Electric Power Usage Research Paper Example | Topics and Well Written Essays - 500 words

Electric Power Usage - Research Paper Example The table depicts the energy consumption in a week; this will eventually be translated into a year. Since energy is billed in Kwts per hour, the energy consumption of this household in the last one month, which is consistent with the billing policy that is sent every month, the total power consumption is 750-Kilo watts/hour in this household. Assuming that the trend is uniform and the average of the power consumption in the one month is used to reflect the annual consumption then this will be 9000-Kilo watts/hour in a year. This wattage expressed in duration per second will be; 9000Kwts * 3600 (second in 1 hour) =32400000 joules/ sec. (32.4 Mega joules per second). In relation to the information above it can be appreciated that the energy consumption per household is quite high and apart from electricity, it is hard to sustain the energy demand more so using other non-renewable energy sources like coal. It is therefore vivid that the amount of coal required to produce the stated energy can be calculated. It is known that the energy released by coal can be calculated in Kilowatts per hour for a defined mass of the coal compound (Stoyke, 2007). This is 6.67Kwts/hr/kg; this cannot be efficiently transferred to usable power since the thermodynamic efficiency of coal to transfer the energy is about 30%. This is about -2.0 Kwts/hr/Kg. thus the energy that is efficiently transferred is 4.7 Kwts/hr/Kg (Meier, 2006). To sustain an annual energy demand in a household, a total of about 1915 Kilograms of coal is required. In regard of the above table of power consumption, the top five energy consumers in a household comprise of cloth washers, microwave ovens, driers, refrigerator, and dishwashers. This is not the only energy consumption in a household, there are other energy consumptions that do not take place within the household though at

Social Contract Theory of John Locke Essay Example for Free

Social Contract Theory of John Locke Essay Given the honored and extensive authority that the social contract theory upholds, the supposition still endures various assessments. The view that people’s ethical and political responsibilities are reliant upon a contract between them to structure a society is also precisely linked with current ethical and political theory. John Locke (b. 1632, d. 1704), a prominent truth-seeker among other professions of the 17th and early 18th centuries, is primarily recognized for the creation of his influential social contract theory. Censors dispute that most people are raised within an existing society and not presented with opportunity to opt a social contract; therefore, Locke’s social contract theory is considered invalid. Locke’s refute to the censors alleged that a keen understanding of how social contracts transpire must occur prior to the advancement of individuals in the social order. This paper will entail the social contract theory of John Locke and how the values identified are consistent with the criminal justice system (Uzgalis, 2007,  ¶11). The State of Nature. The social contract theory commences with the idea of a state of nature; the central idea that criminal justice systems are not in existence. The breakdown of effects result in the lack of protection provided; the inability to instill safety measures; and the neglect of civil rights pertaining to property and to individualized refuge. Public order is in disarray resulting in people relying on self-help methods to resolve differences of opinion. The individuality of existence within a state of nature is one of the primary areas under discussion that differences occur among social contract philosophers. Unlike Thomas Hobbes, John Locke’s colleague in philosophy, whom references a state of nature as a battle of everyone in opposition to one another, Locke references state of nature, not as a circumstance of warfare, but nevertheless a problem. Locke theorizes that a community not possessing access to a normal arbitrator would signify that each person would mediate individual cases. This style of adjudication would create recurrent heated discussions being settled by personal brutality. Despite the different thinking techniques of Locke and Hobbes, the agreement exists that the state of nature would generate a sadistic and apprehensive atmosphere (Reese, 2001,  ¶11-12). The State of Nature is a condition of ideal and inclusive autonomy to manage life in the best method one deems necessary, according to Locke. To add clarity, Locke’s proposal was not to include the freedom to do whatever one desires despite the consequences. Although the State of Nature presents a status that municipal influence and government does not discipline individuals for illegal indiscretions, doctrines remain in subsistence. Furthermore, the State of Nature assumes equivalency to others and is equally skilled to make determinations ensured by, what Locke claims, the foundation of decency; the Law of Nature. Locke’s viewpoint is that the Law of Nature was provided to mankind by God with the instructions not to cause injury to one another in regard to physical condition, independence, existence, and property. In Locke’s words, â€Å"Moral good and evil is only the conformity or disagreement of our voluntary actions to some law, whereby good or evil is drawn on us, from the will and power of the law-maker† (Laslett, 1967, p.18). Locke refutes Hobbes theory by making claim that because God owns every living creature, and every human being is considered equivalent, people are not at liberty to eradicate what belongs to God. The State of Nature works as a set of guidelines allowing people to pursue unreservedly happiness by following personal areas of interest and creating personal diplomacy (2001,  ¶3-4). In this observation the decree is established on God’s determination but strangely, the theory is not consistent with Locke’s assertion pertaining to the Law of Nature. Locke elaborates that because the State of Nature is reasonably passive; people are entitled to seek this happiness free from hindrance. Although the hypothesis is to some extent contradicting, Locke’s theory does add simplicity to the reasoning of why an unbiased criminal justice system is detrimental to society. Two Treaties on Government Locke surmised in the Two Treaties on Government, 1686, originally people agreed to a governmental social contract to ensure safeguarding of property rights and security from aggression. In lieu of defense, community members presented authorization to the government for verification that community members wished to be presided over. Locke made public the claim that any government official can justifiably be replaced if he or she neglects duties or takes advantage of the position. Locke’s view of righteousness is germane to the debate of the United States Criminal Justice System because initiators depended upon Locke’s words of wisdom to direct the assembly of an organization of self-governing supremacy. Undeniably, numerous pieces of the United States Declaration of Independence duplicate portions of Locke’s Second Treatise precisely. For example, citizens are gifted â€Å"with certain unalienable rights . . . governments come about to secure the rights and to gain just powers from the consent of the governed† (Laslett, 1967, p. 61). Locke’s statement pertaining to how disparaging the government can become and the entitlement the community members obtain is also noted in the Declaration of Independence. Locke’s dispute resulted as the starting point for structuring an admired government in addition to a validation for rebellion. Political convictions formerly sustained the proposal of community members providing government requirements. The concept of an innovative social contract in which the government subsisted to provide requirements of the administration created a novel reflection that upheld Lock’s thoughts, â€Å"a person surrendered to the authority of the state only the amount of freedom necessary to ensure protection of the rights of other citizens† (1967, p. 3-7). The fresh proposal concerning contractual association of the government to community members was a creation of an inventive, rising middleclass (1967, p. 15). Conclusion Based on the preceding theories of the highly regarded John Locke, the values identified within the State of Nature are noticeably consistent with the values of existing day criminal justice system. Although challenging, without the basis of Locke’s hypothesis on social contract, the criminal justice system would lack genuineness and compassion creating an unreceptive environment. Locke’s theory makes current the immeasurable array of associations and connections interlinking people. Social contract theory is undeniably a part of the criminal justice system at present and in the projected future. Locke’s theory, along with other reputable premises, will forever compel the reflection upon the nature of people and the connection to one another. Reference Laslett, P. (December 1967). Two treaties of government and the revolution of 1688. Locke: Two Treatises of Government. Cambridge Texts in the History of Political Thought. (ISBN- 13 : 9780521069038 | ISBN- 10: 0521069033). Reese, R. (September 2001). Social justice theory. Journal of Ethics and Justice. Uzgalis, W. (2007). Historical background and locke’s life. Stanford Encyclopedia of Philosophy.

Identifying Personal Development And Learning Styles Personal Development Essay

Identifying Personal Development And Learning Styles Personal Development Essay It is obvious that as a practicing first-line manager, your own success is more likely if you use your talents (strengths) to their full extent to exploit the opportunities that present themselves to you. Also, its important to understand your weaknesses so that you can manage them out of your daily work activities and thereby also eliminate any threats which may affect your potential to progress. SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis (Stanford Research Institute 1960-1970) is a useful technique to identify and analyse, in a proactive manner, these four areas. Not only that, but it also provides a good framework for reviewing your own personal development needs and enables you to work on your personal strengths and abilities to distinguish yourself from your peers and hence forward your career My own personal SWOT analysis has been appended to this assignment (see Appendix A). Own Learning Style(s) Identified Honey and Mumford (HM) use the terms activist, reflector, theorist and pragmatist to represent the four key learning styles (or preferences). These correspond to stages in the learning cycle and are based on earlier work by David Kolb (and indeed are used interchangeably by some authors with the terms in the Kolb model). Both models are particularly interesting from the perspective that they offer a way to understand peoples different learning styles but also explain a cycle of experimental learning which can be applied to everyone. The four HM key stages and styles are typically presented at north, east, south and west on a four-stage cyclical flow diagram. This actually expresses a four stage cycle of learning in which having an immediate or concrete experience provides a basis for reviewing/reflecting on the experience. These reflections are assimilated into conclusions from the experience producing implications for action which enables the planning for the next step, i.e. the creation of a new experience. In theory, the learner should visit all four points of the diagram i.e. a cycle of experiencing, reflecting, thinking and acting. They, and their relationship with Kolbs learning styles, are explained in the Table A below: Table A -Comparison of HM Learning stages/styles with Kolb learning style Kolbs Learning Style HM Learning Style/Stage Preferred learning opportunity Personality characteristics of learning style Accomodating Having an Experience/Activists Practical, hands on Here and now; seek challenge and immediate experience; Bored by implementation Diverging Reviewing the experience/ Reflectors Gather information, consider and analyse Stands back; Thoughtful; listens before speaking Assimilating Concluding from the Experience/ Theorists Logical approach, gathers facts to form theories Rational, objective, dismisses subjectivity Converging Planning the next steps /Pragmatists Seeks new concepts, problem solving Likes quick decisions, bored with long discussions Most people naturally prefer a certain single different learning style. Various factors can influence this and Kolb defined 3 stages of a persons development and suggests that the integration of the four different learning styles improves as a person progresses through the development stages. I have completed an HM Learning Style Questionnaire and my preferred learning styles are Theorist and Pragmatist. This means that I have a preference for a concise and logical approach to learning. For me, ideas and concepts are more interesting than people. I do require a good, clear explanation; however, one slight difference to this learning style is that I like to see that the theory can work in a practical situation as well. I enjoy technically related tasks such as gathering and understanding wide-ranging information and trying to organise it in a logical format. In a formal learning situation, my preferences are reading and lectures and having time to consider things. I like to solve problems and make decisions by finding answers to questions. This was not particularly surprising because my job role as an Assurance Specialist involved in auditing actually demands a logical style of approach to deliver work effectively. Furthermore, problem solving is also a key skill for me in advising teams on how to resolve issues with their management processes. Analyse Learning and Development Options and Identify Barriers and Support mechanisms Two learning/development options one for self, one for organisation My personal SWOT analysis identified two development options as follows: To improve my soft skills such as assertiveness, communication and the effectiveness of my decision making. This would help in meeting the needs of the organisation and of the needs of my immediate team. To gain a better understanding of how Environmental Management is applied by Network Rail at a Project level. This would help me to gain an insight as to how I could apply some of the information I learnt on my Institute of Environmental Management (IEMA) course in a practical scenario. I have added both of these onto a Personal Development Plan, which is attached as Appendix C to this assignment. In terms of development opportunity (1), I could make use of the many e-learning tools available via the Network Rail Intranet site as well as obtaining support from my line manager to check my progress as well as him giving me tasks which will help to develop my soft-skills. I could monitor the success of this personal development through regular (once a month) one-to-ones with my line-manager and via my 6-monthly performance reviews. Listening and learning from what has worked well for him in the past would align itself well with the pragmatic approach I prefer to learning. With respect to my own personal development opportunity (2), there is a course offered through Network Rail about Environmental Management within Projects. I have booked a place on this course and intend to follow it up by conducting audits on Environmental Management across Infrastructure Projects as part of the 2010-11 National Core Audit Programme. In this way, I shall be able to speak to Environmental Specialists who apply Environmental Management techniques as part of their daily activities an gain a deeper understanding of what is involved. Identify Barriers to learning and how to overcome them Some potential barriers which could prevent or slow down my progress are time-constraints, distractions and issues with the suitability of e-Learning to my own learning style. These barriers could be overcome by planning a time-out for learning within my weekly schedule and ensuring that I commit to not allowing any work activities to interfere with it. Im unsure as to whether e-learning will complement my learning style because the courses do not present practical situations to apply what has been learnt. However, perhaps regular feedback sessions and suitable tasks set by my line-manager may serve to complement the e-learning courses. Considering the Environmental Management training I have identified, after completing the course, I will need to liaise with the staff drawing up the National Core Audit Programme so that I can be included for the Environmental Section of at least 2 of the audits across the Investment Projects portfolio. The auditing aspect will require me to make careful preparation before visiting the Programme so that I have a full awareness of how they are managing the Environment. This could involve looking at their Environmental Management Plan in detail and compiling a series of relevant questions before I make the visit. Both the training and my IEMA qualification should enable me to do this and carry out the audit effectively. Support mechanisms for self-development I would look to support from my line-manager and team members through the use of formal (1-2-1s) and ad-hoc reviews of my progress. Regular teleconferences or face-to-face meetings with members of the cohort who attended the same Leading and Managing Teams course could also be set up, where we could discuss our own personal progress and problems. These may prove to be extremely beneficial from a learning perspective for all concerned. I would also like to involve the Investment Projects Environment Manager and Environmental Specialists from the Programmes from the perspective of them being there to provide expert advice on technical questions. Two other support mechanisms which suit my learning style are testing and feedback. I am most comfortable with regularly testing my new skill sets as demonstrated with the Environmental training taking what I have learnt and applying it to actual situations in the workplace and obtaining feedback on what I did well and what I should look to improve on next time. This would provide me with the assurance that, not only do the techniques work, but also that I am progressing in the right direction. It would be an invaluable confidence builder both in my abilities and that the learning plan is delivering the desired results. Monitor and Evaluate Self-development One method to monitor and evaluate self-development I would monitor and review my learning using a learning log. This could be used to plan learning activities as milestones on the way to achieving the completed development activity and as a reference to check that milestones are being completed on time (through one-to-ones with the line manager). The log allows the user to focus in on the particular learning areas which are important to him, and to visualise the progress being made. For me, this would apply to areas such as assertiveness, communication skills and Environmental knowledge, for example. The log will allow others, such as team members and the line manager to understand what it is that an individual is trying to achieve and provide assistance and feedback where it is required. In addition, the learning log is a good tool for recording feedback, enabling the noting down of what went well and what could be improved with each learning activity as well as how the approach can be changed next time. Eventually, it should indicate for me, whether soft skills are still a learning area of me or whether I have shown, through practical demonstration, that I have mastered them. An example of a real learning log (extract) is attached as Appendix B to this assignment. For feedback to be effective, the Action Impact Do/Develop/Different model should be applied That is, the person giving the feedback should provide examples of what was done, its impact on the situation, and what should be done differently next time. This would allow the recipient to consider a different approach and modify his behaviour accordingly This is particular relevant to the skills I am trying to develop. Appendix A Personal SWOT Analysis Weaknesses I have a strong compulsive need to do things quickly especially when my to do list is long. Sometimes this has compromised my decision making ability. My need to keep the customer happy can sometimes lead to me acquiescing to his needs rather than defending my own position. I have a tendency to over-analyse what has happened in certain situations (even after I have prepared really well for them) when events have moved on and I can no longer do anything about them. I get a little nervous about presenting to members of the team and to customers. This can mean that these types of Presentation do not engage the audience as much as Id like. Strengths I have good analytical skills. I enjoy looking through data to determine conclusions and action planning to improve the current situation. I am very conscientious and deliver all work to the very best of my ability. I pride myself in organising my work so that it is always delivered on time. I go out of my way to satisfy or delight the customer. I am completely committed to the success of the team that I work for and creating a good impression of what we do to our customers/stakeholders. I have worked in Assurance/Quality related roles for over 20 years and have experience in most aspects of these functions. My job means a lot to me, I take it very seriously. Threats Potential future reorganisations meaning redundancy. Assurance becomes no longer a priority for the company. Perceptions and criticisms by customers and own team. 2012 move to Milton Keynes and the feasibility of commuting there on a daily basis. My current need for a lot of support from my line manager could be perceived that I no longer feel comfortable in taking decisions without someones help. Opportunities We are currently developing a customer feedback questionnaire which we will get our main stakeholders to complete. The output from this should help us to determine the areas we need to improve on going forward We have a lessons-learnt process and are always looking to improve the auditing process. That I take the knowledge Ive accumulated from the Leading and Managing Teams course and consistently look back on it and apply it to my day job. That I continue to work with my main customers to build a reputation with them so we are clear about what we expect from each other and that this leads to a positive working relationship which delivers results. Appendix B Learning Log (extract only) Date From Date to Activity What went well? What didnt go well? What you will do differently next time Nov. 09 Dec. 09 E-Learning Course Assertiveness The course was completed and all of the intermediate assessments passed There was no interaction element to the course how do you know it works in practice? This needs to be incorporated into 1-2-1 meetings to get feedback from line-management on how I am progressing/if this is still a development area for me. 23/11/09 23/11/09 Opening Meeting CrossRail audit All of the points on the agenda were covered Organisation was poor jumped from one topic to the next and then back again in a haphazard fashion Improve preparation plan out exactly which points to cover and at which times 12/01/10 12/01/10 Closing Meeting CrossRail audit Far more relaxed, bought the correct key people to the meeting deflected difficult questions to them at the right time Nothing to report do it the same next time. Carry this lesson forward for the 2010-11 National Core Audit Plan (NCAP). 15/02/2010 15/02/2010 One-day training session Environmental Management on Projects A good internal training session about how to apply the requirements of the Network Rail Environmental Management Handbook (Guide to Railway Projects Delivery Manual 04) on Projects Additional time to built into the course to go through some of the worked-examples in further detail. This knowledge needs to be applied in future as part of the 2010-11 NCAP audit of Environmental Management. Opportunity to be sought to take part in this section of the audit. Appendix C PERSONAL DEVELOPMENT PLAN Preferred Learning Style/s Pragmatist/Theorist What do I want or need to develop? What actions / development will I do to achieve this? How will success be determined? Target dates for review and completion 1.My soft skills; e.g. Assertiveness, Listening, Coaching abilities E-Learning. Mentoring from my Line Manager. Experiences in my role. 1-2-1s; performance review meetings; improved confidence April 2010 (end of year review) 2. Understand Environmental Management on Network Rail Projects Network Rail course Environmental Management within Network Rail assisting National Core Audit Programme with Environmental auditing aspects. I will be able to carry out effective Environmental Audits of Network Rail Programme/Projects as determined both by Environmental Specialists on the Programmes and by the Investment Project Environment Manager. October 2010 and April 2011

The Examination of the Residential School System in Canada Essay

Education is an essential aspect in our ever-changing societies. It is used as a means of transmitting concepts, knowledge, and values, often to younger generations (Ravelli & Webber, 2010). Education and schooling differ in all societies, varying based on the methods of teaching of different cultural groups. For instance, Canadian Aboriginal people were taught based on the needs of their individual families and class. This greatly differed from the European system of education, which stressed adequate involvement with all of society. Though the Aboriginal manner of education was efficient and effective, the Europeans wanted to bring a change to their previous practices. As seen in the film, Education As We See It, European missionaries established a form of formal education for Aboriginal children, which was to be governed at residential schools. However, this tradition did not last long due to rising conflicts. European missionaries believed Aboriginal children were in need of assistance to become more civilized, and wanted them to be integrated into their European culture (Ravelli & Webber, 2010). Once sent to residential schools, the children were prevented from seeing and speaking to their families, aside from very short periods during the year. They were also subject to harsh treatment, and on some occasions, physical and sexual abuse. Residential schools were later deemed immoral, and unethical, and are completely non-existent today. Nonetheless, sociologists still study the effects and methods used by residential schools, often through common theoretical perspectives and basic sociological concepts. One theoretical perspective that can be associated with residential schools is the conflict theory. In the eyes of confli... ...d. Through an understanding of theoretical perspectives, and basic sociological concepts, the residential school system can be understood. The conflict theory correctly describes the residential education system, and it presents an accurate understanding of the destruction of Aboriginal culture. Socialization, culture, social inequality, and modern social theories all further explain the residential school system, and the effects it has on both the Europeans and the Aboriginals. Recognized now as a mistake, the use and removal of residential schools will forever be noted as a changing point in the struggle faced by the Aboriginal people of Canada. References: Ravelli, B., & Webber, M. (2010). Exploring Sociology: A Canadian Perspective. Toronto: Pearson. Geraldine, B. (Director). (1993). Education As We See It [Documentary]. National Film Board of Canada.

Vidding and Copyright Infringement

Many people have become semi famous from others vidding content that they uploaded or appeared in. A few semi famous people, extra ordinary personalities, that come to mind are the Double Rainbow Guy, aka Yosemitebear, Sweet Brown, and Antoine. Without â€Å"vidding† these people would not have had any fame or acknowledgement whatsoever. There is a fine line between copyright infringement and vidding. One factor that I think plays an important role in differentiating the two is if a video is modified from its original version and an artistic twist is added.Art is intellectual property, and by adding your own property to it, makes it your own. The Double Rainbow video is a great example. This video was up on the YouTube sight for quite some time before being discovered by talk show host Jimmy Kimmel who posted a tweet with the YouTube link on his Twitter account. From there the video spread like wildfire and people were interviewing the maker of the, Paul Vasquez a Yosemite Par k resident. Three days later, a well-known auto tuner made a remix video with a song out of the double rainbow video.The song was made available on ITunes and the profits are split 50/50 with Paul Vasquez, who made the original video and the remix auto tuner, known by user name schmoyoho. When the person vidding the original pays royalties or splits profits, then I think this is not copyright infringement because they are paying their dues. If a person profits from using the original version in their new formatted version, then they should have to pay the original owner a portion, it is only fair. I think this is the fine line between self-expression, freedom of speech, and copyright infringement.If you are looking to profit from the content without consent than that is unethical. However, if you are adding your own perception of a television show or video just to express your point of view then this falls under freedom of speech. With social media more popular than ever, there are millions of people copying and sharing original tweets of Facebook posts. We are absolutely unable to monitor every person’s tweets and posts. With such a broad spectrum of what falls under copyright infringement and what falls under self-expression, we as adults have to be able to use judgment based on ethical reasoning.Lawrence Kohlberg categorized different stages of moral development. People have to use their morals and ethical reasoning to draw a line under the copyright laws. You know when you are stealing someone else’s ideas. The bottom line is that credit should be given where credit is due. References: http://knowyourmeme. com/memes/double-rainbow Lawrence, A. T. & Weber, J. (2011). Business and Society: Stakeholders, Ethics, Public Policy (13th ed. ). New York: McGraw-Hill/Irwin. ISBN: 978-0-07-813715-0

NUMBA 1 assignment Strategic Planning Essays - Strategic Management

NUMBA 1 assignment Strategic Planning Essays - Strategic Management The success or failure of a business is attributed to its strategy'. You are required to make a critical comparison between two companies in the same industry and compare and contrast their strategic choices which led to their differences as you would see today. Make a clear distinction between their standing as you perceive. In developing your analysis, explain the relevance of micro and macro environmental factors and how these companies responded to these factors. Make specific references to SWOT, PESTEL, Porter's 5 Forces as relevant to the companies you have chosen for this analysis. (1,250 - 1, 50 0 words) Business landscape is rapidly changing in many industries in Sri Lanka due to global trends and government priorities. These changes will require innovative strategic initiatives to be adopted by old established companies if they have to survive the onslaught of competition that will sweep the local environment over the next few years. Ide ntify a specific sector and discuss what long term and short term innovative strategic initiatives that could be adopted in order to survive such an onslaught of competition. (1,25 0 - 1, 500 words) You feel the Vision, Mission and Values are merely decorative statements. How will y ou make Vision, Mission and Values more effective to realize sustainability in an organisation's success? State examples from local or international companies. (1,000 - 1,250 words) Select 5 strategic planning tools and illustrate the usefulness of these tools in relation to practical examples. (1,000 - 1,250 words)

Reeking and Wreaking

Reeking and Wreaking Reeking and Wreaking Reeking and Wreaking By Maeve Maddox Here is a very small sampling taken from the web of the misuse of the verb reek: We had an extremely wet May and June this year in New York City which reeked havoc on many tomato gardens. SISTERS reeked havoc at Momma’s Christmas Dinner today Although this helped in some patients, it reeked havoc with others, resulting in law suits. that virus sure reeked havoc with your computer The deadly twister that reeked havoc in Tuscaloosa. Note that each error is an attempt to use the idiom to wreak havoc, meaning to cause destruction or devastation. It would be correct to say, A huge earthquake wreaked havoc on Japan, or A string of tornadoes wreaked havoc on Alabama. By itself, wreak means to give expression to; to vent. The word havoc, meaning devastation, derives from a French idiom, crier havoc, to cry (or shout) havoc!' The most familiar use of this word occurs in Antonys funeral speech in Julius Caesar: ANTONY: †¨Caesars spirit, ranging for revenge, †¨ With Ate by his side come hot from hell, †¨ Shall in these confines with a monarchs voice †¨Cry Havoc, and let slip the dogs of war; Shouting Havoc! was the signal to begin battle, the result of which would be destruction. The verb reek derives from two similarly pronounced words that were familiar in Old English times. One meant to emit smoke and the other meant to emit a strong smell. Today the verb reek may have either meaning: The reeking chimney annoyed the neighbors. After putting gas in the car my hands reeked of gasoline. The homes and clothing of smokers reek of burnt tobacco. His actions reek of self-love. Bottom line: Chimneys, cigars, and bad relationships reek. Hurricanes, earthquakes, ice storms, droughts, and war wreak destruction and devastation. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Misused Words category, check our popular posts, or choose a related post below:15 Terms for Those Who Tell the FutureEnglish Grammar 101: Verb MoodTypes of Plots

Corporate Social Responsibility at MTN Nigeria The WritePass Journal

Corporate Social Responsibility at MTN Nigeria INTRODUCTION Corporate Social Responsibility at MTN Nigeria INTRODUCTIONWHAT IS CORPORATE SOCIAL RESPONSIBILITY?IMPORTANT OF CORPORATE SOCIAL RESPONSIBILITYREASONS FOR COMPANY TO ADOPT CORPORATE SOCIAL RESPOSIBILITYCORPORATE SOCIAL RESPONSIBILITY AND STRATEGY OF MTN NIGERIAREASONS FOR THE FOUNDATIONECONOMIC EMPOWERMENTDescription of the Project:Description of the project:Objective of the project:CONTRIBUTIONS OF CSR TO CORPORATE STRATEGYCONCLUSIONRECOMMENDATIONSREFERENCES:Related INTRODUCTION Corporate social responsibility has been in debate since 20th century even though there are some argument for and against if it were really the duty of an organization to provide some kind of social service to the people in its environment even though the organization generate both natural and human resources from its environment while at the same time exploit the opportunity meant to be enjoy by the society if without the existence of such organization. The Corporate Social Responsibility of MTN as an Information and communication Technology (ICT) Company will be examine in detail. MTN communication limited as a subsidiary of MTN group is the largest .MTN is one of the leading telecommunication Company that operates in 21 Africa countries and Middle East. MTN secured a licensed to operate digital Global System of Mobile Communication in Nigeria in February 2001 from the commission and based on that, it emerged as the first telecommunication company to make a commercial call on its GSM network. The rapid growth in the business of MTN as a telephony company gave the need for the company to provide its environment with some social service. WHAT IS CORPORATE SOCIAL RESPONSIBILITY? The Corporate social Responsibility (CSR) has been defined by different scholars so as to different individual stakeholder.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Lawrence and Webber, (2008) ‘‘Corporate social responsibility (CSR) means that a corporation should be held accountable for his action that affect the society, people, communities and their environment.’’ CSR simply means the duty of care owe the people, society and its environment at large by an organization as a result of damages cause in the line of carrying out their daily business activity such as air pollution, Evaporation, flow of waste in the stream, damaging of road due to heavy vehicles to mention but few. The social responsibility requires an organization to equate the goals to be achieved and the cost of achieving the set goals. COMPONENT OF CSR Ethical Consumerism Community Involvement Treatment of Customer Socially Responsible Investment Environment Treatment of Employee Social Reporting Cause related marketing As earlier said, the argument for and against Corporate Social Responsibility will be examine ARGUMENT FOR ARGUMENT AGAINST Promote business value and reputationConsistency in the profit of an organization.Amend any social discrepancies that may occur.Serves as a medium of saying thank you to the populace Reduction in profit sharingAdditional cost of competing with competitorsCost may outweigh benefit in terms of investing in capital projectLack of Information IMPORTANT OF CORPORATE SOCIAL RESPONSIBILITY In some years back, the concept of Corporate Social Responsibility (CSR) has been a very good strategy for most of the business organization to escape through in a highly competitive market environment. In a situation where there is a variation and unstable scales of preference from the consumers, the Corporate Social Responsibility is therefore the most applicable tool in order to survive. In the event of Corporate Social Responsibility, most company tends to reduce their operating cost for been socially and environmentally responsible. A company been socially responsible tends to gain the attention of more customers. And it makes the company be more visible and while serves as a medium by which the company will communicate to the public. The Strategic Management both internal and external risks can be control by corporate social responsibility as well as social and environmental factors A company been socially responsible tends to gain the confidence and trust of the investors and also it can be used as mean of influencing the decision of investors. In the areas of employee, all worker wish to work in an organization that really cares about the welfare of its staff and its environment. The concept of corporate social responsibility increased the reputation of the company and customer and investor and/or client can easily be influenced by the reputation. Promote organization reputations and brand. Business is more responsive to its Ethical environmental and social performance because of the globalization. This tends to put more pressure on careful selection of strategic tools Improve organization efficiency. Increased in the investment opportunity open to the business. REASONS FOR COMPANY TO ADOPT CORPORATE SOCIAL RESPOSIBILITY There are many reasons or motives for an organization to adopt corporate social responsibility. It is argue that shareholder been one of the driver of CSR constitute to the growing of Social Responsibility. Below are some of the factors giving rise to the adoption of corporate social responsibility by a business organization: Public Trust: Lack of public trust in corporate management has contributed to the growth of CSR such as case of ENRON in the United State of America. Globalization: The act of increasing trade international has giving rise to SR. Counter Globalization movements calls for transparency among the companies. Increased In Competitions: Some of the company adopts corporate social Responsibility due to the competitive pressure such as Banks. CORPORATE SOCIAL RESPONSIBILITY AND STRATEGY OF MTN NIGERIA MTN Nigeria been socially responsible created a way to drives its social responsibility across the whole 36 states in the country together with the Capital territory. MTN Nigeria created a part called MTN Foundation through which they get to people around. This Foundation was incorporated in the year 2004 as a way to reward the people in their environment. Up to 1% of their profit after Tax was use to fund this foundation in other to create a unique impact and corporate social driven project. A good networking of both locally and internationally has made it possible for the organization to execute its various projects. In creating MTN foundation, they have make a lots of impact while also they have a good model for better corporate citizens and make it possible for the group like stakeholders, Tax authorities, Government etc to endorsed their foundation. REASONS FOR THE FOUNDATION The MTN Nigeria created the foundation solely for the creation of Economics empowerment, Good education, Good Health Services in a way to make a positive impact on their brand. ECONOMIC EMPOWERMENT Through the MTN foundation and its Economics Empowerment, It has been possible for them to at least be working how to eradicate poverty in so many ways such as granting micro credit, creation of employment, acquiring of necessary skill for a particular job (skill acquisition) building capacity. As part of MTN foundation’s economics empowerment, It has been possible for MTN to work alongside some other reputable organization in other to achieve the purpose for which the foundation has been set up. The area at which the foundation has contributing to the growth of their community and also to the expansion of their brand will be examined in details: MTNF Rural Telephone Project (MTNF RTP) (In partners with growing business foundation (GBF) and the International Finance Corporation (ICF) Description of the Project: This project is set up to equip small, medium and entrepreneurs by providing them with equipment needed to start their own business such as telephone business. Ths project has help eradicate poverty in their chosen communities and since the creation estimated figure of 4,500 has benefited from the project. The project has been able to provide the following: Mobile Phone Recharge cards Yanggi Antenna Solar Charger MTN promotional Materials such as Umbrella, Table, Chair, Banner, T-Shirt, Face cap and lots more A-Week training on basic accounting knowledge and customer service. MTN foundation Rural Housing Project (In partnership with Habitat for International (HFHI). Description of the project: In view of the accommodation problem encounter by some people in the country, The MTN foundation has created the project to provide shelter for the people with low-income. Objective of the project: 2 bedrooms, a living room, toilet shower and the kitchen. Good Electricity Constant running water Sanitation facility MTN foundation- Lady Mechanic Initiative (MTNF-LMI) Description of the project: The acquisition of skill as a mechanic has always been classify as a men job only but with the introduction of Lady Mechanic Initiative by MTNF has made it possible for the foundation to empower and rehabilitate 50 young women by providing them with auto care skills Objective of the project: Practical Involvement in auto mechanic training at Pay Train centre Provision of lecture on the theoretical aspect of Mechanical Engineering Lecture on the social and health related issues on monthly basis Industrial attachment at Peugeot Automobile for 3 months in Kaduna, part of Nigeria Industrial attachment at Coscharis Motors for 3 months in Lagos Provision of Driver’s License and Driving test Trade test Certification Internship programme at Mitsubishi, R.T. Briscoe, Elizade and Toyota MTNF ‘How to Guide’ project in partnership with Fate Foundation Description of the project: This project is designed to create wealth and alleviate poverty among the Nigerian youth by making available for them a small business opportunity and thus provide reliable economics empowerment. Objectives of the project: Provision of adequate training for the potential beneficiaries of the small scale business opportunity. Empowering 120 people by providing recharge cards and other MTN promotional materials Printing of 5000 copies of a guide on CALL CENTRS. MTNF- Farm Fresh Milk F.L.O.W project (Fulanis Living Optimal Willingly) project in partnership with Integrated Dairy Farm Ltd-Farm Fresh) Description of the project: This project was completed in year 2009; it involved provision of support to almost 150 cattle-rearer through cross breeding of Friesian bulls with local cows in other to produce and sale of new quality and quantity of milk. Objective of the project: 70 Friesian Bulls 3 artificial Insemination Kits and Accessories 3 Liquid Nitrogen   Containers 3 First Aid Boxes 3 Motor Bikes 1 tractor and implements 1 hilux pick up Veterinary drugs MTNF – Children’s Development Centre (CDC) ‘Disability and U’ Road show and seminar. Description of the project: This is a program designed to create and increase the awareness of the public on the people with physical and mental disabilities through banners, road shows and workshop/seminars across the country. MTNF Disability support project (MTN DSP) in partnership with independent Living Programme for Person with Disabilities. Description of the project: This was created to increased and improved the quality of life of those that lives with disabilities by providing for them the mobility aid and appliances such as crutches wheelchair, guide canes hearing aid to mention but a few. This will help them in carrying out their daily activities without experiencing any difficulties or limitation. Objectives of the project: Provision of mobility aids and appliances such as wheel chairs Creation of vulnerability Index   Questionnaire Administration of Vulnerability Index Verification and selection of beneficiaries Distribution of the equipments MTNF Skill Acquisition Project for the People Living with Disabilities in Partnership with Friend of the Disabled (FOTD). Description of the project: The project was organize to empower 45 disabled youth across the nation with diverse skills such as Tailoring, Cobbler and welding to enable them make living successfully. Objective of the project: All the entire area of skill acquisition centre were renovated The boys and girls hostel were been renovated Training gadgets and consumables for welding, cobblers and tailoring were provided. Provision of 30KVA Generator A project vehicle was provided Provision of 10 Computer systems The MTN awareness in the need to promote corporate social responsibility and environmental has earned the corporation, a reputation as ‘The N0.1 CSR telecoms company’ and been the first mobile company to established a foundation. This has lead to the economics’ growth and development of Nigeria by helping to unleash the strong developmental potential through the provision of world class communication, innovative and sustainable social responsibility initiatives. CONTRIBUTIONS OF CSR TO CORPORATE STRATEGY Corporate Strategy is the analysis of how to achieve the set target and purpose for which the organization is set up. There are three main types of corporate strategy namely: I. Growth II.   Stability III.   Renewal Growth Strategy The means by which an organization tends to expand its market operation and product offered either through its current market or introducing new business. Here are some growth strategies: Concentration Vertical Integration Horizontal Integration Diversification MTN Nigeria adopted growth strategies by concentrating on their market and ensure expansion on the market. The most strategic of CSR occurs when a company adds a social dimension to its value proposition and ensuring social effect on integral part of the overall company strategy. CONCLUSION Corporate social responsibility is the guide to business ethical behavior. Being socially responsible is the most important and key areas to the stakeholders and on corporate reputation. The incorporation of Corporate social responsible into business mainstream practice it shows your corporate reputation while it does affect the opinion of the company. RECOMMENDATIONS In view of the conclusion above, The researcher thereby recommend to all the business, The Corporate social responsibility as the one of the channel to which a business organization could overcome some of the challenges that militating against business aims and objective such as losing to competitive, mimic of product while it will allow the business to promote business value and reputation. REFERENCES: ecrc.org.eg/Uploads/documents/Articles_CSR%20main%20concepts.pdf Accessed: June 20th, 2011 mtnonline.com/mtnfoundation/ Accessed: June 20th, 2011 mtnonline.com/mtnfoundation/about-us/who-we-are Accessed: June 20th, 2011 mtnonline.com/mtnfoundation/portfolio/economic-empowerment Accessed: June 20th, 2011 mtnonline.com/about-mtn/corporate-information Accessed: June 20th, 2011 http://osha.europa.eu/en/topics/business-old/csr/index_html Accessed: June 20th, 2011 http://graphics.eiu.com/files/ad_pdfs/eiuOracle_CorporateResponsibility_WP.pdf Accessed: June 20th, 2011 Lawrence and Weber, (2008) Business and Society, Mcgraw-Hill, International edition, 12th Editions.

Current Issues for Strategic Information Systems Report Essay

Current Issues for Strategic Information Systems Report - Essay Example Lastly, the report offers a summary recommendation for technology adoption by GLM in future, including a costs outline of such an undertaking. The analysis of the impact of adopting future technology enables the company to identify technologies that prove beneficial (Palvia, 2003:161). The implementation of such technologies is integral to the sustainability and growth of GLM. Introduction The report has several parts that comprehensively analyze the adoption and benefits of new technology in the company as far as information systems and information management (IS and IM respectively) improvements are concerned (Ward and Joe, 2002:74). The first part reviews the present status of the IS and IM at GLM, and the impact of adoption of future technologies to the organization’s business culture, model, and structure in the next five years. ... The last part provides a set of recommendation to the organization with a clear outline on financial costs. This report highly recommends that GLM implement these proposals in order to achieve cost saving, improve the workplace environment, meet the demands of current and potential customers, and remain competitive in their market. Review of the Current IS and Future Technologies at GLM The Current GLM’s IS The current IS at GLM has potential for improvement. Drawing upon the pre-workshop document on the company’s IS system, the implementation, and use of information systems is less than ideal. This report provides an overview of the areas presently with IS in the organization in appendix 1 (Travis, 2004:94). From a consultant’s point of view, there is need for improvement on these areas, as discussed later in the report. Future Technologies Technology in the modern world is an integral asset to organization. This is evident from the increasing number of organiza tion and individuals embracing technology in the global market. It has thus become imperative for organizations to adopt technology in order to compete and expand effectively in the market. In this regard therefore, the objective by GLM to expand into the global market must go in hand with adoption of current technology, which will enable it to meet the needs of its current customers as well as attract technology-enthusiastic customers. Thus, GLM needs to leverage this knowledge and subsequently enhance the work processes and communication channels. To achieve this, this report analyzes the technologies that may prove beneficial to the business culture, business model, and structure of GLM as an organization. Among the most significant technologies, include cloud computing, customer relationship

Questions for Case at the AQRs Momentum Funds (The Momentum Effect) Study

Questions for at the AQRs Momentum Funds (The Momentum Effect) - Case Study Example The existence and ability to implement the strategy despite up or down markets is implied due to the aspect of relative performance as a component of momentum. Authors such as Jegadeesh and Titman in their publication, present models of behavior with a basis on the idea that momentum profits result due to inherent biases in the way an investor interpret given information (7). Others however argue that momentum investors realized massive returns as mere compensation for risk. Generation of momentum returns can be as a result of rational and irrational reasons. Some of these reasons include momentum being a consequence of overreaction and under reaction to news pertaining to the market and failing to incorporate them in their transaction prices. This argument can be explained by examples such as positive announcements from companies resulting in price increases thus more buying of stocks (Jegadeesh & Titman, 10). With respect to the time series of returns, we can conclude that each stock’s past return is a future predictor meaning that stocks with high expected rates of return in adjacent time periods are expected to have high realized rates of returns in both periods. In the case of return reversals, such appear mostly in later years following the formation date where it is most likely that an investor will lose

Insufficient Staffing and Medication Errors Essay

Insufficient Staffing and Medication Errors - Essay Example Understanding the different factors affecting health care delivery to the patients should be analyzed in order to make sure its objectives are attained. One of the issues that healthcare systems should address in order to optimize its role in delivering quality health care to its patients is medication error. Medication error is any preventable event that may cause or lead to inappropriate use of harm to a patient while medication is in control of the health care professional, patient or consumer. Such events may be related to professional practice, health care products, procedures and system including prescribing, order communication, administration, education, monitoring, and use. According to various studies concerning errors in patient medications, there are around 7,000 to 7,400 people in the United States who dies due to such form of negligence. Specifically in New York, there is approximately 1,400 people die every year or twenty percent of medical injuries are due to medicati on errors. Lawsuits have been filed across the United States health care system as a result of medication errors, which exposed the patients into dangerous situations that eventually cause the death of some patients. According to the National Law Journal, out of the 13 largest medical negligence lawsuits in the US in 2002, seven of these were in New York alone. The number of deaths from medication errors in the US per year is at least one death every day. In addition, the Center for Drug Evaluation and Research found that a total of 1.3 million people are injured because of medication errors. Types of Medication errors Medication errors occur in different ways and at any degree. Medical negligence of this type may be made by any health care practitioner, from the nursing staff to the attending physicians. One type of medication error may be a misdiagnosis of a patient’s illness identified as a diagnostic error. A mistake as complicated as this, may result to more serious prob lems when made. Misdiagnosis could result to recommending an incorrect choice of therapy to the patient that would further injure them. Failure to use an indicated diagnostic test is also a result of diagnostic error that may cause a patient’s illness to become worse and very serious. Test results may also be misinterpreted due to an error in diagnosis. Patients suffer the consequences of not being able to get the right treatment to their illnesses when such diagnostic error happens. In addition, when patients are misdiagnosed, medical staff may not be able to correctly handle abnormal situations that are brought about by the patient’s illness or disease. Equipment failure is another form of medication error that is classified under this category. Some examples of this are dead batteries in defibrillators and easily dislodged or bumped valves of intravenous pumps. When such conditions are unnoticed, patients may have increased doses of medication over a short period of time that may be too dangerous, worse, fatal to the. Physicians are not spared in committing medication errors as well. The same thing goes with the nurses. Their roles require them to be in close contact with the patients. While physicians prescribe the medications or recommend the proper treatment necessary for the patients, the nurses are those who implement them.

The Lost Decade Essay Example | Topics and Well Written Essays - 2000 words

The Lost Decade - Essay Example As a result, there was trade surplus and increased liquidity for banks thus making credit easily available and cheap. There was also increase in asset prices such as; real estates, stocks and land. Banks used excess liquidity to lend loans backed by real estates or land as collateral and when eventually the ministry of finance raised interest rates in 1989, the asset bubble burst resulting in the collapse of the financial markets and economic growth stagnation. There are several factors which can be attributed to the recession. Some scholars like Ito believe that the situation could have been avoided if only the government had taken measures urgently. The Bank of Japan (BOJ) and ministry of finance(MOF) and Japanese banks took a long time to acknowledge the existence of the problem hence took long to respond and this led to worsening of the problem (Saxonhouse & Stern, 2004). Increased speculation is also viewed as a contributing factor to the lost decade. Due to high prices of land, stock and real estate, banks thought that the prices would continue to rise thus instead of reinvesting the excess liquidity, they loaned it with real estate as a collateral without foreseeing any risks. As prices continued to increase, the companies continued to acquire more loans backed by assets and invested in stocks and securities and the banks offered loans without considering creditworthiness of the loanee. By the time the bubble bust, most banks had little or capital reserves (Callen & Ostry, 2003). Callen and Ostry (2003) observe that the economic slowdown was a result of massive savings due to demographics of aging population. This resulted in over reliance on traditional bank loans as opposed to issue of stocks and bonds in the capital market to acquire additional financing. The relationship of banks and corporations led to lowering of lending standards leading to increased risks. The shareholders of commercial banks were mutual life insurance companies which were manage d by representatives selected by the management hence there was no regulations to operate efficiently. The banks therefore were lending money without a profit maximization motive thus increased lending risks. The MOF had also undergone deregulation hence was not providing the banks with regulatory rents hence they turned to small and micro enterprises and gave the loans against real estate collateral at low interest rates (Syed et al. 2009). The government institutions were getting annual subsidies and hence were not keen on making profits hence lack of control in lending activities. The government response policy in 1997 of increasing consumption tax is the reason for continued crisis which had already began to ease (Syed et al. 2009). The government underestimated the depth of the crisis and began strategies to reduce budget deficits by increasing consumption tax. This resulted in increased consumption of durable goods by consumers as they speculated the increase leading to inflat ion (Nanto, 2009). The community banking model of Japan also prolonged the crisis since the banks were reluctant to write-off non-performing loans and instead opted to continue lending to defaulters. The increase in interest rates in 1989 by the MOF led to the bursting of the bubble. The impact was felt not only by the banking system and other financial

The World of Management Research Paper Example | Topics and Well Written Essays - 1750 words

The World of Management - Research Paper Example At present, the demand of the management professionals are increasing gradually as an efficient manager is able to fulfill the objective of the company and increase the profit. In the globalized economy, when the economies of different country are connected to one another, the demand of a certified professional from an international organization is high. The professionals, who are certified from a professional organization, are able to handle the issues that arise in an organization in a proper manner. The areas of management include human resources, accounting, marketing, operations etc. Every department has some specific works to manage the company well overall. The managers of the operations department need to manage the resources available for them, for instance, labor and raw materials, and increase the profit of the company. The human resources mangers are responsible to manage the employees and make sure that they are motivated enough to do the job. Marketing managers have to make sure that the company is providing goods and services as per the customer requirement and the accounts department managers have to make sure that there is nothing false in the revelation of the financial information, which are used by the stakeholders of the company. The researcher has selected the area of business administration identify the history, job prospects and needed professional licenses in the field. Historical Overview of Business Administration Business administration means to manage the sources available to an organization effectively and optimally use the sources so that the organization can fulfill the objectives. During the 18th century, a Scottish philosopher Adam Smith has argued that in order to efficiently manage an organization, it needs to have specialized labor resources. He has also stated that some changes in the process can improve the productivity of the organization. If the specialized employees can be used in related places, they will get motivated , as well as the company would be benefited. During the 19th century, the classical economists provided the theoretical background about the processes of allocation of the resources, pricing and the production issues. In the 20th century, the organizations started to understand the importance of administration of business. They felt that an efficient leader could manage the subordinates very well. They can take out the best from the employees by motivating them. The universities have started the business schools where they provide the degree Master of Business Administration, also there were many personalities like Peter Drucker, who provided the theories of management. In this century, various processes invented by the researchers which can improve the efficiencies of the processes and increase the profit of the organizations like six sigma process, reengineering, various software development. During the period, business administration was divided into six different branches, namel y management information systems, marketing management, strategic management, financial management, operations management and human resource management. During the current 21st century, the administration process became more effective; for

Barbara Kruger's strategic role in post-modern art resurfaces Dissertation

Barbara Kruger's strategic role in post-modern art resurfaces - Dissertation Example The study "Barbara Kruger's strategic role in post-modern art resurfaces " discovers the influence of Barbara Kruger on modern art. Kruger proved to be a powerful force in having challenged the long established conventions, typecasts and traditional practices of society. Through her works she established a strong link between the popular photographs of the 1940s and 1950s by including the public spaces that people are exposed to in their everyday lives. By conceptualizing the conflict and tension latent within theses spaces, Kruger is able to strike an alarming irony through unmasking the violence that disturbs space. The main force for these works revolves around the notion that power, and thus violence, is what propels the splitting of the external to create the internal; space. Kruger argues that space is not an area of freedom but a ‘closed interior’. By shedding light on the external and excluded items submerged underneath what we see in an internal space, Kruger ex poses these never before seen grounds to the public. I believe that Barbara Kruger is most definitely an artist that is worthy of attention; she has inspired a new sphere of, but not confined to, graphic design. Her work is a prime example of ‘Spatial practive’, whereby, she completes a space by exposing it in its entirety, not only its internal elements. This dissertation will tackle in depth the significance of ‘spatial practice’ and ‘site specificity’, and how exactly Barbara Kruger utilizes this in her work to challenge society. It will also discuss the societal impact and influences her pieces have produced. Kruger is often misunderstood, and it not always conceived as narrated in the brief description above. Her role, her purpose and her intention are often contested; some critics comment that she is merely a political agitator. Kruger’s stance in the artistic, political and social worlds will be thoroughly examined. Despite critiq ue, this dissertation will focus on bringing forward the argument that Kruger employs site specificity as a tool for accusation, uncovering conflict ,but not for mass commercialization or for creating acts of violence. Another element that I would focus upon is a critic, David Deitcher who questions that Barbara Kruger is not easily categorized because of her self-constructed identity. ‘Her work has both a place and a strategic role within contemporary artistic discourse’ (Goldstein, A, 2000, p.25). This will be an argument that the dissertation would bring forward how Barbara Kruger’s figure of speech and her presentable artworks effects her ‘strategic role’ and how it brings her practice into external sites and not within a space. At last but not least, this dissertation would analyze the genre feminism in Kruger’s work and how it affected the women by observing her piece of work and what reality brings forward to them. Throughout these chap ters, artworks by Barbara Kruger would be analyzed in depth and how her works have influenced and affected the society and as well how these artworks can resurface the hidden truth of the political society. This will also relate to Jean Baudrillard theories in the context that Barbara Kruger can connect her work to. â€Å"Simulation is no longer that of a territory, a referential being or a substance. It is the generation by models of a real without origin or reality; a hyperreal† (Baudrillad, 2008, p.342). Chapter 1: Site Specificity This chapter delves into the site specificity in Barbara Kruger’s works. Site specificity is defined as ‘artworks take location into account in large scale work’, and the reason for examining this topic is because Kruger has considered the space in her works in attempting to establish relationships

The Lost Decade Essay Example | Topics and Well Written Essays - 2000 words

The Lost Decade - Essay Example As a result, there was trade surplus and increased liquidity for banks thus making credit easily available and cheap. There was also increase in asset prices such as; real estates, stocks and land. Banks used excess liquidity to lend loans backed by real estates or land as collateral and when eventually the ministry of finance raised interest rates in 1989, the asset bubble burst resulting in the collapse of the financial markets and economic growth stagnation. There are several factors which can be attributed to the recession. Some scholars like Ito believe that the situation could have been avoided if only the government had taken measures urgently. The Bank of Japan (BOJ) and ministry of finance(MOF) and Japanese banks took a long time to acknowledge the existence of the problem hence took long to respond and this led to worsening of the problem (Saxonhouse & Stern, 2004). Increased speculation is also viewed as a contributing factor to the lost decade. Due to high prices of land, stock and real estate, banks thought that the prices would continue to rise thus instead of reinvesting the excess liquidity, they loaned it with real estate as a collateral without foreseeing any risks. As prices continued to increase, the companies continued to acquire more loans backed by assets and invested in stocks and securities and the banks offered loans without considering creditworthiness of the loanee. By the time the bubble bust, most banks had little or capital reserves (Callen & Ostry, 2003). Callen and Ostry (2003) observe that the economic slowdown was a result of massive savings due to demographics of aging population. This resulted in over reliance on traditional bank loans as opposed to issue of stocks and bonds in the capital market to acquire additional financing. The relationship of banks and corporations led to lowering of lending standards leading to increased risks. The shareholders of commercial banks were mutual life insurance companies which were manage d by representatives selected by the management hence there was no regulations to operate efficiently. The banks therefore were lending money without a profit maximization motive thus increased lending risks. The MOF had also undergone deregulation hence was not providing the banks with regulatory rents hence they turned to small and micro enterprises and gave the loans against real estate collateral at low interest rates (Syed et al. 2009). The government institutions were getting annual subsidies and hence were not keen on making profits hence lack of control in lending activities. The government response policy in 1997 of increasing consumption tax is the reason for continued crisis which had already began to ease (Syed et al. 2009). The government underestimated the depth of the crisis and began strategies to reduce budget deficits by increasing consumption tax. This resulted in increased consumption of durable goods by consumers as they speculated the increase leading to inflat ion (Nanto, 2009). The community banking model of Japan also prolonged the crisis since the banks were reluctant to write-off non-performing loans and instead opted to continue lending to defaulters. The increase in interest rates in 1989 by the MOF led to the bursting of the bubble. The impact was felt not only by the banking system and other financial

Barbara Kruger's strategic role in post-modern art resurfaces Dissertation

Barbara Kruger's strategic role in post-modern art resurfaces - Dissertation Example The study "Barbara Kruger's strategic role in post-modern art resurfaces " discovers the influence of Barbara Kruger on modern art. Kruger proved to be a powerful force in having challenged the long established conventions, typecasts and traditional practices of society. Through her works she established a strong link between the popular photographs of the 1940s and 1950s by including the public spaces that people are exposed to in their everyday lives. By conceptualizing the conflict and tension latent within theses spaces, Kruger is able to strike an alarming irony through unmasking the violence that disturbs space. The main force for these works revolves around the notion that power, and thus violence, is what propels the splitting of the external to create the internal; space. Kruger argues that space is not an area of freedom but a ‘closed interior’. By shedding light on the external and excluded items submerged underneath what we see in an internal space, Kruger ex poses these never before seen grounds to the public. I believe that Barbara Kruger is most definitely an artist that is worthy of attention; she has inspired a new sphere of, but not confined to, graphic design. Her work is a prime example of ‘Spatial practive’, whereby, she completes a space by exposing it in its entirety, not only its internal elements. This dissertation will tackle in depth the significance of ‘spatial practice’ and ‘site specificity’, and how exactly Barbara Kruger utilizes this in her work to challenge society. It will also discuss the societal impact and influences her pieces have produced. Kruger is often misunderstood, and it not always conceived as narrated in the brief description above. Her role, her purpose and her intention are often contested; some critics comment that she is merely a political agitator. Kruger’s stance in the artistic, political and social worlds will be thoroughly examined. Despite critiq ue, this dissertation will focus on bringing forward the argument that Kruger employs site specificity as a tool for accusation, uncovering conflict ,but not for mass commercialization or for creating acts of violence. Another element that I would focus upon is a critic, David Deitcher who questions that Barbara Kruger is not easily categorized because of her self-constructed identity. ‘Her work has both a place and a strategic role within contemporary artistic discourse’ (Goldstein, A, 2000, p.25). This will be an argument that the dissertation would bring forward how Barbara Kruger’s figure of speech and her presentable artworks effects her ‘strategic role’ and how it brings her practice into external sites and not within a space. At last but not least, this dissertation would analyze the genre feminism in Kruger’s work and how it affected the women by observing her piece of work and what reality brings forward to them. Throughout these chap ters, artworks by Barbara Kruger would be analyzed in depth and how her works have influenced and affected the society and as well how these artworks can resurface the hidden truth of the political society. This will also relate to Jean Baudrillard theories in the context that Barbara Kruger can connect her work to. â€Å"Simulation is no longer that of a territory, a referential being or a substance. It is the generation by models of a real without origin or reality; a hyperreal† (Baudrillad, 2008, p.342). Chapter 1: Site Specificity This chapter delves into the site specificity in Barbara Kruger’s works. Site specificity is defined as ‘artworks take location into account in large scale work’, and the reason for examining this topic is because Kruger has considered the space in her works in attempting to establish relationships

Grant Proposal Essay Example for Free

Grant Proposal Essay Program planning is a process that shows the needs of a community and the reason and purpose for the programs an organization wants to set up to address that need. Through program planning; goals, objectives, activities, and evaluations are set up to provide the framework for the grant proposal to be written. A well written grant proposal will show the reader that the organization writing the proposal truly understands the problems within a specific community and it will convince the reader that they want to provide the financial help that will be necessary for the organization to solve the problem. Once a problem within a community has been discovered, an organization figures out how to confront that problem and writes a grant proposal to explain that problem and how it plans to help solve that problem, by proving that they understand the situation. The grant proposal starts with the premise, which explains the understanding the organization has about the problem and shows the belief they have that they will be able to provide the help necessary to solve the problem. The conclusion portion of the grant proposal explains the ways that the organization plans to address the problem through the programs and services they will provide to the community. Finally, the grant proposal will provide a detailed explanation of what they plan the outcomes of their programs to be. The organization has to prove that their programs will truly be an asset to the community using their grant proposal by making sure that each part of the proposal will compliment the other through a descriptive and flowing argument and by making sure that each part of the grant proposal compliments the other.

Development of the Caspian Oil and Gas Sector

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