Leed Certification And Sustainable Buildings Environmental Sciences Essay

The undermentioned paper discusses the influence of constructions on the environment and stairss that are being taken to cut down their C footmark throughout the universe. Buildings contribute significantly to the pollution of this planet. However, while they contribute a batch to pollution, they besides have the ability to cut down that sum of pollution and waste through the agencies of making a outlook of sustainability throughout their industry. Every phase in the life rhythm of a edifice can play their portion from design and building to operation. The LEED enterprise is one such manner to get down the development in the mentality of builders and interior decorators. While the LEED enterprise has become rather successful, many builders tend to remain off from it due to the fact that to derive LEED enfranchisement, the cost of the edifice is raised. While the initial cost is higher, the long term nest eggs is significant and finally makes it worthwhile. Items from public-service corporation costs are lower along with revenue enhancement nest eggs from the authorities. Even belongings value has been proven to be raised with LEED enfranchisement. While the thought of long term nest eggs is important to acquire more builders to see sustainability more, this alteration must go a lasting 1 that makes environmentally friendly structures the norm instead than a kind of side show. This procedure will be gradual, but with committees such as LEED and others around the universe, the edifice industry is making their portion to assist cut down pollution and waste. LEED Certification and Sustainable Buildings Environmental consciousness is going of all time more outstanding in today ‘s society. Whether it is being more concerned about car emanations and their stat mis per gallon statistics, or purchasing locally produced nutrients, â€Å" Traveling Green † is everyplace we look whether we like it or non. These illustrations of utilizing engineering or stuff assemblage methods for autos and food market shop merchandises are the most common ways of society ‘s effort to cut down their C footmark on the planet. However, there is a sector of society and concern for that affair which is far less perceptibly trying to do this measure into the kingdom of sustainability. This sector I am speaking about is the industry of planing, building, and operation of edifices. Buildings in the United States represent 39 per centum of the state ‘s primary energy usage, history for 38 per centum of all C dioxide emanations, represent 72 per centum of the state ‘s ingestion, they use 14 per centum of all drinkable H2O, and globally, edifices use 40 per centum of natural stuffs. ( Yudelson ) When one takes a minute to see how much energy and stuff it takes to construct anything, from the fumes of Cranes and dozers, to the electricity consumed in a completed skyscraper, these Numberss are non all that surprising. And now cognizing these Numberss, one can conceive of the impact on the C footmark of the United States, if something was done to diminish them. Fortunately, efforts are being made to do the building industry more environmentally friendly, with such enterprises as the LEED evaluation system for constructions of all sorts. LEED is an acronym for â€Å" Leadership in Energy and Environmental Design. † Its intent is to separate edifices that have gone supra and beyond in their efforts to make a significantly more environmentally friendly constructing than normal. â€Å" LEED collects and incorporates a broad assortment of ‘best patterns ‘ across many subjects including architecture, technology, interior design, landscape architecture, and building. â€Å" ( Yudelson ) This quotation mark from Yudelson ‘s book, absolutely summarizes what participants in a building undertaking are involved to make a LEED edifice. A LEED edifice is non merely a edifice that keeps the visible radiations off more, but instead a merchandise of the coaction of everyone involved, from transporting steel from a closer works to minimise transit pollution, to making a of course illuminated environment necessitating less manmade lighting, to even technology and planing more energy efficient air conditionin g and heating systems. There are four possible LEED scores a edifice can have, â€Å" Certified † , â€Å" Silver † , â€Å" Gold † , and â€Å" Platinum † . Certified being received by run intoing the basic demands, and Platinum being rewarded to the undertakings that meet the highest grade of demands. The four accomplishment degrees are the undermentioned: Certified: Greater than 40 per centum of the entire possible points. Silver: Greater than 50 per centum of the entire possible points. Gold: Greater than 60 per centum of the entire possible points. Platinum: Greater than 80 of the entire possible points. The undermentioned diagram by Yudelson, displays a per centum dislocation of the five chief classs considered by a LEED commissioner and how large of a function each drama. As you can see, the five chief classs considered are, indoor environmental quality, sustainable sites, H2O efficiency, energy and atmosphere, and stuffs and resources. From each of these classs, depending on how many points scored, the LEED committee will honor the edifice with a Certified, Silver, Gold, or Platinum seal of blessing. This chart is specifically for â€Å" New-Construction † undertakings, nevertheless, over 70 per centum of LEED enfranchisements are freshly constructed undertakings and therefore will be the makings largely discussed in this paper. The followers is an image from Yudelson of the LEED scorecard for the Oregon Health and Science University ‘s Center for Health and Healing which received a Platinum evaluation. As displayed, points are awarded for accomplishments under each of the five major classs, along with an extra class of Innovation and Design. For the class of â€Å" Sustainable Sites † the focal point is on commanding everything from alternate transit entree to light pollution decrease, to stormwater direction. Even the site choice is of import. The facet that jumps off the page here is the alternate transit methods. If the edifice design squad can make an evironment that encourages, bicycling to work with tonss of motorcycle racks and altering suites for the rockerss that can cut down a certain sum of autos on the route attached to that edifice. Besides by planing for coach, metro, and train terminuss, in or nearby the edifice, more people populating or working in the edifice may be more likely to utilize these alternate methods of transit and cut downing the figure of autos on the route. The thought here, is that since alternate fuel cars have non taken off in society, the chief or easiest manner to cut down toxic vehicle emanations is to cut down the figure of vehicles on the route by promoting the usage of mass public transit systems like metros, coachs and trains. Buildings play a large function in this by supplying the terminuss and Stationss convieniently to the populace. Along with the issue of transit, the site class besides contains the subjects of stormwater intervention, heat islands, and light pollution. By pull offing the stormwater displaced by the footmark of a edifice, an proprietor can derive two speedy points toward LEED enfranchisement. Whether it is a developing a manner to decently handle and perchance recycle stormwater within the edifice, or by restricting the sum of overflow created, there are many ways a edifice can be designed to forestall contaminated stormwater from making rivers or oceans. Buildings are besides monolithic heat generators which can be harmful to the environment. By cut downing the radiation of heat, another two speedy points are available. And eventually, the issue of light pollution is a serious job in big metropoliss, impacting the animate beings in the country, specifically birds. Buildings do non necessitate to go forth their visible radiations on all dark, it is a waste of energy every bit good as harmful to birds which are affected by non cognizing the difference between dark and twenty-four hours in the metropoliss. Gesture detectors are one possible solution, but nevertheless this is remedied, a LEED point is up for grabs here every bit good. Site Sustainability is the 2nd largest class and proves that if builders take the clip to use some of these factors into their construction, they can hold a resonant impact on the environment around them. The 2nd class is â€Å" Water Efficiency † . This is the smallest class every bit far as point handiness goes with merely five available, but is truly is an easy five points and should be done irrespective of a LEED certifaction end or non. There are three chief sub classs: Water efficient landscape gardening, advanced effluent engineerings, and H2O usage redution. Whether it is implementing a timed sprinkler system, or utilizing landscaping that does n't necessitate H2O such as crushed rock, there are ways to significantly cut down the sum of irrigation required for the landscape around a construction. Water usage redution starts in the bathrooms, with more efficient spigots and lavatories. While they are more expensive up forepart they are most likely to salvage the proprietor money in the long tally. All that is required for two points under the H2O usage decrease, is a 30 per centum lessening which is a batch in the large image, but it is really accomplishable. Particularl y for edifices that find solutions to the irrigation of their landscape gardening. The 3rd class is called â€Å" Energy and Atmosphere † . This country fundamentally focuses on happening ways to minimise the overall energy ingestion of the edifice through advanced design and engineering. Ten points are available merely by happening ways to optimise the edifice ‘s energy public presentation. There are many methods to travel approximately making this, whether it is better insularity, or more efficient HVAC systems. Another outstanding facet of this class is the execution of renewable energy within the construction. The most good known of these is solar and air current generated power through the usage of solar panels and air current turbines. By implementing these designs, non merely will you recieve points for their usage toward LEED enfranchisement, but they will besides assist optimise the energy public presentation of the edifice. Buildings use a batch of energy and and bring forth a batch of gases that contribute to the depletion of the ozone. By h appening ways to utilize eco friendly air conditioning units or plan the inside of the edifice to maintain it cool without air conditioning during the summer, will travel a long manner to assist the environment. The key to this class is to concentrate on ways to bring forth power utilizing green options. If the design squad can happen a manner to power a big part of the construction with solar panels or air current turbines, non merely will a immense part of LEED credits be available, but in the long tally the proprietor ‘s power costs will be a fraction of what they would hold been with out the green power options, all at the same clip being environmentally witting. The Energy and Atmosphere group is the largest group every bit far as LEED points are concerned. Because of this, it is perfectly important to derive a important sum of LEED credits from this group if you have any aspirations of developing a LEED certified construction. The following and 4th class is called â€Å" Materials and Resources † . This country fundamentally covers the pracitices used in the building of the edifice. While doing certain a edifice is environmentally friendly during it ‘s operation, the building of a edifice is a legitimate portion of a construction ‘s life rhythm and it is every spot of import to do certain this procedure is green every bit good. There are plentifulness of ways to carry through this undertaking. Of class they most likely are non traveling to be doing intercrossed bull dosers and Cranes any clip shortly, but there are ways to take down the C footmark of building. Examples include, godforsaken direction, usage of recycled stuffs, edifice and resource reuse, and the usage of local stuffs. The general subject of traveling green during building is fundamentally leave nil to waste. The more you can utilize of dismantled stuff for the new construction the better. And the proper allotment of stuff that needs to be disposed of the better. All contribute to a more environmentally firendly building site, along with those coveted LEED credits. Another really of import facet is the usage of local or regional stuffs. By utilizing stuffs that are manufactured locally or nearby, the shorter the distance they need to be trucked to the site hence cut downing the clip on the route of the trucks conveying stuff to the site. Less clip on the route for the trucks mean less fuel and less emanations by them for your occupation. This construct gives a good image of how far making a building undertaking ‘s C footmark is. It is non limited to merely the site itself but everything and everyone that contributes to it. The concluding chief classs of the LEED enfranchisement procedure is the â€Å" Indoor Environmental Quality. † Basically how the design of the interior effects the overall efficienty of the edifice. This includes everything from C dioxide monitoring throughout the construction, to the usage of low-emitting stuffs, to how much of the construction is lit by daytime. Low-emitting stuffs include stable pigments, sealers, rug and composite wood. These are easy points as most of these come criterion. However, one of the trickier facets will be run intoing the daytime and positions demands of 70 five and ninety per centum of the infinites seeing daytime. Most edifices have interior suites with multiple narratives which makes this undertaking near impossible. But with a dedicated designer and technology squad this could be achieved. Another country for points noticed is thermic comfort. Basically holding a system in topographic point that monitors the room temperatures and maintins a comfy temperature. This helps toward energy ingestion as the thermoregulators will guarantee the air conditioning or heat will non run longer than what is needed. The concluding class is â€Å" Innovation and Design Process † . This awards points for invention every bit far as building waste, H2O, and storm H2O is concerned. This encourages the design and development of new methods to construct a greener edifice that can be used in future undertakings. The intent of the LEED system is to acquire developers to come on toward more and more efficient designs and methods of edifice and operating constructions. Throughout each description, one might detect that many of them are linked or related to one another. This procedure can be described slightly like a Domino consequence. Once one end is achieved it can straight impact something in a comletely different class. For illustration, if daylight and positions is achieved for even 70 five per centum of infinites, a LEED recognition is received for that accomplishment, but the optimize energy public presentation end is besides positively affected. With a big part of the edifice seeing daylight a batch less power will be needed to illume the edifice. This is merely one illustration, nevertheless there are many. This is non to state that gaining adequate credits to accomplish a LEED accredation is an easy undertaking, but if a squad is dedicated to that end it is possible and one will happen that solutions to some ends help towards the completion of others. Now one might see all of this on paper and notice that to carry through a LEED certified undertaking, it is traveling to be a batch of excess money compared to an mean edifice that is non LEED certified. To some, cost may non be every bit of import as it is to others but when it comes down to it, the building industry is a concern, and proprietors are looking to do the largest net income possible from the money they put out to build a new edifice. This is a just statement and there is no denying LEED constructions so cost more ab initio to construct. The undermentioned diagram by Yudelson shows estimations for the sum of excess cost for each degree of LEED enfranchisement. As you can see, the potency added cost can be important, particularly if you want to develop a Platinum certain construction. Another barrier to the development of sustainable edifices is the of all time existing struggle between the Engineers and Architects. The changeless battle between Architects and Engineers is ever at that place, nevertheless some undertakings it is an easier coaction than others. LEED undertakings tend to make some struggle because what fits under the LEED standards may non be was the designer was after visually, or may non work the best structurally, so via medias must be made. However, if the proprietor and building director make it clear from the start that the aim is a LEED edifice and via media is promoted, so this barrier can normally be overcome. While the initial cost of funding a LEED edifice is higher than normal, there are legion benefits. Most of the benefits are long term or are instead irregular, nevertheless, all can significantly lend to the value of a LEED certified edifice over a non-certified edifice. The following tabular array from Yudelson ‘s book lists the general benefits: A twosome of good factors that jump out to an proprietor purely concerned about cost are: 1 ) the public-service corporation nest eggs are 30 to 50 % , 4 ) revenue enhancement benefits, 5 ) more competitory existent estate value. These three benefits make a good instance to convert an proprietor to desire to construct a LEED certified edifice. Sure you pay more up front, but it is a proved fact that people will pay more to populate or work in an environmentally friendly edifice that has a LEED seal of genuineness. Along with a higher belongings value, the cost to keep the construction is less. This is a direct merchandise of the money you put up forepart for green engineerings to derive the LEED enfranchisement. You paid for solar energy, so the direct consequence is a lower power measure, you paid for H2O efficiency so the H2O measure is lower. The same goes for all facets like warming and chilling. These nest eggs are cardinal, because modern constructions are made to last decennar ies, even beyond one hundred old ages. Because of this, the long term public-service corporation nest eggs, will salvage far more money than the sum saved up front avoiding the LEED path. And eventually, the revenue enhancement benefits from the production of this signifier of construction. The authorities is one of the largest advocates of traveling green and hence there are assorted revenue enhancement benefits and proprietor can take advantage of by making a LEED certified edifice. While these are merely three of the 14 proposed benefits, others such as fund elevation, and public dealingss are benefits that are highly valuable to many every bit good. It is clear that making environmentally friendly edifices is the hereafter of the building industry, it is merely a affair of acquiring builder ‘s and society to accept it as the norm, as opposed to a particular instance. The LEED enterprise is the most outstanding tool presently in usage to travel builders in that way. At the minute, in today ‘s building clime, it seems more hard to convert proprietors that LEED is the right manner to travel, merely because they cost more. However, the long term benefits are easy being accepted and more and more undertakings are traveling the LEED path. In the hereafter it is the end of the LEED enterprise to non keep builders to their checklist simply so they can acquire a trophy on their completed undertaking but because it is the right thing to make for the hereafter of the planet. The instance that the universe will stop if everyone does n't get down constructing LEED Platinum constructions is non being made here. But the statistics show that the building industry and edifices during operation create a really big C footmark that can surely be shrunk. So while car shapers develop H and electric autos, the building industry should work to doing LEED certified edifices the norm.

Benefits and Effectiveness of Accounting Essay

The research was based on two variables these are computerized accounting systems which comprise of definitions, components of computerized accounting software and benefits and limitation of computerized system and financial reporting which also comprises of definitions of financial reports, benefits and effectiveness of accounting system used at National Water and Sewerage Corporation. The study will enable management to understand the significance of preparing quality and reliable financial reports. The study will point out weakness in the accounting system which management needs to address. The Government of Malaysia through the Department of Accountant General (MDAG) has instructed MARA to implement the Standard Accounting System for Government Agencies (SAGA). This is a total Enterprise Resource Planning (ERP) System, developed based on web-based application and is using an accrual basis of accounting. The SAGA financial system enables its users, particularly the government agencies to close their accounts on a daily basis, monitor their daily financial activities as well as produce standardized financial reports to the stakeholders at any place and any time. However, upon completion of the SAGA financial system analysis, MARA identifies that the system could not cater all MARA business activities. Processes such as disbursement of scholarship and loans to students and entrepreneurs are not covered by the system. As such, MARA still has to maintain its existing databases and therefore made special request to the MDAG to exclude the implementation of SAGA while awaiting MARA ICT consultant’s recommendations on the development of a new MARA Total Information and Financial System. As a conclusion, the SAGA financial systems could not be used by MARA on its own. The end-users in MARA need to operate both, SAGA and its own systems at the same time. This situation could lead to users’ confusion if they are to use different type of system when updating certain type of financial transaction. This is because the end-user of MARA Computerized Accounting System could only utilized the SAGA Financial System just for ordinary operating expenditures whilst any disbursement of expenditure pertaining to subsidiary system, they still need to use the existing MARA Financial Systems. Consequently, internal controls and security functions may not be easily built in the systems. Concurrent use of both systems may affect job satisfaction and performance of the end-users. Introducing Computerized Accounting Information Systems in a Developing Nation: Egyptian International Motors This study aims to assess the implementation of accounting information system on a company in a developing nation. To answer this question this manuscript attempts to do the following: (1) identify the reasons for the shift to an automated system and the main goals that the company aim to achieve form this shift, (2) determine the company’s strategic decisions like choices between outsourcing versus in-house development, and ready made packages versus tailor made software, (3) describe the steps of implementation, (4) understand the reaction of the employees to the new automated system, (5) study the required changes on the organizational chart and human resources qualifications that are required, (6) recognize the problems that the company met during the process, (6) point the advantages of the shift to the automated system. A computerized accounting System provides many advantages over manual systems, for example entries do not have to be recorded in multiple ledgers so as to fulfill the cardinal rules of financial reporting.A single entry is made and the system will populate all the appropriate corresponding accounts automatically. Computerized accounting also makes it possible for people in other departments,not just accounting to enter data.It does not require avast amount of accounting knowledge for a payroll clerk to enter wages details into the accounts,a basic understanding of how to use the system is sufficient The study intends to find out the effect of a computerized accounting system on the quality of financial reports generated by an organization. To examine the effect of computerize accounting systems quality financial reporting. To determine the challenges encountere by organizations before and after implementing a computerized accounting system. To identify strategies/measures of ensuring quality financial reporting. An accounting system is part of the organisation’s management information system therefore a good or decent accounting system must be able to produce reports like trial balance, aged debtors and aged creditors. Accounting systems must provide data that should enable the production of management accounts, statutory accounts and must also assist the managers and accountants in discharging their stewardship roles. Production Of Accounts A good system should enable the firm to produce its management reports and management accounts at short notice. This will enable the organisation to monitor performance, to take decisions quickly and to make decision based on objective and verifiable information. Audit Trail Audit trail is very important as it will enable auditors and senior managers to monitor transactions entered in the accounting system and this will ensure that there is information integrity. A good system should document the changes that have been made in the system, who made the changes and it should also be able to track what was changed. Compatibility With Other Programmes A strong characteristic of a good accounting system is that it must be compatible with other systems. For example, it should easily be configurable so that it can communicate with other programmes like Excel or Crystal. An accounting system should be able to export transactions and reports into Excel and it should allow data and transactions to be imported from an external source. This will lead to time savings as there will be no need to duplicate a role or process. Error Detection If an accounting system does not dictate errors then it is not a good accounting package as it is failing to perform a basic functionality. An accounting package should decline to post transactions that do not balance for example the total debits should equal the total credits and if this is not the case, then the accounting system should automatically flag this error. Internal Controls Internal controls are the eyes and ears of the organisation and a good accounting system should embed these internal controls into the system. Internal controls enable prevention and detection of fraud and error. An accounting system should enable internal control tools like segregation of duties, reconciliations and account allocations. A good accounting system should not allow users to delete data that has been posted into the system. Manual Vs Computerized Accounting Computerized accounting systems provide more benefits than manual ones, allowing for more accurate calculations, in less time. Compared to manual accounting, with a computerized system errors are far less common, eliminating human error. And with accounting programs that are industry-specific, you can benefit from various preset templates for your general ledger, saving more time. You can store virtually endless information, without any trouble at all. And if you later want to review financial information from several years ago, with a computerized accounting system you can do it easily, while with a manual one you would have to sort through stacks of paper ledgers. Bottom line, both systems may be useful to some extent. But for more accurate bookkeeping and increased efficiency, a computerized accounting system seems to have more advantages. You can find several free versions online, as well as more proficient accounting software available for purchase. Search online for such accounting systems, read about their features and decide which one would be better for your particular business needs. Although they will not allow you to physically handle the ledgers, it will provide a better accounting solution. The advantages of Computerized Accounting seem to be unknown by business owners and individuals who are in doubt of purchasing Accounting Software. Accounting Software has been a trend nowadays. With the vast Computerized System Providers and wide range of versions to choose from, Accounting System has evolved to be one of the trends in information technology. Computerized Systems are designed to create more value in Financial Accounting. Value can be relayed in terms of speed, accuracy and reliability of accounting data. With Computerized System, invoices can be transmitted in an instant through email; inventories are appropriately monitored; and disbursements are tracked for payments to be done before due dates. It helps Bookkeepers to reduce manual activities. When transactions are entered in the Accounting System, automatic entries are posted to generate data needed for financial reporting. Accounting Software enables Bookkeepers and Accountants to adjust necessary accounts to reflect the correct amount of each Account. Computerized Accounting allows Accountants to trace erroneous data and entry in a creative and organized manner through the help of summaries, list of accounts and original entries. Article Source: http://EzineArticles.com/?expert=Jason_Tsang Article Source: http://EzineArticles.com/7017983 Computers are extensively used in accounting and there are multitude of computer software for Accounting, MIS, CRM. HiTech Financial Accounting is one such software which has been customized for users in many segments in business and services. Payroll accounting was the first commercial area to become widely computerized. The calculation of wages or salaries involves a number of variables which relate to the personal details of each employee, such as gross pay or rate for the job, individual deductions, tax liabilities of the employees and so on. These facts can be retained in the computers and processed every month of produce pay slips for the employees. The computer helps to exercise the type of stock control needed by the organization. It up to dates the sales and purchases records, determines optimum re-order levels for different items and prints out the stock lists when desired. The system can be so designed that it triggers orders when stock level reaches order point for variou s material items; tests those item which are slow moving or gives list for over stock items. Programming can be done for any sales accounting system. The computer will pin point defaulting debtors, determine the right limit for credit for each debtor and maintain stores ledger. Costing and budgetary control can be affected through the computer, the computer will point out the variations from the planned performance.The computer also helps greatly in production planning and control. It is possible that scheduling of the work may become necessary due to break downs etc. A new critical path may have to be worked out. A critical path is the shortest path to be followed in production to achieve production objectives. The computer helps the management lay down this new critical path. The increasing competition and the highly demands of globalization, Malaysia government attempt for Small Medium Enterprise, SME for the development of innovative, competitive with high technology. Computerized accounting system (CAS) adoption may be decisive factor for an organization to be success and also to survive. This research project which aimed to investigate SME practice of CAS and to identify the factor affecting the adoption among SMEs in Melaka. A survey was carried out through a set of questionnaires to examine the CEO Innovativeness Factors Scale, Perceive Usefulness Factors Scale, Perceive Ease of Use Factors Scale and Business Competitiveness. The sample selected comprised of CEOs of SMEs in three districts in Melaka, namely Melaka Tengah, Alor Gajah and Jasin. The data gathered were coded and analyzed using descriptive statistics, linear regression analysis, Pearson Correlation analysis and Analysis of Variance (ANOVA).This study reveals that CAS adoption rate in SMEs in Melaka is high. Results from the analysis also shown the significant of independent variables and proved the relationships have been substantiated to the dependent variable which contribute to the usage of CAS adoption between SMEs in Melaka. The findings indicate that CEO innovativeness; perceive ease of use and business competitiveness negatively correlated to the adoption of CAS. Results reveals that only perceive usefulness are significantly positive correlated to CAS adoption. Therefore it can be deduced that adoption of CAS among SMEs in Melaka is caused by its usefulness. The findings reveal that types of business and business location influence the adoption of CAS. However, size (paid up capital, sales turnover and number of employee) do not influence the adopter. Results also indicate that CEO literacy on ICT, accounting and CAS has influence the responded CEO to adopt CAS in their business. However, the advantages by using the accounting systems software were not fully utilized by CAS adopters. http://www.ccsenet.org/journal/index.php/ijbm/article/view/18273

Critique for a Quantitative Research Article Paper

Critique for a Quantitative Article - Research Paper Example Because each instrument has both merits and demerits, a researcher has to choose only appropriate tool to apply in his/her study. This paper reviews an article that describes evaluation study of an Advance Care Plan (ACP) in the Residential Aged Care Facility (RACF). The evaluation follows implementation of various strategies to improve outcomes of ACP. In-depth Review of the Article Introduction Section Purpose of the â€Å"Advanced Care Planning: How does current practice compare with best practice† study is clearly explained. The author of the article, Elizabeth van der Spek, explains that the study is a post-implementation audit to determine whether ACP outcomes have actually improved. In the abstract section, the author says that after the Getting Research Into Practice (GRIP) phase of the project, it was necessary to evaluate effectiveness of strategies implemented. Main problem of the study was, thus, determining whether GRIP really had an effect in the RACF. The author exhaustively gives details of what she is doing. As a proof, the author, in the background section, introduces her subject by comprehensively discussing importance of planning for end of an individual’s life. ... However, after the GRIP phase, there is need to check whether the shortcomings have been eliminated. In page two, the author include an audit question to reveal what the study attempts to answer. Through the question, the author generates her study variables. Three types of variables are used; specific GRIP strategy, specific post-implementation ACP outcome, and standard ACP outcomes. Based on findings of the study and using similar variables, the study can effectively be used to solve any clinical problem. Literature review, Theoretical Framework, Study Hypotheses In literature review, the author carefully introduces the concept of planning for end of a person’s life. As basis of the study, the author uncovers significance of â€Å"End-life wishes.† Spek, thus, did a wide research about her study topic. However, the author does not clearly relate her study with previous studies. In fact, the study does not quote a similar research that had studied ACP. Consequently, th e author does not describe literature gaps. That is, the study is geared towards improving services of RACF and not filling any literature gap. Theoretically, no plain study rationale is stated. Based on this fact, the entire project can be nullified. Ambiguity of the study is also evident in forming hypotheses. The study is a comparative research but no postulate is made about possible outcome of ACP in the facility. Because of vagueness of hypotheses, the study does not allow easy testing procedures. Methodology Even though three classes of variables are used in the study, they are, nevertheless, not easily measurable. The strategies are considered as independent variables, which after implementations, lead to a change in the

Films Essay Example | Topics and Well Written Essays - 750 words

Films - Essay Example Despite living in an isolated region, she finds a haven in the region and makes a feast out of the catch from the sea (Betts, 35)."The waters gonna rise up so high, aint gonna be no Bathtub," she states, "just a whole buncha water" (Betts, 35). Hush puppy exhibits warmth and love to her environment and she is ever vibrant despite the imminent hard life observable for the general viewing of the movie. Similar to Hushpuppy, Duncan in â€Å"The Way, Way Back,† exposes traits of a hero. The movie exhibits a hazy and bittersweet tone or mood with reference to the recollection that shown in the month of July humidity. Duncan in the The Way Way Back is typically a young boy at the age of 14 years, goes to summer season getaway with his mother Pam (Toni Collette), and her romantic lover, Trent (Hauge & Michael, 132). Pam recognizes solely Trent’s great factors, while Trent creates hurdles for Duncan while at the beach which eventually prompts Duncan desire to run away from the beach. Following cycling of his bike Duncan locates a water park referred to as Water Wizz where he ultimately meets reckless Owen who is the owner of the park. Duncan secures a job from Owen at that point leaving his home challenges at away and further establishes warm relationship with Owen and a girl by the name Susanna. Duncan dislike for Trent is backed by the realization by Pam that Trent had b een unfaithful to her. Towards the end of the movie, Duncan triumphs over Trent as the preferred by Pam. Duncan grows into a man with self confidence and brave kind of self worth. Duncan undergoes critical challenges in the film as at one point he suffers the strikes of Trent. The neglect of a mother and consistent mistreatment mother’s boy friend facilitates the sculpturing of the future of Duncan. Duncan is also exposed to extreme conditions of exposure to sexual contents. At one point Duncan questions him,

Earned Value & Forecasting Essay Example | Topics and Well Written Essays - 750 words

Earned Value & Forecasting - Essay Example The budgeted cost of work performed at end of period 8 comes out to be $868,000. The same is shown in Table 1. Cost Variance (CV) can be calculated as the difference between budgeted cost and actual cost of work performed which is equal to $(868,000-1,005,000) i.e. - $137,000. A negative cost variance here implies that the project is over-budget by the end of period 8. The Cost Performance Index (CPI) is given by the ratio of budgeted cost of work performed to the actual cost of work performed i.e. (868,000/1,005,000) which is equal to .86. As the Cost Performance Index is less than 1, it again implies that the project is over-budget. Schedule Variance (SV) can be found out as the difference between budgeted cost of work performed and the budgeted cost of work scheduled till the end of period 8 which is equal to $(868,000-955,000) i.e. - $87000. A negative schedule variance here implies that the project is behind schedule by the end of period 8. The Schedule Performance Index (SPI) i s given by the ratio of budgeted cost of work performed to the budgeted cost of work scheduled i.e. (868,000/955,000) which is equal to .91. As the Schedule Performance Index is less than 1, it gain implies that the project is behind schedule. ... 500000 1.3.2 60000 80 48000 1.4.1 120000 0 0 1.4.2 40000 50 0 1.4.3 75000 100 75000 1.5.2 15000 20 0 1.5.3 30000 0 0 1.6.1 45000 20 0 1.6.2 60000 50 0 1.6.3 30000 0 0 1.6.4 25000 0 0 Total 124500 (BAC) 868000 (BCWP/EV) The planned percentage of work completed can be calculated by dividing the planned work completed (in terms of number of periods) by the total work (in terms of number of periods). The total work periods can be calculated by adding the planned durations of each activity. This comes out as 26 periods. The planned work periods can be calculated by multiplying the planned percent of work completed for each activity by its planned duration. This is equal to 15. Hence, the planned percent of work completed is equal to 15/26 i.e. 57.7%. Similarly, the actual percent of work completed is computed as the ratio of actual work completed (in terms of number of periods) to the total work (in terms of number of periods). The actual work periods are calculated as 15.2 in the same fa shion as for planned work periods. The actual percent of work completed, therefore, comes out as 15.2/26 i.e. 58.46%. The percent cost completed is simply defined as the ratio of actual cost incurred till end of period 8 to the total planned cost of the project i.e. (1,005,000/1,245,000) which comes out as 80.72% Table 2: Calculating percent task completion Task Duration Actual Percentage of work completed at end of period 8 Actual work completed (in periods) at end of period 8 Planned percentage of work completed at end of period 8 Planned work completed (in periods) at end of period 8 1.2.1 3 100 3 100 3 1.2.2 1 100 1 100 1 1.2.3 2 100 2 100 2 1.3.1 3 100 3 100 3 1.3.2 2 80 1.6 100 2 1.4.1 3 0 0 66.66666667 2 1.4.2 1 50 0.5 0 0 1.4.3 3 100 3 66.66666667 2 1.5.2 1 20 0.2 0 0 1.5.3 2 0 0 0

Sociology Research Paper Example | Topics and Well Written Essays - 250 words - 4

Sociology - Research Paper Example History can show the dangers of ethnocentrism. The Third Reich is an extreme example of ethnocentrism. Hitler felt the way to protect his Aryan race was to kill inferior races. The genocide in Rwanda committed by the Hutus against the Tutsis is another extreme example of ethnocentrism. Slavery was a form of ethnocentrism. Today examples of ethnocentrism are white supremacist and radical Islam. These groups are at war with all other cultures. In order to protect their superior culture, ethnocentrism believers fight all other groups. The dangers of ethnocentrism are the reasons for social integration. Due to modern technology, war, and population growth, the world is shrinking. Large chunks of one culture or people are becoming less common. Unless living in an isolated location, where one never leaves and others do not visit, individuals will encounter different cultures during their lifespan. Especially in America, where many cultures live, work, and make up communities, the need for social integration is essential. More social integration will lessen the violence, discrimination, and verbal aggression between cultures. The less violence in between races will help communities to get along and reduce hate

Human Rights According to Adolf Hitler Essay Example | Topics and Well Written Essays - 2500 words

Human Rights According to Adolf Hitler - Essay Example The Napoleonic France and Nazi Germany depict authorities that struggled to their death as new states were born. This paper will therefore compare and contrast excerpts from Hitler’s speech and French national assembly declaration of human rights. The definition of human rights has raised numerous controversies in the new era of democracies (Docker 121). It is evident that every regime has its own definition of human rights. In addition, different countries or governments cannot share their ideologies concerning human rights. For instance, the current wars in Afghanistan and Iraq were initiated in the disguise of human rights. According to the Americans, toppling authoritarian Taliban led regime was a way of promoting human rights in Afghanistan. However, the move might not have had a similar implication to the Afghan people. Similarly, the two excerpts demonstrate the conflicting views of human rights according to Hitler and the French national assembly declaration of man and human rights. According to Adolf Hitler, human right should be an aspect of survival. Thus, every individual should struggle to ensure that he or she lives according to his own definition of human rights. Hitler believed that â€Å"The fundamental motif [theme] through all the centuries has been the principle that force and power are the determining factors... This indicates that citizens need to understand their rights for the government to be able to implement human rights on its citizens. According to the extract on the French national assembly human rights declaration, â€Å"the assembly was organized believing that ignorance, neglect or contempt of the rights of man is the main cause of public misfortune.† This indicates that the French believed in the self-made human rights while the Nazi Germans believed in a regime sustained human rights. Hitler’s’ elimination of the Jewish people was inspired by his definition of human rights (Quist-Adade web). His involvement in World War I was a symbol of his devotion to the human rights of the Germans. Although Hitler came into power through democratic elections, he did not believe that the people had the rights to choose their leaders through elections. His support for a democratic election was a scheme to gain control of the country. After gaining power, Hitler imposed a dictatorial authority over Germany until his death in April 1945. Hitler’s speech indicates his resistance towards democracy. In fact, Hitler can be described as a symbol of anti-democracy. On the other hand, the French national assembly of human right supports democracy. The assembly supports a people driven democracy or democracy that is based on people’s understanding of their human rights. On the other hand, Hitler considered the regime as the paramount determinant of human right. Thus, a regime has the right to impose its own definition of democracy on the people. However, from the French national assembly on human rights, the citizens are vital in the formation of a government. Thus â€Å" they saw government as a creation of the people, when the social contract had been broken, then the

How Walmart as a brand uses social media, newsletters, and online Term Paper - 2

How Walmart as a brand uses social media, newsletters, and online selling propositions in persuading their customers - Term Paper Example This research will begin with the statement that in contemporary business within the globalized world, effective marketing is inevitable. Most successful companies employ proper use of internet marketing to explore and maintain market share within the globalized world. For instance, large companies use Internet marketing in advertising their products and services to the entire world market. Internet marketing is a fundamental form of promoting and selling products to consumers. Firms using the internet as a marketing tool can collect information from consumers that help in improving their product and services. Moreover, the cost of production is lowered and managing competition becomes easy. It is crucial for a brand to possess a unique social media strategy in persuading consumers. Using the main networks, the brands can focus on the interests of the customers and make decisions on improving quality of products and services. Wal-Mart brand uses Facebook as a social media platform fo r marketing. Consequently, the company has developed the various timeline and web pages for customers to join. Facebook pages allow the company to interact directly with customers hence attracting many customers. Moreover, Facebook pages allow Walmart to launch new products to customers and provide guidelines on how to use the products. Furthermore, Walmart provides pictures of the products which help in winning customers’ loyalty and building brand image. Positive comments and many likes in the updates posted by Walmart further advertise the products to many other web users. In addition, Walmart uses many  Twitter handles to post products, discussing emerging issues on the products and answering customers’ requests.

Failed states Case Study Example | Topics and Well Written Essays - 8500 words

Failed states - Case Study Example political goods' for its citizens (nil capacity)'Sovereign territorial state that is no longer sovereign in areas that it claims to rule'Claimants to rule fail to exercise clear priority over other groups in territories". No laws, violence throughout, the disappearance of law, education, healthcare, and border control, and political conflicts are ways that we typically measure state failure. Central state authority does not exist, or has failed, for years. "State failure is a new label that encompasses a range of severe political conflicts and regime crises exemplified by macro-societal events such as those Failed States 4 that occurred in Somalia, Bosnia, Liberia, and Democratic Republic of Congo (Zaire) in the 1990s ("Rebuilding Failed & Defeated States, n.d.). Other factors that are included in the measurement of a failed state are civil conflicts, conflicts amongst other countries, high infant deaths, types of regime, quality of life, material possessions/things, low trade, and the well being of its citizens. After analyzing the literature, it seems that the centre of the definition of a failed state is a failing internal structure. Having looked in the dictionary and the encylycopaedia, the meaning for failed states is not clear. Whilst there are many opinions, definitions, and literature on the topic, the definition and causes of a failed state cannot be so clearly stated or defined. It is rather complex. Grant (2004) declares, "'The predicate question-what is a 'failed state''-by no means lends itself to an easy answer. Like many questions involving statehood and international relations, the question of the failed state becomes more complicated the further one moves from the...This would be akin to a focus on WW2's endgame (Hiroshima) while ignoring everything that went on between 1939 and 1945. Failed states provide unrestricted training grounds for multiple global guerrilla groups. They offer numerous financial opportunities (for example, half of Afghanistan's GDP is opium -- in contrast to the anti-drug Taliban). Global guerrillas are unbounded by rogue state policies and are free to innovate. Internal violence can accelerate recruitment and the development of tactical innovations. Unrestricted borders allow global guerrillas to infiltrate adjacent states (and given ubiquitous air transportation, everywhere in the world). Failed states will provide the perfect platforms for the destabilization of Saudi Arabia, Pakistan, and Egypt. Failed states have simply done just that, which is failed. They have proven not to be successful, have proven to be sufficient and lacking, and have declined. Many so-called failed states have not met this description and have not Weak states have these, or some of these in place but are simply that-weak. They have not proven failure and lack of success. It is not done and finished with weak states. Therefore, if you really look at "failed" states, they are actually weakened.

Assignment Example | Topics and Well Written Essays - 750 words - 118

Assignment Example The banking system has played an important role in home mortgages due to their role that has grown in turn in home mortgages to securities. The chain involved in securitization starts with origination of mortgages and sold to one or more financial entities before they end up to mortgage loans that are sold to investors. The value of security obtain is related to value of mortgage loans that are used to back up security paid with interest. The backed up security is paid in interest and those that own homes pay the mortgage loans. The process and stages that shadow banking is involved leads to generation of finance. This makes the process essential in generation of finances. There are differences and similarities that occur in the banks. In similarity, both the banks are seen to perform credit intermediation. However, there are varied differences that occur in the banks. In convention al banks, there is occurrence under the same roof while in shadow banking, giving out of credits occurs through a chain of entities. This makes operation in shadow banking to be more complex than in conventional banks. Another difference that can be noted between the two banks is on the regulations that are involved in acquiring credit. Conventional banks are strictly regulated having access to central bank funding and deposit insurance schemes. In shadow banks, there is little or no regulation since they are not able to access funding from central banks. Shadow banking is also based on wholesale funding. The difference that the banks have on the source of funding also is brought out in conventional banking. Universal banking refers to the condition in which are allowed to give a variety of services to their customers. The banks are not just restricted to provision of services related to loans and savings but also involved in in other services such as investments. In baking category there is banking which considers different aspects.

Public Health of the Developing Country of South Africa Essay Example for Free

Public Health of the Developing Country of South Africa Essay Abstract Studies and statistics have put the cost of one year requirement of standard essential medicines needed for the treatment of AIDS at $ 4000 to $ 6000 in developing countries like South Africa. This cost puts the medicines out of the reach of most of the people infected by HIV in the developing countries. In order to make the medicines available to all the needy people the cost should have been at least 95 percent less. The exorbitant price is because of the cost of the patents. The drugs protected by the intellectual property rights were required to treat diseases like Tuberculosis, in addition to the treatments of HIV/AIDS. Such drugs also included Hepatitis-B Vaccine. There has been a continuous criticism by the social activists and other public health associations, of the action by the World Trade Organization in making the developing countries implement the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement which deals with the protection of Intellectual Property rights relating to the essential drugs. They have also been condemning the attitude of the multinational companies in indulging in excessive lobbying to insist on the implementation of the IP rights protection which will have the effect of enhancing their earnings by charging exorbitant prices for the drugs and for putting the essential drugs and health care beyond the affordability of scores of people in the developing nations including South Africa. However under such circumstances the relationship between the government of South Africa and the international pharmaceutical companies had not been a conducive one – thanks to the implementation of the provisions of TRIPS Agreement. On the decision of the South African Government to pass the Medicines and Related Substances Amendment Act in the year 1997, 39 drug companies joined to initiate legal action against the government. The plea of the drug companies is that the Act gave too much freedom of action to the Health Minister and he acted beyond the legitimate interpretation of TRIPS. It was the endeavour of South Africa to make life saving drugs available at affordable prices. The country wanted to effectively utilize the compulsory licensing opportunities opened by TRIPS so that the prices of the drugs could be put under check. But since the action of the government posed a threat to the earning capacity of the international pharmaceutical companies they went to the extent of entering into litigation with the government of South Africa. Introduction TRIPS (Trade Related Aspects of Intellectual Property Rights) under the authority of the WTO were founded to protect worldwide intellectual property rights. The agreements, governing not only more general intellectual property rights but also those of the pharmaceutical industry, are fairly stringent causing many problems for developing countries especially South Africa which is being ravaged by epidemics which includes AIDS. According to a statistical survey by United Nations[1] 20 percent of the adult population in South Africa tests positive for HIV. The impact of the disease is such that the more than half a million children have been declared orphans. It is also reported that HIV/AIDS related diseases expect to reduce the average life expectancy in South Africa by 20 years in the year 2010. Therefore it can be inferred that the provision of treatment of HIV/AIDS in South Africa is a high priority issue[2]. It has been necessary for South Africa to circumvent part of the TRIPS agreements in an effort to protect its population.   AIDS is taking great toll of the country leaving families without parents and health care hospitals totally unable to cope. The United States currently insists on the TRIPS agreement being strictly adhered to and seems unable, or unwilling, to find a way to help the developing nations with this problem. There have been some efforts made to help them in this respect, for example compulsory licensing and parallel pricing and these methods will be examined in a later section. The negotiation of the TRIPS Agreement has been construed as one that was forcibly introduced by the developing countries against the objection of many of the developing nations. The industrial lobbies (multinational and transnational corporations) have convinced the governments of the developed countries to link the international trade with Intellectual Property Rights (IPR) so that the industrial advancement of the developing countries would be curtailed. This would automatically prevent imitation of technologies and increase the returns on research and development for the developed countries. Monopoly rights granted under IPR were mainly intended to deter the developing countries from advancing on the industrialization. Thus TRIPS Agreement and the protection of IPR have been used to ensure the comparative advantage of the developed countries in terms of the technological development. Under TRIPS countries like India, Brazil which manufactures generic medicines would not have the right to export such medicines with effect from 01 January 2005. This is so despite the fact that the importing countries do have the respective patents covering the drugs. Specifically the least developing countries have put a strong resistance to the requirements of TRIPS especially in the matter of granting the protection rights for the products and processes. While developing countries were required to implement the provisions within one year of reaching the Agreement, the developing countries were given time until the end of the year 2004. In the matter of protection of rights of pharmaceutical products the lease developing countries have been allowed to delay the implementation of TRIPS Agreement provisions till the year 2016. The peculiarity with the provisions of TRIPS is that it allows any country to override the patent right under certain specific circumstances by using the compulsory licensing procedure. For instance when there is a shortage of drugs or the prices of the drugs are too high to make them unaffordable the country can override the patent if the prescribed procedures are followed. This provision of TRIPS presupposes that all the countries do possess the required manufacturing facilities which enable them to use the provisions to produce generic medicines under extraordinary circumstances. But unfortunately many of the developing and least developing countries do not posses such facilities, and hence they would be left with shortage of such drugs. In addition they are also not allowed to import the generics from those countries that possess them. In any case these countries do not have enough power and administrative capabilities to invoke the TRIPS Agreement either due to the reason that they do not possess the know-how required to reengineer the drugs or they fear sanctions from the US and the West[3]. TRIPS Agreement under WTO The TRIPS Agreement is often thought of as one of the three â€Å"pillars† of the WTO (World Trade Organization), trade in goods and services being the other two.[4] TRIPS, initially part of GATT. But becoming part of the WTO brief, was founded to ensure that protection of intellectual property rights was not, of itself, an obstruction to trade and to increase cooperation between members. Under the TRIPS agreement each member state has an obligation to treat all other member states equally. The WTO negotiates between members and helps them to understand and carry out the rules and regulations they have signed up to. It also aids cooperation between members and acts as a watchdog to ensure that the agreement is adhered to. Marketing rights of a patent, when first applied for, are given for a period of 5 years or until the patent is finally approved (whichever is the shorter period) but even during this period members must comply with the rules and regulations as set out in Articles 3 and 4. Because of the nature of the agreement especially as regards pharmaceuticals, it was decided that minimum standards could be used, the USA prefers the higher standards but accepts the minimum as the developing world does not have the capacity to work to the higher standards at the present time. Public awareness of the serious issue of AIDS and other diseases has led to the belief   (by the WTO) that health must, in the final analysis, come before agreements since the spread of AIDS cannot be the sole responsibility of one country. In trying to bridge the gap between the pharmaceutical companies and the developing nations, TRIPS has endeavoured to bring the two sides together by allowing extensions to drugs’ patents but has also allowed some compulsory licensing. Article 3(a) under the TRIPS Agreement states that treatment of all members must be equal,   but Article 3(b) is a get-out clause and Article 4(b) states that all members are equal, unless an †¦agreement was entered into before the WTO agreement.   However, the Council for TRIPS must be informed of any non-observance of Article 3(a) under Article 3(b). The TRIPS Agreement ensures that members discharge their commitments to the World Intellectual Property Organisation (WIPO). Part of the United Nations WIPO was set up in 1974 specifically to direct international treaties and agreements. The Paris Convention on Industrial Property and the Berne Convention on Copyright, two of the major treaties have been brought under the TRIPS umbrella.   The former states that â€Å"members must comply with the obligations they have towards each other† and â€Å"nothing must stand in the way of such obligations†.  Ã‚   However, as noted, there is a get-out clause in cases of emergency which has to be acknowledged by members to the agreements. There is also an agreement that member countries monitor each other for infringements.   Most important in terms of worldwide health problems is Article 67 of TRIPS which states   that developed countries must assist developing countries with the development of their intellectual property rights, it states: â€Å"In order to facilitate the implementation of this Agreement developed country Members shall provide, on request and mutually agreed terms and conditions, technical and financial cooperation in favour of developing and least-developed country members† â€Å"Such cooperation shall include assistance in the preparation of laws and regulations on the protection and enforcement of intellectual property rights as well as on the prevention of their abuse, and shall include support regarding the establishment or reinforcement of domestic offices and agencies relevant to these matters, including the training of personnel.†Ã‚  Ã‚  Ã‚  Ã‚     Programmes to assist the developing nations have already been promoted and are being assisted by the WTO secretariat and WIPO. TRIPS Agreement in Relation to Medicines   Since most pharmaceutical research and development is carried out in developed countries the organisations involved feel that they should be better protected.   Most drugs cost millions and take years to test and develop before being allowed onto the market, the industry naturally want returns by way of profits on sales. AIDS medication has been a particularly important breakthrough since: ‘HIV infects an estimated 45 million persons worldwide†Ã‚   but there are also â€Å"†¦1.86 billion cases of infection with mycobacterium tuberculosis†[5] therefore, it is imperative that something be done to help alleviate this type of suffering which, with the ever growing number of tourists, should be the concern of not only those countries in which these epidemics are raging but every nation whose borders are open to travel from other countries. The TRIPS agreement, currently, seems to err on the side of the drugs’ companies, probably because they have such powerful lobbies and are part of the new world-wide elite of corporations which, according to Janet Dine, are increasingly importing their own ethics into the developing countries and virtually taking over, creating in the process an impoverished and unhealthy nation, they, the indigenous population have to take what is offered often at less than subsistence wages and become more dependant on the corporations who have moved into their countries in search of ever increasing profits. The money the corporations make from taking over in developing countries returns, not to the people of that region, but to their own countries.  Ã‚   With tax incentives and a population who take any work they can get to survive at the lowest rates offered, these Corporations appear to be fuelling a crisis in health for some of the poorest nations in the world.[6] Although The TRIPS agreement does allow for compulsory licensing in an emergency, each country must first negotiate with rights’ holders and must use those drugs obtained under such a license only for the emergency period and not for any commercial gain. Specific areas, such as South Africa, are going through a health crisis which needs the drugs already available to ameliorate it, however, in spite of clause 3(b), they are getting no further forward in their fight to help their citizens to overcome unprecedented death rates that the epidemics are producing. In spite of Articles 30/31, which allow for compulsory licensing, the poorest and least developed nations are fighting against the cost of the use of patents and the epidemics themselves. Compulsory licensing does not adequately cover the needs of such nations in   â€Å"sub-Saharan Africa since they do not have facilities to manufacture their own drugs.†[7] Protection of intellectual property is not part of the culture of many countries, nevertheless, the TRIPS Agreement was signed on 15th April 1994 by 117 nations. The agreement allows intellectual property rights to be â€Å"enforced by trade sanctions†[8] and, although some countries were not in complete agreement, international trade is vital to their economic growth so, however reluctantly, they signed.   Inhibitors, which have done much to control AIDS in the west, cost as much as $10.000 per head annually but international trade is the life blood of developing nations therefore they had little choice but to do so.[9] 4. TRIPS and Developing Countries It has been observed that implementing TRIPS Agreement and recognizing IPR on pharmaceutical products and processes would result in the following problems to the developing countries[10]: The minimum 20 years protection to the IPR would grant a virtual monopoly for a pharmaceutical company over its patented drug and the company would be able to charge exorbitant prices on the drugs without competition which in turn would keep the drug prices very high during the period of protection. It is also not possible to bring any generic equivalent into the market due to the TRIPS Agreement. This would deny the patients cheaper alternative drugs. The product and process patents provide for the protection of the product as well as the technology. Under the TRIPS Agreement the countries are given the right to make application for the protection of patent rights on drugs for a period extending up to twenty years. After the expiation of this period the countries can get the protection extended for further periods to the processes being employed in the manufacture of the drugs. This no doubt creates a monopoly situation on the drugs. Such protection also throw the domestic pharmaceutical producers in the developing countries out of market as they have to compete with large multinational pharmaceutical manufacturers which is not possible for small producers in the developing nations who use cheaper generic alternatives. Moreover such production may not be carried out by them during the 20 year protection period. Under TRIPS Agreement patent rights need to be granted irrespective of the fact that the products are imported or domestically manufactured[11]. This implies that the transnational corporations can supply global markets under the monopoly of patent rights even without producing any medicines in the developing countries by simply importing them into the developing countries. There will be no flow of technology or foreign direct investments into the developing countries as envisaged by the WTO However under Article 66 of the TRIPS the least developed countries were allowed to postpone the application of the provisions relating to the patents for a period of 10 years on specific application.[12] 5. Exceptions to the Patent Protection of Pharmaceuticals    Parallel importing – implying that the developing counties are allowed to import the drugs from the cheaper markets for resale in their respective countries and thereby lower the prices of drugs. Compulsory licensing – under compulsory licensing scheme, the government acting through the courts of law is empowered to provide a license in favor of a third party. Such license may be granted by the government even without the prior consent of the license holder. However the compulsory licensing can be resorted to in cases of national emergencies. The license may also be compulsorily transferred to a third party in case of an extremely emergent situation or where there are circumstances implying any anti-competitive movements by the manufacturers. The compulsory licensing is resorted to by the governments to make the drugs easily available to the poor and needy people at affordable costs. It also ensures that the patent holder is provided adequate compensation for use of the patent. 6. Public Health in South Africa and the Impact of TRIPS Agreement The need for cheaper drugs in South Africa can not be undermined. The impact of AIDS in the country poses the situation of an extreme emergency forcing the implementation TRIPS. The economy of South Africa is likely to get affected by a reduction of 1 percent every year because of the work force getting disintegrated. It is estimated that the life expectancy would be lowered to 50 years in 2010 from 70 years currently. These threats to the economy and population growth would as well be a threat to ‘peace and order’ situations in the country of South Africa[13]. In this context all the problems enumerated above for the developing nations have been faced by South Africa also. In addition when the government wanted to implement the Medicines and Related Substances Control Bill, the US Government vehemently objected to the passing of the law which allowed for parallel importing and compulsory licensing. However amidst lot of pressure on the government and the Parliament the South African government enacted the law in the year 1997.The pharmaceutical lobby backed by the transnational companies in the South Africa not only filed a suit against the promulgation of the law but also indulged in negotiations and threats   to the government to change its stand. The pressure was intense after the year 1997 when the South African government tried to implement a number of policy measures to lower the prices of drugs used in public health. â€Å"The SA policies have focused on such issues as mandatory generic drug substitution, restrictions on inappropriate marketing efforts, registration of generic versions of the cancer drug Paclitaxel (sold as Taxol by Bristol-Myers Squibb), parallel-imports, and compulsory licensing†[14]. It may be noted that despite Article 31 of the TRIPS Agreement that provides for the parallel importing and compulsory licensing the transnational pharmaceutical companies have vehemently opposed the attempts by developing countries like South Africa taking measures for implementing parallel importing and compulsory licensing as these practices would allow these countries to have their requirements of the medicines at cheaper prices which in turn would affect the profits of these transnational companies[15]. It was after the intervention of the AIDS activists and health activists that US came to an understanding in the issue. The government of South Africa insisted that it retains all the original provisions defending its position be retained. The government also wanted to make the fullest use of compulsory licensing and parallel importing which were considered as detrimental to the interests of the American Transnational Companies[16]. How American Corporations Control the Business World A- Business lobbies: Large and small businesses in the United States have been organised into various associations, for example Business Round Tables are national Associations which include membership of the Chief Executive Officers (CEOs) of all the most important trans-national companies and the National Chamber of Commerce includes all sizes of firms.[17] Round Tables have been in existence since 1972, the first was formed by forty-two of the (then) biggest and most important U.S. companies including banks, retailers, Insurance, transport and most of the utilities’ companies. They were designed to enable business to proceed without the destructive competitive basis of the business world. They were described as: â€Å"An association of chief executive officers who examine public issues that affect the economy and develop positions which seek to reflect sound economic and social principles. †¦ the Roundtable was founded in the belief that business executives should take an increased role in the continuing debates about public policy.†[18] The raison d’etre for these firms was the idea that ‘what ever is good for business is good for the American people’. They argued that, employees, purchasers, suppliers etc all have an interest in a business. These associations, they say, represent a cross section of the American public.[19] The idea that ‘what is good for business is good for America’ is patently nonsense since most people are in fact excluded from any rights in this elite world.  Ã‚   Employees have little or no say in the running of their firms and consumers must pay the prices asked, they do have the right ‘not to buy’ which is a somewhat negative view of the process of inclusiveness. David C Korten says that most of the memberships of the Round Tables are confined to white males over the age of 50 whose salaries are enormous. They do not, as claimed, consider that what is good for business is good for America but rather endeavour to maximise their own profits and those of their shareholders by seeking to globalise in areas where they can have an almost free hand to carry out their business practices almost unhindered by the laws of any country they move into. [20] Free Trade has long been an ideal of the American Corporate world which is why the Round Tables campaigned vigorously for the North American Free Trade Agreement (NAFTA and created USA-NAFTA to front their interests, the American public, nervous at so much control in so few hands, have been given country-wide blanket assurances through the media.   In spite of the fact that NAFTA was supposed to be a really broad church of interests it is really part of the elite Round Table Associations and has many representatives on advisory committees. The country might have been even more nervous if they had realised that at the time of the creation of these Round Tables the major companies were in fact laying aside their competitive differences to â€Å"reach a consensus on issues of social and economic policy for America†.[21] B- Influence of U.S. Democracy Janet Dine claims â€Å"no single idea is more deeply embedded in modern culture than the belief that economic growth is the key to meeting most important human needs, including alleviating poverty and protecting the environment† [22] which accounts for the greatest growth area in Washington being public relations firms. These firms work hard to protect the images of their corporate clients against a rising tide of discontent which is now manifesting itself throughout the world. It could be thought that they are fighting a losing battle but â€Å"the top fifty public relations firms billed over $1.7 billion dollars in 1991†[23] which gives rise to the question, why are these PR firms so necessary? There is probably no single answer to this question but very little news is given directly to the public without some corporate employee looking at the effect it will have, news and advertising, according to Korten, are almost synonymous.[24] The political system of America has greatly changed in the post war period of more general affluence. The Democratic party has lost its basic identity   the party of the people – as opposed to the Republicans who have always represented business and the wealthier side of the electorate – this being so the Democrats are far more dependant on the need to raise funds for their electioneering and have turned to the corporations who inevitably want quid pro quo for their donations. The mass media are heavily behind the elitist values of corporate America and the amount they are able to pay to PR firms to put across an extremely one-sided policy and both the leading parties needing the financial backing of corporate America, this, says David C Korten, â€Å"This is the sorry state of American democracy†.[25]   He says that voters tend to be seen as a passive homogeneous mass of potential customers who can be told not only what to buy but also what to think and feel.   What is worse, this idea of corporations is spreading, many trans-national companies rely heavily on the corporate idealism of what is good for them is good for the people they sell to.   Mexico and Japan both use those same American firms to tell their populations what they should think and feel and ultimately what they should buy. C- American Democracy   for Sale: â€Å"The Mexican government spent upwards of $25 million and hired many of the leading Washington lobbyists to support its campaign for NAFTA. †¦ Japanese corporations were spending an estimated $100 million a year on political lobbying in the United States and another $300 million building a nationwide grassroots political network to influence public opinion†. [26] Canada, Britain and the Netherlands’ governments employ public relations’ firms in America to help them lobby and draft laws that will be favourable to the business elites in their own countries. These companies try to sell the idea of ‘corporate libertarianism’ [27]which is supposed to allay the fears of those who have an idea that all is not well in the corporate world of business, it is possible to claim that these corporations are in fact in the act of ‘taking over the world’ and with the resources piling up behind them it could well happen in the not too distant future. The United States and Higher Levels of Protection. To add to this theme of a world take-over by corporate America, the signatories to TRIPS have begun to rethink intellectual property protection.[28] This is bad news for those under-developed countries which rely on drugs from the western world to protect their citizens from ravaging epidemics. Rosalyn S Park says: â€Å"Poor, developing nations have been most affected by the patent protection laws and resulting high drug prices, yet these nations also harbor the highest number of HIV-positive people. Consequently, the vast majority of people in need of HIV/AIDS medicines simply cannot afford them†. [29] In 2006 new protection laws will come into force which all members must adhere to. This will have a devastating effect on the millions of people in countries too poor to have their own drugs’ businesses, they will become more reliant upon those better protected, developed countries making vast profits from the countries least able to pay. Neither the USA nor the European Union appear greatly interested in aiding those countries with the greatest needs and the least ability to pay.   Admittedly concessions have been made as regards agricultural and textile concessions but this has been at the cost of allowing higher property rights which is a swings-and-round-a-bouts situation.   It would be much more useful to South Africa specifically and to the developing world in general, if the costs of patented drugs could be either brought down or, as a common sense gesture of good will, eliminated completely until such time as the AIDS epidemic was at least brought down to manageable proportions. In spite of â€Å"several different types of drugs on the market which help combat AIDS and AIDS related illnesses†[30] not enough are getting through to the developing countries as the multinationals are still insisting on not just the status quo as regards intellectual property rights but even higher levels.[31] They appear to be driven only by the profit motive and the perceived necessity for free trade paying little attention to the suffering caused in the developing world. Nor are they taking a long term view, highly contagious diseases are rife in the developing world, therefore, with the modern freedom of travel, no country can ever be safe from the same epidemics.   Even with modern drugs to combat them, new strains will develop, new drugs will have to be found and costs will escalate. Drugs now exist which allow people with AIDS to live a reasonably normal life including returning to work, it would in fact be in the interests of the drugs’ companies to allow South Africa to use them, dead people have no use for drugs nor anything else that the multi-nationals may wish to sell them. Conclusion The TRIPS Agreement was a milestone in patent protection of intellectual property rights and was considered to be a financial safeguard for research investment, however, it also had the effect of pricing some pharmaceuticals out of the reach of many nations most in need of the most recently patented medicines.   Before the TRIPS agreement, governments had been able to make compulsory licence orders to produce drugs at lower prices in their own countries, after the agreement, although still possible, it is much more difficult and thus more difficult to protect their citizens from the epidemics which are wreaking havoc in their countries. It is important to protect intellectual property rights but it is far more important to protect people’s lives but the balance currentlppears to be largely towards the greater protection of pharmaceutical industries. TRIPS allows compulsory licensing and parallel pricing but underdeveloped countries such as South Africa are being prevented from using them because of the threat of trade sanctions and trade is vital to their economies. It is necessary to protect peoples’ work and investment and research must be encouraged especially into life-threatening diseases. Corporations who invest time and money into producing drugs to cope with these scourges should reap the rewards of their labour.   However, many drugs’ companies are seeing such enormous returns on their investments that concessions should be made to underdeveloped countries which so desperately need the medications produced by these huge giants of industry. In spite of concessions in the TRIPS agreement, corporations do appear to be protected at the expense of people’s lives. Public health should be and is a priority in the west where governments can afford to buy the health of their citizens. Unfortunately, this is not the case in the poorer, less developed countries where governments are struggling to find ways to access drugs and yet to maintain a healthy trading relationship with the countries which hold the patents to these drugs. Good health is the basic right of every citizen of every country wherever possible. More goodwill is necessary on the part of the western world and America in particular to allow compulsory licensing and parallel pricing to be used without the threat of trade sanctions.  Ã‚   Epidemics do not respect borders, they can be carried by people to all corners the world, what was a third world problem yesterday is our problem today, world health is an issue that no country can ignore therefore although corporations must be allowed fair returns on their investments it must not be at the expense of world health. It is quite apparent that TRIPS Agreement has not taken into account the public health needs of the developing nations while formulating the clauses relating to the protection of IPR in respect of pharmaceutical needs. The Agreement has not specified any particular obligations towards those governments granting the IPR for pharmaceutical products. The Agreement has also not considered the need for public health in the developing countries and grossly ignored the interests of the patients of these countries. There are a number of factors that the developing countries have to take into account including the implication of the TRIPS Agreement and the patent protection under the Agreement in the provision of medical facilities and adequate public health to the people of the respective developing countries. â€Å"At the end of the day it must be recognized that the poorer residents of the world’s least affluent nations cannot pay even the marginal cost of drugs that might save their lives or permit them to become productive workers†[32]. Bibliography    Conceicao Soares (2007)‘The HIV/AIDS crisis and corporate moral responsibility in the light of the Levinasian notions of proximity and the Third’ Business Ethics: A European Review Vol. 16 No 3 p 280 David C Korten, When Corporations Rule the World, Earthscan Publication Ltd. London, p.144 Duane Nash, â€Å"†¦VI, Foreign International Law South Africa’s Medicines and Related Substances Control Amendment Act of 1997† 15 Berkeley Tech. L J. 485(lexis) Fact Sheet ‘Developing Countries’ Transition Periods’ http://www.wto.org/english/tratop_e/trips_e/factsheet_pharm04_e.htm#pharmsandags p1 F.M. Scherer and Jayashree Watal ‘Post-Trips Options for Access to Patented Medicines in Developing Nations’ Journal of International Economic Law (2002) p 939 Janet Dine, The Governance of Corporate Groups, Cambridge University Press, 2000.p.157 J H Reichman, The TRIPS Agreement Comes of Age: Conflict or Cooperation with the Developing Countries? P.6 John A. Harrelson, â€Å" IV. Note: Trips, Pharmaceutical Patents, and the HIV/AIDS Crisis: Finding the Proper Balance Between Intellectual Property Rights and Compassion† 7 Wid. L. Symp. J . 175(lexis) Kara M. Bombach ‘The South African Medicines and Related Substances Control Amendment Bill and TRIPS’ http://academic.udayton.edu/health/06world/africa01.htm p1 Lisa Foreman (2007)‘Trade Rules, Intellectual Property and the Right to Health’ Comparative Program in Health and Society Munk Centre for International Studies University of Toronto Ethics International Affairs Vol. 21 No3 p 342 Louise Sylvan ‘TRIPS: Protecting Intellectual Property or Putting Profits Before People’ Online Opinion http://www.onlineopinion.com.au/view.asp?article=1968   p1 Medecins sans Frontieres (1999) Access to HIV/AIDS medicines in Thailand, Medecins sans Frontieres Report to the National AIDS Committee of Thailand, August 1999, MSF website, www.accessmed-msf.org/msf/accessmed/accessmed.nsf/html/4DTS2? Open Document.p1 N.B. Zaveri (1999) Success often comes to those who dare and act, paper presented at Brainstorming Workshop on WTO Agreements and Peoples Concerns, New Delhi, Oct/Nov 1999 p1 Patric Bond ‘US Policy toward South Africa and Access to Pharmaceutical Drugs’ Alternative Information and Development Centre http://www.aidc.org.za/?q=book/view/156 p1 Ross Brennan and Paul Baines (2005) ‘Is there a morally right price for anti-retroviral drugs in the developing world’ Business Ethics: A European Review Vol. 15 No 1 p32 Rosalyn S Park, The International Drug Industry: What the Future Holds for South Africa’s HIV/AIDS Patients, Minnesota Journal of Global Trade, p.3 Z. Mirza (1999) WTO/TRIPS, pharmaceuticals and health: impacts and strategies, The Networks Drug Bulletin, Sept-Dec 1999, Vol. 8, No. 5/6, Association for Rational Use of Medication in Pakistan p 27       [1] United Nations (2004) Report on the Global AIDS Epidemic. Geneva: United Nations [2] Ross Brennan and Paul Baines (2005) ‘Is there a morally right price for anti-retroviral drugs in the developing world’ Business Ethics: A European Review Vol. 15 No 1 p 32 [3] Conceicao Soares (2007)‘The HIV/AIDS crisis and corporate moral responsibility in the light of the Levinasian notions of proximity and the Third’ Business Ethics: A European Review Vol. 16 No 3 p 280 [4] www.wto.org (Frequently asked questions about TRIPS in the WTO). [5] Duane Nash, â€Å"†¦VI, Foreigh International Law South Africa’s Medicines and Related Substances Control Amendment Act of 1997† 15 Berkeley Tech. L J. 485(lexis) [6] Janet Dine, The Governance of Corporate Groups, Cambridge University Press, 2000.p.157 [7] John A. Harrelson, â€Å" IV. Note: Trips, Pharmaceutical Patents, and the HIV/AIDS Crisis: Finding the Proper Balance Between Intellectual Property Rights and Compassion† 7 Wid. L. Symp. J . 175(lexis) [8] Ibid [9] Ibid [10] Z. Mirza (1999) WTO/TRIPS, pharmaceuticals and health: impacts and strategies, The Networks Drug Bulletin, Sept-Dec 1999, Vol. 8, No. 5/6, Association for Rational Use of Medication in Pakistan p 27 [11] Medecins sans Frontieres (1999) Access to HIV/AIDS medicines in Thailand, Medecins sans Frontieres Report to the National AIDS Committee of Thailand, August 1999, MSF website, www.accessmed-msf.org/msf/accessmed/accessmed.nsf/html/4DTS2? Open Document. p1 [12] Fact Sheet ‘Developing Countries’ Transition Periods’ http://www.wto.org/english/tratop_e/trips_e/factsheet_pharm04_e.htm#pharmsandags p1 [13] Kara M. Bombach ‘The South African Medicines and Related Substances Control Amendment Bill and TRIPS’ http://academic.udayton.edu/health/06world/africa01.htm p1 [14] Patric Bond ‘US Policy toward South Africa and Access to Pharmaceutical Drugs’   Alternative Information and Development Centre  Ã‚  Ã‚  Ã‚  Ã‚   http://www.aidc.org.za/?q=book/view/156   p1 [15] Louise Sylvan ‘TRIPS: Protecting Intellectual Property or Putting Profits Before People’ Online Opinion http://www.onlineopinion.com.au/view.asp?article=1968 p1 [16] N.B. Zaveri (1999) Success often comes to those who dare and act, paper presented at Brainstorming Workshop on WTO Agreements and Peoples Concerns, New Delhi, Oct/Nov 1999 p1 [17] David C Korten, When Corporations Rule the World, Earthscan Publication Ltd. London, p.144 [18] Ibid [19] Ibid [20] David C Korten, When Corporations Rule the World, Earthscan Publication Ltd. London, p.144 [21] Ibid [22] Janet Dine, The Governance of Corporate Groups, Cambridge University Press, 2000.p.156 [23] David C Korten, When Corporations Rule the World, Earthscan Publication Ltd. London, p.146 [24] Ibid [25] David C Korten, When Corporations Rule the World, Earthscan Publication Ltd. London, p.147 [26] Ibid [27] David C Korten, When Corporations Rule the World, Earthscan Publication Ltd. London,pp.147-148 [28] Rosalyn S Park, The International Drugs Industry: What the Future Holds for South Africa’s HIV/AIDS   Patients, Minnesota Journal of Global Trade, 2002.p.1 [29] Ibid [30] Rosalyn S Park, Minnesota Journal of Global Trade, 2000, p.2 [31] J H Reichman, The TRIPS Agreement Comes of Age: Conflict or Cooperation with the Developing Countries? P.6 [32] F.M. Scherer and Jayashree Watal ‘Post-Trips Options for Access to Patented Medicines in Developing Nations’ Journal of International Economic Law (2002)   p 939

Capital Market Essay Example for Free

Capital Market Essay Concept, Security market, Primary Secondary markets-Functions Role, Functionaries of stock exchanges-Brokers, Sub- Brokers, Jobbers, Consultants ,Institutional Investors NRIs. Definition of Capital Market Capital market is the market from where long-term capital raised for industry, trade and commerce and long-term securities are transacted. It is a well-organised market for providing long-term capital whether in the form of securities or borrowings. Distinguish between Money Market and Capital Market. Two main components of financial market are — (1) capital market and (2) money market. Main aim of two markets is to supply money in industry, trade and commerce. The differences between the two markets are discussed here : 1. Definition: Capital market is the market from where long-term capital is collected for the purpose of industry, trade and commerce. Money market is the market from where short-term capital is collected for industry, trade and business. 2. Types of Capital: Capital market supplies long-term capital mainly. Money market supplies short term capital generally. 3. Use of Capital: Capital collected from capital market is used to purchase fixed asset and meet deficiency of current capital. Capital collected from money market is used to meet current capital only. 4. Impact: Capital market creates scope for investment in industry and business through indirect securities transaction. Money market creates scope for investment in agriculture, industry and commerce directly. For example — money market arranges cash credit system in agriculture. 5. Protection of Interests: Capital Market makes arrangement for investment to protect the investors’ interest. Money market makes arrangement of investment for their own interest with depositors’ money. 6. Ancillary Functions: The members of capital market do not usually perform ancillary functions on behalf of clients but they may render institutional services. The members of the money market performs different types of ancillary functions, such as purchase of shares and debentures, co llection of dividend, keeping of valuable articles in custody etc. on behalf of their clients. 7. Underwriting Functions: Underwriting of shares and debentures are one of the main functions of capital market. Underwriting of shares and debentures of companies are secondary functions of money market. 8. Constituents: The constituents of capital market are — insurance company, investment trust, underwriters, and government and private organisations. Money market is composed of Reserve Bank of India, commercial bank, cooperative society, indigenous bankers and investors. 9. Segments: Capital market may be divided into two segments viz. new issue market and secondary market. The important segments of money market are: Treasury bill market, commercial paper, call money market, certificates of deposit markets. 10. Regulation: Capital market in India is mainly regulated by the Securities and Exchange Board of India. Indian money market is regulated by The Reserve Bank of India. Describe the features of Indian Capital Market. The features of Indian capital market are discussed here : (1) Lack of Specialised Agencies: Industrial bank, underwriting agencies, share issue house — all these expert institutions are found in capital market of foreign countries. But such expert organisations are absent in capital market of India. (2) Capital Supply by Managing Agent: In India the custom of supplying capital by managing agent is not found in any other country of the world, though this custom has been abolished now. (3) Establishment of Capital Supplying Agency: A good number of financing institutions have been set up in India at the initiative of the government. All these institutions are more important than private financing institutions in the capital market of India. (4) Governmental Efforts: Investment trust and insurance companies which play important role in other countries do not play the same role in India. So, to stabilise capital market in India, UTI and LICI have been set up by government initiative. (5) Arrangement of Long-term Loan: Different investment institutions make arrangement of longterm loan for industry and commerce in the capital market of India. Help to National Growth: One of the main features of Indian capital market is that it helps national development. Collecting small savings of people, Indian capital market forms a monetary fund. This money is utilised for national development in many cases. Describe the functions of Indian Capital Market. The standard of development of a country can be realised from the functions of capital market. Development of any country depends on the formation of capital of that country. So, importance of the functions of capital market is immense for economic development of the country. Function of Indian capital Market is as follows: Help to Establishment and Expansion of Industry and Commerce: Fixed capital is required for establishment, expansion and continuity of industrial and commercial institutions, capital market supplies necessary money for these requirements. Arrangement of Long-term Loan : Long-term loan is required for establishment or expansion of business. Different investment institutions under this market make arrangement for providing long-term loan in industry and commerce. Help to Public Enterprise : Capital market also helps in transaction of securities of 7 public enterprises. Help to National Growth: Capital market forms a monetary fund from the collection of small savings of the people. This money is utilised for national development in many cases. Motivation to Savings : As capital market is an organised market for long-term investment, both corporate sector and investment sector have great confidence in it. This market encourages the people in savings by creating scope for investment in securities of different profiteering firms. Advisory Functions: investors cannot always choose profitable shares or securities. There are a large number of experienced brokers in capital market who assist the investors by rendering advice relating to investment. Mobility of Savings : Capital market keeps savings of the country mobile by creating scope for investment in profitable securities. Functions of Underwriter: Underwriting of shares and debentures are one of the main functions of capital market. Capital Formation : One of the main functions of capital market is capital formation. Small savings of people are deposited in capital market as investment and form a monetary fund. Long-term loan is provided to different business institutions from this monetary fund. Create Ready Market: Transactions of securities are regularly held in the capital market. Thus give the scope to the investors to collect money by selling securities in their need and to purchase securities in right time. Describe the constituent of Indian Capital Market. The constituents of capital market are — (a) investment trust, (b) insurance company, (c) securities market and (d) special financing institution. Let us describe them in details: Investment Trust These institutions are formed as Joint Stock Limited Company. These institutions collect capital by selling own shares and debentures and supply capital to the industrial concerns through the purchase of their shares and debentures. Remarkable Investment Trusts of our country are — The Tata Investment Trust (Pvt. Ltd.), The Investment Corporation of India Ltd., The New India Investment Corporation Company Ltd. [â™ ¦ Advantages of Investment Trust (1) Profitability : From small investors point of view investment of their small savings in investment trust is more profitable. (2) Less Risk : Investors are assured of safety to their investment in investment trust. (3) Capital Formation : Investment trust creates the habit of savings among common people. As a result capital is formed and that capital helps expand industry in the country. ⠝â€" Disadvantages of Investment Trust (1) Non-disclosure of Information : Investment trusts do not disclose all information regarding investment of investors. As a result investors remain in the dark about many factors of investment. (2) Personal Interest: Many times management of investment trusts invest the money of investors in small profitable institutions for personal interest. As a result interests of investors are dissatisfied.] Insurance Company Insurance companies collect much money as premium and invest this amount in long-term securities of different institutions. Of the insurance companies LICI has the most influence. ⠝â€" Advantages of Insurance Company (1) Stable Return : If any policyholder makes insurance for certain amount of premium under LICI, at the maturity of the policy, the policyholder gets back insured money along with bonus and interest. If the policyholder expires by any means, his nominee is provided with the fixed amount of money. (2) Encouragement to Savings and Investment: Insurance company encourages common people in small savings and teach him to invest his savings profitably. (3) Facility of Ploughing Back Profit: The profit available from invested money in the insurance company is re-invested. As a result amount of refundable profit goes on increasing every year. Securities Market The market where transactions of securities are held, is called securities market. Securities market is classified into two sectors — (1) new issue market and (2) share market. Both types of securities markets are significant for long-term investment. Special Financing Institutions Lack of capital is the main reason of under-development of trade and commerce in India. To dispel this deficiency many financing institutions have been set up at the initiative of the Central and State Government. Of these Industrial Finance Corporation of India and National Industrial Development Corporation are important. Indian capital market improved a lot with the help of these institutions. ⠝â€" Advantages of Special Financing Institutions (1) Granting Long-term Loan : These institutions grant long-term loan to different industries. (2) Underwriting: All these institutions act as underwriter in case of issue of new shares. (3) Foreign Capital: There are a good number of financing institutions like ICICI which help much to bring foreign capital. Besides — (a) provident fund institutions and (b) building institutions also helped a lot for the development of Indian capital market. What do you mean by Securities Market? Securities include shares, scrip, bonds, debentures, debenture stock or other marketable securities of a like nature in or of any incorporated company or other body corporate. Generally the market where the transaction of such securities is field or the institutions which help to sell or resell share or debenture are called securities market. Securities market is divided into two sectors — (a) new issues market or primary market and (b) share market or secondary market. Both types of securities market are important for long-term industrial investment. What is New Issues Market? Describe the features of such market. The primary market or New Issues Market is that part of the capital markets that deals with the issuance of new securities. Companies, governments or public sector institutions can obtain funding through the sale of a new stock or bond issue. This is typically done through a syndicate of securities dealers. The process of selling new issues to investors is called underwriting. In the case of a new stock issue, this sale is an initial public offering (IPO). Dealers earn a commission that is built into the price of the security offering, though it can be found in the prospectus. Primary markets create long term instruments through which corporate entities borrow from capital market. The features of New Issues Market are as follows: (1) New Issues Business: New issues market deals in new issues. Therefore, the securities which were not available before will be issued to the investors for the-first time and these will be sold from this market. (2) Supply of Additional Fund : As new issues are sold from new issues market or primary market, therefore, the issuing amount of securities supplies excess fund to institutions. So, this market is directly related with financial supply of issuing institutions. (3) No Centralised Control: New issues market is not under central control and administration for the fulfillment of its business. (4) No Institutional Structure: New issues market is not confined to a particular place. So, this market has no geographical existence. In a word, it can be said that new issues market has no institutional structure. (5) Help to Entrepreneurs : To help the entrepreneurs who wish to take up new venture or like to expand present venture is t he main function of this market. Describe the Functions of New Issues Market or Primary Market New issues market deals in new securities. Therefore, the securities which were not sold before and will be issued to the investors for the first time, are sold from this market. Important functions of this market are discussed here : (1) Help to Entrepreneurs : Main function of new issue market is to help the entrepreneurs who like to take up new venture or expand their present venture. (2) Supply of Excess Fund: As new issues market deals in new issues, money collected by issuing securities supplies excess fund to the institutions. (3) Help to Transfer of Savings : This market helps much to transfer the savings of the savers to the entrepreneurs. In a word, it helps utilise saved money in productive use or constructive function. (4) Function of Primary Enquiry : This market also performs the function of primary enquiry into the legal and financial sides of the new issues companies. (5) Advisory Functions: This market renders some service in the form of advice to the new issues companies. Remarkable among these advice are — (a) determination of types of investment, (b) price of new issues shares in the context of the share market situation,(c) determine the time of issue of new shares and importance, (d) procedure of issues, (e) sale’s technique etc. (6) Underwriters’ Functions : New issues market helps new companies very much through underwriters. Underwriters are one kind of brokers, who promise to sell off definite amount of securities. (7) Distribution Functions : Function of distribution depends on the method of transferring securities in the hands of the investors. This market performs this function very well with the help of skilled and expert brokers and sub-brokers. (8) Help to Development of Industry : New issues market is not confined to a particular place. It has no geographical existence. So, the entrepreneurs can take help of this market in any part of the country. Describe the procedures of Marketing of New Securities under New Issues Market. New issue market is known as primary market for issue of securities to raise fresh capital. Procedure of this marketing is discussed here : 1. Public Issue through Prospectus : It is the natural procedure for collection of money for public companies. The company appeals to people directly to purchase share and debenture through publicity. The prospectus makes people aware of future prospect of the company and the objectives of the use of collected money. Those who are willing to purchase share on the conditions advertised in the prospectus lodges application to the company to purchase shares in response to the appeal of the company. In this process wide publicity is possible along with sale of shares. 2. Sale through Brokers : Securities of the company may be sold through brokers. At present many experts, banks and insurance organisations function as brokers. Brokers get proper commission for this job. 3. Sale through Underwriters: Underwriters are a kind of broker who are bound up with underwriting contract with the company giving assurance of selling a definite portion of shares. Underwriters purchase the shares they fail to sell. They get commission in exchange of their job. Rates of commission may be different for different securities. Of course there must be proper guide line during this in the rules of the company. This system is considered to be the best means for sale of securities. 4. Sale through Investment Institutions/Private Placement: Under this method the issuing company generally engages the investment institutions as stock brokers to sell securities. Investment institutions generally buy total shares or debentures of the company at an agreed price. 5. Issue of Bonus and Right Shares : As per Companies Act any existing company can increase its capital by selling their new shares. But if such decision is taken, the rule is to dispose of the shares proportionately to the present shareholders. If present shareholders are unwilling to purchase or if a special resolution is taken by the shareholders that the shares be sold to the public first and if such proposal is approved by the Central Government, the shares may be sold to the public in this way. This method is called issue of bonus and right share. 6. Sale through Employees : Many companies sell securities to their employees and collect money. This system improves the relationship between industrialist and labours and grows eagerness and enthusiasm for work among the workers. Write a short note on Book Building An Initial Public Offer (IPO) is the selling of securities to the public in the primary market. This Initial Public Offering can be made through the fixed price method, book building method or a combination of both. Book Building is essentially a process used by companies raising capital through Public Offeringsboth Initial Public Offers (IPOs) or Follow-on Public Offers ( FPOs) to aid price and demand discovery. Usually, the issuer appoints a major investment bank to act as a major securities underwriter or bookrunner. It is a mechanism where, during the period for which the book for the offer is open, the bids are collected from investors at various prices, which are within the price band specified by the issuer. The process is directed towards both the institutional as well as the retail investors. The issue price is determined after the bid closure based on the demand generated in the process. The Process: †¢ The Issuer who is planning an offer nominates lead merchant banker(s) as book runners. †¢ The Issuer specifies the number of securities to be issued and the price band for the bids. †¢ The Issuer also appoints syndicate members with whom orders are to be placed by the investors. †¢ The syndicate members input the orders into an electronic book. This process is called bidding and is similar to open auction. †¢ The book normally remains open for a period of 5 days. †¢ Bids have to be entered within the specified price band. †¢ Bids can be revised by the bidders before the book closes. †¢ On the close of the book building period, the book runners evaluate the bids on the basis of the demand at various price levels. †¢ The book runners and the Issuer decide the final price at which the securities shall be issued. †¢ Generally, the number of shares are fixed, the issue size gets frozen based on the final price per share. †¢ Allocation of securities is made to the successful bidders. The rest get refund orders. Advantages of Book Building: 1. It reduces the duration between allotment and listing of shares. 2. It discovers the selling price of the shares. 3. There is very little scope of manipulating the price before listing. 4. This method is a reliable procedure for allotment.