Coliform Bacteria Essays - Enterobacteria, Bacteria,

Coliform Bacteria Coliform bacteria are good indicator organisms for the presence of pathogenic bacteria due to their realtionship with these pathogenic bacteria, their relative ease of determination by simple methods, and by their occurrence in large quantities in human feces. The MPN method used in this experiment is one of the prescribed techniques for the determination of these coliform bacteria from the Standard Methods for the Examination of Water and Wastewater as prescribed by the EPA. It consists of three stages, each of which necessitates a positive result for the previous stage. The first stage (presumptive test) determines the gas-producing coliform characteristic during lactose-fermentation. The second stage (confirmed test), determines the gram-reaction and also the lactose fermentation abilities of the organism, while the last stage (completed test) determines the endospore presence to determine if the organisms in the sample indeed are coliforms. The number of coliforms or bacteria present is readily seen with the use of a special table and then the statistically estimated numbers are determined. The samples, however, did not produce positive results for the presence of coliforms. Enventhough there was a large MPN value for one of the samples, about 1100 MPN per 100 ml, the sample still tested negative in the last stage. It is therefore suffice to say that the samples did not present any health risks for humans. Future researchers should, however, device or perform other more specific procedures due to the fact that there might have been still coliforms present but these may have been negated by possible endospore-forming relatives. Introduction Human health has always been a hard condition to preserve and the detection and control of pathogens in the environment have been the very key to the success of the human race. Although microbial pathogens are relatively few in comparison to the total number of microorganisms, their detection have been made easy with the use of indicator organisms. Indicator organisms give researchers the benefit of making good assumptions on the presence of pathogens before the pathogens multiply in distressing numbers. For a microbe to be accepted as an indicator organism, it must be present in human feces in large amounts so much so that the presence of these bacteria in a given sample would already point to human fecal contamination. It was reasoned that the largest amount of pathogens was present in human feces, and thus, the indication of the entry of large amounts of human waste, from healthy persons or not, already indicate a great risk (NCSU). Also, indicator organisms must be present wherever and whenever the pathogen organisms are present. More importantly, these indicator organisms must be easily detectable in samples and tests for the measurement of their numbers must be simple enough (Tortora et al. 1995). Coliform bacteria fit all the requirements and are even safe to handle in the laboratory. Coliform bacteria are gram-negative and non-spore/endospore forming bacteria, which include aerobes and facultative anaerobes, and when incubated at 35?C with lactose in the media, will evolve gas (CO2) within 48 hrs, like Escherichia, Klebsiella, Citrobacter and Enterobacter (NCSU). They are also prevalent in the colon and intestinal tract (but not all groups are present) of warm-blooded mammals, including man (Anderson et al. 1998). They are also related to pathogenic bacteria in that a large number of these coliform bacteria usually imply the presence of some pathogenic bacteria (Frank). These characteristics of coliform bacteria already suffice the conditions outlined for these organisms to be classified as indicator organisms. They occur in large amounts in human feces, in fact, humans excrete billions of these coliforms (called fecal coliforms). They are present whenever and wherever the pathogen organisms are present. More importantly, their presence is easily detected as their characteristics are easily tested with the use of simple procedures like gram-staining, endospore-staining and lactose fermentation tests. These principles and procedures now form the basis and the rationale for the methods by which this experiment was conducted. Actually, the use of coliform bacteria as indicators of the presence of pathogenic bacteria is not new already. It as been established since 1880, and because of their reliability as indicator organisms, the procedures have not changed much and have only geared on specifically measuring the amount of fecal coliforms by use of special growth media and techniques. Today, the basis of the Standard Methods for the Examination of Water and Wastewater that are being used (also in this experiment) have been specified by the Environmental Protection Agency (EPA) (NCSU). There are several methods prescribed by the EPA and although the Most Probable Number (MPN) method is not the most

Forum Example

Forum Example Forum – Book Report/Review Example THE ARGUMENT CULTURE: MOVING FROM DEBATE TO DIALOGUE One word to describe the book: Remarkable The argument culture is an amazing book that will forever restructure how we perceive and communicate with the world. In the book, Dr. Tannen argues that American discourse has become submersed with numerous conflicts and that â€Å"the argument culture: moving from debate to dialogue† promotes an adversarial frame of mind. The book illustrates examples of warlike metaphoric language that is heard daily. These metaphors include: the war on cancer, the war on drugs, turf battle among politicians, the battle of sexes among others (Tannen, 45). These metaphors spread through our talk and influence the way we think. The early chapters of the book focus on the media, indicating how famous programs like Crossfire knowingly and irresponsibly frame problems in terms of diametrically opposed sides. This, according to Tannen, has compromised the quality of information received. In the politic al arena, she pin-points an increasingly warring mentality, whether during confirmation hearings, at the election period, or without more ado following the president’s State of the Union makes a speech when the response from the opposition must always be presented (Tannen, 257). Throughout the book, she shows how deeply entrenched this cultural practice is, its form, and how it directly or indirectly affects our daily lives; either in a positive or a negative way. Tannen argues that legal action tries to find solutions to problems by purposely pitting one side against another, and finds basic patterns of violent response in various settings such as schools. In conclusion, this book is not an assault of the argument culture, but it acts as a highway for argument culture, opposition and debate in public discourse (Tannen, 302).ReferencesTannen, Deborah. The Argument Culture: Stopping Americas War of Words. New York: Ballantine Books, 1999. Internet resource.

Evaluate the role that both emotional intelligence and gender play in Essay - 1

Evaluate the role that both emotional intelligence and gender play in influencing an organisations leadership style - Essay Example Moreover, understanding emotions involves how varieties of perceived emotions have different meaning such as angry emotions and their meaning. Lastly, managing emotions involves ability to regulate these emotions and responding appropriately to the perceived emotions (Robitaille and Union Institute and University, 2008, p. 28). Gender includes male and female; leadership has been a male-dominated area for a long time, forcing women to hold minority positions. According to Carli and Eaglya (2003, p. 808), leadership has been assumed to be a masculine task; however, the feminine qualities of co-operation and mentoring have been ignored. It is important to note that men as well as women can be effective in leadership as long as they portray good leadership qualities and adopt an effective leadership style. Needless to say, being more emotionally competent fosters growth in any given task, despite the gender. This essay will discuss the role played by emotional intelligence and gender in influencing an organization’s leadership style. Emotional intelligence is vital in leadership, as it assists the present leaders in dealing with the challenges that arise. According to Gruszka, Matthews and Szymura (2010, p.109), â€Å"intelligence represents an individual’s overall level of intellectual ability.† Needless to say, emotionally intelligent traits are on demand in organizations. According to Sykes (2008, p.3), emotional intelligence traits are vital in solving problems and making effective decisions when managing people in the place of work. Today, majority of organizations do not accept the dictatorial style of leadership, and therefore, leadership is evolving and adapting the democratic style of leadership. As a result, an empowered workforce exists, which requires a matching leadership style; it is rather evident that leadership effectiveness is determined by the type of leadership style used. Mis-using, under-using, or

Economic Implications of Proposed Regulations Essay

Economic Implications of Proposed Regulations - Essay Example The set of regulations was published in December 2009, to which reactions and comments were solicited from financial institutions and market participants worldwide. On April 16, 2010, the set date for the submission of all commentary, nearly 300 different opinions were submitted representing hundreds of financial institutions, investor associations, and regulatory agencies throughout the world. The original text of these commentaries was released for public viewing on May 1, 2010, in the internet website of the Bank for International Settlements, the organization of all central banks worldwide. This dissertation represents the first attempt to collate and analyze the contents of the submitted commentary and gains insights into the nature of international banking regulations and the workings of the global market economy. Chapter 1 provides an introduction to the research undertaken, by presenting a background of the research situation, the objective to be met and the questions the research answered in order to fulfill the objective, the manner in which the research will be carried out, and a brief discussion of the importance of the research undertaking. The financial crisis that has affected the world economy from mid-2008 to the present has opened the old economic debate that has gripped the leading world economies since the dawn of the twentieth century, namely the role that government regulation should ideally play in the determination of economic policy. Two opposing schools of thought have at one time or another guided economic development since the end of World War II. President Franklin Delano Roosevelt’s US post-war economy was dominated by the Keynesian economic principle of the planned economy.

Research Project Paper Example | Topics and Well Written Essays - 1500 words - 1

Project - Research Paper Example Even though both sexes carry the mutation, the females rarely exhibit the signs of the disease. The symptoms may be visible in early infancy and appear in male children before the age of 6. Laboratory testing can establish the children who carry the active mutation at birth (Dalkilic & Kunkel, 2003). At first, progressive proximal muscle weakness of the pelvis and legs that are associated with a loss in muscle mass. Eventually, this weakness spreads to the neck, arms and other areas. The early signs consist of enlargement of the deltoid and calf muscle, difficulties in standing without help, and low endurance. As the condition progresses, there is wasting of the muscle tissue. By the age of 12, most patients are usually dependent on the wheel chair. Symptoms that occur in the later stage include abnormal development of the bone that leads to deformities of the skeleton. As a result of muscle deteroriation, there is occurrence of the loss of movement, in the long run it leads to paralysis. The average life expectancy for the DMD patients is about 25 years. The diagnoses of the disease include DNA testing, muscle biopsy, and prenatal tests. First, the muscle-specific isoform of the dysrtophin gene is made up of 79 exons. DNA tests and analysis determine the particular type of mutation of the exon (s) that is affected. Secondly, muscle biopsy entails extraction of a small sample of muscle tissue. A dye is then applied to reveal the presence of the dystrophin. Lastly, prenatal tests establish if the unborn child has the most common mutations. The X-linked recessive gene carries the DMD. Males have one X chromosome implying that one copy of the mutated gene will lead to DMD. The mutation is transferred by the mother since fathers cannot pass the X-linked traits to their sons. When the mother is a carrier, one of her X chromosomes has a DMD mutation. In that respect, there is 50 % chance that the

Development of the Caspian Oil and Gas Sector

Development of the Caspian Oil and Gas Sector Caspian Oil Gas Role of FDI in Economic Development of Azerbaijan, Kazakhstan and Turkmenistan Abstract This paper underlines the foreign direct investment strategy formulation process in the three energy-rich countries of the Caspian Region: Azerbaijan, Kazakhstan and Turkmenistan. The study comparatively analysis the investment climate in three selected countries and more specifically it examines the foreign direct investment in oil and gas industry and its role in economic development of each country. The research examines the investment climate in Azerbaijan, Kazakhstan and Turkmenistan and factors influencing the foreign investor’s decision-making in oil and gas sector. The first part of this paper overviews the Caspian region and its oil and gas reserves. More specifically this part summarises the role of foreign direct investment in oil and gas industry and how it promotes economic development of Caspian basin countries, namely Azerbaijan, Kazakhstan and Turkmenistan. The second part presents the theoretical framework of foreign direct investment. This part also reviews the previous empirical findings on types, determinants and motives of foreign direct investment. The part 3 comparatively analysis foreign direct investment performance in selected countries and factors which may influence the ability of a country to attract foreign investment. This part also overviews the investment climates in Azerbaijan, Kazakhstan and Turkmenistan. Part 4 concludes. Key Words: FDI, Caspian Sea region, Oil and Gas, Azerbaijan, Kazakhstan, Turkmenistan. 1 Introduction The Overview of the Caspian Sea Region It is wide recognized that foreign direct investment (FDI) can play an important role in the development process of many countries and it is much required. Economies in transition, such as those in Central Asia and the Caucasus, are no exception as they realize the important role of FDI in strengthening their transition process. While some of them have sizable deposits of oil, gas and minerals which are major attractions to foreign investors, others, being less endowed, have more difficulty to attract FDI to their fledgling industrial and service sectors. But in even those countries which are well endowed with natural resources, there is a thrust to diversify their economies away from over-dependence on those resources and to develop viable value-added manufacturing industries and services. FDI can play a major catalytic role in this process. Just a decade years ago the areas on each side of the Caspian Sea – Central Asia to its east side and the Transcaucasia to its west were largely unknown. These regions were provinces of the Soviet Empire important to the outside world neither politically nor economically. Now its is well known that the Caspian Sea is largest land-locked body of water on Earth, bordered by Azerbaijan, Russia, Kazakhstan, Turkmenistan and Iran – the Caspian basin countries (see Map 1). Amongst the five countries only Iran is a member of the Organization of Petroleum Exporting Countries. Kazakhstan, Azerbaijan and Turkmenistan became independent after collapse of Soviet Union in 1991. Once a centre of global commerce, the Caspian Sea region has languished in obscurity ever since the rise of the sailing ship rendered the Silk Road obsolete a half millennium ago (Olcott, 1998). After discovery of oil and gas resources in the Caspian offshore and shore areas, this region became very important oil and gas sector in global context. Moreover, owing to energy security and geopolitical reasons, the Caspian region became very attractive for the West. Azerbaijan became one of the world’s first oil sectors after crude oil production started in Baku in the middle of 19th century. The oil production in Central Asia started in the beginning of the 20th century. Azerbaijan recorded about 70% of Soviet oil production by end of 1940. The former Soviet Union controlled almost all natural resources in Soviet Republics. At the time of their independence, Soviet republics were quasi-states (Olcott, 1998). Each republic has its own president and prime minister, local and national legislatures. The political and economic liberalisation of the Soviet Union in the mid-1980s attracted foreign investors and oil and gas companies interested in exploration and production prospects. The collapse of the Soviet Union gave further opportunities for the liberalisation of investment regulations. By the late 1990s the Caspian region was comparatively politically stable region, and a number of countries significantly improved investment regimes to their oil and gas sectors. Historically, energy industry in Azerbaijan, Russia, Kazakhstan, Turkmenistan and Uzbekistan is very important sector for the economy growth of these countries. However, poor management of natural resources and poor investment climate in these countries lead to disparities emergent between the countries in socio-economic terms. Nowadays, it is well recognized that foreign investment plays a vital role in the development of the oil and gas sector for such countries as Azerbaijan, Kazakhstan and Turkmenistan and significantly stimulates social and economic development of each of these countries. 1.2 Research Questions The presence of potentially vast oil and gas reserves is a part of the foreign investment attraction into the Caspian Sea region. On the other hand, it is important to note that while the quantity of proven reserves undoubtedly plays a significant role in estimating a region’s production and export potential, the other decisive factors for attraction foreign direct investment into this region are undeveloped market, cheap labour and cheap inputs and weak competition. This paper focuses on foreign direct investment strategy formulation process in the three energy-rich countries of the Caspian Region: Azerbaijan, Kazakhstan and Turkmenistan; and on what foreign direct investment strategy in each country are based. The study comparatively analysis the investment climate in three selected countries and more specifically it examines the foreign direct investment in oil and gas industry and performance by each country. The significant number of researches in regard to foreign direct investment mostly explains the investment strategy in the developed countries, when limited study has done on investment in less-developed countries or emerging countries. The selected countries Azerbaijan, Kazakhstan and Turkmenistan are transition countries and to a certain extent new participants in the competition to attract foreign investment. These countries can offer many potential advantages to foreign investor, especially in oil and gas sector of business. The research examines the investment climate in Azerbaijan, Kazakhstan and Turkmenistan and factors influencing the foreign investor’s decision-making in oil and gas sector. There is no much research which explores the determinants of investment in Azerbaijan, Kazakhstan and Turkmenistan, the stereotypes and perceptions that foreign investors have about these countries and what could be done to increase the foreign direct investment flow into these countries. This paper surveys these parts by investigating the multinational oil companies operating in Azerbaijan, Kazakhstan and Turkmenistan. The data from different energy agencies were gathered for comparative analysis of oil and gas data as well as foreign direct investment in different countries. This would not only let one to have a picture of various state strategies related to foreign investment, but could also provide the valuable outlook of the most advantageous approach for transition countries in doing business with foreign investors. 1.3 The Legal Status of Caspian Sea A large share of oil and gas reserves in Central Asia and Caucasus are thought to lie under he Caspian Sea. The question of the ownership of those resources, including the right to license and tax their development, is being argued by the Caspian littoral countries. The legal debate over the Caspian Sea can be tracked back to the 1921 Treaty to Moscow, reaffirmed in 1935, which declared that the inland Caspian Sea belonged to Russia (Kemp, 2000). Later Russia sent a note to the United Nations dated from 5th October 1994, where Russian Ministry of Foreign Affairs stated that the Caspian Sea should not be subject to the provisions of international maritime law (International Energy Agency, 1998). The importance of the application of international law is that a â€Å"sea† under the 1982 Law of the Sea Convention would be subject to separation into national zones for the development of its mineral resources. Russia stated that until all five of the Caspian littoral states (Azerbaijan, Russia, Kazakhstan, Turkmenistan, and Iran) came to a common decision on some other arrangement, the legal status of the Caspian Sea was subject only to the provisions of the more general (Treaty of Friendship between Iran and the USSR of 26 February 1921 and Treaty between Iran and the USSR on Trade and Maritime Navigation of 26 March 1940). Nevertheless, the ongoing legal uncertainty does not seem considerably decreased foreign investment in the Caspian Sea region. Advantageous geological prospects, with potential of a major oil and gas resource base, show significant motivations for companies to invest in this important producing region, preferably from the beginning of its development. 1.4 Current Production and Proven Reserves in Caspian Region Caspian oil presents a lot of opportunities for world oil markets and for the region itself (Energy Charter Secretariat, 2008): The appearance of new production sources would expand world oil supplies. Major quantities of Caspian oil would ease the pressure on the Persian Gulf production capacity and provide an additional hedge against oil supply disruptions Profits from oil exports could stimulate economic growth and improve the standard of living in the Caspian energy-rich counties. The availability of Caspian energy supplies in world markets will likewise improve the prospects for economic growth and political stability in the Caspian basin countries. Nowadays the Caspian Sea region is important, but not major supplier of crude oil to world markets, based upon estimates by British Petroleum (BP) and the Energy Information Administration (EIA). In 2005 the Caspian region produced 2.1 million barrels per day, or 2 per cent of total world production (see Table 1). Kazakhstan’s production rapidly increased since the late 1990s, accounted for 67 per cent and Azerbaijan for 22 per cent of regional crude oil production in 2005. The Caspian Sea region’s comparative contribution to world natural gas supplies is larger than that for oil. Gas production of 3.0 trillion cubic feet per year in 2005 was 3 percent of world production (Energy Information Administration, 2006). Turkmenistan is the largest producer; with production of 2.0 trillion cubic feet per year, it accounts for almost two-thirds of the region’s gas production. (see Figure 1). Unlike oil, the region’s proven reserves of natural gas are a higher proportion of the world total than is its natural gas production. The estimate of proven reserves of natural gas in the Caspian Sea region for the end of 2006 published by Energy Information Administration is 232 trillion cubic feet per year, which represents 4 per cent of the world total (see Table 2). Table 1Oil Production in the Caspian Sea Region 1. Proven reserves are defined by the EIA 2. Possible reserves 3. Other estimates (EIA/IEO 2006) 3.45 million barrels per day, (World Oil, 10 March 2004) 3 million ^Only Caspian area oil and gas production Source: Energy Information Administration (EIA): Caspian Sea Region: Survey of Key Oil and Gas Statistics and Forecasts, July 2006. Table 2Gas Production in the Caspian Sea Region ^Only Caspian area gas production Source: Energy Information Administration (EIA): Caspian Sea Region: Survey of Key Oil and Gas Statistics and Forecasts, July 2006. Figure 1 Gas Production in Caspian Sea region (1992-2004) Source: Energy Information Administration (EIA): Caspian Sea Region: Survey of Key Oil and Gas Statistics and Forecasts, July 2006. 1.5 Role of Oil and Gas in the Economic Development of Caspian Region The development of oil and gas resources in the Caspian region is mostly important for the development of economies in the Central Asian and Transcaucasia. In 1995 the energy sector’s share of gross domestic product (GDP) was an estimated 14.6 percent in Azerbaijan, 10.1 percent in Kazakhstan, 10.2 percent in Turkmenistan (International Energy Agency, 1998). Foreign investment attracted to the oil and gas sector in Caspian region could offer significant profits for the region’s governments and stimulate investment in other economic sectors. The attract foreign investment the host Governments should take discreet measures to ensure the development of an sufficient legal and administrative infrastructure, including institution building and personnel training, to handle the inflow of oil related revenues and to help ensure the countries’ efficient and equitable development. International Monetary Fund (2003) expressed concerns that unless regional governments introduce further administrative reforms, they risk being overwhelmed by new oil wealth. Particularly, corruption is a peril. Economic development motivated by foreign investment in the oil and gas industry helps to guarantee the financial independence of the Central Asian and Transcaucasian states. The transition to the market economy and the economic dislocations originated by collapse of Soviet Union left Azerbaijan, Kazakhstan and Turkmenistan without adequate funds to develop oil and gas resources. Governments of these countries are looking for private investment (mainly from foreign companies) that would play significant role in the development of oil and gas industry. Besides financial capital, a foreign investor brings a modern technology to local industry, including environmentally sound production techniques and modern management approaches. The Caspian Sea region countries are competing with each other for foreign investment. Oil and gas companies have a wide choice of where to make investment. The foreign investor considers the opportunities that offer the best financial returns. However, the investment climate is vital for company’s decision on where to invest. As a result, Kazakhstan and Azerbaijan took considerable steps in creating attractive investment climates. Kazakhstan concentrated on building a body of law applicable to all projects, while Azerbaijan focused primarily on modified production sharing agreements (International Monetary Fund, 2003). By the beginning of 1998, cumulative foreign direct investment in the oil and gas sectors of Central Asia and Transcaucasia had reached an estimated 3 billion of American dollars, nearly one third of which was placed in 1997. Future investment commitments in the region from contracts already signed total over 40 billion of America dollars (International Energy Agency, 1998). So far most foreign investment has been in Kazakhstan and Azerbaijan. Gas-endowed Turkmenistan started to attract foreign investment later than the others due to Government dictatorship and poor investment climate. Caspian oil development has gained a great deal of political and commercial momentum since the first foreign companies came there at the end of 1980s (Ruseckas, 2000). Since then the most important external factor influencing Caspian oil development is the price of oil. Principally if oil prices remain at present high level it is possible the more optimistic projects will be started. The Caspian Sea region could possibly produce approximately 4 million barrels per day by 2010. In any case, the Caspian Sea states require a stable legal regime to develop, produce, transport and market its natural resources. 1.5.1 Summary data on Azerbaijan Owing to extensive oil reserves, Azerbaijan is a major oil producer since the middle of the last century. Between 1990 and 1995 Azerbaijan’s gross domestic product dropped 58 percent (International Energy Agency, 1998). Oil production fell by only 25 percent mainly because of continuing oil product exports to neighbouring countries and an increasing use of heavy fuel oil in domestic power stations to alternative for imported gas. Due to the tightening of monetary and budgetary policies, the fiscal deficit dropped from 11.4 percent of gross domestic product in 1995 to less than 2 percent in 1996. In 2006 Azerbaijans real gross domestic product grew by 31 percent when the oil production in this region significantly increased. Azerbaijans anticipate for sustained economic growth is in its managing of large oil and natural gas resources in the Caspian Sea region, through effective management of the resulting revenue stream, and non-oil sector diversification (Energy Information Administration, 2006). During the beginning of transition most Azerbaijan onshore oil fields were in decline and required momentous new investment to develop large-scale offshore projects and to reconstruct existing fields. Since independence Azerbaijan signed several agreements with foreign oil companies. While maintaining full state ownership over energy companies, Azerbaijan was quick to invite foreign investors to assume a direct role in the development of its hydrocarbon reserves (Thompson, 2004). In 1992 most of the Azerbaijan oil sector assets were merged in two state oil companies – Azerineft and Azneftkimiya. The new merger was called the State Oil Company of the Azerbaijan Republic or SOCAR. While Government organizations handle production and exploration agreements with foreign companies, SOCAR is body to all international companies developing new oil and gas projects in Azerbaijan. After the first commercial oil flows through the Baku-Tbilisi-Ceyhan pipeline during summer 2006 and the increasing oil production from the Azeri-Chirag-Guneshli project, oil revenues are expected to contribute to a doubling of Azerbaijan’s gross domestic product by 2008 (Thompson, 2004). Energy Information Administration (2007) reports that though the oil sector represented around 10 percent of Azerbaijan’s gross domestic product in 2005, it is already projected to double to almost 20 percent of gross domestic product in 2007 (see Table 3). To manage the revenues, former President of Azerbaijan Heydar Aliyev formed a State Oil Fund in 1999, which is designed to use money obtained from oil-related foreign investment for poverty reduction, education and raising rural living standards. As of the end of 2006, the State Oil Fund reported assets of almost 2 billion US dollars, but the fund’s assets are expected to increase to 36 billion US dollars by 2010 (Energy Information Administration, 2006). Table 3Azerbaijan: Economy and Energy (in millions US dollars) 2003 2004 2005 2006 2007 2010 Oil Production (thousand barrels per day) 320 319 441 648 860 1,300 Oil Exports (thousand barrels per day) 215 204 314 521 721 N/A Foreign Direct Investment 3,285 3,556 1,680 -219 -4,750 476 FDI in Oil Sector 3,246 3,461 1,459 -573 -5,198 366 Oil Sector Revenue 886 946 1,337 2,921 5,272 19,417 As share of total rev (%) 42% 38% 39% 51% 59% N/A As share of total GDP (%) N/A N/A 9.8% 15% 19.7% 43.3% Oil Fund Assets 816 972 1,394 1,936 3,093 36,387 Source: Energy Information Administration: Short Term Energy Outlook, 2007; International Monetary Fund (IMF), Article IV Consultation, Staff Report, No 07/191, June 2007 1.5.2 Summary Data on Kazakhstan As it was the case in most other former Soviet Union countries, Kazakhstan’s first attempts at economic reform were effectively taken in response to Russias one-sided price reforms in 1992. After Kazak oil production had suddenly declined for two years in the end of 1993, inflation had out of control. The efforts to create an economic union with Russia and other former Soviet Union countries didn’t meet expectations of the Kazakh Government. Looking at the dynamic Asian economies as a model, the Kazakh Government turned to market style policies. However, the government increased hard budget constraints and restrictive monetary policies due to attempts to solve non-payment problem through state financing. The remained net debts after netting out inter-industry arrears were financed from Government budget and the central bank. In 1993 International Monetary Fund (IMF) granted Kazakhstan a one-year standby package. To maintain IMF collaboration and to stop the decline in gross domestic product, the Kazakh government implemented a second stabilisation program in 1995. But this time hard budget constraints and monetary policy were strengthened by excluding of government financing of net positions in inter-enterprise debts and retreating government guarantees for loans granted by foreign and domestic banks. In the middle of 1996, the International Monetary Fund approved an Extended Fund Facility (EFF) of 446 million US dollars for three years (IMF, 2003). According to International Monetary Fund (2003) the decision was made in light of a wide-ranging three-year reform programme submitted by the government, as well as the positive longer term prospects for production and exports of energy and non-ferrous metals. In 1996, Kazakhstan experienced its first positive economic growth since 1989. 1.5.3 Summary Data on Turkmenistan Preceding the collapse of the Soviet Union approximately 8 percent Turkmenistan’s gross domestic product was generated by gas exports to the rest of the USSR mostly to Belarus, Ukraine and the Caucasus. Another 5 percent of gross domestic product was earned from cotton exports. Gas and cotton exports continue to be used to cover the import of considerable amounts of grain and capital equipment from other former Soviet Republics. While estimates for the fall of gross domestic product between 1990 and 1995 vary depending on how adjustments to official gross domestic product are made, International Monetary Fund and European Bank of Reconstruction and Development agree on about -35 percent (IMF, 2003). This is much less than the 58 percent drop in Turkmen gas production. The rest of the economy is basically agricultural. The cotton industry has been less affected by the downfall of the Soviet Union. The government gradually liberalised some prices beginning in 1992. A presidential decree of 1995 removed price controls on all products except for about 50 items, including energy. The government introduced the manat as the national currency in 1993. In 1995 it unified the previously separate official and commercial exchange rates, which subsequently became determined by inter-bank auctions for foreign exchange. Between 1992 and 1995 the government compensated for the shortfall in revenue from taxes on gas production and exports by cutting expenditures and replacing subsidies to the economy with additional allocations of credit at largely negative interest rates. Controlled prices were adjusted repeatedly but declined in real terms for natural gas and for oil products through 1994. The share of gas related revenues in the central budget declined from 60 percent in 1992 to under 20 percent in 1995, which lowered the share of total budgetary revenue in GDP from 40 percent to 10 percent during this period. Due to drastic expenditure cuts in government wages and investment, including maintenance, the central budget deficit remained fairly stable over this period. It also helped that new excise taxes were introduced in 1995 on petrol (55 percent) and diesel (60 percent). This resulted in some recovery of government capital spending. The easy money policy was changed slowly in 1995 and 1996. During this time foreign exchange surrender requirements of state-owned enterprises to the Foreign Exchange Reserve Fund (FERF) were increased to 50 percent for gas and oil exports, and the money allocated directly to the central budget. Prior to that, this fund had been used to award credits to the economy, contributing to monetary expansion. In 1995 and 1996, bank credit allocation was reduced, real interest rates rose (due to credit auctions with deregulated interest rates), and reserve requirements for banks were increased. However, the pursuit of these policies was not smooth, in part due to the limited political autonomy of the Central Bank. Nevertheless, inflation decelerated by 50 percent towards the end of 1995 and is estimated to have been 445 percent in 1996, and 21 percent in 1997. Despite plummeting gas exports in recent years, Turkmenistan’s current account was slightly positive in 1994 and 1995, as long as arrears owed to the country are not taken into account. If such arrears are counted the 1995 balance swings from an estimated surplus of 54 million US Dollars to a deficit of 289 million US Dollars. The situation has probably continued to deteriorate due to weak gas exports. 2 Theoretical Frameworks 2.1 Overview of Foreign Direct Investment Theories There is variety of empirical studies on theoretical models explaining foreign direct investment (FDI) and its determinants. The various approaches from different disciplines such as economics, international business, organisation and management explain numerous characteristics of this phenomenon. The following dissimilar methods, explaining foreign direct investment as the location decision of multinational enterprises are mostly acknowledged in empirical literature on FDI: Ownership advantages as determinants of foreign direct investment (including monopolistic advantage and internalisation theory) based on imperfect competition models and the view that multinational enterprises (MNEs) are firms with market power (Hymer, 1960; Buckley and Casson, 1979; Kindleberger, 1969; Caves, 1971 for ownership advantages) Determinants according to the Neoclassical Trade Theory and the Heckscher-Ohlin model, where capital moves across countries due to differences in capital returns (for example Markusen et al, 1995,pp. 98-128; Aliber, 1970); Determinants of foreign direct investment in Dunning’s ownership-location-internalization (OLI) framework, which brought together traditional trade economics, ownership advantages and internalisation theory (Dunning, 1977; 1979); Determinants of foreign direct investment according to the horizontal FDI model or Proximity- Concentration Hypothesis (Krugman, 1983; Markusen, 1984; Ethier, 1986; Horstmann and Markusen, 1992; Brainard, 1993); Determinants of foreign direct investment according to the vertical FDI model, Factor-Proportions Hypothesis or the theory Development of the Caspian Oil and Gas Sector Development of the Caspian Oil and Gas Sector Caspian Oil Gas Role of FDI in Economic Development of Azerbaijan, Kazakhstan and Turkmenistan Abstract This paper underlines the foreign direct investment strategy formulation process in the three energy-rich countries of the Caspian Region: Azerbaijan, Kazakhstan and Turkmenistan. The study comparatively analysis the investment climate in three selected countries and more specifically it examines the foreign direct investment in oil and gas industry and its role in economic development of each country. The research examines the investment climate in Azerbaijan, Kazakhstan and Turkmenistan and factors influencing the foreign investor’s decision-making in oil and gas sector. The first part of this paper overviews the Caspian region and its oil and gas reserves. More specifically this part summarises the role of foreign direct investment in oil and gas industry and how it promotes economic development of Caspian basin countries, namely Azerbaijan, Kazakhstan and Turkmenistan. The second part presents the theoretical framework of foreign direct investment. This part also reviews the previous empirical findings on types, determinants and motives of foreign direct investment. The part 3 comparatively analysis foreign direct investment performance in selected countries and factors which may influence the ability of a country to attract foreign investment. This part also overviews the investment climates in Azerbaijan, Kazakhstan and Turkmenistan. Part 4 concludes. Key Words: FDI, Caspian Sea region, Oil and Gas, Azerbaijan, Kazakhstan, Turkmenistan. 1 Introduction The Overview of the Caspian Sea Region It is wide recognized that foreign direct investment (FDI) can play an important role in the development process of many countries and it is much required. Economies in transition, such as those in Central Asia and the Caucasus, are no exception as they realize the important role of FDI in strengthening their transition process. While some of them have sizable deposits of oil, gas and minerals which are major attractions to foreign investors, others, being less endowed, have more difficulty to attract FDI to their fledgling industrial and service sectors. But in even those countries which are well endowed with natural resources, there is a thrust to diversify their economies away from over-dependence on those resources and to develop viable value-added manufacturing industries and services. FDI can play a major catalytic role in this process. Just a decade years ago the areas on each side of the Caspian Sea – Central Asia to its east side and the Transcaucasia to its west were largely unknown. These regions were provinces of the Soviet Empire important to the outside world neither politically nor economically. Now its is well known that the Caspian Sea is largest land-locked body of water on Earth, bordered by Azerbaijan, Russia, Kazakhstan, Turkmenistan and Iran – the Caspian basin countries (see Map 1). Amongst the five countries only Iran is a member of the Organization of Petroleum Exporting Countries. Kazakhstan, Azerbaijan and Turkmenistan became independent after collapse of Soviet Union in 1991. Once a centre of global commerce, the Caspian Sea region has languished in obscurity ever since the rise of the sailing ship rendered the Silk Road obsolete a half millennium ago (Olcott, 1998). After discovery of oil and gas resources in the Caspian offshore and shore areas, this region became very important oil and gas sector in global context. Moreover, owing to energy security and geopolitical reasons, the Caspian region became very attractive for the West. Azerbaijan became one of the world’s first oil sectors after crude oil production started in Baku in the middle of 19th century. The oil production in Central Asia started in the beginning of the 20th century. Azerbaijan recorded about 70% of Soviet oil production by end of 1940. The former Soviet Union controlled almost all natural resources in Soviet Republics. At the time of their independence, Soviet republics were quasi-states (Olcott, 1998). Each republic has its own president and prime minister, local and national legislatures. The political and economic liberalisation of the Soviet Union in the mid-1980s attracted foreign investors and oil and gas companies interested in exploration and production prospects. The collapse of the Soviet Union gave further opportunities for the liberalisation of investment regulations. By the late 1990s the Caspian region was comparatively politically stable region, and a number of countries significantly improved investment regimes to their oil and gas sectors. Historically, energy industry in Azerbaijan, Russia, Kazakhstan, Turkmenistan and Uzbekistan is very important sector for the economy growth of these countries. However, poor management of natural resources and poor investment climate in these countries lead to disparities emergent between the countries in socio-economic terms. Nowadays, it is well recognized that foreign investment plays a vital role in the development of the oil and gas sector for such countries as Azerbaijan, Kazakhstan and Turkmenistan and significantly stimulates social and economic development of each of these countries. 1.2 Research Questions The presence of potentially vast oil and gas reserves is a part of the foreign investment attraction into the Caspian Sea region. On the other hand, it is important to note that while the quantity of proven reserves undoubtedly plays a significant role in estimating a region’s production and export potential, the other decisive factors for attraction foreign direct investment into this region are undeveloped market, cheap labour and cheap inputs and weak competition. This paper focuses on foreign direct investment strategy formulation process in the three energy-rich countries of the Caspian Region: Azerbaijan, Kazakhstan and Turkmenistan; and on what foreign direct investment strategy in each country are based. The study comparatively analysis the investment climate in three selected countries and more specifically it examines the foreign direct investment in oil and gas industry and performance by each country. The significant number of researches in regard to foreign direct investment mostly explains the investment strategy in the developed countries, when limited study has done on investment in less-developed countries or emerging countries. The selected countries Azerbaijan, Kazakhstan and Turkmenistan are transition countries and to a certain extent new participants in the competition to attract foreign investment. These countries can offer many potential advantages to foreign investor, especially in oil and gas sector of business. The research examines the investment climate in Azerbaijan, Kazakhstan and Turkmenistan and factors influencing the foreign investor’s decision-making in oil and gas sector. There is no much research which explores the determinants of investment in Azerbaijan, Kazakhstan and Turkmenistan, the stereotypes and perceptions that foreign investors have about these countries and what could be done to increase the foreign direct investment flow into these countries. This paper surveys these parts by investigating the multinational oil companies operating in Azerbaijan, Kazakhstan and Turkmenistan. The data from different energy agencies were gathered for comparative analysis of oil and gas data as well as foreign direct investment in different countries. This would not only let one to have a picture of various state strategies related to foreign investment, but could also provide the valuable outlook of the most advantageous approach for transition countries in doing business with foreign investors. 1.3 The Legal Status of Caspian Sea A large share of oil and gas reserves in Central Asia and Caucasus are thought to lie under he Caspian Sea. The question of the ownership of those resources, including the right to license and tax their development, is being argued by the Caspian littoral countries. The legal debate over the Caspian Sea can be tracked back to the 1921 Treaty to Moscow, reaffirmed in 1935, which declared that the inland Caspian Sea belonged to Russia (Kemp, 2000). Later Russia sent a note to the United Nations dated from 5th October 1994, where Russian Ministry of Foreign Affairs stated that the Caspian Sea should not be subject to the provisions of international maritime law (International Energy Agency, 1998). The importance of the application of international law is that a â€Å"sea† under the 1982 Law of the Sea Convention would be subject to separation into national zones for the development of its mineral resources. Russia stated that until all five of the Caspian littoral states (Azerbaijan, Russia, Kazakhstan, Turkmenistan, and Iran) came to a common decision on some other arrangement, the legal status of the Caspian Sea was subject only to the provisions of the more general (Treaty of Friendship between Iran and the USSR of 26 February 1921 and Treaty between Iran and the USSR on Trade and Maritime Navigation of 26 March 1940). Nevertheless, the ongoing legal uncertainty does not seem considerably decreased foreign investment in the Caspian Sea region. Advantageous geological prospects, with potential of a major oil and gas resource base, show significant motivations for companies to invest in this important producing region, preferably from the beginning of its development. 1.4 Current Production and Proven Reserves in Caspian Region Caspian oil presents a lot of opportunities for world oil markets and for the region itself (Energy Charter Secretariat, 2008): The appearance of new production sources would expand world oil supplies. Major quantities of Caspian oil would ease the pressure on the Persian Gulf production capacity and provide an additional hedge against oil supply disruptions Profits from oil exports could stimulate economic growth and improve the standard of living in the Caspian energy-rich counties. The availability of Caspian energy supplies in world markets will likewise improve the prospects for economic growth and political stability in the Caspian basin countries. Nowadays the Caspian Sea region is important, but not major supplier of crude oil to world markets, based upon estimates by British Petroleum (BP) and the Energy Information Administration (EIA). In 2005 the Caspian region produced 2.1 million barrels per day, or 2 per cent of total world production (see Table 1). Kazakhstan’s production rapidly increased since the late 1990s, accounted for 67 per cent and Azerbaijan for 22 per cent of regional crude oil production in 2005. The Caspian Sea region’s comparative contribution to world natural gas supplies is larger than that for oil. Gas production of 3.0 trillion cubic feet per year in 2005 was 3 percent of world production (Energy Information Administration, 2006). Turkmenistan is the largest producer; with production of 2.0 trillion cubic feet per year, it accounts for almost two-thirds of the region’s gas production. (see Figure 1). Unlike oil, the region’s proven reserves of natural gas are a higher proportion of the world total than is its natural gas production. The estimate of proven reserves of natural gas in the Caspian Sea region for the end of 2006 published by Energy Information Administration is 232 trillion cubic feet per year, which represents 4 per cent of the world total (see Table 2). Table 1Oil Production in the Caspian Sea Region 1. Proven reserves are defined by the EIA 2. Possible reserves 3. Other estimates (EIA/IEO 2006) 3.45 million barrels per day, (World Oil, 10 March 2004) 3 million ^Only Caspian area oil and gas production Source: Energy Information Administration (EIA): Caspian Sea Region: Survey of Key Oil and Gas Statistics and Forecasts, July 2006. Table 2Gas Production in the Caspian Sea Region ^Only Caspian area gas production Source: Energy Information Administration (EIA): Caspian Sea Region: Survey of Key Oil and Gas Statistics and Forecasts, July 2006. Figure 1 Gas Production in Caspian Sea region (1992-2004) Source: Energy Information Administration (EIA): Caspian Sea Region: Survey of Key Oil and Gas Statistics and Forecasts, July 2006. 1.5 Role of Oil and Gas in the Economic Development of Caspian Region The development of oil and gas resources in the Caspian region is mostly important for the development of economies in the Central Asian and Transcaucasia. In 1995 the energy sector’s share of gross domestic product (GDP) was an estimated 14.6 percent in Azerbaijan, 10.1 percent in Kazakhstan, 10.2 percent in Turkmenistan (International Energy Agency, 1998). Foreign investment attracted to the oil and gas sector in Caspian region could offer significant profits for the region’s governments and stimulate investment in other economic sectors. The attract foreign investment the host Governments should take discreet measures to ensure the development of an sufficient legal and administrative infrastructure, including institution building and personnel training, to handle the inflow of oil related revenues and to help ensure the countries’ efficient and equitable development. International Monetary Fund (2003) expressed concerns that unless regional governments introduce further administrative reforms, they risk being overwhelmed by new oil wealth. Particularly, corruption is a peril. Economic development motivated by foreign investment in the oil and gas industry helps to guarantee the financial independence of the Central Asian and Transcaucasian states. The transition to the market economy and the economic dislocations originated by collapse of Soviet Union left Azerbaijan, Kazakhstan and Turkmenistan without adequate funds to develop oil and gas resources. Governments of these countries are looking for private investment (mainly from foreign companies) that would play significant role in the development of oil and gas industry. Besides financial capital, a foreign investor brings a modern technology to local industry, including environmentally sound production techniques and modern management approaches. The Caspian Sea region countries are competing with each other for foreign investment. Oil and gas companies have a wide choice of where to make investment. The foreign investor considers the opportunities that offer the best financial returns. However, the investment climate is vital for company’s decision on where to invest. As a result, Kazakhstan and Azerbaijan took considerable steps in creating attractive investment climates. Kazakhstan concentrated on building a body of law applicable to all projects, while Azerbaijan focused primarily on modified production sharing agreements (International Monetary Fund, 2003). By the beginning of 1998, cumulative foreign direct investment in the oil and gas sectors of Central Asia and Transcaucasia had reached an estimated 3 billion of American dollars, nearly one third of which was placed in 1997. Future investment commitments in the region from contracts already signed total over 40 billion of America dollars (International Energy Agency, 1998). So far most foreign investment has been in Kazakhstan and Azerbaijan. Gas-endowed Turkmenistan started to attract foreign investment later than the others due to Government dictatorship and poor investment climate. Caspian oil development has gained a great deal of political and commercial momentum since the first foreign companies came there at the end of 1980s (Ruseckas, 2000). Since then the most important external factor influencing Caspian oil development is the price of oil. Principally if oil prices remain at present high level it is possible the more optimistic projects will be started. The Caspian Sea region could possibly produce approximately 4 million barrels per day by 2010. In any case, the Caspian Sea states require a stable legal regime to develop, produce, transport and market its natural resources. 1.5.1 Summary data on Azerbaijan Owing to extensive oil reserves, Azerbaijan is a major oil producer since the middle of the last century. Between 1990 and 1995 Azerbaijan’s gross domestic product dropped 58 percent (International Energy Agency, 1998). Oil production fell by only 25 percent mainly because of continuing oil product exports to neighbouring countries and an increasing use of heavy fuel oil in domestic power stations to alternative for imported gas. Due to the tightening of monetary and budgetary policies, the fiscal deficit dropped from 11.4 percent of gross domestic product in 1995 to less than 2 percent in 1996. In 2006 Azerbaijans real gross domestic product grew by 31 percent when the oil production in this region significantly increased. Azerbaijans anticipate for sustained economic growth is in its managing of large oil and natural gas resources in the Caspian Sea region, through effective management of the resulting revenue stream, and non-oil sector diversification (Energy Information Administration, 2006). During the beginning of transition most Azerbaijan onshore oil fields were in decline and required momentous new investment to develop large-scale offshore projects and to reconstruct existing fields. Since independence Azerbaijan signed several agreements with foreign oil companies. While maintaining full state ownership over energy companies, Azerbaijan was quick to invite foreign investors to assume a direct role in the development of its hydrocarbon reserves (Thompson, 2004). In 1992 most of the Azerbaijan oil sector assets were merged in two state oil companies – Azerineft and Azneftkimiya. The new merger was called the State Oil Company of the Azerbaijan Republic or SOCAR. While Government organizations handle production and exploration agreements with foreign companies, SOCAR is body to all international companies developing new oil and gas projects in Azerbaijan. After the first commercial oil flows through the Baku-Tbilisi-Ceyhan pipeline during summer 2006 and the increasing oil production from the Azeri-Chirag-Guneshli project, oil revenues are expected to contribute to a doubling of Azerbaijan’s gross domestic product by 2008 (Thompson, 2004). Energy Information Administration (2007) reports that though the oil sector represented around 10 percent of Azerbaijan’s gross domestic product in 2005, it is already projected to double to almost 20 percent of gross domestic product in 2007 (see Table 3). To manage the revenues, former President of Azerbaijan Heydar Aliyev formed a State Oil Fund in 1999, which is designed to use money obtained from oil-related foreign investment for poverty reduction, education and raising rural living standards. As of the end of 2006, the State Oil Fund reported assets of almost 2 billion US dollars, but the fund’s assets are expected to increase to 36 billion US dollars by 2010 (Energy Information Administration, 2006). Table 3Azerbaijan: Economy and Energy (in millions US dollars) 2003 2004 2005 2006 2007 2010 Oil Production (thousand barrels per day) 320 319 441 648 860 1,300 Oil Exports (thousand barrels per day) 215 204 314 521 721 N/A Foreign Direct Investment 3,285 3,556 1,680 -219 -4,750 476 FDI in Oil Sector 3,246 3,461 1,459 -573 -5,198 366 Oil Sector Revenue 886 946 1,337 2,921 5,272 19,417 As share of total rev (%) 42% 38% 39% 51% 59% N/A As share of total GDP (%) N/A N/A 9.8% 15% 19.7% 43.3% Oil Fund Assets 816 972 1,394 1,936 3,093 36,387 Source: Energy Information Administration: Short Term Energy Outlook, 2007; International Monetary Fund (IMF), Article IV Consultation, Staff Report, No 07/191, June 2007 1.5.2 Summary Data on Kazakhstan As it was the case in most other former Soviet Union countries, Kazakhstan’s first attempts at economic reform were effectively taken in response to Russias one-sided price reforms in 1992. After Kazak oil production had suddenly declined for two years in the end of 1993, inflation had out of control. The efforts to create an economic union with Russia and other former Soviet Union countries didn’t meet expectations of the Kazakh Government. Looking at the dynamic Asian economies as a model, the Kazakh Government turned to market style policies. However, the government increased hard budget constraints and restrictive monetary policies due to attempts to solve non-payment problem through state financing. The remained net debts after netting out inter-industry arrears were financed from Government budget and the central bank. In 1993 International Monetary Fund (IMF) granted Kazakhstan a one-year standby package. To maintain IMF collaboration and to stop the decline in gross domestic product, the Kazakh government implemented a second stabilisation program in 1995. But this time hard budget constraints and monetary policy were strengthened by excluding of government financing of net positions in inter-enterprise debts and retreating government guarantees for loans granted by foreign and domestic banks. In the middle of 1996, the International Monetary Fund approved an Extended Fund Facility (EFF) of 446 million US dollars for three years (IMF, 2003). According to International Monetary Fund (2003) the decision was made in light of a wide-ranging three-year reform programme submitted by the government, as well as the positive longer term prospects for production and exports of energy and non-ferrous metals. In 1996, Kazakhstan experienced its first positive economic growth since 1989. 1.5.3 Summary Data on Turkmenistan Preceding the collapse of the Soviet Union approximately 8 percent Turkmenistan’s gross domestic product was generated by gas exports to the rest of the USSR mostly to Belarus, Ukraine and the Caucasus. Another 5 percent of gross domestic product was earned from cotton exports. Gas and cotton exports continue to be used to cover the import of considerable amounts of grain and capital equipment from other former Soviet Republics. While estimates for the fall of gross domestic product between 1990 and 1995 vary depending on how adjustments to official gross domestic product are made, International Monetary Fund and European Bank of Reconstruction and Development agree on about -35 percent (IMF, 2003). This is much less than the 58 percent drop in Turkmen gas production. The rest of the economy is basically agricultural. The cotton industry has been less affected by the downfall of the Soviet Union. The government gradually liberalised some prices beginning in 1992. A presidential decree of 1995 removed price controls on all products except for about 50 items, including energy. The government introduced the manat as the national currency in 1993. In 1995 it unified the previously separate official and commercial exchange rates, which subsequently became determined by inter-bank auctions for foreign exchange. Between 1992 and 1995 the government compensated for the shortfall in revenue from taxes on gas production and exports by cutting expenditures and replacing subsidies to the economy with additional allocations of credit at largely negative interest rates. Controlled prices were adjusted repeatedly but declined in real terms for natural gas and for oil products through 1994. The share of gas related revenues in the central budget declined from 60 percent in 1992 to under 20 percent in 1995, which lowered the share of total budgetary revenue in GDP from 40 percent to 10 percent during this period. Due to drastic expenditure cuts in government wages and investment, including maintenance, the central budget deficit remained fairly stable over this period. It also helped that new excise taxes were introduced in 1995 on petrol (55 percent) and diesel (60 percent). This resulted in some recovery of government capital spending. The easy money policy was changed slowly in 1995 and 1996. During this time foreign exchange surrender requirements of state-owned enterprises to the Foreign Exchange Reserve Fund (FERF) were increased to 50 percent for gas and oil exports, and the money allocated directly to the central budget. Prior to that, this fund had been used to award credits to the economy, contributing to monetary expansion. In 1995 and 1996, bank credit allocation was reduced, real interest rates rose (due to credit auctions with deregulated interest rates), and reserve requirements for banks were increased. However, the pursuit of these policies was not smooth, in part due to the limited political autonomy of the Central Bank. Nevertheless, inflation decelerated by 50 percent towards the end of 1995 and is estimated to have been 445 percent in 1996, and 21 percent in 1997. Despite plummeting gas exports in recent years, Turkmenistan’s current account was slightly positive in 1994 and 1995, as long as arrears owed to the country are not taken into account. If such arrears are counted the 1995 balance swings from an estimated surplus of 54 million US Dollars to a deficit of 289 million US Dollars. The situation has probably continued to deteriorate due to weak gas exports. 2 Theoretical Frameworks 2.1 Overview of Foreign Direct Investment Theories There is variety of empirical studies on theoretical models explaining foreign direct investment (FDI) and its determinants. The various approaches from different disciplines such as economics, international business, organisation and management explain numerous characteristics of this phenomenon. The following dissimilar methods, explaining foreign direct investment as the location decision of multinational enterprises are mostly acknowledged in empirical literature on FDI: Ownership advantages as determinants of foreign direct investment (including monopolistic advantage and internalisation theory) based on imperfect competition models and the view that multinational enterprises (MNEs) are firms with market power (Hymer, 1960; Buckley and Casson, 1979; Kindleberger, 1969; Caves, 1971 for ownership advantages) Determinants according to the Neoclassical Trade Theory and the Heckscher-Ohlin model, where capital moves across countries due to differences in capital returns (for example Markusen et al, 1995,pp. 98-128; Aliber, 1970); Determinants of foreign direct investment in Dunning’s ownership-location-internalization (OLI) framework, which brought together traditional trade economics, ownership advantages and internalisation theory (Dunning, 1977; 1979); Determinants of foreign direct investment according to the horizontal FDI model or Proximity- Concentration Hypothesis (Krugman, 1983; Markusen, 1984; Ethier, 1986; Horstmann and Markusen, 1992; Brainard, 1993); Determinants of foreign direct investment according to the vertical FDI model, Factor-Proportions Hypothesis or the theory

marriage under fire :: essays research papers

Marriage under Fire We must remember what marriage is for and why God has given it the design he did. Marriage is to be between a man and a woman. This goes back to the beginning of time and why God created woman in the first place; â€Å"to provide a helpful mate for Adam; it was not good that man should be alone† (Genesis 1:18, 20-23). So we see that marriage was God's idea, not men. Knowing this, why in the world would we as Americans give that right to homosexual couples? Marriage is a blessing the God gave to man. In society today, many individuals have forgotten the importance of marriage. People have the tendencies to marry anyone at anytime because they do not see the significance of marriage and God. America was founded by God and his beliefs. The United States screams God everywhere from currency to the Pledge of Allegiance. Thus meaning, why would the United States, a place of God, allow something morally wrong and sinful? Some would argue that homosexual marriage is a step in the righ t direction for human rights. They believe it is an act of freedom. This is wrong because homosexual matrimony is everything God stands against. Citizens today do not have the right to try and add or delete any scriptures in the Bible to help themselves. God made the Bible to guide people in the right direction. People need to read the bible in order to understand the word, not to change it. Accepting homosexual marriage would only hurt America. It is a major threat to the structure of families. The country should not take lightly the meaning of marriage and on a higher note try and take it away. â€Å"Marriage is like a brand new car: once you take that car off of the car lot the value of it depreciates. Giving homosexuals the right to marry would depreciate the value of marriage and the pride it once carried will be no more. Not only does it do that, but more importantly it goes against God! We must preserve our values and morality for generations to come, for those children being born today and next year.† The marriage between two people of the same sex is against Gods beliefs, a threat to the structure of families and a sin to mankind. With dedication and perseverance people who oppose gay marriages can succeed in ending the debate of making it legal.

Coopertaive Learning

Cooperative learning is a teaching method used by educators in all grade levels, in all areas of curriculum, and there are many different ways that cooperative learning can be applied in the classroom. The use of cooperative learning centralizes on the goal of getting students to understand the material presented. Cooperative learning allows students to communicate their ideas with each other, brainstorm responses or ideas, and work together to solve problems. The importance of students becoming more involved with the learning process has been emphasized and needs to be implemented in classrooms around the globe (Ross, Seaborn, & Wilson, 2002). Multiple studies have been conducted on student-lead learning groups and the results are supportive of cooperative learning. â€Å"Research on cooperative learning is one of the greatest success stories in the history of educational research† (Slavin R. E. , Comprehensive approaches to cooperative learning, 1991). The enthusiasm for cooperative learning is widespread and this paper will explore the history and methods of cooperative learning. The strategy of cooperative learning was developed to reduce competition in American schools (Knowles, 1971). Knowles explains that in 1959 James Coleman sought to reduce competition in American schools, which he deemed to be a negative component to the education system (1971). Coleman conducted a two-year study of students at nine Midwest high schools and developed what he called a â€Å"climate of values† for the â€Å"adolescent society† in which he conducted his study. Based on his findings and research, Coleman suggested that instead of encouraging competition in a classroom setting, which he stated he felt impedes the process of education, schools should introduce a more cooperative approach to instruction (Knowles, 1971). Many researchers have since elaborated on the work of James Coleman. Currently, some of the most published researchers in the field are as follows: Dr. Robert Slavin, Dr. Spencer Kagan, David and Roger Johnson. Each of these researchers has developed theories and strategies that can be used to effective implement cooperative learning. Dr. Robert Slavin suggests cooperative learning for enhancing student achievement focuses on two important elements: group goals and individual accountability (Slavin R. E. , Synthesis of research on cooperative learning, 1991). Dr. Slavin reported that when group goals and individual accountability are used, achievement effects of cooperative learning are consistently positive (Slavin R. E. , Synthesis of research on cooperative learning, 1991). Dr. Slavin noted that positive results from the implementation of cooperative learning could be found at all grade levels, in all major subjects, and in rural, urban and suburban schools (Slavin R. E. , Synthesis of research on cooperative learning, 1991). Dr. Slavin goes on to state that the effects of cooperative education are equally positive for all levels of achievers (Slavin R. E. , Synthesis of research on cooperative learning, 1991). It is also important to mention that Dr. Slavin has found that the positive effects of cooperative learning have been found in areas such as the following: self-esteem, intergroup relations, acceptance of accountability, handicapped students, attitudes toward school and the ability to work cooperatively (Slavin R. E. , Synthesis of research on cooperative learning, 1991). Dr. Spencer Kagan’s model of cooperative learning advocates for two basic principles. Dr. Kagan states, â€Å"The world is not just competitive and in some important respects is becoming less so; I do not advocate exclusive use of cooperative learning methods, but rather a healthy balance of cooperative, competitive, and individualistic classroom structures to prepare students for the full range of social situations† (Kagan, 1999). Dr. Kagan’s structures stress positive interpersonal peer relationships, equality, self-esteem and achievement. Dr. Kagan reported that cooperative learning teaches empathy and an understanding of those who are different from oneself by building ethnic relation between students. In addition, Dr. Kagan has credited cooperative learning with increasing students’ higher level thinking skills (Kagan, 1999). Dr. Kagan stresses his ideas by stating, â€Å"At an accelerating rate we move into a rapidly changing information-based, high -technology, and interdependent economy. Along with the traditional role of providing students with basic skills and information, increasingly schools must produce students capable of higher-level thinking skills, communication skills, and social skills† (Kagan, 1999). David and Roger Johnson have identified five basic elements of cooperative learning. Johnson and Johnson state these pillars of cooperative learning to be the following: individual accountability, positive interdependence, face-to-face promotive interaction, social skills and group processing (Johnson & Johnson, Making cooperative learning work, 1999). Johnson and Johnson have reported that it is critical for teachers to understand the five basic elements of cooperative learning. Johnson and Johnson state that understanding and developing the five elements, â€Å"†¦allows teachers to (a) adapt cooperative learning to their unique circumstances, needs, and students, (b) fine tune their use of cooperative learning, and (c) prevent and solve problems students have in working together (Johnson & Johnson, Making cooperative learning work, 1999). Johnson and Johnson also stress that cooperative learning ensures all students are meaningfully and actively involved in learning, which will limit disruptive, off-task behaviors in the classroom. Cooperative learning is thought of as a versatile method of instruction that can be used in a variety of ways. Cooperative learning groups can be implemented to teach specific topic, to ensure knowledge and comprehension of information presented, or to provide long-term support for academic proce ss (Slavin & Madden, 2001). Formal cooperative learning groups are created to achieve a specific purpose, have fixed members and can have duration of one class period or several weeks. Johnson and Johnson describe formal cooperative learning groups as consisting of students working together to achieve a shared learning goal (Johnson & Johnson, Making cooperative learning work, 1999). Informal cooperative learning groups are typically temporary and do not have fixed members. Johnson and Johnson state that, â€Å"During a lecture, demonstration, or film, informal cooperative learning can be used to (a) focus student attention on the material being learned, (b) set a mood conductive to learning, (c) help set expectations as to what will be covered in a class session, (d) ensure that students cognitively process material being taught, and (e) provide closure to an instructional session. † (Johnson & Johnson, Making cooperative learning work, 1999). Cooperative based groups are long term, heterogeneous, and consist of three to four members. Johnson and Johnson describe cooperative based groups as base groups. Johnson and Johnson state, â€Å"Base groups give the support, encouragement, and assistance each member needs to make academic progress and develop cognitively and socially in healthy ways. Base groups meet daily in elementary school and twice a week in secondary school. They are permanent and provide the long-term caring peer relationships necessary to influence members consistently to work hard in school (Johnson & Johnson, Making cooperative learning work, 1999). In order for these types of cooperative learning group to be successful, it is essential for the five basic elements identified by Johnson and Johnson to be included. The basic elements are often referenced by the acronym â€Å"PIGS FACE†. If these elements are not incorporated then cooperative learning is not taking place. The five basic elements are outlined below with a description following each term. Positive interdependence is the percept ion gains that of individuals or groups are linked, so that one cannot succeed unless everyone is successful (Kagan, 1999) (Johnson & Johnson, Making cooperative learning work, 1999). Individual accountability exists when each individual group member is assessed and results are given back to the student and the group. Individual accountability tests for understanding from individuals and prevents one member of the group from performing all the work (Johnson & Johnson, Making cooperative learning work, 1999). Group processing exists when group members converse on the group achievement and individual achievement of goals. Group processing allows students to work through and difficulties relating to each other or the achievement of the group (Johnson & Johnson, Making cooperative learning work, 1999). Social skills are the skills cooperative education groups need to develop to effectively work together and maintain the group (Slavin & Madden, 2001). It fosters the growth of social skills that are needed to succeed in the classroom, workplace and community in individuals that are socially unskilled (Orlich, Harder, Callahan, Trevisan, & Brown, 2010). Face-to-face promotive interaction promotes each group member’s success through helping, assisting, supporting, and encouraging each member to be successful (Johnson & Johnson, Making cooperative learning work, 1999). Once the five basic elements of cooperative learning have been addressed, the teacher can implement cooperative learning strategies in the classroom. There are wide varieties of cooperative learning strategies and a few are described below. Think-Pair-Share as described by Dr. Slavin, â€Å"This is a four-step discussion strategy that incorporates wait time and aspects of cooperative learning. Students and teachers learn to listen while a question is posed, think of a response, pair with a neighbor to discuss responses, and share their responses with the whole class. (Slavin R. E. , Comprehensive approaches to cooperative learning, 1991). Jigsaw as described by Dr. Kagan, â€Å"Students are divided into competency groups of four to six students, each of which is given a list of subtopics to research. Individual members of each group then break off to work with the â€Å"experts† from other groups, researching a part of the material being studied, after which they return to their starting body in the role of instructor for their subcategory. (Kagan, 1999) Student Team Achievement Divisions is a teaching method that is made up of five major components including a whole group presentation, student practice teams, quizzes on the presented information, setting goals for improved achievement levels, and team recognition based on performance (Slavin R. E. , Comprehensive approaches to cooperative learning, 1991). Roundtable is a strategy that can be used for brainstorming, reviewing or practicing while fostering teambuilding. There are two variations of roundtable that a teacher and use in the classroom. In sequential form, students are in groups of three or more with one-piece of paper and one writing instrument. The teacher poses a question that can have multiple answers. Students take turns writing their answer on the paper and passing the paper around the group. When time is called, the group with the most answers listed is recognized. In simultaneous form each student starts with a piece of paper, writes an answer and passes the paper, so multiple papers are being passed at once (Kagan, 1999). The three-step interview is a structured group activity. Students take turns being the interviewer and interviewee. Pairs then join to form groups of four. Students take turns introducing their partners and share what they learned from their partners (Kagan, 1999). Although aforementioned strategies are imperially based, there is a discussion-taking place about the value of cooperative learning. Most educators agree that cooperative learning celebrates diversity by allowing students to work with all types of people and allows students to acknowledge individual differences (Ross, Seaborn, & Wilson, 2002). Research has shown that cooperative learning can benefit student’s interpersonal development and provide more opportunities for personal feedback (Ross, Seaborn, & Wilson, 2002). In addition, researchers have found that cooperative learning actively engages students in learning and there is a variety of methods available for teachers to use (Johnson, Johnson, & Stanne, Cooperative learning methods: A meta-analysis, 2000). Some critics of cooperative learning suggest that group work is an avoidance of teaching. They stress that cooperative learning places the burden of being responsible for each other’s learning on group members (Ross, Seaborn, & Wilson, 2002). Some research has shown that lower achieving students could potentially fall behind due to a passive nature or lack of self-confidence in the group. If high achieving students dominate group activities and discussions, lower achieving students might feel uncomfortable and isolated from the group, which could lead to the learning opportunity passing by them (Ross, Seaborn, & Wilson, 2002). Johnson, Johnson and Stanne summarize the research on cooperative learning in this way, â€Å"Knowing that cooperative learning can significantly increase student achievement when properly implemented does not mean, however, that all operationalizations of cooperative will be effective or that all operationalizations will be equally effective. † (Johnson, Johnson, & Stanne, Cooperative learning methods: A meta-analysis, 2000) In conclusion, cooperative learning is an instructional approach that has been shown to promote a variety of positive cognitive, affective, and social outcomes. The intent of cooperative learning is to foster academic achievement through student discussions, learning from each other and dividing tasks to align with student strengths. I feel that cooperative learning gives students an opportunity to establish a group culture and work within the constraints of that culture. I believe that students will carry this cultural paradigm into adulthood. I also believe that cooperative learning promotes diversity and cross-cultural friendships. Through cooperative learning, I believe schools can play a significant role in reducing racism, prejudice and discrimination in the larger society.

Defining Disability and Societies Stereotypes Essays

Defining Disability and Societies Stereotypes Essays Defining Disability and Societies Stereotypes Essay Defining Disability and Societies Stereotypes Essay Society is always searching for a way to define or generalize what constitutes being disabled. Some would say disability is nothing out of the normal and that one’s who are disabled are still on a level playing field with abled persons. In contrast though, some argue that being disabled is something that totally hinders your life and will never allow you to fit in with the â€Å"social norm†. The focus of this paper is not to define disability, but to use educated points of view to help better an understanding of what disability may be, in order to form one’s own definition of being disabled. Information from three different authors will be used to help better the understanding of what society views as disabled and what their contributions to the stereotypes created are. Colin Low, a blind filmmaker, article called Some Ideologies of Disability will be used. In addition, Disability and Representation written by Rosemarie Garland-Thomson, who is a specialist in disability studies, will be used to both agree and argue points involving the disabled. Finally, a TED talk discussing prosthetic legs, given by Aimee Mullins, who is a leg amputee as well as a former Paralympic athlete will be used to state her self-imposed views. Through comparing and contrasting along with analyzing these authors uses of rhetorical appeals, including pathos and ethos, and the materials they use to defend their information, hopefully a clearer definition or idea of what disability is, begins to form. Throughout the course of all three articles, the authors use pathos to help support what they see as defining disability. In Low’s article he uses an excerpt from the play â€Å"Children of a Lesser God† where he uses lines from a deaf characters script in which she speaks, â€Å"Until you let me be an individual, an â€Å"I†, just as you are you will never truly be able to come inside my silence and know me† (Low,110). Similarly, Garland- Thomson uses pop culture references when expressing her thoughts on the subject. She uses examples such as Finding Nemo, A Beautiful Mind, and Superman, all who have some form of disability. In both cases, the authors are reminding the reader that even famous people or characters, who many people may see as above normal society or as heroes, can even have disabilities too. This provokes emotion from the reader because like stated, these are people or characters that society often looks up to and like both writers are trying to say, their disabilities do not make them abnormal, and if their disabilities do dictate their life they do so in a positive way, unlike the negative stereotype that society has created. When Mullins uses pathos in her speech she refers to disabilities as being able to be looked at as being â€Å"super-abled† if it wasn’t for the stereotypes already created by society. Mullins states that whenever children approached her they looked at her with a complete innocent state of mind that has yet to be altered because of society. Low supports the discrimination by society that Mullins discusses in her speech when he states that in the pseudo-radical observation of the disabled they view them as being defined by their disability. They believe that both their individuality and humanity have been lost and that the fact that the disabled get treated so different from other humans leaves society with no choice other than to be discriminates (Low, 111). The emotion drew out in these examples leaves the reader questioning if they in fact discriminate against the disabled? Do they perform the generous acts for someone that is disabled in a purely genuine matter or does the idea of their disability sway the person’s personality to pity? The materials used amongst the three authors to support their ideas of discrimination of the disabled in society along with trying to define disability both agree and contradict with each other. For example, Low uses a story about a giraffe and an elephant. The giraffe invites the elephant over to his house, which is accustomed for giraffes, so when the giraffe begins discriminating against the elephant for being too heavy and too wide, the elephant replies that he is not the problem to the house, the house is the problem to him. This conveys the message that disabilities are what you make them. To one person missing a leg could very well serve as a huge disadvantage. To the person missing the leg though, with the adjustments they learn to make, it could very well be an advantage to them. This point is again supported by Mullins’ material when she says that her using a prosthetic limb does not have to be looked at a loss but rather her being able to be creative and serve as a symbol of power to use that space to generate whatever she pleases. Low’s materials that are used evolve around the four ideologies of disability that he discusses. The pseudo-radical approach that he examines is that, generally, disabled people have a very negative experience with their life. This idea is both supported and disregarded in the other articles. Garland- Thomson supports the pseudo- radical view when she includes the magazine shots in her writing and then further goes on to say that they present disability as shameful and disposable, both negative things. Where as, in Mullins’ speech, she talks about how being disabled has pretty much created the successful life she has. One can assume that if it weren’t for her disability she would not have had the inspiration, or at least been as passionate about creating prosthetic legs, as what she is today. The materials used by these authors all give very good information for the reader to begin forming their definition of disabled. At the same time though, the information presented can make you think twice about what disability is. Reading these articles, from educated and credible individuals, and having them not firmly be able to state what they believe constitutes disability supports the idea that it is something very difficult to do. As stated at the end of the last paragraph, the authors and their information that this paper has been based off of are of credible sources. Using ethos the credibility of these authors can be revealed. A very prominent factor to Mullins reliability is that she has the first hand experience at the idea trying to be defined; she is disabled. She has been through the stereotypes and discrimination that is stated to be so obviously found in society. The realization that she has overcome the adversity of her disability to become a successful person helps support the argument that maybe disabilities are not as bad as they are made out to be. Garland-Thomson has specified her studies in the area of disabilities. This is not simply just an area that she is interested in, but also one that she has made a career and a way of life out of. She has written many books and has seen a wide variety of opinions, facts, and studies, all focused on the disabled. Similar to Mullins, Low is also experiencing the first hand effects of disability, as he is blind. He pursued a career in filmmaking amongst other things. This defies the ideas of disabilities hindering someone’s life as that he makes movies without the ability to see. These authors being credible makes it easier for the reader to trust and accept their opinions that are stated throughout the articles. In addition, allowing the reader to use their ideas to contribute to their forming definition of being disabled. In conclusion, the analysis of these articles has better helped reveal some of the information and opinioned needed when attempting to define the disabled. Society has greatly influenced the meaning of disabled through the stereotypes formed and explained in the three author’s pieces. When the authors use their emotional appeal of ethos throughout their writing it is helpful to induce the reader’s emotions and let them to connect, enabling them to form a personal definition of disability. In addition, the way that the author’s proclamations are strengthened by the materials and examples used, add to the clarity of the explanation of the disabled. The manner in which the three articles presented in this paper both agree and disagree with each other support the idea that disability may never clearly be defined. For as long as we have known, one’s disability may be someone else’s strength. Forming a clear and widely accepted definition of what being disabled constitutes can not and should not be able to be fully answered after this paper. The project of this writing was to get a mind thinking of some of the discrimination that they may take place in themselves and if they in turn agree or disagree with the facts stated in this paper. Studies will continue to be done on the disabled along with society’s point of view on the subject. Similarly to how Low concludes his paper, I believe that the next step needing to be taken to accommodate the disabled into society is for both parties to meet halfway. Society and the disabled must accept that being disabled is both similar and different to someone of normal status in society. This concept may take years more to begin to form or function properly but when it begins to do so discrimination of the disabled will lessen therefore clearing the way for a more distinct and accepted definition of disability. Garland-Thomson, Rosemarie. Disability and Representation. 2nd ed. Vol. 120. N. p. : Modern Language Association, 2005. 522-27. Print. Low, Colin. Some Ideologies of Disability. Journal of Research in Special Educational Needs 6. 2 (2006): 108-11. Print. Mullins, Aimee. Its Not Fair Having 12 Pairs of Legs. TED Talk. Speech.

Great Barrier Reef essays

Great Barrier Reef essays The Great Barrier Reef is the worlds biggest coral reefs in the world. Its so huge, at 2,000 km (1,200 miles) long, that it can be seen from the Moon! Its taken 18 million years for the Great Barrier Reef to get to the size it is today. The Reef consists of 2,900 (geocities.com) separate reefs it also has an area of around 344,000 km ². North Queensland is known for its natural beauty. The Great Barrier Reef is considered a great vacation spot. Its great for diving and snorkelling. There are many resorts all over small islands. It is quite easy to become engulfed in the whole reef experience. It's colourful, exotic, and strange sea life make the Great Barrier Reef very unique and special. The Great Barrier Reef is made up of accumulated skeletal remains of zillions of marine polyps from the Coelenterata family. New polyps continue to grow on the lime-based structure and are continually added to the reef. However, coral needs a number of preconditions to ensure healthy growth. The water temperature must not drop below 63.5 degrees Fahrenheit, sunlight must be able to reach the coral, and the water must be clean and salty. Although sadly, this gorgeous reef is slowly being destroyed by both animal and human faults. Such faults are carelessness like walking on the coral without a care, dropping anchors on the coral, dragging diving gear over them, breaking them and taking them home as souvenirs and knocking and grounding boats on them. But these are just a few examples of how humans treat the reef. Also things like pollution such as sewerage, oil spills, fertilisers and pesticides damage the reef, it spreads though the water then kills off living creatures. Prawn trawling destroys up to ten times more creatures than are actually harvested. Endangered marine turtles are still dying in nets, huge areas of seafloor are laid waste by destructive trawl gear. Millions of tonnes of sediment and chemicals pour into the ree...

Discuss strategies these business owners used to manage their working Essay

Discuss strategies these business owners used to manage their working capital - Essay Example lan Lutchman, the president and co-owner of Finagle Bagel and his wife Laura Trust, also the president and co-owner of owners of the company, use to manage their working capital. Allan reveals that they formed the company in October 1998 after both of them quit their previous jobs to venture into the food industry (WileyPlus, 2014). Trust starts by noting that as much as they ventured in a business they knew nothing about, they were sure that venturing in the food industry was a sound investment. As the two proceed, they begin to acknowledge that maintaining the right cash flow is critical for business success. Therefore, since they started the business by obtaining a loan the two business partners had to ensure that the business had enough liquid cash to meet its short-term obligations. The first working capital management that the partners used was ensuring that a large part of their revenue comes in the form of cash. Allan reveals that more than 50% of their income in the retail business is in cash form while the rest is in credit form (WileyPlus, 2014). The credit cash also come in the next 24 hours. Accordingly, having most sales in the retail in the form of cash has helped the business maintain enough cash flow, which it can use to service its short-term obligations and operating expenses easily and without any problems. In fact, Allan reveals that, since all the revenues come in immediately, they do not have to wait for 30 days to pay their bills (WileyPlus, 2014). Se condly, Trust, the co-partner in the business says that the business also tries to negotiate for a longer trade credit period. She asserts that they negotiate for a longer trade credit period with their suppliers to allow them time to get paid for the products they sell on credit. In fact, Trust reveals that they have been lucky to work with flexible vendors who allow them decent terms to get them paid back for the credit they take. Additionally, Allan states that they try to manage their

Proposal Term Paper Example | Topics and Well Written Essays - 1000 words - 1

Proposal - Term Paper Example Need for Healthcare Coverage Congratulations on the adoption of a comprehensive Employee Assistance Program for your organization. Employee Assistance Programs are quite popular and are the need of the hour, as the cost of medical coverage is becoming increasingly out of reach for the majority of Americans- especially among the middle class, the poorer classes and the homeless sections of society. Many of us have been the victims of the last financial crisis, losing homes, cars, jobs and even the chance to lead a proper lifestyle. All in all, the need for proper and complete healthcare coverage cannot be denied in today’s workplace. Healthy employees are the boon of any workplace; they can function at the peak of their performance and make a great difference to productivity and the bottom line. At the other end of the spectrum, how many of us have been affected by bouts of ill health that keep us from performing at our best on any given workday. Even the common cold or a naggi ng headache or worst of all an excruciating toothache or earache can make us take the day off and stay at home in pain and discomfort. So clearly, healthcare coverage has many benefits not only for the employees but also for the organization. Key Elements of the Employee Assistance Program It is worthwhile to remember a fundamental truth: an employee can only be said to be functioning at his full capacity if he is in sound health physically, mentally and psychologically. The stress of modern city and corporate life has undoubtedly left its mark on us all, and the pressure of working in a corporate setup often complicates matters especially if there is a lot of competition. Employees have been known to do everything from an excess of apple polishing to working beyond normal limits to gain the support of their bosses. Unfortunately some even take drugs and opiates to enhance productivity, which is unethical and can have disastrous consequences for the health of these employees, as wel l as the reputation of the organization in the long run. Consider what can happen if a disgruntled employee decided to get trigger happy in the office to vent out his anger of not being promoted, or being overlooked in terms of certain perks. This would amount to a public relations disaster and must be avoided. Knowing this, Aetna Insurance has provided for rehabilitation and care in the event of even such an instance of drug abuse. Sometimes drug taking for recreational use can turn into an addiction like smoking and alcoholism. Drug taking has even ruined the careers of such celebrities like Lindsay Lohan and Robert Downey Jr. So let Aetna help you to avoid any drug related mishap or control its repercussions by virtue of access to our 24 hour clinics that have been established in every major American city as well as our online support facility that never stops, any time of the day or night. History of the Company Aetna Insurance Company has been providing healthcare to Americans like you and me for over 150 years and running. The company was started way back in 1853 in Hartford, Connecticut (www.aetna.com) and is today one of the nation's leading providers of health care including pharmacy, dental, disability insurance, group life and employee benefits. The company has a variety of plans and programs to fit your pocket and specific coverage needs. There are also a variety of plans for small, medium and large scale organizations with differing levels of