International: Economics and Australia

A PESTEL analysis of the Australian market Australia is the 15th richest nation in per capita terms and is the 6th oldest continuously functioning democracy in the world. Australia has the 14th biggest overall economy in the world and the 9th biggest economy. Australia’s economy is open and innovative. Over the past decade solid productivity gains have been accompanied by low inflation and interest rates. Also Australia has low barrieirs to trade and investment .Australia foreign and trade policies promote the security and long term prosperity of Australia in a global context. Australia’s economy is highly susceptible to the impact of climate change. In 2008 the Australian Government committed to create an organization called â€Å"Infrastructure Australia† to provide a new national approach to planning ,implementing and funding the nations future. Being a safe, stable and prosperous country Australia is an increasingly attractive hub for international and region al business and business operations.According to recent survey it can be said that Australia’s economic success in the last century was based on its abundant agricultural, mineral and fuels resources. Numerous factors have contributed to this development Informations and communications technology is a key driver in economic growth,other factors such as advances in travel,exchanging of ideas,broader accces to standards to educations etc have also contributed to this success. Australia’s ICT market is worth an estimated $89 billion with more almost 25,000 companies employing 236000 IT specialists Political environmentIn Australia, it is a liberal-capitalistic democracy. The state keeps interfering substantially in the economy through the use of various roles; for instance the parliament might decide to set up importation taxes aimed to protect the national economy, or it might create environmental protection laws aimed to protect the natural heritage of the country. This affects international business because when taxes keep varying and increasing especially there will be an impact on the economy which in turn will affect the exchange rates and currency rate.Also according to the present situation as mentioned in The Australian Financial Review 2010: there is  fear that the hung parliament will negatively affect the economy. Australia's rate of economic growth slowed down between July and September as the high value of the Australian dollar dug into export earnings. The country's gross domestic product rose just 0. 2% during the third quarter period, down from growth of 1. 1% between April and June. Analysts deduced that Australian consumers were also hit by higher interest rates. However, the Australian economy is set to continue to grow, led by demand from China for its raw materials.According to Michael Blythe, chief economist at the Commonwealth Bank, the latest economic growth figure was a â€Å"disappointing outcome . Since Australia is he lped by its vast exports of iron ore and other raw materials, it has avoided recession for 19 years. One of the country's largest iron ore producers is the Anglo-Australian group Rio Tinto, which is increasing production, has announced $7. 2bn in new investment in the region since July 2010. According to surveys Australia's economy continued to gather pace in March as world demand for commodities boosted the nation's coffers.However due to recent uncertainty from the European debt crisis could lower expectations of economic growth in the future. Economic Environment Australia is an island continent in the Southern Hemisphere, lying between Antarctica and Asia. It is surrounded by the Indian Ocean to the west; the Timor, Arafura, and Coral Seas to the north; the Pacific Ocean to the east; and the Tasman Sea and Southern Ocean to the south. In other words its placement is a added advantage to business because when it comes to export and import, Australia is like a commuting place.Much of the continent is low, flat, and dry. The area of the continent is 2. 97 million square miles and the population is roughly 20 million Due to the harsh physical environment has encouraged people to remain close to the fertile coastal areas as a result urban and rural dwellers articulate different economic and social interests. Personal home ownership is a common goal, and the nation has one of the highest home ownership rates in the world. Therefore architecture and real estate business has a good scope in Australia.Australians are among the world leaders in fast-food consumption, fast food outlets are a plenty, beverages snacks and fast food companies have a recognized name in Australia and other countries because Australian chefs are known worldwide for their â€Å"fusion cuisine† Australia is a major regional financial centre and a vital cog in the global financial system. The Australian Stock exchange and the Sydney Futures exchange merged in 2006 to form the worldâ₠¬â„¢s 8th largest listed exchange. Australia has one of the highest percentages of shareholders in the world.Share market is one of the main aspects in international business and since the amount of people who invest in shares in Australia is high international business is also promoted really well. Trade has always been a vital component in Australia’s economic prosperity. The hallmarks of its trading success have been strong infrastructure and stable institutions. A skilled workforce, rich resources and a good agricultural base are added benefits. The goods and services tax (GST) is levied at 10 percent and applies to almost all goods and services transactions across the economy. Besides that there is only a flat corporate tax of 30 percent.When there was little scope for industrial or commercial enterprises, the pastoral industry became a key force in economic development. In particular, growth in the wool advanced rest of the economy. Gold surpassed wool as the nation's m ajor export in the 1850s and 1860s, resulting in a rapid expansion of banking and commerce. A move toward privatization at the state and commonwealth levels of government has been gaining momentum since the early 1980s. Some states, such as Victoria, have embraced this move much more than others have. Australia is highly integrated into the global capitalist economy.The economy is strong in the service sector in relation to goods-producing industries which include agriculture, forestry, fishing, mining, manufacturing, construction, and energy. It contributed around 31 percent of gross domestic product during the mid-1990s, whereas on the other hand the services industries contributed 60 percent. Goods-producing industries provided around a quarter of employment, with the rest provided by service industries. In 1996 and 1997, manufacturing was the most significant sector. In 1996 and 1997, manufacturing was the most significant sector.Another major contributor was the property and bu siness services industry. Primary industries in mining and agriculture are of key economic importance. The development of large mines in some remote regions has been associated with the establishment of towns and increased employment. In order of economic significance, Australia's current major trading partners include the United States, Japan, China, United Kingdom, , and New Zealand. Australia is one of the world's largest exporters of wool, meat, and wheat. Australia is a major supplier of sugar, dairy products, fruits, cotton, and rice.The above being the export of Australia the imports are passenger motor vehicles, telecommunications equipment, and crude petroleum oils. Australia is increasingly shifting toward an information economy that relies on a high-skill base. Thus, the workers most at risk of unemployment are laborers, factory workers, and those who learn their skills on the job. Highly skilled managers, medical practitioners, teachers, computer professionals, and elect ricians have the lowest risk of unemployment. Social environment Australia is a nation officially committed to ethnic and racial inclusiveness.For much of the nation's history, there has been a focus on assimilating different cultural groups into the dominant British Australian traditions. Australia is a collectivity of diverse peoples living in a relatively young society. However, the divisions within the nation continue to find expression in public life, arising from social differences in race, ethnicity, social class, and gender. Although the impact of environmental variation is highly evident in the traditional cultures of indigenous Australians, it has not been as strong a factor in immigrant cultures.The most significant lifestyle differences are affected primarily by variations in climate. Australia has six states ,Western Australia, South Australia, Victoria, Tasmania, New South Wales, Queensland, and two territories ,the Northern Territory and the Australian Capital Territo ry, majority of the population lives in urban areas around the coast. . The dominant language since colonization has been English, with little multi-lingualism among the majority population. Australia’s culture can be more likely said to be cosmopolitan.Factors that have shaped the national culture include the early small female population relative to that of men, which is said to have laid the foundations for a widespread ideology of mateship. The involvement of Australian and New Zealand troops in World War I has been characterized as the symbolic birth of the nation. Australia is a modern trading nation and it is a diversified and reliable supplier of high quality goods and services to over 200 countries with a sophisticated import market for products from all over the world.The main reason for all this is the due to Australia’s dynamic and efficient sea and air ports along the extensive coastline which allows massive amounts of iron ore, coal and array of other nat ural resources to be shipped. Technological Environment; The benefits of e-commerce to the economy in terms of reduced costs, higher quality, new products and larger markets are significant highlights in a country’s international business. Recent surveys show an increase in national output, real investment, consumption, real wages and employment.Australia is one of the world’s most connected countries, estimated revenues of business-to-business e-commerce in Australia for 2000 was over US$2. 3 billion, ranking higher than Taiwan, South Korea, Hong Kong and Singapore. Regions or regionally based businesses are more likely to succeed in the global market if they are major investors in new technology, export focused and competent in the use of IT and e-commerce. Mobile banking. Information and communications technology is a key driver of Australia’s strong economic growth and innovation. Based on this technology is most of Australia’s high budget business.Si nce in today’s world time factor is one of the most important factors in man’s life and time management is one of the key factors that most business magnets fail. Information technology is like a boon to all these people because it does half the work a particular individual has to do, man power is substantially balanced whereas if a man had to do each and every thing in a international business it would take ages for him to get through to all of that. For eg†¦In Australia and most European countries computerized systems are looming up in supermarkets, petrol stations, malls, banks etc.The technological background in Australia is one of its advantages when it comes to international business according to reports and business publications. Internet and e-commerce have boosted the international competitiveness of Australian businesses. Many Australian firms are now using internet technology to expand into new foreign markets, almost all of the enterprises are increasi ngly using e-commerce because it only requires low overheads and comparatively less initial outlay of capital but leading to a fast turnover on investment.According to surveys about 94 per cent of large businesses and 60 per cent of medium businesses in Australia had a website in 2006, while there was over 37 per cent of online purchase in all types of business. The percentage of all businesses receiving orders online in the same period was 21 per cent. In 2006–07, out of the 11. 3 million people who accessed the internet in Australia, 61 per cent used the internet to for online purchase or to order goods and services. Income for Australian business from internet increased from $24. 3 billion in 2002-03 to $56. billion in 2005-06 Legal Background Australian assistance gives priority to law enforcement, intelligence cooperation,transport security ,legal frameworks,countering terrorist financing and preventing terrorists access to nuclear materials. Australia has a sound and pr actical structure of financial regulations and institutions that provides certainty for business and is open to investment without undue delay. This is a advantage when it comes to international business because it makes investors more comfortable in relying and in turn make large investments.Even for investors and businessmen from other countries Australia’s business law is flexible and makes the procedure of opening up a business simple and easy to achieve for one and all. There is a strong, transparent governance system along with business oriented regulation and insolvency regimes. According to the World Bank a new business can be established in Australia within two days compared with an average of 20 days in most of the other countries. Need an essay? You can  buy essay help  from us today! IntroductionThe country analysis report on Australia provides a wide array of analytical inputs to analyze the country’s performance, and the objective is to help the reade r to make business decisions and prepare for the future. The report on Australia analyzes the political, economic, social, technological, legal and environmental (PESTLE) structure of Australia. The report provides a holistic view of Australia from historical, current and future perspective. Insightful analysis on critical current and future issues is presented through detailed SCPT (strengths, challenges, prospects and threats /risks) analysis for each of the PESTLE segments.In addition, the PESTLE segments are supplemented with relevant quantitative data to support trend analysis. The PESTLE country analysis report series provides an in-depth analysis of 50 major countries. Features and Benefits – Understanding gained from the country analysis report on Australia can be used to plan business investments or market entry apart from a holistic view of the country. – Political section on Australia provides inputs about the political system, key figures in the country, an d governance indicators. Economic section on Australia outlines the economic story of the country to provide a balanced assessment on core macro-economic issues. – Social section on Australia enables understanding of customer demographics through the income distribution, rural-urban segmentation and centers of affluence, healthcare and educational scenario in the country. – Technological section on Australia provides strategic inputs on information communications and technology, technological laws and policies, technological gaps, patents data and relevant laws. Legal section on Australia provides information about the legal structure, corporate laws, business set-up procedures and the tax regime. – Environmental section provides information on environmental policies in Australia and the performance in terms of important environmental indicators. Highlights PESTLE analysis of Australia identifies issues that affect the country’s performance through the pr ism of current strengths (strengths), current challenges (weaknesses), future prospects (opportunities) and future risks (threats). The political landscape discusses the evolution of the political scenario in Australia in different periods.The economic, social, foreign and defense policies are considered in the political landscape section. It also discusses the performance of the country as per World Bank Governance Indicators. The economic landscape describes the evolution of the economy of Australia in different periods. It also examines the country’s performance in terms of GDP growth, composition by sector (agriculture, industry and services), fiscal situation, international investment position, monetary situation, credit disbursement, banking sector and employment.The economic landscape also explains the financial system in the country, especially with regard to financial authorities/regulators. The social landscape covers the demographics, education and healthcare scena rio in Australia. The social welfare policies of the government along with the country’s performance in terms of healthcare, income distribution and education are also provided. The technological landscape discusses the structure and policies in terms of Intellectual property, research & development, technology agreements/pacts; and policies related to the promotion of technology in Australia.The legal landscape examines the structure of the judicial system, legislation affecting businesses, tax regulations, labor laws, trade regulations and corporate governance in Australia. The environmental landscape in Australia discusses the environmental regulations and policies of the country. The performance of the country in terms of in terms of environmental indicators and impact of environmental policies is also examined. â€Å"The Australian economy grew at a CAGR of more than 3% a year during 1991–2008, but then slumped to 1. 3% in 2009. The economy was unaffected by the global slowdown in 2001, and grew at a significant rate of 2. %. The economic growth rate did not significantly decline even when the country was hit by the worst drought in its history in 2003, as it dropped from 3. 6% in 2002 to 3. 5% in 2003. The buoyant growth was driven by sound macroeconomic policies and fiscal prudence. The growth rate increased to 3. 8% in 2007 from 3. 0% in 2006. However, the growth momentum decelerated to 2. 3% in 2008 because of the global financial slowdown, and then slowed further to 1. 3% in 2009. Following this, 2010 saw the economy rebound with growth of 3. 0%. According to Datamonitor's forecast, the economy is expected to grow by 3. 5% in 2011. â€Å"Your key questions answered – What is the outlook in terms of political stability, policies towards businesses, external front and popularity of government in Australia? – What is the economic performance of Australia in terms of GDP growth, fiscal situation, international investment pos ition, monetary situation, credit disbursement, and employment among other economic indicators? – What is the performance of Australia in terms of healthcare, income distribution and education? – What is the performance of Australia in technology intensive sectors like telecommunications and information technology, patents and R&D expenditure trends? What is the legal structure in Australia and are the laws conducive for investment? – What is the performance of Australia in terms of environmental indicators and impact of environmental policies? ————————————————- How to Create a Pestle Analysis Template 15DEC The  PESTLE analysis  is the analysis of the environment as a whole in which abusiness  operates or tends to offer its trade. These are systematic factors that are beyond ones control and businesses need to chart out strategies keeping the re sults in view to peacefully coexist and keep on gaining revenues despite the concurrent situation.It is of utmost importance to understand in depth the meaning of  PESTLE  and how every letter of the acronym represents an important aspect of the environment your business is in. PESTLE stands for: * P for Political * E for Economic * S for Social * T for Technological * L for Legal * E for Environmental The political factors account for all the political activities that go on within a country and if any external force might tip the scales in a certain way. They analyze the political temperament and the policies that a government may put in place for some effect.For example, the fiscal policy, trade tariffs and taxes are those things that a government levies on traders and organizations and they greatly alter the revenue that is earned by those companies. The economic factors take into view the economic condition prevalent in the country and if the global economic scenarios might make it shift or not. These include the inflation rates, foreign exchange rates, interest rates etc. All these can affect the supply and demand cycle and can result in major changes of the business environment. Social factors have to do with the social mindset of the people that live in a certain country.This sums up the aspect of culture, age demographics, gender and its related stereotypes, at times this analysis has to include the religious factors (when pertaining to products or services of a different kind). Technological factors take into consideration the rate at which technology is advancing and how much integration does a company needs to have with it. Legal factors have to do with all the legislative and procedural components in an economy. Also, this takes into account certain standards that your business might have to meet in order to start production/promotion.Environmental factors have to do with geographical locations and other related environmental factors that may i nfluence upon the nature of the trade you’re in. For example, agri-businesses hugely depend on this form of analysis. PESTLE analysis template This is a  template  that allows a company to understand what basics are required to conduct the analysis onto the environment. It combines all the representative factors in one table, and then you need to analyze based on the current market situation. Here is a comprehensive list of headings that one must look toward while carrying out the analysis on a market. . Political factors: * Trading policies * Government changes * Shareholder and their demands * Funding, * Governmental leadership * Lobbying * Foreign pressures * Conflicts in the political arena 2. Economic factors: * Disposable income * Unemployment level * Foreign exchange rates * Interest rates * Trade tariffs * Inflation rate * Foreign economic trends * General taxation issues * Taxation changes specific to product/services * Local economic situation and trends 3. Soci al factors: * Ethnic/religious factors * Advertising scenarios * Ethical issues * Consumer buying patterns Major world events * Buying access * Shifts in population * Demographics * Health * Consumer opinions and attitudes * Views of the media * Law changes affecting social factors * Change in Lifestyle * Brand preferences * Working attitude of people * Education * Trends * History 4. Technological factors: * Technological development * Research and development * Trends in global technological advancements * Associated technologies * Legislations in technological fields * Patents * Licensing * Access into the technological field * Consumer preferences * Consumer buying trends Intellectual property and its laws * How mature a certain technology is * Information technology * Communication 5. Legal factors: * Employment law * Consumer protection * Industry-specific regulations * Competitive regulations * Current legislation home market * Future legislation * Regulatory bodies and their processes * Environmental regulations 6. Environmental factors: * Ecological * Environmental issues * International * National * Stakeholder/ investor values * Staff attitudes * Management style * Environmental regulations * Customer values * Market value

The Hunters: Moonsong Chapter Ten

The pub where Elena and Damon ended up was lively and ful of people, but of course Damon made sure they didn't have to wait for a table. He lounged across one side of the booth, looking as arrogant and relaxed as a big gorgeous cat, and listened peaceably as Elena talked. Elena found herself gaily chatting away, fil ing him in on al the minutia of her campus life so far, from finding out that Professor Campbel knew her parents to the personalities of the other students she'd met in her classes. â€Å"The elevator was real y crowded, and slow, and my lab partner's back was against the buttons. Somehow she accidental y pushed the alarm button, and the alarm started going off.† Elena took a sip of her soda. â€Å"Suddenly, a voice came out of nowhere and asked, ‘Do you have an emergency?' And she said, ‘No, it was an accident,' and the voice said, ‘What? I can't hear you.' It went on like that, back and forth, until she started shouting ‘Accident! Accident!'† Damon stopped tracing patterns in the condensation on his glass with one finger and glanced up at her through his lashes, his lips twitching into a smile. â€Å"When the doors opened on the ground floor, there were four security men standing there with a medical kit,† Elena finished. â€Å"We didn't know what to do, so we just walked past them. When we got out of the building, we started to run. It was so embarrassing, but we couldn't stop laughing.† Damon let his slight smile expand into a grin – not his usual cool twist of the lips or his brief, bril iant, and enigmatic there-then-gone smile, but an honest-to-God cheek-puffing, eye-squinching grin. â€Å"I like you like this,† he said suddenly. â€Å"Like what?† Elena asked. â€Å"Relaxed, I suppose. Ever since we met, you've been in the middle of some crisis or another.† He raised his hand and brushed a curl away from her face, gently touching her cheek. Elena was vaguely aware of the waiter standing by the booth, waiting for them to look up, as she answered with just a touch of flirtation, â€Å"Oh, and I suppose you had nothing to do with that?† â€Å"I wouldn't say I am the one who's been most to blame, no,† Damon said cool y, his grin fading. He looked up, his eyes sharp and knowing. â€Å"Hel o, Stefan.† Elena froze in surprise. Not the waiter, then. Stefan. One look at him, and she winced, her stomach dropping. His face could have been carved from stone. He was looking at Damon's hand, stil stretched across the table toward Elena. â€Å"Hey,† she said tentatively. â€Å"How was your study group?† Stefan stared at her. â€Å"Elena, I've been looking everywhere for you. Why didn't you answer your phone?† Pul ing out her phone, Elena saw that there were several messages and texts from Stefan. â€Å"Oh, no, I'm so sorry,† she said. â€Å"I didn't hear it ring.† â€Å"We were supposed to meet,† Stefan said stiffly. â€Å"I came to your room and you were just gone. Elena, people have been disappearing al over campus.† He had been scared, afraid that something terrible had happened to her. His eyes were stil anxious. She started to reach out to comfort him. The fact that she'd lost the Power she'd had so briefly was hard for Stefan to accept, she knew. He thought her mortality made her fragile, and he was afraid he'd lose her. She should have thought it through, should have left him more of a message than a quick text saying she would return soon. Before she could touch him, Stefan's gaze turned to Damon. â€Å"What's going on?† he asked his brother, his voice ful of frustration. â€Å"Is this why you fol owed us to col ege? To zero in on Elena?† The look of hurt that crossed Damon's face was only a subtle shadow and was gone so quickly that Elena wasn't entirely sure she had actual y seen it. His features settled into an expression of lazy disdain, and Elena tensed. The peace between the brothers was so fragile – she knew that – and yet she had let Damon flirt with her. She'd been so stupid. â€Å"Someone should be keeping her safe, Stefan,† Damon drawled. â€Å"You're too busy playing human again, aren't you? Study groups.† He lifted an eyebrow scornful y. â€Å"I'm surprised you've even noticed that there's something going on around this campus. Would you rather have Elena alone and in danger than have her spending time with me?† Tense lines were forming around Stefan's mouth. â€Å"You're saying you don't have an ulterior motive here?† he asked. Damon waved a hand disparagingly. â€Å"You know what I feel for Elena. Elena knows what I feel for Elena. Even that sports-loving Mutt of yours knows how things are between us. But the problem isn't me, little brother – it's you and your jealousy. Your wanting to be an ‘ordinary human'† – Damon made quote marks with his fingers – â€Å"and stil carry on with Elena, who is hardly ordinary. You want to have your cake and eat it, too. I haven't done anything wrong. Elena wouldn't have come with me if she didn't want to.† Elena winced again. Was this the way it was always going to be? Was any minor misstep on her part going to set Damon and Stefan at each other's throats? â€Å"Stefan†¦ Damon,† she implored, but they ignored her. They were glaring at each other. Stefan stepped closer, flexing his fists, and Damon clenched his jaw, silently daring Stefan to make a move. For the first time, Elena saw a resemblance between them. â€Å"I can't do this,† she said. Her voice sounded smal and soft to her own ears, but both Salvatore brothers heard her and whipped their heads toward her with inhuman speed. â€Å"I can't do this,† she said again, louder and more firmly this time. â€Å"I can't be Katherine.† Damon scowled. â€Å"Katherine? Believe me, darling, nobody here wants you to be Katherine.† Stefan, his face softening, said, â€Å"Elena, sweetheart – † Elena interrupted him. â€Å"Listen to me.† She wiped her eyes. â€Å"I've been walking on eggshel s, trying to keep this – this thing between the three of us from tearing us apart. If anything good has come out of al the stuff that's happened, it's that you found each other, you started being brothers again. I can't – † She took a deep breath and tried to find a sensible matter-of-fact voice somewhere inside herself. â€Å"I think we should take a break,† she said flatly. â€Å"Stefan, I love you so much. You're my soul mate, you're it for me. You know that.† She looked up at him pleadingly, silently begging him to understand. Then her eyes moved past him to Damon, who was staring at her with a furrowed brow. â€Å"And Damon, you're part of me now. I †¦ feel for you.† She looked back and forth between them, her hands clutching each other. â€Å"I can't lose either of you. But I need to figure out who I am now, after everything that's happened, and I need to do it without worrying about destroying the relationship between you. And you need to figure out how you can be friends with each other, even if I'm in both of your lives.† Damon let out a skeptical noise, but Elena kept talking. â€Å"I'l understand† – she gulped – â€Å"if you can't wait for me. But I wil always, always love you. Both of you. In different ways. But for now, I just can't be with you. Either of you.† She was tearing up again, and her hands shook as she wiped her eyes. Damon leaned across the table, a smal twisted smile hovering on his lips. â€Å"Elena, did you just break up with both of us?† The tears dried up instantly. â€Å"Damon, I never dated you,† she said angrily. â€Å"I know,† he replied, and shrugged. â€Å"But I've definitely just been dumped.† He glanced at Stefan, then quickly away, his expression closed off. Stefan looked devastated. For a moment, his face was so bleak that it wasn't hard to believe he was more than five hundred years old. â€Å"Whatever you want, Elena,† he said. He started to reach for her, then pul ed his own hand back to his side. â€Å"No matter what, I wil always love you. My feelings aren't going to change. Take whatever time you need.† â€Å"Okay,† Elena said. She stood up shakily. She felt like she was going to be sick. Half of her wanted to pul Stefan to her, kiss him until that broken expression on his face went away. But Damon was watching her, his own face inscrutable, and touching either of them felt †¦ wrong. â€Å"I need to be by myself for a while,† she told them. At any other time, she knew, both of them would have objected to the idea of her walking the campus alone. They would have argued, fol owed her if she wouldn't walk with them – anything to keep her safely under their protection. Now, though, Stefan moved aside to let her out of the booth, his head bowed. Damon sat very stil and watched her go, his eyes hooded. Elena didn't look back at them as she crossed to the door of the pub. Her hands were shaking, and her eyes were brimming with tears once more. But she also felt as if she'd carried something very heavy for a while and had final y been able to put it down. This might be the best choice I've made in a long, long time, she thought. Dear Diary, Every time I remember the look on Stefan's face when I told him I needed space, my chest aches. It's like I can't breathe. I never wanted to hurt Stefan. Never. How could I? We're so close, so wrapped up in each other that he's like a piece of my soul – without him, I'm not complete. But†¦ I love Damon, too. He's my friend – my dark mirror image – the clever, plotting one who will do whatever it takes to get what he wants, but who has a kindness deep inside him that not everybody sees. I can't imagine living without Damon, either. Stefan wants to hold on to me so tightly. He cares for his brother – he does – and Damon cares for him, too, and having me between them is messing that up. All three of us have been held so closely together by the crises we've had to deal with recently – my death and rebirth, Klaus's attack, Damon's return from the edge of death, the phantom's attack – that every move we've made, every thought we've had, has been wrapped up with the other two. We can't go on like this. I know I've done the right thing. Without me between them, they can become brothers again. And then I can sort out the tangled threads of my relationships with both of them without having to worry that any move I make will snap the tenuous bond between us. It's the right decision. But still, I feel like I'm dying a slow death. How can I live for even a little while without Stefan? All I can do is try to be strong. If I just keep going, I'll get through this time. And in the end, everything will be wonderful. It has to be.

Predatory pricing of petrol Essay

Supermarket price wars are putting Britain’s small petrol stations out of business at the rate of one a day. Sainsbury’s, Tesco, Asda and Morrisons have this year embarked on a war to attract hard-hit consumers and the price of fuel has been central to their campaign. Morrisons is offering loyalty points on its new fuel card while Asda has launched a price comparison app for mobile phones to convince shoppers it has the cheapest fuel. Both Sainsbury’s and Tesco have offered money-off vouchers for petrol customers. The Retail Motor Industry Federation (RMI), a trade association representing the interests of 6 000 small petrol stations, is hoping the OFT inquiry will support its members, who believe that unfair and predatory pricing by the supermarkets and some major oil companies is making it impossible for them to compete. There are now about 8 000 small petrol retailers compared with 21 000 two decades ago and 40 000 in 1966. It predicts that in five years there will be very few independent petrol retailers left. The OFT inquiry comes at a time when the supermarkets have proved particularly effective at building up a huge stake in the petrol market. With the recession dragging on, households are keen to save even one or two pence a litre, particularly those families whose livelihoods depend on the use of a car. Between June 2007 and June 2012 – a period that saw  considerable crude oil price volatility – the price of petrol rose by 38% while diesel rose by 45%. In 2011, supermarkets accounted for 45% of total fuel sales from just 1 316 sites compared with 37.4 % in 2010. The OFT said the fuel market for Britain’s 33 million motorists is worth around  £32 billion a year, and accounts for 5p in every  £1 of household expenditure. But many have also blamed the Government and increases in fuel tax for soaring petrol prices. It takes 60% of the price of every litre of petrol in tax – the highest rate in Europe.

Fashion and consumer culture Essay Example | Topics and Well Written Essays - 3250 words

Fashion and consumer culture - Essay Example The essay "Fashion and consumer culture" discusses the role of consumer goods and services. According to the domain of social psychology, fashion products represent symbolic attributes that speak volumes about an individual’s position in life in regards to income, trend-consciousness, and social group membership. It is the symbolism projected by fashion attire that largely dictates the level to which an individual moulds their lifestyle against social group affiliation needs. On the other hand, the question as to whether fashion is a symbolic methodology to ensure a degree of individualism is raised. Symbolic purchases represent a status representation reflecting socio-economic background or peer group affiliation, thus theoretically it is the social environment that determines fashion consumption. Is fashion consumption solely based on social attachment or is fashion a break from pre-established social norms to project individual innovation and creativity as the dominant reas on for consumption? However, research identifies that fashion consumption is more closely related to social affiliation, an assumption based on characteristics in the real-world fashion marketplace that point toward the psychological mechanisms of social group identity. Based on differing viewpoints, the question is raised as to whether fashion consumption is solely individualistic or based on social factors that influence buying behaviours. This paper explores how either individualism or social factors influence social lives.

Chief ethical problem(s) Essay Example | Topics and Well Written Essays - 750 words

Chief ethical problem(s) - Essay Example My professional life still is not confined to one particular professional field, but in all its manifestations it assumes the existence and the necessity of such personal quality as leadership. Under the leadership I mean the ability and the right of me as a social person to lead a group of other like-minded people towards achieving our mutual goal. Thus I understand my goal as a leader is in creation and realization of effective opportunities in noble ways. Only by using honest and justified instruments while being guided by such human values as respect and confidence, my impact as a leader would be long-termed. Thus, I use professional ethics in everyday life in order to choose what to do while facing a moral issue problem. Using own experience I may say some words about my personal method of aiming at the best solution in the field of leadership. As you’ve already understood, I have a kind of moral rules set to use in any situation. First of all, I must be sure in society usefulness (not just personal) of what I am doing. Secondly, I must be responsible and sensitive to possible outcomes of my professional activities. That is why I must follow the principle of "competence", which emphasizes that I should be only involved in those professional activity areas in which I have the knowledge, skills, training and experience. These basic ethical principles can be specified for different areas of professional activity by every decent person. But the main trait for leader at any professional field is being a good communicator. You should be able not just to express yourself well both in speaking and in writing, you must remember that a good communicator is a good listener, so you should be very attentive to people you are surrounded as well as to their problems. True leader should be able to support everybody in the company administrating mechanism if it really needs help. And the most important attribute for leader is being critical towards

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

Fiber - Essay Example However, with advances in the scientific field the various health benefits of fiber were identified. Hence regular consumption of generous amounts of dietary fiber in the diet has been proven to reduce the risk for developing several diseases such as coronary heart disease, diabetes, obesity, blood pressure, gall stones, diseases of the colon and it has also been found to boost the immune system (Dietary fiber, 1996; Anderson et al, n.d). Research studies have revealed that people consume less than the recommended levels of dietary fiber. The amount of dietary fiber intake depends on the age, gender and total calorie intake (Anderson et al, n.d). The major advantage provided by dietary fiber is the presence of a mixture of bio-molecules along with the fiber which may include vitamins, minerals or phytochemicals which actually contribute to protection against diseases (Dietary fiber, 1996). The occurrence of cardiovascular diseases such as coronary heart disease, stroke and hypertension which affects a majority of the population worldwide can be effectively reduced by consumption of sufficient amounts of dietary fiber. Fiber reduces the risk factors associated with cardiovascular diseases such as diabetes, obesity and dyslipidemia. Many studies beginning from 1982 have proven the effect of dietary fiber intake, especially the whole grains, on the risk of cardiovascular disease (Dietary fiber, 1996; Anderson et al, n.d ; Rosamond, 2002). While the exact mechanism by which dietary fiber reduces the risk of heart diseases is not known, it is however, found to effect serum cholesterol and LDL-cholesterol levels by binding to bile acids in the small intestine and thus increasing their elimination from the body via feces (Dietary fiber, 1996; Anderson et al, n.d). In addition, dietary fiber also has an advantage of low-cost can be beneficial to all classes of

A raisin in the sun Essay Example | Topics and Well Written Essays - 750 words

A raisin in the sun - Essay Example Even though Beneatha is the one with the college education, Mama is the more worldly and intelligent of the two. It may not be book intelligence, but it is the kind of knowledge about life and the world that makes someone wise. Mama has the kind of intelligence and knowledge that comes with having lived a long life full of various experiences. â€Å"There is always something left to love. And if you ain’t learned that, you ain’t learned nothing (145, individual).† This comes after Beneatha makes a comment that she can no longer love her brother after he messed up the way he did with their money. Mama, though also upset by the situation and where it has led the family, is more wise to understand that people make mistakes and that this is no reason to love them any less. Beneatha also believes that her type of intelligence makes her more wiser than her mother. Mama strives to bring respect into her household regardless of the situation or the person. This is seen especially during the debacle with the welcome man from the neighborhood that they want to move into. Mama tries to respect the gentleman and the news he has to bring, understanding the closed-mindedness of some people during that day and age, but she also tries to keep respecting herself and her family. â€Å"And you’ve stopped caring?† â€Å"Yes - I think so (133).† As the world crumbles, Beneath loses respect for everybody - her brother, her mother, and humanity as a whole. Mama just finds this as an opportunity to grow. Again, Beneatha is unable to see eye-to-eye with Mama. In the Younger household, Mama is the sole caretaker, tending to everybody at once. For the most part, the other members of the household try to put the others before themselves. Beneatha, on the other hand, focuses only on herself. While the family slowly collapses around her, she can only take notice to the fact that her education might suffer.

Cooperative Learning (Grade 1 to Grade 12) Essay

Cooperative Learning (Grade 1 to Grade 12) - Essay Example Cooperative efforts this way result in participants striving for mutual benefits so that all the members are gaining by the work of every individual. It also helps to inculcate a sense of responsibility among individuals because they know their work and contribution will affect the outcome that is important for all the members. The group members also know that all of them will share the same fate no matter how they work, therefore they work intently and encourage others in the group to work in the same way. Last but not the least, celebration after the successful completion of the task is also mutual and everyone soul from the group is happy and proud of themselves. Group activities also help in the refining of the outcomes of the tasks because there is shared knowledge, expertise and hard work that everyone is putting in. Obviously not everyone has all the knowledge in the world. In cooperative learning situations there is a positive interdependence among students' goal attainments; students perceive that they can reach their learning goals if and only if the other students in the learning group also reach their goals (Deutsch, 1962; Johnson & Johnson, 1989). Learning goals may be structured to promote coo... e reason being that in today's world, individuals are expected to work together in teams for the accomplishment of tasks which is a tedious job if one doesn't possess the qualities required to work in groups with each other. However, competitive situations are present in which individuals work against each other to achieve one particular goal that only one or few of them can attain. In competition there is a negative interdependence among goal achievements; students perceive that they can obtain their goals if and only if the other students in the class fail to obtain their goals (Deutsch, 1962; Johnson & Johnson, 1989). The presence of competitive situation is equally important in this world. However, the disadvantage is that either they work too hard to beat their class mates or they don't work at all thinking that they don't stand a chance. Elements of Cooperative Learning The essential components of cooperation are positive interdependence, face to face promotive interaction, individual and group accountability, interpersonal and small group skills and group processing (Johnson, Johnson, & Holubec, 1993). It is under certain conditions that should be present for cooperative learning to be more effective than individualistic and competitive learning. Positive interdependence is when every individual possesses some unique ability or knowledge that contributes in the outcome of the task and the efforts are required and indispensible for the group success. Face to face interaction involves orally presenting and promoting ones ideas to everyone in the group, teaching current knowledge to everyone and discussing the concepts that are being learned so that they can be effectively applied by every individual present in the group. Group accountability should be present

Constitutional significance of Article 1, section 8 of the United Research Paper

Constitutional significance of Article 1, section 8 of the United States Constitution - Research Paper Example In a detailed manner, article 1 section 8 of the US Constitution specifies the powers of the Congress. The section lists the powers of the Congress in addition to bestowing the Congress with the power to make rules that are deemed â€Å"necessary and proper† and to oversee their implementation. In the section, the law making powers are stipulated in the states. Among the core powers that are enumerated in article one section eight is the power to set taxes, tariffs and other ways of generating federal revenue. The section also gives the Congress the power to authorize the expenditure of all the federal funds (Law & Versteeg, P. 87). Article 1, section 8 of the Constitution gives the Congress the power to create postal services, Navy, Army, lower federal courts, the power to coin money and the power to declare war. The Congress is also bestowed with the power of determination of naturalization criteria on how immigrants could become citizens of the United States. This power is thus beyond interference by any individual states. The duties of regulating international commerce, provision for the punishment of counterfeiting and the promotion and progress of science and are equally significant duties and powers the Constitution grants to the Congress (Law & Versteeg, P. 88). According to the National constitution center, article 1 section 8 of the United States’ constitution has an immense constitutional significance. The article and section purposes to ensure that the federal government through the Congress maintains its validity in the country. By giving the Congress the core powers of determination of revenues for the country and mechanism of spending the funds, the constitution attempts to maintain the significance of unity within the states of the US. Through giving the Congress the power to constitute armies and Navy, the

With reference to pierre and peters (2000) and Kjaer (2004) critically Essay

With reference to pierre and peters (2000) and Kjaer (2004) critically assess debates about public sector and government reform d - Essay Example Presently, the core objective centres on enhancing efficiency within the public service delivery and delivering more customer-attuned services to citizens. Interestingly, one of the radical changes witnessed within the public sphere has been transforming state-centred societies into less-state-centred. Proponents of public reform claim that governments are inherently ineffective, large, inefficient, expensive, highly bureaucratic, unresponsive to public wants and needs, self-serving, invasion into private rights of citizens, and failing within the provision of services rendered to the taxpaying public. The paper explores debates regarding the public sector and government reform during the last two decades. At the centre of this reform has been the drive towards the managerial reform propelled by the notion that the public sector flows from the wrong principles, which, in turn, necessitates reinvention and institutional renewal. These reforms generated all forms of promises including minimal intervention by the government and the decentralization of the government, enhanced efficiency and effectiveness within the public sector, and enhanced accountability and responsiveness of the public service to the citizens, greater choice between the public and private providers of public services, and â€Å"entrepreneurial† public sector more willingly and capable of working with business, and better economic performance (Raadschelders 2003, p.235). Discourse on Governance Governance manifests a number of features such as involvement of actors and institutions that surpass the formal government; the blurring of the boundaries and responsibilities for public policy; horizontal power dependence between the diverse institutions; and, the rising importance of autonomous networks, all of which yield enhancing government’s capability to attain results based on indirect instruments other than command or authority. Donor-directed discourse on governance spotlight sta te structures fashioned at guaranteeing accountability through the process of law, and state market relations. Academic-centred discourse on governance, on the other hand, remains distinctly focused on diverse ways through power and authority relations structured within diverse contexts. Literature on governance presents two lines of argument: the substantive character of governance (which relates to perceiving governance as representing the steering or control of public affairs) and the character of governance in practice (governance relating to performance, action, and results) (OECD 2001, P.149). Good governance essentially applies substantial requirements within the decision-making process, as well as in the formulation of public policy. The concept of â€Å"good governance† delineates a set of political requirements embraced within early 1990s by a majority of international development institutions as part of ‘new orthodoxy’ highlighting that ‘most soc ieties typified by open markets, capable administrators and liberal-democratic societies promote growth and development, and also guarantee peace (Peters and Pierre 2012, p.562). Attaining good governance necessitates improvements that touch almost of all aspects relating to the public sector right from the institutions that shape the rules for political and economic interaction, to organizations that control administrative systems and deliver goods and services to citizens. Furthermore, obtaining good governance sometimes relates to effecting changes within the political organization, the representation of interests, and processes critical for public debate and policy decision-making (Kjaer 2004, p.5). This necessitates managing public affairs in an accountable, transparent, participatory, and efficient way, which necessitates

Art and Humanities Essay Example for Free

Art and Humanities Essay The Music I associate with from my early childhood would be so many different songs from like the alphabet songs. When I grew up we were not allowed watching TV so much in the 70’s. But we watched some cartoons like the Surf’s on Saturday mornings; I still remember the song Fa-la-la-la. I grew up listing to reggae and oldies but goodies music on my parents little radio in the living room. When I hear these songs I have a smile on my face. It always reminded me when my children was listening to some of the same kind of music either on Television or radio or when they watched cartoons like Old MacDonald or Bitsy Spider with the same good old folk rhymes. As I got older I remember listening to bands like the S. O. S. , Dazz band. My mom always made me play her cassette deck with her oldies or reggae music while she cleaned the house top to bottom. She always danced around while she was cleaning and it made cleaning looked like so much fun. And to this day if I help my wife with house chores I listen to the same kind of music then my mother was listening to. My daughter is the exact same way; she plays music all the times. The Music I associate with my adolescence is RB disco music from the 1980’s and 90’s. I loved mostly all of them and I would listen to any songs â€Å"I want to be your man† by Rogers or Keith Sweat â€Å"Make it last forever†, â€Å"Between the sheets† by The Isley Brothers, I could just go on and on. I went through many phases where I start listening to Madonna or country music and different artists like them, but I believe it had something do to with being a young boy growing up. Up to this day I could listen to all the same artists, bands or songs and think about the carefree days I had and being a high school boy being crazy with all my friends. But there was a time in my life where I was real crazy and just listening to rap music and started using the bad words and believe me that was not for long because my mother got rid of all my rap music quickly. And now if my children would listen to some rap music I tell them please not in my home. When it comes to comfort in music I always find myself going back and listen to oldies or reggae that was always  playing when my mother was cleaning the house. It was an everyday thing for my mom because it seemed that our home was never clean enough for her because we were six children coming in from football fields dirty or the backyard. But anytime I came into the house the same oldies or reggae music was playing, it was either Bob Marley† Buffalo Soldiers† or the oldies song† Let’s stay together† by Al Green When I have a bad day or just want to relax I find myself sitting down and turn on music and listen to the 70’s or 80’s songs, because that is what gets my head clear and then I can focus again. Happiness is a mood I would associate with songs or music that has a good rhythm and has a positive message. The song that makes me happy is â€Å"Buffalo Soldiers† by Bob Marley just like my mother, she would play that song over and over again. I would say that every genre and style of music has it songs that are happy, sad, comforting, depressing, fun and any other mood or feeling one could have. This is not because of how the song really sounds or the way it’s played, it’s the meaning from the lyrics. But the listener interprets the song in a way that only you can relate to. That is why music is so important to me because it can be a musical time line of our memories. I will always remember the music I grew up with and all the god times I had as a child and this is what I took into my Adulthood. In my life, music has been a constant, ever changing magical and amazing adventure. Music has always been a part of an everyday life for so many years and so many more years to come, because no matter if we understand the music that the one likes or not it does not matter to us. All we need to know is what we like and what impact music has on us. Music may make a person happy or sad because of the memories they re-live. No matter what it might be you must know that music is needed and wanted. References: Altschuler, R. J. (2009). The Art of Being Human: The Humanities as a Technique for Living. Retrieved from: www. youtube. com/watch? v=S5FCdx7Dn0o Retrieved from: www. youtube. com/watch? v=RCcg7ctrC4w.

Figuring Fixed Costs Essay Example for Free

Figuring Fixed Costs Essay 10.1 The highest number of meals served was 4,900 in December, with the lowest of meals being 3,500 in July making a difference of 1,400 of meals served, between the two months. The cost per meal variable is 1400à ·$5500.00 for a total of $3.93 (WHDM’s) fixed cost is computed as follows $20,500.00-(3,500*$3.93) =$6,745.00 According to the following â€Å"formula: PX=A+Bx 5.77x=$6,745+$3.93† 5.77-$3.93=$6,745+ ($3.93-$3.93) 1.84x=$6,745 1.84x*1.84x=$6,745*1.84x â€Å"X=3,666 Monthly BEP 3,666*12= 43,992 BEP for the fiscal year† (Oppapers.com, 2012), for the Westchester Home- Service Meal Delivery program, since the program received 45,000 meals to serve and only needed 43,992 of them their profit is going to come from selling the other 1008 meals at a . 84 per meal making a profit of $1,854.72. 10.2 NRCC and Its BEP Annual revenue = $20.00 per subscription Annual variable rise for â€Å"making and mailing six bimonthly issues has risen 4.50 â€Å"(Martin, L., 2001) (NRCC) annual fixed cost is 6,000 + 3,900 = 9,900 Per subscription (NRCC’s) annual margin would be 20-4.5 for a total of 15.5 Making their BEP as follows 9,900/15.5 equaling 639 PX = A+Bx 20x=6,000+3,900+4.50x 20x=9,900+4.50x 20x-4.50x=9,900+ (4.50x-4.50x) 15.5x=9,900 15.5x/15.5x=9,900/15.5x X=639 No way is this feasible, because there are two staff members, who are all ready at the maxim capacity of 650, leaving no capacity for any kind of slack. References: Martin, L. (2001). Financial Management for Human Services Administrators. Needham Heights, MA: Allyn Bacon http://www.oppapers.com, 2012 http://www.studymode.com,2013 University of Phoenix. (2001). Financial Management for Human Service Administrator. Retrieved from University of Phoenix, HSM 260 website.

The Applications Of Arrow Debreu Model Economics Essay

The Applications Of Arrow Debreu Model Economics Essay According to Elroy Dimson and Massoud Mussavian (1999), Arrow-Debreu model was developed as a model of general equilibrium that has been fundamental to economics and finance. Compared to earlier models, the Arrow-Debreu model basically generalized the notion of a commodity, differentiating commodities by time and place of delivery. For example, apples in Malaysia in July and apples in Singapore in June are considered as different commodities. Kenneth J. Arrow (1951) and Gerard Debreu (1951) work together to produce the first rigorous proof of the existence of a market clearing equilibrium, given certain restrictive assumptions. This field of research has had a profound impact not only on economic science, but also on financial markets, institutions and businesses all over the world. It often used as a general reference for other microeconomic models. As Ramu Gopalan (2008) stated, the pioneering work of Arrow and Debreu has had an enduring effect on the study of financial aspects of the economy in a general equilibrium framework. One of their key contributions is to introduce time and uncertainty into general equilibrium models. The Arrow-Debreu model was established since 1950s, many researchers had extended this model to both economics and financial economics. Although this model is criticized by various eminent economists, the dedication of this model in the history is indestructible. In this assignment, we are going to discuss the applications of Arrow-Debreu model majoring in the financial economics. The purpose of this assignment is to find out and understand more about the contributions of this model to financial theory. The applications of Arrow-Debreu model will be listed out and discussed further. Journals will be shown and summarized out in order to support our discussion. Finally, the last section in this assignment is the conclusion. 2.0 Background studies In this assignment, the applications of Arrow-Debreu model in financial economics will be discussed. But before that we have to know what the Arrow-Debreu model is. 2.1 Arrow-Debreu Model Arrow-Debreu model, also referred as Arrow-Debreu-McKenzie model (ADM model), is the fundamental model used in the General (Economic) Equilibrium Theory. It is named after its originator who are Kenneth J. Arrow (b. 1921) and Gerard Debreu (1921-2004) on Existence of an Equilibrium for a Competitive Economy as well as Lionel W. McKenzie (b. 1919). As what stated in the Farlex Financial Dictionary (2009), it says that this model is one of the most general models of competitive economy and is a crucial part of general equilibrium theory, as it can be used to prove the existence of general equilibrium (or Walrasian equilibrium) of an economy. Once we can prove the existence of such an equilibrium, it is possible to show that it is unique under certain conditions, but not in general. Furthermore, Arrow went on to extend the model to deal with the issues relating to uncertainty, stability of the equilibrium, and whether a competitive equilibrium is efficient. 2.2 Applications of Arrow-Debreu Model Arrow-Debreu model leads to a huge impact on economics and financial economics. First of all, it solves the long-standing problem of proving the existence of equilibrium in a Walrasian (competitive) system. This model analyzes the exact situations of those markets that are very competitive. In economics, Arrow-Debreu model suggests that a set of prices such as aggregate supplies will equal to aggregate demands for every commodity under certain assumptions made about the economic conditions (i.e. perfect competition and demand independence). Formulated in a purely mathematical form, the Arrow-Debreu model can be easily modified into spatial or intertemporal models with proper definition of the commodities based on the commoditys location or time of delivery. When commodities are specified to be conditional on various states of the world, the Arrow-Debreu model can easily combine expectation and uncertainty into the analysis. Besides, theoretical extensions and applications have been made to analyze financial and monetary markets and international trade, as well as other subjects. With a general equilibrium structure, the model is applicable in evaluating the overall impact on resource allocation of policy changes in areas such as taxation, tariff, and price control. Moreover, it applies to all general equilibrium models that are heavily dependent upon accurate mathematical proofs. In the field of financial economics, Arrow Debreu represents a certain kind of securities product which named as Arrow-Debreu security. This distinguished concept is a good teaching tool to understand the pricing and hedging issues in derivatives analysis. On the other hand, the Arrow-Debreu Model is also used in areas like financial engineering. But it has turned out to be very limited, especially in the multi-period or continuous markets. The model has been subject to the criticism that many of the assumptions it makes do not fit the workings of the real economy. However, the truth is that the Arrow-Debreu Model is very important for the derivative industry and helps the industry to grow at a rapid pace. 3.0 Literature Review In previous section, we have mentioned some applications of the Arrow-Debreu model both in the field of economics and financial economics. Now, the applications of this model majoring in financial economics will be discussed further. The functions of Arrow-Debreu model can be divided into six categories, asset pricing model, equity risk premium, corporate finance, Modigliani and Miller Theorem, Arrow-Debreu security and others. 3.1 Asset-pricing model From the studies, most of the Arrow-Debreu models applications are commonly used in shaping the asset-pricing model. Arrow-Debreu model was acted as an origin which gives the insight that consumption in different future states could simply view as different consumption goods according to Elroy and Massoud (1999). This result is proved and can be seen through various researchers journals. It is undeniable that the Arrow-Debreu model plays an important role in constructing the asset-pricing model. The evidences are given in following paragraphs. Based on the journal of Asset Pricing at Millennium written by John Y. Campbell (2000), he stated that theoretical and empirical developments in asset-pricing has taken place within a well establish paradigm for the last twenty years. While the well establish paradigm that he mentioned here is referred to the Arrow-Debreu model. Same as Franklin Allen (2001), he indicated that asset-pricing models are typically special cases of neoclassical Arrow-Debreu model. In the traditional Arrow-Debreu model of resource allocation, firms and households interact through markets and financial intermediaries play no role. On the other hand, the key element of the analysis in the modern version is the stochastic discount factor, which incorporates the Arrow-Debreu state prices and allows the assets to be priced. He also commented that this approach and the focus on the risk-return trade-off have allowed a rich interplay between the empirical and theoretical work. The equity premium puzzle is given as an example of special cases within the Arrow-Debreu framework in order to support his statement. Moreover, Elroy and Massoud (1999) narrated the historical development of asset pricing and derivative valuation on Three Centuries of Asst Pricing. He pointed out the success of conceptual framework that setting up the theory of asset pricing is down to Arrow (1953)s hard work. Dissatisfied with the current Arrow-Debreu framework, Arrow built up a series of contingent claims that follow the resolution of uncertainty to explain how one can achieve markets that are almost complete. Varian (1985) analyzed the impact of divergence of opinion on asset prices in an Arrow-Debreu economy. By considering the Arrow-Debreu model with agents who have different subjective probabilities, he compares and concludes the differences of opinion in an Arrow-Debreu contingent claim context. Based on his journal Divergence of Opinion in Complete Markets: A Note, three results were established. He concluded that in practice, increased dispersion of beliefs will generally be associated with the reduced asset prices in a given Arrow-Debreu equilibrium. Also, he uses this model to show that other things equal, if risk aversion does not decrease too rapidly, then assets with more dispersed opinion will have lower prices or vice versa. P. Bossaerts and C. Plott (2004) had done six financial markets experiments of testing two of the most basic propositions of modern asset pricing theory. The Arrow-Debreu model and the Sharpe-Lintner-Mossin Capital Asset Pricing Model (CAPM), these two theoretical models are used to be the framework of their experiments. In the end of their experiments, they discovered a swift convergence towards equilibrium prices of Arrow-Debreu model or the CAPM. This discovery is significant because they use the subjects that lacked of information to intentionally set the asset prices. Sometimes, the equilibrium is not found to be robust which clearly shows a result of deviations of subjective beliefs from objective probabilities. However, they still find the evidences that prove this does not destroy the tendency for markets to equilibrate as predicted by the theory. 3.2 Equity Risk Premium Next, the Arrow-Debreu model is applied to explain the equity risk premium. In an attempt to explain the equity risk premium, Rajnish Mehra and Edward C. Prescott (1985) developed an Arrow-Debreu asset pricing model. They found that historically the average return on equity has far exceeded the average return on short-term debt and Treasury bills. Thus, they try to use the Arrow-Debreu model to interpret this situation. In the end of the journal The Equity Premium: A Puzzle, they concluded that only those equilibrium model with friction (i.e. non-Arrow-Debreu models) will be the one that successfully explain both high equity risk premium and low risk-free returns. However, Rietz (1988) overthrew the conclusion of Mehra and Prescott (1985) in The Equity Risk Premium: A Puzzle. He mentioned that the reason for them to reject the Arrow-Debreu model is their specifications which cannot explain the high equity risk premium and low risk free returns that characterize the U.S. economy. Hence, he re-specified their model to include a low-probability, depression from a high return of compensation for the extreme losses during the market crashes, captured those possible effects from the market crashes and finally successfully proved that these crashes allow it to explain both high equity risk premium and low risk free returns without abounding the Arrow-Debreu paradigm as well as not altering their models attractive features. In the journal The Equity Risk Premium: A Solution, he explained further that it does so with reasonable degrees of time preference and risk aversion provided the crashes are apparently severe and not too unimaginable. 3.3 Corporate Finance According to Jean Tirole (2006), he specified that a substantial and important body of empirical work has provided a clearer picture of patterns of corporate financing and governance, and of their impact for firm behaviour and macroeconomic activity. One of them is the Arrow-Debreu model. During 1970s, the dominant Arrow-Debreu model of frictionless markets (presumed perfectly competitive and complete, unhampered by taxes, transaction costs, as well as informational irregularity) can prove to be a powerful tool for analyzing the pricing of claims in financial markets, but little about the firms financial choices and about their governance. Besides, in the complete market paradigm of Arrow (1951) and Debreu (1951), the financial claims returns depend on some choices such as investments, are assumed to be contractible and therefore are not affected by moral hazard. In Jean (2006)s opinion, financial markets were not plagued by problems of asymmetric information because investors agree on the distribution of a claims returns. Viewed through the Arrow-Debreu lens, he identified that the key issues for financial economists are the allocation of risk among investors and the pricing of redundant claims by arbitrage. Michael J. Brennan (1995) also clarified that the abstract simplicity of the Arrow-Debreu model yields few insights for corporate finance beyond the value additivity principle that was used to refute the conventional wisdom that conglomerate mergers will add value to the company through the corporate diversification. 3.4 Modigliani and Miller Theorem (M-M Theorem) Another application of Arrow-Debreu model is related to M-M theorem which devised by Franco Modigliani and Merton Miller (1958). This theorem explains that a firms financial structure is irrelevant under certain conditions, Arrow-Debreu environment. The value of a financial claim or a firm which equal to the sum of the values of the claims it issues is thus equal to the value of the random return of this claim or the firm computed at the Arrow-Debreu prices (the prices of state-contingent securities). Therefore, Arrow-Debreu model is used as a fundamental of economy in formulating M-M theorem. 3.5 Arrow-Debreu Security (State Contingent Claim) Mostly, Arrow-Debreu security will be the answer of the applications of this model majoring in financial economics if we searching it through the internet. Based on the journal A re-examination of the Modigliani-Miller theorem written by Joseph E. Stiglitz (1969), in a section entitled Arrow-Debreu securities, he not only showed the M-M theorem in a complete markets setting but also mentioned about the Arrow-Debreu model under uncertainty in which individual can buy or sell the promises to pay if a given state of the world occurs. This shows a direct relationship between the Arrow-Debreu model and the Arrow-Debreu security. Through the calculation, he observed that if he takes literally the Arrow-Debreu definition of a state of nature, there is undoubtedly will be more states of nature than firms and most of these states are similar with each other. An example, variation in the return on stocks can be explained by the business cycle, is given to support his statement. Robert E. Lucas (1984) analyzed the unified theories of money and finance on Money in the Theory of Finance. He examined and commented that financial and monetary theory have different objective, however, the desirable theoretical unity may be, one can identify strong forces that will continue to pull apart these two bodies of theory. He mentioned that the theory of finance is conducted almost entirely within the Arrow-Debreu contingent claim framework such as the three pillars of modern financial theory which have been reformulated in contingent claim terms. Besides, he wrote that the applications of the Arrow-Debreu contingent claim formulation of a competitive equilibrium for an economy operating through time is subjected to stochastic shocks. In the end, he concluded that the power in applications of the contingent claim point of view is obviously evident in finance, will be as usefully applied to monetary theory. One more thing that he suggested is the source of this power which is the ability of this framework to permit the reduction of the study of asset demands to the study of demands for the more fundamental attributes to which assets are claims. 3.6 Others Apart from those above categories, Arrow-Debreu Models can be used for other purpose. For instance, it acts as a fundamental to explain the pattern of trade, to formulate the fixed price equilibrium or to find out whether the financial markets are arrangements for risk-sharing. Furthermore, it is extended further to analyze the restrictions and developed further that include a sequential market model with the financial markets. One of the section in the journal Differences of opinion in financial markets written by Hal R. Varian (1989), an Arrow-Debreu contingent consumption model of the sort studied by Milgrom and Stokey (1982) was examined. Through the mathematical calculation and the analysis of the consequences for assets market equilibrium based on the Arrow-Debreu model, it ends with a similar result, prices are determined by information, but the pattern of trade is determined by differences in opinion. In order to establish the important difference for trade is the opinion, he analyzed some of its consequences for assets market equilibrium. At last, he stressed that the volume of trade in an Arrow-Debreu model is due primarily to the differences of opinion. Next is the Claus Weddepohl (1983). He discussed and addressed the development of the theory of general equilibrium during the last twenty-five years. Considering and analyzing the Arrow-Debreu model with futures markets, he showed the result that this model gives rise to temporary equilibrium models. He stated that the fixed price equilibrium models are formulated through the study of these models and the study of the stability of price adjustments. The simple fixed price equilibrium model as defined by Barro and Grossman (1971) and Malinvaud (1977) is what he emphasized in the journal Developments in the Theory of General Equilibrium. Ouattara (1994) applied the Arrow-Debreu model to the small villages in the McCarthy Island Division South (MID-South) of The Gambia to find out whether financial markets are arrangements for risk-sharing. The main objective of risk-sharing is to verify that observed consumption patterns are consistent with patterns predicted by insurance models. The Arrow-Debreu full insurance model focuses on consumption smoothing across different states of nature at each particular point in time through state-contingent contracts. In the end of his research, the results supported the hypothesis that state-contingent loans are accepted in rural Gambia and there is full risk-sharing among participants in the financial markets. Peter H. Friesen (1979) extended the Arrow-Debreu model to financial markets which include the sequential market model. It is done by dropping the contingent contracts from the Arrow Debreu model, leaving only a sequence of spot markets for commodities. This leads to an inefficient market structure but efficient for sequence of stock markets and option markets. The purpose of the journal The Arrow-Debreu Model Extended to Financial Markets is to develop further the Arrow-Debreu model. The method that he used is through the extension of Arrow (an equilibrium in one model was constructed from that of another). For example, financial securities, Arrow certificates can be constructed from options on common stock and the advantage in the general equilibrium theory of financial markets, are the proofs of using Arrows method. On the other hand, the sequential market model for which equilibrium are constructed from the Arrow-Debreu equilibrium derived in Debreu (1951). From the fact that Arrow-Debreu equilibrium exist, it follows by construction that equilibrium for this model exists. It also follows that the equilibrium is efficient. Peter (1979) stressed that such models are used both to study financial markets and to explore the effects of a gradual resolution of uncertainty. Lastly, he concluded that it not only shows the close relationship between these two models but also reminds us that the potential value of finite-horizon Arrow-Debreu models for the study of sequential economies. Investors in financial markets face several restrictions apart from wealth constraints. So, we have the right to understand the restrictions in a general competitive equilibrium. Based on the journal Contributions to Intertemporal Models in Financial Economics written by Ramu Gopala (2008), the Arrow-Debreu model was extended further for the usage of analyzing those restrictions. He indicated that the traditional Arrow-Debreu model can be extended to a more realistic setting. Following Angeloni and Cornet (2006), this extension of the Arrow-Debreu model in the multi-period setting with restricted participation is established. Arrow-Debreu model was used to elaborate, to compare, to extend and to emerge for shaping those important finance theories. 4.0 Supporting Theories In this section, the theories that are related to Arrow-Debreu model will be further discussed. Apart from that, in order to let us have a more complete picture about this model, the theories that we displayed previously will also be stated and explained, as well as deliberated further. 4.1 General Equilibrium Theory General equilibrium theory is the core of economic theory. Before the Arrow-Debreu model is established, this theory has been proposed by L. Walras (1874). As reported by Arrow and Debreu (1954), he was the one who first formulated the state of economic system at any point of time as the solution of a system of simultaneous equations representing the demand for goods by consumers, the supply of goods by producers, and the equilibrium condition that supply equal demand on every market. In other words, Walras (1874) is the pioneer who first attempts to model the price for a whole economy. Walras uses mathematics to construct a complete structure of general equilibrium theory. This research has lead to results in contribution to neoclassical economics. However, the mathematics that he used to set up the foundation of this theory was unstable due to the existence of general equilibrium does not solved in a satisfactory manner. Hence, theoretically, if he cannot prove this existence, then this theoretical system will become meaningless. General equilibrium theory is therefore developed and improved by Vilfredo Pareto (1897), John R. Hicks (1939), John Von Neumann (1937), Paul A. Samuelson (1941), Kenneth J. Arrow (1954), Gerard Debreu (1954), Lionel W. McKenzie (1954) and others, which becomes an integral part of economics. 4.2 Fundamental Theorems of Welfare Economics Before the Arrow and Debreu began their famous collaboration, both of them had proved the same theorem which is the Fundamental Theorems of Welfare Economics or First and Second Welfare Theorems. There are two fundamental theorems of welfare economics. The first theorem states that every general equilibrium involves a Pareto efficient allocation of resources under the three assumptions. The three assumptions are if there are no externalities, all agents are price-taker, and prices for each good are known to each agent. While the Pareto efficient named after Vilfredo Pareto (1897), is a type of efficiency that results if one person cannot be made better off without making someone else worse off. The First Welfare Theorem is viewed by many economists as the formalization of Smiths Invisible Hand. As Makowski and Ostroy (1995) stated, it provided a set of sufficient conditions for a price system to efficiently coordinate the economic activity. Besides, this theorem supports the case for non-intervention in ideal conditions. For instance, the outcome is said to be Pareto efficient if we let the markets to do the work. The Second Welfare Theorem says that if preferences are well-behaved (especially convex) then every Pareto efficient allocation can be supported by a general equilibrium set of prices, given a suitable reallocation of the endowment. Referring to Varian (1985), this theorem effectively said that if you think an equilibrium is unfair, just move the endowment of the economy and a different general equilibrium will be obtained. Due to the convexity, the second theorem is stronger than the first theorem. The difference between these two theorems is the second theorem requires existence of general equilibrium from all endowment points, whereas the first theorem required only that if a general equilibrium existed it was efficient. According to Michael A. S. Guth (1994), Arrow (1951) provided a rigorous proof of the connection between competitive equilibrium and Pareto optimal. Gerard Debreu (1951) introduced convex analysis methods into welfare theory and independently proved the same theorems. As a result, these theorems have an important relation to Arrow-Debreu model; the existence of solutions to a competitive equilibrium is finally solved. 4. 3 Theories in relation to the Restriction of General Competitive Equilibrium Previously, the Arrow-Debreu model was used to analyze the restrictions. In order to understand those restrictions in the general competitive equilibrium framework, tracing back those following theories is necessary for us to know how the Arrow-Debreu model was used to be compared and proved other economic theory. 4.3.1 Radner Equilibrium Roy Radner said that the Arrow-Debreu model is not originally put forward for the case of uncertainty, but a powerful device introduced by Arrow (1953), and further elaborated by Debreu (1953), enabled the theory to be reinterpreted to cover the case of uncertainty about the availability of resources and about consumption and production possibilities. Hence, he extends the Arrow-Debreu equilibrium and forms an economic concept-Radner Equilibrium. Radner (1972) is the first who considers the general equilibrium with incomplete markets. He shows that unlike the Arrow-Debreu models, the possibility of trading commodity futures for every contingency is sufficient to enable income transfers across all spots. In addition, the assumption that he made, short-sales of these contracts are limited for every agent, is a driving force in his proof of the existence of a general financial equilibrium. This can be seen as the first attempt to incorporate this idea in their asset market participation. 4.3.2 Concept of Constrained Pareto Optimality Radner Equilibrium, however, is imperfect. Oliver D. Hart (1975) uses some disturbing but perceptive counter-examples to display some of the weaknesses of Radners concept of equilibrium. He showed that existence of such an equilibrium cannot be proved under the standard Arrow-Debreu assumptions. He specified that when the asset returns are price dependent, the market sub-space may not be continuous in the spot prices which may lead to discontinuous demand functions. This reason causes a failure of the existence of Radner equilibrium. In other words, an equilibrium may not be Pareto efficient in the case of incomplete markets which shapes the concept of Constrained Pareto Optimality. 4.4 Limitations of Arrow-Debreu Model Although the Arrow-Debreu model has many influences on either economics or finance, however, there are the limitations. There are three limitations of Arrow-Debreu model. In this model, it excludes the trade in shares of firms because the stock certificate is not an Arrow-Debreu commodity. When the descriptions are so precise that further refinements cannot yield imaginable allocations which increase the satisfaction of the agents in the economy, then the commodities are called Arrow-Debreu commodity. Trading in shares of firms cannot be classified as Arrow-Debreu commodity due to its possession entitles the owner to additional commodity which he need not obtain through exchange. Bankruptcy is not allowed in Arrow-Debreu equilibrium. All agents must meet their budget constraints. In a game theoretic formulation of equilibrium, it is achieved by enforcing an infinite bankruptcy penalty. Since every Arrow-Debreu equilibrium is Pareto efficient, there would be no benefit in reducing the bankruptcy penalty to the point where someone might choose to go bankrupt. Money does not appear in this model. Although the reasons for the existence of money in real life are already taken care of in the Arrow-Debreu model, money does not affect the allocations of commodities. Therefore, there is no point in making the role of money explicit in the Arrow-Debreu model. 5.0 Conclusion In fact, Arrow-Debreu model is not simultaneously created by K.J. Arrow and Gerard Debreu. Debreu is the one who extends further the Arrows pure exchange model in several important ways. Their contribution in formulating Arrow-Debreu model has laid a foundation for economic theory. The application of Arrow-Debreu model emphasizes more on the general competitive equilibrium framework of the economics. From the studies, we notice that most of its application majoring in the financial economics is act as a fundamental theory or economy in shaping the asset pricing model. Other functions like analyzing the market structure, risk and etc, also show that the usefulness of this model. Besides, it is applicable in evaluating the impact of all uncertainties with a general equilibrium structure. The analyzers use a series of mathematical equation to prove their statements. The pioneering contributions of Arrow and Debreu have forever changed the way economic theorists formulate uncertainty models.   After more than forty years of analysis and extensions, their general equilibrium framework and approach continues to be the starting point for new theories on the operation of competitive markets under uncertainty. As a conclusion, it is undeniable that the Arrow-Debreu model had turn on a new leaf in the history of economics. It is the modern concept of general equilibrium in economics which indirectly set up several important theories. Nothing is perfect in this world. Of course, Arrow-Debreu model as well. Some assumptions have to be made. Criticism also may happen. However, those brilliant economists or researchers still can use this model to formulate their own theory and then ends up with a perfect ultimate theory in both economics and finance. Lastly, mistakes, problems, and weaknesses should be pointed out, corrected and improved so that Arrow-Debreu model can be applied and developed effectively.

Patrick Ferguson Battle of Kings Moutnain :: essays papers

Patrick Ferguson Battle of Kings Moutnain ï » ¿Patrick Ferguson was a cavalry leader of the British army. He joined the army at the age of 14 and by the time the Scotsman came to America to fight patriots he had become a respected, yet controversial leader. He taught his men guerrilla warfare and used camouflage during battles. This made traditional military leaders feel spite towards him because he had broken from the conventional formations. Ferguson was also a great marksman, reputed to be the best shot in the British military. Because of this he had little respect for the smooth bored â€Å"Brown Bess† musket that was used by Red Coats in America. He invented a breech loading rifle with a grooved barrel. This provided a firearm that was very accurate and could be reloaded without standing. Ferguson came to America with a small army. Before challenging General Washington’s men in a battle, Ferguson had the opportunity to kill the General, but wouldn’t take the shot because he felt a man of his stature did not deserve to die from a shot in the back. During the ensuing battle, Ferguson took a bullet in the right elbow and after the battle, argued with surgeons who wanted to amputate the arm. Ferguson kept the crippled arm and took nine months to recover. He taught himself to fence with his left hand and now carried a silver whistle that he used to signal his men. Ferguson traveled though the souther colonies recruiting sympathizers of the crown for his army and he traveled with two women, both of which were named Virginia. Ferguson met his demise on October 7, 1780 at the battle of Kings Mountain. After fighting a losing battle against separatist forces Ferguson was shot by several patriots. It is said that the force from seven musket balls lifted him out of his saddle where he died after being pulled by his horse. My opinion of Patrick Ferguson is that he was a great military genius. He tried to abandon old methods of warfare my adopting guerrilla tactics. He was a leader that his men respected and would follow willingly into battle. The instance were he had George

Enviornmental Catastrophes :: essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚  Many people throughout the world deal with environmental destruction. Whether it is natural or man created, both end in sudden calamities.   Ã‚  Ã‚  Ã‚  Ã‚  An example of a natural catastrophe is the 1997 Red River Flood in Grand Forks, North Dakota. One of the unique aspects of the Red River is that it flows North and empties into the lake Winnepeg in Canada. However, since temperature tends to get colder the farther north you get, ice-jamming is often a concern of the Red River during the spring season. The National Weather Service began putting out warnings as early as February that a flood due to the spring melt was likely to occur. Due to Grand Forks harsh winter that consisted of a cruel blizzard, the amount of snow melts exceeded. In an effort to prevent the flood, the North Dakota National Guard dumped sand on the river in hopes to use the suns’ thermal energy to speed up the thawing and eliminate the ice-jams. Unable to control the excessive water the flood of the century began. On April 18, 1997, the Red River’s water level was at 52.19 ft high and had risen at a rate of an inch each hour follo wing. The flood began to take out areas of the city one by one, and people with what little possessions the could grab had to evacuate immediately. After six days of flooding the river finally began to recede and people were allowed to return. The amount of filth left behind from the flood was incredible. Much of the property had been destroyed and basically everything else had been contaminated by the water. Everything that was washed out by the water turned into trash and many had to start all over again. The post-flood clean up that was taken to the dump totaled 224 million ton, which is usually nine months of garbage.   Ã‚  Ã‚  Ã‚  Ã‚  An example of a man-created catastrophe is the Tragedy of the World Trade Centers. September 11, 2001 terrorist attacks on America had a big effect on New York City environment, and the political and emotional landscapes of the United States. This will be remembered as one of the most shocking days in American history. Armed terrorists hijacked four passenger jets and used them as weapons against the U.S.. The attacks destroyed the World Trade Center, damaged the Pentagon and killed three thousand people. The cleanup was a very emotional and strenuous effort by fire fighters, policeman and many volunteers.

Business Advertising Affect on Society Essay -- essays research papers

Business and society Today, big companies and corporations are trying to make us buy their products by using more and more advertising techniques. TV commercials, posters on the walls, newspaper ads and a variety of different flyers are just some examples of the massive propaganda used by businesses. Some critics say that the number of this adds is so extensive that, they can change our views of life. After everyone have seen the same actor chewing the same gum while sitting in the club with three hot girls, over and aver again, people might really start thinking that chewing that gum will make them more attractive. This is the way that the creators of that ad will want us to think. The ads are not just promoting the products, but also a lifestyle. To live that life style, you need to get the products. This sounds like an evil plan, used by the commercial world. But is the public really so simple minded to just follow everything they see and hear? It is a fact that the life presented on the TV as well as in the number of magazines, is much different from the life of an average person. Majority of as are not like that and never will be. Society is getting more diverse. People are listening to so many different kings music that others never heard of. As the models on the fashion magazine covers are getting thinner and thinner, the majority of Americans are actually gaining weight. Businesses are still following the will of the consumers, even though they became so big and powerful. Most of the people want to become in a way better then who they are right now. No one can really change their personality or completely become a different person in one day. But there are things that we want to make different about ourselves. Thi... ...ace, will get so depressed when he is going to see his favorite NBA player wearing the Adidas shoes that he does not have. This is the society, not the business might make us uncomfortable with who we are. An advertisement is the way businesses fight each other on the market, truing to get better then the others. And in the society, people want to show that they are better then others, often by changing themselves. The businesses will not change who we are, but the society can. Very often, the society dictates us what to wear and what music should we to listen to. We would always choose what store to go to. But we can not the society we were born into. Some people might blame media and big business for making them unhappy with themselves. But if they were really happy and confident in the first place, they would not even think of changing themselves, that much. Business Advertising Affect on Society Essay -- essays research papers Business and society Today, big companies and corporations are trying to make us buy their products by using more and more advertising techniques. TV commercials, posters on the walls, newspaper ads and a variety of different flyers are just some examples of the massive propaganda used by businesses. Some critics say that the number of this adds is so extensive that, they can change our views of life. After everyone have seen the same actor chewing the same gum while sitting in the club with three hot girls, over and aver again, people might really start thinking that chewing that gum will make them more attractive. This is the way that the creators of that ad will want us to think. The ads are not just promoting the products, but also a lifestyle. To live that life style, you need to get the products. This sounds like an evil plan, used by the commercial world. But is the public really so simple minded to just follow everything they see and hear? It is a fact that the life presented on the TV as well as in the number of magazines, is much different from the life of an average person. Majority of as are not like that and never will be. Society is getting more diverse. People are listening to so many different kings music that others never heard of. As the models on the fashion magazine covers are getting thinner and thinner, the majority of Americans are actually gaining weight. Businesses are still following the will of the consumers, even though they became so big and powerful. Most of the people want to become in a way better then who they are right now. No one can really change their personality or completely become a different person in one day. But there are things that we want to make different about ourselves. Thi... ...ace, will get so depressed when he is going to see his favorite NBA player wearing the Adidas shoes that he does not have. This is the society, not the business might make us uncomfortable with who we are. An advertisement is the way businesses fight each other on the market, truing to get better then the others. And in the society, people want to show that they are better then others, often by changing themselves. The businesses will not change who we are, but the society can. Very often, the society dictates us what to wear and what music should we to listen to. We would always choose what store to go to. But we can not the society we were born into. Some people might blame media and big business for making them unhappy with themselves. But if they were really happy and confident in the first place, they would not even think of changing themselves, that much.