Compare and contrast the financial systems of two different countries. Use an institutional approach to describe the system. Comment on the impact on, and response to the GFC in each country Essay Example for Free

Compare and contrast the financial systems of two different countries. Use an institutional approach to describe the system. Comment on the impact on, and response to the GFC in each country Essay 1.0 Introduction A financial system inquires for efficient allocation of resources among the surplus and deficit units (Viney 2009) as such it encourages more savings where funds are provided for investor to invest and also ease the transactions for goods and services (Viney 2009). There are three main components in the financial systems which are the financial institutions, financial instruments and financial markets. All three types of financial system each carry different function, roles and regulations. However, financial institutions will be mainly focus in this research essay. Global Financial Crisis (GFC), also known as the ‘great recession’ occurs in the year of approximately 2007-08. GFC has caused a several impact on the economy which leads to a several collapse of the financial institutions. For instance, the collapse of Lehman Brothers, one of the major investment banks in US (Australia Bureau of Statistics 2010). Thus, the objective of this essay is to examine both financial system of the chosen countries which are United States and Australia, also the impacts and responses on the GFC in both of the chosen countries. 2.0 Compare and Contrast both Financial Systems 2.1 Central Bank The central bank of the United States (U.S.) is known as Federal Reserve System (FED) whereas the central bank of Australia is known as the Reserve Bank of Australia (RBA). The Federal Reserve System’s structure consist of the Board of Governors which are duly appointed by the president, the Federal Open Market Committee (FOMC), and 12 regional Federal Reserve Banks located throughout the major states in the country (The Federal Reserve Board 2003). Banking in U.S. is regulated at both federal and state level. Unlike U.S., Australia has only one central bank which is the Reserve Bank of Australia. However, both central banks are independent within their government (Reserve Bank of Australia 2001) whereby for FED, the monetary policies decisions do not have to go through the President’s authorization, and for RBA, they have statutory authority established by an act of parliament which grants them  specific powers and obligations to carry out necessary policies (Reserve Bank of Australia 2001). On the other hand, RBA has two board, which are the reserve bank board and payment systems board (Reserve Bank of Australia 2001). The reserve bank board is responsible for monetary and banking policy whereas the payment systems board is responsible for controlling risk in the financial system, promoting the efficiency of the payments system, and promoting competition in the market for payment services, consistent with the overall stability of the financial system (Reserve Bank of Australia 2001). The role of FED is to conduct the country’s monetary policy, which includes full employment, stable prices and moderate long term interest rates as stated in the Federal Reserve Act (Board of Governors of the Federal Reserve System 2008). Furthermore, they maintain the stability of the financial system, supervise and regulate banking institutions, provide financial services to depository institutions, and foreign official institutions. FOMC will determine the cost and availability of money and credit in the country’s economy by affecting the discount rate, reserve requirements and controlling the open market operations (Board of Governors of the Federal Reserve System 2012). Likewise, the role of RBA is to conduct monetary policy as well, which includes the maintenance of price stability, full employment and the economic prosperity and welfare of the Australian citizens (Reserve Bank of Australia 2001). Besides that, they also set the cash rate to meet a medium term inflation target (Reserve Bank of Australia 2001). Moreover, RBA must maintain a strong financial system and efficient payments system and the issuing of the nation’s bank notes. Selected banking services are provided to the Australian government, agencies, official institutions, and a number of overseas central banks (Reserve Bank of Australia 2001). 2.2 Commercial Bank Commercial banks in the U.S. are quite similar to those of Australia whereby their main role is to act as a financial intermediary by channeling funds from agents who deposit money and lenders who needs fund and wants to borrow. These agents and lenders include households, businesses, governments and foreigners. Australia offer products and services which include balance sheet transactions and off-balance-sheet transactions (Viney 2009). For balance sheet transaction, the first purpose is to loan activity to match the available amount of deposits that they received from customers. This activity is known as assets management (Viney 2009). The second purpose is to manage their sources of funds in order to ensure that they have sufficient amount of funds available to meet the loan demand or any other form of commitments. This activity is known as liabilities management (Viney 2009). For off-balance-sheet transactions, it includes a substantial volume of business that is not recorded either an asset or liability on their balance sheet. In comparison, U.S. obtains their funds (liabilities) by issuing deposits, checking deposits, time deposits, saving deposits (Samolyk 2004). For their use of funds (assets), it includes making commercial, consumer, and mortgage loans, and by buying U.S. government and municipal bonds (Samolyk 2004). Therefore, commercial banks play an important role in funding business borrowers. The percentage of non-financial business borrowing that commercial banks fund on their balance sheets has not declined remarkably in the past five decades or so. The commercial banks in U.S. provide trade financing, foreign exchange, corporate finances and miscellaneous banking services which include currency specified credit cards, corporate checking accounts and lock boxes (Ireland n.d.). Moreover, the existence of commercial banks made reliable transfer of funds between different countries all over the world possible. Furthermore, the distribution of valuable economic and business information among clients around the world is made possible as well (Samolyk 2004). Similarly, there are basically two functions of a commercial bank in Australia. The primary functions are obviously to accept deposits from individuals, and grant loans and advances for personal or corporate purposes. The secondary functions consists of collecting and supplying business information, providing reports on the credit worthiness of customers, standing guarantee on behalf of its customers for making payments for the purchase of goods, vehicles, machinery, and so on. Besides that, they also provide customers with foreign exchange facilities; and they also provide safe deposits vaults or lockers for valuables, important documents and securities. In a nutshell, for both countries, there are several similarities in the roles of commercial banks. Commercial banks promote capital formation whereby they accept deposits from individuals and businesses, whereby these deposits are then made available to the businesses which will make use of them for industrious purposes in the country (Ireland n.d.). Moreover, they also provide short and medium term loans for entrepreneurs to invest in new enterprises or businesses. Furthermore, they also promote trade and industry since they offer the use of bank draft, bill of exchange, check, credit cards and letters of credit. In one way or another, they also influence the level of economic activity by influencing the rate of interest and the availability of credit in the market. Most importantly, they implement the monetary policy proposed by FED or RBA to bring about price stability, full employment and promote economic growth within the country. There are several sources of funds for these commercial banks. The main source would of course be from the current account deposits. However, they do have other sources as well such as demand deposits, term deposits, negotiable certificates of deposits, bills acceptance liabilities, foreign currency liabilities, loan capital and shareholders’ equity. 2.3 Non-bank Financial Institutions 2.3.1 Depository Financial Institution Depository institutions (DPI) act as a financial intermediary similar to a commercial bank, whereby its main task is to accept deposits from surplus units and then issue loans to the deficit units in the financial system (Viney 2009). The main regulator for Australia is Australia Prudential Regulation Authority (APRA) whereas for U.S. is the Federal Deposit Insurance Corporation (FDIC). As for U.S., there are about 9, 000 functional depository financial institutions in the U.S. They operate through 92, 000 branch offices located in different states (Finance Maps of World 2011). Their role is to set a benchmark for DPI in the ground of  commercial banking. The funds that are collected is used to meet the credit need of others (Finance Maps of World 2011). On the other hand, Australia’s DPI consists of three main institutions which are banks, building societies and credit unions (Reserve Bank of Australia 2001). There are a total of 171 institutions of which 55 are banks, 11 are building societies and 105 are credit unions (Reserve Bank of Australia 2001). 2.3.2 Investment banks and Merchant banks Investment banks and merchant banks primary objective is to collect funds and invest them in the market to achieve specific goals set for different types of investments (Viney 2009). There are generally two types of investment companies which are open-end or closed-end mutual funds. Open-end funds will accept new investment and trade in old ones, whereas for closed-end funds they only accept funds once and then do not take in any additional new funds. Investment companies have recently become more popular among U.S. and Australia, and have managed trillions of dollars. As for U.S. investment banks specialize in facilitating financial transactions rather than just providing finance. They have a good reputation as a financial innovator since their responsibilities includes the improvement of new financial products and services which must meet the ever changing needs of clients (Kumar, Chuppe Perttunen 1997). In contrast, investment banks and merchant banks in Australia are not considered an authorized bank but often referred to as money market corporations (Viney 2009). They do not have a depositor base to include in their assets. Therefore, they raise funds through the issues of securities from the international money and capital markets (Viney 2009). 2.3.3 Contractual savings institutions Contractual saving institutions offer contract that specify, in return for periodic payments to the institutions, and the institutions will make payments to the contract holders if any specified event occurs (Viney 2009). They include general insurance companies and superannuation funds. As for U.S., their insurance companies raise money mainly from the issuance of insurance policies and collecting annual premiums. Some might also borrow from the dept capital markets as an alternative source of funds. For superannuation funds, or more popularly known as pension funds in the U.S., they are funded by the deductions from employees’ monthly salary in addition with certain contribution by the employers (Cohen Schubert 2010). On the contrary, Australia have make it compulsory for their employees to contribute to the superannuation system (Cohen Schubert 2010) whereby for U.S., an estimated 78 million working Americans which include the sole traders, employees who work for small employers or even part timers, do not have access to a retirement fund (Cohen Schubert 2010). For U.S., it has firstly introduced as a beneficial payment of employment whereas for Australia, it was created as a comprehensive system from the start (McLennan 2000). 2.3.4 Finance companies Finance companies and general financiers are basically institutions who provide loans and charter finance to clients by borrowing funds directly from the financial market (Viney 2009). As for U.S., these institutions raise funds in the debt market by issuing securities. Therefore, they raise funds solely by issuing debt or borrowing from other institutions but not taking deposits directly (Samolyk 2004). Similarly for Australia, they raise funds by issuing commercial paper, bonds and medium-term notes (Reserve Bank of Australia 2001). 2.3.5 Unit trusts Unit trusts is formed under a trust deed, and is controlled and managed by trustee by selling units to the public as a means to raise funds whereby investors purchase units in the trust (Viney 2009). As for U.S., there are generally two types of unit trusts, one that falls under private management and another that falls under direct state authority. Their role mainly involves traditional banking activities that are related to issuance of loans and deposits. The major difference between private and state authority trust is state authority institutions obtain funds from deposits and through the sale of shares, whereas private institutions operate as an intermediaries by generating finance through providing investment opportunities to clients (Samolyk 2004). Likewise, Australia too has two different types which are public unit trusts and cash management trusts  (Viney 2009). Public unit trusts focus more on gathering investors’ funds and investing it into specific types of assets (Viney 2009). However, for cash management trusts, they focus more on trust deed which are open to the public by confining their investment to financial securities which are accessible through the short-term money market (Viney 2009). 3.0 The impact of GFC 3.1 United States The birth of the global financial crisis begin somewhere in 2008. It all started in early 2006 when the subprime mortgage market in the United States (U.S.) began to reveal an increasing rate of mortgage defaults due to the bursting of the housing bubble (Mishkin 2011). Subsequently, in late 2006, these defaults caused a decline in the U.S. housing prices after about a decade of extremely high growth statistics. Later on, the prime mortgage markets were affected as well and were showing a higher default rates by the end of 2007. Therefore, when the mortgages backing the securities began to fall in value, the value of the securities fell as well (Nielsen 2010). Looking at the fall in price of their assets, investors quickly attempt to liquidate their assets in around late 2007. Consequently, in 2008, a major financial crisis hit U.S. which led to the most severe recession since World War II. The financial crisis in the U.S. economy eventually spread to many foreign nations, affecting the global financial system, resulting in a global financial crisis (Shah 2010). The degree of the global financial crisis was so severe that some of the world’s largest financial institutions have collapsed. U.S. was no exception. History was made when one of the largest investment banks in the world, Lehman Brothers, collapsed in September 2008. Some other institutions have been vehemently bought out by their competitors at a low price, and in some cases, the governments of the richest countries in the world had no choice but to sought an expensive bail out and rescue plan to save some of the remaining large banks and financial institutions (Shah 2010). These were all done at the expense of the US taxpayers. Approximately $9.7 trillion of US taxpayers’ money alone have been spent for bailout packages and plans (Dhameja 2010). According to Bloomberg, $14.5 trillion, or about 33%, of the  value of the world’s companies have been wiped out by the crisis. Therefore, as credit became scarce and seeing an increase in the lack of confidence in the U.S. financial institutions, international banks started to increase the interest rate for inter-bank borrowing, known as the LIBOR (Mishkin 2011). Subsequently, a crash in the US stock market was observed, liquidity drying up, and employees were being laid off which cause an increase in the unemployment line (Dhameja 2010). U.S. was in a state of limbo even after eleven months since the fall of Lehman Brothers. Banks virtually stopped lending to each other. Although several proposals for stimulus packages and some bailout plans have provided some relief, it seems that there was nothing more that could be done to ease the situation (Mishkin 2011). At the same time, smaller businesses hardly had any chances for a bail out or rescue plan and more people went into bankruptcy. Additionally, there was a decline in the US imports from its major trading partners such as the European Union, Mexico and China, due to the slowdown in economic activity (Nanto 2009). Private sectors practically stopped borrowing, trade credit was also hard to obtain, and with continuous falling demand, especially investment goods and manufacturing durables like cars, export volume decreases, foreign GDP fell as well, trade volumes eventually collapsed (Dhameja 2010). Moreover, the risk premium on inter-bank borrowing which used to be close to zero, rose steeply to five per cent. Besides, the risk premium on corporate bonds rose to over six per cent. Although the US government tried to inject liquidity into the financial markets, the damage was already done (Chambers 2010). 3.2 Australia GFC has less effect on Australia as compared to other countries such as US, UK and etc. Most developed countries had suffered recessions where Australia experienced a down turn in the economy (Stevens 2009). However, there is no government’s support required by the financial institutions in such situations like capital injections or the acquisition of distressed loan portfolios (Australia Bureau of Statistics 2010). The major impact of the GFC has resulted on the loss of confidence in the household sector (Stevens 2009). This is due of the decline in the equity price causes a reduced of the household wealth (The Parliament of the Commonwealth of Australia 2009). Thus, this leads to an effect of low consumption and investment which resulted to a decline growth of household as they felt insecure about the capacity to spend and borrow (Australian Government n.d.). GFC has also impacted on the unemployment rate which result shown an increase of number that lead to a decrease in the economic growth (Australian Workers’ Union 2009). The part-time employment has increased which balance to a loss of full time jobs where this also effect on the working hours such as the decrease hours in work (Chesters n.d.). Certain demographic groups have been affected by the job loss. For instance, the generation Y (18-24 years) has been affected (Tanton et al. 2010). However, they remain optimistic and relied heavily on the government benefit (Tanton et al. 2010). Moreover, competition in the banking system has also been affected by the GFC (Australian Super Investment Conference 2010) which resulted on harm towards the smaller banks and non-bank intermediaries as compared to the large banks where it leads to an increase in the cost of funds (The Senate 2011). Thus, this has impact on a greater gap between the major banks and other financial institutions (Australian Super Investment Conference 2010). The collapse of the Lehman Brothers, has led to a loss of confidence towards the banks which caused a decrease on the demand for credit (Australian Super Investment Conference 2010). 4.0 The response of GFC 4.1 United States GFC had seriously impacted the United States (U.S.) as compared to other countries such as Australia where it leads to the collapse of one of the major investment banks, Lehman Brothers. Thus, plans had been made by the U.S. government in response to the impact to prevent the situations to worsen. In comparison to Australia, the financial institutions do not need government intervention to assist them such as injection of capital. Unlike U.S., the government intervene where the central banks has purchased the government debt and the troubled asset which cost US$2.5 trillion in order to raise funds in the financial institutions (Halmarick 2009). This has resulted in the largest liquidity injection done by the government. They tried to inject liquidity into banks by buying share of banks, and purchase of convertible bonds of banks, whereby the government will be paid certain amount interest and the government will be given an option to convert these bonds into equity (Nanto 2009). Furthermore, FED tried to reduce the interest rates by cutting the Fed Funds target from 5.0% in September 2007 to an extremely low 0-0.25% as at December 2008. Later on, in March 2009, Fed started a â€Å"Quantitative Easing† policy by agreeing to buy a $300 billion in Treasury bonds (Halmarick 2009). The main purpose is to lower the interest rates across the yield curve and to provide additional funds to the banks. Moreover, US tried to overcome slowdown by stimulus packages of about $10 trillion for banks and guarantees to depositors, and also enhanced public spending (Dhameja 2010). According to Bloomberg, by February 2009, the total US bailout amounted to $9.7 trillion, sufficient to pay off more than 90 per cent of America’s home mortgage and was about 70 per cent of US GDP (Halmarick 2009). In addition, President Obama signed two packages which are the American Recovery and Reinvestment Act worth $787 billion and 5.5% of GDP. The main features include an estimated $285 billion in tax reduction for individuals and businesses, unemployment benefits, extra spending for food stamps, and also health care subsidies for workers that have been laid off (Halmarick 2009). These packages positively aim to generate at least three to four million job opportunities by the end of 2010. Additionally, US tried their best to prevent more banks from failing. The first case was Fed approves financing loans arrangement for J.P. Morgan  Chase to buy over Bear Sterns in March 2008. The second case was government controlled mortgage giant Freddie Mac received $146 million to ease their situation. Next, AIG borrowed $85 billion from Fed to prevent them from failing (Halmarick 2009). However, Fed couldn’t do much to save Lehman Brothers from failing and thus they went into bankruptcy in 2008. Therefore, US government aim to strengthen the global financial institution mainly to prevent losses of capital flows due to the impact of GFC to the developing and emerging economy by agreed on the increase of funds (Australian Government n.d.). Besides, government also actively plans to purchase equity from the financial institutions to ensure there is a sufficient liquidity which enable them to conduct activities such as investment, issue loan and deposit and much more. GFC has caused a fall of confidence in the financial institutions. Thus, government had decided to guarantee all senior unsecured debt and also the non-interest bearing transaction deposit account mainly to increase the confidence losses in the financial institutions (Australian Government n.d.). 4.2 Australia Australia had prepared by implementing an effective monetary and fiscal policy in response to the economy when one of the biggest investment bank in United States (US), Lehman Brothers collapsed in September 2008. This helps to avoid the economy from slowing down and lessen the impact of Global Financial Crisis (GFC) in Australia as compared to other countries such as US, where government responded on the measurement. In order to strengthen the operation of the financial system, government has increase up to $25 billion of the issue of Commonwealth Government Securities(Britton 2008), more choices of assets provided for Australian Office of Financial Management (AOFM) to invest in, together with a better lending facility of AOFM (Australian Government n.d.). In response to the recommendations of Financial Stability Forum, legislation has been introduced to establish Financial Claims Scheme (Britton 2008)  where the availability of funds is given to the depositors and general insurance policyholders when the financial institutions failed to perform (Australian Government n.d.). Besides, the bank deposits and wholesale funding is guaranteed by the government for a period of 3 years (D’Aloisio 2010). Additionally, the $10.4 billion Economic Security Strategy has been carry on as this helps to strengthen and stabilize the economy (Australian Government n.d.). This aim to provide protection to households and other financial institutions to gain back confidence lost due to GFC (Australia Bureau of Statistics 2010). Besides, First Home Owners Boost has been introduced mainly to assist the housing sector to stimulate activity which benefits the economy (Australian Government n.d.). The competition in the market of housing finance has been supported by the government through the purchase of the Residential Mortgage Backed Securities (RMBS) (Australian Government n.d.). However, a total of $840 million has been taken out by RBA from RBMS under a repurchase agreement mainly to ensure there is sufficient liquidity in the market (Britton 2008). The naked and covered of the short sale securities has been ban for a period of 30 days by the Australian Securities and Investments Commission (ASIC) (Helmes et al. 2009). However, a clarification of the allowable covered shares has been issued by the ASIC in concern of the set requirement (Britton 2008). A draft legislation for the covered of short sales has been released by the government and it is open for the public to comment on till 21 October 2008 (Britton 2008). Government initiated the plan of Nation Building and Jobs Plan which cost around $42 billion which was mainly to support the jobs in the country where it supported an estimated of 90,000 jobs (Sherry 2009). This help to decrease the unemployment rate and then boost the economic growth where it encourages more activities and also to increase consumption in the economy (Sherry 2009). 5.0 Conclusion In conclusion, the global financial crisis (GFC) had brought so much damage not only to U.S. and Australia, but to the entire nations’ financial system globally. Even some of the wealthiest nations saw the collapsed of its financial institutions while some had to undertake an extremely expensive bail-out package. As for U.S. they suffered more severely compared to Australia. This is because the Reserve Bank of Australia has taken measures in advance of the global financial crisis. Thus, they were not as heavily affected as compared to other countries. Therefore, U.S. should learn from Australia by implementing policies ahead of any unexpected crisis to minimize the impact and damage done to their financial system. Evidently, it is better for them to prevent and be prepared rather than solving an issue when the damage has already been done. The policies implemented should include healthy control of the discount rate, reserve requirement and also minimal inflation targeting such as two to three per cent. The right policy implementation will lead to full employment in the country, a healthy level of economic activity and international trades, which will eventually increase the country’s GDP to an optimal and desirable level. 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The Capulet Family in William Shakespeares Romeo and Juliet :: Romeo and Juliet Essays

The Capulet Family in Romeo and Juliet The Capulet family is one of pride and high social standing. It consists of Lord and Lady Capulet, their young daughter Juliet, and their kinsman Tybalt. They have a nurse, as well, who has taken care if Juliet since she was born. They get along quite well, yet, like all families they have their differences. However, one thing that happens frequently when two members of the family disagree on something, is that usually someone gives in to their " superior," regardless if they agree or not. One example is when Romeo shows up at the Capulets' party uninvited and Tybalt wants to throw him out. Lord Capulet objects to this by saying, "He shall be endured...I say he shall...Am I the master here or you?" For a little bit, Tybalt argues, but he very soon backs down and lets Capulet have his way. Perhaps the reason why this happens is because the "inferior" person is somewhat intimidated by the "superior." This intimidation that some of the characters produce on each other shows that there is not a great deal of communication in the family. Throughout Act I, there were several more examples of characters yielding to others and not standing up for what they believe. For instance, when Lady Capulet brought up the idea of Juliet marrying Paris, Juliet just went along with the concept , even though that was possibly not what she wanted. An even more significant instance of such a thing occurring is the fact that Juliet feared to tell her parents that she had fallen in love with Romeo, a Montague. She knew that if she informed them of how she felt, they would get angry and maybe disown her, just because of their hate for all Montagues. That is another of the Capulet family's flaws. They are rather narrow-minded because of their continuing, senseless conflict with the Montagues. Both households are of equal fault in this case, but that only proves that the two families are alike in that way. Even still, if the Capulets believe that they truly are the more dignified, they should have ceased their dispute earlier and prevented their daughter's unhappiness (and eventually death).

Negative Effects of War Essay

In â€Å"How to Tell a True War Story,† Tim O’Brien presents many themes within his story. One major theme is the negative effects of war on a soldier. Many situations arise in the story that bring out the theme to make it easy to understand for the reader. The effects of war can be very harmful to a soldier’s life, and he or she can be scarred forever. When Bob Kiley’s friend, Curt Lemon, dies at the beginning of the story, Kiley takes the time to write Lemon’s sister. He wrote about what a good guy Lemon was and the many adventures that he took. Kiley explained that Lemon was a dare devil and a soldier that loved what he did. Bob Kiley did not have to write to his friend’s sister at all, but he did it out of kindness. He poured his heart out into the letter because he wanted his friend’s sister to understand what a great guy he was. O’Brien’s narrator tells the reader that, â€Å"[h]e says he loved the guy. He says the guy was his best friend in the world. They were like soul mates, he says, like twins or something, they had a whole lot in common† (O’Brien 347). Kiley went into detail about some events, but he wanted this girl to know everything. He sent the letter and he waited for two months for one in return. She never sent Bob Kiley a letter back and he got upset. The negative effects of war made him go into detail about the story and that may have made the sister not write him. When a soldier sends a letter to someone, all they want is one in return. It makes them feel good when they know someone is at home thinking about them too. War can make a soldier feel alone and having someone to write to can make them feel wanted. Kiley felt alone and used when he did not get a letter in return. He wrote the letter out of kindness and all he wanted was a thank you from the girl. If she would have sent Kiley a letter in return he would have felt better about himself. When Curt Lemon died, the story portrays his death three different times. Each time his death is told it is told in different ways. Curt Lemon’s death was caused by a booby-trap buried in the ground. The story portrays him floating into the sunlight through the trees. The negative effects of war can cause soldiers to remember someone’s death in detail. They remember him being blown into pieces as he was killed. Remembering vivid details about someone else’s death can cause disturbing flashbacks in a soldier’s life. The death of Curt Lemon caused Bob Kiley to take out his frustration on a baby water buffalo. When they stopped to rest for the night Kiley takes an unexpected turn and shoots the buffalo in the leg. He continuously tortures the animal, as the others soldiers watch in disbelief. O’Brien’s narrator tells the reader that, â€Å"[t]he whole platoon stood there watching, feeling all kinds of things, but there wasn’t a great deal of pity for the baby water buffalo† (O’Brien 352). The buffalo takes the torture and never reacts. The negative effects of war caused Bob Kiley to do something that no one could ever believe doing. He lost his best friend, so he took his pain out on the water buffalo. Any soldier in their right mind would have enough sense not to kill an animal, but the negative effects of war can change people. Kiley will never be the same because of the things he had to endure during his time of duty. War can change a soldier in many ways. They may go home and never be the same as before they left. Often, soldiers will tell stories, but they will not be entirely true. O’Brien’s narrator tells the reader that, â€Å"[i]n war you lose your sense of the definite, hence your sense of truth itself, and therefore it’s safe to say that in a true war story nothing much is ever very true† (O’Brien 354). The negative effects of war can be very harmful to a soldier’s life.

Ronald Takakis Iron Cages Race and Culture in...

Ronald Takakis Iron Cages: Race and Culture in 19th-Century America After America declared its independence from British rule, the founding fathers faced a conundrum: How to build and maintain a successful republican government that was ultimately dependent upon the passions and character of its people. Their solution was to propose the construction of what historians have called iron cages, which were ideological devices intended to deter the corruption and folly that might consume a free people, and instead promoterational and virtuous American citizens. Ronald Takaki expands upon this concept in his historical analysis, Iron Cages: Race and Culture in 19th-Century America, explaining that these constructs functioned†¦show more content†¦Long after the war for independence had been fought, such literature continued to function as the means by which racial ideologies were reflected, reinforced and reconstructed. Takakis survey of nineteenth-century white prejudice towards those both native and foreign to America reveals how national identit y ultimately emerged out of a national literature. Takaki commences his history post-Revolution with the works of Benjamin Rush and Thomas Jefferson, regarded for their immense influence upon American culture. Although Rush believed that the future population of America would be homogenous, he also anticipated the presence of blacks within it. The Philadelphia doctor rationalized his claim in a 1792 paper, wherein he attributed the skin color of the African race to leprosy. Rush stressed the avoidance of interracial relations due to the infectious nature of the disease, but added that medicine enabled an eventual cure: The Negros skin could thus be restored to its healthy whiteness. Takaki notes the impact of Dr. Rushs paper, stating that, Ever since theseventeenth century, a need to explain the Negros black skin had existed in white America. With Rushs explanation came social acceptance of the unnatural, inferior color and necessary separation of the diseased African race. Like Benjamin Rush, Thomas Jefferson also believed that republicanism could only be achieved amongst a homogenous

The Crucible-Thomas Putnam Essay - 751 Words

Thomas Putnam plays a major role in the Salem witch hunt in Arthur Miller#8217;s The Crucible. Inheriting a handsome amount of property makes Putnam a wealthy person; however, it doesn#8217;t seem to satisfy his ambition. After the town terribly rejected Putnam#8217;s brother-in-law, Bayley, Putnam#8217;s bitterness has increased. Finally his prodigious involvement in the relentless accusations places him in the center of the spot light, making him a salient character in both the play and the indignant period of the American history. Thomas Putnam has a very large part in initiating the Salem witch hunt. He is the first character who blames unnatural causes for the illness among the children. Furthermore, he firmly believes in the†¦show more content†¦Does Putnam simply wants to killed the witches and save the children? No, there is something bigger he is after. Thomas Putnam profits remarkably in the Salem witch hunt . The person who initiates the event receives all the benefit. Is it a coincident? It is not. Thomas Putnam must have a plan. At the beginning of the play, the argument between Putnam, Giles, and Proctor shows contentions between people over land. #8220;The tract is in my bounds, it#8217;s my bounds, Mr. Proctor,#8221; says Putnam(32). #8220;I bought that tract from Goody Nurse#8217;s husband five month ago,#8221; Proctor replies Putnam(32). #8220;He had no right to sell it. It stands clear in my grandfather#8217;s will#8221;, Putnam tries to show evidence(32). Later in the play, Rebecca Nurse, Giles Corey and John Proctor are prosecuted. To whom will the tract go to? Only Mr. Putnam can afford to buy. George Jacobs is hanged because of Ruth. #8220;If Jacobs hangs for a witch he forfeit up his property-that#8217;s law! And there is none but Putnam with the coin to buy so great a piece. This man is killing his neighbor for their land#8221;(96). Putnam is a realistic person. His major plan is to become wealthier and destroy his opposi tions in the witch hunt. In the end, Putnam completes his plan successfully. People like Putnam exists throughout the history of mankind, such as Joseph McCarthy and Adolph Hitler. They profit through abominations toward otherShow MoreRelatedThe Destruction Of Salem By Arthur Miller1558 Words   |  7 PagesArmania Heckenmueller Mrs. Hagerty H English II 2EF 11/23/15 The Destruction of Salem Through Greed and Vengeance in The Crucible During the time The Crucible was set, the community of Salem was awry. It did not have the solid characteristics of what a healthy town should look like. Instead there was no trust between people, everyone was watching out for only themselves, and most of the townspeople were turning their backs on the disastrous deeds of the court. The people of Salem feel like they haveRead MoreThe Crucible Critical Lens Essay866 Words   |  4 PagesDavis 1 Ashley Davis Mrs. Taylor CP English III, Period 7 22 November 2014 The Crucible Critical Lens Essay As Vladimir Lenin once stated, â€Å"A lie told often enough becomes truth.† This quote indicates that if you constantly repeat a lie, eventually people will come to believe it. I definitely agree with Lenin. A lie won’t stay a secret forever. Lenin’s quote remains true and evident in Arthur Miller’s, The Crucible. There are many characters Miller uses to prove this quote true through theRead MoreThe Crucible : The Potential Of Change916 Words   |  4 PagesJoie Lim Johnston English 11H, Period 7 8 October 2015 The Crucible: The Potential of Change Introduction: In The Crucible, Arthur Miller recreates the anxiety and hysteria of the Salem witch-trials from 1692. Although the title, not once is the word â€Å"crucible† spoken in the play. However, the people and events of the Salem witch trials correspond with the definition of a â€Å"crucible†. The Merriam-Webster Dictionary defines â€Å"crucible† three ways: â€Å"A pot in which metals or other substances are heatedRead MoreThe Guilty Characters in Millers The Crucible Essay827 Words   |  4 Pagesthree people depicted in Arthur Millers The Crucible that are most responsible for this and they are, Abigail Williams, Judge Danforth, and Thomas Putnam. Abigail Williams is mostly responsible for the Salem witch trials because she was the first person to start accusing innocent people of witchcraft. Judge Danforth is responsible because he is not concerned about justice, all he cares about is being correct about the witch trials. Lastly Thomas Putnam is guilty of cau sing the witch trials becauseRead MoreThe Crucible Analysis621 Words   |  3 Pages The Crucible takes place in Salem, Massachusetts during the time of the Salem witch trials. In The Crucible, Arthur Miller uses revenge as the main theme throughout the playwright. Revenge is the action of inflicting hurt or harm on someone for an injury or wrong done to someone else. Revenge is shown throughout the characters actions in the play. Witch craft is used to represent revenge. If someone didnt like another, they could accuse that person of witch craft and inflict harm on him orRead MoreEssay On Personal Rivalries In The Crucible924 Words   |  4 Pagesrunning rampant. In The Crucible by Arthur Miller, the residents of Salem are allowing their grudges and personal rivalries to distract themselves from the truth. The witch trials are escalating, more and more people are being accused, and the tensions are high. The Putnams have different motivations and grudges that are driving the accusations. Ann Putnam is using the trials to harm the women she deems responsible for the deaths of her seven children. 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When the witchcraft hysteria first began in Salem village in the w inter of 1692, Proctor became an outspoken opponent of the trials and stated to many that the afflicted girls, who had been accusing many of the villagers of witchcraft, were frauds and liars (Brooks). There were many parallels between John Proctor and his character in The Crucible, including his vocal opposition towards the trialsRead MoreThe Crucible By Arthur Miller1694 Words   |  7 Pagesname is less obvious. In The Crucible, Arthur Miller recreates the anxiety and hysteria of the Salem witch-trials from 1692. Although the title, not once is the word â€Å"crucible† spoken in the play. Merriam-Webster Dictionary defines â€Å"crucible† three ways: â€Å"A pot in which metals or other substances are heated to a very high temperature or melted†, â€Å"a difficult test or challenge†, and â€Å"a place or situation that forces people to change or make difficult decisions† (â€Å"Crucible†). The definitions metaphoricallyRead More The Para llels Between Arthur Millers Life and His Play, The Crucible1486 Words   |  6 Pageshappened many years ago—and write about it effectively. Only one has had the courage and intelligence to do both. Arthur Miller was an American author who wrote plays, essays, and stories and has published works dating from to 1936 through 2004. The Crucible, one of his most famous plays, premiered in New York on January 22, 1953 (InfoTrac). It is a historical-fiction story set in Salem, Massachusetts in 1692. The witch hunt described in this play is similar to the Red Scare, an anti-communist movement

Lord of the Flies - Reflection of Society - 840 Words

In society, people have the ability to become violent no matter the personality of the individual. Brutality is in all animal species. The only difference between humans and the animals is the ability of the human mind to control ones thoughts and actions, however, even this ability can be lost if presented with a situation that becomes so stressful or so outrageous that the mind is no longer in control. This is exactly what happens in the book Lord of the Flies by William Golding. Within this book people will find exactly how brutal a human being can become when the boys are trapped on an island with no other adults with them. This book proves without a doubt that all individuals have the natural capacity for brutality. Jack was†¦show more content†¦Once people reach that point of no return, nothing, not even a friend could help them. This seems to be the belief of Golding. Golding has brought out much or his views on life in this book. Lord of the Flies gives a good view on todays society and how society might react in such a situation. The book also gives insight into human nature and what humans are capable of when there is nothing left but fear and survival. With Golding being part of a great war he definitely understands more than most what people will do from the battlefield. All the rules change while on the battlefield just as when the boys were stranded on the island. Golding seems to be leaving a message for all of mankind to see and perhaps a warning of things toShow MoreRelatedLord Of The Flies Symbolism Analysis768 Words   |  4 Pages The Lord of the Flies is a novel that contains multiple symbols that reflect the actions of human nature. Some of these symbols include Piggy and his glasses, the signal fire, the conch shell, and the Lord of the Flies. Each symbol shows a different flaw or mistake the boys encounter throughout the novel. Piggy is one of the main characters in the novel. 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Golding’s story focuses on a group of British schoolboys who are stranded on an island and ultimately succumb to their innate savage tendencies. Literary analysts often compare components of Lord of the Flies to various aspects in the Christian Bible. For instance, the setting in Lord of the Flies is often linked to the Garden of Eden, and someRead MoreReflections on Society in Literary Works865 Words   |  4 PagesGolding’s Lord of the Flies characters experience dehumanization through isolation from society. While some might believe that Marquez and Golding use the trapped characters’ actions to criticize society, it they are actually doing the opposite. All immoral behavior done by characters in these literary works are done in the absence of society, showing that the authors are actually portraying society as the stabilizing element of our morality, and the structure of our humanization. Without society, forRead MoreThe Lord of the Flies by William Golding1257 Words   |  6 Pages LOTF: Good vs Evil Change is inevitable. In Lord of the Flies, three of the characters represent how the human condition can change. Each character handles situations and conditions differently. Their conflicts challenge their existence and eventually lead to their demise. In Lord of the Flies, during the wage of war between good and evil, the true face of everyone is revealed, whether it be Roger, Simon, or the children as a group. There are a lot of ways that good and evil are representedRead MoreSocietal Breakdown On The Island1720 Words   |  7 PagesSocietal breakdown on the island in ‘Lord of the Flies’ is due to the inherent evil of man 3.8: Develop an informed understanding of literature and/or language using critical texts. Hypothesis: Societal breakdown on the island is due to the inherent evil of man Jason Carvalho ‘Lord of the Flies’ is the name of William Golding’s historically famous novel, yet it is more than just a title. It is a kind of statement, a way of mocking the very existences of humanity. Reading this book I cameRead More Island in Robinson Crusoe, the Coral Island and Lord of the Flies1443 Words   |  6 PagesIsland in Robinson Crusoe, the Coral Island and Lord of the Flies Compare and Contrast the ways in which Robinson Crusoe, the Coral Island and Lord of the Flies present and develop the experience of being marooned on a desert island. Show how the texts reflect the ideas and beliefs of its own author and the period in which it was written. In all three novels a person or a group of people are marooned on a desert/tropical island. All three crash of scupper on or near the islandRead MoreLord Of The Flies By William Golding1022 Words   |  5 PagesIn the novel Lord of the Flies, William Golding emphasizes the essential values of a democracy to the people on the island through Ralph’s democratic leadership style and goals and Jack’s controlling and manipulative. These two leaders of the tribes draw a parallel reflection on the two leaders of World War Two, Franklin D. Roosevelt and Adolf Hitler. Lord of the Flies beings with a plane crash in the middle of the ocean; the boys are left alone on an island without any adults, fending for theirRead MoreSummary : Leviathan 1156 Words   |  5 Pagesmother is nearby, I am more focused and I pay more attention to details. However, when she is not next to me, I tend to be more relaxed and my mind begins to wander. The latter is a clear reflection of the parents-free environment. In a similar manner, adult-free environment was given to the kids in Lord of the Flies when their plane crashed into an island. The island lacked the presence of adults or authority; and, thus, kids became more accustomed to anarchy. Due to this lawless environment, theRead MoreCritical Analysis Of Heart Of Darkness1107 Words   |  5 Pagesnovel written by Joseph Conrad, tells the story of a character named Marlow, who is recalling his journey to Africa down the Congo River to a group of seamen on a boat. Joseph Conrad’s characters are constructed around the ideas that were present in society when the novel was written. Kurtz and Marlow are created to be naive and to allow action to be the truest medium to characterize the cast in Conrad’s novel.   As Marlow poses a inner darkness that is discovered on journey looking for kurtz. As kurtz

Evaluation of China as a business destination Free Essays

string(95) " next step is to get the product certified by the SFDA \(State food and drug administration\)\." Introduction China also known as PRC (People’s Republic of China) is the third largest country in the world. The country stands first with its population estimating to a 1,330,141,295 (1.3 billion) as of July 2010. We will write a custom essay sample on Evaluation of China as a business destination or any similar topic only for you Order Now China is also predicted to consume 29% of the world’s luxury goods by 2015 which precisely signifies the consumers spending ability. China has a high spending middle class even after the financial instability which makes it a prospective business destination. Beijing is the capital of China and Shanghai also known as the financial capital of the country is the largest city in China. Beijing, Shanghai, Guang Zhou, Shen Zhen is China foremost cities for business and commercial activities. Although China is one country by itself, due to the history and differences in culture in every province, this makes every province akin to small little countries that has different needs and wants. For example, there are different policies in certain provinces; also, due to the differences in geographical area that is spreading horizontally throughout the globe and difference in weather, consumers from different provinces have different needs and wants. Thus, any firms that wants to enter int o different provinces in China has to do a thorough research before entering and not taking granted by using the same entry strategies, knowledge and marketing efforts to enter into different provinces in China. Even though, new market entry is likely to boost a company’s revenue, productivity and profit, Market entry without proper analysis will be a costly experience for the company but a hasty decision to not enter may lead to loss of extensive profits and market shares (Hollensen, 2004). However, in our project, we will only be looking into Shanghai as it is the financial capital of the country and has the most robust commercial activities as compared to the rest of the china. Shanghai has been growing exponentially since the past few years and is expected to grow even more (BBC News, 2011). As Takeomega 3 is looking for international market, especially in China, we are here to explore the feasibility and attractiveness of Shanghai market using PEST analysis. Political Factors: China acts like a single unit where the Chinese communist party (CCP) governs all the political powers. The above map shows the different administrative zones of the country. According to Euromonitor International (2005a) there are three areas which threaten the political stability of the country. 1] Differences in the rich and poor areas in China: The tensions are growing between these two areas and also the government has to handle the separatist movements in Tibet, Xinjiang. (Euromonitor International, 2005a) 2] Unstable Pension system: The pension system in the country is on the verge of a breakdown. As of now only 6 out of 31 regional pension funds are solvent. (Euromonitor International, 2005a) 3] International issues with neighboring countries: There are issues with the neighboring countries like Taiwan on the basis of political belongings, and also issues with Hong Kong with pro democracy activists and with Japan on the topic of exploitation of natural resources (Euromonitor International, 2005a). These factors can lead to political instability which can hamper the market entry for our firm. Other factors that can be linked with issues relating to our market entry are issues like corruption in the country and the business entry procedures. Transparency International Corruption Perceptions Index indicates China with a 3.2 index compared to 8.2 of Europe and 3.9 of Asia, corruption index being 1 as highly corrupt and 10 being the lowest. Factors influencing Business procedures: Some of the upcoming business destinations can be middle-east and emerging markets. It is important to consider the time taken to complete business procedures. The business procedures to enter the Chinese market are however a bit problematic. On an average it takes 12 separate procedures and 41 days to start a business compared to 9 procedures and 61 days to start a business in Middle East. Moreover the system is also strict in closing down the business. It approximately takes 2.6 years to close down compared to 1.8 years compared to OECD countries. To enforce a contract, 20 separate procedures and 180 days are required compared to 18 procedures and 213 days in OECD countries (Business monitor international, 2006a).Thus it can be seen, compared to other emerging business destinations China has a monotonous approach for business procedures. A few advantages: When it comes to do business overseas, it is essential to know the global reputation of the country or its market. There are institutions and governing bodies which help international trade. China being a member of the IMF (International monetary Fund), World Bank, Asian development Bank, General Agreements on Trade and tariffs and most importantly WTO (World trade organization) promote orderly and stable foreign exchange markets, maintain free convertibility among the currencies of member nations as well as reduce international barriers to trade and provide liquidity to counteract temporary imbalances in international finances. This can be an advantage for our firm since it makes our target country reliable to carry out business (Jeannet Hennessey, 2004). Weakness of the market for business: In spite of these advantages China has been known for its weak IPR (Intellectual property rights) and has also been blamed by its previous trading partners for inducing price dumping strategies to overcome its competitors (Business monitor international, 2006a).There have been developments to protect IPR since it became a member of the WTO however these laws have not been implemented that efficiently with fines still being imposed (Business monitor international, 2006a). This in turn can be hazardous for the business hence maintaining control on these things is of utmost importance to enjoy profits as well as keep the brand name established. To overcome these negative impacts on the firm and avoid counterfeiting the following steps can be taken: 1] To register the product and the logo in China, doing so will overcome the issue of counterfeiting the product by local manufacturers. 2] The next step is to get the product certified by the SFDA (State food and drug administration). You read "Evaluation of China as a business destination" in category "Essay examples" Economic factors: China is undoubtedly playing as a primary engine of growth considering the role played by United States of America since mid 2003. Despite the financial crisis the global growth in emerging countries remain favorable. With China’s rapid start in 2010 economic growth is likely to slow down because of the partial normalization of the macro policy stance and some property measures. The GDP growth for 2010 as a whole is expected to be around 9.5% and 8.5% for 2011.But the advantage here is that the growth will be less investment driven and more because of external or foreign trade (World Bank group, 2010). The GDP of the Shanghai region individually is $450bn (?225bn). Furthermore the Shanghai region along with the two neighboring provinces contributes to 30% of China’s foreign exports and attracts 25% of all foreign investment into China (Schifferes, 2007).This makes it favorable for a firm to export Shanghai with increasing potential for profit margins. Shanghai has high number of FDI’s rather than foreign loans moreover FDI are less risky compared to any other financing source. The country itself is still the largest receiver of FDI’s in the world (Business monitor international, 2006a). Inflation would remain in limit this year due to nonexistence of price pressures. Inflation is increasing but core inflation remains low (World Bank group, 2010).Active labor force comprises of approximately 737 million and unemployment rate is 3.6 %and is also expected to increase due to internal migration and urbanization (Business monitor international, 2006a). Moreover Shanghai is known for its sophisticated and affluent consumers and highly educated skilled labor force. By 2020, shanghai is expected to expand greater than New York in 1997 which was the richest city in the world (Schifferes, 2007). This is the reason why choosing Shanghai over any other cities in China is preferred. Taxes: China has decreased its import tariffs by 40 % since 1990.China has dual tax regime imposing different for Domestic and foreign firms more importantly the same in Shanghai. Although the state tax rate for foreign companies can be reduced by 15% if the firms are located in special administrative zones (Business monitor international, 2006a). The standard rate of VAT is 17%. This is generally applicable on sale and import of goods. There is a reduced rate of 13% which is applicable for books and certain types of oils. Small sized businesses with a turnover of less than the legally defined limit pay 3% VAT (www.worldwide-tax.com, 2011). Social and cultural factors: The society in China and till a certain extent across the globe has come to a stage of â€Å"mistrust† due to the exaggerate claims in advertisement made by the merchants. Consumers have lost confidence in nutritional products and find it difficult and confusing in believing and judging in one. At the initial stage, merchants advertise to create awareness amongst consumer about the quality of their products. The more advertisement it has, higher will be the sales they would be able to attain. However, too much advertisement brings about a question of quantity Vs quality. As many a times those claims made by the advertisement concluded to be false. Eventually consumers came to a stage where their mindset has changed. They have started to believe that consuming natural food itself is better than consuming processed food supplements. Furthermore natural food gives better results than the fake and over exaggerated food supplements – â€Å"†. This has led the Chinese government to impose strict laws in China especially Beijing and Shanghai in order to deal with the trust level in China’s market. Shanghai being the most crucial city for new businesses it is essential to deal with this matter in a thoughtful way in order to be able to sell your product and achieve brand recognition. Shanghai’s life expectancy has increased to that of the economically developed economies and figuratively is 75.18 and 79.21 for women (shme, 2011). The average age is 25-59 years and is dominated by male population (Euromonitor International, 2005a). As of 2009, the per capita income was $6500 which has increased compared to previous years and is the highest in Asia (Datamonitor, 2010). The average per capita savings deposit among local residents had skyrocketed from 166 yuan in 1978 to 20,909 yuan in 1997 and has been still increasing (shme, 2011). This indicates decline in poverty which means increase in purchasing power of the consumer. This signifies a potential market. Statistics have shown that there is a growing market for health products (supplements) and demand mainly comes from 2 groups of people – white collar consumer who face pressure and work in high risk profile companies and also employees that involve lots of entertaining work and consume very high cholesterol and carbohydrate enriched food like seafood and high protein food like eggs and also animals organs (which is highly popular amongst the Chinese). With development of Shanghai’s economy, consumer now has higher income to pay and care about their health by purchasing these health supplement products and this precisely explained why the increasing growing trend of these products in the country. Increasingly, Chinese consumers are behaving like their counterparts in the developed world. They are more demanding and pragmatic than ever as their horizons expand beyond basic concerns about product features. Also, they are willing to pay for better value and quality and are spending more time researching and are exploring product nuances. Yet McKinsey’s 2010 survey of China’s consumers also found that they are blazing a uniquely Chinese trail. The country obviously offers some of the world’s biggest growth opportunities—but only for consumer product companies that understand and respond to this rapidly evolving marketplace. The floating population which means internal migrated population was recorded at 140 million in 2005. Due to urbanization a lot of population keeps migrating to the major cities like Shanghai and Beijing, which provide cheap labour but puts stress on the city infrastructure and most of the people remaining unemployed (Datamonitor, 2010).Adult literacy rate of Shanghai is 91.6% which signifies knowledgeable customers and more potential target market (Datamonitor, 2010).Although because of the one child policy there have been issues with ageing population. As a result it is expected to increase in forthcoming years and decrease in productive output and target consumers for the future (Datamonitor, 2010). Moreover Shanghai population has one of the highest savings rate in the world where people prefer to save more than invest due to cultural risk. This issue needs to be given a thought and dealt in productive manner since people don’t invest which indicates more liquidity in cash flows. Cultural factors affecting business procedures: Chinese consumers remain brand conscious but, unlike shoppers elsewhere, they focus on value so intensely that brand loyalty is often secondary. Since there are so many brands in Shanghai itself it becomes difficult for a consumer to choose and hence they opt for a product defining high value or comparatively low cost. The needs or interests of their families have greater importance for them than for their counterparts in the developed world. Word of mouth has become a more significant source of product information than it is elsewhere, thanks largely to fast-growing use of the Internet, which Chinese consumers see as a credible information source. Most intriguingly, though, Shanghai’s consumers prioritize purchases across different product categories by trading off among them: the Consumers maximize their buying power by spending more in the categories they care about most and less in others. Also, the trends in the target market keep changing depending on the local circumstances. Chinese have a high context culture hence it is crucial to know the cultural background of the partner (Johansson, 2003). People from Shanghai mix emotions with business hence they value individualism and work towards economic welfare (Chen, 2004). People in Shanghai treat foreigners equally and laws are more stringent than any other parts of China (Chen, 2004). People in China more importantly in Shanghai are influenced by the packaging. Especially colors play an important role for example: red exemplifying happiness. Many companies that have struggled to find a niche in China may therefore now find a market for their products and attract partners. Conversely, companies that have relied on low-cost, low-quality business models may end up on the losing end of trade-off decisions and could require a shift to value Technological Factors: In recent years, American and Europe supplement products have taken a different and more innovative route by developing new design, new function, new way of consuming, new style supplement products. This knowledge has also been transferred to China through its financial capital Shanghai. This better and more advanced technology brings about better purity and quality and enhances the absorption capability in the body to take place. These occur in capsule, tablets and recently into liquid and concentrate products. These supplements are also offered in candy form, biscuit, can, vinegar and Mi Jian- dry preservatives fruits. Products that are targeting at low cholesterol, low fats and carbohydrates market are proven to be the most popular amongst all nutritional products. Products that are offered in herbal type like tea, protein, herbal plants, has the highest sales relatively. Thus the technical knowhow of manufacturing, packaging and other functions is well advanced in Shanghai (China ) and hence it can get difficult for a foreign company to keep up with the competition. Moreover RD spent in China is 2% in 2010 and is aiming to increase it to 2.5% by 2020 (Business week, 2006). Transportation network has improved immensely through the expressways. The length is 74000 km as of 2010. Moreover Shanghai is building the world’s largest container port at an island connecting with a six lane bridge to the city (Schifferes, 2007). This will provide assurance for safe and faster transportation of the products and prove beneficial not only for TakeOmega3 but its competitors as well. Bibliography BBC News. (2011, February 22). China Country Profile. 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