Dying with Dignity (Euthanasia) Free Essays

string(49) of barbiturates was naturally administered. By Valbona H. Bajrami Table of substance Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 3 History of euthanasia†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 4 Medicine†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. We will compose a custom paper test on Biting the dust with Dignity (Euthanasia) or on the other hand any comparable point just for you Request Now . 5 Ethics†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Religion views†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 7 Emotion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 8 Conclusion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦9 References†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 10 Introduction People have been experiencing terminal ailments for quite a long time. A few doctors accepted that these individuals ought not need to endure if that was their desires. They had thought of the possibility of willful extermination; killing is the act of completion the life of an individual in an easy manner. A few people feel that killing is a wrongdoing simply like homicide; some others imagine that willful extermination is fundamental for those individuals who are in excruciating torment and have no fix. The term, ‘Euthanasia’ originates from the Greek words eu meaning great, and thanatos meaning demise, and is known as leniency executing or helped self destruction, typically rehearsed on an at death's door individual. In certain nations, willful extermination is lawful and a third individual can help self destruction under specific conditions. Numerous religions and clinical specialists restricted the possibility of killing and emphatically guaranteed it to be unlawful. The discussion on willful extermination is required to proceed later on in light of the fact that there are the two advantages and disadvantages to killing. (Sandhyarani, 2011) When inquired as to whether specialists ought to be permitted to end the life of a patient who is experiencing a terminal sickness and needs incredible, of Americans said â€Å"yes. † Although, willful extermination is disallowed by law in many conditions of the USA, this survey depended on insights of Gallup Organization in 2007. In 2010, in view of Angus Reid Public Opinion, 70% of Americans were ace when posed a similar inquiry. Assessments of public sentiment/Surveys, 2011 ) The significant terms that help to partition and characterize willful extermination by type are: deliberate, which is a demise performed by another with the assent of the individual being killed, automatic, which is a passing performed by another without the assent of the individual being killed, dynamic willful extermination, w ere patient’s demise is brought about by explicit advances, for example, infusing the patient with toxic substance, and uninvolved killing, which is typically characterized as pulling back clinical treatment with the conscious goal of causing the patient’s demise. History of Euthanasia Killing has an old history, and this subject has been both contradicted and protected since old occasions. The primary who utilized the word, killing, was a Roman history specialist, Suetonius. In light of reactions that were made in the location of the individuals who have drilled willful extermination, it is expected that the primary hints of killing began in Mesopotamia, River Ganges in India and in antiquated Israel. In the sixteenth century the principal proposal of killing dropped by Thomas Mores, who stated: When there is no fix and a patient endures excessively, the patient ought to be persuaded to pass on. The patient ought to understand that his ailment is hopeless, he is a weight to other people and his languishing causes feel sorry for over individuals around him. In antiquated Greece, when the doctor offered medication to the patient who was enduring outrageous torment, and had a hopeless terminal disease, traditional Greek rationalist Plato firmly upheld this activity. He likewise accepted that intellectually and genuinely sick people ought to be left to death since they don't reserve the privilege to live. The primary issue with killing originated from the Oath of most celebrated antiquated Greek doctor Hippocratic, which says:†I won't regulate toxic substance to anybody when requested to do as such, nor propose such a course. † In old Rome, willful extermination was a wrongdoing and this activity was acknowledged as slaughtering somebody intentionally. Without precedent for the seventeenth century in Prussia, the individual who murdered the patient with a hopeless illness was rebuffed as a blameworthy man. Killing was both condemned and shielded in the twentieth century. In start of the twentieth century, the patterns of sanctioning of willful extermination started in the United States, however the administration idn’t acknowledge these recommendations, despite the fact that 53% of American doctors guarded killing. (Erdemir, 2001) In1935 the killing Society of England was framed to advance willful extermination, at that point in 1939, the main legitimization of kill ing was in Nazi Germany. The Nazi specialists ended the lives of thousands of their kindred residents on orders from the legislature. In 1996, in Australia the willful extermination became effective, yet it was toppled by the Parliament in 1997. The spots where willful extermination is lawful are; Oregon, Washington, Switzerland, Netherlands and Belgium. Medication Willful extermination, some of the time known as â€Å"mercy-killing,† is the purposeful consummation of a patient’s life by a doctor, for the most part by deadly infusion. One of the most known doctors who rehearsed killing was Jack Kevorkian. He was a pathologist, and usually known as â€Å"Dr. Passing. † From June 1990 through January 1996, 27 individuals kicked the bucket utilizing one of Kevorkian’s machines, and in absolute he said that he helped at any rate 130 patients to take their lives. In 1999, Kevorkian was seen as liable, and served eight years of a 10-to-25-year jail sentence for second degree murder. He was discharged on parole on June 1, 2007; relying on the prerequisite that he would not offer self destruction guidance to some other individual. â€Å"I will concede, similar to Socrates and Aristotle and Plato and some different scholars, that there are occasions where capital punishment would appear to be fitting. † (Kevorkian) The killing gadget is a machine built to permit a person to bite the dust rapidly with negligible torment. They might be worked by a doctor, or by the individual wishing to pass on. In 1989 Kevorkian depicted his unique passing machine called â€Å"Thanatron†. This gadget included an individual pressing a catch that discharged medications or synthetic substances that would end their own life. The second model he utilized was called â€Å"Mercitron†. It was like the first, aside from a gas veil took care of by a canister of carbon monoxide was appended to a face cover with a cylinder. The third model was imagined by Philip Nitschke, who is an Australian clinical specialist. He named his gadget â€Å"Deliverance Machine† which was customized to pose the patient a progression of inquiries, that, whenever addressed effectively, a deadly infusion of barbiturates was consequently directed. You read Biting the dust with Dignity (Euthanasia) in classification Paper models In 2008, Dr. Nitschke created another gadget called â€Å"Exit’s Euthanasia Device† witch utilized a customary grill gas bottle, loaded up with nitrogen and a plastic self destruction sack. The gas is increasingly mental, with no possibility of unfriendly response. â€Å"So it’s amazingly brisk and there are no medications. Significantly this doesn’t fall flat †it’s solid, serene, and accessible and with the extra advantage of imperceptibility. † (Philip Nitschke) Ethics According to Garn LeBaron, the patient, his friends and family and the doctors all face moral difficulties while deciding if willful extermination is a moral decision. Most doctors that are against willful extermination accept that for a long time of custom, the specialists were committed to recuperating patients, not killing them. On an individual level, the individual must settle on a choice whether to take their life. They may accept that dependent on their personal responsibility and their own advantage, it is smarter to pass on accepting they would be a money related, physical or passionate weight to their families should they experience their ailment until their body bites the dust all alone. Interestingly, they may decide to live to benefit others and for friends and family, to save them the agony and unrest to settle on and bolster such a choice. Should the family have t

One Best Friend Essays - English-language Films, Frankenstein

One Best Friend One Best Friend There are such a large number of kinds of companionship that can be grown purposefully or inadvertently by all people. Its difficult to acknowledge that occasionally in light of the fact that we may require the assistance of somebody who in the event that it wasnt for the present need we would be cheerful not to try and express a word to the person in question. We all sooner or later we settle on cognizant choices on who our companions are. Frankenstein didnt have such extravagance. He didnt have a friend network to browse. He just had the individuals who needed to utilize him for their own comfort and it is along these lines that he discovered that companionship could be that. A trade of favors by individuals he truly didnt trust. All through the storylines that follow the book and the primary film, Frankenstein didnt have any genuine companions. Indeed, even the old visually impaired man from Bride of Frankenstein acknowledged him since he himself was in urgent need of any sort of human association. The beasts initial introduction was that of a legitimate well disposed motion. This was the initial step for him in discovering that companionship could be utilized to gain the things he needed. Aristotle remarked on the presence of three kinds of companionship: kinship dependent on utility, fellowship dependent on joy and flawless kinship. The first being founded on a reliance of each other. We as a whole get the opportunity to encounter every one of the three sorts of companionship. The Monster never had the benefit of knowing the last one. The third one depends on genuine sentiments of deference, regard, and comprehension. No one at any point had those emotions toward the beast. Practically all the characters and ever watchers of the story have only sentiments of dread, misjudging, pity and lack of regard for the beast. The nearest anyone came to be a genuine companion to the beast was Ygor. Indeed, even Ygor didnt truly consider the to be as a potential companion he was just an instrument that he used to settle the score with the individuals who condemned him to be hanged and the individuals who didnt conceal their disturb for Ygor. It could be contended that no one got as near the beast as Ygor did. Ygor didnt need the beast to be his companion he didnt waver to supplant the Monsters mind with his own so as to have the beast solidarity to be utilized for his own arrangements. He understood that controlling the beast was turning out to be increasingly troublesome. Companionship isn't tied in with controlling another person. In the surface it could be contended that Ygor was the Monsters closest companion. After all we as a whole have somebody that its thought about a closest companion. Everyone in the early years attempt to remain and become friends with the individuals who seem as though us or who share a bond. In Bride Of Frankenstein the beast is by all accounts applying this idea to himself when he requests an accomplice. He had understood that individuals could always be unable to see him in an inviting way, they could always be unable to get him, since they dislike him. His answer was to look for somebody who got him and was in a similar circumstance. Another beast. Toward the finish of the film he understood that not even somebody who had been manufactured simply such as himself would not acknowledge him. The panicked articulation of the lady of the hour disclosed to him all that he had to know. There are such a significant number of perspectives to the tale of Frankenstein corresponding to companionship, however the most remarkable is that of a forlorn being who couldn't culture an ideal kinship which was the reason for his decimation. English Essays

The Matthew Effect Essay Example for Free

The Matthew Effect Essay The Matthew Effect section of Outliers, Malcolm Gladwell states that a person’s achievement s ascribed to the planning of their introduction to the world date as it identifies with the cut-off dates of sports and training. He accepts that this one arbitrary date is the beginning of a progression of focal points that can at last lead to progress. In spite of the fact that planning of a birth date and openings can play a critical factor in one’s achievement, they are not the sole assurance of progress. Gladwell neglects to recognize the fundamental job an individual’s aspiration and regular conceived ability play in making achievement or the pivotal effect family impacts can have on one’s achievement. Over-Simplified Since Biblical occasions, gatherings of individuals were isolated by the wealthy and the have not’s. Matthew 25:29 states â€Å"For unto everybody that hath will be given, and he will have bounty. However, from him that hath not will be removed even what he hath. † (Gladwell, 2008, p. 15) In section 1, of the Outliers (2008), Malcolm Gladwell has a comparable contention in â€Å"The Matthew Effect†. He contends that individual achievement is credited to shrouded favorable circumstances, for example, someone’s birth date, which thusly, makes opportunity through aggregate focal points. (pg. 19) Gladwell calls these fruitful individuals â€Å"outliers† which he characterizes as â€Å"men and ladies who do things that are out of the ordinary† (pg. 17). In spite of the fact that planning of a birth date and openings play a critical factor in one’s achievement, Gladwell’s hypothesis that those are the sole assurance of progress is over rearranged in light of the fact that it doesn't think about the effect of one’s individual aspiration, ability, and family impacts. Desire In Outliers, Gladwell states that â€Å"people don’t ascend from nothing† (pg. 19) and totally limits the job an individual’s aspiration plays in making progress. At the point when an understudy, or a competitor, has a powerful urge for progress, paying little mind to their age or birth date, it drives them to exceed expectations past the ordinary range. An ideal case of this would be a little youngster named Stephanie Bradley. She needed to be a specialist. Stephanie experienced childhood in a little hands on network in country Texas. Her folks were not school instructed and lived only marginally over the neediness line. She went to a little, open, 2A secondary school, with normal instructors. What's more, she was the most youthful in her group, in cases, by over a year due to a mid-July birthday. What set her apart from different understudies was her longing for progress and her energy for medication. This aspiration drove her to try sincerely and shrewd, remain centered, and never take her eye off her definitive objective. En route, she made penances, however never veered off base. She didn’t have any open doors well beyond ones she made all alone. Brought into the world With It Sheer ability is another key factor answerable for progress and lies with the gathering of competitors that make progress without the advantage collective preferences. These are the competitors who are brought into the world with an ability that supplants the expertise of different competitors. There is a distinction among aptitude and ability. Expertise is something that requires preparing and experience to progress nicely, while, ability is a characteristic capacity to contend with excellent capacity. (Bing word reference, 2014) While this ability is uncommon to discover, when it exist, these competitors can discover achievement paying little mind to where their birthday falls on a schedule. One such competitor exists right now on a nearby secondary school swimming club. Taylor is a secondary school rookie who didn’t contend in youth baseball sports, since his folks were more refined than athletic and they never had the money related assets to pay for extracurricular exercises. In his first year, a companion requested that he join the swimming club. Having never contended physically, Taylor was reluctant however concurred. To everyone’s shock, he medaled at his first swim meet. In one occasion, yet two. The following week, more achievement, more successes. His absolute first year swimming, he succeeded at region, regional’s and is positioned fourth in the state. There is presently discuss Olympic preliminaries. He has contended and won against competitors who have been swimming since the age of four, have logged a large number of hours in the pool, and whose guardians have spend tremendous measures of cash on private mentors. Be that as it may, Taylor wins having never gotten those kinds of chances. He wins as a result of his normal conceived ability. Family An individual’s family impacts can likewise crucially affect one’s achievement. While Gladwell recognizes that legacy and culture plan a job in progress or disappointment as outlined in the Harlan, Kentucky and The Ethic Theory of Plane Crashes parts, he doesn’t credit straightforwardly, the guardians, grandparents, just as, kin that can give an essential component in making achievement. For instance, if a parent wants to go along their insight or aptitudes in a specific game, they are probably going to begin that procedure at an early age which brings about expanded practice time building up the child’s ability. This parent may likewise flexibly extra preparing well beyond what a run of the mill mentor would give. The family could likewise have associations with mentors or instructors that take into account included guidance. Kin can likewise push people to a more elevated level of execution. For instance, having a more established sibling who plays baseball with a more youthful kin will give further introduction that can build up their aptitudes. This extra preparing and experience can build up a kid on the ball, paying little mind to their introduction to the world date. The Other 32% Gladwell’s case of the list of hockey players on the Medicine Hat group indicated that â€Å"seventeen of the twenty-five players on the team† (pg. 23) had the ideal birth month for the game. He credited their January, February, March and April birthday celebrations for their prosperity. In any case, that implies that eight out of the twenty-five players (32%) in the group were fruitful, without the advantage of the ideal birth month. This gathering isn’t the biggest level of players in the group however it shows that achievement isn’t dependent on only one factor. Gladwell’s contention that achievement comes from shrouded favorable circumstances and openings made by those focal points is valid now and again; effective individuals are not made from one recipe, for example, what month their birthday falls. That is only one bit of the image of accomplishment. There are a large number of elements I. e. aspiration, ability and family that assume a job in deciding why somebody is effective and they all should be supported and advanced.

Islamic contracts and hedge technique Essay Example | Topics and Well Written Essays - 2500 words

Islamic agreements and fence strategy - Essay Example The various parts of the Islamic supporting strategies have been looked into and dissected in this paper. Substance Contents 3 Introduction 4 Discussion 4 Background of Islamic Finance 4 Types of Contracts 6 Hedging Instruments of Islamic Finance 7 Profit Rate Swap 8 Foreign trade Risk Hedging 9 Conclusion 10 11 References 12 Introduction Islamic Finance has been founded on the standards of the Quran or all the more completely on the standards of Sharia. As per the standards of Islamic Finance the acknowledgment and installment of intrigue is unreasonable. Along these lines Islamic Finance is without any installment or receipt of enthusiasm for instance of any business exchange. This sort of financing procedure is embraced for the accomplishment of the objectives which are explicit to the Islamic economy. The sharing of the benefit and misfortune is the primary guideline of the Islamic Sharia. As indicated by the Sharia this measure would acquire value just as equity the economy. Hen ceforth the elective names for the banks running on the standards of Islamic Finance are PLS bank. In the budgetary framework there are different sorts of dangers that persevere which may bring about an immense measure of misfortune. The supporting strategies are received in a budgetary market so as to cover a specific situation of presentation which is by and large comparable to a specific money related movement by taking a place that is inverse of what the unsafe circumstance is. The greater part of the banks take such supporting strategies so as to cover the exposures that emerge out of the crisscrosses in the benefit and obligation of the books of records. These sorts of supporting strategies are additionally common with regards to Islamic Finance. This article investigates the different hazard the board quantifies that are being attempted so as to give an answer for the hazard exposures and the kinds of instruments that are being actualized for the reason. Conversation Backgrou nd of Islamic Finance The fundamental targets of Islamic Finance are to advance the standards of Sharia in the manners by which business exercises are being directed. This is finished with the target of advancing development and flourishing in the economy in a reasonable way. These monetary administrations would fit in with the standards of Sharia and would guarantee that the conveyance of salary in the economy would be fair and there would be ideal assignment of the assets in the economy in a legitimized way. Rather than the ordinary methods of financing which considers enthusiasm as the open door cost of cash, Islamic fund thinks about the presence of enthusiasm as a vile practice. As per the standards of Islam, credits are given by one gathering to the next to meet any sort of unexpected circumstance that may emerge. A bank should accordingly assist the borrower with getting the advance as opposed to exploiting it. In this way there ought to be a connection of collaboration betwe en the bank and the borrower. There is no connection of account holder and loan boss as if there should be an occurrence of business banking that is work on as indicated by the general show. The standards of Sharia express that there is essentially no arrival that the individuals can really procure except if they take any sort of hazard. The rule in is practice in both the capital markets just as the work markets. This implies the workers would not be qualified for compensation except if they face a few challenges while working or bear an expense. Then again the capital

Donald Trumps Anti-Immigration Campaign, Role of the Media in Literature review

Donald Trump's Anti-Immigration Campaign, Role of the Media in Literature review Donald Trump's Anti-Immigration Campaign, Role of the Media in Promoting the Anti-Immigration Discourse in the USA, Factors Promoting Its Rise â€" Literature review Example > The paper “ Donald Trump’ s Anti-Immigration Campaign, Role of the Media in Promoting the Anti-Immigration Discourse in the USA, Factors Promoting Its Rise”   is a worthy version of a   literature review on social science. First world and second world countries around the world have recently experienced an influx in the number of people seeking either economic or political asylum. Although originally not a problem, the increased immigration rates have prompted various nations to find ways to reduce the number of both economic and political refugees. This Anti-immigration campaign has been witnessed in Europe, Africa, Australia, and the United States. The United States ranks among the countries with the highest immigration rates, with a high population of these immigrants being of Hispanic descent. The high population levels of both legal and illegal Hispanic immigrants in America have resulted in them being the subject of numerous anti-immigration campaigns, especially dur ing the election period, with politicians using the propaganda campaigns as ways to achieve more votes. The US 2016 election year is no different from other election years, as different candidates have employed anti-immigration propaganda as ways to gain nominations with the most prominent being the Republican presidential frontrunner, Donald Trump. A major part of Trump’ s campaign involves the use of anti-immigration propaganda, which includes a promise to construct a wall along the Mexican-American border to prevent the Mexican and immigrants from Latin American countries from coming into the United States. This paper provides an analysis of Trump’ s anti-immigration stance during his presidential campaign; therefore, it acts as an informative piece on how propaganda influences public opinion in an authoritarian society. Literature Review Role of the Media in Promoting the Anti-Immigration Discourse in the USAPropaganda spread through cable television greatly influences the perceptions of people watching them. In the United States, television news networks play a huge role in influencing American perception with respect to Mexican immigrants. Zú ñ iga, Correa, and Valenzuela (2012) conducted an analysis of how two of America's largest cable news networks, FOX, and CNN, influence attitudes towards immigrants especially those of Latin American descent. According to Zú ñ iga, Correa, and Valenzuela (2012), the FOX news network is linked to increased negative perceptions of people of Hispanic descent. FOX news involves minimal mention of Mexican immigrants, with most of the mentions depicting these individuals’ criminals and a burden to society. As a result, the majority of FOX viewers are conservative Republicans who seem to share the same negative attitude against Latin-American immigrants. A more liberal popula tion, who seem to harbor fewer negative attitudes towards Mexican immigrants, on the other hand, watches CNN (Zú ñ iga, Correa, Valenzuela, 2012). According to these findings, the media plays a huge role in promoting propaganda and the attitudes of Americans towards immigrants. Schemer (2012) also investigated the impact of the media on stereotypic perceptions towards Hispanic immigrants, especially during political campaigns. The study results revealed that during political campaigns immigrants are often negatively portrayed in the news; therefore, promoting stereotypical perceptions among citizens. The study, however, explained that less educated people are more likely to be influenced by negative media portrayal as compared to higher educated individuals (Schemer, 2012). As such anti-immigration propaganda spread through the use of mass media is likely to influence the less educated, who make a larger part of the population.

Determinants Of Corporate Dividend Policy Within Pakistan Finance Essay - Free Essay Example

This research examines different factors that determine cross sectional variations in corporate dividend policy such as profitability, growth opportunities and riskiness. Another aim of this is to check the significant relationship between losses and dividend cuts. Manages cater to investors by paying them dividends when investors put a stock price premium on payers. To test this prediction, I used companies that are listed on Karachi Stock Exchange (Pakistan) and test there are three stock price based measures of investor demand for dividend payers to check if catering theory of dividend exits in Pakistan. INTRODUCTION They are many reasons for the existence of dividend payments, but Miller and Modigliani (1961) prove that dividend policy is irrelevant to share value in the perfect and efficient capital markets. Which means there was no preference between the dividend payment or the capital gains. Arbitrage ensures that dividend policy is irrelevant. But in reality this doesnt happens. Firms cater investor needs to fully increase the share price, ownership and become a high profitable firm. Management make dividend policy with the consent of their investors. The determinant of dividend policy helps to predict the future growth and the stability of the firm; it also caters to the best interest of the investors. The aim of this paper is to find the determinant of dividend policies in Pakistan, and check whether these determinants have some impact of significance in the share value. And also check whether these determinants are same as in other under developed countries. the corporate sector of Pakistan is going to a bad phase these days due to the terrorism and internal imbalance political situations , so I want to check if Pakistani companies still giving the dividends to their investors and if not then what is the main reason for this and how will they cater new investors. And how this will affect the share price of that company in the stock market. All the regulations have been signal out concerning dividend payments, in effort to compare the results with those from previous research. Although there is no such research has been conducted in Pakistan, all the research related to dividend policy is done in India and other developing country unlike Pakistan. But this study will play an important role in determining the factors which influence the dividend policies of the country and the impact of these policies on the share value of the firm. Institutions have preference for dividend paying companies but there is little evidence that they prefer higher payout ratios or dividend yield. Lintners model (1956) of partial adjustment works reasonably well for the large number of companies. Mostly there is a negative relationship between the growth and the dividend payout and leverage and the payout. So this will also be tested in this paper. Companies having a higher growth opportunity are less likely to have free cash flow; if they dont have a free cash flow then they are unable to give dividends which give a bad signal to the market. Mostly managers are reluctant to cut dividends and that they will not increase dividend unless they are reasonably sure that they will not have to reverse this move soon. Basically managers want to carter the needs of the investors in their best interest so they hesitate to cut their dividend because this will discourage the investor. The cutting of dividend is a bad move as this gives negative signal to the market about the firm and also tells that the firm is full of risks. There is no proper cash flow coming into the firm so the person who has invested in the firm has greater risk of losing their money. So this also a very important determinant of dividend policy making. Managers hesitate to reduce the dividend because they want to play safe to not to repeat this move again. As dividend increases signal a reduction in risk because this shows that the managers are confident enough about the stability of future earnings. This also includes the agency theory which tells that dividends can be used as a means to control firms management. Distributing dividends reduces the free cash flow problem and increase the managements equity stake. Another agency problem that affects the dividend policy is between shareholders and debt holders. The risk that shareholders will expropriate debt holders by paying themselves excessive dividends has led to the often encountered covenants restricting dividend policy in bond contracts. So this is another determinant of dividend policy which helps to cut down the dividend. Catering theory also plays an important role in determining the dividend policy. Baker and Wurgler proposed the decision to pay dividends is driven by prevailing investor demand for dividend payers. Some investors have an uninformed and perhaps time varying demand for dividend paying stocks. Arbitrage fails to prevent this demand from driving apart the prices of payers and non payers. Managers rationally cater to investor demand, they pay dividends when investors put higher prices on payers and do not pay when investor prefer nonpayer. The propensity to pay dividends depends on a dividend premium in stock prices. This is will be tested using the time varying variables or proxies for dividend premium. Testing catering theory using Pakistani data is an objective of this research. This kind of study has not been done in Pakistan before, the determinant of dividends of corporate companies establish their policies according to these. The catering theory plays an important role in this. I will test the BW(2004) model of catering theory on Pakistani companies related to oil and gas, beverages, pharmaceuticals, fertilizer, financial, textile and FMGC etc sectors. All the companies register on Karachi Stock Exchange who pays dividend for that specific year is taken as the sample. The catering theory of dividends suggests that real financial markets are imperfect and inefficient, and corporations decide their dividend initiation and continuation decisions by catering to investors demands for dividends. LITERATURE REVIEW A test of the catering theory of dividends of Japanese electric appliances industry was done by Chikashi Tsuji (2010) all the sample they took was Japanese firms, they studied the affect of catering theory on the valuation of stock price. They replicate the methodology used by Baker and Wurgler to test whether the results holds true in Japan as they indicated. They concluded that corporate managers do not consider catering behaviour in either their dividend initiation decision or their continuation decision. These results were different from existing evidence for U.S market. They took dividend initiation as value weighted dividend yield where as Baker and Wurgler used equally weighted. So they conclude that value weighted dividend yield declines, when Japanese firms tend to initiate dividend payments. Catering theory of nominal share prices by Malcom Baker, Robin Greenwood and Jeffrey Wurgler (2009) suggests that typically the supply of different stocks cater to different incentives of investors. Manager increase the low priced securities supply that investors are willing to pay premium for it. So this existing literature is dealing with stock splits which eventually decrease the value f the stock price but this increased the supply which leads to high valuation for the firms rather than high priced and large firms. Many board of director chooses to split their shares to manage the nominal value and increase the number of outstanding shares but this doesnt help them to change the overall market value of the firm. This only done to cater the needs of investors and initiate their paying power of premium for even through that their fundamental values dont increase. Manager increase the supply of low priced shares for which the investors are paying premium for them. So the splits increases and help them to increase the valuation of the firm as the low priced firm are more attractive to investors then high priced firms. Catering theory also affects the post split prices for the large capitalization firms rather than small firms, according to the author that is also telling the reason that why firms initiate to go for the share splits. Price management appears to over valuate the low priced firms so the more often firms go for splitting shares they often end up with low returns. According to Jain, Shekhar and Torbey (2009) study, they evaluated the economics of the choice of form of payout initiation mechanism adopted by IPO firms. Their results suggest that IPO firms demonstrate preference for repurchases over dividends as the specific form of payout initiation mechanism. They compared the results of pre IPO and post IPO announcements, and found out that the market views post IPO payout initiation favourably then pre IPO. But the market was in different to the specific form of payout initiations adopted. The model they introduced in this study was the test the dividends and repurchases represent distinct payout mechanism adopted by IPO firms with fundamentally different characteristics and motivation to initiate payouts during post IPO phase. The conclusion they drawn was that the dividend initiation are primarily driven by life cycle and catering theory considerations. So the signalling theory provides accurate explanation for the payout initiations through share repurchases. The study for the international presence of dividend catering across a sample of twenty three countries was done by Ferris, Jayaraman and Sabherwal (2009) these firms incorporated in common law not the civil law nations. They conclude that when legal regime and its accompanying set of investor protections permit, investors force dividends from managers but they also attempt to extract such payouts indirectly by placing a high value on dividend paying firms. The variables they took were size, premium, operating income and book to market. This will give a the determinants of dividend will leads to the increase in stock price. In 2008, Polk and Sapienza came up with the corporate investment decisions which will eventually leads to discover the impact on stock market. Catering theory plays a major role in this, as mispricing might influence individuals firms decisions. For this purpose they used discretionary accruals as the proxy for mispricing. They conclude that there was a positive relationship between abnormal investment and discretionary accruals. The firms who have high RD or share turnover are more sensitive to discretionary accruals. And whereas the firms with high abnormal investment have low stock returns. In the theoretical model tested by Aghion and Stein (2008) explained the revenue catering theory. They proposed that investors have time varying demand for revenue growth and manager will cater to this demand by offering higher revenue on which investors are putting premium on the revenue. They took the sample from high tech and health sectors. Firms in these sectors are more likely to meet analyst forecasts of revenue when previous years revenue premium is high. Catering theory of dividends also involve a big cost, these cost involves cost of premium tax , cost of risk and opportunity cost, all these costs were studied by Cohen and Yagil (2008). The main issue addressed by their model was the negative relationship between the expected dividend per share and the ratio of information about the cost of the dividend held by category investors and arbitrageurs. The cost of dividend has been shown in to three types: premium tax, risk and investments. So in this article the author conclude that there is a linkage between investment, financing and dividend polices decisions, and this is mainly affected by the catering theory which was proposed by Baker and Wurgler. The risk premium consists of two components, first is the increase in financial leverage resulting from dividend payment and the second is the semi contractual obligation of dividend paying firm to maintain the dividend payment. So the model predicts that there is negative relationship between these three premiums and expected dividend per share. This also predicts that if the firm is operating in financially risky environment prior to dividend payment, then it will be negatively related to financial leverage. Researchers came up with this conclusion that the dividend sum depends on its short term and long term impact on the stock price and also depends on the financial leverage and investment opportunities. A study on dividend policy and the behaviour of investors, Sabur Mollah and Asma Mobarek (2007) came up with the satisfactory explanation of the firms who is catering investors sentiments on this. They suggested that mostly dividend decision is governed by those managers who have somewhat their personal interest involved in. The findings also suggests that the investors are willing to invest in those firms who has enough cash flow to pay out the dividends, as cash flow is a better measure of the companys capacity to pay out dividends and profitability. Dividend policy, risk and catering have a positive relationship; this was found out by Hoberg and Prabhala (2006). They reported that risk is significant determinant of propensity to pay dividends and explains up to 40% of the disappearing dividends puzzle. The second thing they found out was that the catering in insignificant once there is an account for risk. Share holder rights also play an important role in dividend policy. This was studied by Jiraporn and Ning (2006) agency costs as a determinant of dividend policy. They determined that how dividends are related to the strength of share holder rights so they found out that firms which plays higher dividends their share holder rights are more suppressed. So they studied the impact of share holder rights on dividend policy of a firm. As a result, dividend acts as a substitute for share holder rights. So the evidence is there that the regulations influence the relationship between dividends and the share holders rights. Another aspect of catering theory by Richard and Zhang (2005) is given by comparing the share repurchase with giving out dividends and what is the impact of mangers and investors in this. They discussed that market immediately react to the dividend announcements rather than repurchase, but mangers decision is based on his time horizon and his own incentives attached to it. Investor does positively react to dividend news but mostly managers discourage this due to the signalling hypothesis. They consider that it will incorporate the firms news immediately into the market. So when making decision of dividends the firm caters to investor demands. So according to these researchers they cater to investor demands by paying dividends and repurchasing shares. Also they found that firm free cash flow is reinvested in new NPV projects impact on the investors and the valuation or their share prices. So they concluded that catering through dividend and repurchases is inefficient though it has strong reaction from the market but the managers are more willing to invest in positive NPV projects. Determinant of dividend policy have a great impact on stock price of the firm. This eventually affects the value of the firm. Mostly investors invest in those firms who have a regular pattern of giving dividends. Bogdan Stacescu (2004) examined dividend policy for a sample of Swiss companies. They came up with determinants which affect the dividend policy, such as profitability, growth opportunities and riskiness. Past and present income growth is more relevant then the future growth of dividend changes. Price volatility seems the most significant factor in these changes. They also determined the relationship between losses and the decrease in dividends, when the firms dont give dividends they occur losses as in investors are reluctant to invest in those firms whose cash flow is not certain. So managers hesitate to cut out the dividends as it gives negative informational signal to the Swiss market and to dividend changes. According to Malcom Baker and Jeffrey Wurgler (2004) came up with the explanation of dividend payment. They proposed that dividend payment is done on the basis of investors demand. Mostly managers cater to investors by giving them incentives such as dividend premium. By putting a premium non payer is initiated when the demand is high, there is expectation of future earnings, whereas when there is no premium that implies that more investment is done and is discouraging for the investors as psychological point of view. They constructed four stock price based measure for the investor demand, the broadest one was about to check average between market-to-book ratio, second one was checking the difference between the cash dividend and stock dividend share classes, third one was related to dividend initiations this will affect the stock price of company, and lastly future stock returns of payer and non payers. Some investors have time varying demands for dividend payments and if its not fulfilled then essentially it effects the value of the stock prices. So dividend initiations and omissions is connected with the value of share prices. According to this article, when managers pay a dividend premium only then investors are ready to invest and for that reason they studied what sentiments of investors are attached with this time varying dividends premium and what is the most they are interested in. So they came up with the explanation that when dividend premium is high, investors are seeking firms that depicts safety, security in the long run and excess of cash, whereas firm with no dividends means increase in capital and future earnings expectations. So sentiments have a strong correlation between dividend premiums and investors expectations. The relationship between initiations and omissions of dividend premium is apparent to clientele demands. So by concluding these author came up with the result that managers only cater those investor by paying dividends when the investors is willing to put a stock price premium on payers not by when they actually doesnt want it. This is due to the initiation of the high and low demand of dividends. Baker and Wurgler (2003) came up with the appearing and disappearing dividends and they linked this with catering incentives. They used the methodology of Fama and French (2001) to identify a total of four distinct trend in the propensity to pay dividend between the period 1963 and 2000. The propensity to pay dividends increases when a proxy for the stock market dividend premium is positive and decreases when it is negative. They conclude that dividend tends to disappear during pronounced booms in growth stocks and reappears after crashes in such stocks. 3. METHODOLOGY The methodology used for testing different determinants of dividend which has an impact on the profitability, growth and riskiness on Pakistani firms listed on Karachi Stock Exchange for the year 2010. The test will also be constructed to find the relationship between share price reactions to the announcement of divined changes. Another methodology will be used to check the catering theory of dividend and its impact on the investors demand for the certain premium stock on payers. This will follow Baker and Wurgler model (2004), so the existing theory of BW (2004) is used to check whether catering theory exists in Pakistani companies or not. No one has ever done this kind of research in Pakistan before, so this will help in understanding the behaviour of investors towards the premium stocks and will also help us to identify which determinants have more predictive power to explain the changes in dividend policies. So there is theoretical contribution in this research as the theory deve loped is unique, the sample which is to tested is also recent observations so it will give the clear view about todays market. 3.1 Economic model: For testing the major determinants of dividend policy in Pakistan which affects investors perception about the firms value and the affect of the catering theory on this will be done by using the economic model Ordinary Least Squares (OLS). As the data is cross sectional so it will be useful to test through OLS model. The coefficient will be also of OLS. 3.2 Variables: The variables used to test the factors that influence the payout ratio and the dividend yield were ROA, Capital gearing ratios, Price volatility, TA, voting rights and market-to-book ratios. All these values can be taken from the annual report. A firm-year observation is called as a payer if it has positive dividend per share by the ex date, else it is a non payer. The variables taken are : PayersÃÆ' ¡Ãƒâ€šÃ‚ µÃƒâ€šÃ‚ ¼ = New PayersÃÆ' ¡Ãƒâ€šÃ‚ µÃƒâ€šÃ‚ ¼ + Old PayersÃÆ' ¡Ãƒâ€šÃ‚ µÃƒâ€šÃ‚ ¼ + List PayersÃÆ' ¡Ãƒâ€šÃ‚ µÃƒâ€šÃ‚ ¼ Old PayersÃÆ' ¡Ãƒâ€šÃ‚ µÃƒâ€šÃ‚ ¼ = PayersÃÆ' ¡Ãƒâ€šÃ‚ µÃƒâ€šÃ‚ ¼-1 New Non payersÃÆ' ¡Ãƒâ€šÃ‚ µÃƒâ€šÃ‚ ¼ Delist PayersÃÆ' ¡Ãƒâ€šÃ‚ µÃƒâ€šÃ‚ ¼ The first identity defines the number of payers and second describes the evolution. Payers is the total number of payers. New payers is the number of initiators among last years non payers, Old payers is the number of payers that also paid last year, List Payers is the number of payers this year that were not in the sample last year, New payers is the number of omitters among last years payers and Delist Payers is the number of last years payers not in the sample this year. Note that Lists and Delists refer to companies added to and removed from the Karachi Stock Exchange first section. But this will include the data for the previous years too, so this will be difficult eventually to find list payers as the data we will cross sectional. Note that the new lists include the IPOs firms. Below are the three variables defined to capture dividend payment dynamics as in BW (2004) : InitiateÃÆ' ¡Ãƒâ€šÃ‚ µÃƒâ€šÃ‚ ¼ = ContinueÃÆ' ¡Ãƒâ€šÃ‚ µÃƒâ€šÃ‚ ¼ = List PayÃÆ' ¡Ãƒâ€šÃ‚ µÃƒâ€šÃ‚ ¼ = In words, the rate of initiation (Initiate) is the fraction of surviving non payers that become new payers. The rate at which firms continue paying is the fraction of surviving payers that continue paying. It can also be taken as one minus the rate at which firms omit dividend. The rate at which new lists in the sample pay List pay is the payers as percentage of new list at time t. These variables capture the decision whether to pay dividends, not how much to pay. The investors categorize shares based on whether they pay dividends as it could be taken as safety. Another reason for this is the payout ratio is sensitive to profitability and dividend yield is sensitive to changes in share prices. The decision to initiate or omit is always a policy decision. 3.3 Hypothesis: The hypothesis to be tested states that there is no difference in the dividend premium determinants which can cause the dividend policies to change. And the second hypothesis states that there is no impact of catering theory of dividends that exists in Pakistan. To test the propensity to pay dividends depends on dividend premium in stock prices, use time variation in three proxies. The first is the stock market dividend premium variable, which is the difference between log average market-to-book ratio of dividend payers and non payers. The market-to-book ratio is book assets minus book equity plus market equity, all divided by book assets. This could be taken as equal and value weighted averages of market-to-book ratios separately for payers and non payers in each year. The second measure of the relative stock market valuation of dividend payers is the difference between the future value-weighted returns of payers and non payers. According to BW (2004) model, managers rationally initiate dividends to exploits an apparent market mispricing. The high rate of initiations should forecast low returns on payers relative to non payers as the relative overpricing of payers reverses. Market valuation of dividend premium and the future returns is the difference between future returns on value weighted index returns of payers and non payers. The third measure is the difference in the prices of Citizen Utilities (CU) cash dividend and stock dividend share classes. This can be calculated as the difference in the log price of the cash payout share and the log price of the stock payout share. CU dividend premium doesnt reflect anything about investment opportunities. This an advantage over the broader dividend premium variable. And if we talk about the disadvantage of CU dividend premium it is only one, which is stock payout share is more liquid than cash payout class. 3.4 Regression: To examine this relation between dividend premium and the rate of dividend initiation (continuation) formally, the estimates are as follows: InitiateÃÆ' ¡Ãƒâ€šÃ‚ µÃƒâ€šÃ‚ ¼ = a + + + ContinueÃÆ' ¡Ãƒâ€šÃ‚ µÃƒâ€šÃ‚ ¼ = a + + + whereas the dividend premium and Citizen Utilities dividend premium is denoted by this . DATA Sample criterion This proposal includes the data of Pakistani companies which are listed on Karachi Stock Exchange (KSE). The companies which had paid the dividends in 2009-2010 year are included in the sample. The main data will be collected by the annual reports. Every company has reported dividend paid to the shareholders in their annual reports so this is easy to gather information through this. Foreign companies and the financial companies listed on KSE are also included as the sample criterion. Pakistani firms pays dividend once a year unlike the American companies who pays quarterly. So the Ex dividend days are usually in June and July. So the analysis of this research is based on yearly observations. The sample collected includes all the firms in the fertilizer industry, transportation industry, textile industry, financial institutions, FMGC, oil and gas industry and pharmaceutical sector which are listed on KSE and pays dividend for the year 2010. The following data which is being collected through KSE from the annual reports are : Total assets, stock Price and share outstanding at the end of fiscal year, income before extra ordinary items, interest expense, cash dividend per share ex date. The firms with book equity below Rs. 250,000 or assets below Rs. 500,000 are excluded. To calculate the impact of firm characteristics and dividend yield and the payout ratio we need the data of market -to-book ratio, return on equity, return on assets, sales, capital gearing ratio and the previous dividend yield and the payout ratio is also needed. This will tell what factor causes the change in dividend policy and which has more significance on these that will affect the value of the firm. Approximately all the firms who have given the dividend in the year 2009-2010 are included in the sample. Econometric Limitations There are some limitations and assumptions related to our research. Only those firms are included in the sample who has paid dividend in year 2009-2010 The population is assumed to be normal. All samples are Pakistani companies which are listed on only Karachi Stock Exchange. The sample is taken for the one year so the delist companies is not included The sample is random and is a true representative of the population. The firm which has assets below Rs. 500,000 is not included in the sample. The sum of the OLS residual is zero, while the sample average is also zero. The sample covariance between the independent variable and the error term is zero. Other variables were not included due to the non-availability of data. CONTRIBUTION The contribution of this research has realistic impact on the corporate dividend policies of Pakistan. This research will eventually help to determine the main determinants of dividend policy and the impact of that on stock prices. Catering theory of dividends is also another important determinant which influences the policies made for the dividends. This will tell how managers cater to their investors interest and how can they charge a premium for their stock prices. This has not been tested in Pakistani firms data yet, so this is also another contribution that this theory is been tested. The time period is also latest so that will also give a recent view about the todays market and todays investors interests. All the firms that are listed in KSE index and who gives dividend for the specific year are included, and the reasoning of those firms which are not giving dividend that year will also be tested. There will be the comparison between the different corporate sectors of Pakistan who pays dividend and due to this, what is the impact on their share price will also be tested. For example fertilizer sector vs. car industry, how managers cater their investors interest in both. And how can this influences the decision of dividend policies that to be made of that specific industry. Although there is no such research has been conducted in Pakistan, all the research related to dividend policy is done in India and other developing country unlike Pakistan. So this will give new horizon in this field of corporate finance. The basic model presented by Baker and Wurgler (2004) of catering theory of dividends will be tested on Pakistani companies (which are listed on KSE). Baker and Wurgler proposed the decision to pay dividends is driven by prevailing investor demand for dividend payers. Some investors have an uninformed and perhaps time varying demand for dividend paying stocks. . Managers rationally cater to investor demand, they pay dividends when investors put higher prices on payers and do not pay when investor prefer nonpayer. This will be tested that the propensity to pay dividends of corporate sector of Pakistan depends on a dividend premium in stock prices.

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The first statement is to continue the documentation and growth in the understanding of the ever-changing religious demographyRead MoreThe Four Characterist ics of Religion1212 Words   |  5 PagesCHARACTERISTICS OF RELIGION INTERACT TO CREATE A DYNAMIC, LIVING FAITH TRADITION† Religion is the belief and worship of an extraordinary and supernaturally controlling power that has developed and become an essential factor in the way humans have ordered and made sense of the world in which we reside in and is defined by its characteristics. To create a dynamic, living and breathing religion, it must have all of these characteristics that distinguish and separate a religion from others. TheseRead MoreThe Significance And Meanings Behind The Use Of Symbols1110 Words   |  5 PagesThe significance and meanings behind the use of symbols and iconography within Western Christianity and Buddhism has evolved in the depiction of Christ and Buddha. The purpose of this essay is to compare some key elements of Christian and Buddhist symbolism as pertaining to the meaning of concept of God, the soul, suffering, and their view of religious concepts. Concept of God First let’s look the idea of God. According to the Christian religion God is divine and is Omnipresent, Omnipotent, OmniscienceRead More`` Homo Religiosus `` By Karen Armstrong1416 Words   |  6 Pagesaccepted by the society around them. In â€Å"Homo religiosus† Karen Armstrong brings out the materialized definition of an â€Å"individual† through concepts such as religion, activities like yoga, the artistic features of caves, and most importantly the image of Brahma. The detailed notions placed on each concept yields the reassuring meaning that religion symbolically is a safe harbor, in which individuals can feel comforted and relieved. However the question that always comes up is if an individual is willingRead MoreThe Freedom Of The Free Love Movement Essay1582 Words   |  7 Pagesheavily influenced. During this period, the need for children to help maintain farmland was no longer necessary. Cities emerged and reproduction slowed. This peri od was a major turning point for the dominant meaning of sexuality; thus it has great significance. D’Emilio writes about this changing sexual ideology when he states â€Å"especially within the middle class, sexual desires had become increasingly fused with a romantic quest for emotional intimacy and even spiritual union† (84). Sexuality no longerRead MoreEssay on Modern Britain as a Secular Society886 Words   |  4 Pagesof whether or not Religion is losing its importance in todays Society. Bryan Wilson defined Secularisation as being The process whereby religious thinking, practices and institutions lose social significance. This definition itself and not just the topic alone causes problems, it might be argued that it is not possible to measure the significance of such a personal thing as religion and if it is possible it may not even be true that Religion held such a significance

Between the Wars Free Essays

The event that had significant impacts during the interlude between the First and Second World Wars would be the Great Depression. The effect of this financial crisis, not only in the United States but also in other parts of the world, was apparent both in the domestic front and in the international community. The Great Depression started during the late 1920s and would stretch until the next decade. We will write a custom essay sample on Between the Wars or any similar topic only for you Order Now This historical turning-point was triggered by Black Tuesday, which was the day when the stock markets had a major downturn. (Rothbard, 2000) The impact of this event, both positive and negative, was massive indeed as the country was forced into a state of great recession and then reassessment of economic and social policies. (Mcelvain, 1993) In the ground level, the people experienced difficulties, as employment becomes scarce, thereby leading to poverty and hunger, which was prevalent during that decade. The citizens in the grassroots were the ones that was most affected, for the depression was deeply felt by everyone. The length, lasting 10 years, was overwhelming indeed; the extent of the crisis was equally devastating. The agriculture and primary sectors industries experienced economic slumps even bankruptcies, which in turn burdened the people whose wages declined and employment opportunities disappeared. The end of this Great Depression coincided with the start of the Second World War. The implication of the financial crisis was not only social but also political, as policies were forced to be reassessed and eventually changed. The New Deal policy was a result of the crisis. Also, government officials debated the liberal policies in economics, as many abandoned liberal economics, and advocated more protectionist policies. The impact of the Great Depression is far-reaching and vast, as it is political, social and economic. References Mcelvaine, Robert. (1993). The Great Depression: America 1929-1941. United States: Three Rivers Press. Rothbard, Murray. (2000). America’s Great Depression. United States: Ludwig Von Mises Institute. How to cite Between the Wars, Papers

Business Economics Demand Pull and Cost-Push

Question: Describe about the Business Economics for Demand Pull and Cost-Push. Answer: (a) If the wages of cleaners is increased in a burger shop, the supply of burgers will be reduced due to increase in the cost of production. Figure 1: Decrease in Supply (Source: Created by Author) The graph shows that supply from S to S2 that in turn leads to excess demand at the old equilibrium cost P (Canto, Joines and Laffer 2014). (b) Since burger is considered as a normal good and as a result, with the fall in income the demand for burger will decrease. Most of the goods that we usually purchase are considered as normal goods. They are also considered as a superior commodity (Atkinson and Stiglitz 2015). Figure 2: Normal Good (Source: Created by Author) A single seller who sells a unique good in the market characterizes a monopoly market structure. The seller does not face any competition in the monopoly market, as he is the single owner of commodities with no close substitutes. On the other hand, an industry is a natural monopoly when a single firm can supply a commodity to a complete market at a subordinate cost (Askar 2013). Figure 3: Monopoly (Source: Created by Author) The above graph shows that more quantity Q2 can be sold at a lower price P2. The slope of the AR curve is downward sloping under monopoly that in turn implies that if the monopolist sets the high prices, the demand will decrease. Under the monopoly market structure, there is bound to be interaction between the forces of demand and supply (Anton and Biglaiser 2013). Under perfect competition price is equivalent to marginal cost at the equilibrium output. However, under monopoly the price is larger than average cost. When the Reserve Bank of Australia intervenes in the foreign exchange market, it generates demand as well as supply for the Australian dollar by purchasing or selling Australian dollars against a different currency. In the exchange market of the Australian dollar, the RBA always conducts its interference due to the fact that liquidity and earnings are utmost in that market. Most of the transaction of the foreign exchange intervention of the RBA takes place in the spot market. Traditionally, the Reserve Bank of Australia has usually chosen to intervene by performing in the foreign exchange market in its own name (Benes et al. 2015). The benefits to Australia of the appreciation of the Australian dollar are as follows: With the appreciation of the Australian dollar, Australian exports are bound to become more costly. The imports into Australia will become reasonable and as a result, there will be increase in demand for imports. This has the probability to worsen the current account deficit (Garton, Gaudry and Wilcox 2012). The preferential trade agreement that Australia shares with China mainly includes a currency deal. This in turn allows the Australian dollar to trade directly against the currency of China. China has also allowed RMB to be traded against the AUS dollar directly. As a result, if the foreign investors become optimistic about China, it would lead to an increase in the demand for RMB. The economic interaction between Australia and China is likely to provide a wider implication for the Asia-Pacific area both in terms of state capital flows as well as in terms of financial security (Bowman, Gilligan and OBrien 2015). The percentage change in the value of the Wholesale Price Index on a yearly basis is termed as inflation. It efficiently measures the change in the prices of a basket of commodities and services in a year. The imbalance between demand and supply of money as well as changes in the cost of production and distribution leads to inflation (Bresciani-Turroni 2013). The major cause of inflation is merely the growth in the quantity of money. The level of prices and the value of money also lead to inflation. There are mainly two types of inflation that includes demand-pull inflation and cost-push inflation. Figure 4: Demand-pull inflation (Source: Created by Author) Demand-pull inflation takes place when aggregate demand for commodities and services in an economy increases more rapidly as compared to the productive capacity of the economy (Addison and Burton 2013). Figure 5: Cost-push inflation (Source: Created by Author) On the other hand, cost-push inflation takes place when prices of production procedure inputs rise. Increasing wages are also a major factor that leads to cost-push inflation as wages are considered the most imperative cost for firms. The two economic policies that the government could apply to reduce inflation are as follows: Fiscal Policy: The government can raise taxes as well as cut spending. These in turn improves the budget circumstances as well as help to reduce demand in the economy (Auerbach and Gorodnichenko 2012). 2. Monetary Policy: The rate of interest could be increased by the Central Bank that will in turn make borrowings more costly and saving more attractive. The quantity theory of money states that the wide-ranging level of prices of goods and services is directly comparative to the amount of money in circulation or money supply. It mostly states that there is a direct relationship between the quantity of money in an economy as well as the level of prices of commodities and services sold (Su et al. 2016). According to Quantity Theory of Money, if the amount of money doubles in an economy, the level of price also doubles. According to the economists, a rapid increase in the money supply leads to a rapid rise in inflation. Money growth that exceeds the expansion of economic output results in inflation. If the makers of the monetary policy decrease the supply of money, the rate of interest will get increased. If the rate of interest are determined by free economy it becomes more attractive in order to deposit funds as well as to diminish borrowing from the Central Bank. One of the rate of interest that is advertised in the free economy is the coupon rate. As per the economists, competitive markets allocate resources efficiently. According to the economists, efficient allocation of resources takes place when individuals are able to choose the commodities and services that they desire. Resources are being allocated effectively mostly when they are being used to manufacture the appropriate amount of goods as well as services that is desired mostly by the customers. Allocative efficiency requires that an individual produces each commodity up to the point where the advantage it conveys to the society. According to the economists, an efficient allocation of resources is the combination of distribution of inputs as well as outputs such that any alter in the economy that makes an individual better off. Efficiency is also obtained when there is efficiency in the production. In other words, the manufacturing of the largest value of commodities as well as services with available resources. It also takes when all mutual benefits gained from busin ess are exhausted (Rancire and Tornell 2016). The non-price determinants of demand are as follows: Branding: Sellers make use of advertising, product quality, and customer service as well as product differentiation. That in turn leads to strong brand images and as a result, the purchasers have a strong preference for their commodities. Hence, the demand curve shifts towards the right as the demand for products increases. Market Size: With the rapid expansion of the market, the demand of the customers for the goods is likely to increase (Verheyen 2015). Complementary goods: The demand for a commodity is influenced by the change in the price of the product. As a result, the demand for movies is likely to get impacted by the price of popcorn in the movie theatre. Similarly, the demand for movies in the particular theatre is also likely to get influenced due to the price of nearby parking. Available Income: If the amount of income of the purchasers alters, the propensity to purchase will also change. Thus, irrespective of price, if there is an economic boom, an individual is more likely to purchase. Seasonality: The requirements for commodities alter by time of year. As a result, there is a powerful demand for grass mowers in the spring, but not in the fall. Future Expectation: The purchasers are likely to purchase more commodities in the future, if they expect that the price is likely to increase in the future. The value of money is determined by the supply of money as well as demand for money that is similar to that of the price of a commodity. Quantity Theory of Money states that the general level of price (P) is directly relied on the supply of money (M). In other words, if M doubles, P will also double. On the other hand, if M is diminished, P will also diminish by the similar quantity (Cline 2015). The growth of the money supply determines the inflation rate. According to Quantity Theory of Money, if the amount of money doubles in an economy, the level of price also doubles. This in turn leads to inflation in the economy. As inflation increases, the value of money diminishes. References Addison, J.T. and Burton, J., 2013. The demise of demand-pull and costpush in inflation theory.PSL Quarterly Review,33(133). Anton, J.J. and Biglaiser, G., 2013. Quality, upgrades and equilibrium in a dynamic monopoly market.Journal of Economic Theory,148(3), pp.1179-1212. Askar, S.S., 2013. On complex dynamics of monopoly market.Economic Modelling,31, pp.586-589. Atkinson, A.B. and Stiglitz, J.E., 2015.Lectures on public economics. Princeton University Press. Auerbach, A.J. and Gorodnichenko, Y., 2012. Measuring the output responses to fiscal policy.American Economic Journal: Economic Policy,4(2), pp.1-27. Benes, J., Berg, A., Portillo, R.A. and Vavra, D., 2015. Modeling sterilized interventions and balance sheet effects of monetary policy in a New-Keynesian framework.Open Economies Review,26(1), pp.81-108. Bowman, M., Gilligan, G. and OBrien, J., 2015. The China-Australia Free Trade Agreement and the Growing Acceptance of Chinese State Capital Investment.Asian Journal of Public Affairs,8(1), pp.03-24. Bresciani-Turroni, C., 2013.The Economics of Inflation: A study of currency depreciation in post-war Germany, 1914-1923. Routledge. Canto, V.A., Joines, D.H. and Laffer, A.B., 2014.Foundations of supply-side economics: Theory and evidence. Academic Press. Cline, W.R., 2015. Quantity Theory of Money Redux? Will Inflation Be the Legacy of Quantitative Easing?.National Institute Economic Review,234(1), pp.R15-R26. Garton, P., Gaudry, D. and Wilcox, R., 2012. Understanding the appreciation of the Australian dollar and its policy implications.Economic Round-up, (2), p.39. Rancire, R. and Tornell, A., 2016. Financial Liberalization, Debt Mismatch, Allocative Efficiency, and Growth.American Economic Journal: Macroeconomics,8(2), pp.1-44. Su, C.W., Fan, J.J., Chang, H.L. and Li, X.L., 2016. Is there Causal Relationship between Money Supply Growth and Inflation in China? Evidence from Quantity Theory of Money.Review of Development Economics. Verheyen, F., 2015. The role of non-price determinants for export demand.International Economics and Economic Policy,12(1), pp.107-125.

My Most Frightening Day free essay sample

My Most Frightening Day Most people don’t have any idea when their most frightening day will be, it could have been when they were young or maybe it has not quite happened yet. I did not have the luxury of surprise although I also didn’t exactly have a day marked on my calendar. I knew my most frightening day would come when a doctor called my house and informed my family that my great grandpa Papahualo had two weeks to live, and my dad informed me that we were going to fly out there to be with him.He was like a father to my dad and he traveled with us most everywhere we went and now, we were going to be with him before his greatest journey yet. I had been planning to go to New York during winter break; I was hoping to spend time with Papahualo as I went around sight-seeing and getting to know the city. This was not the trip I had planned at all. It wasn’t during winter break, it was two weeks before classes would begin for me, and this was not how I wanted to see him.The last time I had seen Papahualo was one year before when he was strong as a horse and could still pick me up when he gave an extra strong hug. We bought the tickets two days in advance and everything happened so fast that it almost seemed like a dream. Papahualo was one of the healthiest, strongest people I knew. He was not the frail old man the doctor described over phone with his organs slowly shutting down. On the plane everything felt normal, like any other trip, I am used to traveling, but never like this.Even though the flight was short it felt like a nerve racking eternity of uncertainty, I couldn’t get a wink of sleep. I was sure I would break down sometime on the plane, if not then maybe once we got there and everything stopped feeling like a dream and became real but that moment never came. We went almost immediately to the hospital and although I ran scenario after scenario in my mind of what it would be like, I had no idea what to expect.My Papahualo’s lungs were filled with water and due to his organs shutting down, especially the kidneys and liver he didn’t look pale but instead a slight yellow color took over. As of the day before he had stopped being able to talk, he was so weak and fragile he barely resembled the man I knew wrinkle by wrinkle in my memories. He was so sedated for the pain that he was only capable of sleeping, I was told he had been slightly delusional and I wasn’t sure if he would even know who I was. The nurses and doctors had been having issues with him wanting to get up and leave.They just could not understand that nothing ever stopped him from being independent and able to live just like them only weeks before. He had raised or taken care of so many children, grand children, nephews, nieces and even great grandchildren but had never had to be taken care of to this extent. I spent the first night at his bedside on a reclining chair, it was not the most comfortable sleeping arrangement but it was better than the chair my aunt kindly offered to sleep in. The first time he opened his eyes I filled with excitement and fear all at the same time. I leaned in and asked if he knew who I was, he whispered â€Å"of course† and squeezed my hand as if he would never let go. That’s what I wanted deep down, I never wanted to say goodbye I had never even so much as given a thought to it. How do you say goodbye to someone who has always been there and watched you grow? How do you let go of someone who has meant so much to you for so long that a future without them seems impossible? I was holding my breath waiting for him to take his last. It is the scariest thing I have ever had to do.The second night I spent the same, just holding his hand and staying awake until around six in the morning when my aunt or uncle would wake up and take over my shift, the nurses were not the only ones up around the clock. By the third night my family may as well have locked me up in my aunts’ house, they insisted I need to take care of myself too and finally go home, eat a good meal and get some real rest. The fourth night was my last night in New York. My great grandpa had finally been transported to a hospice and we knew it was now only a matter of time.It was decided that my two aunts and uncle would stay overnight with him but I begged and was allowed to stay instead of my uncle. He was surrounded by family from the beginning but now even more than ever with people from the area were even coming to visit trying to give their last goodbyes and sharing memories with the rest of us. He was so respected, admired, and loved; no one ever had anything bad to say of him and this was not just because of the circumstances. As it got later the family proceeded to clear out, leaving me with my aunts.I was reading my book and positioned myself as usual by his bedside until the familiar sound of his peaceful breathing began to change and slow down. Was this the moment everyone has been dreading? I put my book down, got out of my chair and walked closer. I wasn’t alone because my aunts immediately were asking him if he was okay and comfortable enough and the mandatory things they’d say when he opened his eyes or got their attention. As he was breathing slower and slower my heart raced faster and faster, I squeezed his hand and I felt him still holding on.I looked into his eyes and tried to find a conscious mind behind the stare but there was none. My aunt called her sister and explained their dad wasn’t breathing the same â€Å"he’s breathing too slowly, he’s taking so long to breathe †¦he’s not breathing anymore†. I closed his eyes for him, which I felt was an honor because only one person could ever put you at your final peace like that. I didn’t say anything because there was nothing left to say, I had been talking to him in the few moments we had alone and he knew I loved him very much. Words were not needed at the moment just a few silent tears. Then came the duty of delivering some phone calls out to family, and I had to maintain calm. I cannot describe all the emotions I went through in those four days; twenty six letters in different combinations could not possibly express the love, pain, exhaustion and fear that passed through me. I have never seen someone losing their life slowly before my eyes, but it’s a feeling I will never forget and one that scared me beyond what I can explain. I don’t wish it on anyone but in a way I also do feel special to have truly been there until the very end. Rest in peace Marino Eduardo Pacheco Alegre, better known as my Papahualo.

Essay and the Third Person Story Essay Sample

Essay and the Third Person Story Essay SampleA third person essay is a pretty easy task to perform. All that is needed is for the student to come up with a story in which they have an element of influence. There are different types of stories that can be considered here, and the various exercises can be performed with the help of a third person essay sample.The first level of the exercise can be done by coming up with a story from a book which can be considered like the first person literature. In this case, you would have to come up with an account of what you have read. At the end of the story, you will have to explain why it was so good.The second level of the exercise can be done by coming up with an amendment to an article or book which was written in the first person. In this case, you would have to come up with an explanation of why the writer made a change in the story, the scenes and other elements which were not well executed in the original. This can be done by coming up w ith a new version of the story. This is one of the best examples of a third person essay in which you can also come up with a new definition of the terms which were not used in the original.The third level can be done by writing a story based on any subject which is related to the same topic as the original and comes up with the same conclusion. This is one of the better cases where the teacher can use the third person essay sample.The fourth level of the exercise can be done by coming up with a new understanding of the whole event. This would be done by coming up with a narrative which is entirely different from the one which the teacher gives in the class. This is where the reader can come up with a new understanding and interpretation of the whole story.The fifth level of the essay sample can be done by coming up with a story which revolves around the person from whom the author got the information. In this case, the teacher can come up with the response to the question asked by the student. This is one of the best and easiest forms of the story in which the student can come up with a new perspective of the events which he had already been exposed to in the class.The sixth level of the essay sample can be done by coming up with a new strategy in the same manner as the previous levels. At the end of the story, the teacher will have to explain the strategy used in the story. This is another one of the best ways of coming up with a third person essay in which the student can come up with a new understanding of the situation.

Factors Affecting the Changes in Oil Price

Introduction Statement of the thesis The decline in oil prices is likely to cause an increase in consumption, a decrease in inflation, and an increase in real GDP growth rate in the next few years. In recent times, oil prices have been falling and seem to stabilize at around 40 dollars a barrel.Advertising We will write a custom research paper sample on Factors Affecting the Changes in Oil Price specifically for you for only $16.05 $11/page Learn More This paper will examine factors determining the changes in oil price and how it affects the country’s economy, with a focus on the U.S. economy. There are uncertain reasons regarding this recent steep fall in oil prices, such as temporary and permanent shifts in oil demand and supply, such as the entrance of the United States as a leading producer in the market. We will further investigate how changes in oil prices affect a country’s GDP and its economy as a whole, considering selected economi c indicators such as nominal and real interest rates, real GDP growth rate, real wages, and final consumption. If the change in oil prices has a strong influence on the rate of inflation, there is a need to specify the actions that policy makers should consider in response to the changes. Statement of the problem/ issues The main problem is to find out whether there is a strong association between crude oil prices and other economic indicators, such as interest rates, final consumption, real GDP growth rate, and inflation rate. If there is a strong correlation between oil prices and selected macroeconomic indicators, the government should consider an intervention to protect the economy from fluctuations in oil prices and the rate of inflation.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The decline in oil prices is likely to cause a decline in export demand because of reduced i ncome from oil exporting countries. The decline in oil prices is also associated with a decline in investment in the oil gas sub-sector (Baffes at al., 2015). Reduction in investment in the sub-sector may have a small negative impact on aggregate demand. There is uncertainty on how long the low prices will last. It may prevent interest rates from dropping further when interest rates have a correlation with oil prices. If the low prices are short-lived, any intervention from the government will cause a distortion that may last longer than expected. Blinder Rudd (2008) suggest that a rise in inflation raises concern in a similar manner to disinflation. Nelson (2004) discusses that the economic policies should not react to the changes in oil prices in a similar manner it had reacted in the past oil shocks. Hypothesis There are multiple graphical presentations in existing literature that portray that inflation and oil prices follow the same trend line. This paper seeks to establish wh ether there is a strong correlation between changing oil prices and the selected macroeconomic indicators. It follows the first impression they give when one studies the graphical presentations. We state the following hypotheses to assist in finding a solution to the strength of the influence of oil price changes to the economy.Advertising We will write a custom research paper sample on Factors Affecting the Changes in Oil Price specifically for you for only $16.05 $11/page Learn More H0: There is no strong correlation between changes in oil prices and selected macroeconomic indicators. H1: There is a strong correlation between changes in oil prices and selected macroeconomic indicators. The hypotheses are derived from the perception that inflation rates respond quickly to oil supply shocks. When historical data is plotted on graphs, the trend lines indicate that key economic indicators follow the same trend as that of oil prices. However, some economic indicators tend to move in an opposite direction, such as real GDP and real interest rates. The periods of oil shocks have been followed by periods of recession. Proponents claim it is the U.S. government’s response that caused the recessions (Blinder Rudd, 2008). Opponents claim that the government’s response did not increase the intensity of the oil shocks. They blame the delayed policy in response to the oil shocks (Nelson, 2004). Policy makers can determine the level of intervention to similar oil shocks by finding the strength of the influence of changing oil prices to key economic indicators. A disproportionate application of policy may intensify the effects of oil price changes. Literature review and analysis of historical data Effects of the 1970s oil embargo and other oil shocks on the level of the GDP and employment. Oil prices are affected by the supply and demand of crude oil on the global market. In the 1970s, the supply of oil reduced when the OPEC coun tries reduced their oil production (Baffes et al., 2015). They also banned member states from selling oil to the U.S., and other countries that supported Israel in the Arab-Israel conflict.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More It was labelled as OPEC I, which saw the oil prices quadruple within a short period (Blinder Rudd, 2008). OPEC II developed as a result of Iraq invading Iran in the late 1970s. At the time, the U.S. was more reliant on oil for energy than it is today. Figure 1, shown below, shows that a recession followed the periods of oil shocks. Figure 1 Data sources: World Bank (2015), BEA (2015), and EIA (2015a). Figure 1 shows that the real GDP annual growth rate and the trend of oil prices moved in opposite direction in the 1970s. According to the graph, there were recessions in 1970s, early 1980s, early 1990s, and towards 2010 (the 2008 financial crisis). The Real GDP dropped to touch the 0% growth rate line when the purchase price of oil increased. The percentage of those who were unemployed also increased side by side with the increase in oil prices (see Appendix A for tables). In the 1970s, the trend lines in the graph indicate that unemployment levels took similar turns as the trend li ne of oil prices. The graph also shows that the influence of the changes in oil prices weakened in the period that followed the mid 1990s. Annual oil consumption in the U.S. over the last four decades In the beginning of the study, we expected that the production of oil in the U.S. had increased while the consumption had declined. Figure 2 shows that the U.S. still needs to import crude oil. However, the size of oil import that needs to be imported has declined to levels that are similar to those in the mid 1970s and mid 1980s. By the end of 2013, oil production was on a steep upward trend. Figure 2 Data sources: EIA (2015b), and EIA (2015c) From Figure 2, it can be seen that oil production in 2013 rose above the level it was in the 1980s. The difference between oil production and consumption also approached zero, which indicates a reduced need to import crude oil (see Appendix A for tables). The reduced need to import reduces the demand for oil in the global oil market. It may als o result in a further strengthening of the dollar against foreign currencies, as it creates a less supply of ‘petrodollars’ to the global market. The effects of cost-push inflation and the phenomenon of stagflation arising from the oil shock of the 1970s Based on the graphs, there is a strong indication that inflation rates rose during periods of higher oil prices. Blinder Rudd (2008) discuss that the 1970s and 1980s experienced two periods of double-digit inflation rates, which were attributed to oil prices. Blinder Rudd (2008) mostly relied on trend lines to elaborate that the movement in oil shocks is similar to that derived from inflation rates. As it can be seen in Figure 3, inflation follows a similar trend to changes in oil prices. The periods with the highest inflation rate in the four decades include the 1973-1974 period and 1978-1980 period (Blinder Rudd, 2008). During the 1973-1974 period, inflation rate varied between 11.04% and 9.13%. During the 1978-198 0 period, it varied between 7.65% and 13.51% (World Bank, 2015, see Appendix A for tables). There is a strong indication that inflation rates are influenced by changes in oil prices. Inflation has never been higher than it was during the two periods over the forty-year period. Blinder Rudd (2008) link the high inflation rates in the early 1970s to the increase in food prices, oil prices, and the removal of price controls during Nixon’s administration. While higher food prices were linked to the shortage in food supply, it is visible that food prices are also affected by oil prices in the current oil supply shocks. Energy prices were the main source of inflation in the late 1970s (Blinder Rudd, 2008). Cashell Labonte (2008) explain that energy prices may affect the prices of other products because it is a key input in the production of many other products. Low inflation rate targets and low unemployment rates may be a challenging combination for policy makers (Nelson, 2004) . The 1970s’ economic condition was known as stagflation. It is a term used to describe rising inflation rates and high unemployment rates occurring at the same time. Cashell Labonte (2008) explain that the belief that policy makers had on Phillips curve made them experience a dilemma in dealing with rising inflation levels in the 1970s. The Phillips curve predicts that inflation will rise and unemployment will fall in an inverse relationship. An expansionary monetary policy increases demand, but it also stimulates inflation. The economy needs growth in demand to drive investment and economic growth. Nelson (2004) discusses that monetary policy was not viewed as an appropriate instrument to restore stability during the 1970s cost-push inflation. Cashell Labonte (2008) suggest that stagflation should not raise a lot of concern because the economy will return to its natural level of full employment, despite supply shocks. The periods of high oil prices are also known to be th e periods with the highest levels of inflation. However, in the last decade, the inflation rates appear not to respond with the same magnitude as the changes in oil prices. It may be an indication of an effective application of monetary and fiscal policies. In 2008, oil prices changed because of a decline in demand derived from the global recession. The increase in oil prices, after 2008, can be seen as a retraction of the lost upward trend. It may explain the reason for less volatility in inflation rates. In the last decade, there has been a decline in oil-intensity in energy production in the U.S. Figure 3 Data sources: BP (2015), EIA (2015a), and World Bank (2015) Figure 3 elaborates that the changes in the selected macroeconomic indicators do not match the volatility of oil price changes in magnitude. Nominal lending rates and inflation rates were more volatile to changes in the 1970s and 1980s than they have become in the last decade. The figure elaborates that real GDP growth rate reduced each time there was an increase in oil prices. It is only in 2008 that real GDP growth rate fell, despite a fall in oil prices. The growth rate of final consumption also declined in a similar manner. In the 1970s, it was expected that the reduction in employment levels would reduce the demand for oil. Reduction in demand would reduce the level of inflation (Blinder Rudd, 2008). Different views held that the rising oil prices only accounted for about a third of the inflation experienced in the U.S. (Blinder Rudd, 2008). Figure 3, shown above, may contribute to the argument because there is a big difference between the size of the percentage change in oil prices and the percentage change in key macroeconomic indicators. The main reason for the low impact in the U.S. is that local production cushioned against the effect of oil supply shocks. The price of oil increased four times in the global markets, but the refiners’ acquisition cost increased by about 100% in the U.S. (Blinder Rudd, 2008). In the future, as the economy turns to renewable energy alternatives, the effect of oil shocks may be reduced further. Some authors blamed the government for the delay in using monetary policy to reduce demand for oil (Nelson, 2004). Blinder Rudd (2008) discuss that the government should not be blamed because the inflationary pressures did not originate from its monetary policy. Historical data also shows that the supply of money almost declined during the period (Nelson, 2004). Cashell Labonte (2008) discuss a research carried out by Bernanke and other authors that indicates that policy responses may make the effects of oil shocks to have a larger impact on prices. The change in oil prices has a small impact on overall price levels when there is no intervention. The government is expected to overlook the effect of oil shocks when proposing policies. In response to Bernanke’s findings, some authors propose that it is unreasonable to withdraw economic policy when the economy is experiencing higher inflation levels (Cashell Labonte, 2008). Bernanke and his colleagues separated the effects of oil shocks on the economy using a simulated model. Opponents suggest that it is problematic to separate the effects of oil shocks from the effects of monetary policy in reality. It requires the government to respond, even when oil prices fall. One of the limitations of using a contractionary monetary policy to contain inflation is that reducing the U.S. demand will not affect the demand of other countries. However, the U.S. contributes a lot to global demand, reducing its demand would have an impact on reducing global demand. Another weakness of monetary policy is that there is a lag between application and effects, which may take time before they affect aggregate demand (Cashell Labonte, 2008). The 1978-1980 oil supply shocks lasted a shorter period. Using monetary policy, in trying to stabilize the economy, would have effects occu rring in a period they are not needed. It is more appealing to allow the short-term market shocks to be restored through the market mechanism, back to the equilibrium price. Oil prices have an impact on inflation when they are changing. Once they have adjusted and are stable, Cashell Labonte (2008) explain that it should not be of concern to policy makers. Higher oil prices have no effect on inflation, provided they are stable. Market forces will take the economy back to the natural rate of employment. The only challenge is that there are different levels of the natural rate of employment in different periods and countries. The Current Oil Prices Causes There are a number of periods in which oil prices have fallen since the 1970s. Oil prices fell in 1985, 1990, 1998, 2001, and 2008 (Baffes et al., 2015). In 2008, the fall in oil prices was associated with the fall in demand as the world economy sank into recession (McCafferty, 2015). In 1997-98, it was caused by the Asian economic crisis (Baffes et al., 2015). In all the oil shocks, the market was affected by either the supply of oil or its demand. The current sharp decline in oil prices is caused by increased supply. The other causes act through their effect on demand and supply. In the historical periods, one of the causes of the fall in oil prices has been an increase in production. In 2014, the fall in oil prices responded to a similar cause. Prior to the fall in prices, there was an increase in oil supply, followed by an accumulation of oil reserves. There has been an increase in production in the U.S. as shown in Figure 2. There has been an increase in oil supply since 2010 (McCafferty, 2015). In the global market, disruptions in supply only occurred in 2013 through the political instability in Libya and Iraq. The difference between the falling prices in 2014-2015 and other periods is that the supply has not been cut by OPEC as it has been happening in similar situations. Saudi Arabia used to play a cru cial role of reducing supply, which allows prices to stabilize. In the recent period, Saudi Arabia intends to push back firms that supply oil from high production cost rigs into cutting their supply. Baffes et al. (2015) discusses the point as a change in OPEC objectives. They have shifted from using oil prices to keep their market share to keeping their current production levels and relying on their competitiveness. Saudi Arabia holds the advantage of producing oil using one of the lowest costs in the global market. In the U.S., some drilling firms have postponed production in high production cost rigs (McCafferty, 2015). The current increase in oil supply may last a longer period than previous oil shocks because of the presence of new producing countries that want to capture a larger market share. Another reason is that the non-OPEC producers account for 58% of the global oil production, which may reduce the influence of OPEC. Baffes et al. (2015) predict that the lower oil prices will stabilize before the end of 2016. The high prices that followed the 2008 recession were one of the drivers of an increase in investment in oil production. McCafferty (2015) explains that the high oil prices made high production cost oil rigs to become economically viable. An increase in oil rigs caused the supply of oil to increase. The introduction of new technology in the U.S. for the extraction of oil and gas also increased supply in the U.S. In the 1980s, the venture into deep sea drilling and harsh climate environments caused an increase in supply in a similar manner (McCafferty, 2015). The U.S. shale oil production has been able to increase global production levels by about 1% annually since 2011. The demand for oil declined in the global market fell by about 0.8 million barrels per day while the U.S. oil supply increased by 0.9 million barrels per day (Baffes et al., 2015). It has resulted in increased supply and reduced demand. The appreciation of the U.S. dollar again st major currencies is cited as one of the contributing factors to falling oil prices. Baffes et al. (2015) explain that simulations indicate that a 10% appreciation in the USD will cut oil prices by between 3% and 10%. The impact of an appreciating USD is felt through a loss in purchasing power from countries that use the dollar to engage in international trade. Baffes et al. (2015) discuss that there was about a 10% appreciation of the USD in the last half of 2014, which may contribute to falling oil prices. A stronger dollar reduces the demand for oil in the global market through the loss of purchasing power. Effects The downward trend in oil prices may increase global economic growth in the next two years. According to the IMF, the recent fall in oil prices may result in the world economy growing by about 3.5% in 2015 and 3.7% in 2016 (McCafferty, 2015). Baffes et al. (2015) discuss that models have been used to estimate that a 30% decrease in oil prices will result in about 0.4 % to 0.9% decline in global inflation. Oil prices affect the economy through three channels, which include input costs, changes in real income, and the response of policy makers (Baffes et al., 2015). These channels directly and indirectly affect other economic indicators. In the UK, lower oil prices have been associated with a fall of inflation below targeted levels. In 2015, the inflation rate was 0.5% in January and 0.3% in February (McCafferty, 2015). Cheaper oil increases the purchasing power of workers through real wages. As the prices of other products fall, workers will be able to purchase more commodities using the same level of nominal income (McCafferty, 2015). It may increase aggregate demand, which will stimulate increased production. There are also negative effects of higher real wages. Blinder Rudd (2008) discuss that higher real wages relative to productivity will put pressure on wage rates and reduce employment demand. In the medium-term, high real wages will incre ase unemployment. In recent years, wages are considered to have absorbed most of the prices changes derived from oil shocks than it was in 1970s (Blinder Rudd, 2008). McCafferty (2015) supports the notion that lower oil prices does not translate into higher capital accumulation and higher productivity. Other factors have to be used to increase income levels. According to McCafferty (2015), there is a lack of a model that elaborates how to set interest rates in response to sharply falling oil prices. The lack of a clear level of interest rates may cause policy makers to avoid using interest rates in response to the current fall in oil prices. An inappropriate level of response may have adverse long-term effects on the economy. The study by Bernanke and co-authors gives a finding almost similar to the simulation by the Bank of England, which suggests that lower oil prices have a very small impact on the level of GDP (McCafferty, 2015). Bernanke and co-authors estimated that GDP would rise by 1.3% and inflation by 0.13% when oil prices rose by 10%, if there was no intervention from monetary policies (Cashell Labonte, 2008). The Bank of England estimated that a 10-percent fall in oil prices would increase the GDP by 0.1% in two years (McCafferty, 2015). These studies tend to indicate that the effect on oil prices on the GDP is minimal without the interference of government policies. Cashell Labonte (2008), as well as Blinder Rudd (2008), highlight the notion that the government’s effort in trying to control inflation from oil prices has been the source of recessions in the past. Previously, Figure 3 has shown that the effect of oil prices fluctuations on economic indicators was small and is becoming smaller. It shows that government intervention should be minimal in response to oil shocks. One of the reasons that the U.S. has become less sensitive to oil shocks is that the economy has become less oil-intensive than it was in the 1970s (Blinder Rudd, 20 08). The U.S. has also reduced its reliance on imported oil through the years. Figure 4, shown below, shows that the reliance on oil for energy production has reduced as a percentage of energy needs. Figure 4 Source of data: World Bank (2015) A less percentage of the U.S.’s energy consumption is derived from oil. Baffes et al. (2015) discuss that the impact of falling oil prices may have an impact of varying magnitude on different countries depending on the intensity of oil consumption in a country. In Asian countries, the fall in oil prices is weakening their currencies and causing an increase in capital outflows (Baffes et al., 2015). It is one of the ways oil shocks may affect financial markets. Policy in response The effect of the oil shocks has grown weaker in the last decade. According to Baffes et al. (2015), the effect of oil prices may end in 2016. Central banks do not need to respond to the fall in oil prices through a monetary policy because the phenomenon will be short-lived. However, in the European countries, the rate of inflation was maintained at low levels, an expansionary monetary policy may be needed to maintain inflation closer to the targeted levels. Disinflation may not be preferred. In countries such as Egypt, the lower oil prices provide countries, which usually support oil consumption through subsidies, to withdraw subsidies if it is part of their long-term goals (Baffes et al., 2015). In response to lower oil prices, the U.S. does not need to respond with a cut in the government expenditure. Methodology Explanation of theoretical model The paper starts with an examination of the literature review of the causes and effects of oil shocks to the economy. There was examination of policies in response to changes in oil prices. In line with existing literature, the paper has used graphs for analysis. The graphs were developed from historical data, which covers four decades on economic indicators. Percentages are used for most indica tors because they allow a better comparison of effects than the use of absolute values. Spearman’s rank correlation has been applied in trying to find out whether there is a strong association between oil prices and other macroeconomic indicators. One of the reasons for applying the rank correlation is that the curves are non-linear. There is the presence of outliers. Rank correlation has been used by Blinder Rudd (2008) to analyze the effects of oil shocks to the U.S. economy. Pearson product moment correlation has been used by Baffes et al. (2015) in describing the association between changes in oil prices and macroeconomic indicators. In this paper, the product moment correlation has been used to compare results from the rank correlation. Correlation is preferred because it is difficult to separate the effects of oil shocks from the effects of government policy. Baffes et al. (2015) analyze trends in oil prices using correlation and finds out that only the core inflation rate may have a negative correlation with oil prices. Inflation derived from the CPI should have a positive correlation with changes in oil prices. In line with the literature review, changes in oil prices should be used instead of oil prices to assess their impact on the economy. The results show that using absolute values in oil prices results in findings that are contradictory to existing literature. Statistical analysis In the results, the Spearman’s rank correlation indicates that there is a weak positive correlation between inflation and changes in oil prices over the forty-year period. However, the Pearson product moment correlation indicates that there is a strong relationship between changes in oil prices and the inflation rate. The results conform with existing studies that inflation responds to changes in oil prices rather than higher oil prices. Cashell Labonte (2008) and Baffes et al. (2015) suggest that once prices have stabilized, high oil prices have no impac t on inflation. Table 1 There are a few reasons for contradictory results when absolute prices are used. The reason for negative correlation is evident from the fact that the forty-year period is a long period, the highest inflation rates are in the 1970s and the highest oil prices appear after 2009. It causes the rank correlation to be negative. Another reason for the negative correlation is the nominal oil prices. Result would be different if oil prices were chained to a base year. There is an accumulative inflation rate that makes oil prices in recent years higher than in the 1970s. The result leads to the acceptance of the null hypothesis (H0) that there is no strong association between changes in oil prices and selected macroeconomic indicators. However, inflation rates show a strong positive correlation with changes in oil prices under the Pearson product moment correlation. There is a weak negative correlation between changes in oil prices and real GDP growth rate, final con sumption, and real interest rates. Changes in oil prices have a weak positive correlation with nominal lending rates. Data collection Data used in the paper was collected from government agencies’ databases and corporate databases. The World Bank (2015) database provided a large group of data, in Excel format, from which data on real GDP growth rate, nominal lending rates, real interest rates, inflation rates, and annual growth rate of final consumption was obtained. The EIA (2015a) provided data on the first purchase price of crude oil from 1970 to 2014. The EIA (2015b) and EIA (2015c) provided data on consumption and production of oil from 1980 to 2013. The BP (2015) database filled the gap by providing data for oil production and consumption from 1970 to 1979. There was a negligible difference between data provided by EIA and BP databases on oil production and consumption. The BP database worksheet also included data on oil prices, though it was not used in the analysis. P reference was given to the EIA historical data on oil prices. BEA (2015) provided data on the level of GDP. Conclusion Summary of the results There is a weak relationship between changes in oil prices and key economic indicators. The weak correlation may be explained by the reduced impact of oil shocks in the last decade. In 2008 recession, changes in oil prices and changes in key economic indicators moved in a different direction than it was expected. The effect is also reduced by the fact that the government has implemented policies that keep the nominal interest rates at a fixed lower level. It has also used an expansionary monetary policy that may overshadow the effects of increasing oil prices since 2009. Existing theories indicate that only about a third of the effect of changing oil prices may be reflected on the macroeconomic indicators. One of the limitations of the study is that it is difficult to separate the effects of changing oil prices from the effect of government po licy using historical data. They are applied simultaneously and the effects are spread across different macroeconomic indicators, which have a second-wave of effects. As a matter of fact, the correlation results only measure the extent to which macroeconomic indicators have a similar trend to changes in oil prices. Inflation rate is the macroeconomic indicator that appears to be greatly influenced by changes in oil prices. Recommendations Policy makers do not need to respond to current changes in oil prices. One of the reasons is that the falling oil prices are expected to stabilize by the end of 2016. It makes the oil shock to be considered a short-term phenomenon. Monetary policy has time lags between application and effect, which may cause an unwanted effect in the long run. The literature review indicates that government policies may intensify the effect of an oil shock. It is an opportunity to implement fiscal policies that cut expenditure on oil subsidies in countries that re lied on them. The contraction of fiscal policy should only be used when it is regarded as a long-term objective. The fall in oil prices may be followed by an increase in unemployment when there are higher real wages relative to productivity (Blinder Rudd, 2008). It may cause a decline in the demand for labor. The government can ease its monetary policy by a small margin to contain rising real wages. It should be done in a timely manner to prevent the lagging effects. References Baffes, J., Kose, A., Ohnsorge, F., Stocker, M., Chen, D., Cosic, D., Gong, X., Huidrom, R., Vashakmadze, E., Zhang, J., Zhao, T. (2015, January). Understanding the plunge in oil prices: Sources and implications. Global Economic Prospects. Retrieved from http://www.worldbank.org/content/dam/Worldbank/GEP/GEP2015a/pdfs/GEP201 5a_chapter4_report_oil.pdf BEA. (2015). National data: gross domestic product. Retrieved from www.bea.gov/national/xls/gdplev.xls Blinder, A., Rudd, J. (2008). The supply shock explan ation of the great stagflation revisited. Retrieved from http://www.princeton.edu/ceps/workingpapers/176blinder.pdf BP. (2015). BP statistical review of world energy June 2013. Retrieved from http://www.bp.com/statisticalreview Cashell, B., Labonte, M. (2008). Understanding stagflation and the risk of its recurrence. Retrieved from http://assets.opencrs.com/rpts/RL34428_20080331.pdf EIA. (2015a). Petroleum and other liquids: U.S. crude oil first purchase price (dollars per barrel). Retrieved from http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PETs=F000000__3f=A EIA. (2015b). Total petroleum consumption. Retrieved from http://www.eia.gov/cfapps/ipdbproject/iedindex3.cfm?tid=5pid=5aid=2cid=r1, syid=1980eyid=2013unit=TBPD EIA. (2015c). Total petroleum consumption. Retrieved from http://www.eia.gov/cfapps/ipdbproject/iedindex3.cfm?tid=5pid=5aid=2cid=r1, syid=1980eyid=2013unit=TBPD McCafferty, I. (2015). Oil price falls – what consequences for monetary policy? Retrieved from http://www.bankofengland.co.uk/publications/Documents/speeches/2015/speech 806.pdf Nelson, E. (2004). The great inflation of the seventies: What really happened? Retrieved from https://research.stlouisfed.org/wp/2004/2004-001.pdf World Bank. (2015). United States: World development indicators. 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