What Are the Beliefs and Values of Buddhism

What are the beliefs and values of Buddhism? Buddhists follow the teachings of Siddhartha Gautama who is known as the Buddha, meaning the enlightened one. Buddhism originated in northern India and is the fourth largest religion of the world. However, Buddhism is more a philosophy or way of life other than a religion because unlike so many other religious traditions, Buddhism is founded on the teaching of a human being and not a god. Philosophy means love of wisdom and the Buddhist’s believe in leading a moral life, being mindful and aware of thoughts and actions and developing wisdom and understanding.Buddha Siddhartha Gautama was a warrior prince who founded Buddhism and lived from 566 to 483 BC [1]. He was born in Lumbini, in the Himalayas and lived in Northern India. Siddhartha Gautama was a prince of a wealthy, royal family, he was aware of his luxurious life as a prince and was tired of it. He wanted to discover the truth about life and spent many years in meditation, sit ting underneath a Bodhi tree in order to discover a way to end suffering for everyone and to release himself from the material values of life.After many years under the Bodhi tree he came to an epiphany and become the â€Å"Buddha†. The night he became enlightened was divided into four periods in which he learnt something new each time. Firstly, he gained understanding of all the past, and of what had led him to the point of seeking enlightenment. He then understood the way in which all living things came into this world and pass away. After this, he understood how all the negative feelings and cravings that make people cling to life, bring more suffering and that he had overcome these cravings.Then, at dawn he gained full enlightenment and experienced the peace of Nirvana, which is the point where the three poisons, greed, hatred and ignorance disappear and a sense of happiness and calm is achieved. [2]After he was enlightenment at 35 years old, he travelled around India tea ching the wise knowledge he had achieved. Siddhartha Gautama spent most of his life teaching in the cities of the Ganges plain and was the first person of his time to discover the true cause of suffering in the world and show people real compassion. Buddha is a itle, which means â€Å"the one who is enlightened† or â€Å"one who has woken up to the truth†. What makes a person a Buddha is that a Buddha discovers and teaches the path to enlightenment. According to Buddhist tradition, there have been and will be other Buddha’s. Siddhartha Gautama inspired people by what he did and what he taught, so that they followed him and tried to put his teachings into practice. Beliefs and Values of Buddhism Buddhists believe that everyone has the potential to become enlightened and that, by practising their religion, they will develop wisdom and happiness.Four Noble Truths In Siddhartha Gautama’s first sermon in the Deer Park in Varanasi, the holiest city of ancient I ndia, he spoke about the Four Noble truths and the Eightfold Path. The four noble truths are the most basic expression of the Buddha's teaching. In the Four Noble Truths Buddha sets out the problem of life, the cause of that problem, that the problem can be overcome and the way to achieve it. The First Truth is that all life involves suffering. The first truth is Dukkha, which is the pali word for suffering. 3] Dukkha is deeper than physical pain, it refers to the suffering that occurs on a number of levels. There is the suffering that comes with feeling sick, old age, death and injuries, which are inevitable as we are fragile human beings. [4] Then there is the frustration and the feeling of being discontent with life, that our life is not what we want or expect it to be and nothing is ever good enough. The second truth is that the origin of suffering is craving and attachment.The Buddha discovered that the direct causes of suffering are desire, craving, and ignorance and this is t he cause of suffering. The belief that suffering is caused by craving is not the natural need for food or enjoyment from experiences in our lives but the attempt to hold on to the things we enjoy and never want to let them go and try to stop them from changing. In the second truth, it is said that the origin of suffering is attachment to desire and craving, greediness causes a person to never be happy or content. The third noble truth is Nirodha, which is the end of suffering.The Buddha taught that the only way to end suffering was to stop grasping at life and craving, although a person who is unhappy will want to try and hold on to the things which bring enjoyment and happiness. So, the only way to end craving is to discover inner happiness and satisfaction and learn to appreciate life just the way it is. If Buddhists can reduce craving. Tanha, it is because they enjoy life at the moment and they do not need to crave. Once all craving is diminished, a person reaches Nirvana, which is when a person is freed from craving.This third truth explains how to overcome suffering and achieve happiness. It explains that life would be happy and blissful if one learns to live each day at a time, never dwelling on the past or thinking too much about the future. The fourth truth, is the final truth. According to the fourth truth, to end suffering and reach nirvana, an individual must follow the Eight-fold Path. The Eightfold Path focuses on the mind and being aware of thoughts and actions. By being compassionate and kind to others and developing wisdom, one would have a better understanding of the Four Noble Truths.The fourth truth is â€Å"The Middle Way†, Magga and is set out in eight steps. These steps are eight features of a Buddhists life. By following the Eightfold Path, a person reduces the amount of suffering they have by living a life of virtue. People who follow the Eightfold Path usually have a positive outlook on other people, animals and the world. [5] T he Eightfold Path The Eightfold Path aims to improve wisdom by practising right view and intention, ethical conduct, by practising right speech, action and livelihood and mental capabilities, by practising right effort, mindfulness and concentration.There are three aspects to the Buddhist way of life. Wisdom (prajna), Morality (sila) and Mental training (Samadhi). The Noble Eightfold Path is the way of wisdom. Number 1 is Right View, this is when a Buddhist seeks to follow the teachings of Buddha and deepen his or her understanding on life. Number 2 is Right Intention; it is the decision to follow the Buddhist path. Every action a person makes comes from a thought and this right intention is the positive thought a person needs to make in order to progress. All that we are is the result of what we have thought. The mind is everything. What we think we become. † Buddha. Number 3 is Right Speech. Right Speech is the principle of always expressing oneself in a way that enhances th e quality of other peoples lives and does no harm. It means to not tell lies, refrain from lies and deceit, malicious language, angry or offensive language and gossip. One should always tell the truth, speak with warm gentleness and refrain from speaking when they have nothing important to say.Number 4 is Right Action and it is to follow the fine general guidelines for life which are, 1, not to destroy life, 2, not to steal, 3, not to misuse sex or overindulge the senses, 4, not to lie, 5, not to drink alcohol or take drugs which can stop one from thinking clearly. Right Livelihood means that a person following the Buddhist path should refrain from employment that goes against Buddhist principles. Right Effort is to make a conscious effort to take away all negative, evil thoughts and replace them with good, positive ones.This step recognises that a Buddhist should be aware of this and make an effort to shape the way in which he or she thinks. Right Mindfulness is a state of heighten ed consciousness which a person has the mental ability to see the world around them clearly and with no delusion. Part of the mental training that Buddhists do aims at helping them become more aware of themselves and the world around them. People cannot control or develop themselves if they are unaware of how they feel or why they respond to life the way they do or they cannot help others if they are lost in a world of their own.Buddhists practise meditation to help them be aware of this. Right concentration is the belief that through meditation the mind is enable to become calm, clear, develop loving kindness and gain insight into the truths of life. The goal of this is to reach nirvana but regular meditation is a very important part of the life of every practising Buddhist. The Buddha taught that everything we do, think and say has a consequence or result. Kind actions have positive results while unkindness results in unhappiness. Buddhists believe in karma, which is the idea that actions have consequences.It is believed that karma is the result or consequence from a previous action, this is the way Buddhists believe that we influence the process of change and we shape the future by out actions of today. Buddhists believe in rebirth, which is the idea that creatures are constantly being born, growing old, dying and being born again. This is known as samsara and for Buddhists; rebirth is a constant process of change. What a person will be in another life develops out of what the person was before. Buddhists value compassion for others and causing them no harm above everything else.The Buddha taught that to reach enlightenment, one must develop two qualities, wisdom and compassion. Being kind, loving and compassionate to humans and animals are important values in Buddhism. Buddhists aim to live kindly and wisely and follow the teachings of the great spiritual leader Siddhartha Gautama, Buddha. Buddhists beliefs are based on the idea that all life involves suff ering but by following the Four Noble Truths and the Eightfold Path, people can free themselves from suffering and move towards enlightenment.Buddhists values kindness, compassion and wisdom and believe that every action has a consequence which is karma, therefore always try to have a loving heart towards living beings and the environment and avoid causing harm. ———————– [1] Buddhism, A new approach, Steve Clarke and Mel Thompson, page 6 [2] Buddhism, A new approach, Steve Clarke and Mel Thompson, page 12 [3] Early Buddhist Discourses, Edited and Translated by John J. Holder [4] Buddhism, A new approach, Steve Clarke and Mel Thompson, page 22 [5] We are Buddhists, My Religion and Me, Philip Blake, page 13

Chief Seattle’s 1854 Oration †Was it true? Essay

Chief Seattle, leader of the Duwamish tribe, was author of the famous speech to Washington Governor Stevens upon his arrival to Seattle in 1854. However, many doubt Chief Seattle’s speech to have taken place. There is little credible evidence available to back up the existence of the speech with the exception of a newspaper article written by a Doctor Henry A. Smith. The article, titled â€Å"Chief Seattle’s Speech,† was published in the â€Å"Seattle Sunday Star† on October 27th, 1887. If Doctor Smith was witness to Chief Seattle’s epic speech, he was the sole translator. How are we to know that translation faults and liberations were not made by Doctor Smith? The Duwamish language was not a written language, having no alphabet, thus no official record or writing could have been made. For these reasons, it is highly probable Chief Seattle’s Oration of 1854 never existed. The first and only published account of Chief Seattle’s Oration was written in the â€Å"Seattle Sunday Star† on October 27th, 1887. The author of the article, Doctor Henry Smith, was said to have been a witness at the speech and served as a translator for Chief Seattle; however, no official document of this account exists in any historical archive. Chief Seattle’s speech has been widely cited in numerous books and documents, but every citation leads back to Doctor Smith’s article. Therefore, the only proof available that this speech ever occurred is the newspaper article dating back to 1887 from this one source. If we are to give the benefit of the doubt to Doctor Henry Smith as having been witness a to this speech, who is to say the translation was  correct? For all we know â€Å"Doctor† Henry A. Smith made up every word of the speech, nobody would know. Chief Seattle was known to have been illiterate, neither knowing how to read, write or speak English (McCarthy par. 12). His speech was presented in nice paragraph form, almost as if Chief Seattle was reading the address off a piece of paper, even though Chief Seattle could not read. The Duwamish language had no alphabet, it could not be written, it was only spoken. There is no possible way Chief Seattle could have had anything to  read from or look at while giving his speech to Governor Stevens. Due to these facts, no official record of the speech could exist. Yes, Doctor Smith could have written a near-perfect translation, but there is no evidence to suggest this. An account of the speech by the Duwamish tribe, or a copy of the speech in Duwamish, does not exist for anyone to refer to. The man known as Chief Seattle existed, the Duwamish tribe existed, Doctor Smith existed, these are known FACTS. However, there is only but one written account by a Doctor Henry Smith that this Oration took place, and only one translator was said to have been at Chief Seattle’s Oration and that one man was a Doctor Henry A. Smith. The Duwamish tribe had no written language for an official copy of this speech to have taken place, and there is no reason for anyone to believe that Doctor Smith took an exact translation with no liberations added. For these reasons, Chief Seattle’s Oration of 1854 never existed.

Easy Scholarships for International Students

Easy Scholarships for International StudentsOn this post we will do our best to find some great opportunities for Easy Scholarships for International Students that they can utilize. We will continue to add to this page, so be sure to check it out again. The United States is one of the prime destinations for students who are looking to benefit from a top notch and widely recognized international education. Being a student in USA, you are limited to very few scholarship options. To help you, we have collected information from several resources to come up with a list of Easy Scholarships 2017 for students in the USA as well as few scholarship opportunities granted by US government and institutions.Easy Scholarships for International Students – By the GovernmentForeign Fulbright Student Program The Fulbright Foreign Student Program enables graduate students, young professionals and artists from abroad to study and conduct research in the United States. The Fulbright Foreign Student Program operates in more than 155 countries worldwide. Approximately 4,000 foreign students receive Fulbright scholarships each year. Humphrey Fellowship Program The Humphrey Fellowship Program is for experienced professionals interested in strengthening their leadership skills through a mutual exchange of knowledge and understanding about issues of common concern in the U.S. and Fellows’ home countries. As a non-degree program, the Fellowship offers valuable opportunities for professional development through selected university courses, attending conferences, networking, and practical work experiences.Easy Scholarships for International Students by US Colleges and Universities American University Scholarships American University (AU) awards a limited number of generous partial merit scholarships. American University’s merit awards for international students are partial, not full, scholarships. They are highly competitive and based on a combination of outstanding academic achievement, excellent communication skills in English, leadership, volunteerism, and community service. AU Emerging Global Leader Scholarship Program The AU EGL scholarship covers all billable AU expenses (full tuition, room and board) for one international student who will need a visa (preferably an F-1 or J-1 student visa) to study in the United States. The scholarship does not cover non-billable expenses such as mandatory health insurance, books, airline tickets and miscellaneous expenses (approximately U.S.$4,000 per year). Amherst College Scholarships The award is sometimes called an â€Å"aid package† because it may include both self-help (employment) and gift aid (scholarships and grants). Students with lower financial need will be offered self-help. Students with greater need will be offered a combination of self-help and gift aid. Amherst College has replace all initially packaged, need based student loans with grant assistance and also offers $2,000 in an employment opportunity. Come back soon as we will continue to add to this page†¦ If you need help writing an Essay, feel free to contact us and check out our 6000+ free resources

God's Existence and Essence Philosophical Theory Essay

God's Existence and Essence Philosophical Theory - Essay Example It was during this time that Aristotle’s teachings were common. He used these teachings in his own theological work although Aristotle’s teachings were really at the neck of the Christians during his reign. The intent of this paper is to discuss issues that reveal through Thomas Aquinas’ way of thinking on the existence of God. Ideas According to Thomas Aquinas came up with five ways that prove the existence of God. Then, in his first away he observed that some of the things found on earth are in constant motion. It is from his point of view that anything that is moving is likely to get started by another item, which was also in motion (Aquinas, 2006). The other item in motion was also exposed to motion by another moving item then the process continues in the same manner. The series of moving objects cannot go back to infinity to indentifying the first mover. It is true that there was a first mover of the objects that are in motion though the mover is unknown. Th is gives an impression that there is a mover who does not move. In this context, the unmoved mover is God. In the second way, he states that everything has a cause and nothing can cause be a cause of itself. In this context, the causes go back to infinity since all causes depend on the past cause and the eventual cause depended on the previous cause leading to an infinitive cause. This means that the first cause is unidentified (Aquinas, 2006). The absentee of the first cause cannot end with our scrutiny. Therefore, there must be a first cause of all these events, in which all people refer to as God. The third way to identify that there are things in nature that we observe to be possible and others are impossible as they come to exist and pass away from existence. In this context, nothing that could not exist at one point can exist. It requires that, first something exists before it can find itself existing at another moment (Aquinas, 2006). Form this statement, if there was nothing that existed in the first place, then there could be nothing existing at this time in the world. Since an effect has its cause and the subsequent cause goes to infinitive without indentifying the cause it is possible that something existed first to cause the other to exist. The unidentified cause of events in this context is the Almighty God. It is true that God existed first then caused other things on earth to exist. The fourth states that the world has characteristics that vary in degree. Some of the characteristics are more or less true, good, noble and many more examples. The grading of these characteristics is done in relation to maximum. This indicates that there should be something truest, noblest and best. According to Aristotle, there are some things, which are supreme in truth. In his view, something causes supreme truth in these characteristics and any perfection that we get in every beings of the world. He refers to this supreme cause as God. Aquinas observes nonintell igent and inanimate objects in nature that act in the direction of achieving the best probable purpose although the objects themselves would lack awareness of doing so (Aquinas, 2006). It is possible that the objects achieve their purpose though an organized a plan. The objects that are nonitelignt

Cuts the Word Peace Essay Example | Topics and Well Written Essays - 1000 words

Cuts the Word Peace - Essay Example This essay gives various definitions about terrorism and traces back its origin. Further, it seeks to explain different types and forms of terrorism and its effects to the society, environment, and government. Terrorism bears itself the words destruction and violence. To some, it means death and hell. Probably, all over the world, this word has gone every corner of the society. Indeed, terrorism can be found anywhere, as long as there is life. Different walks of life especially the children, probably if asked, as to what they understand about it would answer, â€Å"terrorism is what the ‘Justice League’ (super hero characters) combating against.† Or, other school children might say, â€Å"Oh! It’s something I play with in the computer; don’t you play counter strike and plants versus zombies?† The dangerous influence brought about by terrorism has entered even into the young little hearts. It seems like everyone knows it, even a five year old c hild. Since the beginning of the recorded history, terrorism has been evolving with its meaning and image. As technology grows, there are many kinds of terrorism emerging in like a root of plant that enormously increases in length. Perhaps, it would continue to grow more until it reaches the depth of limits. The term terrorism comes from the root word ‘terror,’ which means overmastering fear (â€Å"Terror†). But if somebody would ask who created fear? ... Thus, terrorism was used to resist occupation. All countries upon the face of the earth have witnessed and even some had participated in the act of terrorism like invasion and war. The September 11, 2001 attack in the US World Trade Center is one work of terrorism. The terrorists behind this terrible thing intimidated the government and the society. Political leaders, analysts, and even the students of Political Science discipline know that this is a game played by a single or group of persons aiming to overturn the government and destroy its very foundation--the common people. Hence, here terrorism is defined as â€Å"the destroyer.† A boy playing counter-strike enjoys the thrill that the game creates. He might say, â€Å"This is good, I like the feeling of becoming a terrorist.† In addition, terrorism brings ‘horror’ in the minds of the ones who are fond of playing unusual games. It is like â€Å"putting the horror in the minds of the audience, and not n ecessarily on the screen† (Garrison 12). In addition, fear, horror, and terror are somewhat synonymous to the term terrorism. In an author’s point of view, where they usually define terrorism with concise examples, illustrations and provide the reader’s with a scene ‘like horror’. They used to claim that this term is a political act. Some described this word â€Å"as both tactic and strategy, a crime and a holy duty; a justified reaction to oppression and an inexcusable abomination† (â€Å"What Is Terrorism†). In addition, the FBI used to view the term as the unlawful use of force to further political or social objectives through violence. However, nowadays, terrorism has been into many forms--either small or great. In fact, it has reached the surface of cyberspace. The

Analyze Thomas More's Utopia in terms of his purposes and Essay

Analyze Thomas More's Utopia in terms of his purposes and characteristics he assigns to the state of Utopia What does he have to - Essay Example Hythloday talks about Utopia’s history and geography and tells that Utopia was once Isthmus before General Utopus conquered it. Hythloday puts forth a very civilized image of the Utopian society. He says that Utopians are rational in their thinking and dealing with one another. Property is communal. People of utopia are highly productive and do not run after money or gold. They value human life and etiquettes more than power and money. Class distinction is non existent in Utopia and so is the poverty. People are tolerant in religious matters and crime and offence is negligible. The society is better than any society in Europe. Finally, (More) says that he would appreciate it if few of the Utopian policies were inculcated in the European system, though he sees little to no chance of it in reality. Works Cited: More, Thomas. Utopia. UK: Bibliolis Books Ltd, 2010. Print.

The Rising Cost of Benefits in America Essay Example | Topics and Well Written Essays - 1250 words

The Rising Cost of Benefits in America - Essay Example Historical View Although the costs of healthcare have consistently risen over the last twenty years, the recent increases pale in comparison to tremendous spikes during the 1980s. According to Weatherly (2004), â€Å"[p]er capita health care spending increased by 156% from 1980 to 1990, while spending from 1990 to 2000 increased by less than half that amount† (p. 2). It seems strategies have changed today, from the 1980s, when employers absorbed a vast majority of cost increases. The recession of 1991 set employers back, yet health maintenance organizations (HMOs) had a stronger presence, providing economic relief to a certain extent. During that period, HMOs are reported as being a major factor in the decelerated rising costs. Today, employers are faced with a once more weakened economy and steep costs associated with providing benefits. The present difference is the extreme competition within many industries, which makes it hard for organizations to pass costs onto their cus tomers. Consequently, the employee responsibility is increasing, causing them to absorb more of the cost, reducing their overall income (Weatherly, 2004). ... Major consulting groups, the mass media, and healthcare experts have expressed similar research findings; according to Weatherly (2004), â€Å"health care costs are a critical or significant concern to the overwhelming majority of CEOs, Chief Human Resource Officers (CHROs) and other business leaders† (p. 2). Weatherly (2004) reports on surveys conducted among HR leaders and healthcare experts throughout the country, which convey a single ideology—employees and employers, when working together, can reduce the cost of healthcare. Specifically, â€Å"depending on the specific health care specialty area, between 83% and 96% of employers believe that employer and consumer decisions can have a significant or moderate impact on cost† (Weatherly, 2004, p. 2). Healthcare benefits have been the topic of heated discussion in recent months. Many Americans have voiced concern over the dire situation that the country is currently facing. Weatherly (2004) estimates organizatio ns spend $300 billion each year on providing health insurance for current employees, their dependents, and retired employees. Until 2011, a majority of employers did little to reduce benefit plan coverage and counteract the rising costs. As of 2004, plans offered by employers were relatively stable. Innovative benefit strategies and revamps of overall design were rare to non-existent (Weatherly, 2004). Innovative Strategies Recent reports by HR leaders to assist in offsetting the rapid increase in costs include premium cost shifting from employers to employees, raised deductibles, prescription programs (generic and mail-order), and increased cost-sharing with patients. As mentioned, healthcare costs are expected to climb another 8.9 percent in 2011 and experts expect annual increases into the near future

MID TERM Essay Example | Topics and Well Written Essays - 750 words

MID TERM - Essay Example Pick 5. Fill in spaces i to v, using short answers. Name the source; then, identify the problem(s) and the recommended (or inferred) solution. i ii iii iv v In a According to a study done by New Jersey by Dr. John Lamberth of Temple University in 1994, while African American drivers and Caucasian drivers committed roughly the same percentage of traffic violations, a startling statistic of 73.25 of the drivers stopped were African American drivers, while only 13.5% were of a different race. In 1993 a Maryland lawsuit named the police department as a defendant against Robert Wilkins, a Harvard Law student who felt that when the police stopped he and his family, searched them, and brought in drug sniffing dogs that it had been done due to his race. His point was proven â€Å"When a State Police memo surfaced during discovery instructing troopers to look for drug couriers who were described as "predominantly black males and black females,". (Harris) The use of racial profiling has created an atmosphere of hostility towards law enforcement within the African American community. Security becomes less stable when it has been made clear that o ne can do nothing other than wear a color skin in order to be subject to interruption of daily responsibilities. The issue extends to the statistics regarding length of sentences, incarcerations, leaving â€Å"In 1995, about one in three black men between the ages of 20 and 29 were under the control of the criminal justice system--either in prison or jail, on probation, or on parole.† (Harris) Gathering statistics on traffic stops is one way bring about awareness to law enforcement officials. Traffic stops can serve as a microcosm of the legal system. As well, a more uniform system of incarceration would help to lead the way in reducing the inequality of sentencing. Social reformation is needed to undermine the criminal stereotyping of African

Critical Evaluation of Supply Chain Design, Management and Resource Essay

Critical Evaluation of Supply Chain Design, Management and Resource Planning at Kraft Foods - Essay Example The company was founded in 1923. Previously, this company had focused on the industry of ice creams in North America and expanded the organisation to enter the dairy market. Kraft Foods basically produces various delicious foods according to the demand and the mood of the consumers and the company also promises a superior quality of the produced food. Kraft Foods has recently took over Cadbury and the company has an objective to spread its businesses all over the world. Kraft Foods is one of the most well known company which deals in branded beverages and foods. It is the largest food manufacturing organisation in the United States, and the second largest organisation in the world within the food manufacturing industry (Kraft Foods, 2011). In the study the major objective would be to highlight and to critically evaluate the various operational functions of Kraft Foods, and their importance in accruing a better competitive advantage. The study also involves the Enterprise Information System (EIS) and its critical evaluation to analyse the knowledge management system of the company. The paper would also include recommendations to support the argument along with conclusion (Kraft Foods, 2011). Discussion Critical Evaluation of the Organisation’s Operational Management Structures and Systems in Relation to the Theoretical Principles, Concepts, Models/Framework Kraft Foods ensures a good and effective operational segment within the organisation. The company has focused on the quality, the design, and the effectiveness of the products produced by the organisation. Alike every other company, Kraft Foods also has certain operational functions, which help the company to gain a growth in the market as well as help to achieve a competitive advantage. The various operational areas involve product and service design, product quality, capacity planning, inventory control, resource planning and supply chain management (Kraft Foods, 2011). Product and Service Design Pro duct and service design are few of the most important areas in operational activities of a company. Product and service, these are the two important factors which link an organisation to its customers. Designing a product is the process of generating new ideas to create a new product and it depends upon the needs and the demands of the customers. Product design involves certain steps, such as, design brief, specification of the design, designing the concept, testing, designing the detail, further testing, manufacturing and sales. Each and every organisation generally follows these steps. Similar to product design, service design is also an important factor in organisational operations. Service design is the process of innovation of a new product or improving the existing product for making them more usable for the customers. The major goal of the service oriented companies is to design their service properly before delivering it to the customers, and it is also important to provide after sale service to the consumers (Moritz, 2005). Kraft Foods also ensures a good product and servi

The Cold War (US History) Assignment Example | Topics and Well Written Essays - 250 words

The Cold War (US History) - Assignment Example Therefore, U.S involvement in the Korean War was an indirect message to the Soviets that America would not allow the spread of communism in around the world. (2) TRUMAN-When he left office on January 20, 1953, Harry Trumans popularity rating stood at just 22%. In the decades since his presidency he has risen to between 6-8 in most historians rankings. What was it about his presidency that caused this revaluation of him? President Harry S. Truman’s is more popular today because he is credited dropping two atomic bombs in Japan that ended World War II. Truman’s strong support of the Marshall plan for rebuilding Europe, the creation of the United Nations, the â€Å"containment† of communism, the founding of the North Atlantic Treaty Organization (NATO and the creation of the State of Israel also helped his popularity. (3) NATIONAL SECURITY-Was there any way to insure national security against the communist threat than the methods used during the late 1940s and 1950s (sometimes called, collectively, "McCarthyism")? Explain, With the benefit of hindsight, the ‘containment’ policy of the U.S was the best option to confronting the spread of communism. The eventual success of American cold war policy supports this assertion. Although, it is possible the U.S could have achieved success with more diplomatic overtures towards communist regimes like the Soviet Union and China. There is little proof that this method would have been more effective however. McPhee I. (2008). Harry Trumans First Term: The Rising Popularity of One of Americas Great President. Retrieved from http://americanhistory.suite101.com/article.cfm/harry_trumans_first_term#ixzz0DjFR0hJc&B The National Archives. Teaching With Documents: The United States Enters the Korean Conflict. [Online]. The U.S. National Archives and Records Administration, MD 20740-6001. Retrieved from

History Assignment Example | Topics and Well Written Essays - 250 words - 7

History - Assignment Example A. Boxer rebellion is the outcome of a rebellious action from a group called ‘Boxers’ which was a Righteous and harmonist group in china. The main aim of this group was to get rid of all the foreign influence present in china and retain their own cultural heritage. During 1899, this group was battling against Christian foes in which many foreign officials got killed. This group was the reason for weakening the power of chin dynasty and also influenced the republic revolution which made china a republic nation. 4 . Lin Zexu -Lin Zexu was the scholar and official of high moral conduct in the Qing dynasty of china. He was famous for his ardent fight against the opium trade to protect his people from destruction. 5. Pu Yi – the Last Emperor of China – Pu Yi was the youngest Chinese emperor who was given the throne by the empress Dowager cixi in 1908.He was a cruel emperor and often tortured his servants for minor offences and was dethroned during the Chinese revolution. 6. Constitution of 1890 in Japan – The Japanese leaders in 1890 formed a constitution called â€Å"meji constitution† to impress the westerners of their power and strength. In this constitution the supreme power was with the emperor and other had minor rights to vote. 7. Treaty of Shimonoseki – This treaty is also known as Treaty of Maguan and was signed on April 17, 1895 between Japanese Empire and Qing Dynasty of China. According to this treaty the China mainly acknowledged the independence of Korea and renounced any belonging to

Internship in an Investment Bank Essay Example for Free

Internship in an Investment Bank Essay Internship is a system of on-the-job training for white-collar jobs. It is a work related learning experience for individuals who wish to develop hands on work experience in a certain occupational field. Most internship is temporary assignments. As such my intern too was temporary for a period of one month. My association with Goldman Sachs was during my semester vacation. To me internship is to combine theory with practical work experience. As such my intern period was of great help in that sense. Generally the objectives of internships are: * Develop skills in the application of theory to practical work situation. * Aptitude test for a particular career. * Develop and pursue business ethics. * Increase on the sense of responsibility. * Opportunity to understand informal organizational interrelationships. * Enhance employment opportunities * Develop skills and techniques directly applicable to their careers. * Provides inside exposure to the structure, operations and decision process within the organization without a commitment to a permanent employer. Some of the obvious advantages an internship offers include strengthening written and oral skills, helping to make contacts to gain future employment, to enhance and strengthen the intern’s resume. Gain an increased awareness of skills, attributes, personal qualities and values. Guides a student to find out what it is to like to work in a business environment. However duties which aren’t structured either not enough to do or random office work or nothing to do with the supposed internship may result in just a waste of time and valuable resources. Sometimes the intern may not have enough time to learn the nuances of the industry and no proper guide or a mentor to guide the individual through the process. It may also result as a burden financially and mentally. About Goldman Sachs History 1869–1930 Goldman Sachs was founded in New York in 1869 by the German-born Marcus Goldman. The company made a name for itself pioneering the use of commercial paper for entrepreneurs and was invited to join the New York Stock Exchange (NYSE) in 1896. In the early 20th century, On December 4, 1928, it launched the Goldman Sachs Trading Corp. a closed-end fund. 1930–1980 In 1930, Sidney Weinberg assumed the role of senior partner and shifted Goldmans focus away from trading and towards investment banking. It was Weinbergs actions that helped to restore some of Goldmans tarnished reputation. On the back of Weinberg, Goldman was lead advisor on the Ford Motor Companys IPO in 1956, which at the time was a major coup on Wall Street. Under Weinbergs reign the firm also started an investment research division and a municipal bond department. It also was at this time that the firm became an early innovator in risk arbitrage. 1980–1999 On November 16, 1981, the firm made a move by acquiring J. Aron Company, a commodities trading firm which merged with the Fixed Income division to become known as Fixed Income, Currencies, and Commodities. J. Aron was a player in the coffee and gold markets, and the current CEO of Goldman, Lloyd Blankfein, joined the firm as a result of this merger. In 1986, the firm formed Goldman Sachs Asset Management, which manages the majority of its mutual funds and hedge funds today. Since 1999 One of the largest events in the firms history was its own IPO in 1999. The decision to go public was one that the partners debated for decades. In the end, Goldman decided to offer a small portion of the company to the public, with some 48% still held by the partnership pool 22% of the company was held by non-partner employees, and 18% was held by retired Goldman partners. Goldman Sachs Overview The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients. Goldman Sachs was founded in 1869 and is headquartered at 200 West Street in the Lower Manhattan area of New York City, with additional offices in international financial centers. The firm provides mergers and acquisitions advice, underwriting services, asset management, and prime brokerage to its clients, which include corporations, governments and individuals. The firm also engages in market making and private equity deals, and is a primary dealer in the United States Treasury security market. It is recognized as one of the most prestigious investment banks in the world. As of 2009, Goldman Sachs employed 31,701 people worldwide.Goldman Sachs is divided into three businesses units: * Investment Banking * Trading and Principal Investments * Asset Management and Securities Services Investment banking Investment banking is divided into two divisions and includes Financial Advisory (mergers and acquisitions, investitures, corporate defense activities, restructuring and spin-offs) and Underwriting (public offerings and private placements of equity, equity-related and debt instruments). Goldman Sachs is one of the leading MA advisory firms, often topping the league tables in terms of transaction size. The firm gained a reputation as a white knight in the mergers and acquisitions sector by advising clients on how to avoid hostile takeovers, moves generally viewed as unfriendly to shareholders of targeted companies. Goldman Sachs, for a long time during the 1980s, was the only major investment bank with a strict policy against helping to initiate a hostile takeover, which increased the firms reputation immensely among sitting management teams at the time. The investment banking segment accounts for around 17 percent of Goldman Sachs revenues. The firm has been involved in brokering dea ls to privatize major highways by selling them to foreign investors, in addition to advising state and local governments – including Indiana, Texas, and Chicago – on privatization projects. Trading and principal investments Trading and Principal Investments is the largest of the three segments, and is the companys profit center. The segment is divided into four divisions and includes: * Fixed Income The trading of interest rate and credit products, mortgage-backed securities, insurance-linked securities and structured and derivative products * Currency and Commodities The trading of currencies and commodities * Equities The trading of equities, equity derivatives, structured products, options, and futures contracts * Principal Investments merchant banking investments and funds This segment consists of the revenues and profit gained from the Banks trading activities, both on behalf of its clients known as flow trading and for its own account known as proprietary trading. Most trading done by Goldman is not speculative, but rather an attempt to profit from bid-ask spreads in the process of acting as a market maker. On average, around 68 percent of Goldmans revenues and profits are derived from trading . Asset Management and Securities Services As the name suggests, the firms Asset Management and Securities Services segment is divided into two components: Asset Management and Securities Services. The Asset Management division provides investment advisory and financial planning services and offers investment products (primarily through separately managed accounts and commingled vehicles) across all major asset classes to a diverse group of institutions and individuals worldwide. The unit primarily generates revenues in the form of management and incentive fees. The Securities Services division provides clearing, financing, custody, securities lending, and reporting services to institutional clients, including hedge funds, mutual funds, and pension funds. The division generates revenues primarily in the form of interest rate spreads or fees. About Operations Division Operations is at the core of Goldman Sachs. For every trade agreed, every new product launched or market entered, every transaction completed, it is Operations that enables business to flow. Operations is a dynamic, multi-faceted division that partners with all areas of the firm to deliver banking, sales and trading and asset management capabilities to clients around the world. In addition, Operations provides essential risk management and control, preserving and enhancing the firm’s assets and its reputation. The Operations division represents approximately 14% of the firm, with more than 4,500 employees across the globe. Operations spans across all product lines and markets where business is conducted. Each area of business offers diverse opportunities that leverage a common core skill set. While there may be a group that interests you, it is not necessary to identify the group you would like to join when applying. †¢Clearing Operations provides clearing, execution and custody services for all major trading products across 75 exchanges. Our goal is to deliver superior client service, broad product offering and scalable technology to our global client base and franchise trading businesses, while minimizing operational risk. Our clients include hedge funds, asset managers, governments, corporates, broker dealers, Goldman Sachs franchise traders, other professional investors and market markers. †¢Derivatives Operations is responsible for ensuring efficient and accurate transaction processing across a broad range of products. Generally, the products supported are complex instruments that require close alignment with the business. A key focus for the organization is establishing strong risk management procedures and controls to ensure the firm and our clients are properly protected. Derivatives Operations is at the forefront of shaping and driving change in the industry with the ultimate aim of delivering greater accuracy, control and efficiency for our clients and our business. †¢Investment Management Operations delivers asset management and wealth management capabilities to clients around the world. We are a multi-faceted group that partners with all areas of the Investment Management Division to support evolving markets and business requirements. Alongside that vital service delivery role, Investment Management Operations provides essential risk management and control. †¢Liquidity Collateral Operations (LCO) manages the operational elements for daily funding and liquidity of the firm, oversees the firms payment strategy and overall cash flows and positions, and also performs key functions related to counterparty risk management, client transparency, and product and pricing data. In addition to the traditional line functions, LCO is home to Operations Technology Strategy and Reference Data Strategy, both of which focus on strategic process and technology solutions for the division and often the broader firm. †¢Regulatory Tax Operations is responsible for over 500 non-financial reporting and monitoring functions to over 400 regulators and exchanges. The group enhances the firms regulatory and tax transaction and position data and operational controls and develops best practices and standards for processing, infrastructure, and change management. The group aims to leverage expertise consistently across regions and entities in order to demonstrate supervision to regulators and provide efficiency, data accuracy, and transparency around controls. †¢Risk Control Operations supports the firm by ensuring the integrity of books and records, assessing regulatory requirements, and interfacing with regulators frequently. In addition, the group provides the firm with critical control indicators that assess economic, regulatory, and operational risks, while providing oversight of the Operations Division Risk Framework. †¢Securities Operations supports the Securities, Investment Management and Investment Banking Divisions of the firm. This group manages key relationships for the bank and infrastructure providers, on boarding of institutional and prime brokerage clients, and assists in the coordination of issuance of new financial product. Work Done and Experience I did my summer internship in the Operations Division of Goldman Sachs. My project was primarily based on corporate card reconciliation process. Being an intern to the office, there was a lot to be learnt and a lot more to be implemented, but the people at GS were really accommodating and willing to give the interns the required space and time. Goldman Sachs has, a completely flat organizational structure and everyone is very helpful and you can reach out to almost anyone and he/she will be more than willing to help. The Program is very efficiently carried out and there’s a lot to learn. The firm has its own In-House University where there are innumerable courses on Financial Markets, Corporate Finance, Investment Banking that we needed to learn from. Everything you do and suggest mostly goes into Production i.e. LIVE so obviously you will be having a hands-on experience on things which are actually going to be implemented. All things said, there is deadline within which the work needs to be done. Goldman Sachs was a good shot to achieve out of this internship – improved Problem Solving, Industrial Exposure, Understanding of Financial Markets. At Goldman Sachs, everyone is encouraged to take on more responsibility and stretch themselves. People are very professional and are always there to help when needed. This makes it a fun place to work even though the nature of work is very challenging.

Quality of Consumers Goods

Quality of Consumers Goods In recent years, consumers are becoming increasingly conscious about the quality, safety, suitability and environmental impacts of the goods that they demand. However, in many cases, consumers would not aware of the quality of a goods or products even after consumptions. These products are known as the credence goods. It is difficult to distinguish between two qualities of the same good, even after consumption. In such case, consumers are willing to pay a premium for the hidden attributes of the goods that they cannot observe. Such goods include ‘natural versus genetically modified (GM) food, ‘organic versus non-organic products, ‘fair-trade products, ‘suitable for vegetarians goods, ‘Kosher, and more generally ‘high-quality versus low-quality products. However, this paper is interested to study a special type of credence goods, that is ‘Halal versus non-Halal products or goods. Halal is an Arabic word which means lawful or permissible. It follows the Islamic ruling known as the Syariah law. Halal covers every aspect of Muslims life especially dietary. Halal food simply means that the food products are free from any elements which Muslims prohibited from consuming. Extended discussion on Halal is presented in Chapter 2. With Islam as the second largest religion in the world and the fastest growing, the world Halal food trade is estimated to be around US$ 150 billion to US$ 500 billion in 2007 on which US$ 80 billion alone is generated from agri-food products (Agriculture and Agri-food Canada, 2007; Brunei Halal, 2007). These factors hasten the investment in Halal products, and in some cases, producers cheat for easy access to the market. Analysis of Halal in this paper, distinguishes itself from other studies on credence goods, as it involves different levels of consumers interactions. Any credence goods, including Halal products, comprise a special attribute or characteristic. This characteristic is not verifiable and revealed unless by experts or other professional services. Hahn (2004) suggested that real or complete credence goods would be difficult to find as consumers would have some judgement on products or services after the consumption. This is not entirely true as in case of Halal food product, especially Halal meat. It is very difficult to check if the meat is entirely Halal as claimed, as there is no existing way to check after consumption whether say the meat purchased is really slaughtered in Syariah methods, even though there is non-existence of other non-Halal ingredients. Therefore, in this sense, Halal meat is an example of a real credence good. In many cases, consumers concern for the special or credence attribute (eg. environmental, fair-trade, organic, Halal, etc.) is evidenced by their willingness to pay a premium for the high-quality products. The willingness to pay opens up an opportunity for low-quality producers (those which lack the special attribute) to take advantage by pretending to be that of high-quality, especially when only the producers know whether the desirable attribute exist in their products or not. Moreover, it is too expensive for individual consumer to directly monitor or verify these attributes. Therefore, consumers could only decide their purchasing choice on subjective belief regarding the products quality, which are based on all available information such as press report, word-of-mouth and labels when such adverse selection in credence goods market exist. Hence, producers cannot build reputation when production of low-quality imitating goods could not be detected and punished. Delayed detection of low-quality products allows its producers to imitate the strategy of their high-quality rivals, which hampered signalling use. Like other credence goods, Halal food products, through certified Halal brand/logo would improve the information asymmetry, but may carry the similar issues. These issues are discussed in Chapter 2. It is common for credence goods to feature a communication scheme such as labels or brands to help consumers in making purchasing decisions. Moreover, these labels or brands often require authentication by legislator or a third-party organisations that have the proficiency in each field of specific credence quality attributes, thus involving additional costs. In the Halal market, there also exist regulations by the government (eg. in Brunei, under the authority of Brunei Islamic Religious Council, Ministry of Religious Affairs) or third party organisation (eg. in United Kingdom, by Halal Monitoring Committee and Halal Food Authority, to name some). In which they certify a product through monitoring and indicating some guidelines for producers before granting a recognisable label on the products. Hence, this label helps consumers to make better decision choice. Moreover, a quality label that improves pre-purchasing information would increase welfare, and high-quality producers would always be willing to go through the necessary inspection as to reveal the products quality to the consumers, unless the cost for verification is extremely high. The welfare affect of introducing Halal labelling is briefly discussed in the analysis, especially where Halal labelling opens up an opportunity to access additional consumers, ie. Muslims, also referre d to the primary consumers. The analysis of Halal in this paper is aimed to study the interactions of the market forces or what commonly referred to in economics as ‘invisible hand of the demand and supply in Halal market. At the same time, considering the effects on introduction of labelling upon the level of equilibrium, in addition to other factors such as the additional demand by Muslims of primary market. This is a unique or special aspect which might not be available in previous studies on credence goods. The following chapters are organised as follows. Halal concept is further discussed in the next Chapter 2. This chapter is intended as an expansion to the introduction (Chapter 1) in order to provide a deeper understanding on the concept of Halal, and to provide information regarding the current market for Halal food products and the issues pertaining in the Halal market on the use of Halal logo. The relevant literature reviews are discussed in Chapter 3, discussing the works by other authors on the area of credence goods which can be linked to Halal. Chapter 4 presents the economic analysis and application of Halal products as credence goods. Chapter 5 concludes this paper and provide a discussion on the policy implications generated by the study. CHAPTER 2 2.0. A Brief Concept of Halal Religion involves beliefs and the way of life, where group of individuals interprets and respond to what they feel is supernatural and holy (Johnstones, 1975, in Shafie and Othman, n.d.). Shafie and Othman underline that most religion prescribes or prohibits certain behaviour including that of consumption (n.d.). The concept of Halal is not new in the Islamic world, but only in recent years that its potentials have been realised by corporations and organisations around the world, which normally perform under the conventional economics. The word Halal comes from Arabic which means permissible or lawful. It is ruled by the Islamic law known as Syariah law which is based on the Quran and Hadith (records of the life, actions and teachings of Prophet Muhammad). By not fully understanding the concept of Halal, one (non-Muslim especially in Muslim-minority country such as United Kingdom) may think that Halal only refers to meat or something to do with ‘kebabs. Halal actually governs every aspect of life of Muslims, however, this paper only view Halal perspective on consumption of food. What is not Halal is called Haram or non-permissible. Any product which comes from swine and/or dog is strictly Haram. A special cleansing ritual must be done if a Muslim directly touched (although accidentally) these animals and/or the sources (eg. skin). Such products that contain strictly Haram ingredients or derivatives are termed as ‘non-transformable in the analysis in Chapter 4. Amongst other strictly Haram animal products include blood, birds of prey, and/or carrion (dead animals without slaughtering). Alcohol is also Haram, but in some strict case it could become or change into Halal, this is discussed later on in Section 2.3 of this paper. Un-slaughtered animals such as beef and chicken are also become non-Halal, unless slaughtered by a Muslim according to Syariah practice. Such products are termed as ‘transformable in the analysis of this paper. What lies between Halal and Haram is called Mashbooh meaning that the goods appear to be suspicious, questionable and According to Bonne and Verbeke (2007), as product attribute, Halal refers to the nature, origin and the processing methods of the food products, which entails similarity with organic foods and those taking animal welfare or sustainability into account. Strict procedure must be followed to obtain highest standard of Halal, and that Halal products must not contact with non-Halal products; as similar to vegetarian food should not be in contact with any meat. Halal concept covers both food and non-food product category, but as mentioned earlier, this paper would only focus on the first one. Studies show that about 70 to 75 percent of Muslim strictly follows the Halal standard for their dietary (Hussaini 1993a in Bonne and Verbeke, 2007; Minkus-McKenna, 2007). The next section provides an overview of Halal food market. 2.1. Halal Food Market The Halal market is considered as the fastest growing market globally as reported by the Borneo Bulletin (2008). The world Halal industry is estimated to worth between US$ 500 million to around US$ 2 trillion (Agriculture and Agri-food Canada, 2007; Borneo Bulletin, 2008; Brunei Halal, 2007). The market is growing around US$ 500 billion annually due to the rising Muslim population worldwide (Borneo Bulletin, 2008; Brunei Halal, 2007). It is reported that the Muslim population is known to be the fastest growing religion in the world (Bonne and Verbeke, 2007) and in Europe (BBC News, 2005). The global Halal food trade itself in 2007 is estimated to be between US$ 150 billion (Brunei Halal, 2007) and US$500 billion with 12 percent of this or US$ 80 billion generated from agri-food products (Agriculture and Agri-food Canada, 2007). In addition, Islam is the second largest religion in the world (Riaz and Chaudry, 2004) with nearly 1.5 billion people (ibid.; Bonne and Verbeke, 2007; Din, 2006). The National Statistics Census carried out by the British Government, shows that Islam is also the second largest religion in the United Kingdom, approximately 1.6 million Muslims (2001). The statistics also revealed that Muslims are the largest household in the United Kingdom. These factors would justify that the demand for Halal food products in the United Kingdom is expanding. The market for Halal can be divided into two namely, primary and secondary. Primary market arises from the demand by Muslims, whereas, secondary market refers to the demand by non-Muslims. These terms are used in the analysis of this paper. Agriculture and Agri-food Canada (2007) suggested that Halal is often referred to safety and of high quality by both markets. Besides these, factors for increasing Halal demand includes: increasing incomes in primary market, rising population of Muslim, and rising demand for variety in primary market (ibid.). For Muslims, consuming Halal food products are their religious obligation, however it is known that Halal food are also consumed by non-Muslims. The later often perceived as specially selected and processed to achieve highest standards of quality (Riaz and Chaudry, 2004, p. 14). Manufacturers or producers that sells Halal products would create significant advantage compared to those that do not (Shafie and Othman, n.d.). Riaz and Chaudry (2004, p. 16) suggested that the increasing demand for Halal products as well as expanding number of Muslim population can be an inducement for producers to provide Halal products. Nonetheless, it is safe to say that these views mostly look at Muslim-majority economies such as those in Asian region. Hence, this paper provides a study in relation to Muslim-minority economy such as the United Kingdom. However, like any other food labels, Halal labelling also have some issues. 2.2. Halal Logo and Its Issues The use of Halal logo in food products indicates that the products are Islamic or Syariah compliant. Similar to other food related logos such as ‘suitable for vegetarian V-logo, Halal logo intends to communicate with the consumers of this product that it is fit for their consumption. Initial finding shows that some companies may use this logo even though its products might violate some rules of the Syariah law. Such situation was reported in which, some meat and other processed products from Brazil imported into the country, were being inspected by Halal Monitoring Committee, to be found a violation (2007). Another comparable situation is reported by The Tribune (2008) that the biggest meat producer in Scotland is under investigation over the supply of so-called ‘fake Halal meat in the country. There are some issues to which cause the problem arises. Fischer claims that the lack of a state body that is capable of inspecting the unregulated market [in the United Kingdom] has left this market open to fraud, corruption and without any kind of standards, uniform certification and standard (n.d.). Study by Fischer also shows that many British Muslims and organisations call upon the state to help recognise and standardised Halal. However for the ease of this papers analysis, this situation is relaxed, meaning producers behave honestly when claiming their products as Halal. Having Halal logo does not mean the products automatically accepted to be purchased by consumers especially that of primary market. Research undertaken by a university in the United Kingdom, shows that consumers prefer small shops when buying Halal meat, rather than buying from supermarkets, due to factors mentioned earlier and others including lack of marketing of Halal food (Anonymous, 2006). Like any other goods, the credence of Halal food products has to be clearly communicated such as indication on pack or on-label (Bonne and Verbeke, 2007), in addition to conventional marketing strategies, for example advertising. Moreover, this would add some utility value to the consumer and useful in the purchasing decision (ibid.). Nonetheless, to make the analysis of this paper simple, having Halal labelling is enough to induce greater demand and consumptions. 2.3. Issues of Alcohol Alcohol is clearly not permissible, however it is essential for certain industry processes and religious scholars are aware of this — some of them suggested that some use of alcohol may be acceptable as long as it is evaporated and not exist in the final products (Riaz and Chaudry, 2004). However, if there is an alternative to alcohol for such process, it would be preferred, as majority of Muslims would avoid products that use alcohol at any stage. It is generally known by Muslims that wine (a Haram state product) which turns ‘naturally into vinegar thus the vinegar is considered as Halal. This situation is called Istihala or ‘change of state or properties. A reverse situation as such that, if wine is added to Halal food, as in common cooking practise in the Western, hence the food becomes Haram. However, this issue is not represented in the analysis, for simplicity argument. It is clear that Halal can be perceived as a credence attribute, although there are numero us literatures on credence goods, only few actually discussed in relation to Halal products. Next chapter will discuss the literatures on credence products. CHAPTER 3 3.0. Literature Review This chapter is divided into five interrelated parts or sections. The first section provides a (general) glance on the studies or literatures on credence goods, which is applicable in the study of the market for Halal products. This is followed by the second section, of discussions on the demand for such goods. Market failure arises due to the nature of credence goods, which is discussed in the third section of this chapter. In the fourth section, a review on the solution of the market failure problem is examined. The final section deals with the issue pertaining to some of these solutions. 3.1. Credence Goods at a Glance There are growing numbers of literatures on credence goods attribute since it was first mentioned by Darby and Karni in 1973. These literatures involve different assumptions which produce diverse outcomes. However, it is difficult to find economic literature that deals directly with Halal subject as a credence good. Nonetheless, studies on some of the credence goods can be applied to Halal concept. Most literatures on credence goods assume that consumers are homogeneous. Hahn (2004) showed the contrast to this, in which the author grouped the consumers into two namely those who have some expertise or informed and those who do not or uninformed; This paper is slightly differs from that of Hahn (2004), where the consumers in this paper are also divided into two, namely Muslims (those who only consume Halal goods, or primary consumers) and non-Muslims. The latter is further grouped into two, ie. conventional consumers—who only consume non-Halal; and secondary consumers—who prefer to consume Halal products. Some economists (such as McCluskey, 2000; Cho and Hooker, 2002) used game theory models on credence attribute to assess the interplays of stakeholders. These include whether producers decide to claim their products as those of high quality, then they have to decide whether to produce according to the claims or not. However, the use of game theory is out of the scope of this papers analysis. Nonetheless, producers are assumed to produce what they intended to, without dishonesty. Economists divide consumers perception of food quality into a three attributes, namely: search, experience (which were pioneered by Nelson in 1970) and credence attribute (in Darby and Karni, 1973; Innes et. al., 2007; Umberger et. al., 2008). Search attributes can be determined from pre-consumption and at point of purchase such as colour, shape, brand and freshness. Experience attributes, arise from taste, juiciness, and food safety which could only be determined during or after consumption. Lastly, credence attributes refer to the process and production aspects, which the author claims that it cannot be determined before, during or after consumption of that particular food product (Umberger et. al., 2008). These food products, especially Halal as credence goods emphasise and maintain a strict quality attributes, and failure to maintain this would result a loss in its credibility, hence would brings disutility to the consumers or reduction of welfare. Some economists such as Caswell and Mojduszka (1996, in Cho and Hooker, 2002) argued that by providing information as policy tool, credence attributes could be transformed into search attributes. However, this would require a strict environment where system of information provided is perfect and fraud could not taken place — these are less likely to be a (current) scenario of the real world. Nonetheless, this concept is used in the analysis of this paper, for simplicity reason. On the other hand, Cho and Hooker (2002) mentioned that credence goods could act like a (lagged) experience goods if they involve time duration for detection of risk (relatively quickly), eg. infected food, vice versa. Like any production or supply of consumer goods, it depends on the demand for such goods, for an equilibrium to exist in the market. The following section discusses the determinants of demand for credence goods. 3.2. Consumer Demand for Credence Attribute Individuals would consume goods or services that yields highest utility or satisfaction level and presumed to make rational choice. However, this is subject to physical (ie. how much they can consume) and economic (ie. budget) constraint that limits the consumers choices (Mas-Colell et. al., 1995). Moreover, the preference-based approach to consumer demand is of critical importance for welfare analysis in which, without it, evaluating the consumers level of well-being would have no meaning (ibid.). Dulleck and Kerschbamer (2001) identified credence characteristics in terms of utility, in which although consumers can observe the utility derived from consumption of such goods ex post, they are not sure if the utility they get is the ex ante needed one. However, in the analysis of this paper, the utility is considered in terms of welfare level obtained from consumers and producers surplus. In addition to the conventional determinants for demand such as income, taste and preference, consumer characteristics and quality attribute become increasingly important factors nowadays. According to Antle (1999, in Senauer, 2001, p. 4), the new economics is more concerned with the markets for ‘quality-differentiated products in which the author presented a stylised demand function which include quality factors (non-price attribute): X = D (P, I, N, C, Q) Where X depends on price and other goods (P), income (I), number of population (N), characteristics of the population/consumer (C), and non-price attribute of the product (Q). It shows that any product attribute which includes nutrition content, safety, production process and even inputs, would creates utility or disutility. The analysis in Chapter 4 directly deals with the two of these factors namely, consumer characteristics (ie. preferences, and religious needs) and product attribute (ie. Halal credence). Hoehn and Deaton (2004) provided a model where consumers choose either purchasing credence (high-quality) good or conventional (low-quality) goods by comparing the consumer surplus differences. If the gain from consumer surplus from credence goods is large, compared to the opportunity cost of surplus given up from not purchasing conventional goods, the former good would be purchased. Their studies are used as a foundation for the analysis in Chapter 4 of this paper. Most literature reflects credence goods as vertically differentiated products due to quality differences. Nonetheless, Bester (n.d., in Roe and Sheldon, 2001) provided a concept of unobserved quality into a horizontal differentiation model and suggested that unobserved vertical quality would reduce producers incentives for horizontal differentiation via relaxing price competition amongst producers, in a way which prices act as a signal and consist of a quality premium. This is related to the second part of this papers analysis (Section 4.2. of Chapter 4) involving a franchise market. Consumers demand and preferences for credence goods often perceived from their willingness to pay. 3.2.1. Willingness to Pay There are other factors why consumers might be willing to pay a premium besides the quality attribute, such that they perceive credence goods as fashionable, trendy, or it could be that the purchase the alternative to credence goods would offend other people (McCluskey, 2000). The later is pertinent to Halal goods, especially in a situation where the consumer lives with Muslims housemates, or in a Muslim-dominated country. Consumers would also prefer for the high-quality products, even not for the sake of quality itself but other factors. For instance, when consumers care about other quality or criterion such as animal welfare, environmental, ethical, and religious reasons, to what Antle (1999, in Carlsson et. al., 2004) referred as extrinsic quality. If the distinctions in quality were signalled efficiently, consumers would be willing to pay a higher price or premium for products of high quality, hence compensating the higher production costs, as suggested by Kola and Latvala (2003). In their research on the effects of information on the demand for beef products credence characteristics in Finland, 59 percent of the respondents showed their willingness to pay a higher price for additional information. Whereas, 41 percent of respondents had zero willingness to pay, in which 35 percent of them are satisfied with the existing information, and 17 percent considered the information is not enough or they did not trust the information. As credence quality of a product cannot be observed directly at a reasonable cost or without invasive testing, consumers would rely heavily on claims or information made by the producers via brands, labels or advertisements (Cho and Hooker, 2002). This papers analysis however, only considers that consumers fully trust producers. The next section provides discussion if the information provided is insufficient or inaccurate, resulting a market failure. 3.3. Market Failure It can be said that the credence market are prone to the problems of market failure. There are different ways for a credence market to result in inefficiency. It is mainly due to information asymmetry between producers and consumers. 3.3.1. Information Asymmetry In credence goods, consumers cannot directly observe the quality of the goods that they consume where only the producers know the exact quality, thus resulting information asymmetry. Common intuition indicates that the solution for an information asymmetry is by providing more information. Information, as conferred by Weiss (1995, in Cho and Hooker, 2002) is the central tenet of food safety economics. Brands, logos and labels most importantly serve as a signal to inform and communicate to the consumers about products attributes, hence alleviating information asymmetry between producers and consumers. According to Verbeke (2005), information is likely to be effective only when it addresses specific information needs of its target audience. It requires identification and detailed understanding of these needs, and proper management on the provision of the information in order to optimally address the needs (ibid.). Information regarding food quality and safety can be categorised as risk information and aims at reducing uncertainty faced by the consumers in making purchasing decisions. Hence, success would come from better understanding regarding consumers attitude, behaviour, motives, and their perceptions (Frewer et. al., 2004, in Verbeke, 2005). There exist welfare effects to consumers for providing (Marette et. al., 1999, in ibid.) or withholding (Mazzocchi et. al., 2004b, in ibid.) food quality information. The work done by Umberger (et. al., 2008), can be used as a foundation on the argument for the importance of Halal logo or labelling on food products in particular. The authors claimed that potential market failure would occur if consumers face limited choice and if the access to ‘innovative products is not available, or information regarding ‘product attributes, for example the production methods, is not transparent (ibid.). With this regards, Halal products would be seen as innovative products and carry some product attributes that must be fulfilled, otherwise there might exist market failure for Halal products. Halal logo especially from organisation for Halal certification, could be used to indicate these attributes. Consequently, lack of information becomes the key factor for the inefficiency of credence market. The followings are resulted from insufficient information. 3.3.1A. Failure due to Fraud In their studies, Dulleck and Kerschbamer (2001) divided credence attribute problems into two fold: inefficiency treatment, and overcharging. The first fold refers to the quality level (or service) of credence goods provided by producers, and inefficiency treatment can be either under- or over-treatment. On the other hand, the second fold refers to the pricing of credence goods, particularly as self-described, overcharging. When the signal is unavailable, especially in the case where labelling is not mandatory, sellers may have the incentive to fraud by supplying products of low-quality but claiming these products as high quality. Akerlof (1970) explains this situation with automobiles market as an example, in which with asymmetric information high-quality goods (‘peach) would be driven out by the low-quality goods (‘lemons) hence resulting market failure. Moreover, as argued by Liebie (2002), when producers of low-quality products claim to be of high-quality, this would raise doubt in consumers mind and would not be willing to pay a premium for the high-quality goods. This in turns, would lower the profits of high-quality producer hence reducing their incentive to invest in high-quality products, in which would create further doubt to consumer. The cycle goes on until only low-quality products would be sold, even though consumers prefer high-quality products, resulting market failure. Darby and Karni (1973) suggested that the amount of fraud depends on reputation, market conditions, and technological factors. Profit-maximising producers would have the incentive to fraud by claiming their products are of high quality if the probability of not being caught is high enough (McCluskey, 2000) or conversely if the probability of being caught is low. Such fraud issues bring uncertainty to consumers. 3.3.1B. Problems of Uncertainty Bonroy and Constantos (2008) concluded that uncertainty by consumers on the identity of producers which produce the high-quality products put the high-quality producers in disadvantage resulting from higher cost. They argued that this disadvantage would remain even when the consumption of high-quality products benefits are well worth the cost difference and all beliefs regarding the high-quality producers are in the right direction (ibid.). Their model explains the difficulty faced by high-quality credence products to acquire the dominant market share they should have obtained from efficiency perspective (ibid.). This is however beyond the concept of this paper, as to avoid complication in the model, it is assumed that producers behave honestly in producing the products and consumers fully aware the qualities. 3.3.1C. Non-Rational Behaviour Unavailability of credible food quality labelling, consumers would face uncertainty and would incur search cost on specific information (Hobbs, 2004, in Verbeke 2005). As a result some consumers would not behave rationally, being ignorant, or make decisions which are not maximising their expected utility. Such behaviour explained as a concept of â€Å"bounded and limited rationality† or â€Å"rationally ignorant consumer hypothesis† (as found in Kahneman and Tversky, 1973; Simon 1979a,b; Camerer and Loewenstein, 2004; in Verbeke 2005), is however beyond the concept of the study in this paper. Verbeke (2005) concluded that without quality verification, traceability was of little value to consumers, whereas quality assurances were much more valuable to them. The solutions to the problems of market failure are presented in the next section. 3.4. Solutions to the Problems This section examines some of the solutions to the problems mentioned previously which are mainly caused by lack of information. The most common solution this, as stated earlier, is providing more information through labelling or signalling. But this must be accompanied with efficient monitoring. 3.4.1. The Use of Labelling as a Signal It is generally known that labelling of credence attribute could be used as a way to certify the provision of valued attributes, hence to avoid market failure. Moreover, Caswell and Padberg (1992) claimed that information in the form of labels, word-of-mouth, advertising, and education would contribute to the co

Problems For Multinational Cooperations In Host Country Economics Essay

Problems For Multinational Cooperations In Host Country Economics Essay Introduction The existence and the account of the transnational corporations are established and can be founded far early then globalization, which took place in the nineties, but has opened the doors for more distinguished, liberalized the free trade across the globe (Gray 1993). The transnational corporation plays an essential role that holds the main pillars in shaping the dynamics of world trade and the economy of the host country in this current globalized world (Hesketh 2010). Today a large number of crown organizations are the transnational enterprises. These corporations have a fundamental factor that influences trade, concerns with technology, finance and foreign direct investments in the host as well as the home country. These forces regulate frames and direct the economic growth and development of the states in which they operate. (Gray 1993) The transnational corporations are many a time described as the organization with dual face. One side where they are respected and cherished as an model of income to enlarge the local economy by the FDI, and on the other side they are blamed as selfish and hungry organization who aims for only the volume of their income rather than the gains to the economy where they operate. The impact of these factors affects the economy and social interests on the government, demographic factors, businesses as well as on the foreign-owned firms. The power and the influence of the transnational corporation on the government and the marketplace, make the monopolist businesses in an economy go behind them or form an alliance with the transnational corporation and leads to their success and progress in competence in the host countries. (Harrison 2000) Alan. M. (2009) and Andrew. H. (2000) defines transnational corporation or multinational corporation as an enterprise that has its headquarters in one country or home country, but manages production or operation of its services in one or more other countries or the host countries. The transnational corporations are the firm who structures its management, strategy, have ownership, directs geographical diversification and operations globally (John. H. 1993). They influence the economy with potential that are designed with numerous possibilities that are fundamental for developed as well as developing countries. This includes capital, competency or skills, technology or processes, exports, and infrastructure that are deliberate for developing their competitiveness (Worasinchai 2009). For example, Uniliver has its headquarters at Rotterdam in Netherlands the home country and today holds a larger portion of their business of numerous consumer product brands operating throughout the world or in host countries, in foods, beverages and personal care products (Hesketh 2010). They have their brand name also design their products and services according to the market and the trends in that economy. Scope of the activities of the transnational corporations Firms those acquire more than quarter of its revenue from their operations generated outside of its home country can be termed as transnational corporation (Makwana 2006). The transnational corporations are habitually dispersing firms. They have a powerful home country presence and a fine management and authority with a broad and centralized facilitate on their parent firms. They attain this by cost benefit throughout central production plant where cheaper resources are easily accessible; have technical expertise to improve the management system and the productivity. (Gray 1993) The transnational corporations expand and prosper exceptional in an economy with dynamic marketplace that determine the low-priced and superiority of goods with respect to production, price and supply of goods and services in a host country (Karl 2003). The strategies of the multinational corporation brings along the reality that they hide is they indirectly establish an outlook to the economy by dominating government, economists and domestic industrialists to attain their interests (Markusen 1995). The transnational corporation is threat to the sovereignty to the host country in many aspects. Following are some barriers that are currently faced by almost every host country. Transfer of technological or processes- The transnational corporation may be a threat to an economy, as they can bring along a low-grade or incompatible technology in the host country (Makwana 2006). For instance, the transnational corporations brings along with them technology, equipment, approach and expertise that are not required in that host country. The firms do this in order to get the best possible benefits from a host country even if there is no assistance of their operation to that economy. This is done by introducing production methods along with sophisticated machinery that is not of any interest to the host country and may need skillful labor and auxiliary industries that are not available in that country (Passani 2009). Further dilemma with the transfer of the technology will make the transnational corporation to dominate the domestic industry by the means of technological advantage or technological dependency, which may bring a fall in research and development if they are outsourced. This can be anticipated by the transnational corporation through introducing modern tools, knowledge and machinery for creating an obstacle to the local businesses that cannot create or purchase these facilities (Kevin 1998). This might result in eradication of some small businesses in the host country thereby leading to monopoly, which is not fruitful for any economy to thrive. Influence of the trade policy and trade agreements The multinational corporation plays a vital role in shaping the trade policies and trade agreements of the host country. Trade policies are the set of rules and regulations that are concerned to the entire states involved in international trade (Kumar 2008). Trade policy comprise of import and export taxes, inspection regulations, tariffs, and quotas. These policies are framework for a flexible coordination of trade activities to make trade in smooth flow, set clear principles and standards that can be understand by the businesses as well as its clients (Rugman.M. 2009). Although they are not practically always accomplished. The developed nations will always restrict the trade activities with the developing as well as underdeveloped nations to limit and dominate trade (Kumar 2008). The transnational corporations try to take advantage of the trade policies by industrial domination and using this distinctive rights advantage to frame concessions from the government of the host country. The traffic and duties barriers create a restriction and prohibit the trade activities by slowing the process of import or by establishing standards that will exclude the foreign goods (Rugman.M. 2009). Their pressure on the host government may influence the economic as well as the political policies to shape for the more interest of the multinational corporation. This may neglect the domestic industries and make them further more inflexible (Makwana 2006). The trade policies in support of Multinational Corporation may restrict the host country to produce goods only for domestic market and restrict the exports. These corporations may also For example- IN 2007, according to the Boston Globe report, South Korea had exported 700,000 cars to the United States. While U.S. carmakers sold around 6,000 crankshafts to South Korea. This resulted a trade deficit to U.S. of around 80 percent of $13 billion with South Korea. The free trade agreement under which the Balance of Trade to U.S. was deficit and made U.S. to restrict import of cars from South Korea in next year (Moor 2007). Cultural impact on the MNCS In the pursuit of the economies of scale and be a competent organization in every aspect, transnational corporation creates a diversity and clashes in different geographical and local cultures in dissimilar as well as same nations (Harrison. A. 2000). Today transnational corporations have to acknowledge with the reality of cultural diversity in different aspects. The companies bring along with them new technology, work practices and challenging the management beliefs and transmits them in host countries (Gray 1993). Rugman (2009 p. 47) Cultural dissimilarity often makes the multinational organization for merger and acquisitions. This may enforce the new style of management and operations on the economy or the economy may restrict the sovereignty and the independence of the cultural norms and organizational goals on the corporation with their traditional beliefs. (Rugman.A. 2009) For example- McDonalds is one of the leading fast food chains with a worldwide presence. They are operating around 118 countries worldwide. Different countries have a different outlook for the services provided by them (McDonalds 2010). In UK, MacDonald is blamed as an unhealthy food chain that is responsible for rise in obesity and employment without prospects. While in Muslim countries like Malaysia, the bacon is not served in McDonalds burgers as pork is not permitted under Islamic dietary law (McDonalds 1940). This shows the effect on the organization as well as on economy because of cultural crash. The culture diversity may influence on the face-to-face or on company-to-company operations, dealing in different clusters around the globe (Markusen 1995). Cost advantage (e.g. Low cost) North American Free Trade Agreement (NAFTA) agreement designed for liberated trade between the United States and Canada and Mexico made it potential for many U.S. manufacturers to shift their employment to lower-cost countries like Mexico in order to achieve competitive labor-cost advantage (NAFTA. 2010). This restricts the multinational corporation to expand more in their choice of environments where they can make substantial benefits and forcefully invest the resources abroad. Availability of quality goods and services in the host country Many- a-times, businesses in a host country may be chiefly designed for export market. Although in some places the organizations make investments in order to increase their access in the host country market in order to decrease the trade barriers (Gray 1993). For example- Honda, Japanese car manufacturers made investments in UK for their production of cars, has facilitated them to acquire a platform in the EU in order to avoid tariff barriers (Nag 2007). The availability of resources in foreign market has made access to high quality goods at low-prices and the rivalry created, has made the organization to improvements in working practices, prices and quality in other related industries and forced the industries to make huge investments to attain these resources (Karl 2003). Influence of Government regulations and bodies The international business along with it benefits, makes the countries involved to reveal on the rationale for the dreadful effect of the trade activities in their economy. The government does the monitoring of the activities by setting up bodies and agencies that control and monitor the trade activity and the flow of these resources (AFTA). World Trade Organization (1995) acts as a body to liberalize and encourage the world trade. However, there is no transparency of the decisions made by WTO, which has made it complex for the multinational corporation to operate in the nation, which is not a Most Favored Nation (MFN) (WTO. 2010). The free trade through negotiations has always forced the MNCs to face in almost every regional and international clash. The problem of exchange rate also has an essential part for the MNCs in the host countries. The exchange rate may affect the import surplus, inflation or deflation of currency rates and risking the organization many a times in debts (IMF, 2010). Role of Foreign direct investment The foreign direct investment (FDI) involves a long-term contract between the organization and the government and hence has a huge impact on an economy. The FDI bring about transformation and involvement in management, joint venture, modification of technology with expertise with the foreign assets or foreign investment (Markusen 1995). FDI are channels of technology spillover. These leaks may occur as; a firm may hire an employee from a rival firm that has acquaintance about the technology that is used and bond in fraudulent practices (Markusen 1995). For example- Flextronics is worlds leading contract electronics firm, took over C-Mac industries of Canada in order to acquire C-Mac expertise in assembling the components of their new products (WTO. 2010). Economic exploitation Role of freedom and peace plays an dominant role on the organization as well as on the host government. The exploitation of the foreign organization of the government of the host country may influence in terms of trade policies, labor, FDI and exploit the trade activities (Kevin 1998). Restriction but both by the MNCS and the host government bounds the circumstances and limitations to the trade operations and infringe the market principles by making the small firms to operate in that market of go for overseas trade (Kumar 2008). The exploitation has also affected the employment, where the new principles positioned for generating high profits have dominated the salary and the opportunities of the lowest to the highest profession in the number of the employees as well as on their wages. Item B GLOBALIZATION OF UNIVERSITY EDUCATION (Johnson 2008) Introduction What is globalization of education Globalization of education is to pursue, instruct and build a qualified as well as skilled labor work force, while creating awareness to gain know-how and acquaintance from other education institutions around the globe along with global businesses demands (Hamilton 2009). Today globalization has posed a model pursued by diverse cultures to practice superior education; make awareness and expertise the inhabitants to seek for knowledge from other higher education intuitions (Raby 2009). Globalization of education is bring about the creation and alliance and interconnections between states education systems that usually understands the process and structure in which barriers separating different regions of the world education establishment are reduced or removed (Daun 2007). Globalization today is a complex issue for many community universities around the world and is at present observed as crucial to every nations competitiveness to raise their standard of living. These days universally, higher education structure, policies and establishment are being transformed by globalization. This is broadening along with growing and speeding up of global interlinks between the higher universities (Daniel 2010). University education is now more globally open other than most of the sectors because of its transparency and widespread arena immense knowledge along with massive market demand of educated personnel as well as global customers, which now shows significantly more respect between the juridical borders worldwide (Elaine 2010). Evolution of the university education since globalization has transformed and influenced largely on the intuitional schooling techniques as taking into action the challenges with the openings that are primary element of the present global world since they are regularly developing to supply new principle to the rapid changing internationalization and schooling the inhabitants (Hamilton 2009). The Globalization of the education brings about the changing customs in the university education and is concerned to shifting between universities. This brings the idea of how university education will anticipate the future opportunity and bring together in front a mixture of the finest philosopher and bright brains throughout the globe for one intention (Amaral 2009). Globalization of the education can be illustrated at present in the diverse world where the higher as well as the small institutions and universities apply to complex university systems to global online university for new opportunities, modernism forces and trends in higher education on the following aspects. Market globalization The globalization of market, which was earlier, unnoticed during early 1980s, is the foremost concerned subject of every economy worldwide. This has amplified the commerce of the gross world merchandise nearly double when compared in the 1990 of 15% to nearly 37% in the recent years (Daun 2007). The foreign direct investment funds have also increased significantly in the last 20 years (Knust 2009). The recent liberalization of the trade and policies has laid a structure for every economy to develop and react vitally to the volume and competitiveness of the businesses and trade from countries worldwide. In the rapidity globalization of the market, internet has played crucial role in shaping the business worldwide to construct a low cost establishment for communication and businesses activities to draw, persuade and engage the target consumers in a appropriate approach. Market driver Globalization has directed the economies, education and rituals followed by dissimilar states to internationalize and spread of market needs between diverse nations over the globe. This has facilitated the spread of knowledge along with understanding of different practices in the markets and assisted as a principal footstep for the development of the nations (Pamela 2010). The globalization of the market drivers can be categorized under- Similar customer needs and tastes Customer desires depend on how the corporation or institutes segment their markets and demands. In the course of selecting among the rival goods and services, consumers choose the preference that can facilitate and fulfill their requirements and are superior to competitors products (Raby 2009). In the marketing where the consumers search for distinct product or service that have different needs and segments in the same product chain, the trader tries to split the product according to the customers needs by splitting the identical products and requirements into personal preferences. This never-ending demand of dissimilar choices has made the companies to promote and spread their distinctive products worldwide. To capture and establish their presence the companies need trained and skillful workforce (John 2009). The different market demand and requisite make it obligatory for the universities education to gain more knowledge and awareness in their teaching around the world (Amaral 2009). Fresh and towering ideas and inclination of the nations trade and their close partnership between the education and industries makes the globalization of the higher education compulsory universally (Knust 2009). 7. Global customers Today every professor and superior administrators is awake and remain acknowledged about the movement of commerce and advertising into education as the trade activities and the reach of the global consumers is shaping the economy growth (Daniel 2010). The reach of the global teaching hence plays a crucial role in fulfilling the diverse customers needs and more over recognize the different aspiration in different states. The Multinational companies who play a key role in the globalization of trade, for their elastic operation globally involve managing their interactions with international customers in a worldwide-incorporated model where the different preferences in design, taste, color, shape and other dimensions to the product are designed to dissimilar target customers (Daun 2007). Transferable markets Nowadays the infinite market demand in terms of product or services or in the field of education is immense. To fulfill the market demand the trader and intuitions tries to be flexible and make it flexible to relocate from one market into other in order to sustain the market share and meet the rising competition (Daniel 2010). The activities of the 2002 where the enclosure of staff and students in decision-making, the governance deliberated the change toward concern of effectiveness and responsibility emphasized the introduction of New Public Management (NPM). This altered the structure and policy processes of public bodies in an effort to make them more efficient and effective to serve the high market requirements that aided the graduates and the business to interact directly for employment (Grant 1997). Dell recognized as devoted brand for its distinctive market share to supply technology at inexpensive and handy to its customers and intuitions around the world to take advantage of the vast economic and social benefits by, managing the customers demand by using customer direct model and bring low-price in the markets, expand the global employment to meet the diverse ideas and expertise and bring desirable employment worldwide economies. (Dell 2004) 8. Globalization of competition Globalization of the competition plays an important role in the modern education system that is depended on the interdependence between countries, Competitors global strategies, high import exports. Globalization has ultimately led to further Competition within the developed as well as the middle-income countries. This is chiefly in Asia, that has lead to growth and collaboration of the businesses as well as the educations institutes from the OECD countries has led to ease of policy formulation, seeking solutions to the most common problems, recognizing good practices with co-coordinating with domestic and international strategies (Elaine 2010). One evidence for the development of higher education institutions and the increasing competition can be found in the large range of institutional structures where dissimilar small as well as giant universities of applied science to multifaceted university systems to private colleges use internet to spread the prospect now use online and abroad teaching pattern. This has aided the universities to speedily react to the challenging and take advantage of the modern opportunities (Raby 2009). Higher education has now become central to the changes sweeping through the OECD and emerging nations, in which worldwide networking and exchange are reshaping social, economic and cultural life. But has also increased the level of competition (Pamela 2010). 9. Globalization of government policies In global acquainted economies, higher University education has a major significance than ever before as standards of wide range of cross-border relationships and continuous global flows of people, information, knowledge, technologies, products and financial capital is vastly depended on the government policies and regulations that govern the participants of the market (Daniel 2010). The government policies are framed and structured under trade policies, technical standards, host government policies. In practice, the principal objective of such reforms is to begin a process of privatizing education by starving public-sector schools in the name of forcing them to compete.  Ã‚  The Civil Society Network for Public Education in the Americas, a group that brings together South, Central and North American workers in education, notes that in developing countries that apply austerity measures, this system has generally led to the reduction of educational resources for the poorest regions (Knust 2009). Conclusion The MNCs has to face many tribulations in the host countries in the present era of globalised world trade. There are many causes and reasons for the failure of the many global economic programs and the corporations. In focal cause of this failure is the competition or rivalry, profit driven intends, self- interests, and the domination by economic powers. The multinational corporations are the modles of these traits, and they play a key role in sustaining their position through their economic and political influence. The role of MNC plays a significant on the economic formulation of policies and the overall development of the country. The development of the economies and the expansion of the trade has lead to globalization of the university education grow and develop over tall over the globe.