Friction and the Variables of Friction Using a Wooden Block Essay Example for Free

Friction and the Variables of Friction Using a Wooden Block Essay I am going to perform an experiment on friction and the variables of friction using a wooden block, a piece of string and a Newton meter. I will test 3 variables: weight, surface area and surface texture. Each test will be repeated 5 times to get a fair range of results. Friction is the force of two objects rubbing together and slowing and/or stopping each other. The amount of friction produced depends on the appearance of its surface for example: The surface of the sandpaper has deep slopes and the surface of the paper has to move up and down those slopes to proceed, causing friction. My first test will be done to measure the affect of weight on the amount of friction between the block and the table top. The block ill be placed on the table and the Newton meter tied to it. Then the Newton meter will be pulled until the block starts to move and as soon as it does the amount of Newtons required to cause that movement will be recorded. This will be done 5 times then averaged. To make sure it is a fair test I will: use the same Newton meter and the same wooden block to avoid introducing other variables; I will also use the same section of table using the same side of the block every time. I will be vigilant of how I pull the Newton meter, the moving force should be parallel to the supporting surface because pulling it up will lessen friction and pulling it down will increase friction. I predict that as the weight on the block increases so therefore does the down force, increasing the amount of friction because it becomes more difficult for the ridges to pass over each and so a block with less/smoother ridges would find its passage a lot easier. When the experiment was carried out, as I predicted, when the weight on the block increased so therefore did the Newtons required to move it from a fixed position. The test was done with 2 Newton meters over 2 days. Using the same Newton meter was impossible as it broke. My results were as follows: Weight of block = 2.0N Weight T1(N) T2(N) T3(N) T4(N) T5(N) Average(N) Block 1.2 0.8 1 1 1 1 Block + 1N 1.6 1.5 1.5 1.8 2 1.7 Block + 2N 1.8 1.8 2.5 2.4 2.5 2.2 Block + 3N 2.2 2 3 3.2 3.3 2.7 Block + 4N 2.6 2.6 3.8 3.5 3.5 3.2 Block + 5N 2.8 3.5 4 3.5 3.6 3.5 In the first experiment weight was tested and a set of results produced. In this second experiment the surface area in contact with the desk will be tested. To obtain my results I will use the following method, the block will be placed on two sheets of paper a measured distance apart with a Newton meter tied to it. The block will then be pulled and as it begins to move the amount of Newtons required to cause this will be recorded. Each test will be done 5 times then averaged. To make sure it is a fair test I will; as the same Newton meter ensuring non-introduction of new variables, use the same side of the block, use the same two pieces of paper and make sure the blocks movement is parallel to the supporting surface. I predict that as the surface area of the block exposed to the desk increases so will the amount of Newtons required to move it because there will be more sharper ridges to pass over therefore requiring more Newtons. My results were as follows: Exp mm2 T(n) T2(n) T3(n) T4(n) T5(n) Avg(N) 11.3 0.5 0.9 1.1 1.2 0.7 0.88 22.6 0.6 0.6 1.1 0.7 0.6 0.92.72 33.9 1.2 1.1 1.1 1.1 0.9 1.08 45.2 1.1 1.1 1.1 0.9 1.1 1.06 56.5 1.1 1 0.9 0.7 0.6 0.86 68.1 1.1 1.1 0.9 1.1 0.6 0.96 My prediction on 1 or 2 of the results was correct or partially correct but on the whole I fear my prediction was incorrect as it seems the surface area (exposed to the desk) does not greatly affect the amount of Newtons that is required to move it, any affect it does have is not continual and seemingly erratic. The friction experiment has now been done with 2 variables: weight and surface area. I have now come to the third and final, surface texture. To test the affect of surface texture on friction, I will, Place the block on the surface with a Newton meter tied to it, the meter will then be pulled and as soon as the block shows signs of movement I will record the amount of Newtons needed. Each test will be done 5 times then averaged. To make sure it is a fair test I will: unless it breaks use the same Newton meter, I will use the same block and the same side of the block every time, I will use the same substance/type of substance for instance making sure the sandpaper comes from the same sheet. I will also keep the movement of the block parallel to the supporting surface. Although smoothness is hard to measure I predict that the smoother a substance is to the touch, the less friction will be produced, because the smoother a substance is to the touch the less sharp or outstanding the ridges are, therefore the less resistance they cause. Key Substances: Silicon based carbon paper: Si Emery paper: Bs Sand paper: S Table top: TT Plastic Bag: Pb Substance T1(N) T2(N) T3(N) T4(N) T5(N) Average Si 3 2.5 2.5 2.5 2.5 2.6 Bs 2 1.5 1.5 1.6 1.6 1.64 S 2 2 1.75 2 2 1.95 TT 1 1 0.9 0.9 0.9 0.94 Pb 0.4 0.4 0.4 0.4 0.4 0.4 As I predicted the smoother a substance feels to be, the less it causes resistance, as shown in the results. I followed my method very strictly any variation caused by my hand is small to negligible, and would not greatly affect the results. I have come to the conclusion that for a substance to reach minimal resistance it can achieve this being light weight, smoothly textured and have minimal contacting surface area with the opposing surface. If a substance is required to have maximum resistance it would be the opposite. I feel the experiment was performed rather well but there is room for improvement, to have maybe got fairer more accurate results I could have maybe repeated the experiment once or twice on all of them, then I would have more data to analyse giving me a better chance at accuracy. In all the three experiments instead of using the human hand to pull the Newton meter use a machine which would be less prone to inconsistency and use a table top free of blemishes. In the second experiment the block could have been placed on previously constructed platforms each measured to have 4 sides the same and those sides to be the measurements used meaning the non need of paper and a lot more accurate readings.

Copper Recovery Methods From Metallurgical Waste

Copper Recovery Methods From Metallurgical Waste REVIEW OF COPPER RECOVERY METHODS FROM METALLURGICAL WASTE Apurva Patel, Prof. Nimish Shah Abstract: Copper is one of the most used metals in recent developments and demand of this red metal is increasing with passing of each day. Production of copper is 12 million tons per year and copper reserves are expected to run for 25 years with the estimated world copper reserves of 300 million tons. Recovery of copper from metallurgical waste is a trend that is being followed from beginning of industrial age and has many developments over a large time frame. Out of all the copper used in existing process, 2 million tons of copper is utilized with recycling of copper waste. Copper ore reserve contribution of India is limited and extended up to 2 percent of world reserve. We can say that copper has a large amount at our reserves but excavation is not as simple as it seems. Copper content in the raw mines is ranging from 0.5 to 1 percent. Even after recovery of copper there is large waste generated at the end of the process. Copper content in the waste is up to 0.3 percent at the dis charge. Ultimately around hundred times of waste is generated for recovery of one part of copper. That pushes forward the need of recycling copper from metallurgical waste to cater the need of increasing copper demand. Copper recovery from high copper containing metallurgical wastes like brass industries are generally dealt with smelting process. In such case large amount of energy is utilized to just melt down all the material. This process has a limitation of copper content i.e. if copper content is low then all the energy is utilized in melting of undesired material. Demand for electroplating of copper has increased significantly. Low efficiency or improper process handling causes remarkably high copper content in waste discharge, which is over the range of discharge criteria of heavy metals. So to control the increasing price of metals and to limit the use of fresh copper, recycling must be done so the recovery from waste also gives the advantage of being in range of the allowab le government legislations. Though these hazardous heavy metals in electroplating waste having concentration high enough to give harmful impacts to environment but convincingly low concentration that is not enough to recover these metals effectively. In this paper, overview of different methods for copper recovery is illustrated and justified the selection of different methods over different copper content of various sources. Keywords— Copper extraction, Copper recovery, Electroplating, Recycling, I. INTRODUCTION Increasing demand of copper gives elevated chances for generating copper waste from different industries. There are thousands number of industries existing which includes utilization or processing of copper. In this paper, review of several most copper containing waste and most optimum copper recovery methods are described. Waste source is targeted which gives better possibilities of copper recovery and ease of operation. Several metallurgical source like; brass slag, copper converter slag, electroplating waste, bonze scrap and pickling solution is included in the study. II. Copper recovery from Copper slag There are different verities of slag produced from smelters for non-ferrous production. Major emphasis is given to copper slag as it has equal to or higher copper content compared to raw copper ore. Generation and utilization of copper slag has higher environment impacts compared to steel and iron slag as they contain remarkable quantity of heavy metals with higher solubility. Chemical composition of copper slag varies with different origins. Chemical composition is given as per Shen Forssberg, 2003[1] in table 1. TABLE I Chemical composition of copper slag There are specific three methods to recover copper from copper slag; Floatation, Leaching and Roasting Floatation Barnes (1993) [2] has given industrial floatation process at Mount Isa Mines Limited to recover copper from copper slag. Grinding operation is applied until obtain the granular size of 80%- 74  µm before floatation. Floatation is also feasible for magnetite present in the raw copper slag, so hydroxy ethyl cellulose is used in the process as a depressant of magnetite impurities. MIBC is used in the process as froather agent and sodium sec-butyl xanthate is used as a collector of copper from the waste. The result of this process gives concentrate grade copper with high percentage as 42.54%. Overall yield of such process is 82%. This experiment is observed for copper slag containing 3.7% copper. In this experiment most of Co is observed with floatation tail. Mainly, copper slag floatation is somewhat similar with sulfide ore floatation because of the fact that only metallic copper and sulfide minerals from the copper slag can only be effectively floated. In other slag copper is usually observed under oxide state and Co and Ni are also in oxide state because of its homogeneous distribution in the slag. So the stated method will not be utilized effectively with Co, Ni and oxide copper state. Therefore the span for the floatation process is reduced in size as less quantity of Co, Ni must be present in the slag or copper must not be in the form of oxide. Leaching Leaching is used with some leachants mainly hydrochloric acid, ferric chloride, ammonia, sulphuric acid etc. Basire at al anand at all [3]. In the initial era cyanide was also used but it was terminated because of its harmful effects to environment. Leaching is positively influenced by addition of H2O2, or leaching with Cl2/Cl system, or pressure leaching. Figure 1 shows effect of H2O2 on leaching of copper based on the experiments of Base metal recovery [4] Figure 1. Kinetics of copper recovery Graph showing metal recovery with highly oxidising agent like H2SO4 for copper slag. Experiment is carried out with 10% solid in solution and particle size less than 100  µm. Experiment is carried out at 70 oC and pH maintained at 2.5 with applied H2O2 at 35 L/(h.t) Pressure leaching has broadly described by anand et al [4]. Study shows that with pressure leaching and use of dilute H2SO4 recovery of copper about 90% achieved from copper converter slag from the initial concentration of 4.03% Cu. Roasting Roasting is actually one intermediate step which involves the process for converting the copper in desired form that can be easily separated from the raw material. After application of roasting, Leaching or floatation must be used to achieve desired separation. If we narrow down the process criteria then we can say a lot more specific term as sulfate roasting instead of roasting. In this process conversion of cupper cobalt ant nickel is taking place and transformed into more feasible soluble sulfates. Raw material is processed at 200-600 oC by addition of sulfide or sulfate agents. Then these soluble sulfates are dissolved in water and easily separated from slag. Some of the agents used in the process are, (NH3)SO4, H2SO4, H2S, pyrite etc. Sulfurization reactions are summarized as bellow. Cu2O + H2S = Cu2S + H2O †¦(1) 2Cu + H2S +  ½ O2 = Cu2S + H2O †¦(2) Sulfides of copper are then easily converted to soluble copper sulfate with roasting at 600oC. Ziyadanogullari used this method to treat copper slag containing 2.4% copper. By sulfurization in closed system with 140oC for 1 hour and then heating and roasting with 600oC for 360 minutes gives better result for recovery of copper up to 99.2%. SCHEMCON-20141 | Page

Effect of Globalization on Business and Profit Making

Effect of Globalization on Business and Profit Making Chapter 1 Throughout history, profit-making entities (among other) have constructed an ever-more-global economy. In the last 15 years or so, unprecedented changes in communications and computer technologies have given the process new momentum. Multinational corporations manufacture products in many countries and sell to consumers around the world. Money, know-how and raw materials move ever more rapidly across national borders. Along with products and finances, ideas and cultures mingle more unreservedly. As globally mobile capital reorganises business firms, it sweeps away regulation and undermines local and national politics. Globalisation creates new spins of old trading ideas (auctions are becoming increasingly prevalent in buying and selling); it starts new markets and it contributes to wealth, even as it causes extensive distress, chaos, and strife. It is both a source of tyranny and a medium for global movements of social integrity and liberation. Undoubtedly, in the first quarter of the 21st century, the profit-making firm functions in an environment full of global opportunities and threats; and in the wake of recent corporate scandals, the firm, simultaneously, is heavily constrained by ethical self-restraining as well as innovative regulations enforced by domestic and global-governance institutions. 1 Globalisation According to A.T. Kearney/Foreign Policy Globalization Index (2003), which is based on indicators such as economic integration, technological connectivity, personal contact, and political engagement (see Table 1 below), from about 1999 to 2003, global foreign direct investment and portfolio capital flows slowed down significantly thus contributing to the weakening of globalisation. Other global trends, especially international tourism, telephone traffic and worldwide access to the internet stayed strong helping to compensate for the weakening of international economic ties, thus deepening global links overall. What are the lessons that the profit-making firm may derive from the globalisation of economic activity? It appears that global markets, as discussed in the remainder of the section, ‘offer to the firm less legal restrictions, induce reduction in excess capacity, cause higher market concentration and contribute to higher profits. Consider 1, which links together two 2-dimensional diagrams: one has its origin in the southwest with global concentration measured on the vertical axis and profits on the horizontal; the other has its origin in the northeast with excess capacity measured on the vertical axis and legal restrictions on the horizontal. As it is discussed below, globalisation enables firms to move ‘northeast from point A to point B. Table 1 A.T. Kearney/Foreign Policy Globalization Index (2003) The 2003 results do not show causation, but they do point to significant correlations; they demonstrate that the most global countries are those where residents live the longest, healthiest lives; women enjoy the strongest social, educational, and economic progress; global integration leads to secularisation. For the third year in a row, in 2003, Ireland ranks as the most global, due to the countrys deep economic links and high levels of personal contact with the rest of the world. Western Europe claimed six out of the ten most globally integrated countries in this years survey. And the USA broke into the top ten, ranking first in the number of secure servers and internet hosts per capita. Countries from Central and Eastern Europe, Australasia, and Southeast Asia also made it into the upper tier (the five most global countries are reported above followed by the top five global firms in Europe and Asia). Ranking indicators  · Economic integration: trade, foreign direct investment, portfolio capital flows, and investment income.  · Technological connectivity: internet users, internet hosts, and secured servers.  · Personal contact: international travel and tourism, international telephone traffic, and remittances and personal transfers (including worker remittances, compensation to employees, and other person-to-person and non-governmental transfers).  · Political engagement: memberships in international organisations, personnel and financial contributions to UN Security Council missions, international treaties ratified, and governmental transfers. 1.1 Legal restrictions As globalisation expands, many firms find themselves (by choice or coincidence) operating in countries that impose less legal business regulations relative to their home countries. Global firms put pressure on local governments to establish more favourable business regulations or refrain from enforcing their regulatory laws (regardless of how minimal or fair they are) or, if such laws do not exist, to avoid applying them. As a result, less regulated or totally unregulated markets reduce barriers on the flow of goods and money across borders, creating a more integrated and profitable global economy. Over regulation: Business firms in developing nations face much larger regulatory constraints than those in developed nations; as reported in Doing Business in 2005 [World Bank, (2004), p.3], â€Å"(a) they face 3 times the administrative costs, and nearly twice as many bureaucratic procedures and delays associated with them. And they have fewer than half the protections of property rights of rich countries. (b) Heavy regulation and weak property rights exclude the poor from doing business. In poor countiers 40% of the economy is informal. Women, young and low-skilled workers are hurt the most.† The lowering of over regulatory constraints is actively pursued because it brings benefits to firms (they spend less money and time on dealing with regulations) and to governments (they spend fewer resources regulating and more providing social services). Moreover, fewer regulations attract foreign firms with all benefits and, of course, costs associated with them. Hence, globalisation enables firms to benefit from the removal of unnecessary regulations and the establishing of trade-encouraging, incentive-loaded laws. At the same time though due to ‘global complexity, the emergence of new innovative technology-driven markets as well as inability of regulatory authorities to enforce the existing legal enactments (reformed or not), some firms, as described below under illicit trade, may avoid compliance with domestic or international laws. Illicit trade: The fact that, globally, unlawful trade in products and services involving intellectual property, money laundering, third shift production and alien smuggling has been on the rise, implies that authorities in various countries experience hard time in dealing with the problem. As Naim (2003) writes, intellectual property illegalities, a modern kind of piracy, involves business software, shampoos, motorbikes, medical drugs, industrial valves, supply of illegally copied copyrighted music, and among other, theft of brand names. In Naims words: â€Å"Governments have attempted to protect intellectual property rights through various means, most notably the World Trade Organizations Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Several other organizations such as the World Intellectual Property Organization, the World Customs Union, and Interpol are also involved. Yet the large and growing volume of this trade, or a simple stroll in the streets of Manhattan or Madrid, show that governments are far from winning this fight.† Additionally, deregulations of financial markets have given rise to rogue global banking, tax havens, and money laundering. All these factors make possible cross-border money transfers, while simultaneously, improvements in electronic technologies make distance less of a barrier and turn money into e-money defined by Naim as â€Å"cards with microchips that can store large amounts of money and thus can be easily transported outside regular channels or simply exchanged among individuals.† Naim states that â€Å"estimates of the volume of global money laundering range between 2 and 5 percent of the worlds annual gross national product, or between $800 billion and $2 trillion. †¦ The sophistication of technology, the complex web of financial institutions that crisscross the globe, and the ease with which â€Å"dirty† funds can be electronically morphed into legitimate assets make the regulation of international flows of money a daunting task† magnified by the introduction of e-money.† Moreover, according to the United Nations, alien smuggling is the fastest growing business of organised crime. According to Naim, this kind of modern enslavement has become a $7 billion a year enterprise and it involves mostly women and children; and contrary to the efforts made by governments to curtail the problem, especially in the UK, Southern Europe and in the USA, the problem is becoming more difficult and complicated over time. Again, Naim puts it graphically: â€Å"A woman can be â€Å"bought† in Timisoara, Romania, for between $50 and $200 and â€Å"resold† in Western Europe for 10 times that price. The United Nations Childrens Fund estimates that cross-border smugglers in Central and Western Africa enslave 200,000 children a year. Traffickers initially tempt victims with job offers or, in the case of children, with offers of adoption in wealthier countries, and then keep the victims in subservience through physical violence, debt bondage, passport confiscation, and threats of arrest, deportation, or violence against their families back home.† And of course, intellectual property, humans, and financial capital are not the only products and/or services traded illegally for big profits by global networks. There are also markets in human organs, endangered species, stolen fine art, and deadly industrial waste. The unlawful worldwide trades in all these merchandise and services share numerous essential characteristics such as high-tech innovations, societal and political transformations and open fresh markets. Fast spreading globalisation causes the regulatory environment to become more complex which serves as a cover for opportunistic profit through illicit trade, networks and markets. At the same time, governments are becoming increasingly ineffective in dealing with the problem. Although the global community attempts to regulate global business activity through entities such as the World Trade Organization (WTO), the International Monetary Fund (IMF) the World Bank (WB), alliances such as the G-7, or the G-20, and treaties such as the Kyoto Protocol, the global business environment, by and large, is becoming gradually freer. 1.2 Global concentration As legal constraints become wobblier, the power of global firms, in terms of concentration, increases. Widespread merger and acquisition (MA) activities between already big industrial and financial firms started during the 1990s. The new gigantic corporations, by and large, control a large global market share in their respective industries. The build up in global concentration has sweeping implications for the 21st century. As reported by Mohamed (2004) â€Å"total global mergers activity grew from over $150 billion in 1992 to over $2000 billion in 1998, when eight of the worlds ten largest mergers took place. By 1999 it was over $330 billion.† The enhanced mass and influence of these new giants has been central to the intuition that globalisation advances at a blazing speed. In general, most of these global activities, such as MA, foreign direct investment and international trade, are between developed nations. Mohamed reports that â€Å"this concentration of economic power and activity is clearly illustrated by the fact that over 95% of the companies on the Fortune 500 (ranked by value of sales) and FT (Financial Times) 500 (ranked by market capitalization) lists are developed-country companies. In addition, only a handful of developing-country companies feature on the list of the top 300 companies ranked by expenditure on research and development (RD). When one considers that developed countries have less than 20% of the worlds population then the magnitude of the disparities in the global economy cannot be more evident.† Escalated global economic concentration was caused by a number of actions. There was a shift towards focusing on core activities that led to unbundling of formerly diversified conglomerates. There were vast investments in knowledge capital, primarily in hardware, software and information technology (IT) services. Much of the RD outlays of multinational corporations has been on IT, which has helped develop coordination of all aspects of their dealings internationally. There has been globalisation of mass media (e.g., CNN and BBC), which has led to the creation of global franchises (e.g., McDonalds and Wal-Mart), global brands (e.g., Nike) and global marketing infrastructure. The global reach, multiplication and liberalisation of financial markets as well as rapid growth of international capital flows since the 1970s contributed to the growth of multinational corporations. Much of the funds for the new giants came from institutional investors, who prefer big companies that sell popular brands, control large market shares, invest significantly on RD and focus on their nucleus activities. Additionally, as reported by Mohamed, â€Å"the process of global concentration that started in the 1990s happens not only in leading companies but also upstream in their suppliers and downstream in companies distributing their products. The leading companies have pressured their suppliers and distributors to work more closely with them and to become global leaders in their own areas by also growing through MAs. This process has further concentrated the global economy.† 1.3 Excess capacity The massiveness of the global market (the market size effect) along with adaptive, flexible and responsive marketing (the marketing effect) enables global firms to sell more. Additionally, they sell at reduced prices because of lower production costs due to outsourcing and insourcing as well as due to new inexpensive technologies such as the internet and the cell phone (the cost effect). Obviously, market and marketing effects induce firms to reduce their excess capacity but cost effects enable firms to add excess capacity. Whether or not the reduction in excess capacity is in absolute value greater than the increase in excess capacity is an empirical question. Undoubtedly, global manufacturing is on the rise enabling firms to become more adaptable, more flexible in production and distribution as well as more responsive to the needs of customers; and since the global economy is on the rebound after the depths it reached in 2008/2009, see Table 2, it is perhaps reasonable to believe that rising global demand will contribute to a reduction in excess capacity which, in absolute value, would exceed the increase in excess capacity leading to more profit and, hopefully, to improved global economic well-being. Finally, as stated by Helpman (2006), in this global economy we have experienced rapid expansion of trade in services and trade in intermediate inputs. With respect to exports [Helpman, (2006), p.590], â€Å"only a small fraction of firms export, they are larger and more productive than firms that serve only the domestic market, and more firms export to larger markets. A small fraction of firms engage in FDI, and these firms are larger and more productive than exporting firms.† And although according to Helpman (2006, p.591), the theory of comparative advantage, as an explanation of intersectoral international trade, and the theory of imperfect competition, as an explanation of intra-industry trade, are still valid, globalisation brings â€Å"to trade theory a new focus: the organizational choices of individual firms. By focusing on the characteristics of individual firms, the theory can address new questions: Which firms serve foreign markets? And how do they serve them, i.e., which choose to export and which choose to serve foreign markets via FDI? Under what circumstances do they outsource in a foreign country rather than at home? And if they choose integration, under what circumstances do they choose to integrate in a foreign country, via FDI, rather than to integrate at home?† Table 2 Real projected gross domestic product (GDP) and growth rates of GDP for regions (in billions of 2005 dollars) 2000-2015 GDP Year 2000 2005 2006 2007 2008 2009 2010 2015 W 39190.56 44828.46 46641.28 48405.39 49297.02 47992.14 49005.27 58114.16 D 29313.46 32197.09 33091.60 33890.60 34017.97 32749.26 33146.61 37232.39 D less US 18220.25 19763.70 20300.67 20825.75 20895.84 19955.19 20032.69 22162.27 DE 8416.01 10729.04 11507.29 12319.63 12977.47 13056.42 13653.30 18126.72 FCP 1461.09 1902.34 2042.39 2195.16 2301.59 2186.46 2205.35 2755.04 EM 5890.55 7647.06 8198.94 8812.17 9278.61 9278.48 9704.73 12953.24 Annual growth rates Year 2001 2005 2006 2007 2008 2009 2010 2015 W 1.71 3.38 4.04 3.78 1.84 -2.65 2.11 3.45 D 1.27 2.31 2.78 2.41 0.38 -3.73 1.21 2.32 D less US 1.59 1.84 2.72 2.59 0.34 -4.50 0.39 2.07 DE 2.78 6.30 7.25 7.06 5.34 0.61 4.57 5.68 FCP 4.50 5.72 7.36 7.48 4.85 -5.00 0.86 4.57 EM 3.55 6.09 7.22 7.48 5.29 0.00 4.59 5.78 Notes: W = World; D = Developed nations; D less US = Developed nations less US; DE = Developing nations; FCP = Former centrally planned nations EM = Emerging market nations. Source: Data found in World Bank World Development Indicators, International Financial Statistics of the IMF, Global Insight, and Oxford Economic Forecasting, as well as estimated and projected values developed by the Economic Research Service all converted to a 2005 base year. Available at http://www.ers.usda.gov/Data/Macroeconomics/Data/ProjectedRealGDPValues.xls. 1.4 Insourcing and urbanisation in developing economies Insourcing (incoming foreign direct investment) and outsourcing (outgoing foreign direct investment) have been contributing to net benefits of formal firms in both developed and developing nations and in turn to the well being of all. Drezner (2004, p.22), in response to rhetoric against outsourcing in the USA, states that â€Å"outsourcing of American jobs to other countries has become a problem of epic proportion. Fortunately, this alarmism is misguided. Outsourcing actually brings far more benefits than costs, both now and in the long run. If its critics succeed in provoking a new wave of American protectionism, the consequences will be disastrous for the U.S. economy and for the American workers they claim to defend.† In developing nations though, insourcing has been transforming local economies in new directions that cause global anxiety. Demographics in China, India and many more economies indicate that populations, in search of jobs and a better life, have been migrating towards urban, industrialised, centres, abandoning their agrarian lands, creating megacities and giving rise to urbanisation-type problems. (See self-explanatory projected population data for China and India in Tables 3 and 4). Table 3 Urban, rural population trends in China Population (000s) 1985 2005 2025 Total 1,070,175 1,321,569 1,480,430 Urban [Proportion (%)] 241,766 [22.6] 507,725 [38.4] 773,155 [52.2] Rural [Proportion (%)] 828,409 [77.4] 813,845 [61.6] 707,275 [47.5] Source: Available at http://ww2.unhabitat.org/habrdd/conditions/eastasia/china.htm. Table 4 Megacity population trends in India Population (000s) 1991 2011 Total 844,272 1,292,506 Delhi 8,723 24,867 Mumbai 12,572 21,780 Calcutta 10,916 16,509 Source: Available at http://www.ifpindia.org/ecrire/upload/press_ifp_website/ indiapolis_articlerelu.pdf. Megacity build-up and abandonment of agrarian lands have been occurring throughout the developing world1. In all these countries, historical data seems to support two stages of development: In Stage I, prior to insourcing, most of the population lives in the agrarian sector on subsistence agriculture and/or on meagre wages from selling their labour. Overpopulation forces people to exist under perpetually poor conditions causing the supply of labour to be perfectly elastic since there is around abundant low-skilled perfectly substitutable agrarian labour. In general, in this stage of development, the agrarian sector may be described by 2, where A = agrarian, e = equilibrium, WA = wage rate, LA = labour, DA = demand of labour, and LA = supply of labour2. Point V corresponds to the amount of available labour in the sector, point T to the amount of labour employed by the informal economy at equilibrium (point e) and (V-T) to the surplus of labour in the agrarian sector. Insourcing gives rise to Stage II. Incoming foreign direct investment takes root in urban centres (in most cases near the coast, e.g., China) and offers higher wages to attract labour from agrarian regions. In this stage, the industrial sector may be described by 3, where I = industrial. It is assumed that at We supply of labour in the industrial sector is equal to zero (workers would have no incentive to migrate if they cannot receive higher wages). Equilibrium initially occurs at eI, where DI is equal to SI, and labourers get paid WeI > We. At this market wage rate, the industrial sector absorbs portion TU of the total surplus labour available in the countryside. In turn, because there is still unused surplus labour in the agrarian sector (portion UV), more insourcing triggers higher demand for labour in the industrial sector (DI ¢) and migration of the remaining surplus labour; additional migration to urban areas causes the labour supply to become more elastic (the supply functi on flattens and rotates out to SI ¢). At the new and final equilibrium of eI ¢, WeI ¢ The above analysis implies many benefits: employment and income improve; know-how spreads through technology transfer; saving, investment, and tax revenue increase greatly contributing to growth; in addition to the above, people may prefer the city because it is more likely to endeavour entrepreneurial opportunities, find formal education for their children, have access to healthcare, enjoy entertainment, live cosmopolitan lives, and take advantage of proximity to major transposition hubs (for travelling to other countries and inside their own). However, the analysis implies costs as well, especially as they relate to urbanisation, such as: pollution (air, water and land); crime (especially in inner city areas); traffic jams; crowded housing; loss of arable land; food shortages (since people abandon their agrarian fields in the country and/or because they turn agrarian fields near the city into suburbs); creation and stagnation of an informal economy; lack of socialising due to isolation from, and alienation of, neighbours; deterioration in education (due to capacity limitations) as well as healthcare, transportation and governmental services (especially in utilities, fire and police protection); and finally, dependency on food importation, foreign direct investment and foreign capital markets. 1.4.1 Development views: ‘romantic, ‘parasite and ‘dual economy In addition to the above, urbanisation in developing nations spawns informal business firms, which, in general, do not pay taxes or abide by laws and regulations. According to some economists, such firms do not contribute to the overall growth of the economy. Development economists agree though that registered, law abiding, efficiently run entities known as formal business firms have to be encouraged to exist through incentives and governmental policy for they are the only capable of boosting economic growth and development. According to the United Nations (2008, p.1), â€Å"four billion people around the world are robbed of the chance to better their lives and climb out of poverty, because they are excluded from the rule of law.† Informal business firms account for up to about half of economic activity in developing nations but researchers disagree about their role. As explained by La Porta and Shleifer (2008, pp.275-276), â€Å"there are three broad views of this role, (referred) to as the romantic view, the parasite view, and the dual economy ‘dual for short view (otherwise known as the) ‘Wal-Mart theory of development.† In the ‘romantic view, associated with de Soto (2000), informal firms, which are similar to formal (for example, they attract equally talented employees), are held back by barriers to official recognition: lack of secure property titles, deeds, securities and contracts that describe the economically significant aspects of assets. The lowering of such barriers would improve the ability of firms to borrow against registered and secured property-based collateral; additionally, it would enable them to more easily acquire, and/or merge with, other firms. In contrast, the ‘parasite view holds that informal firms, led by less-able, mostly uneducated, entrepreneurs, choose to stay small; as such, they lack the needed scale to operate efficiently and, conveniently, they enjoy cost advantages since they do not pay taxes, offer fringe benefits to employees, follow safety requirements in the workplace or abide by other regulations and the rule of law. These firms impair the economys growth: they reduce overall productivity and they take away market share from more productive formal firms because of their cost advantage over them. Hence, governmental initiatives to uproot these ‘parasites (such as enhancing audit capabilities to reduce tax evasion and enforce regulations) would contribute to efficiency, employment, growth and development. Finally, according to the ‘dual view, informal and formal firms may coexist as long as government tax and regulatory policies support the development of formal firms without encouraging or discouraging informal firms. Unlike the romantic view, this view holds that formal firms are different than informal: formal firms attract more skilful employees, their owners are better entrepreneurs, they are officially recognised, they can raise capital and they abide by regulations. Unlike the parasite view, the dual view maintains that informal firms are not a threat to formal firms because, for the same products, they charge higher prices (due to inefficient production and thus high costs) and because they mostly operate in different markets selling to different clients. La Porta and Shleifer (2008, p.278) report that empirical evidence supports the ‘Wal-Mart theory of economic development and they stress that â€Å"the dual view sees the (informal) firms as providers of a livelihood to millions, perhaps billions, of extremely poor people, and it cautions against any policies that would raise the costs of these firms. This view sees the hope of economic development in policies, such as human capital, tax, and regulatory policies, that promote the creation of (formal) firms, letting the (informal) ones die as the economy develops.† 2 The increasing relevance of auctions Firms may participate in auctions as buyers (bidders) or sellers (auctioneers). As buyers, they want to maximise buyer surplus (the difference between what they would be willing to bid at and the bid they actually pay). As sellers, they want to maximise profit (the difference between the bid they would be willing to sell at and the cost of the auctions object). Although any entity may rely on auctions for selling and buying, a few ‘liaison firms have become very famous over their valuable and pioneering business concepts. Such firms are Christies, Sothebys, and eBay.com. Retail, franchise or land acquisition, government procurement, and various services, among many more, rely on auction-type selling and buying. For example, retail stores (such as Filenes Basement in Boston) report a price on an items tag but the actual price paid by the client is lower the more time the item is up for sale on the floor; in turn, unsold items are donated to charitable organisations. Similarly, sellers in fresh produce markets lower prices towards the end of the day prior to disposing off the items. Governments purchase military assets and/or services of engineers for public infrastructure by relying on bids submitted by the sellers of those services and franchise owners bid for the privilege to own a franchise licence. Home developers, often, buy land in multiple lots through auctions and, of course, eBay has turned every single person on the planet into a potential auctioneer and/or a bidder. Auction results depend on many factors such as type of auctions or design, information of bidders valuations (which may be identical or different) and their attitudes towards risk, whether or not bidders bid on many or on a bundle of units and, of course, on whether or not bidders and auctioneers act ethically. For more details and a guide to literature see Klemperer (1999). 2.1 Bidders (or buyers) Table 5 describes five well-known auction types. Bidders in an English auction would have the incentive to bid higher than other bidders but lower than their true valuation. An advantage to English auctions is that, during the auction, bidders may swiftly revise bids upwards (up to but not higher than whatever they are willing to pay) based on information about the valuations of other bidders in the auction. Bidders in Dutch and First-Price Sealed-Bid auctions would have the incentive to bid strategically so that they never lose to someone with a lower valuation of the item under auction. A strategy for the bidder in these auctions would be to shade down the bid to the unknown second highest bid. As explained by Pepall et al. (2005, pp.640-641), each bidder may estimate the second highest bid as follows: assuming that each bidder in the auction believes that her valuation is the highest, if bidders draw from a uniform distribution [0, Ï…] with all N bidders equally spaced on this interval (where Ï… = highest bid), then the average of the highest value in samples of size N drawn from [0, Ï…], or the second highest bid, would be [(N 1) / N]Ï…. (For example, if there are N = 5 bidders and a bidders highest valuation is $100, then the second highest valuation is [(5 1) / 5] $100 = $80; hence, the optimal bid for this bidder would be $80). But, if the bidder is wrong on her beli ef that she is the highest bidder she may lose the auction. Thus, bid shading implies a possible benefit an Effect of Globalization on Business and Profit Making Effect of Globalization on Business and Profit Making Chapter 1 Throughout history, profit-making entities (among other) have constructed an ever-more-global economy. In the last 15 years or so, unprecedented changes in communications and computer technologies have given the process new momentum. Multinational corporations manufacture products in many countries and sell to consumers around the world. Money, know-how and raw materials move ever more rapidly across national borders. Along with products and finances, ideas and cultures mingle more unreservedly. As globally mobile capital reorganises business firms, it sweeps away regulation and undermines local and national politics. Globalisation creates new spins of old trading ideas (auctions are becoming increasingly prevalent in buying and selling); it starts new markets and it contributes to wealth, even as it causes extensive distress, chaos, and strife. It is both a source of tyranny and a medium for global movements of social integrity and liberation. Undoubtedly, in the first quarter of the 21st century, the profit-making firm functions in an environment full of global opportunities and threats; and in the wake of recent corporate scandals, the firm, simultaneously, is heavily constrained by ethical self-restraining as well as innovative regulations enforced by domestic and global-governance institutions. 1 Globalisation According to A.T. Kearney/Foreign Policy Globalization Index (2003), which is based on indicators such as economic integration, technological connectivity, personal contact, and political engagement (see Table 1 below), from about 1999 to 2003, global foreign direct investment and portfolio capital flows slowed down significantly thus contributing to the weakening of globalisation. Other global trends, especially international tourism, telephone traffic and worldwide access to the internet stayed strong helping to compensate for the weakening of international economic ties, thus deepening global links overall. What are the lessons that the profit-making firm may derive from the globalisation of economic activity? It appears that global markets, as discussed in the remainder of the section, ‘offer to the firm less legal restrictions, induce reduction in excess capacity, cause higher market concentration and contribute to higher profits. Consider 1, which links together two 2-dimensional diagrams: one has its origin in the southwest with global concentration measured on the vertical axis and profits on the horizontal; the other has its origin in the northeast with excess capacity measured on the vertical axis and legal restrictions on the horizontal. As it is discussed below, globalisation enables firms to move ‘northeast from point A to point B. Table 1 A.T. Kearney/Foreign Policy Globalization Index (2003) The 2003 results do not show causation, but they do point to significant correlations; they demonstrate that the most global countries are those where residents live the longest, healthiest lives; women enjoy the strongest social, educational, and economic progress; global integration leads to secularisation. For the third year in a row, in 2003, Ireland ranks as the most global, due to the countrys deep economic links and high levels of personal contact with the rest of the world. Western Europe claimed six out of the ten most globally integrated countries in this years survey. And the USA broke into the top ten, ranking first in the number of secure servers and internet hosts per capita. Countries from Central and Eastern Europe, Australasia, and Southeast Asia also made it into the upper tier (the five most global countries are reported above followed by the top five global firms in Europe and Asia). Ranking indicators  · Economic integration: trade, foreign direct investment, portfolio capital flows, and investment income.  · Technological connectivity: internet users, internet hosts, and secured servers.  · Personal contact: international travel and tourism, international telephone traffic, and remittances and personal transfers (including worker remittances, compensation to employees, and other person-to-person and non-governmental transfers).  · Political engagement: memberships in international organisations, personnel and financial contributions to UN Security Council missions, international treaties ratified, and governmental transfers. 1.1 Legal restrictions As globalisation expands, many firms find themselves (by choice or coincidence) operating in countries that impose less legal business regulations relative to their home countries. Global firms put pressure on local governments to establish more favourable business regulations or refrain from enforcing their regulatory laws (regardless of how minimal or fair they are) or, if such laws do not exist, to avoid applying them. As a result, less regulated or totally unregulated markets reduce barriers on the flow of goods and money across borders, creating a more integrated and profitable global economy. Over regulation: Business firms in developing nations face much larger regulatory constraints than those in developed nations; as reported in Doing Business in 2005 [World Bank, (2004), p.3], â€Å"(a) they face 3 times the administrative costs, and nearly twice as many bureaucratic procedures and delays associated with them. And they have fewer than half the protections of property rights of rich countries. (b) Heavy regulation and weak property rights exclude the poor from doing business. In poor countiers 40% of the economy is informal. Women, young and low-skilled workers are hurt the most.† The lowering of over regulatory constraints is actively pursued because it brings benefits to firms (they spend less money and time on dealing with regulations) and to governments (they spend fewer resources regulating and more providing social services). Moreover, fewer regulations attract foreign firms with all benefits and, of course, costs associated with them. Hence, globalisation enables firms to benefit from the removal of unnecessary regulations and the establishing of trade-encouraging, incentive-loaded laws. At the same time though due to ‘global complexity, the emergence of new innovative technology-driven markets as well as inability of regulatory authorities to enforce the existing legal enactments (reformed or not), some firms, as described below under illicit trade, may avoid compliance with domestic or international laws. Illicit trade: The fact that, globally, unlawful trade in products and services involving intellectual property, money laundering, third shift production and alien smuggling has been on the rise, implies that authorities in various countries experience hard time in dealing with the problem. As Naim (2003) writes, intellectual property illegalities, a modern kind of piracy, involves business software, shampoos, motorbikes, medical drugs, industrial valves, supply of illegally copied copyrighted music, and among other, theft of brand names. In Naims words: â€Å"Governments have attempted to protect intellectual property rights through various means, most notably the World Trade Organizations Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Several other organizations such as the World Intellectual Property Organization, the World Customs Union, and Interpol are also involved. Yet the large and growing volume of this trade, or a simple stroll in the streets of Manhattan or Madrid, show that governments are far from winning this fight.† Additionally, deregulations of financial markets have given rise to rogue global banking, tax havens, and money laundering. All these factors make possible cross-border money transfers, while simultaneously, improvements in electronic technologies make distance less of a barrier and turn money into e-money defined by Naim as â€Å"cards with microchips that can store large amounts of money and thus can be easily transported outside regular channels or simply exchanged among individuals.† Naim states that â€Å"estimates of the volume of global money laundering range between 2 and 5 percent of the worlds annual gross national product, or between $800 billion and $2 trillion. †¦ The sophistication of technology, the complex web of financial institutions that crisscross the globe, and the ease with which â€Å"dirty† funds can be electronically morphed into legitimate assets make the regulation of international flows of money a daunting task† magnified by the introduction of e-money.† Moreover, according to the United Nations, alien smuggling is the fastest growing business of organised crime. According to Naim, this kind of modern enslavement has become a $7 billion a year enterprise and it involves mostly women and children; and contrary to the efforts made by governments to curtail the problem, especially in the UK, Southern Europe and in the USA, the problem is becoming more difficult and complicated over time. Again, Naim puts it graphically: â€Å"A woman can be â€Å"bought† in Timisoara, Romania, for between $50 and $200 and â€Å"resold† in Western Europe for 10 times that price. The United Nations Childrens Fund estimates that cross-border smugglers in Central and Western Africa enslave 200,000 children a year. Traffickers initially tempt victims with job offers or, in the case of children, with offers of adoption in wealthier countries, and then keep the victims in subservience through physical violence, debt bondage, passport confiscation, and threats of arrest, deportation, or violence against their families back home.† And of course, intellectual property, humans, and financial capital are not the only products and/or services traded illegally for big profits by global networks. There are also markets in human organs, endangered species, stolen fine art, and deadly industrial waste. The unlawful worldwide trades in all these merchandise and services share numerous essential characteristics such as high-tech innovations, societal and political transformations and open fresh markets. Fast spreading globalisation causes the regulatory environment to become more complex which serves as a cover for opportunistic profit through illicit trade, networks and markets. At the same time, governments are becoming increasingly ineffective in dealing with the problem. Although the global community attempts to regulate global business activity through entities such as the World Trade Organization (WTO), the International Monetary Fund (IMF) the World Bank (WB), alliances such as the G-7, or the G-20, and treaties such as the Kyoto Protocol, the global business environment, by and large, is becoming gradually freer. 1.2 Global concentration As legal constraints become wobblier, the power of global firms, in terms of concentration, increases. Widespread merger and acquisition (MA) activities between already big industrial and financial firms started during the 1990s. The new gigantic corporations, by and large, control a large global market share in their respective industries. The build up in global concentration has sweeping implications for the 21st century. As reported by Mohamed (2004) â€Å"total global mergers activity grew from over $150 billion in 1992 to over $2000 billion in 1998, when eight of the worlds ten largest mergers took place. By 1999 it was over $330 billion.† The enhanced mass and influence of these new giants has been central to the intuition that globalisation advances at a blazing speed. In general, most of these global activities, such as MA, foreign direct investment and international trade, are between developed nations. Mohamed reports that â€Å"this concentration of economic power and activity is clearly illustrated by the fact that over 95% of the companies on the Fortune 500 (ranked by value of sales) and FT (Financial Times) 500 (ranked by market capitalization) lists are developed-country companies. In addition, only a handful of developing-country companies feature on the list of the top 300 companies ranked by expenditure on research and development (RD). When one considers that developed countries have less than 20% of the worlds population then the magnitude of the disparities in the global economy cannot be more evident.† Escalated global economic concentration was caused by a number of actions. There was a shift towards focusing on core activities that led to unbundling of formerly diversified conglomerates. There were vast investments in knowledge capital, primarily in hardware, software and information technology (IT) services. Much of the RD outlays of multinational corporations has been on IT, which has helped develop coordination of all aspects of their dealings internationally. There has been globalisation of mass media (e.g., CNN and BBC), which has led to the creation of global franchises (e.g., McDonalds and Wal-Mart), global brands (e.g., Nike) and global marketing infrastructure. The global reach, multiplication and liberalisation of financial markets as well as rapid growth of international capital flows since the 1970s contributed to the growth of multinational corporations. Much of the funds for the new giants came from institutional investors, who prefer big companies that sell popular brands, control large market shares, invest significantly on RD and focus on their nucleus activities. Additionally, as reported by Mohamed, â€Å"the process of global concentration that started in the 1990s happens not only in leading companies but also upstream in their suppliers and downstream in companies distributing their products. The leading companies have pressured their suppliers and distributors to work more closely with them and to become global leaders in their own areas by also growing through MAs. This process has further concentrated the global economy.† 1.3 Excess capacity The massiveness of the global market (the market size effect) along with adaptive, flexible and responsive marketing (the marketing effect) enables global firms to sell more. Additionally, they sell at reduced prices because of lower production costs due to outsourcing and insourcing as well as due to new inexpensive technologies such as the internet and the cell phone (the cost effect). Obviously, market and marketing effects induce firms to reduce their excess capacity but cost effects enable firms to add excess capacity. Whether or not the reduction in excess capacity is in absolute value greater than the increase in excess capacity is an empirical question. Undoubtedly, global manufacturing is on the rise enabling firms to become more adaptable, more flexible in production and distribution as well as more responsive to the needs of customers; and since the global economy is on the rebound after the depths it reached in 2008/2009, see Table 2, it is perhaps reasonable to believe that rising global demand will contribute to a reduction in excess capacity which, in absolute value, would exceed the increase in excess capacity leading to more profit and, hopefully, to improved global economic well-being. Finally, as stated by Helpman (2006), in this global economy we have experienced rapid expansion of trade in services and trade in intermediate inputs. With respect to exports [Helpman, (2006), p.590], â€Å"only a small fraction of firms export, they are larger and more productive than firms that serve only the domestic market, and more firms export to larger markets. A small fraction of firms engage in FDI, and these firms are larger and more productive than exporting firms.† And although according to Helpman (2006, p.591), the theory of comparative advantage, as an explanation of intersectoral international trade, and the theory of imperfect competition, as an explanation of intra-industry trade, are still valid, globalisation brings â€Å"to trade theory a new focus: the organizational choices of individual firms. By focusing on the characteristics of individual firms, the theory can address new questions: Which firms serve foreign markets? And how do they serve them, i.e., which choose to export and which choose to serve foreign markets via FDI? Under what circumstances do they outsource in a foreign country rather than at home? And if they choose integration, under what circumstances do they choose to integrate in a foreign country, via FDI, rather than to integrate at home?† Table 2 Real projected gross domestic product (GDP) and growth rates of GDP for regions (in billions of 2005 dollars) 2000-2015 GDP Year 2000 2005 2006 2007 2008 2009 2010 2015 W 39190.56 44828.46 46641.28 48405.39 49297.02 47992.14 49005.27 58114.16 D 29313.46 32197.09 33091.60 33890.60 34017.97 32749.26 33146.61 37232.39 D less US 18220.25 19763.70 20300.67 20825.75 20895.84 19955.19 20032.69 22162.27 DE 8416.01 10729.04 11507.29 12319.63 12977.47 13056.42 13653.30 18126.72 FCP 1461.09 1902.34 2042.39 2195.16 2301.59 2186.46 2205.35 2755.04 EM 5890.55 7647.06 8198.94 8812.17 9278.61 9278.48 9704.73 12953.24 Annual growth rates Year 2001 2005 2006 2007 2008 2009 2010 2015 W 1.71 3.38 4.04 3.78 1.84 -2.65 2.11 3.45 D 1.27 2.31 2.78 2.41 0.38 -3.73 1.21 2.32 D less US 1.59 1.84 2.72 2.59 0.34 -4.50 0.39 2.07 DE 2.78 6.30 7.25 7.06 5.34 0.61 4.57 5.68 FCP 4.50 5.72 7.36 7.48 4.85 -5.00 0.86 4.57 EM 3.55 6.09 7.22 7.48 5.29 0.00 4.59 5.78 Notes: W = World; D = Developed nations; D less US = Developed nations less US; DE = Developing nations; FCP = Former centrally planned nations EM = Emerging market nations. Source: Data found in World Bank World Development Indicators, International Financial Statistics of the IMF, Global Insight, and Oxford Economic Forecasting, as well as estimated and projected values developed by the Economic Research Service all converted to a 2005 base year. Available at http://www.ers.usda.gov/Data/Macroeconomics/Data/ProjectedRealGDPValues.xls. 1.4 Insourcing and urbanisation in developing economies Insourcing (incoming foreign direct investment) and outsourcing (outgoing foreign direct investment) have been contributing to net benefits of formal firms in both developed and developing nations and in turn to the well being of all. Drezner (2004, p.22), in response to rhetoric against outsourcing in the USA, states that â€Å"outsourcing of American jobs to other countries has become a problem of epic proportion. Fortunately, this alarmism is misguided. Outsourcing actually brings far more benefits than costs, both now and in the long run. If its critics succeed in provoking a new wave of American protectionism, the consequences will be disastrous for the U.S. economy and for the American workers they claim to defend.† In developing nations though, insourcing has been transforming local economies in new directions that cause global anxiety. Demographics in China, India and many more economies indicate that populations, in search of jobs and a better life, have been migrating towards urban, industrialised, centres, abandoning their agrarian lands, creating megacities and giving rise to urbanisation-type problems. (See self-explanatory projected population data for China and India in Tables 3 and 4). Table 3 Urban, rural population trends in China Population (000s) 1985 2005 2025 Total 1,070,175 1,321,569 1,480,430 Urban [Proportion (%)] 241,766 [22.6] 507,725 [38.4] 773,155 [52.2] Rural [Proportion (%)] 828,409 [77.4] 813,845 [61.6] 707,275 [47.5] Source: Available at http://ww2.unhabitat.org/habrdd/conditions/eastasia/china.htm. Table 4 Megacity population trends in India Population (000s) 1991 2011 Total 844,272 1,292,506 Delhi 8,723 24,867 Mumbai 12,572 21,780 Calcutta 10,916 16,509 Source: Available at http://www.ifpindia.org/ecrire/upload/press_ifp_website/ indiapolis_articlerelu.pdf. Megacity build-up and abandonment of agrarian lands have been occurring throughout the developing world1. In all these countries, historical data seems to support two stages of development: In Stage I, prior to insourcing, most of the population lives in the agrarian sector on subsistence agriculture and/or on meagre wages from selling their labour. Overpopulation forces people to exist under perpetually poor conditions causing the supply of labour to be perfectly elastic since there is around abundant low-skilled perfectly substitutable agrarian labour. In general, in this stage of development, the agrarian sector may be described by 2, where A = agrarian, e = equilibrium, WA = wage rate, LA = labour, DA = demand of labour, and LA = supply of labour2. Point V corresponds to the amount of available labour in the sector, point T to the amount of labour employed by the informal economy at equilibrium (point e) and (V-T) to the surplus of labour in the agrarian sector. Insourcing gives rise to Stage II. Incoming foreign direct investment takes root in urban centres (in most cases near the coast, e.g., China) and offers higher wages to attract labour from agrarian regions. In this stage, the industrial sector may be described by 3, where I = industrial. It is assumed that at We supply of labour in the industrial sector is equal to zero (workers would have no incentive to migrate if they cannot receive higher wages). Equilibrium initially occurs at eI, where DI is equal to SI, and labourers get paid WeI > We. At this market wage rate, the industrial sector absorbs portion TU of the total surplus labour available in the countryside. In turn, because there is still unused surplus labour in the agrarian sector (portion UV), more insourcing triggers higher demand for labour in the industrial sector (DI ¢) and migration of the remaining surplus labour; additional migration to urban areas causes the labour supply to become more elastic (the supply functi on flattens and rotates out to SI ¢). At the new and final equilibrium of eI ¢, WeI ¢ The above analysis implies many benefits: employment and income improve; know-how spreads through technology transfer; saving, investment, and tax revenue increase greatly contributing to growth; in addition to the above, people may prefer the city because it is more likely to endeavour entrepreneurial opportunities, find formal education for their children, have access to healthcare, enjoy entertainment, live cosmopolitan lives, and take advantage of proximity to major transposition hubs (for travelling to other countries and inside their own). However, the analysis implies costs as well, especially as they relate to urbanisation, such as: pollution (air, water and land); crime (especially in inner city areas); traffic jams; crowded housing; loss of arable land; food shortages (since people abandon their agrarian fields in the country and/or because they turn agrarian fields near the city into suburbs); creation and stagnation of an informal economy; lack of socialising due to isolation from, and alienation of, neighbours; deterioration in education (due to capacity limitations) as well as healthcare, transportation and governmental services (especially in utilities, fire and police protection); and finally, dependency on food importation, foreign direct investment and foreign capital markets. 1.4.1 Development views: ‘romantic, ‘parasite and ‘dual economy In addition to the above, urbanisation in developing nations spawns informal business firms, which, in general, do not pay taxes or abide by laws and regulations. According to some economists, such firms do not contribute to the overall growth of the economy. Development economists agree though that registered, law abiding, efficiently run entities known as formal business firms have to be encouraged to exist through incentives and governmental policy for they are the only capable of boosting economic growth and development. According to the United Nations (2008, p.1), â€Å"four billion people around the world are robbed of the chance to better their lives and climb out of poverty, because they are excluded from the rule of law.† Informal business firms account for up to about half of economic activity in developing nations but researchers disagree about their role. As explained by La Porta and Shleifer (2008, pp.275-276), â€Å"there are three broad views of this role, (referred) to as the romantic view, the parasite view, and the dual economy ‘dual for short view (otherwise known as the) ‘Wal-Mart theory of development.† In the ‘romantic view, associated with de Soto (2000), informal firms, which are similar to formal (for example, they attract equally talented employees), are held back by barriers to official recognition: lack of secure property titles, deeds, securities and contracts that describe the economically significant aspects of assets. The lowering of such barriers would improve the ability of firms to borrow against registered and secured property-based collateral; additionally, it would enable them to more easily acquire, and/or merge with, other firms. In contrast, the ‘parasite view holds that informal firms, led by less-able, mostly uneducated, entrepreneurs, choose to stay small; as such, they lack the needed scale to operate efficiently and, conveniently, they enjoy cost advantages since they do not pay taxes, offer fringe benefits to employees, follow safety requirements in the workplace or abide by other regulations and the rule of law. These firms impair the economys growth: they reduce overall productivity and they take away market share from more productive formal firms because of their cost advantage over them. Hence, governmental initiatives to uproot these ‘parasites (such as enhancing audit capabilities to reduce tax evasion and enforce regulations) would contribute to efficiency, employment, growth and development. Finally, according to the ‘dual view, informal and formal firms may coexist as long as government tax and regulatory policies support the development of formal firms without encouraging or discouraging informal firms. Unlike the romantic view, this view holds that formal firms are different than informal: formal firms attract more skilful employees, their owners are better entrepreneurs, they are officially recognised, they can raise capital and they abide by regulations. Unlike the parasite view, the dual view maintains that informal firms are not a threat to formal firms because, for the same products, they charge higher prices (due to inefficient production and thus high costs) and because they mostly operate in different markets selling to different clients. La Porta and Shleifer (2008, p.278) report that empirical evidence supports the ‘Wal-Mart theory of economic development and they stress that â€Å"the dual view sees the (informal) firms as providers of a livelihood to millions, perhaps billions, of extremely poor people, and it cautions against any policies that would raise the costs of these firms. This view sees the hope of economic development in policies, such as human capital, tax, and regulatory policies, that promote the creation of (formal) firms, letting the (informal) ones die as the economy develops.† 2 The increasing relevance of auctions Firms may participate in auctions as buyers (bidders) or sellers (auctioneers). As buyers, they want to maximise buyer surplus (the difference between what they would be willing to bid at and the bid they actually pay). As sellers, they want to maximise profit (the difference between the bid they would be willing to sell at and the cost of the auctions object). Although any entity may rely on auctions for selling and buying, a few ‘liaison firms have become very famous over their valuable and pioneering business concepts. Such firms are Christies, Sothebys, and eBay.com. Retail, franchise or land acquisition, government procurement, and various services, among many more, rely on auction-type selling and buying. For example, retail stores (such as Filenes Basement in Boston) report a price on an items tag but the actual price paid by the client is lower the more time the item is up for sale on the floor; in turn, unsold items are donated to charitable organisations. Similarly, sellers in fresh produce markets lower prices towards the end of the day prior to disposing off the items. Governments purchase military assets and/or services of engineers for public infrastructure by relying on bids submitted by the sellers of those services and franchise owners bid for the privilege to own a franchise licence. Home developers, often, buy land in multiple lots through auctions and, of course, eBay has turned every single person on the planet into a potential auctioneer and/or a bidder. Auction results depend on many factors such as type of auctions or design, information of bidders valuations (which may be identical or different) and their attitudes towards risk, whether or not bidders bid on many or on a bundle of units and, of course, on whether or not bidders and auctioneers act ethically. For more details and a guide to literature see Klemperer (1999). 2.1 Bidders (or buyers) Table 5 describes five well-known auction types. Bidders in an English auction would have the incentive to bid higher than other bidders but lower than their true valuation. An advantage to English auctions is that, during the auction, bidders may swiftly revise bids upwards (up to but not higher than whatever they are willing to pay) based on information about the valuations of other bidders in the auction. Bidders in Dutch and First-Price Sealed-Bid auctions would have the incentive to bid strategically so that they never lose to someone with a lower valuation of the item under auction. A strategy for the bidder in these auctions would be to shade down the bid to the unknown second highest bid. As explained by Pepall et al. (2005, pp.640-641), each bidder may estimate the second highest bid as follows: assuming that each bidder in the auction believes that her valuation is the highest, if bidders draw from a uniform distribution [0, Ï…] with all N bidders equally spaced on this interval (where Ï… = highest bid), then the average of the highest value in samples of size N drawn from [0, Ï…], or the second highest bid, would be [(N 1) / N]Ï…. (For example, if there are N = 5 bidders and a bidders highest valuation is $100, then the second highest valuation is [(5 1) / 5] $100 = $80; hence, the optimal bid for this bidder would be $80). But, if the bidder is wrong on her beli ef that she is the highest bidder she may lose the auction. Thus, bid shading implies a possible benefit an

The Root Causes of Deforestation :: Environment Evironmental Essays

The Root Causes of Deforestation In the second chapter of his book, Tropical Deforestation: Small Farmers and Land Clearing in the Ecuadorian Amazon, Thomas K. Rudel hypothesizes that the cause of rainforest destruction goes beyond the traditional immiserization model. The immiserization model holds that there are two groups of people separately causing deforestation: powerful businesses such as the plantation owners and extractive enterprises; and landless peasants. Instead, he contends that these groups of people, along with the local and international governments, banks and markets all cause deforestation by their mutual interactions. His idea is supported by the pattern of deforestation. Instead of rising steadily as the population grows, it goes in spurts. Peasants seize the opportunity to develop new land when it is opened up by penetration roads built by the government or large extractive corporations. Owning land along a road is the best way to ensure that they profit from their labor. That way peasants have direct links to transportation for their products and don't have to deal with middlemen who take a large share of the profits. He cites resources indicating that deforestation rates increased when international banks loaned money to countries for frontier development projects. Similar results were achieved by development of extractive industries. Rudel refers to both the government and these industries as lead institutions because of their role in opening transportation routes that are used by peasant farmers who settle along them, clearing the land. Many nations also sponsor colonization programs, wealthy patrons hire peasant laborers, or groups of peasants band together to mutually profit from the land that they help clear together. These examples of growth coalitions are similarly responsible, in conjunction with the agencies that clear the transportation routes, for the destruction of the tropical forests. This leads him to the conclusion that the most important link in thi s system of destroying tropical forests is the creation of new transportation routes penetrating the forested land. At the end of the chapter, Rudel addresses the issue of indigenous communities' involvement in the deforestation. He states that "the argument [for the growth coalition -- lead institution hypothesis] assumes that rural inhabitants have a strong market orientation despite the presence of indigenous peoples throughout the tropics who have only partial commitments to participation in market economies. If the case studies demonstrate a close association between growth coalitions and deforestation among indigenous peoples as well as peasants, the explanatory potential of the argument increases" (Rudel 40).

Juniper Berry :: Botany

Juniper Berry Juniper is a short evergreen shrub whose fruit and oil provides a flavoring agent used extensively in the food, perfume, and soap industries. Juniper berry is probably best known as the unique flavoring agent of gin, an important component of the dry martini, a popular intoxicant and a putative calmative revered by western culture for over 300 years. As a medicinal remedy, juniper has a long history of use employed as a treatment for numerous diseases by ancient Greek and Arab healers, as well as Native American Indians.(2) Juniper berries have been used since the 16th century in herbal medicines. They are rich in vitamin C, volatile oils and other nutrients. (11) The junipers are also used in aromatherapy, which is the use of essential oils through inhalation, massage, bathing, or ingestion to create good health and beauty. The science of aromatherapy can be traced back over 5000 years to the Egyptians. The practice of employing the essences of plants for medicinal and therapeutic beauty treatments is thousands of years old. (10) The scientific name of juniper is Juniperus communis. It belongs to the family Cupressaceae. Common names include juniper berry, genepro, and enebro. (7) The genus has about 60 to 70 species of aromatic evergreen trees or shrubs distributed throughout the Northern Hemisphere. (6) About 15 species occur in North America. (7) Juniper foliage may be scale-like, needle-like, or both, and it often has a distinctive odor that can be detected from quite a distance. (1) The juvenile leaves of a juniper are needle-like and the older leaves are scale-like. Mature leaves are awl-shaped, spreading, and arranged in pairs or in whorls of three. Some species have small, scale-like leaves, often bearing oil glands that are pressed closely to the rounded or four-angled branchlets. Male and female reproductive structures usually are borne on separate plants (6), so only female trees have fruit. (1) The reddish brown or bluish cones are fleshy and berrylike and often have a grayish, waxy covering. (6) Their fruits are soft and look like blue berries, and are round cones, but they are softer than most and they have a blue, red, or copper color. They mature in I to 3 seasons and contain I to 12 seeds, usually 3. (6) There are three junipers native to the Pacific Northwest, but chances are good that western juniper is the only one you will see.

Compare Romeo and Juliet Essay

Romeo and Juliet and Pride and Prejudice are two of the most admirable and exquisite works ever written about the struggling love of two opposing forces. The novels have had a great literary importance and give us a sense of love and marriage on its most bewildered journey during the Elizabethan Era and the Napoleonic wars. Even though these two novels are from two different eras and are quite divergent as a result of it, this essay will argue that both Romeo and Juliet and Pride and Prejudice are indubitable similar in the concern of love and marriage. Firstly, this essay will present a short amount of background regarding love and marriage during the Elizabethan era and in the turn of the nineteenth century. Secondly, the essay will talk about the comparison and distinction in love and marriage present in the novels. Thirdly, this essay will discuss and hopefully conclude with the chosen thesis. During the Elizabethan era women were subservient to men and they were raised not to consider otherwise. They were expected to marry whomever the father would hold appropriate. The Scottish protestant leader John Knox wrote â€Å"†Women in her greatest perfection was made to serve and obey man.†( Alchin, L.K. â€Å"Elizabethan Women.) The marriages were arranged to create alliances with other powerful families which becomes the obvious environment in the play about Romeo and Juliet. Love was not significant between a man and a woman. Instead the importance of financial security and a life in everlastingly safety was prioritized through the marriage of a wealthy suitor. In the play by Shakespeare Romeo and Juliet, Juliet is being arranged to marry Paris, a kinsman of the prince, a well suited husband for her despite of her disapproval. As Paris speaks â€Å"God shield I should disturb devotion!—Juliet, on Thursday early will I rouse ye.(kisses her) Till then, adi eu, and keep this holy kiss.† ( Romeo and Juliet, 4.1 William Shakespeare) This is not a marriage for love and this typical prejudice of marriage is also highly present in Jane Austen’s book Pride and Prejudice. One of the characters Charlotte amongst other, is utterly convinced of a socially ideal marriage which was the most common way to unite in the turn of the nineteenth century. â€Å"I am not romantic, you know; I never was. I ask only a comfortable home; and considering Mr. Collins’s character,  connection, and situation in life, I am convinced that my chance of happiness with him is as fair as most people can boast on entering the marriage state.† (Chapter 22. Page 193.† Pride and Prejudice. N.p.: Planet Pdf). Most women decided to marry rather than depend on other family members for financial support. Due to this choice or lack thereof, love and passion were presumed to be less essential in people’s lives. Charlotte’s quote expresses more or less the plight woman had throughout the turn of the nineteenth century. It’s very likely that the Author of Pride and Prejudice, Jane Austen intentionally tried to reveal woman’s position in love and marriage as they were. Shakespeare on the other hand probably had a slightly different agenda which was mainly to please the audiences. All though it is important to not e that Shakespeare presumably wrote about this social decay because he did not approve of what was going on at the time. We might say that this includes the social condition of women and their meager rights in love and marriage. â€Å"Get thee a good husband, and use him as he uses thee.†(All’s Well That Ends Well 1.1.212-13) In Romeo and Juliet the matter of love dominates the play.† My bounty is as boundless as the sea, My love as deep; the more I give to thee, The more I have, for both are infinite. (Romeo and Juliet 2.2, William Shakespeare). Love in this play is simply not one-sided. There is puppy love or shallow love which is the love Romeo has for Rosalie, merely drawn to her appearances’. This view of love is also present in the novel Pride and Prejudice. One of the main characters Mr. Darcy speaks of the woman who later becomes his wife â€Å"She is tolerable; but not handsome enough to tempt me;† (Jane Austen, Pride and Prejudice,Planet Pdf p.14 Ch. 3) Romeo and Juliet and Pride and Prejudice are both acclaimed love stories which center around a man and a woman and their love for each other. The other characters seem to play their important role converging upon these lovers or lovers to be. In both stories we see a strong opposing love due to a distinctness of social class as occurring in Pride and Prejudice between the middle class, the Bennett’s and the Aristocrats Darcy’s and new money the Bingley’s. In Romeo and Juliet the antagonistic love is more defined as a feud between tw o powerful families who will not by any circumstances find peace with each other. â€Å"Two households, both alike in dignity, In fair Verona, where we lay our scene, From ancient grudge break to new mutiny, Where civil blood makes civil hands unclean.† (Romeo and  Juliet, Prologue p.7 William Shakespeare). The House of Montegue and the House of Capulet are the two families who are sworn enemies, never to reconcile until Romeo and Juliet’s deaths. Nevertheless both the novel and the play have in common the opposing forces set in the story. These two main characters should not be together in love as a result of society’s rules. They both defy society’s instructions and give in to love rather than reason. This way of writing was probably intentional by Shakespeare considering the Renaissance period was also about universal order as in Humanism which was a significant factor in general in Shakespeare’s plays.( â€Å"Renaissance Humanism and Shakespeare†.) Both Romeo and Juliet and Pride and Prejudice paint marriage as one of life’s most important choices. Even though this is the case, it is considerably important to envision that Pride and Prejudice has a slightly closer focus on family over husband whereas Romeo and Juliet leans more toward love for husband over family in my opinion. The reason for this is the personalities of the women in the Novel and the Play. Both Juliet and Elizabeth are strong female characters who are being presented as very respectable human beings despite their flaws. In a way we can say that both authors, Jane Austen and William Shakespeare speak for the women at that time and their difficult situations in love and marriage. Passion, love and hate is also a common denominator in these stories. These three words as a whole provide us with an overall understanding of these books. Passion as source of consistency, love as a diversity present in different elements, and hate as an opposition to love to create balance. All though there are quite a few similarities between the novel and the play, there are also a few contrasts present in the books which are important to consider in an analysis of love and marriage. The play Romeo and Juliet has an overwhelming amount of overpowering force of love in it which supersedes everything. The love Romeo and Juliet has for each other is almost obsessive, and self-destructive as a result of it. (â€Å"Love is a smoke raised with the fume of sighs; Being purged, a fire sparkling in lovers’ eyes; Being vex’d a sea nourish’d with lovers’ tears: What is it else? a madness most discreet, A choking gall and a preserving sweet.† ( Romeo and Juliet, 1.1, William Shakespeare.) Romeo speaks of love as he has read in books, but unlikely experienced. Romeo’s passionate feelings develop into a deadly love at the end of the play when the couple’s  tragic destiny prevails and they both die by their own hands. Pride and Prej udice do not have this uncontrollable intense love. The novel focuses more on the achievement of marriage and stability in life, financial and the image of respectability rather than the passionate lusty love. It is important to remember that love is also one of the themes of Pride and Prejudice and that the love in which the main characters Darcy and Elizabeth have for each other at the end of the novel is some of the reasons why this book is so successful. Even though the excessive love is more present in the play about Romeo and Juliet as a result of their lawless passion as archetypal lovers, it is relatively different than what we see in Pride and Prejudice. Both stories have a background of society’s expectation in love and marriage such as Juliet’s arranged marriage to Paris and Elizabeth’s friend Charlotte’s marriage to Mr. Collins an overbearing, and ridiculous heir to the entailed Bennett’s estate. In the play about Romeo and Juliet they are being referred to as star-crossed lovers â€Å"Where civil blood makes civil hands unclean. From forth the fatal loins of these two foes .A pair of star-cross’d lovers take their life; Whose misadventur’d piteous overthrows. Doth with their death bury their parents’ strife.( Romeo and Juliet, the Prologue. p.7, William Shakespeare,) The stars functions as an opposition to Romeo and Juliet’s destiny and is there-for an indicatio n of a not intended universal love as we can see clearly at the tragic end of the play followed by the death of the two young lovers. Pride and Prejudice have a slightly different ending. It has lot more satisfying completion where the two main characters finally can live a fulfilled life together despite the society’s heavy burden of commandment which the reader of the novel was most likely able to anticipate through-out the novel. We see that Romeo and Juliet and Pride and Prejudice have an evident distinction at the end of the two books towards the consideration of meaning. Clearly Romeo and Juliet is a forced equation whereas Darcy and Elisabeth are more likely to be predestined. By analyzing some of the similarities and contrasts in love and marriage in the two books I find the similarities no more substantial than the contrasts. This might be a result of the underlying elements that keep on grasping the connections as we see it. Some of the leading aspects of this influence are the love against all odds in Romeo and Juliet versus the more  predestined version in Pride and Prejudice. Another important element is shallow love which presents it-self in both books through the ignorance of the characters. We see similarities in the society’s established rules of marriage and the characters capability to oppose to these â€Å"decrees†. Then again there is an over-powering and obsessive force of love in Romeo and Juliet which is not accounted for in Pride and Prejudice. Due to these almost completely balanced analogies and divergences I cannot conclude with the chosen thesis and instead I accept the equity of exceptional authorship. Work cited Alchin, L.K. â€Å"Elizabethan Women.† Elizabethan Women. Www.elizabethan-era.org.uk, 16 May 2012. Web. 13 Feb. 2014. Shakespeare, William, Barbara A. Mowat, and Paul Werstine. The Tragedy of Romeo and Juliet. New York: Simon & Schuster Paperbacks, 2011. Print. Austen, Jane. Pride and Prejudice. N.p.: Planet Pdf, n.d. Http://www.planetpdf.com/. Planet Pdf. Web. 13 Feb. 2014. â€Å"All’s Well That Ends Well: Entire Play.† All’s Well That Ends Well: Entire Play. Http://shakespeare.mit.edu/allswell/full.html, n.d. Web. 14 Feb. 2014. â€Å"Renaissance Humanism and Shakespeare.† Http://www.saylor.org/site/wp-content/uploads/2011/11/SAYLOR.ORG-ENGL401-RENAISSANCE-HUMANISM-SHAKESPEARE.pdf. The Sailor Foundation, n.d. Web.

Consider the View That Only Form Matters When Properly Appreciating Art Essay

Art appreciation is the understanding of the timeless qualities that characterise all great art, and personally i feel is a subjective matter; what I find aesthetically pleasing may not apply to everyone else. There are many reasons why we value art; because it informs us, because of its expressive quality, and because of its artistic quality. In this case, the latter is being discussed, that good art is good because of aesthetic enjoyment of form, the balance and structure and proportion. Its argued that content is not important, just the formal qualities make it good art, for example Jackson Pollock, his work is based on lines and colours and is valued very highly, therefore content is irellevant. However the view that art should be valued for its expressive qualities or catharsis as Aristotle called it; the emotional purging and cleansing. He believed people watched tragedies to make themselves emotional and upset but in a way happy, as they then have purged any negative emotion they had. If art was merely something that caused emotion it would be trivial, but the fact that art can convey something that is transcendent lies its value. However the argument that forms matters shows us that anything can trigger emotions such as pity or fear, without having to be art, but formal qualities are unique. Many people value art becuase it can inform us, we value it if it is true to nature or to life. Platos imitation theory applies here, that all artists are merely copying the form so it can not be good art, but all perceptual experience involves interpretation, so there is nothing to copy. Great historical paintings can give us visual knowledge of certain points in time, but limitations with this is that anything can inform us without being art, a book can inform us but isn’t art. This ability to inform us is not what make sus appreciate it but the artistic qualities it holds; the forms, is what makes us appreciate it. But then there is the argument that form is not enough, by itself, to keep the auidence captured as beauty alone is not enough. That there has to be content to appreciate it such as a meaning, a story behind it, form lacks this ability. I personally believe that when appreciating art, form does matter. It makes a piece of art unique but i also belive that it solely matters, i appreciate its informative qualities and its expressive ones, so a good piece of artwork for me, should contain all three qualities.