Accounting Basics for Managers Essay Example | Topics and Well Written Essays - 1250 words

Bookkeeping Basics for Managers - Essay Example In the money related year 2012, Home Depot shows great development both monetarily and operationally. In the money related year 2011, Home Depot income expanded by 3.53% to a striking $ 70,395 million which has brought about the working benefit expanded by 14.08%. Following its operational development system, Home Depot has presented decent variety in its business. The organization is demonstrating enthusiasm for covering all the skylines of the globe by opening an ever increasing number of stores in different territories of the globe as it intending to serve an assorted scope of clients. Net revenue is one of the key benefit proportion pointers which show how well an organization is using its working capital in winning the ideal degree of benefit. So as to ascertain the gross net revenue proportion, the gross benefit (i.e., deals less the expense of deals) is separated by the income of the organization. As evident, the gross benefit of the organization has expanded somewhat from the past money related year which could be because of the way that the expense of deals of the organization expanded with a greater rate when contrasted with the level of the income of the organization. This could be because of expanded crude materials costs from the provider which the organization couldn't recuperate from the clients through expanded selling cost. The following gainfulness pointer is the net revenue. The net overall revenue is determined by isolating the net benefit (i.e., net benefit less regulatory and selling use) with the all out income.

THE GENERAL ELECTRIC AND THE HEWLETT PACKARD (HP) Essay

THE GENERAL ELECTRIC AND THE HEWLETT PACKARD (HP) - Essay Example The upper hand alludes to a bit of leeway increased over contenders either by giving more prominent incentive to buyers, by bringing down the costs, or by offering more advantages and administration which legitimizes the more significant expense. Corporate techniques are the main issue of accomplishing the upper hand by making suppositions on an organization’s outside condition and its assets, and by making strategies on how the association ought to work. General Electric and Hewlett Packard are the two most powerful organizations in the innovation showcase. A relative investigation of the systems utilized by GE and HP uncovers that both have detailed comparable to techniques in the different parts of their business activity. - - Introduction The Hewlett-Packard Company, generally known as the HP, is a settled and enormous worldwide firm established in 1939 by Bill Hewlett and Dave Packard and headquartered in California, United States. Their items center essentially around in novation like PC, printing, advanced imaging, and furthermore programming administrations. General Electric (GE) is the maker of enhanced innovation, media, and benefits, and was consolidated in 1892. It offers items and administrations going from airplanes motors, power age, innovation in clinical imaging, business and buyer financing, and a lot progressively more than 100 nations. The GE has a long history of accomplishment in their mechanical exchange and their accomplishments demonstrate the estimation of their view, â€Å"why foresee the future when you can make it?† (Our history). The Economical Environment The prudent condition of the business comprises of four components, they are Political, Economic, Social, and innovative. The monetary condition today is traveling through lively and temperamental stages because of globalization and progressively serious markets. In any case, the Hewlett Packard Company exploits abusing new markets all around the globe, drawing in wi th other worldwide organizations. A major favorable position to the organization is their item assorted variety which causes them to endure the downturn. Simultaneously, the GE is confronted with numerous social issues in regards to natural contaminations. It has become a subject for contentions with respect to the enormous possession and authority over the media sources. The organization has been asserted for burning through a huge number of dollars on business promotions and TV program sponsorships to guarantee its ecological cordial picture. The General Electric Company plays out its capacities in miniaturized scale and large scale condition. The smaller scale condition comprises with clients, providers, and different partners of the business. The GE regards its clients as an indispensable piece of the organization in the effective running of the business. The GE has taken higher endeavors to incorporate the company’s see with the customers’ see instead of thinking about them as insignificant speculators. As client support has been considered as the essential piece of the presentation, it keeps up three pivotal parts with respect to the quality offered to clients; the representatives, the procedure, and the clients themselves. Then again, the authoritative culture of HP is developed continuously over a period, which encourages the representatives to characterize how they feel about their activity. The HP has prevailing with regards to making a positive impact of the way of life on their representatives. A positive culture assists with animating duty towards the activity and to accomplish the proposed objectives. Dynamic The General Electric Company utilizes some essential systems in their dynamic. One among them is to contribute and tap the inner market inside the span of the organization. This methodology appears to have used the rule that ‘a business must be worker arranged on the off chance that it wishes to be client oriented’

Facilitate Coaching And Mentoring Essay

1 Understand the advantages of training and tutoring specialists in wellbeing and social consideration or kids and youthful people’s settings 1.1 Analyze the contrasts among instructing and tutoring 1.2 Explain conditions when instructing would be a fitting strategy for supporting learning at work 1.3 Explain conditions when coaching would be a proper technique for supporting learning at work 1.4 Explain how training and tutoring supplement different strategies for supporting learning 1.5 Analyze how instructing and coaching at work can advance the business targets of the work setting 1.6 Evaluate the administration ramifications of supporting instructing and coaching in the work setting 1.7 Explain how training and tutoring in the work setting can add to a learning society 1.8 Explain the significance of meeting the adapting needs of mentors and guides 2 Be ready to advance training and tutoring of experts in wellbeing and social consideration or youngsters and youthful peopl e’s settings 2.1 Promote the advantages of instructing and tutoring in the work setting 2.2 Support experts to recognize adapting needs where it is fitting to utilize training 2.3 Support specialists to distinguish adapting needs where it is suitable to utilize tutoring 2.4 Explain the various kinds of data, counsel and direction that can bolster learning in the work setting 2.5 Demonstrate a solutionâ ­focused way to deal with advancing instructing and tutoring in the work setting 3 Be ready to recognize the instructing and coaching needs of professionals in wellbeing and social consideration or kids and youthful people’s settings 3.1 Use distinctive data sources to decide the training and coaching needs of professionals in the work setting 3.2 Plan training and coaching exercises 4 Be ready to execute instructing and tutoring exercises in wellbeing and social consideration or kids and youthful people’s settings 4.1 Support the usage of training and coaching exercises 4.2 Select the most suitable individual to go about as mentor or guide 4.3 Explain the help needs of the individuals who are working with peers as mentors or coaches 4.4 Provide instructing in a work setting as per the concurred arrangement 4.5 Provide coaching in a work setting as per the concurred arrangement 5 Be ready to audit the results of instructing and tutoring in wellbeing and social consideration or kids and youthful people’s settings 5.1 Review how the utilization of training and tutoring in the work setting has bolstered business targets 5.2 Evaluate the effect of training and coaching on training 5.3 Develop plans to help the future improvement of training and coaching in the work setting

Writing an Argumentative Essay Topic on the Odyssey

Writing an Argumentative Essay Topic on the OdysseyWriting a good argumentative essay is not that easy. While some students are really good at it, some others do not have enough time to just sit down and write a good argumentative essay topic on the Odyssey.Instead of just writing an argumentative essay topic on the Odyssey, you need to know the best sources of information on the subject matter that you would like to discuss. In other words, if you are going to talk about Homer's Odyssey, where would you get the most reliable and up-to-date information on this topic? Since there are many things to cover in an essay, you have to decide which information is the most important for your students. If you know the source of information, you can go and find the right sources for them and they can also get the information they need.You can learn all about the sources for these primary sources by getting some information from students. Ask them what they know about the topic, what is their pr eferred sources, what else is there, and how are they going to learn more. This will help you get your essay topic on the Odyssey started.When it comes to counter argumentative essay topics on the Odyssey, you have to keep in mind that there are so many different ways you can handle each essay topic. In the same way, you have to be able to make each essay topic effective one. What is the best way for you to approach your students? By learning from them?You also have to consider who your audience is. If your audience is an adult and you are discussing books that are full of words, you might want to use quotes from books that are more fun to read or from fiction stories.However, if your audience is a child, they might enjoy learning from books that are filled with pictures and sounds. Therefore, you can get more interesting essay topics on the Odyssey by having them learn by reading the books. This way, they will enjoy reading the books and you will get the most out of your students.T herefore, you can make each essay topic of the Odyssey more appealing to your audience. Just keep in mind that while these types of essays can be very entertaining and interesting, they do require much research and preparation.

The Epic Of Gilgamesh, By Walter Burkert - 970 Words

Walter Burkert states that all heroic quests are about getting something out of the adventure. â€Å"To get something†¦Ã¢â‚¬  he writes, â€Å"is to realize some deficiency, or receive some order to start; to have, or to attain, some knowledge about the thing wanted; to decide to begin a search;†¦then to bring back the object†¦Only after all that, with success established, has the action of ‘getting’ come to its end.† I personally agree with Burkert’s claim and I believe that it fits perfectly with â€Å"The Epic of Gilgamesh†, as the hero of the story is always in search for something. Towards the end, we realize that the main theme of the story is accepting mortality. This is what Gilgamesh was looking for all along and this is what he â€Å"gets† from his whole adventure. Gilgamesh is the king of Uruk. He is a demigod, the son of Lugalbanda and the goddess Ninsun. At the beginning of the epic, Gilgamesh is introduced as an extraordinary person. He is supposed to have achieved complete knowledge. â€Å"He who saw the Deep, the country’s foundation, [who] knew†¦, was wise in all matters!† (pp. 1) Gilgamesh is described as a true hero: â€Å"Surpassing all other kings, heroic in stature, brave scion of Uruk, wild bull on the rampage!†(pp. 2) Besides possessing virtues like knowledge and courage, Gilgamesh was â€Å"tall, magnificent and terrible.† (pp. 2) All of these qualities represent the peak of our hero’s life, the period after his search had come to an end. As we keep on reading, we learn

Outline And References Of Disease Surveillance Essay

9th August 2015 Leia Manewell 3/108 Clarence Street Riccarton Christchurch New Zealand 8011 Student Number: 15242876 Paper Coordinator: Barry Palmer Paper: 214.311 Epidemiology Communicable Diseases Assignment: 1 Word Count: 3,484 (Including questions and references) Questions: 1. Explain what is meant by disease surveillance and briefly explain, with suitable examples, the role of some important agencies and organizations (national and international) involved with disease surveillance. (15 mark) Disease surveillance is the ongoing systematic collection and analysis of data about an infectious disease that can lead to action being taken to control or prevent the disease usually one of an infectious nature. (MedicineNet, 2015) Disease Surveillance can range from common Food Bourne illnesses to extensive long-term surveillance on diseases such as Diabetes and Cardiovascular disease. In New Zealand, The Institute of Environmental Science and Research (ESR), plays a vital role in Notifiable Disease Surveillance. The Health Intelligence Team at ESR prepare annual and monthly reports of the statistics for notifiable and other infectious diseases as part of a Ministry of Health contract for scientific services. (ESR, 2015). This Service gives national access to increasing or decreasing trends among the geographical areas and allows for a National database notified by the supporting District Health Boards. 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Contact with infected respiratory secretions or even saliva can cause poliovirusRead MorePublic Health Information Systems5165 Words   |  21 PagesMapping †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..23 12. Aggregation/Reporting†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦24 13. Communication†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..24 Cancer Surveillance Domain 1. What is Cancer Surveillance Domain?...........................................................................26 2. 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Johannes Kepler Essay Example For Students

Johannes Kepler Essay Johannes Kepler was born on December 27, 1571 in Weil der Stadt, Germany. Keplers grandfather was supposedly from a noble background, and once Mayor of Weil. However, Keplers father became a mercenary who narrowly avoided the gallows. Keplers mother, Katherine, was raised by an aunt who was eventually burned as a witch. In later years, Katherine herself was accused of Devil worship, and barely escaped from being burned at the stake. Kepler had six brothers and sisters, three of which, died in infancy. In his youth, Johannes was described as: ckly child, with thin limbs and a large, pasty face surrounded by dark curly hair. He was born with defective eyesight-myopia plus anocular polyopy (multiple vision). His stomach and gall bladder gave constant trouble; he suffered from boils, rashes, and possibly from piles, for he tells us that he could never sit still for any length of time (Koestler, p 24)From this inauspicious start, Johannes Kepler began his fascinating journey as a pioneer in astronomy. Johannes Kepler graduated from the Faculty of Arts at the University of Tuebingen at the age of twenty, intending to matriculate into the Theological Faculty. It was here that Kepler learned and became an adherent of the heliocentric theory of planetary motion, first developed by the Dutch astronomer Nicolaus Copernicus. In 1594, Kepler left Tuebingen for the University of Graz to become a professor of astronomy. It was here that Kepler realized that figures of the type shown here determine a definite fixed ratio between the sizes of the two circles, provided the triangle has all sides equal, and a different ratio of sizes will occur for a square between the two circles, another for a regular pentagon, and so on. Kepler believed that this could be used to determine the orbits of planets in the solar system. Unfortunately, Kepler proceeded from a false assumption: namely, that the orbits of the planet were circular. Despite the fact that his calculations did not match known planetary data, Kepler presumed that Copernicuss data was in error, and produced this diagram of orbits, where the outer ring represents the orbit of Saturn. Kepler stayed at the University of Graz until 1600, when he was pressured to leave due to his Lutheran faith. Kepler traveled to the observatory of the famed Danish Astronomer and Imperial Mathematician Tycho Brahe, where he became Brahes assistant. By all accounts, the relationship between the two was strained. We have previously discussed Keplers upbringing. In contrast, Brahe was from an aristocratic background who shared Keplers less than scintillating personality. As a result, the two continuously quarreled, and usually failed to resolve their academic and personal differences. However, the two realized that they needed each other. As a result, both learned from each others writings. Brahe died in 1601, and Kepler assumed his post as imperial mathematicus. In addition, Rudolph II requested his service as court astronomer, which Kepler preformed until Rudolphs death in 1612, During his tenure as court astronomer, Johannes Kepler labored over one of his most impressive works: Astronomia Nova. His primary motivation was to attempt to calculate the orbit of Mars. One offshot of this work was the formulation of the concepts that were eventually known as the first two of Kepler’s Laws. In 1612, Kepler became provincial mathematician to Linz, in upper Austria. Over the next fourteen years, Kepler published Harmonice Mundi, in which Kepler outlined his third law. Furthermore, he published the Epitome Astronomiae Copernicanae, which combined all of his discoveries together. However, Keplers personal life was far less successful. His first wife, Barbara, and their two sons died from the fever and small pox in 1612. In 1615, Kepler was excommunicated from the church, and his mother was placed on trial for being a witch.. .uc291158228f3db04e9f9bcf6250804c3 , .uc291158228f3db04e9f9bcf6250804c3 .postImageUrl , .uc291158228f3db04e9f9bcf6250804c3 .centered-text-area { min-height: 80px; position: relative; } .uc291158228f3db04e9f9bcf6250804c3 , .uc291158228f3db04e9f9bcf6250804c3:hover , .uc291158228f3db04e9f9bcf6250804c3:visited , .uc291158228f3db04e9f9bcf6250804c3:active { border:0!important; } .uc291158228f3db04e9f9bcf6250804c3 .clearfix:after { content: ""; display: table; clear: both; } .uc291158228f3db04e9f9bcf6250804c3 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .uc291158228f3db04e9f9bcf6250804c3:active , .uc291158228f3db04e9f9bcf6250804c3:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .uc291158228f3db04e9f9bcf6250804c3 .centered-text-area { width: 100%; position: relative ; } .uc291158228f3db04e9f9bcf6250804c3 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .uc291158228f3db04e9f9bcf6250804c3 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .uc291158228f3db04e9f9bcf6250804c3 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .uc291158228f3db04e9f9bcf6250804c3:hover .ctaButton { background-color: #34495E!important; } .uc291158228f3db04e9f9bcf6250804c3 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .uc291158228f3db04e9f9bcf6250804c3 .uc291158228f3db04e9f9bcf6250804c3-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .uc291158228f3db04e9f9bcf6250804c3:after { content: ""; display: block; clear: both; } READ: ATM Lines EssayDespite these tribulations, Kepler completed the Tabulae Rudolfinae in 1625. These tables reduced the mean errors in tables of planetary motion significantly. However, political unrest led in the destruction of his home during a peasant revolt, leaving Kepler without a permanent residence. Johannes Kepler was named the private mathematicus in the newly acquired Duchy of Sagan in 1628. Unfortunately, neither this position nor his previous one was a lucrative profession due to the Thirty Years War. As such, Kepler was left having to borrow money to travel to collect an old debt leaving his second wife and children behind, penniless. Sadly, he died en route on November 15, 1630 in the village of Ratisbon. Kepler, to this day, remains one of the greatest figures in astronomy. However, his endeavors were not just limited to this field. He is often called the founder of modern optics for his first use of eyeglasses designed for nearsightedness and farsightedness, his explanations of vision by refraction within the eyes, and his explanation of the use of both eyes for depth perception. Furthermore, he explained the principles of the telescope. His book Stereometrica Doliorum formed the basis of integral calculus. First to explain that the tides are caused by the Moon (Galileo rebuked him for this). First to use stellar parallax caused by the Earths orbit to try to measure the distance to the stars; the same principle as depth perception. First to suggest that the Sun rotates about its axis in Astronomia Nova First to derive the birth year of Christ, that is now universally accepted.

Ambassadors Essays

Ambassadors Essays Ambassadors Essay Ambassadors Essay Jenya Mavromati Panayiotis Karafotias IREL-480-9 For my paper I decided to write about the ambassadors of Denmark, The United States of America and Uruguay. His Excellency Mr. Tom Norring, the ambassador of Denmark, was one of the ambassador’s to come this semester. He decided to focus his speech not on his country but more on the global financial crisis and how it affected Greek economy. He said that even without the crisis the situation in Greece would have been messy. Despite the fact that Maastricht Treaty allows the GDP deficit in European countries not more than 3% Greece had deficit 6-7%. Ambassador said that in 2006-2007 the government of Kostas Karamanlis managed to restrain the deficit to the acceptable level, but later in 2008 they failed. Karamanlis hoped that he would be reelected and he promised to restrain the deficit, but people lost faith in him. Later George Papandreou revealed the new information about the deficit. The deficit for that time was not 8% but 12%. And thus the rescue program was established by the European Union. So Greece took course to the EU and the IMF. They wanted a hard cash and the EU and IMF tried to help with it. Then the restructuring fund was established. The public expenses had to be cut. As ambassador said â€Å"Greece has one of the biggest public administrations† and the cutting of public sector expenses will help to decrease the deficit. He also pointed out that 25% of Greek economy is black economy. The only one thing which he said about his country was that the Denmark is not the part of Eurozone. One of the reasons I enjoyed the speech of Danish ambassador was because he seemed very honest when talking about the topic. When giving his speech, he gave personal examples and continuously referred to the audience. The second ambassador was the ambassador of Uruguay, his Excellency Mr. Jose Luis Pombo Morales. He decided to focus his speech on his country and its relations with Greece and other European countries. Mr. Jose Luis Pombo Morales, talked about political system in Uruguay, that it is a  representative democratic  republic with a  presidential system. Also, he told us that, the members of government are elected for a five-year terms by a  universal suffrage  system. Uruguay is a  unitary state: justice, education, health, security, foreign policy, defence are all administered nationwide. The Executive Power is exercised by the  president  and a  cabinet  of 13 ministers. Plus to that, Mr. Ambassador talked about Uruguay as one of the biggest wool and meat exporter to the EU countries. Mr. Jose Luis Pombo, told the audience, that Uruguay is one of the most economically developed countries in South America, with a high  GDP  per capita and the 52nd highest  quality of life index  in the world. Uruguay is rated as the 2nd least corrupt country in  Latin America  (behind  Chile), although Uruguay scores considerably better than Chile on domestic polls of corruption perception. Its political and labour conditions are the highest level of freedom on the continent. The third ambassador, I want to talk about, is the ambassador of the United States of America, his Excellency Mr. Daniel Smith. Ambassador focused his speech on Greek- Turkish relations and financial crisis. His speech was very diplomatic, and tried to keep neutrality, when some students asked him questions about problems in Libya and Greek-Turkish conflicts. But, Mr. Smith, gave very clear idea, about the USA and its foreign relations. Also

Definition and Examples of Interjections in English

Definition and Examples of Interjections in English An  interjection,  also known as an ejaculation  or an  exclamation, is a word, phrase, or sound used to convey an emotion such as surprise, excitement, happiness, or anger. Put another way, an  interjection is a short utterance that usually expresses emotion and is capable of standing alone. Though interjections are one of the traditional parts of speech, they are grammatically unrelated to any other part of a sentence. Interjections are very common in spoken English, but they appear in written English as well. The most widely used interjections in English include hey,  oops, ouch, gee, oh, ah, ooh, eh, ugh, aw, yo, wow, brr, sh, and yippee.  In writing, an interjection is typically followed by an  exclamation point, but it can also be followed by a comma if it is part of a  sentence. Knowing the different kinds of interjections, and understanding how to punctuate them, will help you use them correctly. First Words Interjections  (such as  oh  and  wow) are among the first words human beings learn as children- usually by the age of 1.5 years. Eventually, children pick up several hundred of these brief, often  exclamatory  utterances. As the 18th-century  philologist  Rowland Jones observed, It appears that interjections make up a considerable part of our language. Nevertheless, interjections are commonly regarded as the outlaws of English  grammar. The term itself, derived from Latin, means something thrown in between. Interjections usually stand apart from normal sentences, defiantly maintaining their syntactic independence. (Yeah!) They arent marked  inflectionally  for  grammatical categories  such as tense or number. (No sirree!) And because they show up more frequently in spoken English than in writing, most scholars have chosen to ignore them. With the advent of  corpus linguistics  and  conversation analysis, interjections have recently begun to attract serious attention.  Linguists  and grammarians have even segregated interjections into different categories. Primary and Secondary Its now customary to divide interjections into two broad classes: Primary interjections  are single words (such as  ah, brr, eww, hmm,   ooh, and  yowza) that are not derived from any other word class, are used  only  as interjections, and dont enter into syntactic constructions. According to linguist Martina Drescher, in her article The Expressive Function of Language: Towards a Cognitive Semantic Approach, which was published in The Language of Emotions: Conceptualization, Expression, and Theoretical Foundation, primary interjections generally serve to lubricate conversations in a ritualized manner. Secondary interjections  (such as bless you, congratulations, good grief, hey, hi, oh my, oh my God,  oh  well, rats, and shoot) also belong to other word classes. These expressions are often exclamatory and tend to mix with oaths, swear words, and greeting formulas. Drescher describes secondary interjections as derivative uses of other words or locutions, which have lost their original conceptual meanings- a process known as  semantic bleaching. As written English grows more colloquial, both classes have migrated from speech into print. Punctuation As noted, interjections are more commonly used in speech, but you might also find yourself using these parts of speech in writing as well. The Farlex Complete English Grammar Rules gives these examples: Ooh, thats a beautiful dress.Brr, its freezing in here!Oh my God! Weve won! Note how punctuating both primary and secondary interjections in writing depends entirely on the context in which they are used. In the first example above, the term  ooh  is technically a primary interjection that generally does not enter into syntactic constructions. It often stands alone, and when it does, the word is generally followed by an exclamation point, as in  Ohh!  Indeed, you could reconstruct the sentence so that the primary interjection stands alone, followed by an explanatory sentence, as in: Ohh! Thats a beautiful dress. In the second sentence, the primary interjection  brr  is followed by a comma. The exclamation point, then, does not come until the end of the connected sentence. But again, the primary interjection could stand alone- and be followed by an exclamation point- as in: Brr! Its cold in here. The third example contains a secondary interjection  Oh my God that stands apart from the second sentence, with the interjection and sentence both ending in exclamation points. You can also use secondary interjections as integral parts of  sentences: Hey, why did you let the dog in here?Oh my, I knew I should have turned off the oven!Good grief Charlie Brown! Just kick the football. Of course, the creator of the Peanuts cartoons would have likely used the secondary interjection more like a primary interjection. Indeed, a biography of the famed illustrator uses the phrase in just that way: Good Grief! The Story of Charles M. Schulz Since interjections depend so heavily on how they are used in speech, the punctuation they take varies greatly, according to context, but they are usually followed by an exclamation point when standing alone or a comma when introducing a sentence. Versatile Parts of Speech One of the more intriguing characteristics of interjections is their multifunctionality: The same word may express praise or scorn, excitement or boredom, joy or despair. Unlike the comparatively straightforward  denotations  of other parts of speech, the meanings of interjections are largely determined by  intonation,  context, and what linguists call  pragmatic function, such as: Geez, you really had to be there. As  Kristian Smidt wrote in Ideolectic  Characterisation in  A Dolls House published in Scandinavia: International Journal of Scandinavian Studies: You can fill it [the interjection] like a carrier bag with twenty different senses and a hundred different shades of meaning, all dependent on context, emphasis, and tonal accent. It can express anything from indifference to comprehension, incomprehension, query, rebuttal, rebuke, indignation, impatience, disappointment, surprise, admiration, disgust, and delight in any number of degrees. With interjections fulfilling such a large role in English, grammarians and linguists are calling for more attention to and study of these important parts of speech. As  Douglas Biber,  Stig Johansson,  Geoffrey Leech,  Susan Conrad, and Edward Finegan note in Longman Grammar of Spoken and Written English: If we are to describe spoken language adequately, we need to pay more attention to [interjections] than has traditionally been done. In an era of increasing communication via text messaging and social media- which is often laced with interjections- experts say that paying more attention to these loud and forceful parts of speech will help create a better understanding of how human beings actually communicate. And that thought certainly deserves a loud and forceful  Youwza! Sources Biber, Douglas. Longman Grammar of Spoken and Written English. Stig Johansson, Geoffrey Leech, et al., Longman, November 5, 1999. Farlex International, Inc. The Farlex Complete English Grammar Rules, 2016: Grammar. Bukupedia, June 16, 2016. Johnson, Rheta Grimsley. Good Grief!: The Story of Charles M. Schulz. Hardcover, First Edition edition, Pharos Books, September 1, 1989.

The Ethics of Distribution, How to distribute health care fairly Essay

The Ethics of Distribution, How to distribute health care fairly - Essay Example Even after increased spending on the United States health care, the country could not manage to improve health status significantly. Currently, access to health care in the United States is far from equitable; this has raised the legitimate question of justice. Health care insurance has managed to obtain access for most Americans, but 15 percent of individuals remain without coverage. A lot of people are still not able to access modern medicine, and this raises an important topic in medical ethics (Trotochaud, 2006). In the conceptual bioethics framework, access to health care is under the principle of justice, for example; entitlement to resources, equitable distribution, and fairness. The issues of justice in the health care system are divided into two related but different dimensions; access and allocation. Allocation is the process that is used to determine the health care resources for distribution to individuals and populations. The allocation issue has three levels; social level, this is the amount of resources spent by the government on health care compared with other budgetary needs. Second tier is allocation at the point of healthcare service; this is the decisions of health care portions of the federal budget and to whom, where and how the funds will be spent. The final level concerns the individual patient; access to health care in the United States is determined by the ability to have health insurance coverage. Access relates to whether individuals who should be or who are entitled to access health care services can receive them. Even with all the government spending on health care, a majority of people in the United States go without health insurance coverage (Trotochaud, 2006). For example, in the year 2009, 50.7 million individuals lacked healthcare cover. For the many individuals covered by insurance, they can access high-quality care with ease but at high costs. Those without coverage, or without adequate cover forgo much-needed care,

Political system of saudi arabia Essay Example | Topics and Well Written Essays - 500 words

Political system of saudi arabia - Essay Example This is all about making judgments in areas of disagreements between religious and supreme interests. In addition to that, the King keeps the tribes together, since there is a tribal structure in the state of Saudi Arabia. The Royal Family has the power to overthrow the king, supposedly. In 2005, the succession of the throne by King Abdullah progressed without any disturbances; just it has been same in the past (Maik et al 3). Recently, King Abdul-Aziz has put in place the rules for the succession by selecting an heir for the post of crown prince and deputy Prime minister. Saudi kings have also fixed a second deputy prime minister, who is next in turn on the unofficial succession line- up, since 1975, in order to maintain their control on the succession progression. Typically, the successors are the sons of the founder of Saudi-Arabia. Usually, the eldest brother is the new king while the second eldest brother, becomes crown prince. The Saudi Arabian Government The crowned king is th e main foundation of power in Saudi Arabian government while other senior princes enjoy immense authority and extensive liberty of action. Though, in practice the King’s powers are restricted and are achieved by consensus. The King has a responsibility to observe Islamic law and other country traditions at all the times. Saudi Arabia has also a heritage of decision making through consultation.

Tears of the Tiger Essay Example for Free

Tears of the Tiger Essay In Sharon Draper’s novel Tears of a Tiger various character deal with a particular challenge or obstacle. Andy Jackson face conflicts with other individuals, their societies, and themselves. Andy conflict with his father shows through out the story and is consistent. Mr.Jackson pressures Andy way too much which leads to arguments between them. â€Å"You seem to be doin’ a fine job of dreamin’ my dreams and planning my future. Maybe I don’t wanna be accepted to white folks† (Andy Page 153). Mr.Jackson pressures Andy a lot with school and keeping his grades up, so Andy can get into college and work in business administration. Andy does not want to do that with his life, it’s not his dream but his father’s dream for him. Mr.Jackson want Andy to have a bright future but does not consider his son feeling or what he wants to do with his future. Andy and Mr. Jackson arguments come from exception his father has for him. Racism in this story plays a pretty big role, Andy puts up with his teachers being racist and also with society. Mr.Jackson tells Andy how society works â€Å" But you must, That’s the only way to make it in this world to assimilate into the society in which we live in that’s why you must pull up your grades and improve your attitude.† Mr.Jackson tells Andy that he must work hard in life to be accepted by white people. He said that how society works. Andy does not like what his father is saying to him because it doesn’t bother him that black people are unimportant to white people. Andy feels white people look down on like his teachers do. Depression is a really consistent conflicts that Andy tries to deal with but struggles with it. Andy’s depression takes over him, he could not control it anymore because he couldn’t get over the death of Rob. In Andy’s Poem he tell how he really feels inside. â€Å" it’s dark where I am and cannot find the light. There are shadows all around me and my heart is full of fright†. The poem shows the state of mind in which he’s in. He feel that he has no one. The aloneness comes from him losing his best friend. Andy can’t think straight because he is so depression he doesn’t know what to do anymore he think he has no one to talk to be he does not realise that so many people are trying to him throught thing but Andy just doesn’t see it . The Depression is what makes Andy struggle with life.

Epic of Beowulf - Christian Morals in Beowulf :: Epic Beowulf christbeo

Christian Morals in Beowulf Beowulf is an epic tale that has been changed over time to try and express a christian moral. While this transformation over time has added a new variable to the plot, it is still impossible to try and erase the original pagan plot completely. It has become evident that the original epic was pagan and had no mention of the biblical references or the christian morality that it contains now. However, it is also evident that the original story dealt with the concept of a higher being or beings. The overriding christian view has many facets and deals with them all as a new way of proposing christianity into the theme of the story. The reason that Grendel becomes outraged is that the bard in the mead hall is singing a song that has to do with creation. This shows Grendel's apparent disregard for God and he proceeds to go to the hall and capture men and eat them while they are asleep. As we progress into the story, we learn that Grendel carries the curse of Cain with him. "He bore the curse of the seed of Cain/ Whereby God punished the grievous guilt of Abel's murder." Cain was the son of Adam and Eve and was the one who murdered Abel, his brother, out of a jealous rage for God's favor to Abel. This shows us that Grendel had more than just a dislike for the men, the song was showing Grendel that his ancestor was looked upon as the bad person and was therefore the underlying concept for Grendel's rage. This was the constant reminder to Grendel of his evil past and thus his reasoning for his actions. We learn to see Grendel as a less than human being, but in actuality, he is a monster who has a degree of humanity in him and that is the reason that he is so hard for Beowulf to kill. He has the human emotion of pride which ultimately is the cause of his downfall. While this seems to be a major part of the story line, it can be removed and the story will only lose the background of Grendel's evil side. This could have been where the real story of Grendel originally was. As with many of the classic medieval stories there is a sense of a higher being and fate is a major factor in Beowulf.

The nuclear family is disintegrating

IntroductionThe nuclear family has been described as an artificial construct of the nuclear age by some people. These people give more credit to the more traditional extended family. (Uzoka, 1979) However, in the present age, all the talks about family disintegration are directed to the nuclear family. The term nuclear family was instituted in the western world for the purposes of distinguishing the various family groups that are in existence. (Gottlieb, 1993)   There is a family group which consists of children and their parents that is, father, mother and children. This is what is referred to as the nuclear family. Then there is a different family structure composed of father, mother, children and relatives. This kind of a family structure is referred to as the extended family. (Bernardes, 1999)Nuclear family structures are not so new. They have been present since time immemorial even though the structures did not have a definite name. The term Nuclear family was coined in 1947 a ccording to Merriam-Webster. Webster suggested that the term must have come up due to the ever changing nature of the industrial age. He thought that the evolution of the name was coincidental and that it did not come as a result of the nuclear age. Is the Nuclear family an artificial construct which has no benefit to an individual?   Originally, the nuclear family was referred to as the immediate family. (Uzoka, 1979)According to research carried out, the term nuclear was coined from ‘nucleus’ which has been known to serve as theoretical root word meaning a centre of a large structure. It has also been said that historically, the nuclear family did not have the dominance that it has been accorded in the nuclear age. Post WWII environment has been implicated for enhancing the dominance of the nuclear family by shifting the family structure. It is important to carry out a study of how sociological factors have played a role in the disintegration of the nuclear family. (Chester, 1986)Disintegration of the Nuclear familyA lot of people have been affected by the breakdown of the nuclear family structure. This issue has made many people upset as it has been a source of problems and destructions to majority of people in the nuclear age. The nuclear family is the smallest possible unit that is considered before any breakdown in a family structured is considered. (Uzoka, 1979).   The nuclear family is not something artificial and it should be considered as anyone’s most vital and first social group. The nuclear family is a natural structure found in any social group whether big or small. (Gottlieb, 1993)An American anthropologist G.P. Murdock was the first sociologist to attest the Nuclear family as a social structure in 1949. (Murdock, 1949). According to many sociologists, the family nucleus found in the new transitory nature of American Society in the 1940s was described as a grounding unit that could easily be picked up and transplanted. Nu clear family disintegration has not only affected the American society, this issue has had a huge blow on most countries in the world.Sociological pressures have been implicated to play a major role in the disintegration. A lot of people try to diminish the anguish that comes as a result of disintegration in the nuclear family by instigating that this structure replaced the disintegrated extended family. The only cause of concern is whether the structure which will replace the nuclear family will be better or worse than it. (Taylor, 1997). Therefore, the contemporary society should be prepared of the sociological effects that the new family unit will bring with it. (Chester, 1986)Sociological Theories on Nuclear family disintegrationThe nuclear family has deeply been analyzed since the early nineteenth century with respect to various disciplines which include: Psychiatry, Cultural, Anthropology, Psychology and Sociology. Family Sociology can be attributed to have played a huge role in carrying out studies on family change since the twentieth Century. Parsons’ theory had the most influential power on the family structure at the time. (Parsons, 1955). There are various theories that have been put forward to explain disintegration in the nuclear family and emphasize on the adaptive elements that the family structure has to undergo. Many Western sociologist interchange the term ‘family’ with ‘nuclear family’. (Gottlieb, 1993)The disintegration of the nuclear family has led to the emergence of one-parent families which include: widowed, adoptive, divorced, unmarried people and also same sex families. Because these groups sought to be recognized as a family unit, a sociologist known as Popenoe in 1988 revised the definition of a family to incorporate the groups. He played a part in influencing a debate on the definition of a family. He suggested that a family should also describe:Any group consisting of one adult and one dependent pe rson People married who are of the same sex. A couple which is not married. (Solly, 2006)The definition of a nuclear family has to include its functions as a social institution. (Taylor, 1997).   According to Murdock, the functions of this social institution include: economic, reproductive, sexual and educational. With the new science of sociology, analysis of the disintegration of the nuclear family became possible. Auguste Comte who was thought by many to be the father of sociology thought disintegration of the nuclear family came as result of French revolution. (Murdock, 1949).Auguste attributes the rejection of aristocratic and hierarchical relations between the common people and the aristocracy as the main cause of family dysfunctions. His theory of attributing social changes to nuclear family disintegration and crisis has become a major subject in family sociology. Frederic Le Play who was the founder of empirical family sociology perceived the breakdown of the nuclear famil y as a result of industrial revolution. His sociological theory describes the stem family as being stronger than the Nuclear family which was separated from stem family and suffer red both physically and financially. He concluded by saying that the nuclear family is very unstable and that its disintegration was inevitable. (Taylor, 1997).According to Popenoe, the breakdown of the nuclear family could have been caused by Promiscuity in the society which made paternity issues difficult to establish. However, other sociologists like Howard and Westermarck found no clear evidence of promiscuity in early families. Marx and Engels influenced a major family theory in the nineteenth century. Marxist theory uses the economic determinism concept to explain how social power is determined by the available economic resources which influences the different kinds of struggle present in the various classes of people. (Parsons, 1955).The patriarchal family which had the father as having the right to private property and authority overshadowed the matriarchal system. The dissolution of capitalistic system led to the liberation of women which saw to it that they also had the ability to acquire and possess wealth. The result was the formation of strong feminist theories regarding gender differences in power that has contributed to the many divorces in the society. Women now have the ability to take care of their own children without the presence of a male figure in the house. This has largely contributed to disintegration of the nuclear family.  Sociological factors are thought to have been the cause of nuclear family disintegrations in Western countries like Canada, Northern Europe and United States. (Solly, 2006)The interactionist theory developed by Ralph Linton focuses on the interactions that occur between family members. Any nuclear family can be studied as a unit of interacting personalities. In the course of carrying out research on the interaction theory, the power in family roles was also studied. This theory explains that the disintegration of the nuclear family could have resulted from bad interactions within the family. For instance, a husband could exercise too much power in the family likely to send his wife away. (Taylor, 1997).A lot of controversy has resulted due to industrialization with women fighting for change of roles within a family setting. Although this move on the part of the women seems to be right, it has been established that single-parent families are not the best. Juvenile delinquency has risen due to the disintegrations in the nuclear family. The absence of the father figure and the ability to spend less time at home, transform children into delinquents. Industrialization has also led to many people dying due to accidents on roads, and places of work. This has increased the number of widowed people hence the nuclear family disintegration. (Patrick, 1995)The Social Darwin’s evolutionary theory has been applied to the family setting. The theory talks about the adaptation of organisms into their natural environments. The family has been compared to an organism which has to adapt to its natural environment if it is to survive from breaking up. Using this theory, Henry Morgan tried to explain the evolutionary development of family through six stages. The first one being the matriarchal stage characterized by promiscuity while the last being the monogamous family.The nuclear family has not been able to adapt to the increased industrialization, civilization and urbanization. There are many challenges that the nuclear family is frequently exposed to. For instance, industrialization and civilization have influenced the roles played by parents in the nuclear family. As a result, disputes have occurred leading to the disintegration of the nuclear family. (Eby, 1995)Morgan in trying to fathom this theory decided that since evolution results in higher development of species, then environmental and social e volution could result in higher development of the family. Extended family evolved to form nuclear family and it is hoped that evolution will lead to the disintegration and evolution of the nuclear family to come up with a unit that will be able to adapt to the current environment. Civilized nations such as North America and Europe have recorded the highest nuclear family disintegrations due to the extensive industrialization present in the nations.Studies reveal that nations considered to be ‘primitive’ such as Africa, have most of their nuclear families still intact. Spencer, who is Pro- Social Darwinism, has attempted to explain the evolution of the family from simple to complex forms. However his explanations were not in line with Engels, Marx and Le Play family sociologists who described the family to be evolving from more complex forms such as the extended family to simpler forms like the nuclear family. If the theory holds, then it is expected that the nuclear fa mily will further disintegrate and evolve into a simpler form. (Betty, 1973)  Structural-functionalism concept was put across by Spencer in trying to explain family theory of change. This theory or concept was further supported by Durkheim and it was seen to form a basis of Parsons’ theory of family change.This theory attributed the changes in the family structure to be as a result of changes in the society. The family was seen as a part of a greater whole which established equilibrium when it was properly combined to other relevant units. When a change occurred in one of the units, then it was transferred to the other parts. It was then decided that changes in the society could have a greater impact on the family as compared to the biological and economic factors in the Social Darwinism and Marxist theory.Durkheim found out that the change in the family structure influenced the relationships between parents and their children. In that the relationship ceases to be based on economic or material needs but on personal motives. In the changing society, women are very liberated that they do not need financial assistance from their partners. The nuclear family is disintegrating and this is shown by the great number of reported divorces and separations in the society. (Betty, 1973)The evolutionary theory was not accepted by many cultural anthropologists as it did not incorporate variations present in many family types due to different cultural contexts in the society. Instead they came up with cultural relativism concept which they thought should be employed in the study of the family evolution. They did not think that it was right to consider other cultures to be more superior or civilized than others. Thy made it clear that each society has unique values and culture which should not be compared with another. This theory was dismissed all together by the end of the nineteenth century.However, the theory popped up again in 1930 in a different form as Ecolog ical Anthropology. This theory emphasized on the relationship that exists between the environment and traits of a particular culture. The nuclear family is rapidly disintegrating due to the changes in the environment in terms of industrialization and urbanization. (Eby, 1995)ConclusionThe nuclear family is the first social group that one has to belong to. Due to the changes and developments that are taking place in the society, the stability of this family structure has been questioned. (Bernardes, 1999)  Industrialization and urbanization have been the reasons behind the emergence of other family structures caused by the breakdown of the nuclear family. There have been many cases of familial dysfunction and disintegration reported in more industrialized nations than in ‘primitive’ nations which prove the social Darwinism theory. (Eby, 1995)   According to Marx, family structures are bound to change from being complex to simple forms. Therefore, it is expected that the nuclear family will further disintegrate to form simple family structures such as single-parent families, divorces, widowers, and single people unmarried people. (Betty, 1973)ReferencesBernardes, J. (1999): We must now define The Family. Marriage and Family Review 28(3/4):21–41.Chester, R. (1986): The Myth of the Disappearing Nuclear Family. In Family Portraits, ed. D., Short Run Press, Ltd.UKGottlieb, B. (1993): The Family in the Western World. New York: Oxford.Murdock, G. P. (1949): Social Structure. New York. Macmillan.Parsons, T. (1955): The American Family. Its Relations to Personality and the Social Structure. In Family Socialization and Interaction Process, ed. Free Press. New YorkUzoka, A. (1979): The Myth of the Nuclear Family. Historical Background and Clinical Implications. American Psychologist 34. Pp1095–1106.Peplau & Taylor, (1997): Sociocultural perspectives in social psychology. Guide to sociocultural resources in social psychology. Melbourne press. New YorkBetty Y. (1973): Extinction. Revised ed. of The Changing Family. Columbia University press. New York  Solly D. (2006): The family on the threshold of the 21st century. Trends and Implications. Congress Cataloguing-in-Publication DataEby, L. (1995): Where's Daddy: Nearly Half the Nation's Children Are Growing Up In Homes Without Fathers. Prentice press. New York.Fagan & Patrick F. (1995): The Real Root Causes of Violent Crimes. The Breakdown of Marriage, Family and Community Cultural Studies Project. The Heritage Foundation. Washington, D.C. No. 1026. The nuclear family is disintegrating The nuclear family has been described as an artificial construct of the nuclear age by some people. These people give more credit to the more traditional extended family. (Uzoka, 1979) However, in the present age, all the talks about family disintegration are directed to the nuclear family. The term nuclear family was instituted in the western world for the purposes of distinguishing the various family groups that are in existence. (Gottlieb, 1993)   There is a family group which consists of children and their parents that is, father, mother and children. This is what is referred to as the nuclear family. Then there is a different family structure composed of father, mother, children and relatives. This kind of a family structure is referred to as the extended family. (Bernardes, 1999)Nuclear family structures are not so new. They have been present since time immemorial even though the structures did not have a definite name. The term Nuclear family was coined in 1947 according to Merriam-Webster. Webster suggested that the term must have come up due to the ever changing nature of the industrial age. He thought that the evolution of the name was coincidental and that it did not come as a result of the nuclear age. Is the Nuclear family an artificial construct which has no benefit to an individual?   Originally, the nuclear family was referred to as the immediate family.(Uzoka, 1979)   According to research carried out, the term nuclear was coined from ‘nucleus’ which has been known to serve as theoretical root word meaning a centre of a large structure. It has also been said that historically, the nuclear family did not have the dominance that it has been accorded in the nuclear age. Post WWII environment has been implicated for enhancing the dominance of the nuclear family by shifting the family structure. It is important to carry out a study of how sociological factors have played a role in the disintegration of the nuclear family. (Chester , 1986)Disintegration of the Nuclear familyA lot of people have been affected by the breakdown of the nuclear family structure. This issue has made many people upset as it has been a source of problems and destructions to majority of people in the nuclear age. The nuclear family is the smallest possible unit that is considered before any breakdown in a family structured is considered. (Uzoka, 1979).   The nuclear family is not something artificial and it should be considered as anyone’s most vital and first social group. The nuclear family is a natural structure found in any social group whether big or small. (Gottlieb, 1993)  An American anthropologist G.P. Murdock was the first sociologist to attest the Nuclear family as a social structure in 1949. (Murdock, 1949). According to many sociologists, the family nucleus found in the new transitory nature of American Society in the 1940s was described as a grounding unit that could easily be picked up and transplanted. Nuclea r family disintegration has not only affected the American society, this issue has had a huge blow on most countries in the world. Sociological pressures have been implicated to play a major role in the disintegration.A lot of people try to diminish the anguish that comes as a result of disintegration in the nuclear family by instigating that this structure replaced the disintegrated extended family. The only cause of concern is whether the structure which will replace the nuclear family will be better or worse than it. (Taylor, 1997). Therefore, the contemporary society should be prepared of the sociological effects that the new family unit will bring with it. (Chester, 1986)Sociological Theories on Nuclear family disintegrationThe nuclear family has deeply been analyzed since the early nineteenth century with respect to various disciplines which include: Psychiatry, Cultural, Anthropology, Psychology and Sociology. Family Sociology can be attributed to have played a huge role in c arrying out studies on family change since the twentieth Century. Parsons’ theory had the most influential power on the family structure at the time. (Parsons, 1955). There are various theories that have been put forward to explain disintegration in the nuclear family and emphasize on the adaptive elements that the family structure has to undergo. Many Western sociologist interchange the term ‘family’ with ‘nuclear family’. (Gottlieb, 1993)  The disintegration of the nuclear family has led to the emergence of one-parent families which include: widowed, adoptive, divorced, unmarried people and also same sex families. Because these groups sought to be recognized as a family unit, a sociologist known as Popenoe in 1988 revised the definition of a family to incorporate the groups. He played a part in influencing a debate on the definition of a family. He suggested that a family should also describe:Any group consisting of one adult and one dependent pe rson People married who are of the same sex. A couple which is not married. (Solly, 2006) The definition of a nuclear family has to include its functions as a social institution. (Taylor, 1997).   According to Murdock, the functions of this social institution include: economic, reproductive, sexual and educational. With the new science of sociology, analysis of the disintegration of the nuclear family became possible. Auguste Comte who was thought by many to be the father of sociology thought disintegration of the nuclear family came as result of French revolution. (Murdock, 1949).  Auguste attributes the rejection of aristocratic and hierarchical relations between the common people and the aristocracy as the main cause of family dysfunctions. His theory of attributing social changes to nuclear family disintegration and crisis has become a major subject in family sociology. Frederic Le Play who was the founder of empirical family sociology perceived the breakdown of the nuclear family as a result of industrial revolution. His sociological theory describes the stem family as being stronger than the Nuclear family which was separated from stem family and suffer red both physically and financially. He concluded by saying that the nuclear family is very unstable and that its disintegration was inevitable. (Taylor, 1997).According to Popenoe, the breakdown of the nuclear family could have been caused by Promiscuity in the society which made paternity issues difficult to establish. However, other sociologists like Howard and Westermarck found no clear evidence of promiscuity in early families. Marx and Engels influenced a major family theory in the nineteenth century. Marxist theory uses the economic determinism concept to explain how social power is determined by the available economic resources which influences the different kinds of struggle present in the various classes of people. (Parsons, 1955).The patriarchal family which had the father as having the rig ht to private property and authority overshadowed the matriarchal system. The dissolution of capitalistic system led to the liberation of women which saw to it that they also had the ability to acquire and possess wealth. The result was the formation of strong feminist theories regarding gender differences in power that has contributed to the many divorces in the society. Women now have the ability to take care of their own children without the presence of a male figure in the house. This has largely contributed to disintegration of the nuclear family.Sociological factors are thought to have been the cause of nuclear family disintegrations in Western countries like Canada, Northern Europe and United States. (Solly, 2006)The interactionist theory developed by Ralph Linton focuses on the interactions that occur between family members. Any nuclear family can be studied as a unit of interacting personalities. In the course of carrying out research on the interaction theory, the power in family roles was also studied. This theory explains that the disintegration of the nuclear family could have resulted from bad interactions within the family. For instance, a husband could exercise too much power in the family likely to send his wife away. (Taylor, 1997).A lot of controversy has resulted due to industrialization with women fighting for change of roles within a family setting. Although this move on the part of the women seems to be right, it has been established that single-parent families are not the best. Juvenile delinquency has risen due to the disintegrations in the nuclear family. The absence of the father figure and the ability to spend less time at home, transform children into delinquents. Industrialization has also led to many people dying due to accidents on roads, and places of work. This has increased the number of widowed people hence the nuclear family disintegration. (Patrick, 1995)The Social Darwin’s evolutionary theory has been applied to th e family setting. The theory talks about the adaptation of organisms into their natural environments. The family has been compared to an organism which has to adapt to its natural environment if it is to survive from breaking up. Using this theory, Henry Morgan tried to explain the evolutionary development of family through six stages. The first one being the matriarchal stage characterized by promiscuity while the last being the monogamous family. The nuclear family has not been able to adapt to the increased industrialization, civilization and urbanization. There are many challenges that the nuclear family is frequently exposed to. For instance, industrialization and civilization have influenced the roles played by parents in the nuclear family. As a result, disputes have occurred leading to the disintegration of the nuclear family. (Eby, 1995)Morgan in trying to fathom this theory decided that since evolution results in higher development of species, then environmental and social evolution could result in higher development of the family. Extended family evolved to form nuclear family and it is hoped that evolution will lead to the disintegration and evolution of the nuclear family to come up with a unit that will be able to adapt to the current environment. Civilized nations such as North America and Europe have recorded the highest nuclear family disintegrations due to the extensive industrialization present in the nations.Studies reveal that nations considered to be ‘primitive’ such as Africa, have most of their nuclear families still intact. Spencer, who is Pro- Social Darwinism, has attempted to explain the evolution of the family from simple to complex forms. However his explanations were not in line with Engels, Marx and Le Play family sociologists who described the family to be evolving from more complex forms such as the extended family to simpler forms like the nuclear family. If the theory holds, then it is expected that the nuclear family will further disintegrate and evolve into a simpler form. (Betty, 1973)Structural-functionalism concept was put across by Spencer in trying to explain family theory of change. This theory or concept was further supported by Durkheim and it was seen to form a basis of Parsons’ theory of family change.  This theory attributed the changes in the family structure to be as a result of changes in the society. The family was seen as a part of a greater whole which established equilibrium when it was properly combined to other relevant units. When a change occurred in one of the units, then it was transferred to the other parts. It was then decided that changes in the society could have a greater impact on the family as compared to the biological and economic factors in the Social Darwinism and Marxist theory. Durkheim found out that the change in the family structure influenced the relationships between parents and their children. In that the relationship ceases to be based on economic or material needs but on personal motives. In the changing society, women are very liberated that they do not need financial assistance from their partners. The nuclear family is disintegrating and this is shown by the great number of reported divorces and separations in the society. (Betty, 1973)The evolutionary theory was not accepted by many cultural anthropologists as it did not incorporate variations present in many family types due to different cultural contexts in the society. Instead they came up with cultural relativism concept which they thought should be employed in the study of the family evolution. They did not think that it was right to consider other cultures to be more superior or civilized than others. Thy made it clear that each society has unique values and culture which should not be compared with another. This theory was dismissed all together by the end of the nineteenth century.However, the theory popped up again in 1930 in a different form as Eco logical Anthropology. This theory emphasized on the relationship that exists between the environment and traits of a particular culture. The nuclear family is rapidly disintegrating due to the changes in the environment in terms of industrialization and urbanization. (Eby, 1995)ConclusionThe nuclear family is the first social group that one has to belong to. Due to the changes and developments that are taking place in the society, the stability of this family structure has been questioned. (Bernardes, 1999)  Industrialization and urbanization have been the reasons behind the emergence of other family structures caused by the breakdown of the nuclear family. There have been many cases of familial dysfunction and disintegration reported in more industrialized nations than in ‘primitive’ nations which prove the social Darwinism theory. (Eby, 1995)   According to Marx, family structures are bound to change from being complex to simple forms. Therefore, it is expected th at the nuclear family will further disintegrate to form simple family structures such as single-parent families, divorces, widowers, and single people unmarried people. (Betty, 1973)ReferencesBernardes, J. (1999): We must now define The Family. Marriage and Family Review 28(3/4):21–41.Chester, R. (1986): The Myth of the Disappearing Nuclear Family. In Family Portraits, ed. D., Short Run Press, Ltd.UKGottlieb, B. (1993): The Family in the Western World. New York: Oxford.Murdock, G. P. (1949): Social Structure. New York. Macmillan.Parsons, T. (1955): The American Family. Its Relations to Personality and the Social Structure. In Family Socialization and Interaction Process, ed. Free Press. New YorkUzoka, A. (1979): The Myth of the Nuclear Family. Historical Background and Clinical Implications. American Psychologist 34. Pp1095–1106.Peplau & Taylor, (1997): Sociocultural perspectives in social psychology. Guide to sociocultural resources in social psychology. Melbourne pre ss. New YorkBetty Y. (1973): Extinction. Revised ed. of The Changing Family. Columbia University press. New York  Solly D. (2006): The family on the threshold of the 21st century. Trends and Implications. Congress Cataloguing-in-Publication DataEby, L. (1995): Where's Daddy: Nearly Half the Nation's Children Are Growing Up In Homes Without Fathers. Prentice press. New York.Fagan & Patrick F. (1995): The Real Root Causes of Violent Crimes. The Breakdown of Marriage, Family and Community Cultural Studies Project. The Heritage Foundation. Washington, D.C. No. 1026.

Foreign Exchange Practices and Hedging Tools in the Software Industry - Free Essay Example

Sample details Pages: 28 Words: 8311 Downloads: 6 Date added: 2017/09/18 Category Business Essay Type Argumentative essay Did you like this example? â€Å"FOREIGN EXCHANGE PRACTICES AND HEDGING TOOLS USED BY THE SOFTWARE INDUSTRY† This report is submitted as a part of the requirements of the MBA Program of Bangalore University. This research has been undertaken by RAJEEV SAMUEL JAYAMANOHAR Reg. No: 04VWCM6068 With the guidance and support of Prof. RATHNAKAR ACHARYA Faculty, ABA [pic] ALLIANCE BUSINESS ACADEMY BANGALORE – 560 076 Batch: 2004-2006 ACKNOWLEDGEMENT I would like to express my heartfelt gratitude to our President Prof. Sudhir Angur and Director Dr. B. V. Krishnamurthy for having granted me an opportunity to conduct this study. My sincere thanks to Prof. Ratnakar Acharya for guiding me through the project. My special thanks to the respondents of the study who are been instrumental in the successful completion of this work are Finance Managers, Forex Managers of various software companies at Bangalore City, whom I approached for information and were kind enough to spend time with me irrespective of their busy schedule. Finally I thank my friends who have been with me at every stage of the project in the form of constant support and encouragement without whom, completing this research work would have remained an unfulfilled dream. RAJEEV SAMUEL CERTIFICATE BY THE GUIDE This is to certify that the dessertation entitled â€Å"Foreign Exchange Practices And Hedging Tools Used By Software Industry† by Rajeev Samuel bearing Reg. No 04VWCM6068 has been prepared under my guidance and supervision. The work has been satisfactory and is recommended for consideration towards partial fulfillment of requirement for the M. B. A degree of Bangalore University. Date: Place: Bangalore Signature (Prof. Ratnakar Acharya) DECLARATION This is to state that the dessertation titled â€Å"Foreign Exchange Practices And Hedging Tools By Software Industry† is based on the original work carried out by me under the supervision of Prof. Ratnakar Acharya towards the partial fulfillmen t of requirements for the degree of Master of Business Administration of Bangalore University during the IV semester. This has not been submitted in part or full towards any other degree or diploma. Register No: 04VWCM6068 Date: Place: Bangalore. Signature (Rajeev Samuel) EXECUTIVE SUMMARY The subject title for the study was â€Å" Foreign Exchange Practices and Hedging Tools used by Software Industry† Like any other business organisation, software compnies too face risks inherent to the company and the industry in which they exist. In what way companies face foreign exchange risks? What can companies do when they face Forex risk? Which are the best hedging tools to adopt? On the same lines we can come up with so many other questions for which managers have to take a decision. Since , no formal study has been done to understand all this, the author took the opportunity to conduct this study. The methodology adopted for the study is based on the simplest research methods – descriptive research, which is a fact –finding investigation with adequate interpretation. It is focused and aimed on Foreign Exchange practices prevailing in the Indian software industry. The research methodology used for the study was the survey method. Around 10 companies from Bangalore were taken for the survey. An interview with the finance managers of these companies was taken to collect the primary data. Foreign exchange transactions include a substantial amount of risk due to fluctuations in the exchange rates. Hence, corporates are continuously striving to minimize this risk exposure by the use of various hedging tools like Forward contracts, Options, Swaps, Netting etc. Foreign exchange risk may also be linked to other types of market risks, such as interest rate risk. Interest rates and exchange rates often move simultaneously. So, a bank’s interest rate position indirectly affects overall foreign exchange exposure. It is essential for the corpo rates to study the Forex market, its market potential and the benefit one gets in dealing in Forex trading. It is true that Forex trading is expensive. It is basically because of few traders who trade in large volumes, which affects the small traders. That’s why the market has become so big. Nowadays, corporates take the help of consultants like Thomas Cook, for their Forex trading. Today,the forex market has grown to more than $ 1. 5 trillion per day. 51% is in spot forex transactions, followed by 32% in currency swap transactions, and forward outright forex transactions represents another 5% of this daily turnover. The general public market is an enormous potential of customers who want to speculate in the largest and most efficient market in the world. Three years ago it totaled 15 billion USD daily turn over. The surveyed software companies show that 25% of them perceive that they do not face foreign exchange risk. But, in actual practice, they do face cash balance risk by keeping their balances in their foreign accounts. It has also been found that 45% of the software companies face Exchange rate risk. Companies have rated the Transaction and Operating Exposures as high. Thus, this all shows that software companies do face risk. But, most of the companies don’t adopt any hedging strategy. They maintain foreign accounts and only 35% of the companies use Forward contracts of 3-6 months. Thus, corporates play a major role in the Forex market. They should know the various risks to which they are directly or indirectly exposed. They should also analyse the best strategy which suits best their organisation. Since, the organization is not found to be using any trading software’s which the author has recommended. The most reliable trading system was found to be Live Voice Dealing(LVD). Thus, the companies can be benifited by using these softwares. It will take time for the companies to change their trading system. Companies have b ecome dependent on their Banks and Consultants for their forex trading. So, any organisation whether large or small needs some sort of change in their trading system. Some of the companies are facing some risk but since they are not aware of these practices are not using them. The corporates should identify the exposure, quantify the exposure, and then monitor the performance. Some of the corporates do have their own philosophy for exposure management and they follow it. Thus, the author has suggested improving the Forex risk management into their organisation. TABLE OF CONTENTS | | | | |CHAPTER |PARTICULARS |PG. NO | | | | | |I |INTRODUCTION | | |1. |History of Forex |1 | |1. 2 |Definition and types of Foreign Exchange |3 | |1. 3 |Why do we need Foreign Exchange? |4 | |1. 4 |Forex characteristics |4 | |1. 5 |Foreign Exchange Market and its types |5 | |1. |Role of the exchange rate |7 | |1. 7 |Forex and Stock Market |8 | |1. 8 |Foreign Exchange Reserves in India |9 | |1. 9 |What is Foreign Exchange Risk |10 | |1. 10 |Sources of Foreign Exchange Risks |10 | |1. 1 |Types of Foreign Exchange Transaction Risks |11 | |1. 12 |Measures Of Foreign Exchange Risk |14 | |1. 13 |Why should Firms manage Foreign exchange risk |15 | |1. 14 |What are Foreign Exchange Exposures |17 | |1. 15 |Types of Foreign Exchange Exposures |17 | |1. 6 |Methods Of Hedging |19 | | | | | |II |INDUSTRY PROFILE | | |2. 1 |Introduction to Indian software industry |21 | |2. 2 |Indian software industry-Advantages |21 | |2. |Classification of Software companies |22 | |2. 4 |Value chain of software industry |23 | |2. 5 |Critical Success Factors |24 | |2. 6 |SWOT Analysis of Software industry |25 | |2. 7 |Introduction to Indian software companies |26 | |1. HCL Perot Systems |26 | | |2. Honeywell |26 | | |3. IBM |27 | | |4. i-Flex |29 | | |5. Infosys Technologies |29 | | |6. M-Phasis BFL Software |30 | | |7. Oracle |30 | | |8 . Satyam |30 | | |9 . Texas Instruments |31 | | |10. Wipro |31 | | | | | |III |DESIGN OF THE STUDY | | |3. 1 |Title |33 | |3. |Background of the study |33 | |3. 3 |Statement of the Problem |33 | |3. 4 |Scope of the Study |34 | |3. 5 |Objectives of the Study |34 | |3. 6 |Research Design and Methodology |34 | |3. |Limitation of the Study |35 | | | | | |IV |ANALYSIS AND INTERPRETATION |37 | | | | | |V |FINDINGS AND CONCLUSIONS |53 | | | | | |VI |RECOMMENDATIONS |58 | | | | | |VII |BIBLIOGRAPHY | | | | | | |VIII |ANNEXURES | | | | 1) Questionnaire | | | |Operational definition of concepts | | LIST OF TABLES |NO |PARTICULARS |PAGE NO | |1 |The daily net Foreign Exchange Market turnover in various countries |5 | |2 |Foreign Exchange eserves in India |9 | |3 |Percentage of Software companies facing Foreign Exchange risk |37 | |4 |Percentage showing type of Forex risk faced by software companies |38 | |5 |Percentage showing types of exposure |40 | |6 |Percentage of companies use various source of information |41 | |7 |Percentage showing the type of hedging tool adopted by software companies |42 | |8 |Percentage of companies showing normal time for forward contract |43 | |9 |Percentage of companies considers various factors while formulating hedging strategy |44 | |10 |Percentage of companies showing the nature of usage of hurdle rate |45 | |11 |Percentage showing satisfaction level of companies |46 | |12 |Percentage showing satisfaction level of companies |47 | |13 |Percentage of companies hedge its imports an Exports |48 | |14 |Percentage of banks trade through Indian/foreign banks |49 | |15 |Percentage showing companies trade through different types of banks |50 | |16 |Percentage of companies exposed to various currencies |51 | LIST OF GRAPHS |NO. |PARTICULARS |PAGE NO | |1 |Foreign Exchange reserves in India |10 | |2 |Companies facing isk |38 | |3 |Forex risk faced by software companies |39 | |4 |Risks of companies |40 | |5 |Types of exposure |41 | |6 |Percentage of companies use various source of information |42 | |7 |Type of hed ging tool adopted by software companies |43 | |8 |Percentage of companies showing normal time for forward contract |44 | |9 |companies considers various factors while formulating hedging strategy |45 | |10 |Percentage of companies showing the nature of usage of hurdle rate |46 | |11 |Percentage showing satisfaction level of companies |47 | |12 |Percentage showing satisfaction level of companies |48 | |13 |Percentage of companies hedge its imports an Exports |48 | |14 |Percentage of banks trade through Indian/foreign banks |49 | |15 |Percentage showing companies trade through different types of banks |50 | |16 |percentage of companies is exposed to various currencies |51 | 1. FOREX-AN OVERVIEW Since the demise of fixed foreign currency exchange rates in the early 1970’s, the world economy has undergone sweeping changes. The collapse of the Breton Woods Agreement in 1971 signaled an increase in currency market volatility and trading opportunities. What is the lure of the Foreig n Exchange markets? What is its power? How does it grow to be the most important market in the World? How can you benefit from it? The foreign exchange market dwarfs the combined operations of the New York, London, Tokyo futures and stock exchanges, the daily turnover is approximately 1. 5 Trillion (U. S) dollars per day. The fascination of this market lies in its sheer size, its complexity and almost limitless reach. During the past decade, the foreign exchange market has been the invisible hand guiding the purchase and sale of goods, services and raw materials in every corner of the globe. The foreign exchange market directly affects every country’s bonds, equities, private property, manufacturing and all assets that are accessible to foreign investors. Foreign exchange rates play a major role in determining who finances government deficits, who buys equity in companies, who owns real-estate, who hires and fires employees and who owns the bank at which to maintain you r corporate or personal account(s). There is little doubt that this market affects every aspect of our daily personal and corporate financial lives and influences the economic and political destiny of every nation. The foreign exchange market, then, is the one stabilizing factor in the world’s system of monetary exchange. This market was created not by design but necessity. Traders, bankers, investors, importers and exporters recognized the benefits of hedging risk, or speculating for profit. The currency in your pocket is literally your stock in your country, like stock, its value fluctuates on the international market providing substantial opportunities for profit or loss. The market has its own momentum; it follows its own imperatives, and arrives at its own conclusions. Since the conclusions of value, fortunately or unfortunately affect the value of all assets it is crucial that every individual or institutional investor have an understanding of the foreign exchange ma rkets and the forces behind this ultimate free-market system. There is approximately one and half trillion-dollar worth of average daily 24-hour turnover in the global foreign exchange market. 51% is in spot forex transactions, followed by 32% in currency swap transactions, and forward outright forex transactions represent another 5% of this daily turnover. Spot transactions and forward outright Forex transaction all take place in the inter-bank market with options on inter-bank Forex Transactions making up another 8%, the inter-bank market accounts for 96% of the global foreign exchange market, the remaining 4% is divided among all the global futures exchanges. Inter-bank currency contracts and options, unlike futures contracts, are not traded on exchanges and are not standardized: rather banks and dealers act principles in these markets, negotiating each transaction on an individual basis. Forward â€Å"cash† or â€Å"spot† trading in currencies is substantially u nregulated; there are no limitations on daily price movements and speculative positions limits are not applicable. During problems of liquidity dealers can place trades through a larger number of market participants for better execution. Cash markets are the primary markets and futures are the secondary markets. The cash currency market represents 24 times the volume of currency futures. Cash trading deals in â€Å"Real† instruments with volume exceeding one trillion U. S. dollars worldwide daily. Cash markets provide better liquidity, execution and trading hours. 1. 2 DEFINITION OF FOREIGN EXCHANGE: â€Å"The means and methods by which rights to wealth expressed in terms of currency of one country are converted into rights to wealth in terms of currency of another country are known as ‘Foreign Exchange. The term cover the method by which the currency of one country is exchanged for that of another, the causes, which render such exchanges necessary, the forms in which such changes are conducted and the ratio or equivalent values at which they are reflected. † A foreign exchange transaction is still a shift of funds, or short-term financial claims, from one country and currency to another. â€Å" Foreign exchange refers to money denominated in the currency of another nation or group of nations. Any person who exchanges money denominated in his own nation’s currency for money denominated in another nation’s currency acquires foreign exchange. † Federal Reserve Foreign Exchange Regulations Act, 1973 (FERA) defines Foreign Exchange as â€Å"Foreign currency and any drafts, travelers cheques, letter of credit and bill of exchange, expressed and drawn in Indian currency but payable in any foreign currency. † â€Å"Foreign exchange† refers to money denominated in the currency of another nation or group of nations. Any person who exchanges money denominated in his own nation’s currency for money de nominated in another nation’s currency acquires foreign exchange. That holds true whether the person involved is a tourist cashing a traveler’s check in a restaurant abroad or an investor exchanging hundreds of millions of dollars for the acquisition of a foreign company; and whether the form of money being acquired is foreign currency notes, freeing currency-denominated bank deposits, or other short-term claims denominated in foreign currency. A foreign exchange transaction is still a shift of funds, or short-term financial claims, from one country and currency to another. There are three main types of foreign exchange system: a) The gold standard in its various forms; b) Freely fluctuating exchange rates; and c) The several varieties of exchanges control. The fact that each country has its own monetary system is one of the principle complications of international trade and balances of payments. 1. 3 WHY WE NEED FOREIGN EXCHANGE Almost every nation has its own nati onal currency or monetary unit-its dollar, its peso, its rupee-used for making and receiving payments within its own borders. But foreign currencies are usually needed for payments across national borders. Thus, in any nation whose residents conduct business abroad or engage in financial transaction with person in other countries, there must be a mechanism for providing access to foreign currencies, so that payments can be made in a form acceptable to foreigners. In other words, there is a need for â€Å"foreign exchange† transactions-exchanges of one currency for another. 1. 4 FOREX CHARACTERISTIES †¢ Size of the global Forex market: 1500 Billion $ per day. For comparison: Bond/Treasury US Market: 300 Billion $ per day. Stock Exchanges Markets: 30 Billion $ per day (estimated). The market does not have a precise location, and the transactions are done via telephone, facsimile, and recently via Internet, this situation facilitates the activity of the traders. †¢ The prices of the market are established electronically by more than 500 international banks, which carry out exchanges between the market companies and governments. These banks constantly issue their prices, and the last quotation issued is considered as the price of the market. †¢ Forex is opened 24/24, five days a week, therefore, the players have the possibility of an immediate reaction. †¢ Leverage on deposit is possible due top the small consecutive change in price. †¢ Forex is characterized by the fact that is cannot be high or low. The potential of profit exists in one direction as in the other. Table 1:The daily net Foreign Exchange Market turnover in various countries |AVERAGE DAILY NET FOREIGN | |EXCHANGE MARKET TURNOVER IN THE MAIN CENTRES (In US$ billions) | |United Kingdom |4645 | |United States |2444 | |Japan |1613 | |Singapore |1054 | Hong Kong |902 | |Switzerland |865 | |Germany |762 | |France |58 | |Australia |395 | |Denmark |305 | |Canada |298 | |Sweden |281 | 5. FOREIGN EXCHANGE MARKET AND ITS TYPES The foreign exchange market is the market in which currencies are bought and sold against each other. Today, it is the largest market in the world with a turnover of about $1. 5 trillion approximately every day. The reason is the organizations like International banks, multi-national corporations, and large brokerage houses trade in huge volumes of currencies. The major currencies traded in this market are the US dollar, Deutschemark (DM), yen, Pound Sterling, Swiss franc, Canadian dollar, Dutch guilder, Italian Lira and the Belgian franc. The foreign exchange market is a cash inter-bank or inter-dealer market. It is called as ‘over the counter market’. This means that there is no single market place or an organized exchange (like a stock exchange) where traders meet and exchange currencies. The traders sit in the offices (Foreign exchange dealing rooms) of major commercial banks around the world and communic ate over the telephone and through computer terminals at thousand of locations worldwide. Geographically, the markets span all the times ones from New Zealand to the west cost of the United States. The time New York is staring to wind down at 3. 00 p. m. , it is noon in Los Angeles. By the time it is 3. 00 p. m. , in Los Angeles it is 9. 00 a. m. or the next day in Sydney. Thus the market functions virtually 24-hours enabling a trader to offset a position created in one market using another market. . Five widely used international markets are: 1. Foreign Exchange market The foreign exchange market allows currencies to be exchanged in order to buy the products or invest in securities denominated in foreign currency. 2. Eurocurrency Market The Eurodollar market, which is now referred as Eurocurrency market was created as corporations in the U. S deposited U. S dollar in European banks. These European banks were willing to accept dollar deposit, since they could then lend dollars to corporate customers based in Europe. Because the U. S dollar deposited is placed in banks located in Europe and other continents became know a Eurodollars. 3. Euro credit Market Loans of one year or longer extended by Euro banks are commonly called Euro credits or Euro credit loans. Such loans in the Euro credit Market have become popular since corporations and government agencies often desire to borrow for a term exceeding one year, and a common maturity for Euro credit loans in five years. 4. Eurobond market While the Euro currency and Euro credit loans help to accommodate short and medium-term borrowers, they do not accommodate the long-term borrower. To fill this gap, the Euro bond market was created. This market facilitates the transfer of long-term funds form surplus units to deficit units around the world. 5. International Stock Market When MNC’s issue stock, they often consider placing some in foreign stock markets to increase the probability that investors wil l absorb the entire issue. MNC’s with access to foreign stock markets may be able to issue stock at a higher price, which reflect a lower cost of capital. 1. 6 ROLE OF THE EXCHANGE RATE The exchange rate is price-the number of units of one nation’s currency that must be surrendered in order to acquire one unit of another nation’s currency. There are also various â€Å"trade-weighted† or† effective† rates designed to show a currency’s movements against an average of various other currencies. Quite apart from the spot rates, there are additional exchange rates for other delivery dates, in the forward markets. A market price is determined by the inter-action of buyers and sellers in that market and a market exchange rate between two currencies are determined by the interaction of the official and private participants in the foreign exchange rate market. For a currency with an exchange rate that is fixed, or set by the monetary authoriti es, the central bank or another official body is a key participant in the market, standing ready to buy or sell the currency as necessary to maintain the authorized pegged rate or range. The participants in the foreign exchange market are thus a heterogeneous group. But, whether official or private, or the motive being investing, hedging, speculating, arbitraging, paying for imports, or seeking to influence the trade, they are all part of the aggregate demand for and supply of the currencies involved, and they all play a role in determining the market exchange rate at that instant. Given the diverse views, interests, and time frames of the participants, predicting the future course of exchange rates is a particularly complex and uncertain business. At the same time, since the exchange rate influences such a vast array of participants and business decisions, it is a pervasive and singularly important price in an open economy, influencing consumer prices, investment decisions, inte rest rates, economic growth, the location of industry, and must else. The role of the foreign exchange market in the determination of that price is critically important. 1. 7 FOREX AND THE STOCK MARKET ? Forex works 24 hours a day. The stock market in India works only from 12 to 3 p. m. ? There are always the same 5 major currencies traded on the Forex market, whereas in the stock market there are thousands of securities to trade, and it is hard to understand why each particular stock will go up or down today. Choosing the right stocks from thousands to make a portfolio is not an easy thing either. ? The minimum amount needed in order to open a trading account on the Forex market-$1000-2000. This relatively small amount of money gives you an opportunity to ear $300-800 per day or even greater. To have an opportunity to ear $300-800 per day on the stock market, you have to put up $15000-20000 for your account. Certainly you can lose on both markets, but on forex you can win usi ng a much smaller amount of trading capital. ? It is more difficult to predict the stock market because of the millions of inexperienced investors making the movements chaotic ? There is no â€Å"bull† or â€Å"bear† market on Forex. On the other hand in the stock market, you can earn money mostly during a period of booming economy. But economy development is cyclical-and periods of growth will eventually be replaced by periods of recession. And in this case, when the stock market is going down, you cannot win as a day trader. On the forex market you have a unique feature- a so-called† demo account† or simulated account, which allows you to participate in trading using real-time prices on the deal station with the same interface and functions as on real trading, using the same news and technical analysis tools to predict market, movements, from the comfort of your home and via the internet. Now you can understand why more and more people go for forex tradin g. It is convenient and inexpensive. It gives you the opportunity and the time to develop your personal trading system. The most important participants in the market are banks. Foreign Exchange is traded â€Å"over the counter† via telephone and computer communications among banks, and not in organized exchanges such as stock exchanges. 8. FOREIGN EXCHANGE RESERVES IN INDIA Table 2: Foreign Exchange Reserves in India |YEAR |US $ MN. |1995 |17000 | |1996 |19500 | |1997 |25300 | |1998 |25300 | |1999 |32000 | |2000 |42500 | |2001 |48500 | |2002 |53400 | Source: International Financial Statistics, IMF. Graph 1:Foreign Exchange Reserves in India . FOREIGN EXCHANGE RISK Michael Adler and Bernard Dumas define foreign exchange risk in terms of the variance of unanticipated change in exchange rates. That is, they define exchange rate risk in terms of the unpredictability of exchange rates as reflected by the variance. From this, it is clear that unpredictability is paramount in the me asurement of exchange-rate risk. Thus, the author defines foreign exchange risk as follows: â€Å"Foreign Exchange risk is measured by the variance of the domestic-currency value of an asset, liability income that is attributable to unanticipated changes in exchange rates. 1. 10 SOURCES OF FOREIGN EXCHANGE RISK Foreign exchange rate fluctuation affect banks both directly and indirectly. The direct effect comes from banks’ holdings of assets (or liabilities) with net payment streams denominated in a foreign currency. Foreign exchange rate fluctuations alter the domestic currency of such assets. This explicit source of foreign exchange risk is the easiest to identify, and it is the most easily hedged. The indirect sources of risk are subtler but just as important. A bank without foreign assets or liabilities can be currency risk because the exchange rate can be affecting the profitability of its domestic banking operations. For example consider the value of a banks’ loan to an U. S. exporter. An appreciation of the dollar might make it more difficult for the U. S. exporter to compete against foreign firms. If the appreciation thereby diminishes the exporter’s profitability, it also diminishes the probability of timely loan repayment and, correspondingly, the profitability of the bank, in this case, the bank is exposed to foreign exchange risk; a stronger dollar decreases its profitability. In essence, the bank is† short† dollars against foreign currency. Any time the value of the exchange rate is linked to foreign competition, to the demand for loans, or to other aspects of banking conditions, it will affect even â€Å"domestic† banks. Foreign exchange risk also may be linked to other types of market risk, such as interest rate risk. Interest rates and exchange rates often move simultaneously. So, a bank’s interest relates position indirectly affects its overall foreign exchange exposure. The foreign excha nge rate sensitivity of a bank with an open interest rate position typically will differ from that of a bank with no interest rate exposure, even if the two banks have the same actual holding of assets denominated in foreign currencies. Against, the vulnerability of the bank as a whole to foreign exchange fluctuations depends on more than just is its holdings of foreign exchange. 1. 11 TYPES OF FOREIGN EXCHANGE TRANSACTION RISKS Foreign exchange transactions include substantial amount of risk due to fluctuations in exchange rates. Hence corporates are continuously striving to minimize their risk exposure by the use of various hedging tools like forward contract, options, swaps, Off Balance Sheet netting etc. The various risks of Foreign Exchange Transactions are: 1. Open Position or Exchange Rate Risk (Risk from market movement) It is the risk of change in exchange rates, which affects imports/ exports; this risk prevails from the date of order till the date of payment. 2. Cash B alance Risk The balances maintained in the foreign accounts (EEFC) at the end of each day are referred to as cash balances. The balances in the EEFC account do not earn any interest. 3. Maturity Mismatch/Liquidity/Gap/Interest Rate Risk (Risk due to improper transaction) The risk arises out of the fact that maturity period of purchase and sale of foreign currency in case of imports and exports don’t match. Liquidity risk is the risk that bank will be unable to meet its funding requirements or execute a transaction at a reasonable price. Market liquidity risk is the risk that bank not being able to exit or offset positions quickly at a reasonable price. 4. Credit or counter party Risk (Risk from customers) This is a risk due to inability or unwillingness of the counterpart to meet its obligations. Over this kind of risk bank has got proper control but bank tries to avoid or minimize the risk by taking following actions: . By fixing counterpart limits .By appropriate measure ments of exposure Credit evaluation and monitoring .By following sound operating procedure This risk can be classified into two ways: a) Pre-Settlement Risk Pre settlement risk is the risk of loss due to counter party defaulting on a contract during the life of a transaction. This exposure is also referred to as the replacement cost. A key tool for effective management of this risk is the fixation of exposure limits on counter parties. b) Settlement Risk Settlement risk is the risk arising when a bank performs its obligation under a contract prior to the counter party doing so. This risk frequently arises in international transactions because of the time zone differences. The credit risk can also be classified in to: a) Contract Risk If before the performance of the contract, the counter party fails the contract has to be canceled. In the mean time if rate has moved against it, then the loss is to be born by the bank as the contract is to be closed at the on going market rates. b ) Clean risk In an exchange contract the currencies are to be exchanged on the value dates. The time zone difference between various center sometimes results in situations when one bank has already paid the amount of currency to be given before receiving the amount the currency to be received the counter party fails, it may result in total loss. c) Sovereign risk If the counter party bank is situated in different country then there is a possibility of having sovereign risk. Also because of the political and economic factors in that country. If a country suspends the foreign currency payments the bank may stand to lose, although the counter party have performed its part of the contract in local currency. The bank while fixing counter party limits for the overseas bank has to give due weight age to the political stability, health of the economy, availability of financial infrastructure, and expected state interference in financial transactions, particularly foreign exchange transac tions. d) Country Risk This risk related to the ability and willingness of a country to service its external liabilities. It is also known as ‘sovereign risk’ or ‘transfer risk’. e) Overtrading Risk Risk of Overtrading arises when the volume of transactions by the dealer or the bank is beyond its administrative and financial facility. In the anxiety to earn huge profits, the dealer or the bank may take up large deals, which a normal prudent bank would have avoided. f) Fraud Risk Dealers or operational staff may indulge in frauds for personal gains or to conceal a genuine mistake committed earlier. g) Legal risk In addition to the foregoing risk there is a legal risk, which exists in all kinds of financial markets. It its probably more so in foreign exchange and interest rates given that inherent volatility. It is therefore extremely important the banks as also the corporate dealing in such products take such steps as would sufficiently protect them fr om the legal standpoint. 1. 12 MEASURES OF FOREIGN EXCHANGE RISK The direct source of foreign exchange risk can be gauged by tallying the net positions on a bank’s assets and liabilities that are denominated in foreign currencies. The example of the bank’s loan to the exporter shows the limitations of the narrow, standardized method most clearly. While the exporter’s loan by itself leaves the bank short in dollars, the standardized method captures none of this indirect exposure. Further, if the bank were to use the foreign currency market to hedge the short dollar position, then the standardized method, having messed the original exposure, would mistakenly treat the hedge as if it added to exposure. In general, if a bank chooses its foreign exchange holdings as though they contribute to risk as the standardized approach does it inappropriate. Use of the latter option, know as the â€Å"internal models† approach, is subject to several requirements for p rudence, transparency and consistency. When used appropriately, it can provide a significant improvement over the standardized method. The internal model approach enables banks to take a broader view of their foreign exchange risk than does the standardized method. This year, the internal model approach focuses on evaluating the risks arising from banks’ trading activities. The approach is well suited to incorporating the correlation between, say, the value of interest rate instruments and the value of foreign exchange. In principle, the internal model approach allows each bank to gauge its exposure carefully enough to incorporate the relationships among even its non-trading operations. However, even at is its, best, the internal models approach is limit din its range of coverage. An even broader approach to assessing banks’ foreign exchange risks can be obtained from an analysis of a bank’s equity returns. Equity returns reflect changes in the value of the f irm as a whole. So, if the value of a bank as a whole is sensitive to changes in the exchange rate, the bank’s equity returns will mirror that sensitivity. Whether from direct or indirect sources, foreign exchange exposure will be reflected in the behavior of returns. Thus, the exchange rate sensitivity of a bank’s equity return provides a comprehensive e measure of its foreign exchange exposure. One drawback of this equity approach is that it is not useful for evaluating the risk level of a particular action. The approach is not linked to an explicitly model of the determinants of foreign exchange exposure, so it cannot be used to trace out the implications of specific decision. However, the approach is useful for bankers and regulators as a tool to evaluate the success of past management of foreign exchange risk. It is especially uitable for comparing the exposure of an assortment of a bank because it can be applied consistently across banks and because it does no t require access to their detailed internal models. More over, its comprehensiveness makes it a good benchmark for evaluating other gauges of exposure. 1. 13 WHY SHOULD FIRMS MANAGE FOREIGN EXCHANGE RISK? Many firms refrain from active management of their foreign exchange exposure, even though they understand the exchange rate fluctuations can affect their earnings and value. They make this decision for a number of reasons. First, management does not understand it. They consider any use of risk management tools, such as forwards, futures and options, as speculative. Or they argue that such financial manipulations lie outside the firm’s field of expertise. We are in the business of manufacturing slot machines, and we should not be gambling on currencies. â€Å" Perhaps they are right to fear the use of hedging techniques, but refusing to use forwards and other instruments may expose the firm to substantial speculative risks. Second, they claim that exposure cannot be measured . They are right currency exposure is complex and can seldom be gauged with precision. But as in many business situations, imprecision should not be taken as an excuse for indecision. Third, they say that the firm is hedged. All transactions such as imports or exports are covered, and foreign subsidiaries finance in local currencies. This ignores the fact that the bulk of the firm’s value comes from transactions not yet completed, so that transaction hedging is a very incomplete strategy. Fourth, they say that the firm does not have any exchange risk because it does all its business in dollars (or yen, or whatever the home currency is). But a moment’s thought will make it evident that even if you invoice German customers in dollars, when the mark drops your prices will have to adjust or you’ll be undercut by local competitors. So revenues are influenced by currency change. Finally, they say that the balance sheet is hedged on an accounting basis—especi ally when the â€Å"functional currency† is held to be the dollar. The misleading signals that balance sheet exposure measure can give are documented in later sections. Modern principles of the theory of finance suggest prima facie that the management of corporate foreign exchange exposure may neither be an important nor a legitimate concern. It has been argued, in the tradition of the Modigliani-Miller Theorem, that the firm con not improve shareholder value by financial manipulations: specifically, investors themselves can hedge corporate exchange exposure by taking out forward contracts in accordance with their ownership in a firm. Managers do not serve them by second-guessing what risk shareholders want to hedge. One counter-argument is that transaction costs are typically greater for individual investors than firms. Yet there are deeper reasons why foreign exchange risk should be managed at the firm level. Operating managers can make such estimates with much more p recision than shareholders who typically lack the detailed knowledge of competition, markets, and the relevant technologies. Furthermore, in all but the most perfect financial markets, the firm has considerable advantages over investors in obtaining relatively inexpensive debt at home and abroad, taking maximum advantage of interest subsidies and minimizing the effect of taxes and political risk. Another line of reasoning suggests that foreign exchange risk management does not matter because of certain equilibrium conditions in international markets for both financial and real assets. These conditions include the relationship between price of goods in different markets, better known as Purchasing Power Parity (PPP), and between interest rates and exchange rates, usually referred to as the International Fisher Effect. 1. 14 FOREIGN EXCHANGE EXPOSURE Foreign exchange exposure is the sensitivity of changes in the real domestic currency value of assets, liabilities, of operating inco mes to unanticipated changes in exchange rates. Several features of this definition are: First, it is exposure of the sensitivity of domestic currency values i. e. , it is a description of the extent or degree to which the home currency value of something is changed by exchange rate changes. Second, it is concerned with real domestic- currency values,. By this we mean that this adjusts inflation to changes in exchange rates. Third, it has existed on assets and liabilities or on operating incomes of firms. Since the values of operating income are so much per period of time, we see that exposure exists on stocks and flows. Fourth, it has not been qualified in the list of exposed items by describing them as being foreign assets, and so on. This is because, unanticipated changes in exchange rates can affect domestic as well as foreign assets, liabilities, and operating incomes. Finally, it has been noticed that the definition refers only to unanticipated changes in exchange rates. Th is is because markets compensate for changes in exchange rates that are anticipated. Consequently, it is only to the extent that exchange rates change by more or less than had been expected that there will be gain or loss on assets, liabilities or operating incomes. 1. 15 TYPES OF EXPOSURE Whether the exposure is accounting-based or economic, the evidence indicates very clearly that changes in foreign exchange rates can change the real cash flows of the firm and thus can have a significant negative impact on a firm’s ability to compete. There are three types of foreign exchange exposure that impact the operation and performance of multinational companies; translation and transaction that are accounting based, and economic which is operational or real exposure. Foreign exchange exposure can be classified into three broad categories. ? Transaction exposure ? Translation exposure ? Economic exposure First and the third together are known as ‘cash flow exposuresâ€⠄¢ while the second is referred to as ‘accounting exposure’ or ‘balance sheet exposure’. †¢ Transaction exposure: A transaction exposure exists when a change in one of the financial prices will change the amount of a receipt or expense. The amount of a transaction ( a receipt or expense) would be determined by the price per unit and the number of units sold or purchased. Transaction exposures typically focus on only the direct effect of a price change-the impact of price changes on quantity is ignored. A transaction exposure will often lead to trouble when there is a mismatch in receipts and expenses. Eg. If an Indian exporter has a receivable of $200,000 due three months, hence and if in the meanwhile the dollar depreciates relative to the rupee a cash loss occurs, conversely if the dollar appreciates relative to the rupee cash gain occurs. Conversely reverse will take place in case of imports. †¢ Translation exposure: A parallel exposure-one that also focuses only on the direct effects of a price change-that would be reflected in the firm’s balance sheet is referred to as a translation exposure. A translation exposure reflects the change in the value of the firm as foreign assets are converted to home currency. Most of the firms make a point of noting that they do not manage translation exposures. Economic exposure: Moving beyond the strike accounting-based exposures, firms have begun to consider their firm’s economic, or real, exposure-also referred to as competitive exposures. Changes in foreign exchange rates will change the firm’s receipts or expenditures not only because of the direct price change but also because the price change will change the amount that the firm buys or sells. This view of finical price risk recognizes changes in foreign exchange rates on the firm’s sales and market share and then on the firm’s net profits (net cash flows). 16. METHODS OF HEDGING Methods of h edging can be classified as a. Internal methods b. External methods a. Internal methods: Internal methods include: i. Invoicing: In invoicing the corporate shifts the entire exchange risk to the other party by insisting that all its imports and exports be invoiced in its home currency. ii. Netting/matching of cash flows: In this method of hedging if a firm has receivables and payables corresponding to the same periods then even if no other action is taken it will be able to match these exposures and make payments out of the payments received, since it will not have to buy or sell currencies in respect of these matched receipts and payments, there is no forex exposure risk involved. This is also called as ‘natural hedging’. iii. Leading and Lagging: The expression leading mean s paying before the due date and lagging means postponing the receipt of funds beyond the date on which they are due. The general rule is to lead i. e. advance payables and lag i. e. postpone receivables in strong currencies and conversely lead receivables and lag payables in weak currencies. b. External methods: External method includes: i. Forward contract: Forward contract is a firm and binding contract entered into by the bank and its customer for the purchase of specified amount of foreign currency at an agreed rate of exchange for delivery and payment at a future date or period agree upon at the time of entering into foreword deal. The bank on its part will cover itself in the inter-bank market or by matching a contract to sell with a contract to buy. ii. Option contracts: These are contracts in which the rate of exchange between the two currencies is fixed at the time the contract is entered into as in a standard forward, but the delivery date is not a fixed date. The corporate (customer) can at its option, take or make delivery on any day between the fixed dates. The internal between the two dates is the option period. Options are financial instruments that c onfer upon the holder the right to do something without the obligation to do so. More specifically, the option is an asset on or up on a specified date if he chooses to do so. The option buyer can simply let his right lapse by not exercising his option on the other hand; the seller of the option has an obligation to take the other side of the transaction if the buyer wishes to exercise his option. For this privilege the option buyer has to pay the seller a fee. iii. Financial Swaps: Swaps is an arrangement whereby a firm borrows in the currency in which it has advantage and exchanges the liability with another firm for an equivalent liability in another currency. Under the same currency, the relative strengths of the firms may be with regard to the payment of interest. One firm may have advantage in borrowing at fixed rate of interest while the other in floating rate. Therefore, the swap many involve borrowing at floating rate and exchanging the liabi8lity for payment of inter est with another firm borrowing at fixed interest rate. It is also possible that both currency and interest factors affect the choice for going for a swap. iv. Futures: Currency futures are standardized contracts that trade like conventional commodity futures on the floor of a futures exchange. A standardized forward contract is a future contr4act (quantity, date and delivery conditions are standardized). They are traded on organized exchanges. In future contract a margin is required, future contracts are ‘marketed to market’ on a daily basis i. e. rofits and losses arising on future contracts are settled daily. 2. 1 INTRODUCTION TO THE INDIAN SOFTWARE INDUSTRY India accounted for about 0. 4% of the global software industry with a turnover of approximately Rs. 120 bn, during 1998-99. Of the total turnover, about Rs. 63 bn. is derived from the global markets, while the remaining is from domestic market. India’s global software revenues are from the US (56. 3%) and Europe (24%) which together contributes about 80% of the export revenues. The Indian software industry is fragmented with over 600 players. However, the major 11 companies accounted for approximately 32 % of the total exports during 1998-99. All the software companies have to follow the rules and regulations mention by the Software Technology Pact. The Indian software industry has grown rapidly at a compounded annual rate of 50% from US$ million eight years ago to a US$ 3. 9 billion in 1998-99 according to National Association of software and service Companies (NASSCOME); a faster rate than the US grew in the same stage of this life cycle. Fuelled by domestic deregulation, entrepreneurial flair and the soaring global demand for low-cast, high-quality software and services India is becoming one of the world’s main centers for offshore software work. Among the Fortune 500 companies, 203 outsource software development to India. 2. 2 INDIAN SOFTWARE INDUSTRY ADVANTAGES Qualit y |131 companies have ISO9000 certificate | |Reliability |Ultimate adherence to delivery schedules | | |Customer satisfaction by using state-of-the-art technology | |Cost and time savings |High speed data communications 64 kbps+easing off-shore communications | | |24 hour virtual offices | |Large manpower pool people |115,000 engineers graduate every year | | |Second largest IT professional source in the world | |Year 200 |Fuller range of cost effective solutions | 2. 3 CLASSIFICATION OF SOFTWARE COMPANIES Software companies can be classified based on numerous parameters. The following bases can be there for their classification: 1. Based on software revenue stream consideration the companies can be classified in the following categories. †¢ Core software companies (says revenues from software greater the 50% of the total revenues). †¢ Diversified software companies –those in the area other than software including the sales and service of computer hardware. 2. Ba sed on the work platform employed: the companies may be either or some fo all of the available platforms-say RS 600, LAN, SUN, DEC, AS/400,PS/2, IBM/Mainframe, UNIX/Variants, PC, etc. 3. Based on area of work: ? Software products: the company can be dealing in the software products and packages. ? Software services: the companies can provide software services ins the form of maintenance of the system, up gradation of the software packages, data entry, solutions to Y2K problems, internet needs, etc. ? On-site service company: these are the companies that work on the client premises and have minimum capital expenditure at own office. ? Offshore service company: these offshore development centers works on the project with regular interface with the client via data communication lines. The solutions are development in-house and transmitted/installed in the client premises with the help of data communication. 4. Based on the area of application: the companies can target any of the sec tors as their customer and focus to provide products or services for that sector. Generally the big companies undertake software work in-house to cater to their specific needs rather than outsourcing the same. The sector of focus can be agriculture, banking, communication, telecommunication, finance, manufacturing, etc. 5. On the basis of growth achieved: ? The companies can have an established reputation in the market with solid base and some assurance of business. They enjoy high growth and are experiencing movement up the value chain. ? The companies can otherwise be startup concerns. These are typically promoted by some technocrats and are vying to making a placer for themselves in the market. They are generally at the low level in the value chain. Survival is the main concern. 6. On the basis of ownership: ? The companies can be multinational’s subsidiaries that are doing job exclusively for the parent company. The parent MNC typically supports them financially and ot herwise. There is assurance of business so the risks are minimal. ? The captive software division or separate company owned by Indian Company for their captive use. The Indian companies that are in the fray to provide solutions on competitive basis as any other vendor in the open market. They do not have captive clients. ? The joint ventures between the foreign company and Indian company to provide in-house support as well as to have commercial operations as any other company in the open market. 2. 4 VALUE CHAIN OF SOFTWARE INDUSTRY The value chain of the software industry is very difficult to conceive. These are rather two sub-segments of the industry having their separate value chains-Software products and software services. While the product is a height-risk strategy as the investment has to be made upfront and the revenue generation is later, the margins are therefore higher to compensate the risk therein. The services are having a low element of risk in them. The investment and the revenue generation are simultaneous. The margins are therefore low as compared to the products. The company can adopt either of the strategy depending on its risk profile and preference. While Infosys has been persistently moving in the product direction, the Wipro strategy is of service. The movement up the value chain is usually accompanied with the following effects. |FROM |TO | |Manpower multiplication game |An intellectual roperty business | |Suppliers of cheap labor |Providers of value added service | |Pay for effort |Pay for solutions | |Focus on the lower costs |Focus is more on quality | |Slow growth, low margins, and manpower Dependant Company. |Faster growth, higher margins and fewer person-dependants | |The value that customer obtains will be measured in terms of |company. | |man-hours spent. |The value that customer derives shall be measured in term of | | |function points delivered or maintained, and in terms of business| | |leverage that the customer obtains f rom the product | | Don’t waste time! Our writers will create an original "Foreign Exchange Practices and Hedging Tools in the Software Industry" essay for you Create order