesale and retail dealers, which allows them to avoid dealer mark-ups; avoids the higher inventory costs associated with the wholesale/retail channel and the competition for retail shelf space; and diminishes the high risk of obsolescence associated with products in a rapidly changing technological market. Supplier Relationships: Dell.s integrated supply chain allows it to keep only four days of inventory. Component price in computer industry falls almost 6% a week. The company can provide the component price decline to its customers quickly. In addition, Dell shares demand information with suppliers, so ensuring that inventory is kept to minimum. Dell also enhances cash flow by effectively paying suppliers after customers have settled invoices. Dells relationship with their suppliers has played a key role in their success story. They have found a way to get most suppliers to keep components warehoused within minutes from Dells factories in Austin, Penang, Malaysia, and Limerick, Ireland. This has led them to reduce their number of suppliers from 204 in 1992, to only 47 today, all of whom have been willing to cooperate with their warehousing plan. These suppliers manage their own inventories, while they run parts to Dell as needed. The biggest advantage for Dell is that they dont get b illed for the components until they leave the suppliers warehouse. Dell doesnt take these components until an order is placed, which saves them a lot of money because the prices of PC parts can fall rapidly in just a few months. E-Commerce: Dell has developed a process whereby they can assess the lowest possible price within an hour. Dells e-commerce infrastructure allows dynamic pricing strategy, whereby the same product and service can be sold at different prices, depending on the buyer. As a result of their innovative transformation, Dell sells more than $30 million per day on the Internet, accounting for 30% of their overall revenue. Dell views the Internet as the most genuine and efficient form of their direct model, providing greater convenience and efficiency to customers as well as to Dell. Theoretical Model :- Supply Chain Disruption, both potential and actual are the enemies of all firm. Supply Chain disruption can be defined as Unplanned and Unanticipated event that has disrupted the normal flow of goods and material within a supply chain. Risk Prevails in three categories i.e Internal risk , External Risk and Network related risk( Juttner et al. 2002). Risk can be catogorised in variables. Variables suggested by Ritchie and Marshall ( 1993) include environment, industry, organisation , problem specific, decision maker related variables. Supply Chain Disruption:- Anything that affects the flow and supply of raw material, sub component, finished good from all the way from origin to the final demand point. On the basis of the severity of impacts and their likelihood or probability of occurrence, the major established attributes of disruption can be classified as follows: The most vital attribute of disruption is the inherent cause of disruption. For example, Murphy(2006) categorized disruptions into natural events, external man made events, and internal- man made events. Blizzards, labour strikes, and product recalls would be examples of each category respectively (Murphy 2006). Another vital attribute is on how many spheres or disciplines of the supply chain have been affected by a given disruption at one time. The third vital attribute is whether or not the disruption is associated an environmental change. Disruptions that cause an environmental change usually impact some form of the infrastructure for either a long time period or permanently. The fourth and the final attribute of disruption is the duration of the disruption itself. The framework tests the supply chain risks based on the above mentioned attributes and classifies them as deviation disruption or disaster, based on the severity of the disruption over the supply chain and the probability of occurrence as a parameter for risk calculation, assessment, prevention or mitigation. In order to see the different aspect of risk management in a supply chain, a frame work prepared by Manuj and Mentzer( 2008) has been reviewed.The schematic diagram of the framework is shown below. The framework is created in view with firms having a global outreach who source from different countries. This framework provided is a comprehensive one with both risk management and mitigation factors incorporated in to it. This framework proved to be ideal for risk management and mitigation in Dell, a truly global firm. The framework adopts 5 step approach for Risk management and Mitigation. Risk Identification: Risk identification is an important stage in the risk management process. Consequently, by identifying a risk, decision-makers become aware of events that may cause disturbances. To assess supply chain risk exposures, the company must identify not only direct risks to its operations, but also the potential causes or sources of those risks at every significant link along the supply chain (Christopher  HYPERLINK #idb3et al.HYPERLINK #idb3, 2002). Hence, the main focus of supply chain risk analysis is to recognize future uncertainties to enable proactive management of risk-related issues. Risk Assessment and Evaluation: After the risk analysis, it is important to assess and prioritize risks to be able to choose management actions appropriate to the situation. One common method is to compare events by assessing their probabilities and consequences and put them in a risk map/matrix Risk Management Strategy: Different strategies are adopted for various risks according to their importance and nature. Various strategies are suggested in the framework, such as Avoidance, Postponement, Speculation, Hedging, Control, Risk Sharing/Transfer, Security etc. Implementation of Supply Chain Risk Management Strategy:- Once the various strategies have been decided, plans have to be made for implementing the strategies based on their priority. Mitigation of Supply Chain Risk: Mitigation is the most commonly considered risk management strategy. Mitigation involves fixing the flaw or providing some type of compensatory control to reduce the likelihood or impact associated with the flaw. A common mitigation for a technical security flaw is to install a patch provided by the vendor. Sometimes the process of determining mitigation strategies is called control analysis. Expansion of the Framework and explanation of Potential Source of Disruption Recovery:- The global SCRM frame work designed by Manuj and Mentzer (2008) was applied on the Dells Value chain to analyze and identify the Risk. The framework was expanded and broken in to various stage and then applied to the Dell Value Chain. Risk Identification: In this phase various risk were identified by brain storming. The risks were classified in the following sub heads. Supply Risk: This includes of Wrong Supplier selection ,Natural Calamity like Earthquake, Hurricane, Low Inventory levels, Quality Issues , Supply disruption and Price escalation. Operations Risk: This includes Exchange Rate, Country Factors, and Virtual integration network breakdown. Demand Risk: This includes New Competitor, Technology Changes and Demand Fluctuation. Security Risk:- This includes Information system breach and Freight breaches. Risk Assessment and Evaluation: In this phase we have calculated the RPN number. Probability and impact of disruption were quantifies on the scale of 1 to 10 based on the hypothesis on the most severe to be 10 and the least severe to be 1.Eventually the most probable to be 10 and the least probable to be 1. Multiplying the Probability and Probability, RPN was calculated. Risk Management:- In this phase we have suggested the various ways by which an organization can minimize the impact by the risk which were identified in the Risk identification. Risks having high RPN number such as Supply Disruption , Low inventory Level should be attacked first, gradually coming down to the lesser RPN numbers and taking proper measure to minimize the risk. Risk Mitigation: Identifying the severity of disruption, risk mitigation strategy was defined. The academic framework by Manuj and Mentzer(2008) was tested hypothetically over the case of severe supply chain disruption faced by Dell and other computer systems manufacturer, during the time when Taiwan, one of the largest manufacturing base for semiconductor and motherboard production and assembly, suffered an earthquake, which is critically analysed as an unplanned unorganised risk for any functional supply chain in the manufacturing scenario.. After the step wise approach of finalising the framework and implying and expanding it over a real time already occurred situation of crisis it was inferred that severe supply chain disruptions have a great impact on the firm. The existence of a clearly articulated risk management plan for disaster-induced supply disruptions has not appeared in Dells official announcements during the six month period after the event in Taiwan. The inherent supply chain agility of this CDM Company, however, offered it several means of recourse during the month that followed the disruption. Dell operates on a configure-to-order basis, thus the final decision on product configuration rests with Dells customer. The moment an inputs price increases, customers may modify their configuration preferences by requesting less of the expensive input. Veverka (1999) reports that Dell changed its marketing strategy after the Taiwan earthquake in an effort to shift consumer preferences towards low memory products. A second ingredient of Dells supply chain strategy, long-term contracts with suppliers, did not deliver steady prices; despite expectations to the contrary in the PC industry press (Deckmyn, 1999). Baljko-Shah (2000) reports that Dell was forced to buy regular DRAM memories after the Taiwan earthquake, while their prices were high. Dell was planning to incorporate in its most innovative product line best-available technology memories (RDRAM). Contrary to earlier announcements, computer processor unit (CPU) suppliers did not make available on time CPUs compatible with the new technology memories. Dell ended up buying conventional memories during the earthquake-induced shortage in order to meet advertised commitments to increased memory capability in its innovative products. Dell Computer Co. (2000a) announced that during the fourth quarter of 1999 it lost $300 million in revenue. With respect to the framework by Manuj and Mentzer ( 2008) , the disruption at dell, in the case of earthquake in Taiwan at the supplier base, disrupting the dells supply chain can be covered by deploying the Risk resilience. The key points to mitigate the damages caused by the Supply Chain disruption are recommended as below. Postponement of Risk :- Postponement entails delaying the actual commitment of resources to maintain flexibility and delay incurring costs (Bucklin, 1965). It appeared that an increasing trend toward off-shoring provided a motivation for form postponement. Yang et al. (2004) also argue that with increasing attention to mass customization, agile operations, and e-business strategies, there should be more interest in postponement; however, there has been an absence of empirical research supporting this implication. Since global supply chains face high risks, postponement becomes increasingly valuable as the proportion of off-shore components in the final product increases. Therefore, as a preliminary observation, we believe that as the proportion of off-shore components in the final product increases, the likelihood of a supply chain considering investment in form postponement will increase. Speculation of Risk: Speculation (also called selective risk taking) is a demand-side risk management strategy that is the opposite of postponement (Bucklin, 1965). It includes such actions as forward placement of inventory in country markets, forward buying of finished goods or raw material inventory, and early commitment to the form of a product, all in anticipation of future demand. In the interviews, speculation emerged as the most commonly used strategy to address uncertainty in the business Environment: Hedging of Risk: In a global supply-chain context, hedging is undertaken by having a globally dispersed portfolio of suppliers and facilities such that a single event (like currency fluctuations or a natural disaster) will not affect all the entities at the same time and/or in the same magnitude. For example, dual sourcing can be used as a hedge against risks of quality, quantity, disruption, price, variability in performance, and opportunism (Berger et al., 2004), but dual sourcing requires more investment than single sourcing. Transfer of Risk:- The transfer of risk primarily encompasses a risk sharing strategy in a case of severe supply disruption by sharing it with 3rd party suppliers and allies. CONCLUSION, RECOMMENDATION, IMPLICATION FOR FUTURE RESEARCH:- Conclusion:- Supply chain risk management is a decision process often requiring a multidisciplinary approach. Typically, risk mitigation and contingency planning entails skills in operations strategy and supply chains. After a close analysis of the Dell Direct Supply Chain system considering the impact of the Taiwan earthquake on the dell by the frame work developed by Munoj and Mentzer ( 2008). The overall objective of the framework is to reduce the impact of disruption and understanding the various factors that play a role in the post- disruption recovery and decision making process. Dell Computers doctrinal commitment to minimal inventories, however, is well known. Companies with similar strategic commitments are unlikely to be interested in risk mitigation policies involving emergency inventories along the supply chain. In this case, risk transfer is left as the main option to consider, including contracts with emergency suppliers and insurance contracts. In light of Kunreuther and Bantwals (2000) discussion on rigidities in the successful introduction of Cat-Bonds, one alternative risk transfer instrument, the latter task may be challenging strategy to apply, but appears to be worth the effort. Scope for Future Research :- The Supply chain Disruption Management framework and disruption management process model have areas of interest that have not been able to be explored in this research leaving multiple area for future research. First area of research is understanding of the decision making process and its operational and behavioural factors. Second area of future research is the impact on the risk that disruption and firm strategies have. Putting to practice supply chain theories in order to bridge supply chain strategy with company financial performance is a daunting task. Supply chain theory attempts to clarify the complex interconnections among many actors in supply networks. Yet, it is unclear whether simple formulas for supply chain performance, encompassing a few variables, will have general application to business practice. In addition, it is difficult to design empirical studies that would isolate the effect of supply chain strategy on business performance from other company decisions and environmental variables. The study of supply chain disruptions may provide an interesting exception to the latter restriction, in that disruption impact may test whether supply chain management affects Company risk structure. There is a fast growing literature on alternative methods of risk transfer. It would be interesting to explore whether the latter methods may shield customised product direct marketing companies from investors uneasiness after disruptions in component markets.