The Political Economy of International Trade

The Political Economy of International Trade Chapter Outline OPENING CASE: Why Are Global Food Prices Soaring? INTRODUCTION INSTRUMENTS OF TRADE POLICY Tariffs Subsides Country Focus: Subsidized Wheat Production in Japan Import Quotas and Voluntary Export Restraints Local Content Requirements Administrative Polices Antidumping Policies Management Focus: U. S. Magnesium Seeks Protection THE CASE FOR GOVERNMENT INTERVENTION Political Arguments for Intervention Country Focus: Trade in Hormone-Treated Beef Economic Arguments for Intervention THE REVISED CASE FOR FREE TRADE Retaliation and Trade War Domestic Politics DEVELOPMENT OF THE WORLD TRADING SYSTEM From Smith to the Great Depression 1947-1979: GATT, Trade Liberalization, and Economic Growth 1980-1993: Protectionist Trends The Uruguay Round and the World Trade Organization WTO: Experience to Date The Future of the WTO: Unresolved Issues and the Doha Round Country Focus: Estimating the Gains from Trade for America FOCUS ON MANAGERIAL IMPLICATIONS Trade Barriers and Firm Strategy Policy Implications SUMMARY CRITICAL THINKING AND DISCUSSION QUESTIONS CLOSING CASE: Agricultural Subsidies Learning Objectives 1. Describe the policy instruments used by governments to influence international trade flows. 2. Understand why governments sometimes intervene in international trade. 3. Articulate the arguments against strategic trade policy. 4. Describe the development of the world trading system and the current trade issues. 5. Explain the implications for managers of developments in the world trading system. Chapter Summary This chapter begins with a discussion of the six main instruments of trade policy, including tariffs, subsidies, import quotas, voluntary export estraints, local content requirements, and administrative policies. This section is followed by a discussion of the merits of government intervention into international trade. The author provides a balanced view of this difficult issue. The second half of the chapter focuses on the development of the global trading system. A historical context is provided, along with a view of the global trading system as it exis ts today. The author acquaints the reader with the General Agreement on Trade and Tariffs (GATT) and the World Trade Organization. Opening Case: Why Are Global Food Prices Soaring? Summary The opening case examines why global food prices are rising significantly. For more than two decades, improvements in agricultural productivity and output have contributed to lower food prices, but in 2007, the price of wheat was double its price of just a few months earlier, and the price of corn had risen some 60 percent. Two explanations for the phenomenon are increased demand, and the effects of tariffs and subsidies for bio-fuels. Discussion of the case can revolve around the following questions: QUESTION 1: Food prices have risen dramatically since 2007. Reflect on the reasons for the price increase, and discuss the implications of higher prices for consumers in developed and developing countries. ANSWER 1: For decades, consumers have enjoyed the benefits of increased productivity and output in the global food industry. In 2007, however, everything changed. The price of wheat reached its highest point ever, and the price of corn rose 60 percent over its 2006 price. Two factors contributed to this situation. The first was the increased demand for food from China and India. The second factor involved tariffs and subsidies for bio-fuels. Farmers in the European Union and in the United States are currently the recipients of subsidies for the production of crops used in bio-fuels. As a result, land that might be used for growing food is being converted to bio-fuel crops, pushing up prices on food. While some experts believe that sugar cane may be a better product for bio-fuel production than corn, tariffs on imported sugar cane effectively are keeping the crop out of the market. While all consumers are feeling the pain of higher food prices, the situation is especially dire for consumers in poor countries where calorie intake could be reduced by as much as -8 percent by 2020. QUESTION 2: How has demand for bio-fuels affected the price of food? What are the implications of this trend? Reflect on the role of government in pushing prices up. What role do tariffs and subsidies play in the situation? In your opinion, should the governments of the United States and the European Union bear any responsibility for bringing food prices back down? ANSWER 2: In an effort to slow global warming, both the European Union and the United States have adopted policies designed to increase the production of ethanol and bio-diesel. The policies involve providing subsidies to farmers. The net effect of the subsidies is to encourage farmers to produce less food, and more crops that can be used in bio-fuel production. The situation is exacerbated by high tariffs on alternative products that can be used for bio-fuel production – particularly sugar cane. Most students will recognize that the combined effect of the subsidies and tariffs are creating a difficult situation for consumers, while at the same time protecting producers. Some students may note the irony of the situation. Consumers, hit by higher prices at the pump are putting more pressure on companies to develop cheaper and more environmentally friendly sources of energy, but in doing so are actually contributing to higher prices at the grocery store. Some students may wonder whether it makes more sense to consider non-food related sources of energy. Honda Motors is currently developing a car that runs on Teaching Tip: To expand this discussion, consider {http://www. businessweek. com/bwdaily/dnflash/content/may2008/db20080513_317940. htm? chan=search}, {http://www. usinessweek. com/globalbiz/content/may2008/gb20080520_439607. htm? chan=search}, and {http://www. businessweek. com/magazine/content/08_19/b4083026413508. htm? chan=search}. Video Note: There are two iGlobes directly related to this case. The first is Supply, Price of Food Increase Hardship for World’s Poor, and the second is Agricultural Problems Lead to Farmer Suicides in India. Chapter Outline with Lecture Notes, Video Notes, a nd Teaching Tips INTRODUCTION A) This chapter explores the political reality of international trade. Free trade refers to a situation where a government does not attempt to restrict what its citizens can buy from another country or what they can sell to another country. While many nations are nominally committed to free trade, they tend to intervene in international trade to protect the interests of politically important groups. B) The major objective of this chapter is to describe how political realities have shaped, and continue to shape, the international trading system. INSTRUMENTS OF TRADE POLICY A) In this section, the text reviews seven main instruments of trade policy. These are: tariffs, subsidies, import quotas, voluntary export restraints, local content requirements, antidumping policies and administrative policies. Tariffs B) A tariff is a tax levied on imports (or exports) that effectively raises the cost of imported (or exported) products relative to domestic products. Specific tariffs are levied as a fixed charge for each unit of a good imported, while ad valorem tariffs are levied as a proportion of the value of the imported good. The important thing to understand about a tariff is who suffers and who gains. The government gains, because the tariff ncreases government revenues. Domestic producers gain, because the tariff affords them some protection against foreign competitors by increasing the cost of imported foreign goods. Consumers lose since they must pay more for certain imports. C) Thus, tariffs are unambiguously pro-producer and anti-consumer, and tariffs reduce the overall efficiency of the world economy. Subsidies D) A subsidy is a government payment to a domestic producer. By lowering costs, subsidies help domestic producers in two ways: they help producers compete against low-cost foreign imports and they help producers gain export markets. However, many subsidies are not that successful at increasing the international competitiveness of domestic producers. Moreover, consumers typically absorb the costs of subsidies. Country Focus: Subsidized Wheat Production in Japan Summary This feature explores the subsidies Japan continues to pay its wheat farmers. Tens of thousands of Japanese farmers continue to grow wheat despite the fact that the wheat grown in North America, Argentina, and Australia is far cheaper and of superior quality. The Japanese farmers stay in business thanks to the hefty subsidies paid by the Japanese government. As a result, wheat prices in Japan are substantially higher than they would be if a free market were allowed to operate. Suggested Discussion Questions 1. Who are the winners and who are the losers from Japanese wheat subsidies? Discussion Points: Students will probably recognize that, as is usually the case with protectionist measures, the subsidies Japan pays its wheat farmers benefit the farmers, but cost the average consumer in the form of higher wheat prices. In fact, in 2004, Japanese consumers covered $700 million in subsidies! The subsidies also limit imports of wheat, which negatively affects foreign wheat farmers. 2. Why does Japan continue to subsidize its wheat farmers when cheaper wheat is readily available in international markets? Discussion Points: Thanks to subsidies, wheat prices in Japan are between 80 and 120 percent higher than they are in world markets. In fact, if the subsidies were eliminated, Japanese wheat production would cease entirely. However, at least for now, because politicians count on the votes of the wheat farmers, there appears to be no plan to end the subsidies. Teaching Tip: To extend this discussion, consider discussing Japan’s role in the production of rice. For more on this, go to {http://www. businessweek. com/globalbiz/content/may2008/gb20080522_132137. htm? chan=search}, and {http://www. businessweek. com/globalbiz/content/may2008/gb20080522_132137_page_2. htm}. Import Quotas and Voluntary Export Restraints E) An import quota is a direct restriction on the quantity of some good that may be imported into a country. A tariff rate quota is a hybrid of a quota and a tariff where a lower tariff is applied to imports within the quota than to those over the quota. A voluntary export restraint is a quota on trade imposed by the exporting country, typically at the request of the importing country’s government. F) While import quotas and voluntary export restraints benefit domestic producers by limiting import competition, they raise the prices of imported goods. The extra profit that producers make when supply is artificially limited by an import quota is referred to as a quota rent. Local Content Requirements G) A local content requirement demands that some specific fraction of a good be produced domestically. As with import quotas, local content requirements benefit domestic producers, but consumer face higher prices. Administrative Policies H) Administrative trade polices are bureaucratic rules that are designed to make it difficult for imports to enter a country. The effect of these polices is to hurt consumers by denying access to possibly superior foreign products. Antidumping Policies I) Dumping is variously defined as selling goods in a foreign market below their costs of production, or as selling goods in a foreign market at below their â€Å"fair† market value. Dumping is viewed as a method by which firms unload excess production in foreign markets. Alternatively, some dumping may be the result of predatory behavior, with producers using substantial profits from their home markets to subsidize prices in a foreign market with a view to driving indigenous competitors out of that market. Once this has been achieved the predatory firm can raise prices and earn substantial profits. J) Antidumping polices (also known as countervailing duties) are policies designed to punish foreign firms that engage in dumping. The ultimate objective is to protect domestic producers from â€Å"unfair† foreign competition. Management Focus: U. S. Magnesium Seeks Protection Summary This feature explores the dumping charged levied by U. S. Magnesium against Chinese and Russian producers. According to U. S. Magnesium, the sole American producer of magnesium, Russian and Chinese producers were selling magnesium significantly below market value in an effort to drive U. S. Magnesium out of business. The company failed a complaint with the International Trade Commission (ITC) which ultimately ruled in favor of U. S. Magnesium. Suggested Discussion Questions 1. What is dumping? Were Chinese and Russian producers guilty of dumping? How did U. S. Magnesium justify its claims against Russian and Chinese producers? Discussion Points: Dumping is defined as selling goods in a foreign market below the cost of production, or below fair market value. In 2004, U. S. Magnesium claimed that China and Russia had been dumping magnesium in the United States. The company noted that in 2002 and 2003, magnesium imports rose, and prices fell. While the ITC ruled in favor of the American company, some students might question whether the fact that the Chinese could sell their product at low prices might simply reflect the country’s significantly lower wage rates. . What does the ITC’s ruling mean for American consumers of magnesium? In your opinion, was the ruling fair? Discussion Points: The ITC ruled in favor of U. S. Magnesium finding that indeed China and Russia had been dumping their product in the United States. Fines ranging from 50 to 140 percent on imports were imposed against China, and 19 to 22 percent on Russian com panies. Most students will note that while the ITC’s decision is a good one for U. S. Magnesium and its employees. for consumers, the ruling means magnesium prices that are significantly higher than those in world markets. Students will probably argue that this result is unfair, and should be revisited. Teaching Tip: U. S. Magnesium’s web site is available at {http://www. usmagnesium. com/}. THE CASE FOR GOVERNMENT INTERVENTION A) In general, there are two types of arguments for government intervention, political and economic. Political arguments for intervention are concerned with protecting the interests of certain groups within a nation (normally producers), often at the expense of other groups (normally consumers). Economic arguments for intervention are typically concerned with boosting the overall wealth of a nation (to the benefit of all, both producers and consumers). Political Arguments for Intervention B) Political arguments for government intervention cover a range of issues including protecting jobs, protecting industries deemed important for national security, retaliating against unfair foreign competition, protecting consumers from â€Å"dangerous† products, furthering the goals of foreign policy, and protecting the human rights of individuals in exporting countries. Protecting Jobs and Industries C) The most common political reason for trade restrictions is â€Å"protecting jobs and industries. † Usually this results from political pressures by unions or industries that are threatened by more efficient foreign producers, and have more political clout than the consumers who will eventually pay the costs. National Security D) Protecting industries because they are important for national security is another argument for trade restrictions. The U. S. overnment protects industries like steel, aerospace, and electronics, on the basis of this argument, and has made special arrangements to protect the semiconductor industry. Lecture Note: In the United States, the Bureau of Export Administration enhances the nation's security and its economic prosperity by controlling exports for national security, foreign security, foreign policy, and short supply reasons. To learn more, go to {http://www. bis. doc. gov/about/index. htm}, click on Policies and R egulations and then on Export Administration Regulations. . Retaliation E) Government intervention in trade can be used as part of a â€Å"get tough† policy to open foreign markets. By taking, or threatening to take, specific actions, other countries may remove trade barriers. But when threatened governments do not back down, tensions can escalate and new trade barriers may be enacted. Lecture Note: The trading relationship between China and the United States is an ongoing topic of discussion for many. To expand the discussion on the role of government and retaliatory trade measures, consider {http://www. businessweek. om/globalbiz/content/may2008/gb20080528_845850. htm? chan=search} Protecting Consumers F) Consumer protection can also be an argument for restricting imports. The Country Focus below suggests that the European Union’s concern over beef was, in part, due to an interest in protecting consumers. Since different countries do have different health and safety standards, what may be acceptable in one country may be unacc eptable in others. Furthering Foreign Policy Objectives G) On occasion, governments will use trade policy to support their foreign policy objectives. One aspect of this is to grant preferential trade terms to countries that a government wants to build strong relations with. Trade policy has also been used several times as an instrument for pressuring punishing â€Å"rogue states† that do not abide by international laws or norms. In recent years the United States has imposed trade restrictions against Libya, Iran, Iraq, North Korea, Cuba, and other countries where governments were pursuing policies that were not viewed favorably by the U. S. government. A serious problem with using trade as an instrument of foreign policy is that other countries can undermine any unilateral trade sanctions. The U. S. Congress has passed two acts, the Helms-Burton Act and the D’Amato Act, in an effort to protect American companies from such actions. Protecting Human Rights H) Concern over human rights in other countries plays an important role in foreign policy. Governments sometimes use trade policy to improve the human rights policies of trading partners. Governments also use trade policies to put pressure on governments to make other changes. Unless a large number of countries choose to take such action, however, it is unlikely to prove successful. Some critics have argued that the best way to change the internal human rights of a country is to engage it in international trade. The decision to grant China most favored nation status was based on this philosophy. Country Focus: Trade in Hormone-Treated Beef Summary This feature describes the trade battle between the United States and the European Union over beef from cattle that have been given growth hormones. It outlines the basic issues that led to the dispute, and shows how the World Trade Organization has treated the case. Suggested Discussion Questions 1. Why is the European Union so concerned about beef from cattle that have been given growth hormones? Discussion Points: Some students may argue that the European Union’s ban on growth hormones in cattle was little more than a thinly veiled form of protectionism. Australia, New Zealand, and Canada, which also use the hormones in their cattle industry, were also affected by the ban. The European Union claimed that it was merely protecting the health of its citizens, however studies showed that the hormones posed no health issues for people. 2. Why did the WTO rule against the European Union? Discussion Points: The World Trade Organization ruled against the European Union stating that the European Union’s ban on imported hormone treated beef had no scientific justification. Even so, the European Union refused to lift the ban, which had strong public support, and in the end, the European Union was assessed punitive tariffs. The European Union held on to its principles though, and as of 2008, continued to maintain its restrictions on hormone treated beef despite the resulting punitive tariffs. Teaching Tip: The WTO maintains a site for students. Go to {www. wto. org} and click on the students icon to search the site, research countries, and even see a list of internships that are available at the WTO. Economic Arguments for Intervention I) Economic arguments for intervention include the infant industry argument and strategic trade policy. The Infant Industry Argument J) The infant industry argument suggests that an industry should be protected until it can develop and be viable and competitive internationally. Unless an industry is allowed to develop and achieve minimal economies of scale, foreign competitors may undercut prices and prevent a domestic industry from developing. The infant industry argument has been accepted as a justification for temporary trade restrictions under the WTO. K) A problem with the infant industry argument is determining when an industry â€Å"grows up. † Some industries that are just plain inefficient and uncompetitive have argued they are still infants after 50 years. The other problem is that given the existence of global capital markets, if the country has the potential to develop a viable competitive position its firms should be capable of raising the necessary funds without additional support from the government. Strategic Trade Policy L) Strategic trade policy suggests that in cases where there may be important first mover advantages, governments can help firms from their countries attain these advantages. Strategic trade policy also suggests that governments can help firms overcome barriers to entry into industries where foreign firms have an initial advantage. THE REVISED CASE FOR FREE TRADE A) While strategic trade policy identifies conditions where restrictions on trade may provide economic benefits, there are two problems that may make restrictions inappropriate: retaliation and politics. Retaliation and Trade War B) Krugman argues that strategic trade policies aimed at establishing domestic firms in a dominant position in a global industry are beggar-thy-neighbor policies that boost national income at the expense of other countries. A country that attempts to use such policies will probably provoke retaliation. Domestic Politics C) Governments do not always act in the national interest when they intervene in the economy. Instead special interest groups may influence governments. Thus, a further reason for not embracing strategic trade policy, according to Krugman, is that such a policy is almost certain to be captured by special interest groups within an economy, who will distort it to their own ends. DEVELOPMENT OF THE GLOBAL TRADING SYSTEM A) Many governments recognize the value of unrestricted free trade, but are hesitant to unilaterally lower their trade barriers in case other countries do not follow suit. Since World War II, and international trading framework has evolved that enables governments to negotiate a set of rules to govern cross-border trade and lower trade barriers. For the first 50 years, the framework was known as the General Agreement on Tariffs and Trade (GATT). More recently, it has been known as the World Trade Organization (WTO). From Smith to the Great Depression B) Up until the Great Depression of the 1930s, most countries had some degree of protectionism. Great Britain, as a major trading nation, was one of the strongest supporters of free trade. C) Although the world was already in a depression, in 1930 the United States enacted the Smoot-Hawley Act, which created significant import tariffs on foreign goods. As other nations took similar steps and the depression deepened, world trade fell further. 1947-1979: GATT, Trade Liberalization, and Economic Growth D) After WWII, the U. S. and other nations realized the value of freer trade, and established the General Agreement on Tariffs and Trade (GATT). E) The approach of GATT (a multilateral agreement to liberalize trade) was to gradually eliminate barriers to trade. Over 100 countries became members of GATT, and worked together to further liberalize trade. Teaching Tip: A full review of GATT, containing an actual copy of the agreement, is available at {http://www. ciesin. org/TG/PI/TRADE/gatt. html}. 1980-1993: Protectionist Trends F) During the 1980s and early 1990s the world trading system as â€Å"managed† by GATT came under strain. First, Japan’s economic strength and huge trade surplus stressed what had been more equal trading patterns, and Japan’s perceived protectionist (neo-mercantilist) policies created intense political pressures in other countries. Second, persistent trade deficits by the United States, the world’s largest economy, caused significant economic problems for some industries and political problems for the government. Third, many countries found that although limited by GATT from utilizing tariffs, there were many other more subtle forms of intervention that had the same effects and did not technically violate GATT (e. g. VERs). The Uruguay Round and the World Trade Organization G) Against the background of rising protectionist pressures, in 1986 GATT members embarked on their eighth round of negotiations to reduce tariffs (called the Uruguay Round). This was the most ambitious round to date. Services and Intellectual Property H) One goal was to expand beyond the regulation of manufactured goods and address trade issues related to services and intellectual property, and agriculture. The World Trade Organization Lecture Note: To see current issues at the WTO, go to {http://www. wto. org/} and click on â€Å"News. † I) When the WTO was established, its creators hoped the WTO’s enforcement mechanisms would make it a more effective policeman of the global trade rules than the GATT had been. The WTO encompassed GATT along with two sister organizations, the General Agreement on Trade in Services (GATS) and the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS). WTO: Experience to Date J) At the time of its establishment, the great hope was that the WTO might emerge as an effective advocate and facilitator of future trade deals, particularly in such areas as services. In general, the experience so far has been encouraging. WTO as Global Police K) So far, the WTO’s policing and enforcement mechanisms are having a positive effect. In general, countries have adopted WTO recommendations for trade disputes. Expanding Trade Agreements L) In 1997, 68 countries that account for more than 90 percent of world telecommunications revenues pledged to open their markets to foreign competition and to abide by common rules for fair competition in telecommunications. Similarly, 102 countries pledged to open to varying degrees their banking, securities, and insurance sectors to foreign competition. Like the telecommunications deal, the agreement covers not just cross-border trade, but also foreign direct investment. The WTO in Seattle: A Watershed? M) The 1999 meeting of the WTO in Seattle was important not only for what happened between the member countries, but also for what occurred outside the building. Inside, members failed to agree on how to work toward the reduction of barriers to cross-border trade in agricultural products and cross-border trade and investment in services. Outside, the WTO became a magnet for various groups protesting free trade. The Future: Unresolved Issues and the Doha Round N) Substantial work still remains to be done on the international trade front. Four issues on the current agenda of the WTO are the rise of anti-dumping policies, the high level of protectionism in agriculture, the lack of strong protection for intellectual property rights in many nations, and continued high tariffs on nonagricultural goods and services in many nations. Lecture Note: The European Union’s trade commissioner is urging nations to complete Doha round negotiations prior to the beginning of a new administration in the United States. Further details can be found at {http://www. businessweek. com/globalbiz/content/jan2008/gb20080128_519854. htm? chan=search}. Anti-Dumping Actions O) There has been a proliferation of antidumping actions in recent years, perhaps because of the rather vague definition of what constitutes dumping. The WTO is encouraging members to strengthen the regulations governing the imposition of antidumping duties. Protectionism in Agriculture P) The WTO is concerned with the high level of tariffs and subsidies in the agricultural sector of many economies. However, the advanced countries of the world defend the current system because they want to protect their producers from lower-cost producers from developing nations. Protecting Intellectual Property Q) The agreement to protect intellectual property (TRIPS) obliges WTO members to grant and enforce patents lasting at least 20 years and copyrights lasting 50 years. The basis for this agreement was a strong belief among signatory nations that the protection of intellectual property rights is an essential element of the international trading system. Market Access for Nonagricultural Goods and Services R) The WTO would like to bring down tariff rates on nonagricultural goods and services, and reduce the scope for the selective use of high tariff rates. The hope is that at some point, rates would move to zero. Country Focus: Estimating the Gains from Trade for America Summary This feature explores the results of a study by the Institute for International Economics. The study, which estimated the gains to the U. S. economy from free trade, found that the United States’ GDP was more than 7 percent higher as a result of reductions in trade barriers than it would have been if the barriers remained. The study also estimated that if tariffs were reduced to zero, significant gains would still result. Suggested Discussion Questions 1. What does the Institute for International Economics suggest about the benefits of free trade? Discussion Points: The Institute for International Economics found that thanks to reductions in trade restrictions, the United States’ GDP was up. The Institute also estimated that even greater gains in the country’s GDP would occur if protectionism was eliminated all together. Students should recognize that these findings follow the principles of Adam Smith and David Ricardo and suggest that free trade is beneficial. 2. According to the Institute for International Economics study, a move oward free trade would cause disruption in employment. Is it still worth pursuing free trade if it means that some people lose their jobs? Discussion Points: This question should prompt a strong debate among students. Some students will probably suggest that the costs in terms of lost wages and benefits associated with free trade outweigh the benefits that would be gained. Other students howev er, will probably argue that since protectionism typically benefits only a few at the expense of others, while free trade generates greater economic growth and higher wages, a free trade policy should be followed. Teaching Tip: The Web site for Institute for International Economics is available at {http://www. iie. com/}. A New Round of Talks: Doha R) In late 2001, the WTO launched a new round of talks at Doha, Qatar. The agenda includes cutting tariffs on industrial goods and services, phasing out subsidies to agricultural producers, reducing barriers to cross-border investment, and limiting the use of anti-dumping laws. FOCUS ON MANAGERIAL IMPLICATIONS A) What does all of this mean for business? Managers need to consider how trade barriers impact firm strategy, and what role they can play in promoting free trade or trade barriers. Trade Barriers and Firm Strategy B) Trade barriers are a constraint upon a firm’s ability to disperse its productive activities. First, trade barriers raise the cost of exporting products to a country. Second, voluntary export restraints (VERs) may limit a firm’s ability to serve a country from locations outside that country. Third, to conform to local content requirements, a firm may have to locate more production activities in a given market than it would otherwise. All f the above effects are likely to raise the firm’s costs above the level that could be achieved in a world without trade barriers. In addition, the threat of antidumping action could limit the ability of a firm to use aggressive pricing as a way to gain market share. Policy Implications C) In general, international firms have an incentive to lobby for free tra de, and keep protectionist pressures from causing them to have to change strategies. While there may be short-term benefits to having governmental protection in some situations, in the long run these can backfire and other governments can retaliate. Critical Thinking and Discussion Questions 1. Do you think the U. S. government should consider human rights when granting preferential trading rights to countries? What are the arguments for and against taking such a position? Answer: China is frequently cited as a violator of human rights, and can form the basis for a discussion of this question. While the answer to the first question clearly is a matter of personal opinion, in stating their opinions, students should consider the following points. Trade with the U. S. is very important to China, as China views the U. S. as an important market. The U. S. is also an important source of certain products. Thus, the U. S. has some leverage with trade when trying to influence China’s human rights policies. For this policy to have much effect, however, other nations important to China must adopt similar policies. Otherwise China will simply choose to work with other countries, and U. S. consumers and producers may be more negatively impact than the Chinese. Another concern with tying MFN status to human rights is that denying MFN may make the human rights situation worse rather than better. By engaging in trade, the income levels in China will increase, and with greater wealth the people will be able to demand and receive better treatment. 2. Whose interests should be the paramount concern of government trade policy – the interests of producers (businesses and their employees) or those of consumers? Answer: The long run interests of consumers should be the primary concern of governments. Unfortunately consumers, each of whom may be negatively impacted by only a few dollars, are less motivated and effective lobbyists than a few producers that have a great deal at stake. While in some instances it could be argued that domestic consumers will be better off if world-class domestic producers are nurtured and allowed to gain first mover advantages in international markets, it is doubtful that the government will be better than international capital markets at â€Å"picking winners†, and will more likely pick the firms with the greatest political clout. While employees may well lose jobs if there are more efficient foreign competitors, some would argue that this is just the nature of competition, and that the role of government should be to help these employees get jobs where they can be efficiently employed rather than to protect them from reality in inefficient firms. 3. Given the arguments relating to the new trade theory and strategic trade policy, what kind of trade policy should business be pressuring government to adopt? Answer: According to the textbook, businesses should urge governments to target technologies that may be important in the future and use subsidies to support development work aimed at commercializing those technologies. Government should provide export subsidies until the domestic firms have established first mover advantages in the world market. Government support may also be justified if it can help domestic firms overcome the first-mover advantages enjoyed by foreign competitors and emerge as viable competitors in the world market. In this case, a combination of home market protection and export-promoting subsidies may be called for. . You are an employee of an U. S. firm that produces personal computers in Thailand and then exports them to the U. S. and other countries for sale. The personal computers were originally produced in Thailand to take advantage of relatively low labor costs and a skilled workforce. Other possible locations considered at that time were Malaysia and Hong Kong. The U. S. government decides to impose punitive 100 percent ad valorem tariffs on imports of computers from Thailand to punish the country for administrative trade barriers that restrict U. S. exports to Thailand. How should your firm respond? What does this tell you about the use of targeted trade barriers? Answer: As long as the manufacturing requirements haven't changed significantly, looking at Malaysia or Hong Kong again for production would appear obvious. By the U. S. government introducing a specific ad valorem tariff on Thai computer imports, it would be easy to get around these by looking at other locations. Hence such targeted trade barriers can often be easily circumvented without having to locate production facilities in an expensive country like the U. S. 5. Reread the Management Focus feature on U. S. Magnesium Seeks Protection. Who gains most from the anti-dumping duties levied by the United States on imports of magnesium from China and Russia? Who are the losers? Are these duties in the best national interests of the United States? Answer: Most students will probably recognize that U. S. producers and their employees are the primary beneficiaries of the anti-dumping duties levied by the United States on Chinese and Russian magnesium imports. As a result of the duties, consumers in the United States will pay higher prices for magnesium-based products. Some students may suggest that by imposing the duties, the United States runs the risk of retaliatory measures from both China and Russia. Closing Case: Agricultural Subsidies Summary The closing case examines the effects of subsidies paid to U. S. cotton farmers. The United States currently pays about $5 billion to cotton farmers for a crop that is worth just $4 billion. The lower prices resulting from the subsides and the excess production they encourage, have had particularly devastating effects on cotton farmers in poor countries. Some estimates show, for example, that the subsidies and excess production in the United States has cost the African country of Benin more economically than it receives in aid from the United States. Discussion of this case can revolve around the following questions: QUESTION 1: Why do you think that the U. S. government pays subsidies to farmers? ANSWER 1: The United States initially began paying subsidies to farmers in the middle of the Great Depression. Many students will probably suggest that the subsidies are still being paid simply because they have been in place for so long. Other students however, may note the power of agricultural lobbyists and the fact that without the subsidies, U. S. farmers could not compete in world markets. This suggests that the government has some incentive to continue with its current policies. QUESTION 2: What is the impact of farm subsidies on the price of agricultural products in the United States, and on prices elsewhere? ANSWER 2: The subsidies paid to U. S. farmers currently run around $29 billion annually. They encourage farmers to produce more products than are needed, and in doing so depress global prices. Cotton subsidies for example, pushed the price of cotton to just $0. 5 in 2006, about half the 1995 price. For farmers in poor countries, the drop in prices has pushed income levels down over 20 percent. QUESTION 3: Who benefits from U. S. farm subsidies, who are the losers? ANSWER 3: Most students will recognize that the primary beneficiaries of the subsidies are farmers. As a result of the subsidies, consumers mus t pay more, and producers in other countries are faced with falling prices, and ultimately lower incomes. QUESTION 4: What would happen if the United States (and other countries) stopped paying subsidies to farmers to grow certain crops? Who would benefit, who would lose? ANSWER 4: If the United States stopped paying subsidies to farmers, consumers would initially see prices fall. Later however, as some farmers, without the support of the subsidies, went out of business, consumers would probably see prices rise to some degree as supply and demand moved together. Producers in other countries like Benin would benefit from increased demand and higher prices. Video Note: The iGlobe Agricultural Problems Lead to Farmer Suicides in India explores the effects of cotton subsidies on farmers in India. The iGlobe is a good complement to the Closing Case. Continuous Case Concept As automakers establish production operations in multiple countries around the world, and rely on suppliers from numerous countries, the question of tariffs and quotas becomes more important. In this chapter’s Continuous Case Concept, explore what happens if a country places a tariff or other trade barrier on imported cars. †¢ Ask students to consider, for example, how consumers would react if the U. S. charged a tariff on every car that is imported from Japan. What would be the likely reaction of Japanese automakers? What would American producers do? †¢ Next, ask students to consider whether such as tariff is â€Å"fair. Who really pays the tariff? Who benefits from the tariff? Who would benefit from free trade in automobiles and car parts? †¢ Finally, explore how efforts by both the United States and the European Union to increase the production of ethanol and bio-diesel (see Opening Case) could impact the auto industry. Honda is currently a market leader in the hybrid vehicle market, but is hampered by the lack of infrastructure to fully support the industry. In 2008, Toyota established a goal to sell 500,000 hybrid vehicles. This exercise works well after the notion of trade barriers has been introduced. It can also be used in a summary discussion of the chapter’s material or in conjunction with the Opening Case. globalEDGE Exercises Use the globalEDGE Resource Desk {http://globalEDGE. msu. edu/ResourceDesk/} to complete the following exercises. Exercise 1 Your company is considering exporting its pharmaceutical products to Japan, but management’s current knowledge of the country’s trade policies and barriers for this sector is limited. Conduct the appropriate level of research in a trade barriers database to identify any information on Japan’s current standards and technical requirements for pharmaceutical products. Prepare an executive summary of your findings. Answer: The quickest way to reach this information would be to search globalEDGE using the phrase â€Å"trade barriers database† at http://globaledge. msu. edu/ResourceDesk/. Once at the Market Access Database website, select â€Å"Trade Barriers Database. † On the search option â€Å"Select Country,† choose â€Å"Japan,† and on the search option â€Å"Select Sector,† choose â€Å"Pharmaceuticals. † A series of reports are listed from which those with more general titles will provide adequate insight for the exercise. Search Phrase: â€Å"Trade Barriers Database† Resource Name: Market Access Database Website: http://mkaccdb. eu. int/ globalEDGE Category: â€Å"Research: Multi-Country† Exercise 2 You work for a national chain of clothing stores that is considering importing textiles from India into the U. S. You want to determine whether the goods are subject to import quotas. Using information provided by the U. S. Customs and Border Protections, prepare a report highlighting the elements that determine whether a shipment is subject to this type of trade restriction. Answer: The U. S. Customs and Border Protections website hosted by the U. S. government offers considerable information on the details of importing or exporting into or out of the U. S. The information for the exercise can be reached by searching for the phrase â€Å"U. S. Customs and Border Protections† at http://globaledge. msu. edu/ResourceDesk/. This resource can also be found under the globalEDGE category â€Å"Research: Government Resources. † Once on the website, click on â€Å"Trade† and select â€Å"Textiles and Quotas† under â€Å"Trade Program Areas. The report, â€Å"Are my Goods Subject to Quotas? ,† is readily available. Search Phrase: â€Å"U. S. Customs and Border Protections† Resource Name: United States: U. S. Customs and Border Protections Website: http://www. cbp. gov/ globalEDGE Category: â€Å"Research: Government Resources† Additional Readings and Sources of Information Economists Rethink Free Trade http://www. businessweek. com/magazine/content/08_06/b4070032762393. htm? chan=search Brazil Urges EU to Scrap Biofuel Tariffs http://www. businessweek. com/globalbiz/content/jul2007/gb2007076_483689. htm? chan=search

Food and Beverage control System Essay

Food and beverage control systems can help you introduce the same financial rigour to your dining establishment or catering company that you’ll find in manufacturing operations. What is a food and beverage control system? A food and beverage control system is a means of computerizing best practice within a restaurant or catering operation. It gives managers a better idea of the flow of food through the restaurant, enabling them to plan cash flow and stock control more effectively. At the sharp end, it provides chefs with a more structured way of planning menus, taking into account nutritional and financial considerations. Importance of food and beverage control system In areas like manufacturing, companies keep close tabs on the manufacturing cost and value of their products. And yet in dining establishments, the core product — the food — is often not subject to the same scrutiny. Food control in many establishments is chaotic and unstructured. Restaurant budgets are often based on what was achieved last year. Ideally, chefs should be able to cost out each item on a menu, creating a clear picture of the cost of each sale to measure against its revenue. This helps you to understand which the most profitable items are, and whether you are keeping food wastage low enough to hit the profitability targets that you have set yourself. Putting in place a proper food and beverage control system will help you to make more intelligent decisions that help to cut the overall cost of sale for an establishment while maintaining profits. For example, if you find that your overheads are too high, you may be able to cut items from the menu that have a higher cost-to-revenue ratio. Features of food and beverage control system There are several key features that dining establishments should consider when purchasing a food and beverage control system.

Tanglewood Stores - Measurement and Validation Essay

Tanglewood Stores - Measurement and Validation - Essay Example The  table gives a clear analysis of various variables. It shows an estimate of the correlation between some of the common predictors like education, managerial interviews, job experience and the measures /variables of performance, citizenship, absence along with other correlations between the proposed predictors like biodata, applicant exams, extraversion, consciousness and retail knowledge. Content validity of the methods of selection is one of the key questions that have to be addressed.There are quite a number of scales that Tanglewood proposed which perfectly match the content that they are intended to measure.And they also correspond properly with the specific work of store associates.  First, we have the retail market knowledge exam which comprises of questions that pertain to the industry and the uniqueness of Tanglewood in the industry. This is properly done and very relevant in the sense that it is related to the basic knowledge of some of the vital marketing principles.Marshfield applicant exam which aims at helping individuals to get some problem-solving abilities, accuracy and fluency in numerical concepts.The personality exam is aimed at identifying the various personality types of those intending to work with Tanglewood.This is necessary for it assists the management to understand the kind of employees to put in various departments. If Tanglewood is interested in getting some of the best people to work for them, there a quite a number of things that they must do. They should focus more on aspects like education of the individual, his or her competencies, the experience he or she has in that particular are to avoid hiring people who lack the know-how and ensure that they give them more training pertaining the kind of duties that the organisation offers. For instance, those in the human resource have to be assisted on how to hire the best people for particular jobs within the stores. The above names predictors are some of the best because they will  ensure that the organisation has people who are competent and know what they are required of by their employers.  

Accounting Assumptions, Principles and Constrains Essay

Accounting Assumptions, Principles and Constrains - Essay Example n that assumes that the economic entity has a significant past and future for purposes of recording costs of assets and inventory and decision making based on those costs in the present. Additionally, there are the Monetary Unit assumptions that keeps score with money, but it typically ignores inflation and deflation of currencies; the value and unit of currency are understood to be firm; otherwise, there is transaction with global divisions that uses other currencies besides the U.S. Dollar. Finally there is an accounting Periods assumption that assumes that the periodical accounting periods is applicable and accountants can stop to analyze financial statements. Historical Costs (assets and liabilities) characteristically report on the chronological cost and then adjusted to fair market value when the needs of reporting require it. However, the cost of assets went up some years thereby did not reflect what it is worth to other buyers or the cost of replacement. (Riahi-Belkaoui, 2005).   Revenue Recognition is the recording of revenues when they are realized and earned. (Pratt, J. 2011). This is one of challenge that accrual-based accounting is trying to solve. Notably, receiving cash from a sales order doesn’t mean that everything has to earn the revenue especially when they are shipped. In other words, it is sometimes possible to sell goods or services without receiving cash. Therefore, Matching Expenses to Revenues means matching fixed cost of the revenues or recording profit in the income statement based on the best profit on revenues and expenses. This often leads to Full Disclosure where accountants record and report every bit of information in the numbers and footnotes of financial statements that fairly represent the activities of the business entity in that accounting period. This procedure is perfect; however, for decision-making it is expected to leave out or add things that are relevant to the decision being made. In most cases, Cost and Benefit is

Vaginal Examinations Paper Literature review Example | Topics and Well Written Essays - 1750 words

Vaginal Examinations Paper - Literature review Example Friedman created a cervicograph to  offer  clinicians with an objective  means  of gauging  labour  development, which  was later established  to  become  the partogram (Albers, 2001a:p351). While Friedman’s  curve  illustrates that the dilation  pace  should be one centimetre per an hour (Arya, Whitworth and Johnson, 2007), there has been a  dispute  on this  pace  of cervical development from both obstetricians and midwives. Albers (2007b: p209) researches on the care methods to  maintain  birth  normal, for  instance  social  sustenance  and non -pharmacological techniques of pain reliever,  position  change and activity. Her results show a slower  development  of  labour  with no a raise in complications for the  baby  or mother. According to Albers, the optional rate of cervical dilation should be between 0.3cm and 0.5cm per hour. Vaginal examination is an assessment tool that offers encouragement to the mo ther and midwife that labour  is  systematic  towards the birth. According to Albers (2007b: p212), the rate of vaginal examination is reliant on the health professional and the medical institution. There is a  difference  of three hourly, four hourly or six hourly or at the midwives’ judgment. ... on, for example, foetal position, `presentation and  drop  of the presenting part alongside with information on cervical consistency, effacement, and dilatation of the cervix (Thorpe and Anderson, 2006:p22). When placing into the  milieu  of what the woman is experiencing, and her  labour  concerning the length,  intensity  and  strength  of the contractions the midwife could  advance  her perceptive of that woman’s  labour. While interpretation of these aspects may be  variable, the vaginal examination is a  significant  ability  that midwives must develop. This can assists them to understand labour rhythms and signal  divergence  from the physiological process. Without a doubt, many midwives use vaginal examinations that  assist  them to  widen  their skills in the examination of labour. Hence, improving their skills in understanding the signs of the labour development, this could differ with each woman. The  performance  of midwives when doing a vaginal examination hints an  echelon  of awkwardness, as well as  potential  issues about  authority  and  control. In her research  survey, the midwives and women's incidents of vaginal examination in labour, Stewart (2006: p31) findings  indicate  that the midwives actions  imply  high levels of  embarrassment  when performing a vaginal examination. Stewart (2006: p34) employed a critical ethnographic advance to  centre  on how the to  converse  vaginal examination with the  woman  and how midwives  perform  it in practice. She institutes two main arguments that she explains as sanitisation through verbal and action sanitisation (Stewart, 2006: p35). Stewart proposes that midwives  employ  a number of physical and verbal strategies to  detach  themselves from vaginal examinations. These include the  employment  of

Appeal letter Essay Example | Topics and Well Written Essays - 250 words - 2

Appeal letter - Essay Example My GPA stands at 2.05 and 3 failures on my transcript. I have made plans to retake failed classes where I already took Math 234 in the Spring 2012 quarter, and the other two classes after Fall 2012. I also went to my professors’ offices as well as relying on Dr. Sylvester advice on how to retake the failed classes. Additionally, I plan to take one less class than normal to enhance my focus on the classes at hand. These efforts seek to help me and boost my GPA. As such, having identified my problems and subsequently establishing measures to resolve them and improve my GPA, I feel that a suspension is counter-productive to my quest for education. Indeed, am already registered for Fall 2012 and am ready to do better. Hence, I request the University’s reversal of my dismissal letter. I will gladly appreciate another opportunity to keep studying in Seattle University with a promise to work hard and improve my

Explaining a Concept Research Paper Assignment Example | Topics and Well Written Essays - 1250 words

Explaining a Concept Research Paper - Assignment Example Although that is the ideal set-up, taking the car to the garage every time for a simple oil change can actually add up in costs and rack up quite a bill for the car owner throughout the year. That is why it there are some do-it-yourself supporters out these who believe that the oil change, being a really simple process, can be done by the car owner him or herself. Doing the oil change yourself allows you to get to know the under pinnings and other parts of your car better while also giving you the bragging rights to being a master â€Å"oil change† mechanic. The purpose of this concept paper is to do exactly that, explain the reason, concept, and method by which a car owner can change his own car oil. It is important to remember that although changing the car oil is something that is relatively easy to do with the right tools and equipment, there is still a strong tendency to do it the wrong way. Done properly, the oil change you personally did will result in a purring engine. Do it wrong and you end up back at the garage paying for more than just an oil change. It is this possibility that usually sends most car owners to the nearest garage or gas station for a quick oil change. But with these shops continuing to raise their prices for simple services, having an oil change done professionally does not seem financially sound anymore (â€Å" DIY Car Maintenance - How to Change Your Car Oil Yourself†). In fact, learning to do the oil change yourself will save you not only money, but time wasted sitting in the client lounge of the local garage, waiting for the service to be completed in 3 hours when it should only take 20 minutes on average to do yourself. It would be best to allot an hour for changing the oil the first time that you set out to do the task yourself. This will allow you enough time to get to know the parts of your car and change the oil, inspect the oil plug, etc. without being pressed for time. The whole process should go relatively f ast provided you have the following proper tools and materials prepared beforehand: Wrench to remove the drain plug (box or socket) Oil filter wrench Oil drain pan Funnel Latex gloves Jack and jack stands (optional, depends on ground clearance) Oil Oil Filter Replacement drain plug washer (depending on application) (Edmunds, Dan â€Å"How to Change Your Oil) Now, before you go wrench crazy because you have all the tools you need already, and start to unscrew everything underneath your car, it is important to consult the car manual to make sure that you bought the correct oil and oil filter at the auto supply store. The wrong motor oil or filter will result in a major disaster for your little home project. It is necessary to check your car manual because the manual might require; ... other specific oil requirements as defined by the by the American Petroleum Institute (API) and the International Lubricant Standardization Approval Committee (ILSAC.) Sometimes synthetic oil is express ly called for. Sometimes it's not necessary. And sometimes its use is implied by additional requirements (Edmunds, Dan â€Å"How to Change Your Oil). By following those aforementioned instructions as a diy person, you will ensure that the correct car oil will be used in your car. It is also necessary to make sure that you use the correct oil filter with your car because if; ... your owner’

Markting Assignment Example | Topics and Well Written Essays - 1250 words

Markting - Assignment Example The user can choose to set the calorie alarm of the device to a specific level of his or her choice. For example, if the user is on a 180 calorie diet per meal, the user can set the calorie alarm to 180 calories. Once the user will reach or exceed his or her desired calorie level, the alarm will activate and the device will display the total amount of calories the user has taken. Before the user starts his or her meal, the user has to press the start button to activate the calorie intake meter. After the user has finished the meal, the user then has to press the stop button to end the calorie intake count. When the stop button has been pressed, the data (amount of calories taken) will then be automatically saved along with the date and time (to indicate if the meal is breakfast, lunch, snacks or dinner) into the memory card of the device. Once the data has been saved, the user then can upload the data to the computer so that he or she can keep track of his or her calorie intake. Just like any ordinary watch, the device has time, calendar and stopwatch features, as well as the ability to switch the display with a press of a button. During my research I found products that are similar to the calorie intake counter. This similar product is called calorie counter watch. The difference between the said products is that the calorie counter watch measures the amount of calories burned by the user through the help of a pedometer which is installed in the device. A pedometer is a device that measures the distance a person travels on foot by responding to the motion of the body. In the case of the calorie counter watch, the pedometer measures the steps and the calories burned through the swinging of the arm. While the calorie intake counter watch as stated above, measures the amount of calories the user has taken through a special device called calorie intake meter. The calorie intake counter watch is a good instrument for people who want to maintain, gain or

Oman Telecommunication Company Case Study Example | Topics and Well Written Essays - 2000 words

Oman Telecommunication Company - Case Study Example There is a 49%cap on foreign ownership in Omantel.However no single party can hold more that 5% of the company's shares currently. The telecom landscape is primarily dominated by the state owned incumbent operator Oman Telecommunication Company (Omantel) It is the sole licensed operator of public fixed lines, telecommunication services including local, long distance and international telephony besides data communication and value added services, dominates the telecom landscape in Oman. It has launched its digital cellular network in 1996 and was the only mobile service provider in Oman until 2005, when new entrant Nawras telecom forayed into the market.Nawras won the tender for a second cellular license in June 2004 and received it in Feb 2005.Omantel's cellular subsidiary, Oman Mobile was given a the formal cellular license in Feb 2004.Both the players operate in the cellular market under a three year period of exclusivity that will expire next year. For the year ending Jan 2006,there were an estimated 1,78,000 internet users in the sultanate, out of which a vast majority accounted for Omantel's subscriptions. Howver since it's launch in March 2006,second mobile license holder Nawras has claimed 20% of the market share and has added over 3,00,000 new subscribers In the current scenario, there is no schedule for awarding the third generation (3G) universal mobile telecommunication system (WMTS... The Telecommunication Regulatory Authority(TRA)expects to license a second national public fixed line network operator as well as a second national public data operator in the near future but has not yet set a schedule for the endowment of the license. Market Potential. Statistics from the Telecommunication Regulatory Authority reveal the following: Mobile phone subscriptions: 1.5 million Fixed phone lines: 2, 69,000. Out of this Omantel's subscriber base amounted to 1.242 million (all services) in June 2005.For mobile services its market share was a staggering 91.7% for the same period. There has been a significant rise in the number of internet users, yet the penetration rates in Oman are low compared to other regions in GCC. Most of the internet users are concentrated in and around the capital region of Muscat. Despite persistent attempts, little progress has been made in other parts of the country, particularly in regard to the access of high-speed ADSL services. Therefore, it maybe inferred that there is a lot of untapped market potential in Oman. The Arab Advisors group forecasts that by the end of 2009 increased penetration figures, greater account usage and multiplier ratios might account for as many as 5,08,000 internet users in the sultanate. The installation and access charges are plunging, therefore the internet and data services market is promising. In recent times, Nawras has introduced wireless EDGE broadband services. High-end business users constitute a major chunk of the clientele, but it is a small segment of the market and nearing saturation. In this context, the under twenty-five market segment is likely to drive growth. In markets like Europe and East Asia

Determine the Empirical Formula of Magnesium Oxide by reacting a known mass of Magnesium with Oxygen Essay Example for Free

Determine the Empirical Formula of Magnesium Oxide by reacting a known mass of Magnesium with Oxygen Essay Safety Risk Assessment: Properly follow lab safety guidelines by wearing lab coats, gloves, and goggles and clear any personal belongings off the experiment area or the apparatus table. Gently handle glassware. Be careful when dealing with Bunsen burners. Make sure the crucible does not break while heating it as it might break due to the immense air pressure inside. Conclusion: Mg10O3 is the empirical formula we found through our experiment. Theoretically, the empirical formula is MgO. This is because Magnesium is a group 2 element so it would lose two electrons to form Mg2+ ion. Oxygen is a group 6 element so it would gain two electrons to form a O2- ion. So in theory, the empirical formula is MgO. Therefore we see were nowhere close obtaining a empirical formula to the theoretical answer though according to our uncertainty for Oxygen which is  ±3 it could be the oxygen we had weighed 5g and so therefore giving us a much accurate result of Mg10O2 which would go to a simplest ratio of Mg2O which would be closer to the theoretical answer. In addition to this according to our huge uncertainty the ratio could have also been 1:1 if the ratio would have led to 6:6. Though we see that the reason behind getting such an inaccurate answer is due to the incomplete combustion and due to not using a much more precise and accurate balance to weigh the apparatus and chemicals used.

Intelligent Agents Characteristics

Intelligent Agents Characteristics Report on Intelligent Agents Methodology The research for this report was done using the various books from the library, Internet sites and computer magazines. Introduction The uses of intelligent agents within the home and in businesses have increased dramatically over the years. Intelligent agents are a part of a program that carries out a task unsupervised and applies some degree of intelligence to the task. New and improved intelligent agents are constantly being designed and produced to carry out numerous repetitive and predictable tasks. One definition of an intelligent agent, as described by states â€Å"an intelligent agent perceives its environment via sensors and acts rationally upon that environment with its effectors. Hence, an intelligent agent gets percepts one at a time and maps this percept into actions† In his book, Essentials of Management Information Systems, Kenneth Laudon describes an intelligent agent as being â€Å"software programs that work in the background to carry out specific, repetitive and predictable tasks for an individual user business or software application†. The design and production of an intelligent agent has to take into consideration numerous factors. This report takes a look at these considerations and factors and provides and insight into how intelligent agents are influencing businesses and society as a whole. Findings Agent Characteristics Intelligent agents have four main characteristics: â€Å"An agent is a computer software system whose characteristics are situatedness, autonomy, adapitvity and sociability.† Situatedness When an Agent receives some form of sensory input from its environment, it then performs some actions that change its environment in some way. Autonomy This agent characteristic means that an agent is able to act without direct intervention from humans or other agents. This type of agent has almost complete control over it own actions and internal state. Adapitvity This agent characteristic means that it is capable of reacting flexibly to changes within its environment. It is able to accept goal directed initiatives when appropriate and is also capable of learning from its own experiences, environment and interaction with others. Sociability This type of characteristic means that the agent is capable of interacting in a peer-to-peer manner with other agents or humans. Design Considerations One of the most important aspects of intelligent agents is the design of the actual agent. The agent needs to be able to fulfil the tasks that are required from it, i.e. to achieve its goals. There are four main aspects that need to be taken into consideration when designing an intelligent agent. Percepts This is the information that the agent receives Actions This is what the agent needs to do or can do to achieve its objectives. Goals This is the factor that the agent is trying to achieve Environment The final aspect is the environment in which the agent will be working in. The environment in which the agent performs is probably the most important aspect that needs to be considered as this affects the outcome of the percepts, actions and goals. Different Approaches to Agent Design From the agent characteristics and design considerations come four different approaches to intelligent agent design. Simple Reflex Agents Simple reflex agents are the most basic form of intelligent agent. They are simple minded, direct connections between percepts and actions. Reflex Agents with Internal State Reflex agents with internal state are similar to the Simple reflex agents except they remember the state of the environment as contained in earlier percepts. As the agents sensors do not provide a detailed account of the environment at each input, a perception of the environment is captured over a period of time that provided further information to the agent and enables it to provide better results. Goal Based Agents For a goal based agent, the agent must know more than the current state of the environment, they must know the full requirements of the goal that they are required to perform. The goal based agent combines the information of the goal with possible actions that will achieve that goal. This may cause the agent to take longer sequences of possible actions before deciding on the right course of action and whether the goal has been achieved. Goal Based agents also take the future into consideration. 3.4 Utility Based Agents Utility-based agents are the ultimate form of intelligent agent and are an extension of the goal-based agent. Utility agents consider degrees of utility and try to maximise their own potential. Utility functions allow the agent to identify conflicting or alternative goals and decisions. The likelihood of success and importance of the goal can also be compared and evaluated by the utility agent; the agent would then execute appropriate action to ensure the best option was selected. Distinction between Environments Accessible Vs Inaccessible This environment is concerned with whether the agent is able to see the exact state of the environment. If the agents sensors are able to provide it with complete access to the state of the environment needed to choose an action, then the environment is accessible otherwise it is inaccessible. Deterministic Vs Nondeterministic In a deterministic environment, the use of the same actions will produce the same outcome every time the process or situation is repeated. But in a Nondeterministic environment the final outcome of the process or situation will be different every time. Episodic Vs Nonepisodic In an episodic environment, subsequent episodes do not depend on the actions that occurred in previous episodes, agents in this type of environment dont need to plan ahead. Agents in Nonepisodic environments do tend to depend on previous actions that occurred in previous episodes and do tend to have to plan ahead. 4.4 Static Vs Dynamic A static environment is an environment that doesnt change and the time taken for an agent to process an action doesnt matter, as the environment will remain the same. A dynamic environment changes continuously and an intelligent agent has to be able to process actions quickly before the environment changes. Discrete Vs Continuous In a discrete environment the number of distinct percepts and actions that an agent will receive is limited to a set amount, but in a continuous environment the percepts and actions are unlimited. Intelligent agents that are in an accessible or deterministic environment do not need to deal with uncertainty. Inaccessible, Nondeterministic, Nonepisodic, Dynamic, and Continuous environments are the most challenging, as these are unpredictable environments, the other environments are more stable and less volatile. The use of Intelligent Agents in Businesses The use of intelligent agents has increased dramatically over the past 5 year, though the majority of people wouldnt think twice about the process that they do that make their lives easier. During the1990s, A.D.Little, a management consultant, estimated that by the year 2000, 15 to 20 percent of all computer applications would contain intelligent agents. Though this figure has increased a substantial amount with the development of new technologies. The use of intelligent can agents can be seen in every industry sector within the UK and all over the world. The most common and widely used agents are found within two main areas. The first is within office type environments in which computers are used and the second is on the World Wide Web. In the first issue, computer software is the main reason for agents being used so widely: Operating systems use agents to add email and dial up networking account, do group management, add/remove programs and devices and monitor licences. Spreadsheet agents offer suggestions for improvement and can also tutor novice users. Software development agents assist in routine activities such as data filtering. The second and area and probably the largest is the Internet. The internet uses a variety of different types of agents to help the user find what they are looking for. They include: Search engines improve your information retrieval on the Internet Web mastering Agents these agents make it easy to manage a web site Web Agents These agents improve the users browsing experience. Monitoring Agents These agents monitor web sites or specific themes you are interested in. Shopbots These agents allow you to compare prices on Internet. Virtual Assistants these include virtual pets and desktop assistants. Intelligent agents can be seen in a wide variety of situations, the table in point 5.1 provides more examples of what agents are capable of. Though agents are making life easier, it is also reducing the amount of employees needed to do the job. An example of this would be a car-manufacturing factory. During the 1980s thousands of people were employed to make the vehicles but since the introduction of machinery that contains an intelligent agent to do the repetitive work, numerous people were made redundant and the positions in which 4 5 people did the job has been reduced to one or two men and the machine. An intelligent agent is something that perceives and acts in an environments. An ideal agent is one that always takes the action that is expected to maximise its performance. There are a variety of basic agent program designs. The designs vary in efficiency, compactness and flexibility. The appropriate design of the agent program depends on the percepts, actions, goals and environment. Some environments are more demanding than others. Reflex agents respond immediately to percepts, goal based agents act so that they can achieve their goals and utility-based agents try to maximise their own ‘happiness. The use of intelligence agents has increased beyond the expectations of experts within the management and information technology fields. The use of intelligent agents are being seen in a wide cross section of businesses whether it be in machinery and equipment or within the software programs that they have in their computers and networks. The most widely used forms of intelligent agents are found on the Internet, they are mainly used within search engines. Recommendations Intelligent agents are the basis of artificial intelligence; there are considerable ongoing researches into the field, with many exciting possibilities. â€Å"Agents are here to stay, not least because of their diversity, their wide range of applications and the broad spectrum of companies investing in them. As we move further and further into the information age, any information-based organisation which does not invest in agent technology may be committing commercial hara-kiri.† Bibliography Stuart Russell and Peter Norvig 1995,Artificial intelligence: A modern Approach, Prentice Hall www-cdr.Stanford.edu/nextlink/expert.html [Accessed 13 October 2002] Intelligent Agents on the internet: fact, Fiction and Forecast, Oren Etzioni and Daniel S. Weld www.computer.org/intelligent/ex1995/x4044abs.htm [Accessed 16th October 2002] www.hermans.org/agents/index.html [Accessed 16th October 2002] Intelligent agents likely to cut jobs, alter offices, Kile Martz www.bizjournals.com/kansascity/stories/1998/08/03focus5.html [Accessed 16th October 2002] http://www.agentland.com/ http://sbm-connect.tees.ac.uk/ebuscon/Presentations%20(PPP%20%20PDF)%20Files/Chapter%2011%20Intelligent%20Systems%20in%20Business.pdf [Accessed 13th October 2002] Turban, McLean and Wetherbe, 1996, First Edition, Information technology for managers Improving Quality and Productivity Laudon K. Essentials of Management Information Systems, 2002, Fifth Edition, Prentice Hall

Transformation of Carl in A Bridge to Wisemans Cove Essay -- James Mal

A BRIDGE TO WISEMANS COVE By James Maloney *Compare the character of Carl at the end of the novel with the person you met at the start* James Maloney in A Bridge to Wisemans Cove takes us on a journey into the life of a young, awkward, self-conscious teenager with the name of Carl Matt. We watch Carl grow into a confident, head strong young man through his experiences of making friends and starting relationships. These experiences all lead him to finally feel loved and free. We follow Carl through the challenges that he faces and endeavours to find where he stands in life. The Carl we meet at the end is completely different to the one we met at the start. Carl matures into a person who has friends and high self esteem, someone who is comfortable with his decisions and makes independent choices. At the beginning of the text when he and Harley first arrived at Wattle Beach, Carl didn?t belong, he didn?t fit in with anyone his own age. He arrived with a reputation, constantly shadowing him, seemingly pinned to the name that he bore. Matt. Everyone looked at him and his relatives in disgust. But throughout the story, Carl has tried and succeeded in proving them wrong. Everyone pushes Carl around but through the experience of getting the job at the barge, befriending Skip Duncan, joy, Justine and Maddie, Carl learns to stand up for himself and the people he loves and cares about. He shows this when he stands in the way of Maddie and Nathan when he believes that Maddie may possibly be in harms way. ?It was no different from standing on the barge, confident in what he knew.? Carl has turned into a young man who is confident in what he knows and will let nothing stand in the way of what he thinks is right. Carls jo... ... then meets Joy Duncan and Justine who just like him the way he is, they are not concerned with his social status, they like him because he is a kind, genuine boy. As the text goes on, we watch Carl and Justine?s relationship flourish into something bigger. This helps him with his self esteem. Justine shows him the true meaning of friendship and shows him that he is loved and worthwhile. There is also Carl?s relationship with Maddie. At the beginning of the story, Carl follows Maddie around because he notices her, she stuck out from a crowd. He then helped her on New Years Eve. Maddie was quite cruel to Carl but he never gave up and near to the end of the novel, they form a true friendship. Maddie, Carl and Justines friendship was very important because they all leaned on eachother through hard times, like the hard times Carl and Maddie were going through.

Purchasing Drill Accessories :: Informative Essay

The use of drill accessories are increasing for commercial as well as domestic projects. The reason is that these cordless drill accessories can perform multiple tasks in a short time. Whether you are making a hole in a wall or mixing liquid for painting, it is essential to include drill accessories with other equipment. While purchasing for drill tools, you can get all essential drill parts in form of drill accessory set. This set is considered an essential item for wood and metal applications and also used for other construction tasks. Many experts are of the view that drill accessory works on the base of rotating technology and saves much time and labor cost. It works on the base of rotating terminology that can make a hole or cut the concrete walls. For the accomplishment of multiple tasks, drill bits prove helpful in the space mission and screw driving applications. Electric motor is fitted in this accessory that can make a hole in an object within a few seconds. While working with different applications, you can adjust the speed of the drill that fits to the needs of the task. However, Cordless drill accessories are preferred than others because of their ease of use and built in batter features. In the cordless drill accessories, you will find the battery that can be used in case of electricity supply shortage. The use of this amazing tool has facilitated the workers because they can now complete the task of drilling without much efforts and labor. When you are using drill accessories, you must adopt some essential security measures. It will save you from any type of serious injury. When you plan for cordless drill accessories shopping, you will find different types of drill tools in the market. Here, I am giving you an overvi ew of some functional drill accessories so that you can buy the right drilling driver for your task. Compact drill The purchase of a compact drill will prove cost effective for you because it can be used for drilling and screw driving application at the same time. It is available with integrated keyless chuck and some adjustment tools. In addition, industrial metal and gears are used in its manufacturing that increases its durability. It works similar to cordless drill accessories and easy to use for all drilling applications. Rotary mixer drill Rotary mixer drill is another latest tool that is designed for plastering, painting and concrete applications.

Moments of My Life

Moment Of My Life Life is not made up of minutes, hours, days, weeks, months or years, but of moments. You must experience each one before you can learn how to live it. Well, can't but agree with that. If I was asked to describe the meaning of the word â€Å"life†, I would compare it with making a movie which consists of enormous amount of shots. Each of these reflects a separate and unique moment, which can be happy, touching to the core of your heart, those which make you laugh, shiver or even cry.Absolutely, these moments happen to each of us every day. Some of them we forget as fast as they happen, but others will stay in our heart and mind for the lifetime. I was given an opportunity to describe the very special moment of my life. The moment that changed it, that shook me and turned my world upside down. It was an early morning when my mom was seeing me off at the airport. We were sitting in the cafeteria holding hands and looking at each other without saying a single wor d.I could see tears in her eyes. She looked worried, upset and proud of me at the same time. It's not easy to let your still little daughter go on her first flight to unknown far-far away country and being aware of that you won't see her In the next couple of years. The emotions were overwhelming me. I was terrified and full of courage, worried and excited, already missed my family but couldn't wait to take off. And here I was making a small step out of the plane In New York but a gigantic one Into my new future.Being out of reach for my old world I was dragging through the crowded airport seeking for the familiar face of my only friend in this big apple. Had no back up plan on my mind because I am absolutely convinced that If you are making a change up In your life you should just go for it without any thought of drawing back. My friend was standing in front of me. I was still speechless of everything going on around but so happy to meet the only connection with the new world. It w as late at night.I remember getting off Penn Station and walking couple off blocks to take the other train. It seems pretty funny right now but that time I was wondering if it is ever going to be able to understand the subway map and the endless routes of trains. I can't but say that this thought left my head immediately. After I found myself I the middle of the street surrounded by the impressive skyscrapers being such a contrast to each other, the flow of people still rushing somewhere or Just walking around and so much light that made the streets look like it's a day time.That very second my inner soul and me realized it was my new home. This city with millions of people, great and Inspiring architecture, but tons of garbage In the streets and smell of food trucks is my new world where I want to be, want to find myself and settle down. New York is the city where everyone is equal at the start line. I am sure that this great city can teach you to live your life, to be always In mo tion, to see good and bad more clear, to catch every opportunity that comes your way and to appreciate the certain things when you have them.While talking about me I would say that despite the fact I was terrified at the beginning of what was going to happen to me next I was totally happy and grateful to my life for giving me this chance and experience of all those great feelings and moments. BY pituitary You must experience each one before you can learn how to live it. Well, I can't but agree with that. If I was asked to describe the meaning of the word â€Å"life†, I would country and being aware of that you won't see her in the next couple of years. The excited, already missed my family but couldn't wait to take off.And here I was making a small step out of the plane in New York but a gigantic one into my new future. Seeking for the familiar face of my only friend in this big apple. I had no back up plan on my mind because I am absolutely convinced that if you are making a change up in your life you should Just go for it without any thought of drawing back. My friend was inspiring architecture, but tons of garbage in the streets and smell of food trucks is teach you to live your life, to be always in motion, to see good and bad more clear, to

BP Crisis Communication

A crisis was exactly what British Petroleum (referred to as ‘BP throughout the paper) went through in 2010. It was particularly important to communicate the right way taking all considerations into account. We were wondering how the specific crisis went so wrong and if the use of specific communication strategy was beneficial or not. Hence, the communication strategies used to overcome the crisis can be used by many other companies in the future as guidelines of how to do and, maybe more important, how not to.Also, the intervention from the American government, the pressure from the local community and how the media was used, is extremely important in the BP case. This paper intends to show how BP communicated and reacted throughout the crisis. It will discuss the challenges BP had and it will especially focus on how BP actually reacted to the crisis and how they perhaps should have reacted differently, including the use of communication theories. Finally, the paper will outlin e the consequences of the crisis on both organization and communication strategy.On April 20, 2010, the Departed Horizon oil-drilling rig explosion in the Gulf of Mexico resulted in the deaths of 11 rig workers, but public attention quickly shifted from their deaths to the following environmental and economic damages – the incident was described as the worst maritime oil spill accident in history, as the accident released over 18 million gallons of crude oil into the Gulf of Mexico. Three months passed before BP substantially stopped the leak, all the while the crisis was evilly covered by all news media in the United States as well as internationally.As a result of this, the BP oil spill case serves an excellent example of analysis of BSP crisis communication. L The total cost of BP to indemnify the clean up of the environment and funds to affected workers has reached almost two billion dollars. 2 2 www. Guardian. Co. UK/business/2012/July/31 /BP-departed-horizon-costs Page 4 of 28 Incorporated in 1909 in England , BP has become one of the world's largest multinational companies operating in more than 80 countries 4, leading in oil and as industry, including exploration and production, refining, distribution, extracting and producing renewable energy.The company provides their customers with energy for heating and lighting, fuel for transportation and energy for retail services and petrochemical products. BP employs approximately 80,000 employees, and sales and other operating revenues add up to $375,517 million in 20116 . Finally BP is also a conglomerate owning several brands such as: ORAL, ARC, Castro, amp and The Wild Bean Cafe ©. Having settled â€Å"BP and the Departed Horizon Crisis† as the case, which this paper ill centre around, the problem statement is as follows: To which extent has BP successfully communicated during the Departed Horizon Crisis?In order to examine the problem statement the paper will attempt to address the followi ng issues: I) Characterize how BP communicated during the crisis. It) Analyses the effects of BSP communicative strategies. Iii) Discuss and evaluate whether or not BP has been successful in dealing with the crisis seen from a communicative perspective. In this paper a broad spectrum of empirical data has been used. However, most of the empirical data has been found through articles in different newspapers – the use f different newspapers and their viewpoints has given us very diversified inputs throughout the paper.But this does not exclude a use of quantitative data which, amongst other things, have been used to illuminate the several attempts of BP to use CARS-strategies, and underline the immense loss of fiscal funds the crisis has caused. The rather specific choices of qualitative data have been used to shed light on the different views of the crisis – and the several statements pointing toward similar conclusions have helped to support the points made and clarify a rather eventful crisis.In addition, the conclusions deducted throughout the paper have been supported by theories worked with in classes and the additional http://www. BP. Com/liveliness/BP_internet/global/Stating/global_assets/ downloads/F/ OFF_2007_2011 _full_book. PDF 4 http://www. BP. Com/liveliness/BP_internet/global/Stating/global_assets/ downloads/l/BP_20-F_2009. PDF 5 http://www. BP. Com/Congregationalists. Do? Category=3&contentld=2006926 6 http://www. BP. Com/Congregationalists. Do? Category=3&contentld=2006926 page 5 of 28 theories which proved to be necessary or helpful.In the beginning of the work with he case study of BSP crisis response, a pretty sufficient understanding of the crisis as a whole was in place, we assumed, but as the paper progressed and different theories were applied our understanding of BP and the relationship to their stakeholders grew. The quantitative data used also comes from BSP own publications as well as articles from different internationa l online newspapers. Of course, the reader must have in mind that BSP own figures, occasionally, might have been used to strengthen their image and not only inform the reader.When examining and analyzing the Deep Water Horizon oil spill crisis, this paper is et out to delimit the case by answering our initial problem statement. To narrow our focus down to the relevant aspects in the case we have decided to delimit our analysis to the main stakeholders, including: (I) the American government; (it) the local society; and (iii) the media. This has been done not only due to the formal constraints of the paper, but also in order to go into depth with these stakeholders, who we reckon to be, of major importance to this crisis within the given delimitation's of this paper.In order to answer this paper we find it necessary to make a common definition of a crisis. Extensive studies have been carried out on crisis communications over the past two decades. A brief review of literature on this subject reveals that there are several definitions of organizational crisis, depending on theorists' different viewpoints on what constitutes a crisis. Herman claimed that to reach the level of a crisis, the event must contain three negative attributes: surprise, threat, and short response time.Surprise means that the organization did not prepare for the magnitude of the crisis. Threat means that the event poses a threat to the organization's financial security, customers, surrounding environment etc. Short response time refers to the urgent need of preventive action in order to stop an intensification of the crisis. 7 For the purpose of this paper the following deduction of a definition off crisis is found useful: Hermann, C. F. , 1963. Some consequences of crisis which limit the viability of organizations. Administrative Science Quarterly, 8, p. 61-82. Page 6 of 28 W.Timothy Combs utilizes the interconnectivity of these three attributes to make his definition of a crisis: â€Å"A crisis can be defined as an event that is an unpredictable, major threat that can have a negative effect on the organization, industry, or takeovers if handled improperly. â€Å"8 Furthermore, according to the very same book, organizations frequently find themselves in situations that can be identified as crisis. There are no exceptions; â€Å"We must accept that no organization is immune from a crisis anywhere in the world even if that organization is vigilant and actively seeks to prevent crises. † (Combs & Holiday, 2010: p. 7). This reality urges the need for preparation and readiness to respond – what is called crisis management. The major difference between handling an issue and an actual crisis is that an issue turns into crisis when it goes from the company domain into the public domain; a situation, which sometimes is inevitable no matter how competent the management is. 9 10 The term ‘a crisis within a crisis', or a so-called ‘double-crisis', as coined by Danish professors Finn Freedmen and Winning Johannes, refers to a situation where a company experiences a communication crisis that overshadows the initial crisis. 1 A crisis within a crisis naturally has negative implications for a company since it emphasizes weaknesses in the company's internal structure and/or interactions with stakeholders. The term is relevant to apply to this particular case because its give an accurate description of the consequences of BSP communicative strategy. The agenda setting theory distinguishes between two levels of agenda setting in the media. The first level deals with the significance of an organization where an organization receives more media attention then other related organizations.The second level relates to associations or topics that the public associates with a particular organization. 12 One of the important aspects when dealing with the media is the agenda, which stakeholders often associate to organizations. The agenda settin g theory is related to this assumption and therefore is significant to apply when analyzing BSP media relations. Combs, T. W. & Holiday, S. J. 2010. The Handbook of Crisis Communications. Wiley- Blackwell, p. 18. Benches, Claus. Guest Lecturer, Global Media Relations Manager at Damon.Gave a lecture on crisis communication on Tuesday the 20th of November. 10 Benches, Claus. Guest Lecturer, Global Media Relations Manager at Damon. Gave a lecture on crisis communication on Tuesday the 20th of November. From his PDF on Crisis Communication. 11 http://pure. AU. Dc/portal-cab-student/files/10106/ Crisis_communication_-_Not_Just_peanuts. PDF 12 Cornelius, Jeep. 2011. Corporate Communication – A Guide to Theory and Practice. Page 146. 9 page 7 of 28 An important element for an organization, according to protect its own reputation, is the communication with stakeholders.As a company might have many different stakeholders it is important to have a tool to categories them. Once the stak eholders are categorized the organization will be able to decide, how and how much it should communicate with this stakeholder. In general when describing stakeholders this paper is using Edward Freeman's definition of a stakeholder: A stakeholder is any group or individual who can affect or is affected but the achievement of the organization's purpose and objectives†. 3 In order to categories stakeholders this assignment will use the ‘Stakeholder salience model'. The superiority of this model is that while being extremely simple to use it is also extremely precise when in its finding of how much effort the organization should use when communicating with each category of stakeholder, and even more important; how the company should communicate with its various stakeholders.The model is based on â€Å"salience†, defined as the visibility of the stakeholder to the organization using three parameters; (a) the power of the stakeholder group, (b) the legitimacy of the c laim laid upon the organization, and (c) the urgency of how important the claim is according to the need of an immediate action. The purpose of the model is to define how salient a stakeholder group is. The model is based on seven different types of stakeholder groups; (1) Dormant stakeholders are the ones with dominant power and the ability to affect other groups of stakeholders.They are not able to legitimate their claims, and power will only be dormant but have an influence anyway. Mostly, this would be wealthy stakeholders. (2) Discretionary stakeholders are stakeholders with a high degree of legitimacy but without the necessary power to influence the organization. (3) Demand stakeholders are the ones with urgent claims but without power and the necessary legitimacy to enforce them. (4) Dominant stakeholders are the group of stakeholders representing both legitimacy and power.These are stakeholders having great influence on the organization, e. G. Owners and big investors. (5) D angerous stakeholders are people with both urgent and claims on power. In addition, these will often attempt to use unfair† means. (6) Dependent stakeholders are those who rely on others to get their claims carried out – mostly because of the lack of power. Finally, (7) Definitive stakeholders can be identified as the ones having both legitimacy and urgency as well as power. These are the most powerful stakeholders and it is strictly Cornelius, Jeep. 011. Corporate Communication – A Guide to Theory and Practice. Page 42. Page 8 of 28 necessary for the organization to keep close communication with these. Normally, it would be definitive stakeholders who can also be classified as the shareholders. Once the stakeholders are categorized, the firm can now decide on strategy of communication. When researching strategies of communication, this paper has used the basic framework of communicative strategy given to us in â€Å"Corporate Communication – A Guide to T heory and Practice†14 .The framework generally provides three different strategies. This framework is chosen because of its simplicity when it comes to numbers of strategies and complexity when it comes to ways of communicating within each strategy, hence the framework provide an extremely useful tool when analyzing and discussing what mind of communication BP has conducted, how it worked, why the strategy did not work and why it might have worked better: Informal strategy is a strategy of simple informing about something through; newsletters, press releases etc.This strategy is hence based on the idea that objective information about the organization should be passed on to the relevant stakeholders. Persuasive strategy uses tools such as advertising and meetings/discussions with stakeholders. The general aim of this strategy is to change the stakeholders' image into a more favorable one or to create particular understanding with the organization's decisions. The strategy will not create change in the organization, but rather aims to create change in the stakeholders' perception of the organization and its decisions.Dialogue strategy aims to create a mutual understanding and/or mutual decisions between stakeholders and the organization. Timothy Combs divides a crisis into four different types with two different aspects. The four types are; faux pas, terrorism, accidents and transgressions. In addition, a crisis in this matrix can be of either internal or external, and intentional or unintentional characteristics. 1 5