Presentation and function of horror Essay Example for Free

Presentation and function of horror Essay I busied myself to think of a story a story to rival those which had excited us to this task. One which would speak to the mysterious fears of our nature and awaken thrilling horror one to make the reader dread to look round, to curdle the blood, and quicken the beatings of the heart. If I did not accomplish these things, my ghost story would be unworthy of its name. In the Authors introduction to the standard novels edition (1831), Mary Shelley conveys her aim of the novel, Frankenstein. Mary Shelley proclaims her novel my ghost story p.8. The proposal of a ghost story relates to supernatural literature, which creates horror with paranormal and occult themes, but Frankenstein in fact has no ghosts. There are no bumps in the night and only the minimum amount of blood with emphasis on telling rather than showing in a story of scientific developments beyond our control. To evoke horror Shelleys novel complies with literature of the gothic genre with its tale of macabre in wild picturesque landscapes but without the ghouls and spirits. Shelley has the ability to horrify us without such paranormal torments but through psychological torments. It is Mary Shelleys method and success of creating horror in the novel that this essay aims to discuss. Shelleys era saw rise to momentous discoveries and advances in science that many feared may lead to disaster. The scientific work of Sir Isaac Newton (1642 1727) coupled with the ideals of philosopher John Locke (1632 1704) saw increased ambition and power in the 17th Century. Parallels can be easily drawn between such ambitious scientists and philosophers, and Mary Shelleys fictional character of Victor Frankenstein. Clearly a large influence to the myth of creation the novel endures is aided by the development of electricity. Shelley uses these advances in technology to make her novel appear more realistic and therefore horrifying. She has replaced the heavenly fire of the Prometheus myth with the spark of newly discovered electricity. Although neglected in the novel, Kenneth Branaghs 1994, film Mary Shelleys Frankenstein draws parallels with Luigi Galvani (1737 -1798), by featuring his work of discovering a frogs legs could twitch in an electric field. The use of electricity plus the amniotic fluid, which Victor uses in his creation, mixes the idea of science with the mythical origins surrounding the birth of human life. As Mr Waldman presents and influences the work of Victor Frankenstein, the likes of Newton and Galvini coupled with discussions between Mary Shelley, husband Percy and Lord Byron at Lake Geneva in 1816 have indeed influenced Shelleys role in creating the horror surrounding Frankenstein. When considering horror, we must consider what actually evokes the horror. Shelleys use of language when Victor is developing his workshop of filthy creation p.52 is disturbing, although not much graphic content is written, it is more what is not said and left out that is horrific. The theme of control is central to this idea of horror. When considering the horrendous incidents of September the 11th 2001 in American, and the horrific images of planes hitting tower blocks, are response is stomach churning but the real horror is the lack of control, nobody knows when and how the attacks are going to happen and this is similar in Frankenstein. Victor is scared of the monster as he has no control over him and this permeates through to the reader. There is surely an eye opening benefit of being horrified in some aspects. We can test our courage and survival and prepare for the future and in this case we are providing with the dangerous premonitions of playing god. Due to Mary Shelleys experiences of death and pregnancy the novel seems to suggest her own mental torments about creation, and the horror of birth and development. Shelley lost most of her children, only one survived. Shelley may be using her novel as a way of voicing her disgust and unhappiness at how childbirth can appear. I kept my workshop of filthy creation p.52, may be referring to the womb, the disgust and pain a mother can feel at such unhappiness. The creation seems to depict mothers worst fears, being capable to accept and have endless love for a child and not reject in the horrific manner that Victor does. The description of the monster is very much similar to that of a newborn baby. Once again the 1994 film adaptation of the novel depicts the monsters first steps similarly to that of a newborn Deer, struggling to find his feet, clutching on to his creator for dear life. As the novel reaches horrific climax in Chapter Five, Victor is awoke from a dream to find one hand was stretched out p.56, as his creation asks for help, like a child would to a mother. The way in which this interaction takes place is horrific in that a monster-like creature standing beside his bed awakens Victor, but the manner in which Victor rejects his monster is equally horrific. The creation has no motive for death yet and he is surely asking for help and is abandoned less than a few hours after birth. The novel could be read as a version of what occurs when a man plays god and upsets nature. Trying to create a child without woman is not natural and the horrific incidents which follow act as a warning not to mes s with the origins of human life.

Environmental and Consumer Influences Analysis

Environmental and Consumer Influences Analysis Introduction When purchasing an item, there are a number of factors that influence the final decision of the buyer. Whether it is a good or a service, there is a process that drives an individual to go for an item and forego the other. He or she takes an evaluation of the product in regard to the market potential before buying, during the action of buying, and even after the final transaction has been made, that is after buying. In other words, it is worth noting that that this is a cognitive process that leads to a specific action among many alternatives. When identifying the decision making process, one notes that consumer behavior becomes the area of concern, in that selecting an item will have impact after transaction has been made, (Connell, 2008). In this essay, I am going to identify and broaden the explanation concerning how psychological, social and some external factors affect the consumer’s decision of purchasing an item such as a communication gadget. Psychological factors These are factors that affect an individual’s mind before making the final decision of purchasing a communication gadget. They constitute of consumers thought, feelings, reasoning, likes and dislike of that product. Attitude, perception and personality are some of the psychological factor that influence the decision making process. On this note, I am going to have a brief explanation how these three factors influence the consumer behavior. Attitude According to Hogg, (2005), attitude refers to individual’s opinions or feelings within the context of marketing, usually expressed through behavior. These components are highly interdependent and will be among the final determinants of the overall forces that will influence buying. In a brief note, an individual may have a certain belief concerning the originality of a product. In this case, he or she is going to be selective basing argument on producers that is the country of origin. A consumer may argue that communication gadgets from a given country are known to be the best in the world, hence rejecting those from competing nations. Perception Perception is the unique way about how an individual understand or view something. Psychology bases arguments to the stimuli being exposed to an individual’s mind. A number of factors affect how one perceives products. Exposure, interpretation, subliminal stimuli and certain laws such as Weber’s law are used to give a psychological explanation of perception. Connell, (2008) says that the number of times an individual gets exposed to a given product will influence his or her purchasing decision. In this case, exposure links to final interpretation making an individual to prefer a mobile phone from a particular company to that of a competing company. This is due to personal views in terms of shape, color and size. Weber’s law supports perception involvement in decision making process with the argument that, even though there may be a little change between the current and the original product, an individual may not experience these changes. He or she will therefore insist purchasing one similar to the one originally exposed to. Closely linked to perception, there is personality, which I have independently explained below. Personality-Every individual has that uniqueness, which makes him or her to behave in a particular way especially in social situations. For instance, if a person is willing to purchase a mobile phone, he or she is going to choose one reflecting his current status in terms of prestige or economic status. Personality is dynamic and involves a pattern of thoughts including feelings and social adjustments that will exhibit consistently hence influencing overall expectation which in turn link to attitude, values and self-perception, (Connell, 2008). Social factors In the decision making process, social factors also has an influence. Among these factors are those fact and experiences influencing or controlling an individual’s lifestyle and personality. They are the factors that affect and direct an individual’s lifestyle dictated by societal expectations. Some of these factors are family, social class and reference groups one has identified him or herself with and the reference groups. Family- This is the basic unit of companionship through birth, marriage or co-residence. A family may influence an individual’s decision of purchasing a product in a very convincing manner. Psychologists such as Karl Marx and Engel has put forward theories to explain the how families may change their structure and effects of such changes. According to their theories, an individual is always tied to decision making process on the basis of this basic unit of identification. For instance, if one is willing to purchase a new mobile phone, the number of people in the family who will be able to use it will influence the final decision. It may sound awkward incase an individual purchase an item and he becomes the only person who can use it with minimal coach maybe due to his or her education status. Social class- Apart from the family, there is that social group or status one is identified with. For instance, an individual may have identified him or herself with a high class group, (Hogg, 2005). This will in turn limit his or her decisions in purchasing items since it must fit with the group requirement. In this case, one will be forced to purchase an expensive phone which might be the latest to be introduced in the market so as to reveal a rich status. On the other hand, an individual from the lower class will prefer a simple communication gadget that will be cheap and will successfully service his or her communication. Reference groups In addition, the kind of daily interactions an individual makes will also determine the type of mobile phone to purchase. There exist different types of groups that a person may interact with on daily basis and in the long run be the ultimate determiners of the model, type, price and even the performance of the item. In this case, one will try to associate him or herself with the group by purchasing a phone similar to majority of the peer. External factors Other than the internal factors, (Connell, 2008), there are other influences that can have an impact on the final decision concerning the purchasing of a mobile phone. They include technology, culture and political influences. Technology It refers to knowledge involved in making and modification of tools for effective usage. Technology may hinder, promote or limit an individual’s desire and ability to purchase an item, in this case a mobile phone. This is because the preference of the buyer may not be available in the market. According to Maslow’s hierarchy of needs, an individual may purchase an item at certain moments so as to gain prestige or self-actualization. This therefore means if one wants the latest model of mobile phone, technology will limit what to purchase due to availability. For instance, a certain model may not be available making an individual to purchase the best offered in the locality though it may not be identified as the best model of his or her wish. Culture-This is a set of beliefs, ideas and ways in which individuals in a particular group or organization behave. The above sets of conditions are the ultimate determinants of how a person will behave in a society. In the case of decision making process, there are situations whereby what one can purchase is limited to the likes and dislikes of the society. For instance, a person might be willing to purchase a mobile phone with a different country of originality yet their country produces phones and in turn limits import of other models. This will limit such a decision and in the long run, one will be required to promote the society one lives in. Political influence It is from politics where laws are amended and implemented. Political stability may promote or limits someone’s ability to move and acquire items of his or her wish. However, a given country may inhibit or promote entry of certain products hence influence an individual’s chance to purchase a product such as mobile phones. Conclusion Ranging from consumer’s own influences, it is now evident that the environment may also influence the ultimate decision of an individual to purchase a product. However, there is more other factor not explained in my essay. These include business ethics, brands, packaging, legal factors and ecological factors among others. References Hogg, M. K. (2005). Consumer behavior I: research and influences. London: SAGE Publications. Connell, K. Y. (2008). Ecological Consumer Decision Making: Nature, Process, and Barriers in Apparel Acquisition. ProQuest.

Objectives And Goals Of Central Banks Finance Essay

Objectives And Goals Of Central Banks Finance Essay Every central bank is responsible of implementing a monetary policy which aims at ensuring economic growth, low inflation and currency stability and to do that lowering inflation is the best way for enhancing economic growth and development. So eventually every year central banks with the help of the governments set indicative inflation target and try to maintain it within the target band. In addition central banks need to ensure price stability and regulate the money flow in order to control inflation and this is done by 2 ways: Inject the market with liquidity: By tradition, the Fed uses the produce-money-and-purchase approach (PMP): the Fed produces money in their computers and uses it to buy US Treasuries from the banking system. In exchange for the US Treasuries, the Fed creates money on the account that the selling bank holds at the Fed. The ECB, in contrast, uses the produce-money-and-lend (PML) approach. It produces money and lends it to the banking system for one week or three months. The preferred collateral for these loans to banks is government bonds. As a result of PMP and PML, banks receive new base money. Or Absorb extra funds by issuing treasury bills or central bank bills. So to conclude, a compromise has to be found between decreasing interest rates and encouraging borrowing and increasing inflation. Microeconomic Objectives When a bank finds itself in shortage of liquidity in order to meet fulfill its role, the central bank can lend additional funds to avoid bankruptcy of banks or other institutions deemed systemically important or too big to fail. Central Banks must be impartial in its lending process, thats why Central Banks are independent. Central banks can also require deposit insurance from commercial banks. Some central banks will hold commercial-bank reserves that are based on a ratio of each commercial banks deposits. This is also a way of controlling money supply in the market. The rate at which commercial banks and other lending facilities can borrow short-term funds from the central bank is called the discount rate (which is set by the central bank and provides a base rate for interest rates). It has been argued that, for open market transactions to become more efficient, the discount rate should keep the banks from perpetual borrowing, which would disrupt the markets money supply and the central banks monetary policy. By borrowing too much, the commercial bank will be circulating more money in the system. Use of the discount rate can be restricted by making it unattractive when used repeatedly. A third objective of central banks can also be added. It concerns long-term strategic objectives of financial sector development including the development of an effective payments system and secure the financial markets and transactions. Functions The major functions of central banks are the following: Monetary Policy Implementation and Money Supply Control Bank of Note issue lender of last resort and governments bank interest rate interventions Clearing Agent Banker, agent and adviser to the government banking supervision and regulation The central bank can also be entrusted with other crucial functions like credit control, management of public debts, rediscounting of bills, and custodian of foreign exchangeà ¢Ã¢â€š ¬Ã‚ ¦ Monetary Policy Implementation and Money Supply Control The aim of an effective monetary policy is to create employment in the country, resist undue inflation and achieve a favorable balance of payment. Central banks implement a countrys chosen monetary policy by choosing the type of the currency and by determining the size and rate of growth of the money supply, which in turn affects interest rates. Bank of Note issue Earlier every banks notes lacked uniformity and were different from each others in color, size, value and even market goodwill. Hence the paper currency system was unstable, unreliable, and used to yield to gold and silver currencies. It was then necessary for a single bank to centrally issue currency notes for different reasons: It brings uniformity in the monetary system The central bank can exercise better control over the money supply in the country. ==> it increases public confidence in the monetary system. Monetary management of the paper currency becomes easier. Being the supreme bank of the country, the central bank has full information about the monetary requirements of the economy and, therefore, can change the quantity of currency accordingly. It enables the central bank to exercise control over the creation of credit by the commercial banks. The central bank earns money by issuing currency notes and selling them to the public for interest-bearing assets, such as government bonds. Since currency usually pays no interest, the difference in interest generates income. In most central banking systems, this income is remitted to the government. Granting of monopoly right of note issue to the central bank avoids the political interference in the matter of note issue. Lender of Last Resort The central bank is the lender of last resort in cases of banking insolvency or illiquidity, which means that it is responsible for providing its economy with funds when commercial banks cannot cover a supply shortage. In other words, the central bank prevents the countrys banking system from failing by acting as a bank to commercial banks. By acting this way, central banks: Increases the elasticity and liquidity of the whole credit structure of the economy, Enables the commercial banks to carry on their activities, Provides financial help to the commercial banks in time of emergency, Enables the central bank to exercise its control over banking system of the country. Interest rate Interventions The central bank sets the official interest rate in order to manage both inflation and the countrys exchange rate and to ensure that this rate takes effect via a variety of policy mechanisms. Typically a central bank controls certain types of short-term interest rates. These influence the stock and bond markets as well as mortgage and other interest rates. Clearing agent As the custodian of the cash reserves of the commercial banks, the central bank acts as the clearing house for these banks. Since all banks have their accounts with the central bank, the central bank can easily settle the claims of various banks against each other with least use of cash. The clearing house function of the central bank has the following advantages: It economies the use of cash by banks while settling their claims and counter-claims. It reduces the withdrawals of cash and these enable the commercial banks to create credit on a large scale. It keeps the central bank fully informed about the liquidity position of the commercial banks. Banker, agent and adviser to the governments First As a banker to government, the central bank performs the same functions for the government as a commercial bank performs for its customers. It maintains the accounts of the central as well as state government; it receives deposits from government; it makes short-term advances to the government; it collects cheques and drafts deposited in the government account; it provides foreign exchange resources to the government for repaying external debt or purchasing foreign goods or making other payments; Second as an Agent to the government, the central bank collects taxes and other payments on behalf of the government. It raises loans from the public and thus manages public debt. It also represents the government in the international financial institutions and conferences; and finally As a financial advisor, the central bank gives advice to the government on economic, monetary, financial and fiscal matters such as deficit financing, devaluation, trade policy, foreign exchange policyà ¢Ã¢â€š ¬Ã‚ ¦ Banking Supervision and Regulation In some countries a central bank controls and monitors the banking sector. It examines the banks balance sheets and behavior and policies toward consumers. Apart from refinancing, it also provides banks with services such as transfer of funds, bank notes and coins or foreign currency. The subprime crisis Markets Pre-Crisis Situation Following the 2000 burst in the dotcom bubble, investors lost confidence in the equity markets and concentrated their investments in government bonds, and secure assets. However, this lack of confidence started to turn around at the end of 2003, fueled by: à ¢Ã¢â€š ¬Ã‚ ¢ The rise of real estate prices à ¢Ã¢â€š ¬Ã‚ ¢ improving figures of world economy and in particular the U.S. economy à ¢Ã¢â€š ¬Ã‚ ¢ the intervention of the Federal Reserve, helping banks by providing liquidity at particularly easy conditions (this liquidity injection by the Federal Reserve did not solve the problem, but only postponed it to blow up again in July 2007 in the form of the subprime crisis) à ¢Ã¢â€š ¬Ã‚ ¢ The short memory of investors To fully understand the origins and the impact of the current crisis on the world economy, it is crucial to understand the subprime loans and their use in the credit derivatives and structured products world. The term subprime lending refers to the practice of making loans to borrowers who do not qualify for market interest rates due to various risk factors, such as income level, size of the down payment made, credit history and employment status. Subprime loans are considered risky for both the borrower and the lender. Its risky for the lender because borrowers usually have lower incomes and a poor record of paying debt which increases their default probability. It is also risky for borrowers. To offset the risk of defaults, lenders will charge high rates of interest to offset the risk. The high interest rates however are strenuous for borrowers which further increases their likelihood of default. Two aspects of the subprime loans could give us a clearer image of the causes of the crisis. First, borrowers not being able to pay the interest rates on their mortgages have used the continuing rise in the value of their real estate to refinance their debt, thus taking on a higher debt. Second , every couple of years the interest rates on the subprime loans is reset in a way to take into account, the moves that have taken into the market. The final piece of the puzzle is the understanding of how these local loans issued by local brokers have made their way into the hands of Wall Street firms. Brokers match prospective borrowers with lenders who further lure borrower with exotic mortgages such as no doc mortgages, which do not require any evidence of income or savings. Bing banks and wholesale lenders buy the debt, repackage them and sell them to investment banks. These investment houses further repackage these loans in mortgage backed securities (MBS) and collateralized debt obligations (CDO). These structured products very often yield high rates of return and are sold to pension funds, hedge funds and institutions. It all started out in the end of 2006 and the beginning of 2007, when the rise of real estate that started in 1997 showed sign of slowing down. Not being able to refinance their debt, subprime borrowers found themselves in default, and faced foreclosure. In March 2007, General Motors announced that earnings plunged 90% during the first 3 months. The reason was due to losses at its mortgage loan subsidiary GMAC. UBS said that it will shut down its Dillon Read Capital Management arm after the hedge fund lost 150 million Swiss Francs on subprime investments. Finally, on June 21st 2007 data was released showing the record number of foreclosure, with biggest increase in the subprime sector. These signs are the start of a crisis that would cost investors, banks and almost all financial institutions enormous losses, thus forcing central banks around the world to intervene in order to maintain the grip on the financial system. Timeline of the subprime crisis: The pre-crisis 2001: Crises of confidence on the American Stock Exchange (Internet bubble, terrorist attacks of September 2009). The Fed lowered interest rates. 2002-2004: Invention of the subprime, low loan rate credit for 2 years, then variable rate based on the market rate: for households that have a high risk of non-repayment. if they cant reimburse it, their properties are seized by the bank. 2002-2004: The low interest rate allows an increase in the real estate purchases, which leads to higher market prices 2004: higher Inflation due to rising in oil prices. 2004-2007: interest rates increased by the Fed. 2006: real estate prices went down 2007: Increase in foreclosures in the United States due to the non-repayment of subprime loans. The crisis of 2008: 8 February 2007: HSBC global investment bank was the first to announce a liquidity problem due to the non-reimbursement of the subprime loans. June 2007: Bear Stearns, the U.S. investment bank, closes two of their investment fund related to real estate market. October 29, 2007: Merrill Lynch, the U.S. investment bank, announced $ 2 billion losses. Few months later other banks (American Bear Sterns, the French Socià ©tà © Gà ©nà ©rale, UBS Switzerlandà ¢Ã¢â€š ¬Ã‚ ¦)will announce identical losses. March 16, 2008: Bear Stearns was saved from bankruptcy by JPMorgan with the help of the U.S. government. 13 July 2008: Henri Paulson announces the refinancing of Freddie Mac and Fannie Mae, the two funds that guarantee mortgages in the United States. 7 September 2008: Refinancing Fannie Mae and Freddie Mac by nationalizing them. September 15, 2008: Bankruptcy, the first of a long list started by Lehmann Brothers. Merrill Lynch was saved by Bank of America. September 16, 2008: AIG the American insurance went bankrupt.it was bought later by the U.S. government. September 26, 2008: Bankruptcy of the first retail bank, Washington Mutual was bought by JPMorgan. September 30, 2008: Dexia went bankrupt; refinanced later by the Belgian and French governments. October 3rd, 2008: American Congress Voted for the Paulson rescue plan to save the financial market. 6 October 2008: The historical fall of the CAC40 and the Dow Jones, this continued throughout the week. October 8, 2008: Major central banks have lowered their interest rates based on a mutual agreement. October 12, 2008: European Union announced a bailout of the financial market. October 15, 2008: The French Parliament voted for a bailout of the banks. Quick remind of the banks losses: Banks Losses % of total losses recapitalization Citigroup 55,1 11,0% 49,1 Merrill Lynch 52,2 10,4% bought by Bank of America UBS 44,2 8,8% 28,4 HSBC 27,4 5,5% 3,9 Wachovia 22,7 4,5% bought by Citigroup Bank of America 21,2 4,2% 20,7 Morgan Stanley 15,7 3,1% 5,6 IKB Deutched 15,1 3,0% 12,4 Washington Mutual 14,8 3,0% bought by JP Morgan Chase Royal Bank of Scotland 14,5 2,9% 23,8 JP.Morgan Chase 14,3 2,9% 9,7 Lehman Brothers 13,8 2,8% Bankrupt Deutsche Bank 10,6 2,1% 6,2 Crà ©dit Suisse 10,5 2,1% 3,0 Wells Fargo 10,0 2,0% 5,8 French banks Crà ©dit Agricole 9,0 1,8% 8,7 Fortis 7,3 1,5% Nationalized Socià ©tà © Gà ©nà ©rale 6,7 1,3% 9,6 Natixis 5,4 1,1% 12,1 BNP Paribas 3,9 0,8% 0 Dexia 1,7 0,3% Source: Bloomberg Nationalized Caisse dà ©pargne 1,2 0,2% 0 Total 501,1 352,9 What the ECB did during the crisis : 2 big phases The first phase of the turbulence During the first phase of the turbulence on the capital markets, which lasted from August 2007 to mid-September 2008 and was characterized by a systemic shortage of liquidity, the ECB has amended the terms of the provision of technical applying liquidity in normal times. It has, at the same time, fully utilizing the flexibility offered by its operational framework for the implementation of monetary policy. First, the Eurosystem has adjusted the distribution of liquidity during the period of reserve in advance by providing liquidity, compared to what it does in normal times. Thus, at the beginning of the maintenance period, ECB systematically allocated volume of liquidity than the usual theoretical reference in its main refinancing operations, while still aiming for balanced liquidity conditions at the end of the maintenance period. In this way, the total supply of liquidity throughout the period remained unchanged. These measures tended to take into account changes in the profile of the liquidity demand made by the banks. Second, the Eurosystem has also provided liquidity to the banking system through procedures open market that had been little or no use before the onset of turbulence. Particularly in response to the increased demand for bank financing in the longer term, the Eurosystem has significantly extended the average maturity of its loans to banks in the euro area. Accordingly, and to leave unchanged the total outstanding refinancing, the amount of liquidity provided through MROs in a week was reduced in corresponding proportions. The second phase of the turbulence In mid-September 2008, however, concerns about credit risk have greatly increased, tensions immediately propagated in the United States in the euro area, and the money market has virtually ceased to function. Therefore, the Eurosystem has intensified its efforts to allow solvent banks to continue their activities. And several additional measures were taken unprecedented in this direction. Thus, in mid-October, the ECB adopted as quite exceptional, a tendering procedure fixed rate full allotment for all main refinancing operations and the weekly refinancing operations more long term, with maturities ranging from one week to six months. This procedure will remain in effect as long as necessary in light of the market situation. It also increased the number and frequency of refinancing longer term by three months each additional refinancing operations, two for a term of three months and a period of six months, and introducing a special-term refinancing operation with a maturity corresponding to the duration of the period of reserve. Meanwhile, the ECB has implemented a new series of exceptional measures to temporarily expand the list of assets eligible as collateral in credit operations by the Eurosystem. Finally, the ECB has increased the supply of dollars in funding to its counterparties in conducting tenders fixed rate, full allotment and maturities from one week to three months, through swap agreements with the Federal Reserve System of the United States. These measures, which reflect the important role of strengthening intermediation taken by the Eurosystem during this turbulent period helped ensure the continued access of solvent banks to liquidity despite the monetary market failure. In addition, they have helped to reduce tensions in some segments of the money market. For example, the difference between the rates of unsecured long-term Euribor rate and index swaps on a daily basis is significantly reduced, even if it remains at a level high, significantly higher than the levels observed prior to September 2008. In practice, these measures imply that banks in the euro area can get as much euro liquidity they wish, through both our weekly operations as our futures, and this by using a wide range of assets as collateral. In total, the balance sheet of the Eurosystem increased by a total of approximately EUR 600 billion since the end of June 2007 until today, an increase in the size of 65%, the assets reflecting the sharp rise in the volume of liquidity provided and liabilities resulting from concomitant use banks to the deposit facility. These measures were effective to address the shortage of liquidity in the interbank market. They cannot, however, remove the heightened concerns regarding credit risk. In this regard, the money market conditions are not yet standardized and remain strongly affected by a high degree of risk aversion. The increase in the intermediation role of the Eurosystem has proved a necessary measure to cope with the current money market malfunction, but it can, and should, be considered as a temporary measure. The Eurosystem would naturally resume interbank lending and traditional intermediation activity of banks. The recent decision of the ECB to reduce the corridor of standing facility rates to 200 basis points around the interest rate on the main refinancing operations aims to stimulate interbank activity. That s why we observe, in this context, a reduction in the demand for bank refinancing operations during our open market and a corresponding decrease in the use of the deposit facility. We see a parallel increase in the volumes underlying the calculation of the EONIA. What the fed did during the crisis : 5 big phases Phase 1: 2007 / mid-March 2008 | From late spring, the Fed began to note that the growth in the U.S.is slowing down and targets need to be lowered. However, the inflation and underlying inflation are going up. The Fed believes that with this rate of inflation the Fed Funds rate should stay at 5.25%. But in August 2007, the subprime crisis and tensions within the bank market appeared. On 10 August 2007, the Fed announced the first corrective measures to the problems, by injecting liquidity into the market via refinancing operations. The liquidity crisis remains stable, and the Fed lowers the penalty on the discount rate. on August 17, Penalty decreased from 100 bp to 50 bp. The Fed lost any hope of a possible economic growth so they lowered their key lending rate despite a strong inflation. The rate reaches the 3% after his 5.25% in only 6 months which is one of the fastest decline the USA ever had. At the same time, the Fed put in place specific measures to facilitate access to liquidity for U.S. and international banks. Refinancing operations are going up. Then the Fed launches in December 12th the Term Auction Credit Facility (TAF). It consists in lending $ 60 billion within 28 days by accepting as collateral a large range of assets at a lower rate (discount rate). Line Swaps had been implemented with European banks. Nevertheless, the crisis has continued to expand, hitting after the interbank market, the Mortgage Backed Securities (MBS) guaranteed by Government Sponsored Enterprise (GSE, primarily Fannie Mae and Freddie Mac), and the credit and equity markets. From March 2008, the Fed further increases its liquidity loans with the creation of the Term Repurchase Transaction ($ 80 billion) and the TAF increased from $ 60 billion to $ 100 billion. Then they created the Term Securities Lending Facility (TSLF) which can lend up to $ 200 billion. In 14 of March, the Fed saved the Bear Stearns bank which was one of the best news since the beginning of the crisis. Its the first time that the Fed intervenes directly on the market, since 1929 and rescues a bank on behalf of the Too big to fail. Disturbances become wider for that time, so the Fed decided to gives access to a last resort facility to the investment banks that remain. In addition, the penalty discount rate is reduced to 25 basis points against 100 bp before the crisis. Finally, the Fed decides to lower its key lending rate, from 3% to 2.25% in March and 2% in May. Then follows minor adjustments to the lending facilities (TAF increased to $ 150 billion, with an extend in the loans maturity, larger swap lines with other central banks). The Fed believes that the financial situation has stabilized and that the U.S. economy does not need more monetary stimulus. The rate is stable until September. we should notice that the money lent by the Fed do not inflate the monetary base: they sell bonds to finance its loans. Phase 2: September 2008 / February 2009 In September 2008, the market turmoil began with the announcement of the tutelage of Freddie Mac and Fannie Mae on September 7. Between Monday 8 and Friday 12, a lot of rumors alarmed the financial markets about financial stocks and a fall in prices. Sunday 14 September 2008, the announcement of the Lehman bankruptcy, but also the acquisition of Merrill Lynch by Bank of America and the profound difficulties of AIG and Washington Mutual, will be the trigger of one of the most tempestuous financial crisis. The Fed will react very quickly to ensure market stability and mitigate systemic risks. Then, to counteract deflationary pressures, it prepares the transition to an unconventional monetary policy. Without going into the details of all measures taken between September and December 2008, the Fed will support Fannie Mae and Freddie Mac, to participate in the rescue of financial institutions significantly expand the scope of collateral accepted for loans, buy directly from financial assets (MBS, GSE debt, short-term debt) and lower at lower interest rates. The risks to the global economy is now cataclysmic Fed with the ECB, SNB, Bank of Canada and the Riksbank (Sweden) undertake the first rate cut concerted history (-50 bp), the October 8, 2008. The U.S. rate is brought to the lowest in December (band 0% / 0.25%). Remember that this phase is that the Fed reduces interest rates to a minimum and that the liquidity injected quickly becomes unsterilized. Is to do quantitative easing without saying. From September 2008, the liquidity injected exceeds the amount of Treasuries (debt U.S. State) remaining on the balance sheet of the Fed. At first, the U.S. Treasury this imbalance, but the beginning of October, the dam broke. The Fed then engages in a policy of balance sheet expansion unsterilized, with an increase in the monetary base (reserve money). It passes 900 billion to $ 1 $ 800 billion between September 2008 and March 2009. Phase 3: March 2009 / July 2010 | 1 quantitative easing QE 1 From early 2009, the Fed began to wonder how to stimulate the economy with rates at 0%? In a speech on 13 January 2009, the Bernanke Doctrine is exposed. It is anchored rate expectations at low levels, changes in the composition of assets held by the central bank to increase the size of the balance sheet of the central bank (quantitativism). At the FOMC March 18, 2009, the central bank crossed the Rubicon and one announces quantitative easing targets for unsterilized purchases of debt: debt GSE ($ 200 billion), MBS ($ 750 billion) and debt (300 billion $). The program runs until the end of 2009. In addition, the Fed introduced the famous sentence The Committee will Maintain the ranks for the target federal funds rate at 0 to 1/4 percent and anticipates economic terms That are Likely to warrant exceptionally low levels of the federal funds rate for year extended period . It is committed over a long period (years) to keep rates low. Until late 2009, the U.S. economy out of the recession, there will be more movement towards monetary policy. Speech on growth becomes increasingly positive. The amount of purchased debt agency will even reduced to $ 175 billion. From the spring, the FOMC no longer evokes purchases in its communiquà ©s. It should be noted that liquidity injections become less important, quantitative easing 1 (EQ 1) resulting in an excess supply of liquidity growing. Loan facilities are largely removed. Phase 4: August 2010 / August 2011 | First fear of double dip QE 1.2 and QE 2 The Fed noted that the growth was not as strong as expected, that the labor market remains very poor and that underlying inflation plunges more. She decided in August not to allow its balance sheet to deflate some debt maturing (ie destruction of money injected). She reinvested the money recovered in U.S. government bonds so that the long-term balance sheet size remains unchanged. There is no additional injection, just a re-investment (EQ 1.2). Continuing economic deterioration (rising unemployment, inflation at its lowest for 50 years), the Fed launches quantitative easing 2 (QE2). She decided in November 2010 to buy $ 600 billion of debt] b (from November 2010 to mid-2011) and continue to reinvest. The balance begins to swell until June 2011. FOMC releases are progressively more positive, even if economic activity is considered at best a phase of moderate recovery. Then, from the late spring, it deteriorates again. Following the August 2011 FOMC, the Fed announced that it will keep the Fed Funds rate unchanged until mid-2013 (at least 2 years). The idea is to anchor expectations on Fed Funds, thus lowering the rate to maturity longer. Phase 5: September 2011 / | The twist, QE 2.2 Fear of double dip continues to strengthen. At the end of September 2011 FOMC, the Fed announces a twist. It extends the maturity of its holdings of U.S. government bonds. This operation twist is to sell the bonds in the short term (less than 3 years) to buy long-term loans (between 6 and 30 years). The Fed will twister for $ 400 billion. This was already implemented in the 60s (1961-1963). The Fed will now reinvest the money recovered on refunds of MBS and agency debt and MBS in more in bonds to support the mortgage market in the USA. The idea is to lower interest rates in the long term, short-term ones are already almost at its lowest. These two transactions will not generate inflation balance as purchases will be offset by sales or repayments (no printing money, no QE3 but QE 2.2). Comparison  : ECB vs FED Similarities: The European System of Central Banks and the US Federal Reserve are the two biggest and most active central banks. Although they present many apparent differences, they still have several similarities: à ¢Ã¢â€š ¬Ã‚ ¢ They are independent from any direct political authority and hence are protected from political interferences. à ¢Ã¢â€š ¬Ã‚ ¢ They have decentralized structures: a system of national/regional banks coordinating with a central entity, i.e. the Board of Governors. à ¢Ã¢â€š ¬Ã‚ ¢ They modify the interest rate structure by targeting short-term money-market rates, specially the Marginal Lending Rate in the EU or the discount window in the US and the inter-bank rates (Federal Funds rate in the US). à ¢Ã¢â€š ¬Ã‚ ¢ They use the basic monetary policy tools to achieve their objectives: reserve requirements, discount window lending and open-market operations. à ¢Ã¢â€š ¬Ã‚ ¢ They share the s

Free Essays - Wrinkle in Time :: Wrinkle in Time Essays

  Wrinkle in Time By Madeline L ´Engle In Willstead town, in North Carolina strange things are happening. Do you want to know more? Well in A Wrinkle in Time by Madeleine L’Engle, a wonderful writer tells all the weird things that are happening.   The setting of this story is on North Carolina, at the town of Willstead in the year of 2005.   One day Margaret was left by the Aliens when she was two- months old at planet Earth, and was found by the Murrie’s, a nice couple, that had one year of marriage. Several years had passed and Margaret grew up like a normal girl. Now she has twin brothers and a Collie dog. At school everybody thinks that she is a freak, but she is a ten-year-old girl, with beautiful eyes and a lot of intelligence. She is an alien but no one knows not even her. Margaret came to Earth by a computer fraud that caused a wrinkle in time. An old woman called Mrs. Whatsit came to Earth with a job to take Margaret back. She visits Margaret and buys her nice things to win Margaret’s confidence. Mrs. Whatsit lived in the middle of the woods. One day a robbery had been reported to the police. It was a missing blanket and the thief was Mrs. Whatsit because she needed a lot of warmth because planet Earth was too cold for them. The Tesseract that is the name of the species that Margaret and Mrs. Whatsit belong to. At school some rare people that were the same species of Margaret went to do a contest.  Ã‚   Margaret won the contest but this was no contest this were a series of exams that they had to do to Margaret to see if she could live in her home planet and see if she was fit to live there. Mrs. Whatsit was there and after the exams she sat down Margaret and started telling everything about her species and how she got here. At first Margaret didn’t believe it but afterwards she started understanding all the things she had passed through all alone with no one that could understand her. Mrs. Whatsit tells Margaret if she wants to go back where she is supposed to be and she stayed thinking and told her sh e would tell her later. Each day Mrs. Whatsit and Margaret went together to the park and Mrs.

I Wish to Pursue an MS Degree in Electrical Engineering :: Graduate Admissions Essays

I Wish to Pursue an MS Degree in Electrical Engineering    During my senior year at Purdue University, I made a decision that has impacted the entire course of my education. While my classmates were making definite decisions about their career paths, I chose to implement a five-year plan of development and growth for myself. I designed this plan in order to examine various careers that I thought might interest me, as well as to expand upon my abilities at the time. As I was attaining a BS degree in Electrical Engineering, I decided to focus primarily on fields related to the VLSI (Very Large-Scale Integrated) circuits area. My main goals were either to gain work experience or to further my education by pursuing an MS degree in Electrical Engineering (MSEE). I saw an opportunity to both work and learn through employment at Xilinx Inc. Operating as a product engineer at a successful, high-tech semiconductor company has enabled me to utilize my technical and interpersonal skills in new and challenging ways. The position has also allowed me to i nteract with a multitude of departments including marketing, integrated circuit (IC) design, software/CAD development, manufacturing, reliability, accounting, and sales. I thus have gained an array of experience that extended beyond the parameters of my own responsibilities. In the workplace, I rely heavily upon the interpersonal techniques I developed as a counselor in a Purdue residence hall, as well as the organizational skills I had acquired through holding various leadership positions in cultural and engineering societies. I have also cultivated an interest in high-technology marketing that has continued to grow throughout my career.    My experiences with Xilinx have heightened my hunger for knowledge in the VLSI field. Two months after joining the corporation, I applied to several part-time programs in the vicinity that would allow me to acquire an MSEE degree within two to three years. San Jose State seemed an ideal choice, for its evening MSEE courses would allow me to pursue two independent, full-time positions concurrently. The San Jose program has complimented my Xilinx duties well; both demand large levels of energy and enthusiasm while guiding me to my ultimate goal a high degree of education in VLSI sciences. The resources that I poured into both endeavors have reaped many gains. I have been promoted to a Product-Yield Engineering position within Xilinx's Coarse Grain Static Memory (CGSM) Product Engineering division.

Child Psychology

A Child Psychologist generally specializes in understanding, preventing, diagnosing and treating emotional or behavior problems in children. A Child Psychologist evaluates and treats emotional or learning disorders in children. This work can be done in a private, clinical, or public sector and counseling practice or in school and other learning environments. They are engaged in the study of the psychological processes of children and adolescents, particularly, how they are different from adults in their psychological development.Many Child Psychologists specialize in abuse counseling, learning development, speech disorders or general practice. Child Psychologist Educational Requirements Anyone wishing to practice as a Child Psychologist should check the requirement for certification and licensing in their state. In most states, an Ed. S. in School Psychology or School Counseling is needed to work in a school. Most Child Psychologists earn a Doctor of Psychology or a Ph. D. in Child P sychology.These degrees equip individuals with the skills necessary to meet minimum certification requirements, including a thesis and graduate study. A 1-year internship is necessary for anyone looking to practice in a clinical setting, counseling or school psychology. (http://degreedirectory. org/articles/Child_Psychologist_Job_Duties_Employment_Outlook_and_Educati onal_Requirements. html) Personal Qualities And Abilities Needed To become a Psychologist you will need to be:Patient, Caring, Good Listener, Good Communication Skills, Good Presentation Skills, Know Knowledge In A Scientific Way, Hard Working, Understanding, Polite, and Helpful. Working Conditions And Possible Places Of Employment About 34 percent of psychologists are self-employed, mainly as private practitioners and independent consultants. Employment growth will vary by specialty; for example, clinical, counseling, and school psychologists will have 11 percent growth; industrial-organizational psychologists, 26 perc ent growth; and 14 percent growth is expected for all other psychologists.Acceptance to graduate psychology programs is highly competitive. Job opportunities should be the best for those with a doctoral degree in a subfield, such as health; those with a master’s degree will have good prospects in industrial-organization; bachelor’s degree holders will have limited prospects. (http://www. bls. gov/oco/ocos056. htm) Advancement Opportunities Psychologist can start out from being in school to becoming an intern. Then from an employee to earning a raise.Then from an employer to opening a private practice. Wages And Benefits Psychologist Benefits: High Annual Salary Psychologists in clinical, counseling or school-related roles make an average of $70,190 a year, reports the U. S. Bureau of Labor Statistics, www. bls. gov. Furthermore, industrial-organizational Psychologists, who are often employed as consultants by businesses, can earn six-figure incomes as they gain experie nce. Additionally, school psychologists can make over $40,000 in their first year, reports Payscale. com.Clinical Psychologists in private practice can set their hourly fees as high as market demand allows. Psychologist Benefits: Knowledge of Human Nature In order to be successful in their jobs, Psychologists must have a keen understanding of human nature. During school, they are taught many different theories of human behavior as well as various therapeutic techniques. Psychologists can informally apply their training to events that occur in everyday life to create more harmonious relationships with others. Psychologist Benefits: Flexible Work HoursPsychologists new to the field or those who work for schools, businesses and other organizations aren't usually able to set their own hours, but Psychologists in private practice can. They can determine when to set appointments with patients. Many Psychologists in private practice choose to work evenings, mornings or weekends, depending on personal preference. (http://degreedirectory. org/articles/What_are_the_Benefits_of_Being_a_Psychologist. html) Median annual wages of wage and salary clinical, counseling, and school psychologists were $64,140 in May 2008.The middle 50 percent earned between $48,700 and $82,800. The lowest 10 percent earned less than $37,900, and the highest 10 percent earned more than $106,840. Median annual wages in the industries employing the largest numbers of clinical, counseling, and school psychologists were: Offices of other health practitioners| $68,400| Elementary and secondary schools| 65,710| State government| 63,710| Outpatient care centers| 59,130| Individual and family services| 57,440| Median annual wages of wage and salary industrial-organizational psychologists were $77,010 in May 2008.The middle 50 percent earned between $54,100 and $115,720. The lowest 10 percent earned less than $38,690, and the highest 10 percent earned more than $149,120. Job Outlook For The Future The jo b outlook for Child Psychologist is pretty good for the future. There will still be people with issues and problems. As the population grows, there will be even more troubled people or people who seek marriage counseling. Address For Additional Information http://www. childpsychologist. com/ Child Psychology A Child Psychologist generally specializes in understanding, preventing, diagnosing and treating emotional or behavior problems in children. A Child Psychologist evaluates and treats emotional or learning disorders in children. This work can be done in a private, clinical, or public sector and counseling practice or in school and other learning environments. They are engaged in the study of the psychological processes of children and adolescents, particularly, how they are different from adults in their psychological development.Many Child Psychologists specialize in abuse counseling, learning development, speech disorders or general practice. Child Psychologist Educational Requirements Anyone wishing to practice as a Child Psychologist should check the requirement for certification and licensing in their state. In most states, an Ed. S. in School Psychology or School Counseling is needed to work in a school. Most Child Psychologists earn a Doctor of Psychology or a Ph. D. in Child P sychology.These degrees equip individuals with the skills necessary to meet minimum certification requirements, including a thesis and graduate study. A 1-year internship is necessary for anyone looking to practice in a clinical setting, counseling or school psychology. (http://degreedirectory. org/articles/Child_Psychologist_Job_Duties_Employment_Outlook_and_Educati onal_Requirements. html) Personal Qualities And Abilities Needed To become a Psychologist you will need to be:Patient, Caring, Good Listener, Good Communication Skills, Good Presentation Skills, Know Knowledge In A Scientific Way, Hard Working, Understanding, Polite, and Helpful. Working Conditions And Possible Places Of Employment About 34 percent of psychologists are self-employed, mainly as private practitioners and independent consultants. Employment growth will vary by specialty; for example, clinical, counseling, and school psychologists will have 11 percent growth; industrial-organizational psychologists, 26 perc ent growth; and 14 percent growth is expected for all other psychologists.Acceptance to graduate psychology programs is highly competitive. Job opportunities should be the best for those with a doctoral degree in a subfield, such as health; those with a master’s degree will have good prospects in industrial-organization; bachelor’s degree holders will have limited prospects. (http://www. bls. gov/oco/ocos056. htm) Advancement Opportunities Psychologist can start out from being in school to becoming an intern. Then from an employee to earning a raise.Then from an employer to opening a private practice. Wages And Benefits Psychologist Benefits: High Annual Salary Psychologists in clinical, counseling or school-related roles make an average of $70,190 a year, reports the U. S. Bureau of Labor Statistics, www. bls. gov. Furthermore, industrial-organizational Psychologists, who are often employed as consultants by businesses, can earn six-figure incomes as they gain experie nce. Additionally, school psychologists can make over $40,000 in their first year, reports Payscale. com.Clinical Psychologists in private practice can set their hourly fees as high as market demand allows. Psychologist Benefits: Knowledge of Human Nature In order to be successful in their jobs, Psychologists must have a keen understanding of human nature. During school, they are taught many different theories of human behavior as well as various therapeutic techniques. Psychologists can informally apply their training to events that occur in everyday life to create more harmonious relationships with others. Psychologist Benefits: Flexible Work HoursPsychologists new to the field or those who work for schools, businesses and other organizations aren't usually able to set their own hours, but Psychologists in private practice can. They can determine when to set appointments with patients. Many Psychologists in private practice choose to work evenings, mornings or weekends, depending on personal preference. (http://degreedirectory. org/articles/What_are_the_Benefits_of_Being_a_Psychologist. html) Median annual wages of wage and salary clinical, counseling, and school psychologists were $64,140 in May 2008.The middle 50 percent earned between $48,700 and $82,800. The lowest 10 percent earned less than $37,900, and the highest 10 percent earned more than $106,840. Median annual wages in the industries employing the largest numbers of clinical, counseling, and school psychologists were: Offices of other health practitioners| $68,400| Elementary and secondary schools| 65,710| State government| 63,710| Outpatient care centers| 59,130| Individual and family services| 57,440| Median annual wages of wage and salary industrial-organizational psychologists were $77,010 in May 2008.The middle 50 percent earned between $54,100 and $115,720. The lowest 10 percent earned less than $38,690, and the highest 10 percent earned more than $149,120. Job Outlook For The Future The jo b outlook for Child Psychologist is pretty good for the future. There will still be people with issues and problems. As the population grows, there will be even more troubled people or people who seek marriage counseling. Address For Additional Information http://www. childpsychologist. com/

Discuss the Marketing Environment Essay

The Marketing Environment consists of a complex set of interacting forces and influences outside the marketing department of an organization. The Marketing Environment affects the organization’s ability to build and maintain mutually beneficial relationships with its target customers. Through continuous monitoring its Marketing Environment a company must be able to anticipate change and act in a pro active way rather than leaving it to a reactive reaction. It must also keep up to date by realizing any effective changing forces. It does this by monitoring SWOT i.e. Strengths, Weaknesses, Opportunities and Threats. Obviously wanting to maximize on Strengths and Opportunities and eliminate Weaknesses and Threats. Marketers must use marketing intelligence and market research when monitoring the Marketing Environment. The Marketing Environment can be divided into two main categories; the Micro and the Macro Environment. The Micro Environment This can also be divided. Internal Environment and Forces close to the organization. The Internal Environment. This consists of Top Management and Other departments. The Top management is responsible for setting the organizations overall mission, objectives, strategies and policies to guide all the organizations departments and employees. The success of the company is dependant on the competence of the Top managers. Other departments must co-ordinate their efforts as to maximize potential and avoid conflicts. The smoother the departments work together the better the overall outcome is going to be. All employees should realize the importance of being market-orientated and of delivering customer satisfaction. Forces close to the organization. This consists of Competitors, Marketing  Intermediaries, Suppliers of resources, Customers and Publics. Competitors: must offer superior value & satisfaction than their competitors and make it widely known throughout the target market. Companies must make an effort to attract their target customers and retain them by delivering customer satisfaction. These companies must watch their competitors closely as to retain their market share and maybe win some of the competitor’s market share. Marketing Intermediaries: These are firms that assist the company hiring them to promote, sell and distribute its products to target customers. Resellers will help find target customers or sell to them. Transportation firms help companies stock and transport goods. Agencies providing marketing services are marketing research agencies, advertising agencies, and marketing consulting firms. Financial intermediaries are organizations that will sell financial services to companies. Suppliers of resources: A company must be very careful as to watch for any changes (shortages, delays, labour strikes etc) as they are damaging to the companies sales and reputation. The organization is as efficient as its suppliers. Customers: Firstly a company must identify its target market. Then develop the right 4P’s to build long term customer relationships. An organizations target customers may be part of different markets. Consumer markets which are people who buy for personal use, these are called final consumers. Business Markets are companies that buy goods or services in order to use them for production in order to resell at a profit, these are called business customers. Government markets rent goods or services to carry out the main functions of the government. Institutional markets are schools & hospitals that provide goods or services to those in the organization. International markets are any of the customer markets but are situated overseas. Each market has its own particular features. Organizations must study the market/s to which they are selling to so as to understand its/their characteristics; including the way buying decisions are made. Publics: are groups that have an actual or potential interest in or on the companies ability to achieve its objectives. These publics include Media, Financial, Local, Internal, General, Citizen Action, or Government. The Macro Environment The Macro Environment can be considered as forces. These forces can be split into four categories: Demographic forces, Natural forces, Political forces and Social forces. Demographic Forces This is the study of the population. Demographic trends include Growing world population, Ageing population, Increasing Diversity, Changes in family structure, and a more Educated population. Growing world population: The number of needs increases as the population increases. These increased needs backed by purchasing power create market opportunities. These opportunities must be exploited. Ageing population: If the older segment of the population increases opportunities for companies that target this segment of the market. Likewise it creates threats companies that target a young market. These companies can react by offering a product suitable for an older market on top of their original product. Increasing diversity: The nationality and racial make up of the country/ies where they are selling their products should be considered. People’s wants are generally due to their nationality or race. Due to advancements in technology and transportation this has and is likely to continue increasing. Changes in family structure: Nowadays families have gotten smaller. This means that the usual budget for food etc is obviously going to get smaller i.e. with a higher standard of living an increase in purchases of various  products is probable. Women working have also increased so with money in their pocket a new segment of potential customers has been created. There is also a shift in husband and wife roles so now household products should also be aimed at husbands as well as wives. A more educated population: As a result of this the demand for quality products, book, formal clothing etc has increased. Natural Forces These are forces to do with natural resources. These forces can be split into four categories: Raw material shortage, Increased pollution, Increased government intervention and Environmentalism. Raw Material Shortage: Non renewable resources pose a serious threat. Companies face problems such as increasing costs and protests. Some day they’ll have to find substitute materials to use in production. Renewable resources also pose a problem if depletion rate supersedes its renewal rate. Companies using these resources face the same problems. Seemingly infinite resources are being destroyed due to pollution. Companies causing such harm face bad word of mouth and a bad reputation. Increased pollution: This poses a health as well as other threats to the general society. These industries must face bad word of mouth. Increased government intervention: This intervention in resource management varies across countries. Government laws and regulations must be monitored by companies as to not break laws and face consequences. Environmentalism: These cause pressure; sometimes so much that they actually damage a company’s reputation and influence government intervention. Now companies go beyond and develop a plan that is known as an environmentally sustainable strategy and develop ecologically safer products. Political Forces These are forces such as laws, government agencies and pressure groups. These forces vary with country and possibly time. There job is to protect organizations from each other, consumers from organizations and their deceptive practices etc, and society as a whole. Businesses are not only limited by laws and regulations but ethical and social codes are also considered. Most Businesses adopt the Societal Marketing Concept. Economic Forces These are forces that affect consumers’ spending ability and spending patterns. These are split into Changes in Average Income, Changes in Income Distribution, and Changing Consumer Spending Patterns. Changes in Average Income: means that a high average income level by means of a raise can lead to an increase in demand for quality products and a fall for cheaper, more inferior products. Obviously a fall in average income can lead to the opposite. Companies must therefore be very aware of the changing in incomes and adjust to the accordingly. Changes in Income Distribution: The segments are rich, middle income, and low income and people living on welfare. These segments sizes are likely to change over time. Once again the company must be monitoring this to spot changes to identify the trends in its target market/s. Companies can choose to offer two or more variations of their product in order to satisfy all parts of the Income Distribution chain ex. Books. Changing Consumer Spending Patterns: Patterns are changing every day. As income increases products such as food etc are spent on less than housing, transportation etc. This is what help businesses decide on whether to expand in the same line of products or find an alternative line. Cultural Forces Beliefs and values are divided into: core beliefs and values and beliefs  which are difficult to change, and secondary beliefs and values which are easier to change. A company must either find a way of adjusting its product to fit the core beliefs and values or try and change the secondary beliefs through marketing activities etc. These beliefs are mainly attributes of ones society. A person holds views on: 1. her/himself – people buy products that match their personalities. 2. other people – people want to interact with society, therefore there is a demand for  products that improve their relationships with others ex. Clubs etc. 3. various institutions – a positive attitude towards an institution means that people will trust this institution. Companies do this buy adopting the Societal Marketing Concept. 4. his/her society – people prefer buying products made in their own company. 5. the natural environment – if people feel close to nature a demand in products such as health food will increase. i.e. if the company harms the environment this will reflect badly. 6. the universe and spirituality – if religious convictions and practice falls, materialism  takes over. If it doesn’t fall companies promote their products with a spiritual theme. Any organization needs to research such views and adjust each of the 4P’s accordingly. Technological Forces A new technology implies new market opportunities for some organizations and threats for others. Companies once realizing this must keep up to date in order for technology to help them become more efficient, thus making them more successful.