Global Warming An Ethical Issue Essay - 1519 Words

Present generations are reaping what their forefathers had sowed for them; future generations will reap what present generations have been sowing whether they like it or not. Past, present and future generations are dependent on each other’s choices. Technologies are zooming rapidly. Humanities prefer to overwork natural resources and often fell into technologies’ competitive temptations. Generations are getting smarter and innovative each day. New products are constantly changing to catch customers’ attention, while current products are still young and are not even ready to mature yet. While many are embracing technologies, few are concerned with the scars that have been embedded on natural resources. It is so easy to fall into the†¦show more content†¦America recorded highest temperature in existing history in the year 2012. This is 10F above the previous statistics in 1998 (Light). Is it fair that our future generations suffer the consequences of our ignorant behavior? Must we choose wealth over future generations? This is a global dilemma that should be carefully put into perspective. Human keeps on pulling natural resources and stores are filled with unwanted lines of products. Sadly, most people tend to concentrate on fast results/short term. Preserving the environment is the only answer to save our future generations from the impact of global warming (AtKisson). Researches reveal that natural events as well as human related activities contribute to changes in average global temperatures. AtKisson affirms that global warming is basically a result of increased emission of greenhouse gases into the atmosphere. This atmospheric carbon dioxide (co2) comes from anthropogenic (caused by humans) sources. The concentration of greenhouse gas carbon dioxide, nitrous gases, and methane in the atmosphere has increased evidently due to human activities since 1800. NASA’s article adds: Greenhouse effect – warming that result when the atmosphere traps heat radiating from Earth toward space. Certain gases in the atmosphere block heat from escaping. Long-lived gases that remain semi-permanently in the atmosphere and do not respond physically or chemicallyShow MoreRelatedGlobal Environmental Issues1118 Words   |  5 PagesEnvironmental issues are a major problem in our world, and all people need to recognize the need for our social obligations. The effect of humans on our planet has increased significantly over the years. Not only is the population constantly growing, there is â€Å"new technical power to dig deeper, cut faster, build larger, and traverse more quickly great distances in automobiles, trucks, and planes† (Brown, 2001). Severe environmental issues have appeared throughout the world as a result. It isRead MoreClimate Change Essays1637 Words   |  7 Pagesclimatologists, the notion of Global warming today is commonly heard but very mis understood. One might ask, what exactly is global warming and should we care? According to What is Global Warming? in LiveScience, global warming is a gradual increase in the temperature of Earths surface and atmosphere, that has become a world-wide environmental issue.1(Lallanilla,2013) Similarly, this topic is one of great controversy because of widely differing opinions on current global warming rates and the impact byRead MoreThe Star Of An Inconvenient Truth897 Words   |  4 Pagesmindset and a loss of consideration for the world they live in. In order to come across an audience who have lost a sense of ethical conduct, Al Gore, the star of An Inconvenient Truth, produced by Davis Guggenheim, formulates a thorough presentation that exposes the foreboding threat of global warming, proclaiming that humanity’s only hope in resolving this worldwide issue will result from selfless, human action. Gore’s use of ethos through real-life recordings and graphic simulations support Gore’sRead MoreClimate Change and Public Policy Essay examples1503 Words   |  7 PagesIt is becoming increasingly certain that climate change will have severe adverse effects on the environment in years to come. Addressing this issue poses a serious challenge for policy makers. How we choose to respond to the threat of global warming is not simply a political issue. It is also an economic issue and an ethical one. Responsible, effective climate change policy requires consideration of a number of complex factors, including weighing the costs of implementing climate change policiesRead MoreCritique Nigel Dowers Perspective Of Ethical Development And Globalization1722 Words   |  7 Pagesresources, especially trees, is one contributor to climate change and global warming. In this paper, I will critique Nigel Dower’s perspective of ethical development and globalization through the lens of John Broome’s Climate Matters: Ethics in a Warming World. In th is paper, I will critique Nigel Dower’s perspective of ethical development and globalization through the lens of John Broome’s Climate Matters: Ethics in a Warming World and argue that one cannot consider globalization without climateRead MoreControversial Issues in Entertainment1283 Words   |  6 PagesIn today’s world which is full of controversial topics or issue which can be found in the mass media. This does continue towards the future for the timeline of any controversial issue during the history and for the public changed in time. The media does present the topic for the public. There is many portrayal of the subject which can demonize a topic so the mindset of the people is listening to the presentation of any story. This controversial topic which has the bias from this is the Freedom ofRead MorePulling Out From The Paris Agreement Essay834 Words   |  4 Pagesis struggling and it is called global warming. The earth’s temperature is increasing day by day due to the greenhouse gases, which is caused due to humans activities. So human are responsible for this and it is the moral duty of a human being to take care of this problem. In order to maintain balance in earth and controlling global warming, the whole world was assigned to participate in the Paris agreement. Paris agreement is working as a team to control global warming, focusing on using renewableRead MoreThe Rights Of The Global Warming1477 Words   |  6 PagesMy argument is that those who have taken part in causing global warming, which are the developed countries, should be held responsible by cutting back more than other countries to correct the injustice that they have inflicted on the poorer countries. These nations are infringing on the rights of the victimized nations. Therefore, I would argue that there is an ethical basis for deciding whether some countries should cut back emissions more than others because the situation is not only unfair, butRead More Environmental Case Analysis: the Risks of Global Climate Change1185 Words   |  5 PagesEnvironmental Case Analysis: The Risks of Global Climate Change Introduction The natural world seems to be deteriorating around us, and it seems to be our fault. We are uncertain about the extent of the deterioration, the means that would reverse it, and the prospects for human life in the future (Newton, Dillingham, Choly, 2006, p. x). The environment and its protection is an extremely serious issue. Many environmental issues exist including endangered species, waste pollution, over populationRead MoreCoal-fired Power Plant 1433 Words   |  6 PagesWith the fast economic development, the global warming issue is threatening our planet nowadays. Global warming can cause ice melting, which leads to sea level rise globally. Many lovely cities and countries, such as London, Venice, and Bangladesh will be flooded with seawater and will disappear on the map. Moreover, ecosystems are badly affected by global warming, which forces many species to leave their homelands and move to the north or even extinct. Not only animals are under the extinction dangers

Collaboration Between Secondary Care And Aged Care Facilities

Memorandum Date: 18 October, 2015 To: Aileen Oliver Manager Cashmere and Cashmere Heights Home From: Shereen Singh, Clinical Nurse Manager Subject: Increasing collaboration between secondary care and aged care facilities. managing tertiary care services and acute care pathways in complex organisations Here is the report on why there needs to be collaboration between secondary care and residential care. This report gives recommendations for increasing awareness and .. It incorporates both primary researches focused on secondary care staff and also primary care staff from the . Although the I am grateful to my contemporary health issues lecturer who assisted me in support and directing me. Please contact me if you would like additional information. I would be happy to implement some of the recommendations in this report by developing study/ talks for a better intergration of elderly from secondary to residential care. managing tertiary care services and acute care pathways in complex organisations Presented to: Aileen Oliver Manager Cashmere Home and Cashmere Heights Home Wellington Prepared by: Shereen Singh Clinical Nurse Manager Cashmere Home and Cashmere Heights Home Wellington 18 October 2015 Executive summary This report details findings from the literature and researches in regards to the management of tertiary care services and acute care pathways in complex organisations. Purpose and method of this report Findings andShow MoreRelatedAging Is Unavoidable For Humans Essay4378 Words   |  18 Pagesworldwide, it demands better medical care. As we enter the new period of health reforms there seems to be foreseeable aging population. This causes the severe staff shortage and skills with the health sector. 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Nowadays these people are facing the problems like lack of care, emotional support and economic support from the family etc. Our culture recognizes the status of the parents as that of God.   A moral duty is put on the children to take care of their parents. But nowadays what we are observing in our society is that the children are not willing to take care of their parents, they do not want to spend money on them, they are treating their parents as aliensRead MoreThe Morse Fall Risk Assessment1853 Words   |  8 Pagesimportant to identify and plan care for risk factors, but the total score may also be used to predict future falls. This tool takes less than three minutes to complete an d is administered by a registered nurse in a long-term care facility. It is combined with a clinical assessment and review of medications to assess the patient’s risk for falls. The tool should be administered at least once a day and also if there is a change in patient status (Agency for Health and Research Care and Quality). The toolRead MoreContex and Principles for Early Year Learning6109 Words   |  25 PagesPlus partners to improve the outcomes of all children up to five years of age and reduce inequalities between them †¢ secure sufficient childcare for working parents †¢ provide a parental information service †¢ provide information, advice and training for childcare providers. The act also lays out registration and inspection arrangements, providing for an integrated education and care framework for the Early Years and general childcare registers. The sufficiency, information and outcomesRead MoreA Brief Note On The World Health Organization1841 Words   |  8 Pagesinterventions, the barriers as well as the disadvantages in which disability are associated can be limited. According to Mishra and Gupta (2006), individuals with disabilities remains the world’s largest minority group. Because public services and facilities were designed for the non-disabled population, individuals with disabilities encounter problems related to health, education and employment (Mishra and Gupta, 2006). In addition, individuals with disabilities tend to have a high experience of isolationRead MoreYouth Development Programs4107 Words   |  17 Pagesand operated privately by religious and ethnic groups–were serving indigent children. Institutional child care during this period tended to take an undemocratic and antifamily approach characterized by discipline, training, and rehabilitation. These institutions operated with minimal oversight and mass care, rather than individualized attention, was the norm. Support for institutional child care waned for several reasons including increased economic uncertainty; the inability to build institutionsRead MoreOrganis ational Study6157 Words   |  25 Pages It is a social unit of people, systematically structured and managed to meet a need or to pursue collective goals on a continuing basis. All organizations have a management structure that determines relationships between functions and positions, and subdivides and delegates roles, responsibilities, and authority to carry out defined tasks. Organizations are open systems in that they affect and are affected by the environment beyond their boundaries. 1.2 MEANINGRead MoreEducational Framework For Inclusion Of Children With Disabilities1994 Words   |  8 Pagesinterventions, the barriers as well as the disadvantages in which disability are associated can be limited. According to Mishra and Gupta (2006), individuals with disabilities remains the world’s largest minority group. Because public services and facilities were designed for the non-disabled population, individuals with disabilities encounter problems related to health, education and employment (Mishra and Gupta, 2006). In addition, individuals with disabilities tend to have a high experience of isolationRead MoreUnit 064 Context and Principles for Early Years Provision7106 Words   |  29 PagesJobcentre Plus partners to improve the outcomes of all children up to five years old and reduce inequalities between them, secure sufficient childcare for working parents, provide a parental information service and provide information, advice and training for childcare providers. The act also lays out registration and inspection arrangements, providing for an integrated education and care framework for the Early Years and general childcare registers. The sufficiency, information and outcomes duties

The Controversy of Black Lives Matter Free Essays

string(102) " where life is somewhat harder for the average African American, especially African American females\." Brittany Nnane Professor Adam Norman ARW 250 January 1, 2018 The Controversy of Black Lives Matter The developing rise of the Black Lives Matter movement started from a hashtag through social media, essentially Twitter, with the death of Trayvon Martin who was an American African teen who was unarmed and fatally shot by law enforcement in a matter of seconds to abruptly becoming national news. Many unjustified deaths followed: Eric Garner, Michael Brown, Sandra Bland, Philando Castile, Tamir Rice, Freddie Gray, and the list goes on. These cases of unarmed deaths bring the existence of racism. We will write a custom essay sample on The Controversy of Black Lives Matter or any similar topic only for you Order Now The Black Lives Matter movement is an organization not only to bring awareness to institutionalize racism and violence of police brutality against unarmed African Americans but to seek a solution for the issues. In depth of Black Lives Matter, defined as â€Å"an ideological and political intervention in a world where Black lives are systematically and intentionally targeted for demise. It is an affirmation of Black folks’ humanity, our contributions to this society, and our resilience in the face of deadly oppression† (Black Lives Matter). Black Lives Matter, however, has been portrayed in the media as fake news. Some media wrongly think that BLM is racist, anti-white, or black-supremacist. But instance Black Lives Matter is a voice for African Americans to be heard. BLM movement originated in 2013, with three organizers; Alicia Garza, Patrisse Cullors, and Opal Tometi, who created the black political will in the project of a hashtag #BlackLivesMatter. In response to the acquittal of George Zimmerman of murder in the death of Trayvon Martin. The night Zimmerman killed an unarmed African American 17-year-old male and has the right to stand free, was the night for a change in the nation. The dispute then raised with the fatal gunshot, fired by a white police officer, Darren Wilson that killed Michael Brown on August 9, 2014. This recaptured a debate on race in the United States of America. In November 2014, the verdict left not only Ferguson speechless but the nation, as America took a turn for the worst. The grand jury made their decision not to prosecute Officer Wilson for the murder of Michael Brown as proclaimed excuse is to be in â€Å"self-defence†, which impacted a movement to demand a change on the relationship on law enforcement and American Americans. This then led to a violent riot of disruption from the community as one against the authority. Violence may not be the solution, but it’s an expression of anger in the African American community. Not only did this disturb the public eye but it also brought attention from the former president of the United States, Barack Obama as he addressed the discrimination of African Americans in the hands of law enforcement behind a badge which ironically is there to serve and protect. But instead they put fear in the eyes of people of colour, not knowing if putting their hands up, which is a form of surrender will get them killed. As statistics shown according to mapping police violence, African Americans are three times more likely to die from police brutality, defined as use of excessive force (Mapping Police Violence). As the treatment level differs on the colour of your skin as Obama stated, â€Å"you’re black you’re more likely to be pulled over or searched or arrested, more likely to get longer sentences, more likely to get the death penalty for the same crime† (Davila 762). Officers who have killed innocent lives are infrequently indicted, or have a less conviction for the crime of police brutality illustrated as the use of excessive force. With this statement taking to consideration The Black lives matter association has become hope for all African Americans in the justice system that fails to reveal the truth for the unspoken African Americans that lay dead due to senseless killings. The hashtag is utilized by social media platforms with the intent to provide false news reports about the Black Lives Matter movement, creative a negative image for the organization due to the opinion based claims whom are made without factual information. Media plays a big role on the life of an individual and it can have a huge influence on the mindset of that individual by influencing their thoughts and opinions. This concept goes deeper than the portrayal of media, because it also stems from the history of the African American community. The racial discrimination of African Americans has been an ongoing issue in the United States.History shows how poorly African Americans have been treated in the past and the stigma that is associated with them. A significant example of the hatred that Blacks endured is the creation of the Ku Klux Klan, also known as the KKK, being one of the most famous and oldest hate group in America. Their main motive was to promote terror and violence, mostly targeting African Americans. They targeted these individuals simply because of the color of their skin and many of the people associated with this group, if not all of them weren’t fond of equal rights, stating that they â€Å"did not agree with policies that elevated the rights of the local African American population.† (History 2017). In result of them not agreeing with these policies, they aimed to destroy African American community and belittle them, by using tactics such as aggression and false claims. These actions can be related to what we see today through social media outlets who promote fake news against the Black Lives Matter movement, portraying them as something they are not. This group was created with the intention to fight for equal rights, however the media has somewhat changed the narrative and has categorized this movement as being violent. Although a lot of progress has been done since the days where African Americans were slaves, these individuals have not truly gained the equal rights that they have fought for. We live in a society where life is somewhat harder for the average African American, especially African American females. You read "The Controversy of Black Lives Matter" in category "Papers"There are many obstacles that these individuals face such as facing institutional racism, colorism, police brutality, and much more. This is why organizations such as the Black Lives Matters movement are formed to push for black equality, and fight for the injustice that many people face in their day to day life. However, these organization as being tarnished by certain media outlets, for example, a news report by Dan Evon made false claims about a Black Lives Matter protest, accusing black individuals of blocking emergency vehicles from providing aid to citizens stranded by Hurricane Harvey in Texas. The photo in the article was not in fact one of the tragedy in Texas, but was actually a picture of a peaceful protest against police brutality in Atlanta, which at the time had no emergency vehicles being blocked. The article labelled the protestors as ‘thugs’ and portrayed them as being violent and selfish, as stated in the following excerpt in the article: â€Å"This is just sick! Emergency crews are working hard to make sure that they can be there to rescue Hurricane Harvey victims, but leftist punks from the Black Lives Matter clique don’t think people deserve to be saved.† (Snopes 2017). This is a perfect example of the influence that media can have and how it can negative persuade its audience because if one simply reads that article without attempting to validate the story, they would not be very fond of this movement, viewing it as being negative, while in fact this protest was the reaction of a police brutality incident that ended with the death of an innocent young black individual. The Black Lives Matter movement has grown significantly since the civil rights protest that arose after the fatal shooting of Michael Brown, who was gunned down by a police officer in 2014 (Foran 2015). This movement has improved the community substantially providing unity amongst African American, with several campaign trails running through college campuses in order to bring awareness to the younger generation. Presidential candidates, as well as the Democratic and Republican political parties, have shown little to no involvement in the solution of police brutality and racial discrimination. The president of the United States, Donald Trump, opposes the goals that the Black Lives Matter movement is trying to achieve, labelling them as an â€Å"anti-white† organization and has shown no effort to seek a solution for the racial discrimination problem that African American citizens face. It is quite evident that many of the individuals who support Donald Trump are racist, whether it is done covertly or overtly. Throughout his presidential campaign, there were many acts of racism being conducted at his rallies, which made it â€Å"difficult to deny the problem of racism in America† (Foran, 2015). These acts of racism have however helped the African American community unify themselves and fight for what they believe in once again, stated as â€Å"we have also helped catalyze other movements and shifted culture with an eye toward the dangerous impacts of anti-Blackness† (Black Live Matter). The Black Lives Matter movement has grown and is still determined to achieve their end goal, which is to end the racism in the criminal justice system.Black Lives Matter receives many negative backlashes when it was simply founded as a result of Trayvon Martin being killed in 2013. The main goal of the movement is to promote the unity and peace. This movement provides African Americans with a voice and a platform to speak up for their beliefs and for what they deem unacceptable. Organizations such as this are extremely important because not only do they fight against social injustice but they show the younger generation that it is okay to stand up for that they believe is right.With the negative views that the Black Lives Matter receives from certain media outlets, it is crucial for them to find ways to counter the negativity being thrown at them. A poll taken in 2015 to find out how the American nation views BLM, showed that 43 percent of voters had a positive view on the movement, while 53 percent have a negative view on the movement. The effect of the BLM is to promote peace and unity In America, but to also stop discrimination and unnecessary violence against black individuals. However, with these statistics it shows how America looks down upon black achievement and it is reflected through the reactions of social media.  Ã‚  An effective yet simple way to counter negative feedback from the media is to not deviate from their main objective. The organization was created in order to spread awareness to social injustices and was done so peacefully and positively. They must avoid letting what the media portrays them as, i.e. ‘thugs’, into becoming a reality. This means continuing to peacefully protest and not getting violent with members of the law enforcement no matter how tragic the situation may be. Another way they can achieve this would be by informing the general public more about what they stand for, and attempting to reach out more to these media organizations that want to put out this false narrative about the movement. By going to these media outlets, it allows them to speak on their own behalf instead of having the media organization speak for them. As well as inviting social media role models to stand by them and promote their message that they are trying to get across. As long as they stay true to their morals and avoid becoming what certain media organization portray them as, the Black Lives Matter movement will successfully be able to avoid whatever the media may throw at them. With the BLM standing by these tactics they were able to become one of Americas largest empowerment groups in American history. The movement still stands today because of their ability to stay resilient against negative claims, states an article on BLM and how a new movement takes shape. â€Å"it’s escaped the control of the ruling establishment. Neither police repression nor Democrats have been able to stop the movement. which has confounded the politicians and the news media, accustomed as they are to use the same old scripts to discuss race and protest without challenge† (Smith 2015). This shows how resultant the BLM has been throughout the years and many different companies organizations, and even our political system has tried to shut them down. However, the Black Lives Matter movement continues to stand today and making tremendous progress.In conclusion, Black Lives Matter is a reflection of the voice of black individuals worldwide. The movement is used to speak up against constant oppression and racial discrimination, and fight for equality and peace in this world. BLM stems not only from current day issues but also from historical experiences involving unfair treatment of African American citizens due to pigment of their skin in the control of law enforcement. The organizations motive is to transform the criminal justice system as they seek justice against unresolved countless deaths. BLM has constantly been labeled by white supremacies as ‘gang members’ or ‘anti-white supremacies’. All of BLM’s efforts are constantly looked down upon as false claims about their peaceful protests are made to give the organization a bad look. Today BLM is constantly working to try to improve society by promoting peace and equality without giving into negative feedback from the media. Overall, BLM continues to fight for what they believe is right, and continues to push for equality and black achievement worldwide. Works Cited#BlackLivesMatter (3). 15 Sept. 2017,  http://bruceashford.net/2017/blacklivesmatter-3-a-summary-of-blm-ideology/.Black Lives Matter.  http://www.aljazeera.com/news/2016/08/black-lives-matter-social-media-movement-160803042719539.html. Accessed 7 Dec. 2017.†Black Lives Matter.†Ã‚  Wikipedia, 6 Dec. 2017,  https://en.wikipedia.org/w/index.php?title=Black_Lives_Matteroldid=814071748.CNN, Sara Sidner and Mallory Simon. The Rise of Black Lives Matter.  http://www.cnn.com/2015/12/28/us/black-lives-matter-evolution/index.html. Accessed 7 Dec. 2017.FACT CHECK. 28 Aug. 2017,  https://www.snopes.com/black-lives-matter-emergency-crews-hurricane/.Foran, Clare. â€Å"A Year of Black Lives Matter.†Ã‚  The Atlantic, Dec. 2015,  https://www.theatlantic.com/politics/archive/2015/12/black-lives-matter/421839/. Mà ©ndez, Xhercis. â€Å"Which Black Lives Matter?†Ã‚  Radical History Review, vol. 2016, no. 126, 2016, pp. 96–105, doi:10.1215/01636545-3594445.Petersen-Smith, Khury.  Black Lives Matter | International Socialist Review.  /issue/96/black-lives-matter. Accessed 5 Jan. 2018.Platform.  https://policy.m4bl.org/platform/. Accessed 12 Dec. 2017. Police Have Killed 1,129 People in the U.S. This Year.https://mappingpoliceviolence.org/. Accessed 5 Jan. 2018.Russell Mead, Walter. â€Å"The Making of Black Lives Matter: A Brief History of an Idea.†Ã‚  Foreign Affairs, vol. 96, no. 5, Oct. 2017, pp. 180–180,  http://libaccess.senecacollege.ca/login?url=http://search.ebscohost.com/login.aspx?direct=truedb=aphAN=125669855site=ehost-livescope=site.Teresa Dà ¡vila, Marà ­a. â€Å"Discussing Racial Justice in Light of 2016: Black Lives Matter, a Trump Presidency, and the Continued Struggle for Justice.†Ã‚  Journal of Religious Ethics, vol. 45, no. 4, Dec. 2017, pp. 761–92, doi:10.1111/jore.12199. How to cite The Controversy of Black Lives Matter, Papers

Does Neo Of The Matrix Fullfill Joseph free essay sample

Cambell # 8217 ; s Heroic Archetype Essay, Research Paper An engine consists of many parts which work together to transform energy into mechanical force. With the absence of any of those parts, the aggregation is no longer an engine, but an assembly of parts with no intent. Similar to this is the original of the hero. A hero must hold all the parts necessary to finish a journey or else he or she is merely similar every other aggregation of human affair. The supporter of The Matrix, Neo, is in every sense a hero as he possesses all the features of a hero and undertakes an archetypical heroic journey. Harmonizing to Joseph Cambell # 8217 ; s research on the hero, Neo identifies with both the searcher and sage hero original and follows the five stairss which are entailed in all hero journeys. Although Neo does look to suit the hero original, liberating the human race from mental subjugation can non be the occupation of a coward. We will write a custom essay sample on Does Neo Of The Matrix Fullfill Joseph or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page When a character exhibits certain features, an audience will construe these features and place that character as a hero. The first hint to Neo # 8217 ; s epic character is that he is separated from a topographic point of comfort and taken to new milieus. That is the first measure in a hero journey and this happens to Neo when he is taken out of the Matrix. Neo is so initiated and faces unfamiliar fortunes which begin to learn him about himself and his undertaking. It is so when Neo begins to fa ll into the searcher and sage originals as his pursuit and fright are revealed. A seeker’s pursuit is to seek for a better life and that is apparent in Neo’s state of affairs as he dislikes the Matrix and signed on to alter it. The sage’s pursuit is to happen the truth and that quest is clear from the beginning because Neo was foremost led off from the Matrix due to his desire to understand it. Neo besides fears conformance and misrepresentation as a sage would. His fright of conformance was brought to visible radiation by his office supervisor. A hero must face his enemy and Neo does this twice. As a searcher, he will fly from it and that is what he does at the metro station. But as a sage, he transcends his enemy. Finding enlightenment in his deeper ego, Neo was able to command his ain universe and destroyed his enemy. As all hero’s must make, he returns to his original place with the wages that he is able to liberate his people. The character of Neo in The Matrix fulfilled the hero original in every sense as he proceeded through a standard hero journey and possessed the features of a hero. Not merely did Neo carry through his journey, but his actions were indistinguishable to those expected of a hero. Neo # 8217 ; s single actions may do him look to be anything but a hero but the large image tells a different narrative. A hero # 8217 ; s actions will neer be judged as good thing by everyone because there is ever an enemy, but the character is a hero none the less.

Subliminal perception and persuasion

5 Reasons the New SAT Changes Arent Revolutionary

5 Reasons the New SAT Changes Aren't Revolutionary SAT / ACT Prep Online Guides and Tips Today the makers of the SAT test announced some changes coming up in the next few years to focus better on academic skills. The changes were supposed to come in 2015 originally, but due to some bugs, they were delayed until at least 2016. Even today, a precise launch date isn't set yet. The purported changes include reducing emphasis on vocabulary, making the essay optional, changing from a 2400 scale to 1600, and eliminating the guessing penalty, and more. What does this mean for you? Aside:Considering taking the new SAT? Check out our guides to deciding, whether you got ahigh scoreor a low one. The short answer is: less than you think. Here's why: 1. New Scoring System or Old Scoring System? One of the major changes is a shift from 2400 points to 1600 total. Seems like a drastic change? Well, the 1600 system used to be the old system until year 2005. This isn't so much a "new change" insomuch as it's a reversion to the old way of doing things. And eliminating a pure writing section to be reading and math again? We saw that before 2005 too! This isn't a surprise to SAT experts. Many colleges have been reluctant to accept the 2400 system. Most colleges downweight the writing section, and some colleges throw away the writing score altogether. The College Board has learned their lesson that cramming a writing score down the mouths of students and colleges isn't the way to go. A turn to the 1600 system isn't so much a major step forward as much a reversion to older times and older strategies. 2. No Guessing Penalty? That makes no difference! The SAT makers announced today that the guessing penalty will be eliminated from the SAT. It turns out that mathematically this makes no real difference on the way you take the test. This isn't mere speculation, but a proven Statistics 101 fact. The intuition behind the proof is that even now there is no real guessing penalty to begin with: even in the current SAT, there is no expected statistical loss if you make a completely random guess! We'll post more about the proof later, and what you can do to take advantage of the new system, but take our words on it there's no change at all to meaningful guessing tactic. 3. Less Vocabulary? This has been the trend already. Did you hear that the new SAT won't be chock full of rare words (esoteric, inscruable, recondite, etc)? While this gives academics a topic to argue about (how important are difficult words in assessing education), it doesn't mean that much for the student. This has been the way the SAT has been trending for years. In fact, most of the power of vocabulary for the SAT was neutralized when the SAT decided to get rid of analogies in 2005. Before 2005, analogies and vocabulary used to dominate the SAT and form the large majority of skill tested in the reading section. The reduction of vocab on the SAT is more symbolic than practical. Practically speaking, rare words have been on the decline for years. And don't pack up your index cards yet: the SAT will still target vocab to some extent, but more towards words that are used in college courses like "synthesis and "empirical". 4. Optional Essay? Optional if you don't want to impress colleges. Supposedly the new essays are going to be optional. Some people have even called this "dropping the essay from the SAT." This is far from true if the past is any indicator. In reality, the colleges that students apply to will decide what's optional and what's not. What's technically optional optional paper may not be optional in reality. For example, back in 2005, not only were essays optional, the entire writing section was optional! You know what happened? A large number of universities requested the writing section anyway. In the end, all students had to take the "optional" writing section in order to have a shot at these universities. Sure, so go ahead and make the essay optional. But until colleges stop requesting them, new students will still do well by studying for an essay. 5. Real Changes? Look at history. This isn't the first time the makers of the SAT said they were going revolutionize the SAT. Did you know major changes were announced in 2005, 1994, and regularly before that even? Of course, some of the smaller details and strategies will change, and the ecosystem, including us at PrepScholar will adapt to that. To hail this as fundamentally revolutional would be to take these announcements too far though. How do you prepare for this new test? We at PrepScholar Online SAT Prep are always keeping abrest of the latest changes, and in the next few months we'll be talking about some tactical and strategy changes that students will have to make for the SAT. If you're interested subscribe to our blog to the right to keep updated! Other Posts You May Like: Should you take the new SAT or old SAT? A Breakdown of the New SAT - the Complete Guide Want to Improve your SAT score?

Opportunities and Challenges of E-commerce Development in China Essay

Opportunities and Challenges of E-commerce Development in China - Essay Example China has the potential to be the largest market for about everything and e-commerce is no exception. E-commerce is the trend which is opening an opportunity for companies if they capture the quickly changing marketplace. It is not very hard to estimate how big this market can be. In 2010, Chinas e-commerce sales exceeded RMB 460 billion. The expectations are that this figure will triple in the next three years and exceed RMB 1.5 trillion. China might overtake the US in three years as the world’s largest e-commerce marketplace. Its online market would grow to 7% of all retail trade. In 2011 this trade was only 3% which lags the e-commerce activity in the US and Europe. Taobao.com dominates the marketplace in the consumer to consumer (C2C) trade. It holds 80% market share compared to 20% of business to consumer activity. But rapid activity regarding business to consumer (B2C) is underway. And this will have a huge impact on the e-commerce industry in China. Big businesses are realizing the potential of e-commerce and names such as Walmart are gearing up to seize this opportunity. They have already opened the China e-commerce headquarters in Shanghai. To understand how the dynamics of e-commerce work in China a study by Bain & Company surveyed 600 Chinese shoppers. It inquired what motivated them to online buying and what the drawbacks of this trend were. The survey suggested that convenience was the second most important factor in price that motivated them to shop online. The majority also showed their interest in the product variety they got while shopping online. In fact, 19% of the participants stated that convenience was their primary reason for shopping online and 15% stated that variety inspired them to shop online.

Describe how membrane structure is related to the transport of Essay

Describe how membrane structure is related to the transport of materials across a membrane and the role of membrandes in the synthesis of ATP in either respirat - Essay Example The alignment of these phospholipids along the cell membrane is tail to tail, so that these non polar areas form water repellant, hydrophobic regions on the inner and outer surfaces of the membrane, while the polar heads are hydrophilic and allow solvents to pass easily through. Lipids and proteins are not however likely to seep through the bilayer unless they first give up the favorable interactions with hydrogen molecules present in water before they can cross the membrane. The greater the degree to which a protein or lipid molecule is hydrophilic, the larger it is and therefore less likely to cross the cell membrane through simple diffusion. (Gray et al, 2002) The interaction between non polar lipid tails that limits membrane fluidity is due to the action of the Van der Waals forces, which are increased by increasing length of the lipid tails (Gray et al, 2002). It is the hydrophobic effect that results in the rapid self assembly of the lipid bilayers when exposed to water since protein folding takes place through the clustering of the hydrophibic residues in the core of the protein in order to prevent contact with water. However, this structure of the cell membrane is not rigid, because the forces holding the bilayer together are weak, non-covalent interactions which allow for fluidity of the membrane. The outer surface of the cell membrane is rich in glycolipids, while the hydrophobic tails are embedded within the cell. The heads which are exposed outside the cell function in association with the carbohydrates attached to the integral proteins in allowing the cell to determine which materials belong to the organism and which materials are foreign, against which an immune defense must be sparked. Water, carbon dioxide and oxygen are transported across the cell membrane through a simple process known as diffusion or Osmosis, where the

Food Security Coursework Example | Topics and Well Written Essays - 750 words

Food Security - Coursework Example The United States does not have the capacity to provide food security to the rest of the world despite having a pool of high expertise, science and technology. Barriers to food security include poor distribution networks, border barriers and poor infrastructure. Issues of food safety coupled with diverse national and international standards across the world also play a key role in inhibiting achievement of food security. It is therefore important to note that globalization may either lead to persisting food insecurity if international organizations such as World Trade Organization fail to intervene on global barriers to food security. According to Department of State, the 2008 crisis does not only illustrate the kind of disruptions the US can experience but also demonstrate the extent of unpreparedness.  The United States does not have the capacity to provide food security to the rest of the world despite having a pool of high expertise, science and technology. Barriers to food sec urity include poor distribution networks, border barriers and poor infrastructure. Issues of food safety coupled with diverse national and international standards across the world also play a key role in inhibiting achievement of food security.   The 2008 crisis does not only illustrate the kind of disruptions the US can experience but also demonstrate the extent of unpreparedness.   Food security for all nations of the world requires long term intervention that focuses on the root causes and the underlying issues of food insecurity.

Consumer Behavioral Study On Buying Coffee Marketing Essay

Consumer Behavioral Study On Buying Coffee Marketing Essay Investigate and find out why do people willing to pay more for Coffee Bean coffee than a normal coffee shop. Discuss the importance of finding out of consumer behavior. One of international food company, Coffee Bean, offers more expensive coffee, if compared with other coffee shop, the price of Starbucks coffee is more than triple but there are many people who like to go and drink a cup of coffee at Coffee Bean. There are several factors found that why people keep going to Coffee Bean. Body Product, its Quality One of factors that people like to spend more for Coffee Bean is due to its qualified products. One of Coffee Bean products is as we know as coffee which is considered as the main product of Coffee Bean. Coffee Bean has put a lot of effort to search the finest coffee bean in the world. Even people are in sleep, there is someone from Coffee Bean who is trying a cup of coffee. Furthermore, Coffee Bean has a variety of coffee flavours. Coffee Bean tries to satisfy its customers with their different types of favourite coffee with its well-trained baristas. Usually, each coffee drinker has its own favourite which is the most tasteful and aroma to suit customers. Coffee Bean suits them with 22 varieties of coffee and 20 kinds of tea. Coffee and tea can be categorized mainly Bottled drinks, Brewed coffee, Chocolate and Espresso beverage, yogurt. Not only that, Coffee Bean serves like bakery, hot breakfast, salad and fruit snack plates etc. In the comparison between Coffee Bean and a normal coffee shop, at the normal coffee shop does not entertain customers with a variety of flavours even it is hard to find good roasted coffee. Coffee Bean is famous because of its products to increase satisfaction of each customers taste that makes people willing to pay more for the drinks or delicious food in Coffee Bean. Place Another factor of the popularity is the location which Coffee Bean chooses. Coffee Bean can be found internationally. It can increase a consumption and identity of Coffee Bean from customers. Coffee Bean has a very strong team to select the place in which there can be high demand for an area that people can drink coffee and make their discussion with friends, colleagues, workers and many more. Starbucks eases the access to people to find and walk into its stores worldwide. Figure .1.2.1 Coffee Bean in Kinta CityOn the other hand, Coffee Bean usually opens stores in busy town and tourist spots such as shopping malls and hotels which are luxury and ambiance places all over the world, and the taste of coffee in Coffee Bean is different from the coffee that are available in the normal shop. These factors increase effectiveness of distribution channel of Coffee Bean. Coffee Bean, its best chosen locations that comfort people to find finest coffee taste around the world. They can release their stress by drinking a cup of coffee in coffee bean because of the quiet condition. The place of coffee bean is relaxing and comfortable and this makes everyone to choose coffee bean when they want to discuss or have an informal meeting. When we are at a normal coffee shop, we cant concentrate on our job or for students; they cant even concentrate when they are doing their assignment because of the noisy environment. So this is why consumers prefer and are willing to pay for a higher price for Coffee Bean. Coffee_Bean.jpg 12coffeebean.jpgcoffee_bean_master_franchisee_city_food somke.jpg Figure 1.1.2.2 Smoking area and non smoking of coffee Bean In addition, in Coffee Bean, there are two areas which are non-smoking area and smoking area. So non- smokers can enjoy their time with their favourite coffee drink without any cigarette smell or smoke. Staff Staff in Coffee Bean is well train and they are polite. They are train manners by the supervisor of Coffee bean so they are very friendly, kind and always smile. Also they are required to know how to speak English because Coffee Bean has foreign customers so they need to know the international language. Figure 1.1.3.1 Staff in coffee Bean  [1]  Staff s is required to wear uniform and this will give consumer a very good impression. In normal coffee shop, the waiters or the staffs sometimes wear their own clothes during working times and that will look untidy and uncomfortable for consumers. Figure 1.1.3.1 show the staff wear black cap and brown or black uniform. For example in normal coffee shop, when consumers order drinks, they difficult to order because they do not know who waiters or waitresses are. uniform.jpg Brand Recognition Another factor is strong brand recognition of Coffee Bean. Coffee Bean is well known by its people and its market especially its competitors. Coffee Bean is very strongly recognized company in the world as a coffee retailer. In this generation, most of people may hear the name of Coffee Bean and half of people may taste its finest coffee too. Once people hear Coffee Bean they can think of its finest coffee, luxury designed environment and its staff attitude toward customers. Those facts can improve the recognition of the company and they will keep falling customers into deeply tasteful coffee of Coffee Bean. Lifestyle Consumers are willing pay more for Coffee Bean coffee than a normal coffee is the lifestyle. In the modernization, people are open-minded for everything. People like to enjoy their lives without limit. Especially, middle of 20 to 30 aged people like to go nicer and cooler place to enjoy their moment. They like to use and wear expensive things then why not they like to drink expensive drinks that they can get highest satisfaction. Promotion People like to spend for Coffee Bean coffee is the promotion. Coffee Bean has seasonal promotions to attract more customers to walk in. For example, Coffee Bean makes events for any special days which people celebrate internationally such as Christmas, valentine, calendar new year and Chinese new year etc. During these special days, Coffee Bean sells event products which reflect features of each day. 161977_189809951041140_2369883_n.jpgThe-Coffee-Bean-Tea-Leaf-Christmas-Cake-Promotion.jpg Figure 1.1.6.1 Promotion of Christmas and Valentines Day Psychology Coffee Bean is luxury and comfortable concept place. Inside Coffee Bean is quiet and comfortable and there is music playing. It encourages people to talk with their friends and family in quiet with nice melody that relax people from stress. Nowadays, it is a war outside without a gun and bullets. It means there is a lack of place that people can find comfort. Coffee Bean provides that place to people who really need the peace that influence people emotionally. It also can be happened that some people drink coffee at Coffee Bean because of it is not for everyone can effort. On the other hand, there are some people that want to drink expensive coffee because they want to be seen cool. Importance of Consumer behaviour Consumer behavior can be defined as the metal and emotional processes and the physical activities that people engage in when select, purchase, use, and dispose of products or services to satisfy particular needs and desires. As customers, they benefit from insights unto their own consumption-related decision such as what they buy, why they buy, how they buy and the promotional influences that persuade them to buy. The study of consumer behavior enables them to become better, that is, wiser, consumers. As marketers, it is important for them to recognize why and how individuals make customers consumption decisions, so that marketers can make better strategic marketing decisions. So marketers must understand consumer behavior to develop successful strategies and identify target market segments. Moreover, awareness of emerging trends in the consumer marketplace is essential for quick recognition of and response to problems and opportunities with sound marketing strategies. Conclusion In conclusion, Coffee Bean is very famous to people who like to drink a cup of coffee. Even though the price of Coffee Bean coffee is more expensive than a normal coffee shop people are willing to pay more for Coffee Bean coffee. There are several factors that may influence people purchasing decision for Coffee Bean. Firstly, one of factors is the product. Coffee Bean provides a variety of coffee and tea and snacks or food. There are more choices that allowed customers to choose highest satisfaction of the product. Secondly, the place of Starbucks is another factor that influences consumer decision. Coffee Bean has opened more than 16,000 stores in more than 50 countries that make people to experience much easier. The next is staff; staffs of Coffee Bean are very kind and friendly so customer can relax and feel comfortable. There are some more factors considered such as brand recognition, lifestyle, promotion, and psychology that can influence consumers purchasing decision. Consumer behavior is very important to any organization to be aware and keep focusing on. Once the organization become outdated about consumer patterns that means the organization is out of the market or will be sooner. The organization should carry studies about consumer behaviours and factors that influence consumers final decision. Question 4 Friends and society opinions on the products and services are always one of the factors influencing individual buying behavior, comment on how facebook enhance the impacts from friends and society towards buying behavior. 2.1 What is Facebook? Facebook is the largest social network in the world. Its first name is Facemash which was named to start the service when Mark Zuckerberg was Grade 2 Harvard University in on 28 October 2003. Then on 4 February 2004 under the name of The Facebook begin to services thefacebook.com. In June 2004 the company moved to California Palo Alto. After that PayPal co-founder Peter Thiel was the first investment and in 2005 purchased domain name facebook.com for $ 200,000 and then took off in the name The name of right now, facebook as continue to use. Initially, facebook is available only to Harvard University students. But In Stanford, Columbia, Yale has been expanded to the area, Ivy League Universities, New York University, Massachusetts Institute of Technology, USA and Canada, most universities have been expanding into areas. In September 2005, high school student also has expanded and the end of 2005 more than 2,000 college and high school have a network of more than 25,000 was produced. Thereafter until the member area for some companies also can make and finally in September 2006 more than 13 years old, anyone with an e-mail address was able to join. In addition, in 2006, from Yahoo offer undertaking $ 1,000,000,000 but reject the offer received and it is received investment $ 250,000,000 from venture capital investment. 2.2 How Facebook enhance impact the Buying Behavior Buying behavior is the decision processes and acts of people involved in buying and using products so need to understand what factors influence when consumer purchase and analyze buying behavior. There are many factors which actually influence or affect consumer buying behavior, such as comments or ideas or even suggestions from friends, advertisements and etc. Nowadays, one of the biggest influence is by Facebook, one of the social network which came to be part of everyones routine since everyone logs into Facebook at least once a day. This is the main reason why Facebook influences a lot on someones buying behavior. Moreover, Facebook isnt just a social network, it has got advertisements with promotions or some companies create a page for themselves and promote their pages on Facebook. 2.2.1 Status Figure .2.1.1 Example of status and commentsIn Facebook, friends can give comments about the specific product that someone wants to buy. For example, if user wants to buy laptop so put update her status as Sony vs Toshiba which one is better? Friends will start putting comments to her status, probably their opinions and pros and cons of products of Sony and Toshiba or even suggesting another similar product such as Samsung or Fujitsu. In other words, user will get to share own ideas with friends on Facebook, which will actually make the user skim through on the advantage and disadvantages of the product user is willing or planning to buy. And also, some of users friends who might have used the product or have the product could upload the photos of it which means user can have an idea of its specifications and its closer view before purchasing. As mentioned earlier, there are advertisements shown in the page of Facebook which means, user might be aware of any promotions or discounts o f the specific product on Facebook which would be better for the user.untitled.bmp 2.2.2 Group Some people using Facebook, when people are interested in something for example K-POP fans, people will make a page for themselves and other people want to be one of the members in the group, all people need to do is to click on the like button. And group members will be updating each other on the specific coming event or post and even link videos about it. So, for example if a person wanted to buy a Samsung camera, and there is a group in Facebook under Samsung camera, so, that person can actually join the group and get to know more about it or even compare with other models or other products. Figure .2.2.1 group of Samsung Camera samsung.bmp This picture is one of group of Samsung Camera page. It shows that now what is new product and give some information. A group of Facebook will share the value system based on the experience from who already used product. This is a greater opinion to impact the buying behavior, as same group member, other membership will trusty to the member and stop or buying the product. Furthermore, almost every group or society also has a closer communication; the opinion of the society will direct enhance impact the buying behavior. EX1.bmp Figure 2.2.2.2 This Figure 2.2.2.2 shows that many group members comment their opinion about Samsung camera EX1 whether it is good or not 2.2.3 Video Figure 2.2.3.1 Another factor that Facebook nowadays influences a lot on consumer buying behavior is because of the videos shared in Facebook. For videos, people can actually link any types of video from YouTube or wherever to their Facebook profile, which means people can share the videos as people wish because people might feel the product of the video is interesting, so people hope can share out for other people in Facebook. Some of the companies make their companies account and add their advertising video. It will help to customer understand easily what they doing business and what product they selling. In addition, some customer also add the video when they use the products so it can know how to use the product and more consider whether it will be suitable for themselves. For example Figure 2.2.3.1 shows an advertisement of Ipad 2 on the Facebook. 2.2.4 Advertisement Figure .2.4.1 Advertisement in FacebookAdvertisement is known as a paid for communication. It is used to develop attitudes, create awareness, and transmit information in order to gain a response from the targeted market.ad.bmp Figure 2.2.4.1 is one of the advertisements advertised in Facebook and usually displays 4 or 5 advertisements. When log in the Facebook, users can see many companies or shops had set their advertisements on the right hand side of the page. This is because a lot of people use Facebook around the world, so, advertisements in Facebook are more trustworthy. Advertisements can attract users and able to attract users are interested in the advertisements, and users will eventually click and read it. After that if users feel that it is good or suitable and meet their needs or wants, they might decide to buy it. In addition, some advertisements can be seen many times when users are logged in Facebook. It is also able to attract users in a way that, if the users of Facebook see advertisement many times, they want to know what the advertisement is about. As a result, some of the users will be interested in it and subsequently, will be considering of purchase. Finally, Facebook is one of the largest social networks in the world which has enhanced impact to the users buying behavior such as status, group, video and advertisements. .Nowadays, Facebook is not only for making friends or communicating with friends. When users want to buy something, Facebook can help them to buy better product or service. If a user writes status what he or she wants to buy, his or her friends can comment about the product whether it is good or not. Also he or she can find the groups or videos and get more information about the product. Lastly, advertisements also help the process of purchasing in a sense that the users may be able to click on the advertisements on the right side of the page if they are interested.

Present Provoking Past :: Free Essay Writer

Present Provoking Past â€Å"Analyze a characters’ response to the past as a source of meaning in a work† â€Å" . . . the past, no matter what it was like, never becomes a matter of indifference to the present.† In One Day in the Life of Ivan Denisovich, Alexander Solzhenitsyn portrays one normal day in the life of Shukhov (Ivan Denisovich), a Russian peasant unfairly confined in one of Stalin’s forced labor camps for political prisoners. Throughout the novel, Solzhenitsyn depicts how Shukhov has adapted to his surroundings and has been able to survive with a dignity other prisoners have lost throughout their confinement. It is exactly the way Shukhov has been able to live and survive in prison, that reveals how he has responded to his past, even when all the author reveals to the reader is the characters’ immediate present. Shukhov responded to his past by clinging to aspects of his â€Å"previous life† which allowed him to maintain his humanity, and thus survive, and by letting go of those which didn’t. Many critics argue that imprisonment robs individuals of their humanity for, in order to survive, they grow accustomed to their harsh life and loose basic human responses. Solzhenitsyn however, proves through Shukhov, that even within confinement, where prisoners are robbed of every kind of possession, freedom and humanity can still exist within. What aspects then, does Shukhov hold on to, and which ones does he let go of in order to survive? First of all, it is very important to clarify that survival in the novel is very relative. Surviving for some of the prisoners is merely enduring life, no matter the cost, such as for Fetiukov who stoops even to collecting other prisoners’ left over cigarette buds, even though he puts himself in danger of catching a syphilitic lip. For Shukhov however, surviving goes far beyond making it alive. Shukhov shares Kuziomin’s same belief that those who lick other men's leftovers, those who count on the doctors to pull them through, and those who squeal on their buddies don’t make it, for it’s at the expense of not just other people’s blood, but at the expense of loss of self-value, of self-worth. Thus, for Shukhov, surviving is going on living, while maintaining his freedom and humanity, even in an environment which has total control over him. As consequence, the most important thing that Shukhov holds on to is his intrinsic code of values and morals.

Importance of Break-even analysis Essay

It is an undisputable fact that every business’ objective is to survive and make profit as compensation of being in existence. Frankly, predicting a precise amount of sales or profits is nearly impossible. No business aims at making losses whatsoever. Given this, a person starting a new business often asks, ‘’ At what level of sales will my company make a profit? ’’ This question clearly predicts the uncertainty of businesses on the level of sales at which profits will be realized. Certainly, break-even analysis is the first resort. Therefore, it becomes absolutely necessary for a business to prioritize break-even analysis when making profit oriented decisions. This leads us to the reasons why businesses should pay attention to break-even analysis. Break-even point can be defined as a point where total costs (expenses) and total sales (revenue) are equal. Specifically, break-even analysis if the use of break-even point to make cost, volume, and profit analysis. Break-even analysis offers businesses lots of benefits that are worth considering. There are a number of benefits that hitherto a business would not enjoy. The break-even analysis gives an insight about the sales level a business needs in order to make profit. It gives the business a forecast on its cost, volume, and profit behavior. Managers can determine the effect of changes in cost and volume of sales on the profit. By so doing, it guides the decision making process of a business. The break-even analysis is also helpful to managers as the provided information such as margin of safety in units and sales (MOS), and degree of leverage (DOL) can be used in making important decisions in business, for example projecting the sales level needed to obtain certain targeted profit. With the help the break-even analysis, businesses can ascertain the number of units of a product to sell to generate a targeted profit. Similarly, break-even analysis is a tool used to determine the lowest quantity of sales at which neither profit nor loss will be obtained. In a situation where the demand of a company’s product begins to fall, it would be able to determine the number of employees to maintain so as reduce production cost as well as prevent surplus. Obviously, companies incur addition storage cost to store unsold goods; hence, the break-even analysis will help managers not incur such cost. Companies can use the break-even analysis to study the relationship between selling price, fixed costs, variable costs, and sales volume and its effect on the contribution margin. Therefore, business can tell which of the element to alter in order to make a certain profit. Moreover, such analysis facilitates the managers with a quantity which can be used to evaluate the future demand. If, in case, the break-even point lies above the estimated demand, reflecting a loss on the product, the manager can use this information for taking various decisions. He might choose to discontinue the product, or improve the advertising strategies, or even re-price the product to increase demand. Furthermore, managers can use break-even analysis to determine whether an investment will generate profit or not. As a result, managers will not venture into investments that will lead to losses. Another important usage of the break-even point is that it is helpful in recognizing the relevance of fixed and variable cost. The fixed cost is less with a more flexible personnel and equipment thereby resulting in a lower break-even point. The importance of break-even point, therefore, cannot be overstated for a sound business and decision making. Additionally, the break-even analysis gives managers the understanding of how profitable different product or services might be. Managers can determine how much each product contributes to the overall profit and how relevant the product is to the firm. The most important aspect of the break even-analysis gives managers the knowledge about how much product must be sold to cover costs. Therefore, it helps managers to work hard towards selling a level of product that will cover its costs so as to make profit. In conclusion, businesses that pay attention to break-even analysis tend to understand their costs, hence are very likely to take effective decisions regarding pricing, investment, and expenditure among other things.

Free Essays on Conflict Management In The Workplace

Summary: 5 pages. 4 sources. MLA format. Conflict management in the workplace is a hot topic in the business environment today. This paper explores various techniques that can be utilized to manage conflict in the workplace. Conflict Management in the Workplace Introduction Conflict management in the workplace is an issue that every leader, manager, or employee has to deal with at one time or another. The basics of conflict management include improving communication, teamwork, and a systematic approach to solving the disagreement. This paper explores various techniques that can be utilized to manage conflict in the workplace. Workplace Conflict Management Conflict is defined by Hellriegel, Slocum and Woodman as â€Å"the process in which one party perceives that its interests are being opposed or negatively affected by another party† (p. 362). Sometimes conflict that be a positive force within an organization, while at other times it is a negative force. An example of conflict as a positive force is that the creation and resolution of conflict may lead the company to constructive problem solving. It may also lead people to search for ways of changing how they do things. The conflict resolution process can ultimately be a stimulus for positive change within an organization (Hellriegel, Slocum and Woodman, p. 364). However, conflict may also have serious negative effects on an organization. For example, conflict may divert efforts from goal attainment or it may deplete resources (particularly time and money) (Hellriegel, Slocum and Woodman, p. 364). Conflict also may negatively affect the psychological well-being of employees and cause stress (Hellriegel, Slocum and Woodman, p. 364). Indeed, conflicting workplace ideas may lead to anger, tension, and anxiety. Deep and lasting conflicts that continue without conflict management may even lead to violence between employees and others (Hellriegel, Slocum and Woodman,... Free Essays on Conflict Management In The Workplace Free Essays on Conflict Management In The Workplace Summary: 5 pages. 4 sources. MLA format. Conflict management in the workplace is a hot topic in the business environment today. This paper explores various techniques that can be utilized to manage conflict in the workplace. Conflict Management in the Workplace Introduction Conflict management in the workplace is an issue that every leader, manager, or employee has to deal with at one time or another. The basics of conflict management include improving communication, teamwork, and a systematic approach to solving the disagreement. This paper explores various techniques that can be utilized to manage conflict in the workplace. Workplace Conflict Management Conflict is defined by Hellriegel, Slocum and Woodman as â€Å"the process in which one party perceives that its interests are being opposed or negatively affected by another party† (p. 362). Sometimes conflict that be a positive force within an organization, while at other times it is a negative force. An example of conflict as a positive force is that the creation and resolution of conflict may lead the company to constructive problem solving. It may also lead people to search for ways of changing how they do things. The conflict resolution process can ultimately be a stimulus for positive change within an organization (Hellriegel, Slocum and Woodman, p. 364). However, conflict may also have serious negative effects on an organization. For example, conflict may divert efforts from goal attainment or it may deplete resources (particularly time and money) (Hellriegel, Slocum and Woodman, p. 364). Conflict also may negatively affect the psychological well-being of employees and cause stress (Hellriegel, Slocum and Woodman, p. 364). Indeed, conflicting workplace ideas may lead to anger, tension, and anxiety. Deep and lasting conflicts that continue without conflict management may even lead to violence between employees and others (Hellriegel, Slocum and Woodman,...

Free Essays on Jimi Hendrix Vs, Kurt Cobain

Jimi Hendrix Vs, Kurt Cobain History has always been marked by great music. Every generation has it’s own unique genre; from classical to swing, people have always found a song or a melody that seemed as if it was written just for them. However, truly great music is created by a certain type of genius. It takes more than the average guy to forge a classic like â€Å"Stairway to Heaven.† Two men in the late twentieth century were such masterminds: Jimi Hendrix and Kurt Cobain. While both will live forever in musical infamy, they will remain legends for different reasons. One of the most important factors in becoming a rock legend is bringing about a revolution, opening people to something bold and new. Kurt Cobain, along with his band, Nirvana, changed rock music forever. In a time when music was becoming mass-produced, emotionless muck, Cobain brought about something that was repulsively beautiful and alive. He introduced grunge rock to the world: music filled with screaming distortion, tremendous angst, and overwhelming passion rarely seen from the generation that invented the term â€Å"whatever.† Nevertheless, let us not forget a similar revolution, which took place over a decade earlier. In an era when hippies wandered free and drugs were just â€Å"mind expanding,† another such musical phenomenon occurred. A young black man caught the ear of millions with his awe-inspiring guitar tunes. This man was Jimi Hendrix. Unlike Cobain, Hendrix wrote music to support and inspire his followers, as opposed to creating a method of shock treatment through music. Hendrix created brilliant melodies along with lyrics that touched the hearts of all who would listen. One habit that both musicians shared was the ability to excite and invigorate listeners, especially live audiences. Cobain had the ability to make thousands of slackers stand up and scream for more. Throughout his many tours, Cobain always arrived to a packed venue filled with fans, ma... Free Essays on Jimi Hendrix Vs, Kurt Cobain Free Essays on Jimi Hendrix Vs, Kurt Cobain Jimi Hendrix Vs, Kurt Cobain History has always been marked by great music. Every generation has it’s own unique genre; from classical to swing, people have always found a song or a melody that seemed as if it was written just for them. However, truly great music is created by a certain type of genius. It takes more than the average guy to forge a classic like â€Å"Stairway to Heaven.† Two men in the late twentieth century were such masterminds: Jimi Hendrix and Kurt Cobain. While both will live forever in musical infamy, they will remain legends for different reasons. One of the most important factors in becoming a rock legend is bringing about a revolution, opening people to something bold and new. Kurt Cobain, along with his band, Nirvana, changed rock music forever. In a time when music was becoming mass-produced, emotionless muck, Cobain brought about something that was repulsively beautiful and alive. He introduced grunge rock to the world: music filled with screaming distortion, tremendous angst, and overwhelming passion rarely seen from the generation that invented the term â€Å"whatever.† Nevertheless, let us not forget a similar revolution, which took place over a decade earlier. In an era when hippies wandered free and drugs were just â€Å"mind expanding,† another such musical phenomenon occurred. A young black man caught the ear of millions with his awe-inspiring guitar tunes. This man was Jimi Hendrix. Unlike Cobain, Hendrix wrote music to support and inspire his followers, as opposed to creating a method of shock treatment through music. Hendrix created brilliant melodies along with lyrics that touched the hearts of all who would listen. One habit that both musicians shared was the ability to excite and invigorate listeners, especially live audiences. Cobain had the ability to make thousands of slackers stand up and scream for more. Throughout his many tours, Cobain always arrived to a packed venue filled with fans, ma...

Toxicology, Drugs and Poisons Essay Example | Topics and Well Written Essays - 750 words - 5

Toxicology, Drugs and Poisons - Essay Example The acidic poisons and drugs can easily be isolated from the acidic solution while the basic drugs and poisons are easily extracted from the basic solution. After completing the procedure, the poison and drugs are isolated, the isolated samples are then screened and confirmed thereafter. Other techniques that are discussed in the paper include color testing, immunoassay testing, gas chromatography and microcrystalline testing. Determination of quality of drugs or poison is done through extraction and isolation of the substance from body fluids and tissues. The techniques used in identification include color testing, immunoassay testing, gas chromatography and microcrystalline testing. Color testing is a technique simply used in a determination of an individual content of drug or poison in the system. The technique mainly identifies the type of drug or poisons present in the person and do not indicate the quantity of the suspected substance in the individual’s body. Toxicologist always carries out confirmation test after color testing for surety (Flanagan, Perrett and Whelpton, 2005). When the test is done in a urine sample, a small strip used for the test is dipped in the urine sample and is expected to change to a specific color. In other tests, chemical substances are combined with a sample that is already isolated. Changes in color due to the reactions indicate the presence of certain drugs or p oison in the sample (Haley and Berndt, 2007). Microcrystalline testing involves combining a given amount of isolated sample with a specifically known chemical reagent. In the presence of a drug or poison, a chemical reaction will occur producing a precipitate. The precipitate structure and color varies with respect to the drug or poison that is tested. The precipitate that is formed can then be screened or viewed under a microscope for identity confirmation (Bell, 2009).

Building Construction for the fire service Essay

Building Construction for the fire service - Essay Example Historically, the summer of 1871 in Chicago brought intense and uncontrollable fire, which burnt massive housing. Around 17,500 buildings burnt and 90,000 people were affected by the fire of 24 hour or more. Approximately 300 people died due to it and the dry summer with strong winds spread burning debris in all directions, which affected 73 miles of area. The building structure of that era entailed single layer construction style. The outside layer was responsible for fire protection, but the inside contained all wooden structure. The main water supply and storage was also a wooden structured pine building. When the fire grew intense due to unavailability of proper extinguishing mechanism, (Schons, 2011) the fire blazed for unlimited duration until the rain cooled it off after 24 hours. The pine wood water storage building was the only water supply used by the fire department in those days and that water was also wasted due to collapse of that building. After this horrific fire incident and massive destruction the authorities bend down to look into the basic design of building structures in such catastrophic situations. Therefore, in 1896 NFPA National Fire Protection Association devised a new way to protect massive fire in buildings; hence, introduced automatic sprinkler system. Initially, this system lacked proper standardization and many apprehensions from the researchers made it a little slow to become implementable. However, in 1901, majority of the Factory Mutual buildings were instilled with automatic sprinkler as an innovative fire protection tool, and this technical change in the construction of building became the prime way to prevent property from sudden fire. Another deadly fire incident in Iroquois theater (1903) is considered the lethal fire event in the history of US that burnt 602 people. The wooden structure of the theatre, no exit passage, and ornamental fabric (curtain and

Human Behaviour in Organisations Essay Example | Topics and Well Written Essays - 1000 words

Human Behaviour in Organisations - Essay Example Transactional leaders differ from transformational leaders, in the fact that they do not seek to transform the future. The aim of the transactional leader is to preserve the extant state of affairs (Odumeru & Ogbonna, 2013, p. 358). Transactional leadership is of great value in addressing crisis and emergency situations, and in completing projects in some specific manner. The Trait Theory of Leadership presumes the presence of inherited traits among people, and that some of these traits are especially suited to leadership. Effective leaders possess specific characteristics, and great leaders have certain common personality traits. This theory attempts to identify the physical, mental, and personality features associated with successful leadership (Chartered Technofunctional Institute, 2013). For several years, the trait theory had been ignored and it had been assumed that situational and learned factors were of greater significance than inherited traits among individuals accomplishing leadership roles. Subsequently, behavioral genetics has emphasized that genes and inherited traits have a significant effect on the individual (Warrilow, 2014). It is this writer’s opinion that leaders are made and not born. Upon assuming that leaders are born, most of their children would have become great leaders. This does not transpire. Hence, leaders are crafted by the situation and not hereditary. It has been concluded by researchers that successful leadership emerges from the interaction between the situation and the characteristics of the leader. This interaction has been regarded as the key to understanding leadership, in conjunction with the crucial situational and trait variables (Fleenor, 2006, p. 832). In the contemporary business world, it is essential for a company to possess the creative ability.  

Comparing and contrasting Achilles and other warriors Essay Example for Free

Comparing and contrasting Achilles and other warriors Essay Comparing and contrasting Achilles and other warriors Introduction   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Achilles is one of the main characters in Homer’s Iliad. Iliad is a legendary epic covering the formative years of Roman and Greek mythology. Iliad pursue glory, heroism, and love within the authority and influence of supernatural powers. Achilles possessed heroic strength and also had close contact with the gods. Achilles had all the qualities of a grand warrior and he proved to be the most dominant man among the Achaean army. However his deeply rooted character barred his capacity to act with integrity and nobility. The rationale of this paper is to analyze the character of Achilles and examine how he was similar of differed from other heroic warriors.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Achilles could not manage his pride or the fury that came about when his pride was injured. These attributes greatly affected Achilles life since he abandoned his fellow warriors because he had been insulted before Agamemnon, his commander. Achilles even wished his fellow warriors to be killed by Trojan warriors. He was driven by thirst for glory and was willing to sacrifice anything for his reputation. Achilles had extreme temper; for example, though the demise of Patroclus provoked him to reconcile with Agamemnon, this did not alleviate his fury but he directed his anger to Hector (Homer, 1990, p. 32). Achilles forfeited twelve Trojan men at the funeral of Patroclus, he also killed his opponents mercilessly and shamefully vandalized the corpse of Hector. These events reveal Achilles great anger because he was mourning the death of Patroclus. Achilles pride, bloodlust and wrath affected him adversely (Virgil, 2006, p. 42).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Achilles is recognized as the greatest warrior in Achaian army and no other warrior could match him as a fighter. Achilles has a great sense of social order because he decided to act during the plague that was consuming the soldiers at Achaian camp. Agamemnon, Achille’s kind did not act so Achilles decided to find out the cause of the plague by calling for a congregation of the entire army. Achilles is argumentative and petulant because he argues that though Agamemnon gets the best prizes from war, he never worked for them. In the course of argument, Achilles almost killed Agamemnon, though he was saved from carrying out the heinous act by goddess Athena. Achilles believed that the quarrel between him and the king was righteous and same as the war against Trojan army. Achilles major characteristic was excessive pride because he remained angry even after Agamemnon promise to return Briseis alongside other gifts (Vigil, 2006, p. 47).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Gilgamesh is a warrior who fears death throughout George XIII epic. Achilles on the other hand is also very keen with his metaphoric wickedness that can only take place after the death of his earthly life. Gilgamesh and Achilles have a lot of similarities, which include dynamic attitude on death and life centered. They have similar attitudes especially when their heroic comrades died. The death of Patroclus touched Achilles very much whereas the death of Enkidu also caused much distress to Gilgamesh. Achilles and Gilgamesh are two semi-divine heroes who have various matching characteristics and life-events, and they focused a lot with their mortal lives, but not relatively in the same approach. Achilles and Gilgamesh share fundamental similarities in their mortal lives. Each of them is a child of a goddess and a mortal man who happens to be a king. Achilles is a son of Thetis and has an exceptional rapport which enables him to speak with t he gods with the help of Thetis (Homer, 1990, p 27). Gilgamesh on the other hand is regarded as one third human and two third god, which makes him to stand out as an exceptional character that exists in relationships with both the mortal world and divine world. Iliad relates the preeminence of Achilles and Gilgamesh in battle where they reveal themselves as headstrong warriors.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Neither Achilles nor Gilgamesh is concerned with romantic and family relationships. The major relationship these epic heroes have is with their mothers, where they seek protection and guidance. Through this rapport, they are able to gain development and wisdom. Achilles can also be compared to other heroes such as Aenes since their lives is determined by supernatural powers. In the book Iliad and Aeneid, Achilles and Aenes are characters who reveal their chivalry and bravely. In the books, Aenes and Achilles are chosen by gods and favored in various periods of their lives (Homer, 1990, p.26). These characters have predestined death and fate, they are sons of gods and they have specific accomplishment and mission in their lives. The major difference between Achilles and Gilgamesh is on anger management. Even after the death of his friend Enkidu, Gilgamesh remains cool and does not translate his fury to anyone, but Achilles anger could not b e controlled after the death of Patroclus. Gilgamesh mourns the death of his friend by ritually pulling his clothes and hair, but Achilles mourns the death of Patroclaus by killing several Trojan warriors.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   An in depth analysis of the epics of the era reveal contrasting features of the heroes. The circumstance, the physical features and situation might be similar, but the discrepancy is mainly due to mental and intellect framework of the heroes. Aenes fought major battles just like Achilles, but their fate was different. Achilles was predestined to die in the battle, while Aenes was predestined to be an architect of a huge town in the planet. Achilles was more of a cruel enemy and fierce warrior and his task was to wrestle and triumph over bloody wars. On the other hand, Aenes was more civilized and constructive in comparison to arrogant Achilles. Achilles is violent, stubborn, ruthless and hostile and had a capacity to kill Trojan warriors ruthlessly in the battlefield. Achilles battle and attack intended huge massacre. On contrary, Aenes is more placid and sober. Aenes as a warrior had adorable features of restraint, chastity, discipline an d love. He was a true leader who never left his comrades. Aenes led the warriors to pursue new home and new culture. He was a fighter, but not even once did he display emotions and power in arbitrary and cruel manner (Vigil, 2006, p. 74).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In conclusion, Achilles was a great warrior, but he was a merciless fighter who killed many Trojan warriors. Achilles shared similar features with other heroes in the epics. These heroes fate was usually predestined and they were mostly sons of gods. They sought advice from their mothers which helped them to develop and gain wisdom. However, an in depth analysis on the character of these heroes depict that there are some differences. Achilles was a violent warrior as compared to most heroes who were able to manage their fury. In addition, Achilles, Aenes and Gilgamesh were heroes of their times. References Homer, Robert Fagles, and Bernard Knox. The Iliad. New York: Viking,  1990. Print. Hope Nash Wolff. Gilgamesh, Enkidu, and the Heroic Life. Journal of the American Oriental Society 89.2  (1969): 392-398. Web. Virgil, R. Fagles, B. Knox, and S. Callow. The Aeneid. New York: Penguin Audio,  2006. Print. Source document

Basel II Accord Effects on Qatar Banking

Basel II Accord Effects on Qatar Banking International banking is increasingly vital for every country in order to create an image for itself in the international finance market Chapter 1: Introduction International banking is increasingly vital for every country in order to create an image for itself in the international finance market. Alongside, the increase in globalisation and the upsurge in outsourcing by multinational companies in the west have created a lot of opportunities for growth in the Middle East and Far Eastern countries. This apparently requires a strong internationally stable financial organization to conduct transactions across the globe without any errors (i.e.) 100% accuracy.   This includes reliability and stability of the bank under extreme situations (like emergency for example), which is highly important to conduct international transactions. Also the potential to meet financial demands during crisis situations is a vital criterion that is considered while presenting themselves in the international market. In addition to the globalisation, outsourcing and export/import growth, there is also a tremendous growth in cross-border finance among the countries in the Middle East and Far East. Along with all these factors the developing nations in the Middle East face a mandatory requirement of a sable international banking system in order to attract foreign investment. The increase in cross border finance activity among the middle eastern countries is also a critical element to be considered for establishing a stable international bank within the nation in order to represent the country in the international finance market. The countries in the Middle East are actively participating in cross-border finance since the dawn of the 21st century. Being a producer of Oil which is a vital ingredient at all levels of life right from day-to-day driving up to power generation for the nation in order to run industries and serve domestic purposes, makes it critical for the nations in the Middle East to have a strong international banking system to conduct transactions across the globe accurately and effectively. Qatar is a growing nation in the Middle East with primary operations in oil and gas export as well increasing its potential in areas of development in technology focusing on IT and communication. The nation has efficient international operations and con ducts financial transactions between western nations as well as with eastern nations. Since the take over of the government by H.H. Sheikh Hamad Bin Khalifa in 1995, the country is making tremendous progress in deploying its hydrocarbon resources in order to penetrate in the international market and present itself as a financially stable nation in the international market. Further to the increase in the international operations by the countries in the Middle East and the Far East, the Bank for International Settlements developed a framework to co-ordinate the international financial operations as well as create a portfolio for the capital measurement and capital standards which every nation involving in international banking operations is expected to adopt in order to stabilise and put in order the international transactions between countries. The Basel II accord produced by Basel Committee on Banking Supervision aims at achieving International Convergence of Capital Measurement and Capital Standards. The arrangement aims to set a minimum standard to be met by its participating nations in order to achieve capital adequacy by the participating nations in the international market. This report aims at analysing the effects of Basel II accord on Qatar’s banking sector. The objectives of this report are stated below: To analyse the Basel II accord and it’s framework for measuring capital adequacy in the nations participating in the international banking transaction. To investigate the banking sector of Qatar and the effect of Basel II accord on its international operations and capital adequacy. To analyse the effect of Basel II accord on the nation’s two major banks having international operations in Qatar namely, Qatar Industrial Development Bank (QIDB) and Commercial Bank of Qatar (CBQ) and to analyse the impact of Basel II Accord on the Banking Sector of Qatar. Report Outline: The report comprises of the following chapters. Chapter 1: Introduction This chapter introduces the reader to the objectives of the report and presents a broad picture of the report to the reader. Chapter 2: Overview of Basel II Accord This chapter presents with an overview of the Basel II accord. The three pillars of Basel II accord namely Minimum Capital Requirements, Supervisory Review Process and Market Discipline are analysed in detail to provide the reader with a detailed understanding of the consent of Basel Committee on Banking Supervision. Chapter 3: Implications and Critical Analysis of Basel II Accord The literature review on the Basel II Accord in chapter 2 is followed by the critical analysis and its implications on nations (business and political) are presented to the reader before proceeding to present the overview of the Qatar Banking sector.    Chapter 4: Overview of Qatar and its Banking Sector This chapter presents the reader with an overview of Qatar as a nation and its business operations in the International market. Alongside, the chapter analyses the country’s growth in the banking sector and its internationally active banks. Chapter 5: Case Study This chapter conducts a case study analysis on Qatar’s two internationally active banks namely Qatar Industrial Development Bank (QIDB) and Commercial Bank of Qatar (CBQ). The effect of Basel II accord on the banks along with an overview of the bank is presented to the reader. The data used to present the case study is primarily obtained from secondary sources like journals, reports and white papers. This is apparently due the fact that the analysis is conducted on a foreign nation as well as the data available from the secondary sources are also reliable as they are published by legitimate organizations and popular journals.   Chapter 6: Results and Discussions The results of the case study analysis and discussions are carried out in this chapter. This chapter aims to present a clearer picture to the reader on the effects of the Basel II accord on the banks analysed. Chapter 7:   Conclusion and Recommendations The conclusions derived from the case results and discussions on the case study and the overall conclusion on the effect of Basel I accord on the Qatar Banking Sector is presented in this chapter. Alongside, this chapter presents a few constructive recommendations based on the results and discussion on the case study. Chapter 2: Overview of Basel II Accord This chapter begins with an overview of the Bank for International Settlements followed by a detailed analysis of the Basel II accord. The Basel II committee is also analysed alongside in order to provide a deeper insight to the readers. 2.1 Bank for International Settlements Overview and it’s Operations The Bank for International Settlements (Bank for International Settlements) is an international organization looking after international monetary and financial co-operation across the globe. This organization acts as the bank for all the central banks of countries participating in the international finance and banking. The Bank for International Settlements profile states that the bank achieves the aforementioned statement through acting as A forum to promote discussion and facilitate decision-making processes among central banks and within the international financial and supervisory community. A centre for economic and monetary research A prime counter party for central banks in their financial transactions and Agent or trustee in connection with international financial operations. Established in 17th Many 1930, it is the oldest financial organization at the international level. The Bank for International Settlements has three major decision making bodies within the bank to achieve its mission. They are The general meeting of member central banks This meeting is held before the end of four months of the end of the banks annual financial year. The meeting addresses all the issues related to business and the member central banks gather to approve the annual financial statement released by the bank. The Board of Directors The board of directors comprise the central bank governors elected from various participating countries. They monitor the overall operation of the bank and take responsibility for actions to be taken and address issues related to disputes and other major international financial cross border problems. The Management Committee The management committee is the first line representative of the Bank for International Settlements and addresses the day-to-day activities of the bank. This committee primarily manages the monetary and financial co-operation services. The services include Meetings: Apart from the Annual general meeting the Bank for International Settlements organizes meetings on a bimonthly basis. This meeting brings the member central banks together with the aim of monitoring the global economic and financial development and discusses issues on its policies in relation to the monetary and financial stability. Committees and Secretariats Bank for International Settlements has several committees to monitor specific problems and issues in the international finance and cross border loans. Alongside, several other committees and organizations focusing on international financial systems have their secretariats in the Bank for International Settlements and work closely with the bank in order to enhance the overall international banking and cross border finance. Basel committee of the Bank for International Settlements is the committee that laid the specifications for capital measurement and capital standard of the central banks participating in the international banking. Research and Statistics: In order to support its meetings and the activities of the organization’s Basel based committees the Bank for International Settlements carries out regular research on economic, monetary, financial and legal areas of the international banking and cross border finance. Investment services for central banks: Bank for International Settlements also provides security, liquidity and return for its central bank members. The three primary points with respect to this identified by the organization are: To provide security, the Bank has built up a sizeable equity capital and ample reserves. It pursues an investment strategy focused on combining diversification benefits with intensive credit and market risk analysis. To ensure liquidity, the Bank stands ready to repurchase its tradable instruments at little cost to its customers and thus respond quickly and flexibly to their needs. The BIS offers an attractive and competitive return on the funds deposited by central banks and international organisations The Bank for International Settlements focuses on serving the financial needs of central banks of the member countries. Alongside, it also acts as a banker managing the funds for numerous international financial institutions. 2.2: Basel committee Overview The Basel committee was established the member central banks of the Bank for International Settlements in order to create a standard for the international banking and capital framework for crass border finance and lending. The committee was initially set up in 1970 and meets regularly four times a year to discuss the progress in international banking and address issues related to business in this context. The member nations of the committee include Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, the Netherlands, Spain, Sweden, Switzerland, United Kingdom and United States. The country’s central bank and financial institutions that are not active in banking commercially but monitor the financial operations of the nation both at national and international levels represent the nations. The committee does no possess any authority over its member nations banking systems and the decisions of the committee are never intended to have a legal force on its member nations. The Central bank governors of the Group ten countries endorse the committee’s major initiatives. Also the committee reports to the group ten countries central bank governors. The committee first proposed he capital measurement system in 1988 commonly referred to as ‘Basel Capital Accord’. The committee aims in supervising the international banking operations of the nations across the globe. The decisions of the committee endorsed by the group ten countries address various financial issues in the international market outside the groups as well. The major aim of the committee is the ‘close the gaps in international supervisory coverage’ and to ensure that no foreign banking systems escapes the supervision in order to establish a harmony among the member nations of the Bank for International Settlements as well as in the international market. The committee has promoted supervisory standards in the past few years. Some of its major milestones include the following 1997: Cover Principles for effective banking supervision 1999: Core Principles methodology The committee also presented the Basel II accord with revision on international capital framework. This aims to standardise the capital framework of every bank participating in the international banking as well as sets slabs for minimum capital holdings to be met by the banks in order to qualify for international operations. The committee has numerous subgroups to perform specific tasks of the committee in order to achieve the overall motto of the committee. They are listed below Accord Implementation Group Accounting Task Force Capital Group Capital Task Force Core Principles Liaison Group (with 16 non-G10 countries) Cross-Border Banking Group Electronic Banking Group Joint Forum (with IAIS and IOSCO) Joint IOSCO BCBS Working Group on Trading Book Research Task Force Risk Management Group Securitisation Group Transparency Group The next section provides a detailed analysis of the Basel II accord and its various implications on international banking is discussed in chapter 3. 2.3 The Basel II Accord The Basel II accord was released in June 2004 further to the release of the Basel Accord in 2003. The Basel II is a revised edition of the initial Basel capital accord. It is a framework designed to derive the capital holdings of internationally active banks to meet the international standards and sets a minimum level of capital holding which is a primary criteria for the banks. The Basel II framework is aimed to be applied on a consolidated basis over internationally active banks in order to preserve the integrity of capital in the banks with subsidiaries. Also the framework eliminates the double gearing through this approach. The Basel II accord’s framework is also applied on a fully consolidated basis on any parent holding company which acts as a parent entity within a banking group in order to capture the risk on a consolidated basis without missing any element that contributes considerably to the risk of the overall banking system. Alongside, the framework is also applicable to all internationally active banks at every tier of the banking group. Apart from the aforementioned statements one of the principal objectives of the Basel II Accord is to protect the interest of the depositors essentially to ensure that capital recognised capital adequacy measures is readily available for the depositors. Apparently, these measures are aimed to establish a common platform for international banking and cross border finance across the globe. The scope of application extends to the following segments of the international banking and finance entities. Banking, securities and other financial subsidiaries Significant minority investments in banking securities Insurance entities Significant investment in commercial entities. Deduction of investment pursuant to this part The aforementioned entities are obtained from the Basel Committee report on International Convergence of Capital Measurement and Capital Standards, published in June 2004. The Basel II accord overview is based on this report. The illustration in the fig 1 gives a clear picture of the overall scope of application of the Basel II accord. The Basel II accord is split into three pillars. The first Pillar: Minimum Capital Requirements The following subsections provide a detailed analysis on the elements shown in fig 2. 2.4: The First Pillar The First pillar lays down the minimum capital requirements that every internationally active bank should incorporate.   It is split into the following subsection. 2.4.1:   Calculation of Minimum capital requirements The minimum capital requirement is calculated as a measure of the capital ration. The capital ratio in turn is calculated using the regulatory capital and risk-weighted assets. The requirement of this criterion is that the capital ration must be a minimum of 8% or more in order to be eligible for the international activities. Also, in case of a two tier system the capital in tier 2 must not be greater than the tier 1 capital (i.e.) the tier 2 capital can be a maximum of 100% of the tier 1 capital. The capital is accounted from the following sources    Regulatory capital: The minimum accounting capital requirements for the financial institution encompasses the regulatory capital. The Basel II accord has withdrawn the provision to include general provisions in tire 2 capital, which was in effect in the 1988 Accord under the Internal Ratings-Based (IRB) approach.   Furthermore the accord has lain down that the banks using the Internal Ratings Based approach to their other assets mus t compare the amount of total eligible provision with the total expected losses amount to the bank. This eventually increases the capital holding of the bank in order to meet the criteria. Risk Weighted Assets: The Basel II Accord calculates the total risk-weighted assets by multiplying the capital requirement for market risk and operational risk by the reciprocal of the minimum capital ratio of 8% and adding the resulting value to the sum of risk weighted assets for credit risk. Even though this is subject to review the approach lays enormous burden on the bank to increase its minimum capital holdings. Apparently the Basel II Accord is aiming to establish that the internationally active banks must have enough capital to meet its short comings without depending on loans and cross border finance to address its immediate requirements and short comings. The idea though being novel is very intense for the banks to maintain the required minimum capital. 2.4.2: Credit Risk-The Standardised Approach Under this method the Basel committee provides the internationally active banks a choice for calculating their capital requirements for credit risk. The first approach is the standardised method of measuring the credit risk through support from external credit assessments. This method is approved by the Basel committee while the other method is yet to explicitly approved by the committee. Under the alternate method of calculating the credit risk, the bank supervisor can allow banks to use their internal rating systems for calculating the credit risk. Under both the methodologies one should not oversee the fact that the Basel committee is very keen in assessing the credit risk on the capital holdings of the internationally active banks. Even though this is appreciated, the rules are very stringent making it very difficult for the banks for adopt easily. 2.4.3 Credit Risk- Internal Ratings Based Approach The Basel II committee has given supervisory approval for banks to use the Internal Ratings-Based approach to determine their capital requirement for a given exposure subject to certain minimum conditions and disclosure requirements. The risk components considered include Measures of the probability of default (PD), Loss given default (LGD), The exposure at default (EAD), Effective maturity (M) The Basel II accord states that â€Å"The Internal Ratings Based Approach is based on the measure of unexpected loses (UL) and Expected Loses (EL). Under the Internal Ratings Based Approach, the committee expects the bank to categories their exposures in order to identify the different underlying risk characteristics. The categories include corporate, sovereign, bank, retail and equity. These are identified as the corporate asset classes and the approach further expects the bank to identify the subclasses associated with the asset classes in order to measure the credit risk associated with the exposure. The detailed analysis of every corporate class and its associated subclasses is beyond the scope of this report. In essence the Internal Ratings Based Approach gives the bank more liberty to calculate its credit-risk on the minimum capital requirement for a given exposure. But the producers laid by the Basel II Accord is very tedious to adopt and implement for every corporate class exposure and identifying the subclasses associated. 2.4.4: Credit Risk- Securitisation Framework The Basel Committee in its revised accord, has made it mandatory for the banks to apply the Securitisation Framework for determining regulatory capital requirements on exposure arising from traditional and synthetic Securitisation or similar structures that contain features common to both.   The Basel II accord also states that the capital treatment of the Securitisation exposure must be determined on the basis of the economic substance rather than the legal form of the structure. It is apparent that the securities can be structured in many different ways and the committee has approved the use of either the traditional Securitisation or the synthetic Securitisation framework. Also the Basel II accord expects the supervisor to look at the economic substance of transaction in order to determine whether it should be subject to Securitisation framework or not. This gives the discretionary power to the supervisor to decide on a specific transaction whether to include it in the framework or to eliminate it from the framework towards determining the regulatory capital framework. The traditional Securitisation and the synthetic Securitisation framework are discussed below. Traditional Securitisation: The Basel II Accord defines the traditional framework as â€Å"a structure where the cash flow from an underlying pool of exposures is used to service at least two different stratified risk positions or tranches reflecting different degrees of credit risk†. The advantage with this approach is that the payment to the investors is based on the performance of the specified underlying exposures rather than a derivation from an obligation of the entity originating those exposures. Synthetic Securitisation â€Å"A synthetic Securitisation is a structure with at least two different stratified risk positions or tranches that reflect different degrees of credit risk where credit risk of an underlying pool of exposures is transferred, in whole or in part, through the use of funded (e.g. credit-linked notes) or un-funded (e.g. credit default swaps) credit derivatives or guarantees that serve to hedge the credit risk of the portfolio†. This approach leaves the return to the investors in the hands of the performance of the underlying pool. Apparently, the risk associated is higher since the performance can be affected by numerous causes. From the above-mentioned approaches the Basel II accord’s stand for evaluating the capital and minimum capital requirements are evident. 2.4.5: Operational Risk The operational risk is defined by the Basel Committee as the risk associated with the loss resulting from inadequate or failed internal processes, people, systems or external events. This includes the legal risk with the exclusion of strategic and reputational risk. The Basel II Accord has approved three methods for calculating the operational risk and risk sensitivity with the implications on minimum capital requirements. They are: (i) The Basic indicator approach, (ii) the Standardised Approach and (iii) Advanced Measurement Approach. Basic Indicator Approach: In this case the banks should hold capital for the operational risk equal to the average over the past three years of a fixed percentage. This is expressed as a formula below KBIA = [ÃŽ £ (GI1†¦n x ÃŽ ±)] Where KBIA = the capital charge under the Basic Indicator Approach GI = annual gross income, where positive, over the previous three years n = number of the previous three years for which gross income is positive ÃŽ ± = 15%, which is set by the Committee, relating the industry wide level of required capital to the industry wide level of the indicator. This formula is obtained from the Basel II accord for the purpose of reader understanding. Standardised Approach: The standardised approach divides the bank’s activities into eight-business lines namely corporate finance, trading sales, retail banking, commercial banking, payment settlement, agency services, asset management, and retail brokerage. The likelihood of operational risk exposure is calculated from the gross income associated with each business line that serves as an indicator for the scale of business operations by the bank in that specific area of business or business line. This approach is very clumsy since the gross income associated with the business line varies due to numerous reasons both internal and external. Advanced Measurement Approach: The Advanced Measurement Approach equates the regulatory capital requirement with the risk measure generated by the bank’s internal operational risk measurement system using quantitative and qualitative criteria. The banks can use this method only after the approval by the Committee. The Basel II Accord sets the approach for the banks based on their international activity and significant operational risk exposures. Also, when a bank agrees to use a more sophisticated method, it cannot revert back to the easier method without approval from the supervisor. This eventually increases the burden on the banks to choose a sophisticated method. 2.4.6: Trading Book Issues The final segment of the first pillar is the trading book. Basel Committee defines the trading book as a container of both the financial instruments and commodities held either with trading intent or in order to hedge other elements of the trading book. The trading book forms a vital element for the bank since it is the record of the bank’s financial instruments as well as commodities. The Basel II Accord identifies four key principles for the supervisory process. They are listed below. The basic requirements for the eligibility to trading book capital treatment put forth by the Basel II Accord are as follows Clearly documented trading strategy for the position/instrument or portfolios, approved by senior management (which would include expected holding horizon). Clearly defined policies and procedures for the active management of the position Clearly defined policy and procedures to monitor the positions against the bank’s trading strategy including the monitoring of turnover and stale positions in the bank’s trading book 2.3: The Second Pillar- Supervisory Review Process Basel committee was initially set up for the supervising the internationally active banks and produce a common platform for the smooth transactions and cross border finance. The Basel II Accord has established Supervisory Process as one of the three pillars in order to emphasise its stand on supervisory process. The importance of supervisory process is described below. 2.3.1: Importance of Supervisory Process The supervisory review process of the Basel II Accord aims not only to ensure that banks have adequate capital to support all the risks in their business but also intends to encourage the banks to develop and use better risk management techniques in monitoring and managing risks. Alongside, the supervisory process by developing internal capital assessment process and setting capital targets that are commensurate with the bank’s risk profile recognises the importance for bank management in order to improve the atmosphere in the international banking and cross border finance. The Supervisory process evaluates the relationship between the amount of capital held by the bank against the risk, strength and effectiveness of the bank’s risk management eventually guiding the bank and supervising its activities in order to improve the performance of the banks in the international business market and cross border finance. 2.3.2 Four Key Principles of the supervisory review The four key principles identified by the Basel II Accord on the supervisory process is listed below. These principles emphasise on the committee’s focus on supervision and its aim to maintain harmony in the international banking and cross border finance. Principle 1: Banks should have a process for assessing their overall capital adequacy in relation to their risk profile and a strategy for maintaining their capital levels. Principle 2:Supervisors should review and evaluate banks’ internal capital adequacy assessments and strategies, as well as their ability to monitor and ensure their compliance with regulatory capital ratios. Supervisors should take appropriate supervisory action if they are not satisfied with the result of this process. Principle 3: Supervisors should expect banks to operate above the minimum regulatory capital ratios and should have the ability to require banks to hold capital in excess of the minimum. Principle 4: Supervisors should seek to intervene at an early stage to prevent capital from falling below the minimum levels required to support the risk characteristics of a particular bank and should require rapid remedial action if capital is not maintained or restored. 2.3.3: Issues to be addressed There are two specific issues to be addressed by the Supervisory-Review Process. They are Interest Rate Risk in the Banking book: Since it is clear that the Basel Committee’s Basel II Accord Effects on Qatar Banking Basel II Accord Effects on Qatar Banking International banking is increasingly vital for every country in order to create an image for itself in the international finance market Chapter 1: Introduction International banking is increasingly vital for every country in order to create an image for itself in the international finance market. Alongside, the increase in globalisation and the upsurge in outsourcing by multinational companies in the west have created a lot of opportunities for growth in the Middle East and Far Eastern countries. This apparently requires a strong internationally stable financial organization to conduct transactions across the globe without any errors (i.e.) 100% accuracy.   This includes reliability and stability of the bank under extreme situations (like emergency for example), which is highly important to conduct international transactions. Also the potential to meet financial demands during crisis situations is a vital criterion that is considered while presenting themselves in the international market. In addition to the globalisation, outsourcing and export/import growth, there is also a tremendous growth in cross-border finance among the countries in the Middle East and Far East. Along with all these factors the developing nations in the Middle East face a mandatory requirement of a sable international banking system in order to attract foreign investment. The increase in cross border finance activity among the middle eastern countries is also a critical element to be considered for establishing a stable international bank within the nation in order to represent the country in the international finance market. The countries in the Middle East are actively participating in cross-border finance since the dawn of the 21st century. Being a producer of Oil which is a vital ingredient at all levels of life right from day-to-day driving up to power generation for the nation in order to run industries and serve domestic purposes, makes it critical for the nations in the Middle East to have a strong international banking system to conduct transactions across the globe accurately and effectively. Qatar is a growing nation in the Middle East with primary operations in oil and gas export as well increasing its potential in areas of development in technology focusing on IT and communication. The nation has efficient international operations and con ducts financial transactions between western nations as well as with eastern nations. Since the take over of the government by H.H. Sheikh Hamad Bin Khalifa in 1995, the country is making tremendous progress in deploying its hydrocarbon resources in order to penetrate in the international market and present itself as a financially stable nation in the international market. Further to the increase in the international operations by the countries in the Middle East and the Far East, the Bank for International Settlements developed a framework to co-ordinate the international financial operations as well as create a portfolio for the capital measurement and capital standards which every nation involving in international banking operations is expected to adopt in order to stabilise and put in order the international transactions between countries. The Basel II accord produced by Basel Committee on Banking Supervision aims at achieving International Convergence of Capital Measurement and Capital Standards. The arrangement aims to set a minimum standard to be met by its participating nations in order to achieve capital adequacy by the participating nations in the international market. This report aims at analysing the effects of Basel II accord on Qatar’s banking sector. The objectives of this report are stated below: To analyse the Basel II accord and it’s framework for measuring capital adequacy in the nations participating in the international banking transaction. To investigate the banking sector of Qatar and the effect of Basel II accord on its international operations and capital adequacy. To analyse the effect of Basel II accord on the nation’s two major banks having international operations in Qatar namely, Qatar Industrial Development Bank (QIDB) and Commercial Bank of Qatar (CBQ) and to analyse the impact of Basel II Accord on the Banking Sector of Qatar. Report Outline: The report comprises of the following chapters. Chapter 1: Introduction This chapter introduces the reader to the objectives of the report and presents a broad picture of the report to the reader. Chapter 2: Overview of Basel II Accord This chapter presents with an overview of the Basel II accord. The three pillars of Basel II accord namely Minimum Capital Requirements, Supervisory Review Process and Market Discipline are analysed in detail to provide the reader with a detailed understanding of the consent of Basel Committee on Banking Supervision. Chapter 3: Implications and Critical Analysis of Basel II Accord The literature review on the Basel II Accord in chapter 2 is followed by the critical analysis and its implications on nations (business and political) are presented to the reader before proceeding to present the overview of the Qatar Banking sector.    Chapter 4: Overview of Qatar and its Banking Sector This chapter presents the reader with an overview of Qatar as a nation and its business operations in the International market. Alongside, the chapter analyses the country’s growth in the banking sector and its internationally active banks. Chapter 5: Case Study This chapter conducts a case study analysis on Qatar’s two internationally active banks namely Qatar Industrial Development Bank (QIDB) and Commercial Bank of Qatar (CBQ). The effect of Basel II accord on the banks along with an overview of the bank is presented to the reader. The data used to present the case study is primarily obtained from secondary sources like journals, reports and white papers. This is apparently due the fact that the analysis is conducted on a foreign nation as well as the data available from the secondary sources are also reliable as they are published by legitimate organizations and popular journals.   Chapter 6: Results and Discussions The results of the case study analysis and discussions are carried out in this chapter. This chapter aims to present a clearer picture to the reader on the effects of the Basel II accord on the banks analysed. Chapter 7:   Conclusion and Recommendations The conclusions derived from the case results and discussions on the case study and the overall conclusion on the effect of Basel I accord on the Qatar Banking Sector is presented in this chapter. Alongside, this chapter presents a few constructive recommendations based on the results and discussion on the case study. Chapter 2: Overview of Basel II Accord This chapter begins with an overview of the Bank for International Settlements followed by a detailed analysis of the Basel II accord. The Basel II committee is also analysed alongside in order to provide a deeper insight to the readers. 2.1 Bank for International Settlements Overview and it’s Operations The Bank for International Settlements (Bank for International Settlements) is an international organization looking after international monetary and financial co-operation across the globe. This organization acts as the bank for all the central banks of countries participating in the international finance and banking. The Bank for International Settlements profile states that the bank achieves the aforementioned statement through acting as A forum to promote discussion and facilitate decision-making processes among central banks and within the international financial and supervisory community. A centre for economic and monetary research A prime counter party for central banks in their financial transactions and Agent or trustee in connection with international financial operations. Established in 17th Many 1930, it is the oldest financial organization at the international level. The Bank for International Settlements has three major decision making bodies within the bank to achieve its mission. They are The general meeting of member central banks This meeting is held before the end of four months of the end of the banks annual financial year. The meeting addresses all the issues related to business and the member central banks gather to approve the annual financial statement released by the bank. The Board of Directors The board of directors comprise the central bank governors elected from various participating countries. They monitor the overall operation of the bank and take responsibility for actions to be taken and address issues related to disputes and other major international financial cross border problems. The Management Committee The management committee is the first line representative of the Bank for International Settlements and addresses the day-to-day activities of the bank. This committee primarily manages the monetary and financial co-operation services. The services include Meetings: Apart from the Annual general meeting the Bank for International Settlements organizes meetings on a bimonthly basis. This meeting brings the member central banks together with the aim of monitoring the global economic and financial development and discusses issues on its policies in relation to the monetary and financial stability. Committees and Secretariats Bank for International Settlements has several committees to monitor specific problems and issues in the international finance and cross border loans. Alongside, several other committees and organizations focusing on international financial systems have their secretariats in the Bank for International Settlements and work closely with the bank in order to enhance the overall international banking and cross border finance. Basel committee of the Bank for International Settlements is the committee that laid the specifications for capital measurement and capital standard of the central banks participating in the international banking. Research and Statistics: In order to support its meetings and the activities of the organization’s Basel based committees the Bank for International Settlements carries out regular research on economic, monetary, financial and legal areas of the international banking and cross border finance. Investment services for central banks: Bank for International Settlements also provides security, liquidity and return for its central bank members. The three primary points with respect to this identified by the organization are: To provide security, the Bank has built up a sizeable equity capital and ample reserves. It pursues an investment strategy focused on combining diversification benefits with intensive credit and market risk analysis. To ensure liquidity, the Bank stands ready to repurchase its tradable instruments at little cost to its customers and thus respond quickly and flexibly to their needs. The BIS offers an attractive and competitive return on the funds deposited by central banks and international organisations The Bank for International Settlements focuses on serving the financial needs of central banks of the member countries. Alongside, it also acts as a banker managing the funds for numerous international financial institutions. 2.2: Basel committee Overview The Basel committee was established the member central banks of the Bank for International Settlements in order to create a standard for the international banking and capital framework for crass border finance and lending. The committee was initially set up in 1970 and meets regularly four times a year to discuss the progress in international banking and address issues related to business in this context. The member nations of the committee include Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, the Netherlands, Spain, Sweden, Switzerland, United Kingdom and United States. The country’s central bank and financial institutions that are not active in banking commercially but monitor the financial operations of the nation both at national and international levels represent the nations. The committee does no possess any authority over its member nations banking systems and the decisions of the committee are never intended to have a legal force on its member nations. The Central bank governors of the Group ten countries endorse the committee’s major initiatives. Also the committee reports to the group ten countries central bank governors. The committee first proposed he capital measurement system in 1988 commonly referred to as ‘Basel Capital Accord’. The committee aims in supervising the international banking operations of the nations across the globe. The decisions of the committee endorsed by the group ten countries address various financial issues in the international market outside the groups as well. The major aim of the committee is the ‘close the gaps in international supervisory coverage’ and to ensure that no foreign banking systems escapes the supervision in order to establish a harmony among the member nations of the Bank for International Settlements as well as in the international market. The committee has promoted supervisory standards in the past few years. Some of its major milestones include the following 1997: Cover Principles for effective banking supervision 1999: Core Principles methodology The committee also presented the Basel II accord with revision on international capital framework. This aims to standardise the capital framework of every bank participating in the international banking as well as sets slabs for minimum capital holdings to be met by the banks in order to qualify for international operations. The committee has numerous subgroups to perform specific tasks of the committee in order to achieve the overall motto of the committee. They are listed below Accord Implementation Group Accounting Task Force Capital Group Capital Task Force Core Principles Liaison Group (with 16 non-G10 countries) Cross-Border Banking Group Electronic Banking Group Joint Forum (with IAIS and IOSCO) Joint IOSCO BCBS Working Group on Trading Book Research Task Force Risk Management Group Securitisation Group Transparency Group The next section provides a detailed analysis of the Basel II accord and its various implications on international banking is discussed in chapter 3. 2.3 The Basel II Accord The Basel II accord was released in June 2004 further to the release of the Basel Accord in 2003. The Basel II is a revised edition of the initial Basel capital accord. It is a framework designed to derive the capital holdings of internationally active banks to meet the international standards and sets a minimum level of capital holding which is a primary criteria for the banks. The Basel II framework is aimed to be applied on a consolidated basis over internationally active banks in order to preserve the integrity of capital in the banks with subsidiaries. Also the framework eliminates the double gearing through this approach. The Basel II accord’s framework is also applied on a fully consolidated basis on any parent holding company which acts as a parent entity within a banking group in order to capture the risk on a consolidated basis without missing any element that contributes considerably to the risk of the overall banking system. Alongside, the framework is also applicable to all internationally active banks at every tier of the banking group. Apart from the aforementioned statements one of the principal objectives of the Basel II Accord is to protect the interest of the depositors essentially to ensure that capital recognised capital adequacy measures is readily available for the depositors. Apparently, these measures are aimed to establish a common platform for international banking and cross border finance across the globe. The scope of application extends to the following segments of the international banking and finance entities. Banking, securities and other financial subsidiaries Significant minority investments in banking securities Insurance entities Significant investment in commercial entities. Deduction of investment pursuant to this part The aforementioned entities are obtained from the Basel Committee report on International Convergence of Capital Measurement and Capital Standards, published in June 2004. The Basel II accord overview is based on this report. The illustration in the fig 1 gives a clear picture of the overall scope of application of the Basel II accord. The Basel II accord is split into three pillars. The first Pillar: Minimum Capital Requirements The following subsections provide a detailed analysis on the elements shown in fig 2. 2.4: The First Pillar The First pillar lays down the minimum capital requirements that every internationally active bank should incorporate.   It is split into the following subsection. 2.4.1:   Calculation of Minimum capital requirements The minimum capital requirement is calculated as a measure of the capital ration. The capital ratio in turn is calculated using the regulatory capital and risk-weighted assets. The requirement of this criterion is that the capital ration must be a minimum of 8% or more in order to be eligible for the international activities. Also, in case of a two tier system the capital in tier 2 must not be greater than the tier 1 capital (i.e.) the tier 2 capital can be a maximum of 100% of the tier 1 capital. The capital is accounted from the following sources    Regulatory capital: The minimum accounting capital requirements for the financial institution encompasses the regulatory capital. The Basel II accord has withdrawn the provision to include general provisions in tire 2 capital, which was in effect in the 1988 Accord under the Internal Ratings-Based (IRB) approach.   Furthermore the accord has lain down that the banks using the Internal Ratings Based approach to their other assets mus t compare the amount of total eligible provision with the total expected losses amount to the bank. This eventually increases the capital holding of the bank in order to meet the criteria. Risk Weighted Assets: The Basel II Accord calculates the total risk-weighted assets by multiplying the capital requirement for market risk and operational risk by the reciprocal of the minimum capital ratio of 8% and adding the resulting value to the sum of risk weighted assets for credit risk. Even though this is subject to review the approach lays enormous burden on the bank to increase its minimum capital holdings. Apparently the Basel II Accord is aiming to establish that the internationally active banks must have enough capital to meet its short comings without depending on loans and cross border finance to address its immediate requirements and short comings. The idea though being novel is very intense for the banks to maintain the required minimum capital. 2.4.2: Credit Risk-The Standardised Approach Under this method the Basel committee provides the internationally active banks a choice for calculating their capital requirements for credit risk. The first approach is the standardised method of measuring the credit risk through support from external credit assessments. This method is approved by the Basel committee while the other method is yet to explicitly approved by the committee. Under the alternate method of calculating the credit risk, the bank supervisor can allow banks to use their internal rating systems for calculating the credit risk. Under both the methodologies one should not oversee the fact that the Basel committee is very keen in assessing the credit risk on the capital holdings of the internationally active banks. Even though this is appreciated, the rules are very stringent making it very difficult for the banks for adopt easily. 2.4.3 Credit Risk- Internal Ratings Based Approach The Basel II committee has given supervisory approval for banks to use the Internal Ratings-Based approach to determine their capital requirement for a given exposure subject to certain minimum conditions and disclosure requirements. The risk components considered include Measures of the probability of default (PD), Loss given default (LGD), The exposure at default (EAD), Effective maturity (M) The Basel II accord states that â€Å"The Internal Ratings Based Approach is based on the measure of unexpected loses (UL) and Expected Loses (EL). Under the Internal Ratings Based Approach, the committee expects the bank to categories their exposures in order to identify the different underlying risk characteristics. The categories include corporate, sovereign, bank, retail and equity. These are identified as the corporate asset classes and the approach further expects the bank to identify the subclasses associated with the asset classes in order to measure the credit risk associated with the exposure. The detailed analysis of every corporate class and its associated subclasses is beyond the scope of this report. In essence the Internal Ratings Based Approach gives the bank more liberty to calculate its credit-risk on the minimum capital requirement for a given exposure. But the producers laid by the Basel II Accord is very tedious to adopt and implement for every corporate class exposure and identifying the subclasses associated. 2.4.4: Credit Risk- Securitisation Framework The Basel Committee in its revised accord, has made it mandatory for the banks to apply the Securitisation Framework for determining regulatory capital requirements on exposure arising from traditional and synthetic Securitisation or similar structures that contain features common to both.   The Basel II accord also states that the capital treatment of the Securitisation exposure must be determined on the basis of the economic substance rather than the legal form of the structure. It is apparent that the securities can be structured in many different ways and the committee has approved the use of either the traditional Securitisation or the synthetic Securitisation framework. Also the Basel II accord expects the supervisor to look at the economic substance of transaction in order to determine whether it should be subject to Securitisation framework or not. This gives the discretionary power to the supervisor to decide on a specific transaction whether to include it in the framework or to eliminate it from the framework towards determining the regulatory capital framework. The traditional Securitisation and the synthetic Securitisation framework are discussed below. Traditional Securitisation: The Basel II Accord defines the traditional framework as â€Å"a structure where the cash flow from an underlying pool of exposures is used to service at least two different stratified risk positions or tranches reflecting different degrees of credit risk†. The advantage with this approach is that the payment to the investors is based on the performance of the specified underlying exposures rather than a derivation from an obligation of the entity originating those exposures. Synthetic Securitisation â€Å"A synthetic Securitisation is a structure with at least two different stratified risk positions or tranches that reflect different degrees of credit risk where credit risk of an underlying pool of exposures is transferred, in whole or in part, through the use of funded (e.g. credit-linked notes) or un-funded (e.g. credit default swaps) credit derivatives or guarantees that serve to hedge the credit risk of the portfolio†. This approach leaves the return to the investors in the hands of the performance of the underlying pool. Apparently, the risk associated is higher since the performance can be affected by numerous causes. From the above-mentioned approaches the Basel II accord’s stand for evaluating the capital and minimum capital requirements are evident. 2.4.5: Operational Risk The operational risk is defined by the Basel Committee as the risk associated with the loss resulting from inadequate or failed internal processes, people, systems or external events. This includes the legal risk with the exclusion of strategic and reputational risk. The Basel II Accord has approved three methods for calculating the operational risk and risk sensitivity with the implications on minimum capital requirements. They are: (i) The Basic indicator approach, (ii) the Standardised Approach and (iii) Advanced Measurement Approach. Basic Indicator Approach: In this case the banks should hold capital for the operational risk equal to the average over the past three years of a fixed percentage. This is expressed as a formula below KBIA = [ÃŽ £ (GI1†¦n x ÃŽ ±)] Where KBIA = the capital charge under the Basic Indicator Approach GI = annual gross income, where positive, over the previous three years n = number of the previous three years for which gross income is positive ÃŽ ± = 15%, which is set by the Committee, relating the industry wide level of required capital to the industry wide level of the indicator. This formula is obtained from the Basel II accord for the purpose of reader understanding. Standardised Approach: The standardised approach divides the bank’s activities into eight-business lines namely corporate finance, trading sales, retail banking, commercial banking, payment settlement, agency services, asset management, and retail brokerage. The likelihood of operational risk exposure is calculated from the gross income associated with each business line that serves as an indicator for the scale of business operations by the bank in that specific area of business or business line. This approach is very clumsy since the gross income associated with the business line varies due to numerous reasons both internal and external. Advanced Measurement Approach: The Advanced Measurement Approach equates the regulatory capital requirement with the risk measure generated by the bank’s internal operational risk measurement system using quantitative and qualitative criteria. The banks can use this method only after the approval by the Committee. The Basel II Accord sets the approach for the banks based on their international activity and significant operational risk exposures. Also, when a bank agrees to use a more sophisticated method, it cannot revert back to the easier method without approval from the supervisor. This eventually increases the burden on the banks to choose a sophisticated method. 2.4.6: Trading Book Issues The final segment of the first pillar is the trading book. Basel Committee defines the trading book as a container of both the financial instruments and commodities held either with trading intent or in order to hedge other elements of the trading book. The trading book forms a vital element for the bank since it is the record of the bank’s financial instruments as well as commodities. The Basel II Accord identifies four key principles for the supervisory process. They are listed below. The basic requirements for the eligibility to trading book capital treatment put forth by the Basel II Accord are as follows Clearly documented trading strategy for the position/instrument or portfolios, approved by senior management (which would include expected holding horizon). Clearly defined policies and procedures for the active management of the position Clearly defined policy and procedures to monitor the positions against the bank’s trading strategy including the monitoring of turnover and stale positions in the bank’s trading book 2.3: The Second Pillar- Supervisory Review Process Basel committee was initially set up for the supervising the internationally active banks and produce a common platform for the smooth transactions and cross border finance. The Basel II Accord has established Supervisory Process as one of the three pillars in order to emphasise its stand on supervisory process. The importance of supervisory process is described below. 2.3.1: Importance of Supervisory Process The supervisory review process of the Basel II Accord aims not only to ensure that banks have adequate capital to support all the risks in their business but also intends to encourage the banks to develop and use better risk management techniques in monitoring and managing risks. Alongside, the supervisory process by developing internal capital assessment process and setting capital targets that are commensurate with the bank’s risk profile recognises the importance for bank management in order to improve the atmosphere in the international banking and cross border finance. The Supervisory process evaluates the relationship between the amount of capital held by the bank against the risk, strength and effectiveness of the bank’s risk management eventually guiding the bank and supervising its activities in order to improve the performance of the banks in the international business market and cross border finance. 2.3.2 Four Key Principles of the supervisory review The four key principles identified by the Basel II Accord on the supervisory process is listed below. These principles emphasise on the committee’s focus on supervision and its aim to maintain harmony in the international banking and cross border finance. Principle 1: Banks should have a process for assessing their overall capital adequacy in relation to their risk profile and a strategy for maintaining their capital levels. Principle 2:Supervisors should review and evaluate banks’ internal capital adequacy assessments and strategies, as well as their ability to monitor and ensure their compliance with regulatory capital ratios. Supervisors should take appropriate supervisory action if they are not satisfied with the result of this process. Principle 3: Supervisors should expect banks to operate above the minimum regulatory capital ratios and should have the ability to require banks to hold capital in excess of the minimum. Principle 4: Supervisors should seek to intervene at an early stage to prevent capital from falling below the minimum levels required to support the risk characteristics of a particular bank and should require rapid remedial action if capital is not maintained or restored. 2.3.3: Issues to be addressed There are two specific issues to be addressed by the Supervisory-Review Process. They are Interest Rate Risk in the Banking book: Since it is clear that the Basel Committee’s