FDI Policies of India and China

FDI Policies of India and China Chapter 1: Introduction 1.1. Overview Foreign Direct Investment is a hot topic in most policy circles as it is associated in many instances with significant macroeconomic changes and improvements in the range of goods and services produced in recipient countries. Furthermore growth in recipient countries is often ascribed to these inflows and so competition for higher inflows of FDI has become competitive. Most of the developing and developed countries increase their economy by enhancing their share in the global market through FDI inflows. As FDI shows more impact on the countrys economy, most of the foreigners are investing their amount in other countries for improving their profits with less manpower and minimum initial cost. These inflows were easily achieved by the investors by just fulfilling their basic requirements and maintaining their policies. FDI can be used by the countries only when they meet some of the major requirements like transfer of capital, a source of funds for foreign operations, Control investmen t and a balance of payments flow (Nicolas, B., 2010). Even though the FDI inflows in developing countries are low that is nearly 5%, this shows more impact on the economy in terms of the development programs by introducing new technologies. This change will be occurred only in the surroundings of investment areas. Here, in this research the FDI inflows between India and China are studied by comparing both the countries. Further of this study clearly explains the various aspects that are considered by the India and China for increasing the FDI inflows in the global market and also illustrates the policies that are followed by China as most of the investors prefer China when compare to the India. Finally, it recommends some of the policies and the changes that need to be made by the Indian Government for improving its FDI inflows. 1.2. Aim and Objectives Aim: To study the variations between the FDI policies of Indian and China based on their inflows and overall performance of the economy. Objectives: To study the importance of FDI and the required fundamental policies for acquiring the FDI. To research on the impact of FDI inflows in India and China based on their overall performance. Identifying the possible steps for Indian policy makers for improving their FDI inflows. Statistically evaluating the comparison between India and China in terms of FDI inflows. 1.3. Purpose of Study This study mainly focuses on the Foreign Direct Investment, the role of FDI in India and China and also illustrates the comparison between these two countries in terms of FDI. This research is selected in order to know more about the investments made by the developing countries and the involvement in international financial banking markets to influence the global and political aspects. This study is mostly useful for the people who are willing to know about the role played by FDI in the fast growing countries like India and China where these two countries differs in their environmental conditions. While researching about the FDI in both countries, one can easily analyze that China is showing more interest in attracting the FDI and is leading their economy when compare to India. So in order to clearly investigate on this point, this study also focuses on the aspects and the policies that need to be designed by the Indian country for attracting the investors and also to increase the ov erall performance of the economy by raising the inflows when compared to China. 1.4. Research Context In this study the researcher is focused on the worlds largest two most populated countries: India and China with a greatest history background. These two countries are known to be fast growing countries in the world and are known for their ample facilities and environmental conditions. These two countries are economically improving their standards in terms of technology and infrastructural growth. However, China is considered to be more positive in terms of attracting FDIs and are almost leading the comparison with India. In this research the time is a biggest constrain and to understand the research physically is really a tough target for the researcher by visiting both countries to meet and interview/ survey the financial organizations experts from various locations. However it is also noticed that in India only the FDI policies are changing from place to place based on the local governments rules and regulations. All the major rules and regulations governed by RBI and Government o f India are applicable, addition to that the investing company also needs to ensure that the environmental and ethical issues are not disturbed by the foreign investors in local and urban areas of various parts of India. As an example, there are some pilgrim places of India which does not allow non vegetarian food or related items so in that circumstance neither Government of India or RBI cannot allow the foreigners to invest their amount for a restaurant or bar and etc. Similarly in China it is one of the largest countries in the world and is having different cultures and backgrounds with in the country. Hence from the above context it is understood that this research will mainly focus on the secondary data available and in some areas it can get into the help of people related to the financial and banking industry. 1.5. Research Methodology For conducting any type of research, the data needs to be gathered by the researcher where this collected information should be in such a way that it is valid and accurate. Researcher need to choose a suitable method from various research methods, by which the researcher can successfully finish the research. Generally there exist two different types, primary data and secondary data. Primary data mainly focus on the aim of the research where the researcher can easily collects the information from various methods like surveys, interviews, etc. Where as in the secondary data, the researcher can collect the data only from the sources like journals, books, magazines, online articles, etc. where the researcher need to collect the accurate data as these recourses will not focus on the aim of research (Kumar, R., 2005). Here in this research, researcher collects the information through secondary data as the main aim of this research is to compare the FDI inflows in both India and China. As t he time is the biggest constrain, it will be really tough target for the researcher to select the primary data as the researcher either need to do interview /survey with the concern persons by visiting two countries where it cannot be possible with the period of time. So, its better to prefer secondary data for gathering accurate information for the research by referring various resources. Hence, the research can be successfully completed by analyzing the collected information and drawing the conclusion from this data. Chapter 2: Literature review 2.1. Overview This chapter will provide the suitable information and required material for completing research successfully with no issues during the research process. At the same time the literature review gives a basic idea about the research problem solving background with additional material from their related background history. The growth of multinational enterprise (MNE) activity in foreign direct investment (FDI) has grown at a faster rate than most other international transactions as well as the trade flows between countries. The research literature review covers the objects related to foreign direct investment, detailed introduction and description of FDI and impacts of FDI. International Monetary Fund (IMF) has defined the FDI as an international investment of one company with the target of enduring relationship i.e. Investments made by company must exceed the equity of Target Company by 10%. The major requirements of the investors will help in faster growth of their organization which is explained by Nicolas, B. (2010) in terms of Control investments, supply of funds for foreign operations, a balance of payments flow and Capital transfers. 2.2. Brief History and background of Foreign Direct Investment In the present world, there exist various investment techniques for the corporations for increasing their growth. If these industries lacks in making right decisions in their investment then it may lead to reduce their growth and their level in the global market. So, many of the countries prefer Foreign Direct Investment (FDI) compare to other techniques because most of the corporations get affected financially due to their investment decisions. Mostly FDI is preferred as it is considered as an integral part of an open and effective international economic system and also referred as the major catalyst to development (OECD, 2002). In the present market, USA stood a number one position in FDI flows. According to Nicolas Breitfeld (2010, p.1), Foreign Direct Investment (FDI) is defined by the IMF as an international investment of one company with the intention of lasting relationship. Foreign Direct Investment (FDI) plays an important role in the financial sector. Generally most of the countries believe that increasing the international linkages through FDI is an important feature of financial globalization and elevates the major challenges for statistics and policymakers in industrial and developing countries (Neil, K. P., 2004). Further of this section, it clearly discusses the views of authors on FDI, the importance of FDI and mainly focuses on the issues that are being faced by the countries while introducing the FDI. Even-though authors define Foreign Direct Investment (FDI) in different ways based on their research it is mainly mend to development on countrys and globalization. Some of the authors views on FDI are discussed below: According to Organization for Economic Co-Operation and development (OECD) (2008, p.62), Foreign Direct Investment (FDI) occurs when a business located in one country (the direct investor) invests in a business located in another country (the direct investment enterprise) with the objective of creating a strategic and a lasting relationship. Here, the author suggests that occurrence of FDI exists only when the business persons invests their money in another country. They invest their income in another country by making some rules and regulations in their relationship. But according to Alexander, L. and IMFD, (2002), foreign direct investment defined as the integration of three components which are illustrated below: The branch profits need to be distributed and divided in equity without any holding withholding taxes. Accrued interest need to be paid to the direct investor by the direct investment enterprise, this can also be referred as income on debt. Earnings are reinvested in proportion with the direct investment stake. In this context, author says that the investment and the interest benefited by the business people need to be redistributed in an equal proportion among the investor and the direct investment enterprise. At the same time, Neil, K. P. (2004, p.3), discusses that according to BPM5 (Balance of Payments Manual) FDI defined as a category of international investment that reflects the objective of a resident in one economy (the direct investor) obtaining a lasting interest in an enterprise resident in another economy (the direct investment enterprise). ÂÂ  Here, the author discuss that FDI indirectly affects the economy of another country as the other country invest their income on another country for gaining interest on their investment. Even though the opinions and views of the authors differs in defining the FDI but all the authors focus on only one point that is the benefit dragged by the investor and the direct investment enterprise. These investors of get benefited globally with FDI on the interest on their investment and also increases their international linkages with the industries established in another country. ÂÂ   2.3. Impacts of FDI Foreign Direct Investment is considered as a driver of economic growth and development for developing countries which often lack the technology or capital to promote sustained economic growth and development. Mostly, FDI is considered as one of the major drivers of globalization as it continuously raises with the high growth rates before the financial crisis hit the world economy. The way through which FDI promotes economic growth and development to the countries is contentious because there is no definitive evidence and lags in supporting the literature. Even though there is no empirical evidence in representing the impact of FDI on the countries there are some theoretical explanations from which one can easily analyse the impacts of FDI on developed and developing countries. According to Bora, B. (2002, p.168), FDI flows were increasing rapidly much more quickly than international trade flows, which in turn were increasing faster than world GDP. Laura Alfaro (2003) says that FDI of fers great advantages to host countries because many of the academics and policy makers argue that there exists a most important positive effect on the development of host countries. FDI not only acts as the source of the valuable technology but also helps the countries in developing the linkages with the local firms that indirectly helps the country in raising the economy. Due to these reasons, most of the developing and industrialized countries offer incentive for encouraging the FDI in their economies. The environmental impacts of foreign direct investment may be positive, negative or neutral based on the institutional and industrial context. Gorg and Greenwood (2002) comes under a conclusion that the effect due to FDI is negative by reviewing the information from the foreign-owned to domestically owned firms. But Lipsey (2002) supports the positive benefits in preferring FDI. FDI flows attained a new record level right from the year 1990 to 2000. Then, from the year 2001 the gro wth in the investment failed and the later years it saw a steady and steep decline in global FDI flows. , Figure: Shows trends in global FDI flows during the year 1991 to 2003 (FDI, 2007, p.7). FDI affects the economic growth of the country in various aspects like it raises the formation of human capital, provides a facility to transfer the technology between the host countries and also stimulates the domestic investment. The relationship between the impact of FDI and economic growth can be easily analyzed with the help of production function and also with the other variables that affect economic growth such as domestic, trade, labour and capital (Falki, N. 2009). Production function was done based on the endogenous growth. According to Kumar, N. (1998, p.112), Direct investment was thought of mainly as a flow of capital, possibly replacing local capital or possibly representing marginal additions to the host countrys capital stock, followed by the necessity of financing dividends and interest, and possibly repatriation of capital. Some of the authors studied on the impact of FDI on economic growth in developing countries where those opinions are illustrated below: Authors views on Does FDI promote Economic Growth in developing countries S.No. Authors name Researched during the year Does FDI promote Economic Growth in developing countries (Yes/No/May be) Explanation 1. Balasubramanyam 1996, 1999 May be Requires open or neutral trade regime 2. Borensztein 1998 May be Depends on education level of workforce 3. De Mello 1999 May be Depends on degree of complementarily and substitution between FDI and domestic investment 4. Graham and Wada 2001 Yes Raised per capita GDP in Chinese provinces with FDI concentration 5. Graham 1995 May be TNCs market power can generate negative impacts 6. Loungani and Razin 2001 May be Risks 7. Lim 2001 May be Depends on tax incentives, regulatory and legal impediments, macroeconomic instability 8. Marino 2000 May be Requires open trade and investment policies 9. Mallampallyand Sauvant 1999 May be Requires human resource development, information and other infrastructure 10. Markusen and Venables 1999 Yes Raises productivity and exports of domestic firms, generates spillovers 11. Rodrik 1999 No Reverse causality: TNCs locate, rather than drive growth, in more productive and faster growing countries Table: Shows the authors explanation on Does FDI Promote Economic Growth in developing Countriesthis is a question? (LyubaZarsky, 2005, p.25) From the above table, it can be understood that out of 11 authors, only 2 authors support that FDI promotes economic growth in the developing countries as they explain that it raises the productivity, exports of domestic firms and stated a practical example that it raised the percapita GDP of china government with the help of FDI. Rodrik, opposed the views of the other authors on supporting the FDI as based on their research. From Rodrik research, it has been stated that it doesnt shown impact rather it was derived as a reverse causality. Apart from these three authors, the remaining 8 authors were in a dynamo whether to support the FDI or not because all these authors states that the impact on FDI on economic growth depends only on the circumstances that the author considers but not on any other aspects. For example: FDI shows more impact on economic growth only when the government fulfil some basic needs such as require open trade, investment policies, human resource development, i nformation, other infrastructure, etc. If these requirements are fulfilled by the government then automatically it get benefited with the FDI but if it fails in reaching those needs then it may face some risks due to the policies and the agreement between the countries. Hence, it can be stated that impacts of FDI directly depends on the situations and circumstances that are being considered by the government. By tightening of international financial conditions will have as awful effect on inflows of FDI. In the recent years, this has been main source of assets for many countries (U. N. Staff. 2009).FDI shows more effect on the economic growth of the countries as it provides various benefits to the countries that acquire FDI are illustrated below (Khan Arshad, 2007): Introduces the latest techniques and technologies of marketing and management with the help of FDI, the developing countries can know more about the latest techniques and the technologies that are being used by the developed countries. By acquiring and implementing these latest technologies in the developing countries, to some extent it can increase its growth in terms of economy. Exploitation and utilization of local raw materials usage of raw materials in the countries will be increased by exporting these excess materials to other countries and get benefited with them by importing other raw materials from other country which are shortage in their countries. Can be easily access to the new technologies as there will be a rapid flow between the countries, each of the country can know more easily about the other country and their religion. Based on this analysis, it can assess and access the technologies in their own region by making contract with the other countries. Financial flows between the countries Foreign inflows between the countries are used for financing current account deficits. The finance flows between the countries are transferred in the form of FDI where it doesnt generate interests and repayment of principal but internally raises the human capital stock through job training. Chapter 3: Empirical Literature on FDI based on INDIA and CHINA 3.1. Effects of FDI on all other countries when compared with India and china The existence of a strong negative relationship between trade share and country size was supported by the literature on trade and development. Country size and trade ratio are inversely proportional in size (larger the size of the country smaller is the trade ratio), the foreign trade, investment, and technology transfer between countries will directly affect the degree of sincerity and competitive pressures emanating from abroad (Pieter, B. 2007). Thus, the impact of these competitive pressures would be much less in a large country such as China and India than that among other East Asian NICs. In recent years china had recognized its need towards foreign trade, investment and technology with the aim of modernization, nothing like the Third World developing countries (India) that impoverished foreign capital. 1984-85 1994-95 1999-2000 2004-05 2006 2007 World 2.2 4.8 18.3 9.0 12.9 14.8 Developed economies 2.1 3.9 19.1 7.7 12.80 15.6 Developing economies 2.8 8.1 15.8 11.9 12.5 12.6 Developing Asia 2.3 7.9 12.1 9.9 11.0 10.6 East Asia 1.9 9.0 14.8 9.3 8.7 8.6 China 1.8 15.9 10.4 7.7 6.4 5.9 South Asia 0.2 1.7 2.4 3.3 6.2 5.7 India 0.1 1.7 2.7 3.1 6.6 5.8 Table 2: shows FDI inflow as percentage of gross domestic fixed capital formation (GDFCF), 1944 -2007. (Source: Prema, C. A. 2009, p.379) The average annual level of FDI inflow for developing Asia had raced sharply from US$ 19 billion during 1984 1985 to US$ 500 billion till 2007, at the same time share to developing countries have raised from 15.1 to 17.4 percent which is shown in the above table. The gross domestic fixed capital (GDFCF) as a share of FDI inflow is higher for all the developing countries in the period 1984 1996 and reversal due to the Asian financial crisis during 1997 98. FDI inflow for developing Asia with the average FDI/GDFCF ratio during entire period 1984 2007 is approximately 9 percent and 7.1 per cent when compared with all the developing countries at the same time the global average is 7.4 per cent. China is the recipient country of inward flow and the largest developing country from past two decades where it has been investigated a theoretical increase in inflow with in developing Asia. Among all the countries china was in the second position for total FDI flow as per the ASEAN countries , with increased average annual level of US$ 3 billion during 2000-2007, and from the year 1980 to 1997 almost before six years china was in the second half with US$ 30 billion which was the onset effect of financial crises from 1997-98, due to decline and with determination from about US$ 35 billion per annum before the year 1997 to an annual average of about US$ 24 billion between 1997-79. Establishment of export-oriented industries is heavily concentrated by chinas FDI, there observation on the share of FIEs for total exports in transition economies of china is two percent of expended persistently before 1980 and approximately 60 percent by the year 2006. India process to increases FDI participation in export- oriented activities which had remained at a outlier region of FDI whose one/third FDI during the independence in 1947 was a major amount of stock as a primary sector with plantation, mining and oil at the same time one/forth was the manufacturing and all the remaining stock s are in services, mostly trade, construction, transportation and utilities. The inflow started increasing in manufacturing from 1960s although with a divestment from this sector of FDI, since, low-wages, low skilled manpower are the Indias huge supply it can attract garments and other simple assembly activities which would indirectly favor the heavy foreign investment industry thus primarily focusing towards domestic market. From mid 1990s a slight increase in software is observed as well as significant competition with the world market at industrial production was not notable (Park, J. H. 2002).some of the difficulties which are to be faced and over come for fast development of the country . India faced many difficulties to attract foreign investors in both products and services market now it is only success to service industry of IT mainly. In order to overcome these difficulties to stimulate domestic demand this is given in three steps: The interest rates should be competitive in RBI. Value added tax (VAT) are to be implemented. Reduce the budget deficit through government. Figure: shows the financial states of India and china GDP the total chinas financial assets is approximately 220 per cent of GDP at the same time Indias financial assets is 160 per cent, countries savings and investment is the great strength for chinas financial system and Indias financial system is outside occur in savings and investments (Sources: Slide share 2008, slide No:18). 3.2. Fundamental policies of FDI India followed market-distorting policies on both foreign and private investments thus with this estimation about barriers for imports and exports are analyzed. Thus it become necessary to control the production and distribution as well as administered price controls etc. The impacts of opening up policies are likely to open up with foreign trade, investment and technology transfer, which would be much less in large countries of china and India when compared with all other East Asian NICs. Chinas opening policies in recent years is the success story with the favorable impact is not only for small economies but also for all large continental economies. China and India may not suffer from a large country constriction for adopting the export-oriented, outward-looking development strategy considerably (Park, J. H. 2002). The reformist policy is to fill the domestic savings gap which is necessary for economic development with foreign capital inflows, along with other goals in advanced for eign technology and managerial skills, and to promote exports to increase the foreign exchange earnings of the country. Due to open-door policy Chinas trade and inflow of foreign direct investment and loans are impressive, thus within a very short time china became a major exporting country, and an export competitor with the East Asian NICs (Newly Industrializing Countries) and ASEAN (Association of Southeast Asian Nations) countries in the Asia Pacific region. The opening policies in china have contributed to the countrys economic growth and development considering all domestic economic events. The Indias economic reforms undertaken in 1991 in light of Chinas experience with the export-oriented, foreign direct investment strategy for economic growth and development which has been examined with superiority of export-oriented, outward-looking development strategies. Thus China can provide important lessons and policy implications in economic development for all Third World developing countries like India. The success story of china open to worlds economy made it ideal for studying the relationship between trade and development as well as for testing the validity of export-promoting development strategy. 3.3. Historical Background and National Goals 3.3.1. History of FDI in India The generational explanation of history is given as follows after Indias independence: during 1947 to 48 there was the British owned the private foreign capital through the national policies resolution which is Swadeshi movement Industrial policy. In the next generation i.e. from 1949 to 1953 foreign investments where far away from trio of domestic business house with foreign capital as well as with the government nationalist sentiments. The second Economic plan was launched in 1957 as industrialization through import substitution and encouraging private investment. Some of the selected industries got foreign collaboration and JV mostly manufacturing companies which are retained participation in India FDI since 1960s, the devaluation of rupee encouraged the socialist idealism banks and foreign oil majors nationalized after late 1960s. After almost 8 years in 1968 the foreign investment board had encouraging investments on there own terms and conduction. In the year 1973as per the F oreign Exchange Act (FERA) which launched a new article that all firms should come together for their foreign equity, holding 40% of foreign equity to be considered as Indian companies due to which IBM as well as coca cola is exited. After seven years of strict vigilance on FDI, from the year 1980 licensing procedures were liberalized to softened, technology transfer and royalty payments relaxed, foreign investment was encouraged wherever possible. During 1900-s rupee value got down, withdrawal of NRI money, India turned to IMF; there was liberalization on trade regime and regulatory frame work. Many of the industries were invited by FDI and in some cases limit was increased from 51% to 100%. The service sector was again opened for FDI. The political instability after 1995 had started but a perception towards FDI had changed due to changes in government kept focus on FDI. 3.3.2. History of FDI in China China has joined the joint venture with other countries in the year1979, and by the year 1986 china became fully foreign owned enterprise. It was divided into four zones namely Shantou, Shenzhen, and Xiamen in the year 1980. After four years in 1984 it was found that chinas economic zone has fourteen cities and whole china combined by late 1900s. There was a rapid economic growth in reform period due to profusion of labour and its low costs, Rapid expansion of Chinas domestic market at the same time plays important role of overseas Chinese for increasing integration with world economy. The marketing effects are generally obtained by imports and exports in both bilateral countries. FDI is very essential for developing countries for Off setting the capital deficiency, Acquiring advanced technology, Gaining production know-how, Promoting exports as well as to Table 2: shows FDI in India-China products Trade (in million US Dollars). (Source: Prema, C. A. 2009, p.379) The two highest population countries of the world are India and China which together contain approximately 40 per cent of the worlds humidity on an adjacent landmass in Asia. Both countries are pride in birthplace of civilization entering the era of sharing worlds greatest development problem. The underdeveloped areas of these two countries is due to huge population relative to land and other resources, around 1950s there was no commitment to national planning for economic modernization as there was new governments of China and India, led by Mao Zedong and Jawaharlal Nehru so as to eliminate poverty and raise the standard of living (Park, J. H. 2002). Approaches to Development: Some of the important characteristics shared within India and China as the wealth of people relative to other rare resources such as arable land, natural resources, and capital suggesting the appropriate strategies for development would have involved production of labor-intensive goods. Among these some are exchanged for imports of capital goods and technology as per the necessity for development. For economic FDI Policies of India and China FDI Policies of India and China Chapter 1: Introduction 1.1. Overview Foreign Direct Investment is a hot topic in most policy circles as it is associated in many instances with significant macroeconomic changes and improvements in the range of goods and services produced in recipient countries. Furthermore growth in recipient countries is often ascribed to these inflows and so competition for higher inflows of FDI has become competitive. Most of the developing and developed countries increase their economy by enhancing their share in the global market through FDI inflows. As FDI shows more impact on the countrys economy, most of the foreigners are investing their amount in other countries for improving their profits with less manpower and minimum initial cost. These inflows were easily achieved by the investors by just fulfilling their basic requirements and maintaining their policies. FDI can be used by the countries only when they meet some of the major requirements like transfer of capital, a source of funds for foreign operations, Control investmen t and a balance of payments flow (Nicolas, B., 2010). Even though the FDI inflows in developing countries are low that is nearly 5%, this shows more impact on the economy in terms of the development programs by introducing new technologies. This change will be occurred only in the surroundings of investment areas. Here, in this research the FDI inflows between India and China are studied by comparing both the countries. Further of this study clearly explains the various aspects that are considered by the India and China for increasing the FDI inflows in the global market and also illustrates the policies that are followed by China as most of the investors prefer China when compare to the India. Finally, it recommends some of the policies and the changes that need to be made by the Indian Government for improving its FDI inflows. 1.2. Aim and Objectives Aim: To study the variations between the FDI policies of Indian and China based on their inflows and overall performance of the economy. Objectives: To study the importance of FDI and the required fundamental policies for acquiring the FDI. To research on the impact of FDI inflows in India and China based on their overall performance. Identifying the possible steps for Indian policy makers for improving their FDI inflows. Statistically evaluating the comparison between India and China in terms of FDI inflows. 1.3. Purpose of Study This study mainly focuses on the Foreign Direct Investment, the role of FDI in India and China and also illustrates the comparison between these two countries in terms of FDI. This research is selected in order to know more about the investments made by the developing countries and the involvement in international financial banking markets to influence the global and political aspects. This study is mostly useful for the people who are willing to know about the role played by FDI in the fast growing countries like India and China where these two countries differs in their environmental conditions. While researching about the FDI in both countries, one can easily analyze that China is showing more interest in attracting the FDI and is leading their economy when compare to India. So in order to clearly investigate on this point, this study also focuses on the aspects and the policies that need to be designed by the Indian country for attracting the investors and also to increase the ov erall performance of the economy by raising the inflows when compared to China. 1.4. Research Context In this study the researcher is focused on the worlds largest two most populated countries: India and China with a greatest history background. These two countries are known to be fast growing countries in the world and are known for their ample facilities and environmental conditions. These two countries are economically improving their standards in terms of technology and infrastructural growth. However, China is considered to be more positive in terms of attracting FDIs and are almost leading the comparison with India. In this research the time is a biggest constrain and to understand the research physically is really a tough target for the researcher by visiting both countries to meet and interview/ survey the financial organizations experts from various locations. However it is also noticed that in India only the FDI policies are changing from place to place based on the local governments rules and regulations. All the major rules and regulations governed by RBI and Government o f India are applicable, addition to that the investing company also needs to ensure that the environmental and ethical issues are not disturbed by the foreign investors in local and urban areas of various parts of India. As an example, there are some pilgrim places of India which does not allow non vegetarian food or related items so in that circumstance neither Government of India or RBI cannot allow the foreigners to invest their amount for a restaurant or bar and etc. Similarly in China it is one of the largest countries in the world and is having different cultures and backgrounds with in the country. Hence from the above context it is understood that this research will mainly focus on the secondary data available and in some areas it can get into the help of people related to the financial and banking industry. 1.5. Research Methodology For conducting any type of research, the data needs to be gathered by the researcher where this collected information should be in such a way that it is valid and accurate. Researcher need to choose a suitable method from various research methods, by which the researcher can successfully finish the research. Generally there exist two different types, primary data and secondary data. Primary data mainly focus on the aim of the research where the researcher can easily collects the information from various methods like surveys, interviews, etc. Where as in the secondary data, the researcher can collect the data only from the sources like journals, books, magazines, online articles, etc. where the researcher need to collect the accurate data as these recourses will not focus on the aim of research (Kumar, R., 2005). Here in this research, researcher collects the information through secondary data as the main aim of this research is to compare the FDI inflows in both India and China. As t he time is the biggest constrain, it will be really tough target for the researcher to select the primary data as the researcher either need to do interview /survey with the concern persons by visiting two countries where it cannot be possible with the period of time. So, its better to prefer secondary data for gathering accurate information for the research by referring various resources. Hence, the research can be successfully completed by analyzing the collected information and drawing the conclusion from this data. Chapter 2: Literature review 2.1. Overview This chapter will provide the suitable information and required material for completing research successfully with no issues during the research process. At the same time the literature review gives a basic idea about the research problem solving background with additional material from their related background history. The growth of multinational enterprise (MNE) activity in foreign direct investment (FDI) has grown at a faster rate than most other international transactions as well as the trade flows between countries. The research literature review covers the objects related to foreign direct investment, detailed introduction and description of FDI and impacts of FDI. International Monetary Fund (IMF) has defined the FDI as an international investment of one company with the target of enduring relationship i.e. Investments made by company must exceed the equity of Target Company by 10%. The major requirements of the investors will help in faster growth of their organization which is explained by Nicolas, B. (2010) in terms of Control investments, supply of funds for foreign operations, a balance of payments flow and Capital transfers. 2.2. Brief History and background of Foreign Direct Investment In the present world, there exist various investment techniques for the corporations for increasing their growth. If these industries lacks in making right decisions in their investment then it may lead to reduce their growth and their level in the global market. So, many of the countries prefer Foreign Direct Investment (FDI) compare to other techniques because most of the corporations get affected financially due to their investment decisions. Mostly FDI is preferred as it is considered as an integral part of an open and effective international economic system and also referred as the major catalyst to development (OECD, 2002). In the present market, USA stood a number one position in FDI flows. According to Nicolas Breitfeld (2010, p.1), Foreign Direct Investment (FDI) is defined by the IMF as an international investment of one company with the intention of lasting relationship. Foreign Direct Investment (FDI) plays an important role in the financial sector. Generally most of the countries believe that increasing the international linkages through FDI is an important feature of financial globalization and elevates the major challenges for statistics and policymakers in industrial and developing countries (Neil, K. P., 2004). Further of this section, it clearly discusses the views of authors on FDI, the importance of FDI and mainly focuses on the issues that are being faced by the countries while introducing the FDI. Even-though authors define Foreign Direct Investment (FDI) in different ways based on their research it is mainly mend to development on countrys and globalization. Some of the authors views on FDI are discussed below: According to Organization for Economic Co-Operation and development (OECD) (2008, p.62), Foreign Direct Investment (FDI) occurs when a business located in one country (the direct investor) invests in a business located in another country (the direct investment enterprise) with the objective of creating a strategic and a lasting relationship. Here, the author suggests that occurrence of FDI exists only when the business persons invests their money in another country. They invest their income in another country by making some rules and regulations in their relationship. But according to Alexander, L. and IMFD, (2002), foreign direct investment defined as the integration of three components which are illustrated below: The branch profits need to be distributed and divided in equity without any holding withholding taxes. Accrued interest need to be paid to the direct investor by the direct investment enterprise, this can also be referred as income on debt. Earnings are reinvested in proportion with the direct investment stake. In this context, author says that the investment and the interest benefited by the business people need to be redistributed in an equal proportion among the investor and the direct investment enterprise. At the same time, Neil, K. P. (2004, p.3), discusses that according to BPM5 (Balance of Payments Manual) FDI defined as a category of international investment that reflects the objective of a resident in one economy (the direct investor) obtaining a lasting interest in an enterprise resident in another economy (the direct investment enterprise). ÂÂ  Here, the author discuss that FDI indirectly affects the economy of another country as the other country invest their income on another country for gaining interest on their investment. Even though the opinions and views of the authors differs in defining the FDI but all the authors focus on only one point that is the benefit dragged by the investor and the direct investment enterprise. These investors of get benefited globally with FDI on the interest on their investment and also increases their international linkages with the industries established in another country. ÂÂ   2.3. Impacts of FDI Foreign Direct Investment is considered as a driver of economic growth and development for developing countries which often lack the technology or capital to promote sustained economic growth and development. Mostly, FDI is considered as one of the major drivers of globalization as it continuously raises with the high growth rates before the financial crisis hit the world economy. The way through which FDI promotes economic growth and development to the countries is contentious because there is no definitive evidence and lags in supporting the literature. Even though there is no empirical evidence in representing the impact of FDI on the countries there are some theoretical explanations from which one can easily analyse the impacts of FDI on developed and developing countries. According to Bora, B. (2002, p.168), FDI flows were increasing rapidly much more quickly than international trade flows, which in turn were increasing faster than world GDP. Laura Alfaro (2003) says that FDI of fers great advantages to host countries because many of the academics and policy makers argue that there exists a most important positive effect on the development of host countries. FDI not only acts as the source of the valuable technology but also helps the countries in developing the linkages with the local firms that indirectly helps the country in raising the economy. Due to these reasons, most of the developing and industrialized countries offer incentive for encouraging the FDI in their economies. The environmental impacts of foreign direct investment may be positive, negative or neutral based on the institutional and industrial context. Gorg and Greenwood (2002) comes under a conclusion that the effect due to FDI is negative by reviewing the information from the foreign-owned to domestically owned firms. But Lipsey (2002) supports the positive benefits in preferring FDI. FDI flows attained a new record level right from the year 1990 to 2000. Then, from the year 2001 the gro wth in the investment failed and the later years it saw a steady and steep decline in global FDI flows. , Figure: Shows trends in global FDI flows during the year 1991 to 2003 (FDI, 2007, p.7). FDI affects the economic growth of the country in various aspects like it raises the formation of human capital, provides a facility to transfer the technology between the host countries and also stimulates the domestic investment. The relationship between the impact of FDI and economic growth can be easily analyzed with the help of production function and also with the other variables that affect economic growth such as domestic, trade, labour and capital (Falki, N. 2009). Production function was done based on the endogenous growth. According to Kumar, N. (1998, p.112), Direct investment was thought of mainly as a flow of capital, possibly replacing local capital or possibly representing marginal additions to the host countrys capital stock, followed by the necessity of financing dividends and interest, and possibly repatriation of capital. Some of the authors studied on the impact of FDI on economic growth in developing countries where those opinions are illustrated below: Authors views on Does FDI promote Economic Growth in developing countries S.No. Authors name Researched during the year Does FDI promote Economic Growth in developing countries (Yes/No/May be) Explanation 1. Balasubramanyam 1996, 1999 May be Requires open or neutral trade regime 2. Borensztein 1998 May be Depends on education level of workforce 3. De Mello 1999 May be Depends on degree of complementarily and substitution between FDI and domestic investment 4. Graham and Wada 2001 Yes Raised per capita GDP in Chinese provinces with FDI concentration 5. Graham 1995 May be TNCs market power can generate negative impacts 6. Loungani and Razin 2001 May be Risks 7. Lim 2001 May be Depends on tax incentives, regulatory and legal impediments, macroeconomic instability 8. Marino 2000 May be Requires open trade and investment policies 9. Mallampallyand Sauvant 1999 May be Requires human resource development, information and other infrastructure 10. Markusen and Venables 1999 Yes Raises productivity and exports of domestic firms, generates spillovers 11. Rodrik 1999 No Reverse causality: TNCs locate, rather than drive growth, in more productive and faster growing countries Table: Shows the authors explanation on Does FDI Promote Economic Growth in developing Countriesthis is a question? (LyubaZarsky, 2005, p.25) From the above table, it can be understood that out of 11 authors, only 2 authors support that FDI promotes economic growth in the developing countries as they explain that it raises the productivity, exports of domestic firms and stated a practical example that it raised the percapita GDP of china government with the help of FDI. Rodrik, opposed the views of the other authors on supporting the FDI as based on their research. From Rodrik research, it has been stated that it doesnt shown impact rather it was derived as a reverse causality. Apart from these three authors, the remaining 8 authors were in a dynamo whether to support the FDI or not because all these authors states that the impact on FDI on economic growth depends only on the circumstances that the author considers but not on any other aspects. For example: FDI shows more impact on economic growth only when the government fulfil some basic needs such as require open trade, investment policies, human resource development, i nformation, other infrastructure, etc. If these requirements are fulfilled by the government then automatically it get benefited with the FDI but if it fails in reaching those needs then it may face some risks due to the policies and the agreement between the countries. Hence, it can be stated that impacts of FDI directly depends on the situations and circumstances that are being considered by the government. By tightening of international financial conditions will have as awful effect on inflows of FDI. In the recent years, this has been main source of assets for many countries (U. N. Staff. 2009).FDI shows more effect on the economic growth of the countries as it provides various benefits to the countries that acquire FDI are illustrated below (Khan Arshad, 2007): Introduces the latest techniques and technologies of marketing and management with the help of FDI, the developing countries can know more about the latest techniques and the technologies that are being used by the developed countries. By acquiring and implementing these latest technologies in the developing countries, to some extent it can increase its growth in terms of economy. Exploitation and utilization of local raw materials usage of raw materials in the countries will be increased by exporting these excess materials to other countries and get benefited with them by importing other raw materials from other country which are shortage in their countries. Can be easily access to the new technologies as there will be a rapid flow between the countries, each of the country can know more easily about the other country and their religion. Based on this analysis, it can assess and access the technologies in their own region by making contract with the other countries. Financial flows between the countries Foreign inflows between the countries are used for financing current account deficits. The finance flows between the countries are transferred in the form of FDI where it doesnt generate interests and repayment of principal but internally raises the human capital stock through job training. Chapter 3: Empirical Literature on FDI based on INDIA and CHINA 3.1. Effects of FDI on all other countries when compared with India and china The existence of a strong negative relationship between trade share and country size was supported by the literature on trade and development. Country size and trade ratio are inversely proportional in size (larger the size of the country smaller is the trade ratio), the foreign trade, investment, and technology transfer between countries will directly affect the degree of sincerity and competitive pressures emanating from abroad (Pieter, B. 2007). Thus, the impact of these competitive pressures would be much less in a large country such as China and India than that among other East Asian NICs. In recent years china had recognized its need towards foreign trade, investment and technology with the aim of modernization, nothing like the Third World developing countries (India) that impoverished foreign capital. 1984-85 1994-95 1999-2000 2004-05 2006 2007 World 2.2 4.8 18.3 9.0 12.9 14.8 Developed economies 2.1 3.9 19.1 7.7 12.80 15.6 Developing economies 2.8 8.1 15.8 11.9 12.5 12.6 Developing Asia 2.3 7.9 12.1 9.9 11.0 10.6 East Asia 1.9 9.0 14.8 9.3 8.7 8.6 China 1.8 15.9 10.4 7.7 6.4 5.9 South Asia 0.2 1.7 2.4 3.3 6.2 5.7 India 0.1 1.7 2.7 3.1 6.6 5.8 Table 2: shows FDI inflow as percentage of gross domestic fixed capital formation (GDFCF), 1944 -2007. (Source: Prema, C. A. 2009, p.379) The average annual level of FDI inflow for developing Asia had raced sharply from US$ 19 billion during 1984 1985 to US$ 500 billion till 2007, at the same time share to developing countries have raised from 15.1 to 17.4 percent which is shown in the above table. The gross domestic fixed capital (GDFCF) as a share of FDI inflow is higher for all the developing countries in the period 1984 1996 and reversal due to the Asian financial crisis during 1997 98. FDI inflow for developing Asia with the average FDI/GDFCF ratio during entire period 1984 2007 is approximately 9 percent and 7.1 per cent when compared with all the developing countries at the same time the global average is 7.4 per cent. China is the recipient country of inward flow and the largest developing country from past two decades where it has been investigated a theoretical increase in inflow with in developing Asia. Among all the countries china was in the second position for total FDI flow as per the ASEAN countries , with increased average annual level of US$ 3 billion during 2000-2007, and from the year 1980 to 1997 almost before six years china was in the second half with US$ 30 billion which was the onset effect of financial crises from 1997-98, due to decline and with determination from about US$ 35 billion per annum before the year 1997 to an annual average of about US$ 24 billion between 1997-79. Establishment of export-oriented industries is heavily concentrated by chinas FDI, there observation on the share of FIEs for total exports in transition economies of china is two percent of expended persistently before 1980 and approximately 60 percent by the year 2006. India process to increases FDI participation in export- oriented activities which had remained at a outlier region of FDI whose one/third FDI during the independence in 1947 was a major amount of stock as a primary sector with plantation, mining and oil at the same time one/forth was the manufacturing and all the remaining stock s are in services, mostly trade, construction, transportation and utilities. The inflow started increasing in manufacturing from 1960s although with a divestment from this sector of FDI, since, low-wages, low skilled manpower are the Indias huge supply it can attract garments and other simple assembly activities which would indirectly favor the heavy foreign investment industry thus primarily focusing towards domestic market. From mid 1990s a slight increase in software is observed as well as significant competition with the world market at industrial production was not notable (Park, J. H. 2002).some of the difficulties which are to be faced and over come for fast development of the country . India faced many difficulties to attract foreign investors in both products and services market now it is only success to service industry of IT mainly. In order to overcome these difficulties to stimulate domestic demand this is given in three steps: The interest rates should be competitive in RBI. Value added tax (VAT) are to be implemented. Reduce the budget deficit through government. Figure: shows the financial states of India and china GDP the total chinas financial assets is approximately 220 per cent of GDP at the same time Indias financial assets is 160 per cent, countries savings and investment is the great strength for chinas financial system and Indias financial system is outside occur in savings and investments (Sources: Slide share 2008, slide No:18). 3.2. Fundamental policies of FDI India followed market-distorting policies on both foreign and private investments thus with this estimation about barriers for imports and exports are analyzed. Thus it become necessary to control the production and distribution as well as administered price controls etc. The impacts of opening up policies are likely to open up with foreign trade, investment and technology transfer, which would be much less in large countries of china and India when compared with all other East Asian NICs. Chinas opening policies in recent years is the success story with the favorable impact is not only for small economies but also for all large continental economies. China and India may not suffer from a large country constriction for adopting the export-oriented, outward-looking development strategy considerably (Park, J. H. 2002). The reformist policy is to fill the domestic savings gap which is necessary for economic development with foreign capital inflows, along with other goals in advanced for eign technology and managerial skills, and to promote exports to increase the foreign exchange earnings of the country. Due to open-door policy Chinas trade and inflow of foreign direct investment and loans are impressive, thus within a very short time china became a major exporting country, and an export competitor with the East Asian NICs (Newly Industrializing Countries) and ASEAN (Association of Southeast Asian Nations) countries in the Asia Pacific region. The opening policies in china have contributed to the countrys economic growth and development considering all domestic economic events. The Indias economic reforms undertaken in 1991 in light of Chinas experience with the export-oriented, foreign direct investment strategy for economic growth and development which has been examined with superiority of export-oriented, outward-looking development strategies. Thus China can provide important lessons and policy implications in economic development for all Third World developing countries like India. The success story of china open to worlds economy made it ideal for studying the relationship between trade and development as well as for testing the validity of export-promoting development strategy. 3.3. Historical Background and National Goals 3.3.1. History of FDI in India The generational explanation of history is given as follows after Indias independence: during 1947 to 48 there was the British owned the private foreign capital through the national policies resolution which is Swadeshi movement Industrial policy. In the next generation i.e. from 1949 to 1953 foreign investments where far away from trio of domestic business house with foreign capital as well as with the government nationalist sentiments. The second Economic plan was launched in 1957 as industrialization through import substitution and encouraging private investment. Some of the selected industries got foreign collaboration and JV mostly manufacturing companies which are retained participation in India FDI since 1960s, the devaluation of rupee encouraged the socialist idealism banks and foreign oil majors nationalized after late 1960s. After almost 8 years in 1968 the foreign investment board had encouraging investments on there own terms and conduction. In the year 1973as per the F oreign Exchange Act (FERA) which launched a new article that all firms should come together for their foreign equity, holding 40% of foreign equity to be considered as Indian companies due to which IBM as well as coca cola is exited. After seven years of strict vigilance on FDI, from the year 1980 licensing procedures were liberalized to softened, technology transfer and royalty payments relaxed, foreign investment was encouraged wherever possible. During 1900-s rupee value got down, withdrawal of NRI money, India turned to IMF; there was liberalization on trade regime and regulatory frame work. Many of the industries were invited by FDI and in some cases limit was increased from 51% to 100%. The service sector was again opened for FDI. The political instability after 1995 had started but a perception towards FDI had changed due to changes in government kept focus on FDI. 3.3.2. History of FDI in China China has joined the joint venture with other countries in the year1979, and by the year 1986 china became fully foreign owned enterprise. It was divided into four zones namely Shantou, Shenzhen, and Xiamen in the year 1980. After four years in 1984 it was found that chinas economic zone has fourteen cities and whole china combined by late 1900s. There was a rapid economic growth in reform period due to profusion of labour and its low costs, Rapid expansion of Chinas domestic market at the same time plays important role of overseas Chinese for increasing integration with world economy. The marketing effects are generally obtained by imports and exports in both bilateral countries. FDI is very essential for developing countries for Off setting the capital deficiency, Acquiring advanced technology, Gaining production know-how, Promoting exports as well as to Table 2: shows FDI in India-China products Trade (in million US Dollars). (Source: Prema, C. A. 2009, p.379) The two highest population countries of the world are India and China which together contain approximately 40 per cent of the worlds humidity on an adjacent landmass in Asia. Both countries are pride in birthplace of civilization entering the era of sharing worlds greatest development problem. The underdeveloped areas of these two countries is due to huge population relative to land and other resources, around 1950s there was no commitment to national planning for economic modernization as there was new governments of China and India, led by Mao Zedong and Jawaharlal Nehru so as to eliminate poverty and raise the standard of living (Park, J. H. 2002). Approaches to Development: Some of the important characteristics shared within India and China as the wealth of people relative to other rare resources such as arable land, natural resources, and capital suggesting the appropriate strategies for development would have involved production of labor-intensive goods. Among these some are exchanged for imports of capital goods and technology as per the necessity for development. For economic

Operations Management Essay

I. Introduction Operations management is a management system dedicated in dealing with the allocation of resources, dealing with constraints, marketing and the strategic management theories that would be used in the day to day processes necessary for a company, with the endpoint of producing profits and revenues.(â€Å"Operations Research†, 2006) It is basically the management function that deals in the production and distribution of goods and services.(Stevenson, 2005) Companies practice this type of management to ensure that the daily processes to produce the necessary good or service that would be available for distribution. Basically, an organization or company has three functional fields that it functions on. First of which, is finance.   Basically, Finance is the management field dealing with the sourcing and allocation of funds in the organization; it functions as a distributor of funds to the whole organization and is also responsible for the investment decisions that would generate future cash flows for the company. Marketing is the managerial field responsible for the identification of consumer’s preferences and tastes. It seeks to employ these as market factors that would be used to promote and sell the organizations products or outputs. Lastly, Operations is the managerial function that deals mainly in the production of goods and services that the company considers as output. The driving force of the organization or company is operations. II. Industry in Scope The Service Industry of the United States is one of the industries that runs under the classification of being one of the main industries in the United States. It is the industry devoted to the utilization of non-good products that would be utilized by the market, mainly in finance and operations. A. The Information Industry The Information Sector of the Service Industry is the sector concerned with data processing, distribution of products that perform data processing activities, and more importantly, the distribution of information through mediums like the Internet. Main components of the industry include the data processing companies, broadcasting companies, movie and audiovisual companies and other industries that function as distributors of information or provide products that would be capable of receiving, transmitting or processing of Information. The information service industries that include data portals and search engines are also included in the list.(â€Å"NAICS Industry Sector Description: Information Industry†, 2006) This shows that the Information Sector is one of the key industries in the development of information and data exchange. The development in softwares and the evolution of the means of data processing is achieved through the development of this industry. Characteristics of the Information Industry There are several unique characteristics associated to the Information Sector segment. They are the distinguishing characteristics that separate this sector from the different sector segments.   First is that the products associated with this industry does not take any particular form(â€Å"NAICS Industry Sector Description: Information Industry†, 2006); the associated outputs are intangible in nature. For example, news delivered by a television broadcasting company does not have a true form, although it can be grasped by the comprehension of people. The second characteristic is that the transaction can be consummated without direct contact from the parties involved.(â€Å"NAICS Industry Sector Description: Information Industry†, 2006) Since the transaction can be done in the Internet, such as that in E-Business, the buyer and the seller can transact using that medium. The third characteristic is that the since the products involved does not really have a tangible form, the content of the product is what gives the product its value.(â€Å"NAICS Industry Sector Description: Information Industry†, 2006) Structure is not important. And since this is the case, intellectual property laws protect the products. For example, the reel of film is not what gives a motion picture its true value,; hence the motion picture itself is the one protected by the law and not that of the film in which it is recorded in. The fourth characteristic is that the processes involved in the production of the products in this sector is different from the processes involved in the production of the goods in any other industry.(â€Å"NAICS Industry Sector Description: Information Industry†, 2006) This reserves the company the sole rights in the nature of its processes and its sequential structure. The fifth characteristic is that companies in this industry that does not derive its profit mainly from the revenue from the sales of its products(â€Å"NAICS Industry Sector Description: Information Industry†, 2006); instead, the main part of revenue is accumulated form the additional values that are attached to the product such as advertisements. II.   The Health Care Industry The Service Industry also has Health Care under its roster. This industry is the one responsible for the administration of proper care in health of the people that needs them. These varieties of receivers of health care range from the poor to the rich, from the terminally ill to those of infections. The combination of human affection and that of modern technology helps provide the necessary service that the industry promises to deliver.(â€Å"Health Care†, 2005) Workers ranging from physicians of every kind to the paramedics, this industry is responsible for the research and study of the illnesses that afflict mankind and finds ways to counteract the diseases before they become outbreaks. This industry is also essential in providing the public information on their health care and of the recent diseases and how to prevent them. The Nine Segments The Health Care Industry can be classified into nine segments overall. The first segment would be that of the Hospitals. This is the segment includes the care of patients that would need to be cared for overnight.(â€Å"Health Care†, 2005) The hospital facilities offer a whole variety of health care services that they offer to the general public. The second segment is the Nurses and Residential Care Facilities. (â€Å"Health Care†, 2005)This segment takes care of people who cannot fully take care of them selves but not in definite need of hospital care. This segment mainly deals with children, the elderly and the incapacitated. This is also the facility that gives care round the clock nurturing, like those of children. The Office of the Physicians is also a segment of the Health Care industry.(â€Å"Health Care†, 2005) This is a segment wherein a group of physicians practice together in order for them to reduce costs. Doctors also find it convenient to practice with peers, which lead to the formation of such. This segment also comprises about 37% of the industry of Health Care. The Office of the Dentist is the next segment, comprising about 20% of the health care facilities established.(â€Å"Health Care†, 2005) This office provide specialized dental care, and in times, dental surgery. The Home Health Care Service is a fast growing segment in the Health Care Industry. This segment specializes in the care of the elderly in the comfort of their homes. This special care is always under the supervision of a doctor or physician, in order to establish any concerns in the field of medicine. The segment of the Office of Health Practitioners is the segment that includes the services of alternative medicine such as the practice of acupuncture. It also includes the services of other practitioners such as the chiropractors, who are paid either in cash or by insurance coverage. The segment of Ambulatory Services is the segment involved in this industry as the support of the medical field of hospitals and other institutions. This segment includes transport (helicopters), surgical components (blood banks), and other support services like that of anti-smoking programs. Outpatient care centers are also part of this industry as another segment. This segment includes the outpatient services of dialysis, mental health care and that of drug abuse rehabilitation centers. The last segment is that of the medical and diagnostic services. This segment deals with the laboratory work that patients need from time to time. Services include x-rays, sonograms and x-rays. These laboratory works are commonly used in hospitals to supplement the knowledge of the doctors practicing their profession there. III. Analysis of Companies Intel Corporation Intel is a processing chip producer that specializes in the production of microprocessors utilized by the computer producing companies. The corporation can be classified as belonging to the Information Sector of the Information Industry as it manufactures the microprocessors used in data exchange and data interpretation. The companies recent developments are also put into focus. A. Marketing The marketing aspect of Intel Corporation is on a roll recently. They made strategic tie-ups with Dell and Google, giving them an advantage against their competitors. The tie-up consists of the production of microprocessors that would be used in the assembly line of Dell Computers and would also provide Google the hardware that they need. In addition to that, the management changed their company’s logo, stating the fact that they need to be at the same page with the developments that the industry is undergoing. Furthermore, the marketing implications of changing a logo that was easily related to the company was a good move, especially with the extinct principles that accompany the old design. In addition to that, the company is promoting their processors with the renaming of their products. The Pentium Series would be phased out, being replaced by their new products, the Viiv and the Centrino. This put consumers on a new page with the development of new names of their products. And Lastly, Intel produced power-saving chips for the search engine Google, which lets Intel make advertisements through the search engine. Google also expressed their liking of Intel’s wireless technology, the WiMax. B. Operations Intel’s operation is on the rise as it is the product of the company make-over issued by the newly appointed CEO, Paul Otellini. The production of their microchips has risen and they have also expressed their plans to penetrate the markets governed by the leadership of Texas Instruments by producing the same chips that Texas does. Moreover, the company decided it should produce more of the specialized type of chips that the digital players require. Inking a deal with a Hollywood producers and music services. Intel is now producing digital players the same way that their partners Sony and Philips do. The operations of the company took a major turn in the changing of leaderships. This result may be due to the different principles employed by the new management, which other companies say is a good strategy on Intel’s part. A continuance on the part of Intel in its operations like in the production of their specialized microchips may give further development on their part. Praise is also due to the Digital Home team of Intel as it was one of the key factors that affected the company’s success in the present. C. Product Quality Products by Intel seem to be growing in quality, as it the marketing strategies employed was a success. The ride in the demand of the company’s new products, especially of the new processors, may also be attributed to the quality control measures employed by the company. No company’s growth would be constantly on the rise unless the company’s product has good quality. The digital players that Intel produced were a good plan, according to their business partners. They followed through by producing real good products that are now competing with the dominant producers of digital music in the industry. Furthermore, their strategic partnership with well-known brands ensured the public of the good quality of products that are produced by Intel. The power saving chips that are manufactured by Intel to be used by Google are of good quality, otherwise Google would not use it. A quality company would want nothing less than their standards of quality. And finally, the wireless application WiMax, which was developed by Intel, was of comparing status with the existing WiFi, giving the go signal that Google is also interested in further development of the application. D. Product differentiation The company’s marketing strategy employs quite a good differentiation of their market at present in such a way that the public would know what type of product they would want o own. The digital player developed by the Digital home team of Intel was made to those music fans who wanted no less than the best products for their listening pleasure. The powers saving chips were made at the idea of Google, which now has a tie-up with Intel Corporation. The basic computer processors were made with different names: the Viiv and the Centrino. This allows consumers to choose their processor without confusing it with the other. The product differentiation in this part of Intel’s product line worked well as the two products mentioned have different characteristics, giving good judgment to the fact that they should be named differently. The company also stressed a point that Intel is not all about microprocessors inside the computers. They also have a wide variety of goods that do not overlap in the market. The placing of the products is both effective and efficient. D. Consumer Satisfaction Issues At present, not much consumer satisfaction issues have made any negative impact on the products of Intel. The microprocessor that they produce would only be delivered to the assembly line of the computer producers. They would be the one to incorporate the chip into the system of the computer. So far, no problem in the speed and the accuracy of data processing has been large enough for the company to re-think their strategies. The consumer satisfaction index that can be nearly based on would be the satisfaction of the consumers on their continued development of their product lines that somehow reaches out to almost all generations. E. Overall Assessment The management of Intel made the best move when they have changed not only the look, but also the outlook of the company. Marketing strategies have been hitting two birds with one stone: achieving promotional means and the earnings they generate through the ale of product to tie-up companies. This excellent strategy made Intel one company to watch in the future. However, the drawback with Intel’s new strategy the company’s new logo was a lot different from the previous generation’s idea of the Intel logo. This may pose to be a problem to the older generation of the market that would want to catch up with the progress of technology. Consumer preferences actually change with this move by Intel; but the implication of the changing of the logo was also the changing of the practices, values and principles that governed the company for years. Furthermore, Intel must live to the expectations of its consumers, accompanied with the change in principles. Intel must prove that they have indeed developed into a powerhouse strategist.

Earning a Degree Through Distance Education Essay

We now live in a world where mobility is vital to our everyday existence. A world where access to everything must be instantaneous and adjustable in order to suit the ever accelerating pace of today’s lifestyle. Everything today is taken for granted due to the ease by which everything can be had due to the advent of internet technology and its accompanying changes in work and education criteria. Gone are the days when we had to wake up at six in the morning in order to make it to school on time. No more long commutes nor cold winter days on the bus just to complete the school attendance and get that much coveted grade. For those of us who have not the luxury to attend a traditional educational institution, distance education is a godsend. In order to prove this point, I would like to present myself as a prime example of a skeptic who came to reap the benefits of distance education learning. Although not everybody is cut out to attend and eventually earn a college degree or its equivalent through distance education, most people who are considering going back to school believe just as I do, that it holds more benefits for us as students than those who have to attend a regular college. To begin with, distance education is beneficial to those who wish to complete their high school or college degree but do not have the time to take off from their daily tasks in life in order to commute to the school and attend to the regular student activities. What they do have time for is just to attend the classes at a venue that does not require so much time and effort to get to. Then possibly, they can squeeze in some study and homework time between their other duties at home or at the office. As a part time teacher and mother to three boisterous children, I can attest to the fact that if it were not for distance learning education, I would have given up on trying to attain an associate degree in Early Childhood Education even before I started the course. As a wife and mother, my priority will always be my family. But that is not to say that I should stop dreaming about advancing myself and getting further in my chosen career which is education. The only way I can do that is if I will be able to attend classes that have a flexible class schedule in order to accommodate the needs of my family. I found the solution in the distance learning classes. It was really very easy for e to get started in the classes because I had an open schedule and attended the classed online whenever I have the time to do so. I can attend classes while at home or on the road using my laptop and wi-fi internet connections. Due to the ease by which I can attend my classes, I never have a reason to miss a day of school. There is no such thing as my child being sick or my car breaking down so I could not come to class. Distance learning education also allows the student to learn more than just from lectures and classroom interaction. As a distance education learning student, I also learn from the school of real life and its accompanying experiences. I am not limited merely to what is taught to me because the only limitation available are the limits that I place upon myself. As a part time teacher, I have to admit that I had my doubts about distance learning education. I first thought of it as a lazy persons way of attending school. I thought that people who attended distance education classes were slackers without any dreams for their future. But, after giving the classes a fair chance, I realized that it was just like attending regular school, and sometimes, proves to even be more grueling if not for the fact that I am allowed to learn at my own pace and capability. The only competition I had was myself. As a mother, I benefit a lot from this system because it enables me to plan my classes around the activities of my children and make sure that I will always be available when they need me. It is no joke taking care of three children, one of whom is in her pre-adolescent stage and is in constant need of a mother’s guidance in her life. Distance education allows me to be a constant presence in my children’s lives and also allows us to bond together even while I attend classes because it becomes a fun activity for the family. While I attend my distance education classes, my children are sitting alongside me reading their lessons and working on their own assignments. Distance education has helped me improve my personal relationship with my children because they do not see mommy as simply an authority figure anymore whom they have to follow without question. They now see me as an equal who also makes mistakes and also has similar problems in school as they do. It gives us a common point for discussion as we compare our test results and talk about my classmates who they get to see over the webcam while I am in class. More importantly, distance education helps me save money on baby sitting payment for my nineteen month old son. Actually, distance learning education has helped my family save thousands of dollars a year that would have been spent on my daily commute to the university. These days, I can be home in a reasonable amount of time to spend with my husband and children before I attend the classes I signed up for after they have gone to bed. The detractors of distance education say that the quality of education suffers because of the questionable quality of education and interactivity between students and lecturers. My answer to this is simple, regular schools have to deal with the same problems on a daily basis. Nobody every questions the quality of their education or their lecturers. Just as I mentioned above, I too was a skeptic until I had tried and tested the system. Now, I definitely prefer the ease and simplicity of distance learning education for a college degree over attending the regular schools. Each of us have our own idea of what kind of educational institution will suit our individual needs and personalities, the choice of distance learning over traditional learning is something that falls under a personal preference. I have made my preference clear. Distance learning education has more advantages over traditional learning institutions in more ways than one simply because our lifestyles now have highly different requirements than the past decades. Thanks to the mobility offered by laptops, even the educational landscape will continue to change and evolve with the needs of the times. Something it did not have a need to do, nor have the capability to perform in the past. It is therefore my belief that earning a degree via distance learning education will soon become an acceptable and popular norm that shall be the wave of the future.

What It Is The Best Way To Do Marketing Solo

What It Is The Best Way To Do Marketing Solo If team blogging advice is confusing you as a solo blogger, stop. is a powerful blogging tool with definite team-tendencies, and we often blog with an eye toward teams of content marketers. But that may actually be unhelpful for a solo blogger. Though we write with an eye towards solo bloggers once in a while, too often we focus on the power of teams and create complex workflows and percentage-based approaches that can make even the best solo blogger’s eyes glaze over in despair. What Is The Best Way To Do Marketing Solo When You Cant Find Time? via @JulieNeidlingerWhat Troubles The Solo Blogger? Here are the characteristics of a solo blogger, from my own experience and from what we’ve heard from readers: Busy Busy Busy I emailed one of those busy solo bloggers recently. I asked her what she thought the biggest challenges were for her, and the frustrations she felt when reading advice that seemed geared for a team. She had some great (and blunt) points: No team to bounce ideas off No team to draft a long list of headlines to "test" for the best one No team to "review" the articles prior to publishing No "editor" No "graphics" person No team to handle social media, either in the posting (I use Buffer Co-Schedule, of course), or in responding No team to do extensive research, either for "hot, trending" topics or background research The solo blogger pointed out that she wasn’t just responsible for everything related to content marketing, but also all aspects of running a business, too, including client work, billing, etc. The advice she was getting was impossible, and the advice to â€Å"hire it out† wasn’t particularly helpful. That would put a dent in the budget and add yet another level of management to siphon attention away from her business. Marketing is just one thing on your to-do list. Here's how to do it well as a solo artist.After reading her list, I decided to approach the answer by rebooting the idea of what successful content marketing might look like, and how it isn’t defined in just one way (a definition, I might add, that too often fits teams best). Reduce Content Marketing To Its Bare Bones In the great swell of content marketing, with all of the graphics, stats, charts, tools, and theories, one thing has probably been lost: At its bare bones, content marketing is simply about writing stuff people want to read. At its bare bones, #contentmarketing is simply about writing stuff people want to read.1. The first word of content marketing is â€Å"content.† Be content with content. Yes, there is social media. Yes, there are email lists. Yes, there are analytics and A/B testing and landing pages and all kinds of other things under the sun that promise and deliver great returns. But, at its base, it is simply about writing something good. If you were to do that, search engines will find you. People will find you. It might be at a much slower rate, but they will. There is this huge fear- likely based on the heavy importance of big numbers as proof of successful content marketing- of how to exist when no one is reading your blog. This is horribly stifling when you’re getting started and trying to build good habits. Learn to write content well, quickly, and as second nature. 2. Just talk to people. All kinds. Here’s a shocker: I get lots of tweets and retweets and shares and followers on Twitter for the things I write, but the most viable return I receive is when I go to a blog and just leave a useful comment or establish a person-to-person communication with someone else online. And no, these are not always content marketing blogs. They are cartooning blogs, art blogs, fountain pen blogs, philosophy blogs- interesting people, great conversation, and I’ve made business connections and networks through this. These are the true word-of-mouth social shares and links that translate into dedicated readers and customers. Talking to people, especially those outside your niche, can inspire a lot of creative marketing.3. Build connections laterally. Content marketers sometimes get so wrapped up in content marketing and all of its peripherals that the engagement I get from them are questions on how they can do it better or almost mechanized retweets because they are trying to meet a curation quota. There is a strong focus that to get traction you must latch onto the influencers, the big or established names, but the response there is often an echo chamber. Find some other â€Å"little fish† and get real responses and build connections laterally instead of always looking vertically. Go where everyone else isn’t. You would be better off remembering to simply write great content and find interesting people and strike up long-term conversations on their blogs or social media accounts. The returns aren’t as sexy at first, but this approach helps you build the habit and get in practice. And, surprisingly, you make some worthwhile connections that can ultimately help your business in the long run. Building Good, Small Habits First The real question behind all the questions is probably this one: how do you get things done when you are busy and there is no one else to help? The answer is not surprising: We can get more done when we do one thing at a time and are operating mostly out of habit (good ones). And you can’t form the big habit until you form the small one. So let’s break it down into levels, with each level looking to form the habits you need in place before the next one. You might be at the beginning, or you might be further along. The key is that you can’t leave a level until all of the habits in the level are firmly in place. Solo Blogging Level 1: Just get started. Set up your blog and learn basics of maintaining and running it. Blog weekly. Share each blog post when you publish it. Learn to fine tune your words and write without lots of errors. Solo Blogging Level 2: Develop a system so the blank page has no power. Blog two times a week. Every post must have a graphic. Share each post when you publish it. Figure out how you blog, and systemize it. Solo Blogging Level 3: There is no such thing as a comfort zone. Plan your content on an editorial calendar. Blog two times a week Share at least once on social media. Be able to write a blog post on any topic, even if you have no prior understanding or idea of how to approach it. Solo Blogging Level 4: Writing is second nature. Your focus is promotion. Blog three times a week. Set up your social promotion plan. Delve into your analytics and learn to understand and use them. These levels are really the basics, but they should help you build good habits that can build more good habits. Using A Triage Mentality With a content marketing team, you can take in all of the great advice out there and implement it by delegating it out. From graphics to constant engagement and response on Twitter, it’s all doable. If you’re solo, you probably can’t. Remember, most solo bloggers are doing more than just content marketing. They are running other aspects of their business. My advice is to approach all of the helpful tips with a triage mentality, learning to pick what is the most important for what it is you want to accomplish, and leave the others alone. When you see a post about the â€Å"15 Most Important Things You Must Do For Your Content Marketing†, read it and decide which one or two you can actually do well and that will fit your ultimate goal. To do #contentmarketing solo, pick only the  few things that you want to accomplish.The ability to do this starts with understanding what you want your content marketing to achieve. You might want: More traffic More readers More social media fans High social media shares Establish a reputation as an expert You might want all of them, but you should pick one or two to start with. If you can do the â€Å"elevator speech† of what you want to achieve and sum it up in one sentence, you’ll be able to do triage on the deluge of advice coming your way and know which advice helps or gets in the way of your goal. Good advice that doesn’t apply to your goal is bad advice. Good advice that doesn’t apply to your goal is bad advice. #contentmarketingFor example, my goal is to improve my writing and create great content. While I would love more social fans and traffic, I am unable to handle johnny-on-the-spot responses to every interaction I receive on Google+ or Twitter. As a solo blogger, I could spend my time constantly monitoring my social feeds and having conversations, or I could blog and expose myself to experiences and reading that begets more blog posts. Perhaps you think you’re better at multitasking than I, but I don’t believe you. Multitasking is a big lie and that it puts a serious dent in productivity. So instead of divvying up my day to accommodate writing and social interaction, I look at it as a weekly thing. Once a week, I’ll hope into social media and respond. It’s low on my triage list. If you’re running a business and need to respond to customers sooner than once a week, I’d encourage you to at least set aside a chunk of time once a day to do it instead of hopping back and forth between social media conversation and content creation because I can guarantee you that that’s what’s creating a level of frustration and low productivity in you. A triage mentality tells you to compartmentalize, do only the important things according to what is important to you, and tells you to do them one at a time. No multitasking nonsense. Real Life Example: What I Do As both a solo blogger and a busy freelance blogger, my approach is one of limited resources and time. 1. Prepare for the upcoming week. On Sunday night, I sit down with my weekly planner and review and schedule the upcoming week’s work. All of the writing, blogging, etc. is planned out. lets you do this as well; I’m just a pen-and-paper fanatic. To make this work, you must be a realist. I know two long blog posts a day (or about 4,000 words total) is about all I can handle, so I certainly don’t set myself up for failure and schedule more than that. Set up a schedule you can handle. 2. Triage upcoming tasks. Using a highlighter, I decide which of these tasks for the coming week are absolute musts, and which are less important. I use color to make it easier to see. The low-hanging fruit, if not completed, gets moved to the next week or dropped altogether. If there are tasks continually not getting done after several weeks, it’s a sign I can’t handle it, the habit isn’t there, or it isn’t important. I have to rethink why I put them there, why I think I need to do them, or why I don’t seem motivated to complete them. 3. Do the work. There is a lot of fretting and productivity porn on the Internet where people are all trying to find the magic system for getting work done and being more productive. The truth is that such a solution doesn’t exist and fussing to find the perfect answer just keeps you from getting things done. No system is better than another, and they all hinge on one thing: you doing the work. If you’re struggling to write a blog post at your desk, write someplace else. Once a week I write at a coffee shop just to change things up a bit. If you’re struggling to write a blog post because you don’t want to, rethink why you are doing content marketing, or develop a kick-in-the-pants system that helps you get past this form of writer’s block. What tasks are you not getting done? Figure out why and work on finding a way to change that. You have to find the solution; I can’t tell you what to do. 4. Periodically review what you’re doing. Every month, I like to review: My weekly planner and see what tasks I consistently didn’t finish. Traffic and stats for my blog and social media. How many words I write every week. The habits I’ve fallen into (both good and bad). If I’m practicing the habit of brainstorming and idea generation. How many books/magazines/newspapers I’m reading for non-online source material. During this time, I try to figure out what it all means. Why didn’t I finish something? What do my analytics tell me? Am I able to be more productive (as far as word count is concerned) or have I hit a wall? Have I let my reading slip and reduced possible idea sources? Am I giving myself enough time to be creative and enough time to run my business? No, I don’t do this every week. I can’t handle that. But I can handle it every month. You can only do what you can do even if others tell you that’s not good enough. What Is The Answer? Let’s take a look at that original list from our over-worked solo blogger, and see what concrete solutions might be. 1. No team to bounce ideas off. Trust your gut, read your analytics. Your analytics and social proof will tell you what idea they liked. Take the leap and write it and find out. 2. No team to draft a list of headlines to test for the best one. Dive in, write headlines, try again, and learn from both what gets shared the most as well as what you start to learn from all the practice. If you want more assurance than that, get a plugin like KingSumo Headlines that helps you pick the best headline automatically. Use our Headline Analyzer. I don’t bounce headline ideas off of a team for my own blogging. I don’t write 25 headlines (though I usually write more than one). Some headlines are better than others. I move on. 3. No team to review articles prior to publishing. Practice writing and publishing, spell check, and reading a finished post out loud will help you write a good post. Believe me, if you have a typo or something amiss, online people will let you know. You will get better the more you do it. Don’t let a fear of no one there to reassure you the post is OK keep you from writing. 4. No editor, or graphic designer. Having an editor isn’t always the answer. Sometimes they over-edit. But if you’re concerned about the quality of your writing, there are options and apps to help you proofread. The blunt truth is, if you aren’t a good writer and you can’t afford to hire a writer, then content marketing is just going to be tough. Most people, though, can write to improve. It takes practice, and practice is the act of actually doing it. I don’t have an editor for my own blog. When I read my old blog posts I shudder. They got better the more I did it. No one is great right out of the gate. As far as graphics are concerned, Canva is a godsend. Social graphics, blog graphics, infographics- it does it all for free or low cost. Stock images are possible, but they can ding your budget. If you’re not a designer and want to avoid copyright issues, use Canva. 5. No social media team for posting or responding. Using and tools like Buffer make posting, re-posting, and curating very simple as long as you set aside the time and develop the habit. As far as responding, consider what I said about triage. Set aside time to respond, too, based on how important engagement is for your goal. 6. No team to do research for topics or background. There are all kinds of ways to get ideas for your blog. Hardcore research and diligent attention to trends is just one approach. As to writing your posts, not all of the blog post types are research intensive. If you can’t do research, focus on content types that don’t require it. While blog posts with headlines using the phrases â€Å"backed by science† or â€Å"backed by research† are very popular, you don’t have to write them. What are you good at? What can you write? Write what you can, not what everyone else is writing. You have stories to tell from client experiences. You have life experiences to share. You get ideas from books and articles you’ve read. You have reactions and comments on other blog posts. You have other things you can write without delving into scientific journals to find brain scans that prove the color blue is better for blogs than yellow. Write in the way that fits your content creator type and your time, not in accordance with what every other content marketer is telling you to write. And don’t worry about trending topics. Those kinds of blog posts aren’t going to be evergreen, anyway. Don’t Drown In Advice The nature of content marketing is that there is lots of content, and even though so much of it is helpful, if you are drowning in good advice, you are still drowning. Solo bloggers, especially, must learn to pick and choose according to a simple goal, learning to build both habits and the foundation for the next goal. They have to write how and with what they have at hand. It’s very much a creative process, finding ideas to write about with the tools and time available. A team can handle a multi-pronged attack. But if there is only one of you, you are really only capable of a single-pronged attack.

Free Essays on Amish Culture

Paper Two- Folk Culture There are many folk cultures still alive throughout the world, but the one that seems to be the most vivid of all has to be the Amish folk culture. First we have to have a clear idea of what a folk culture represents to understand the Amish way of life, their beliefs and their values. The word folk describes a rural group that still lives the old-fashioned way, following some simple rules and practices. A group of people that generally stick together and are less influenced by modern technology than the overall population. The Amish people fall under all these characteristics. The Amish are a very conservative Christian faith group. Many of their beliefs are identical to those of Fundamentalist and other Evangelical churches, including baptism, a literal interpretation of the Bible, etc. Of course, there is some differences such as their belief in remaining separate from the rest of the world and their rejection of involvement with the military or warfare. Each district is self-governing, there is no centralized Amish organization. They have traditionally avoided attempts to seek adaptation. Recently, some Amish groups have become active in converting to Christianity. The Ordnung is an oral tradition which regulates the Amish way of life, specific details of the Ordnung differ among various church districts. Some Amish migrated to the United States, started in the early 18th century, and started settling in Lancaster County, PA during the 1720's. Other groups settled in or moved to New York, Illinois, Indiana, Iowa, Missouri and Ohio. They have attempted to preserve the elements of late 17th century European rural culture. They reject most of the developments of the modern society. During the 1860's, a series of conferences were held in Wayne County OH to deal with modern pressures. Partly as a result of these conferences, the Amish split into a number of divisions, including t... Free Essays on Amish Culture Free Essays on Amish Culture Paper Two- Folk Culture There are many folk cultures still alive throughout the world, but the one that seems to be the most vivid of all has to be the Amish folk culture. First we have to have a clear idea of what a folk culture represents to understand the Amish way of life, their beliefs and their values. The word folk describes a rural group that still lives the old-fashioned way, following some simple rules and practices. A group of people that generally stick together and are less influenced by modern technology than the overall population. The Amish people fall under all these characteristics. The Amish are a very conservative Christian faith group. Many of their beliefs are identical to those of Fundamentalist and other Evangelical churches, including baptism, a literal interpretation of the Bible, etc. Of course, there is some differences such as their belief in remaining separate from the rest of the world and their rejection of involvement with the military or warfare. Each district is self-governing, there is no centralized Amish organization. They have traditionally avoided attempts to seek adaptation. Recently, some Amish groups have become active in converting to Christianity. The Ordnung is an oral tradition which regulates the Amish way of life, specific details of the Ordnung differ among various church districts. Some Amish migrated to the United States, started in the early 18th century, and started settling in Lancaster County, PA during the 1720's. Other groups settled in or moved to New York, Illinois, Indiana, Iowa, Missouri and Ohio. They have attempted to preserve the elements of late 17th century European rural culture. They reject most of the developments of the modern society. During the 1860's, a series of conferences were held in Wayne County OH to deal with modern pressures. Partly as a result of these conferences, the Amish split into a number of divisions, including t...

Business Law Essay Example | Topics and Well Written Essays - 250 words - 17

Business Law - Essay Example e scenario Abigail has no actual financial or other damages as a result of the contract, she might have been awarded damages if she had sued and won against the seller. Since the seller had failed to deliver the new car to Abigail as agreed in the contract, he would have been liable for material breach which would have permitted Abigail to either compel him to performance or collect damages as a result (Stone 25). Abigail would have been awarded special damages; special damages are awarded to a claimant as a result of a breach for the quantifiable monetary losses that he or she may suffered as a result of the breach. This would have included compensation for direct loss or consequential losses if she would have proved that failure by the seller to deliver the car had caused her economic loss. Basically, the damages would have either sought to compensate her for direct loss or to place her in the position she would have been if the contract had not been breached (Stone

Fast Food Effects Essay Example | Topics and Well Written Essays - 1250 words

Fast Food Effects - Essay Example However, fast foods have been proven to have a myriad of effects both positive and negative, while the culture of fast foods is considered to have revolutionized the feeding habits of the American public, it has come under harsh criticism because of the detrimental health effects they have on health among them obesity and diabetes. However, being cognizant of this, the fast food outlets have become more sensitive to the nutritional needs of consumers and have included â€Å"health† fast foods in their menus and even going as far as regulating the amount of salt one can consume. Considering the low pricing, people are often encouraged to buy fast foods and consume them on a regular basis. However, regular consumption of fast foods often results in obesity especially in children, bearing in mind that many of eth foods are high calories such a fries and chicken, which is often deep fried, as result the may end up consuming more calories than their bodies can burn. As a result, their body fat will increase and this will lead to weight gain, and this often has detrimental health effect on the consumer. People with office jobs are more prone to this since they spend all day sitting down and eat packed sandwiches, fries and sodas, due to lack of physical activity, they quickly gain weight and in many cases, this portends health complications in posterity. Consumption of fast foods on a regular basis especially foods rich in simple sugars can lead to insulin resistance; this occurs when the pancreas is not transforming sugars into carbohydrates and energy. Insulin resistance is a precise to diabetes type 2 that occurs when the levels of blood sugar increases (Trembla). This often results to ill health, and one becomes prone to other health complications since diabetes weakens the body’s immunity. This is made worse if someone was already overweight, since it becomes hard for them to engage in