Mode of Entry in India by Foreign Investors

foreign capital implies funds that are raised from foreign investors for investment purposes in development projects of a host country. Any investment flowing from one country to another country is foreign investment. This concept came in 1950s when many capital deficient countries resorted to foreign capital as a primary means to achieve rapid economic growth. Foreign capital can enter the country in the form of: 1. Direct Investment 2. Indirect Investment Also, with time the concept of foreign aid came up. It is nothing but movement of money from one country to another in the form of aid for development.It flows to developing countries in the form of loans, assistance and outright grants from various governmental and international organizations ADVANTAGES OF FOREIGN CAPITAL 1. It raises the level of investment – Brings in more industries and technology to the country and gives boost to the employment, production and economy of the host country. 2. Helps in upgradation of tec hnology – Foreign investment brings with it the technological knowledge while transferring machinery and equipment to developing countries. 3.Exploitation of natural resources – A number of underdeveloped countries process huge mineral resources, which awaits exploitation. These countries themselves do not possess the required technical skill and expertise to accomplish this task. 4. Development of basic economic infrastructure – Underdeveloped or developing countries require a huge capital investment for development of basic economic structure as their domestic capital is often too adequate. 5. Improves export competitiveness – A foreign investment can help the host country to improve its export performance.This is because of increase in the level of efficiency and the standard of product quality. Also, better access to foreign market further improves the export competitiveness. 6. Benefits the consumers with competitive market – Consumers in deve loping countries stand to gain from a foreign investment through new products and improved quality of goods at competitive prices. 7. Generates revenue to the government – The profit generation by a foreign investment in the host country contributes to the corporate tax revenue in the latter. 8.Supplements domestic savings – Less developed countries lack sufficient savings, required for investment in development projects like building economic and social infrastructure. Foreign capital bridges this gap. 9. Employment increases in the host country – As foreign companies come up, they establish their plant in the host country. As a result, employment also increases. DISADVANTAGES OF FOREIGN CAPITAL 1. Countries face severe debt problems – If all the investors who have invested in the host country, pull out their money overnight then the host country comes in debt. 2.Appreciation of real exchange rate occurs – As more foreign investors invest in the c ountry, the demand for the domestic currency rises. This causes appreciation of domestic currency and hence loss of competitiveness of exports as they become costlier. 3. Chances of inflation – Domestic supply of money increases and if this money is not utilized and absorbed in profitable projects then there is an inclination towards inflation. 4. The economy becomes overvalued – As the investors come in, the money in the economy starts flowing causing unnecessary appreciation in foreign currency. 5.Domestic market is affected – When foreign investments compete with the home investments, the profits in the domestic industries fall, thereby leading to a fall in domestic savings. 6. There is less contribution to public revenue – As the corporate taxes are comparatively less because of liberal tax concessions, investment allowances, designed public subsidies and tariff protection that are provided by the host government. ————†”———————————- TYPES OF FOREIGN CAPITAL There are five major types of foreign capital. They are – 1. Foreign Direct  Investment (FDI)It is a process whereby residents of the source country acquires the ownership of assets for the purpose of controlling the production, distribution and other activities of a firm in the host country. The foreign investors are free to invest in India, except few sectors/activities, where prior approval from the Reserve Bank of India (‘RBI’) or Foreign Investment Promotion Board (‘FIPB’) would be required. The followings activities/sectors requires prior approval of FIPB. a. Manufacture of Cigars & Cigarettes of tobacco and manufactured tobacco substitutes b.Manufacture of Electronic aerospace and defence equipments c. Manufacture of items exclusively reserved for Small Scale Sector with more than 24% FDI d. Proposals in which the foreign col laborator has an existing financial / technical collaboration in India in the ‘same’ field e. All proposals falling outside notified sectoral policy. The foreign investors planning to set of business in India have two options, either to set up a separate corporate entity in India, i. e. incorporating an Indian company or through unincorporated entity, i. e. Branch Office of the foreign entity.Incorporation of an Indian company can be possible under the provisions of the Companies Act, 1956. The foreign investors can invest in such Indian company up to 100% of capital depending upon sectoral guidelines prescribed by the Government of India. Under Second Option, a foreign company are allowed to operate in India, subject to conditions and activities permitted under the Foreign Exchange Management (Establishment in India of Branch Office of other place of business) Regulations, 2000, through setting up either of the followings: Liaison Office/Representative Office; Project Office; or Branch Office.While making entry into any nation, innumerable clearances are to be obtained at the state and district levels. Also, a number of practical hurdles, such as infrastructure bottlenecks have to be overcome. Also, the exit is difficult, in the sense that, archaic labour laws, such as the Industrial Disputes Act, prohibit the closure of any company. ADVANTAGES OF FDI Below mentioned are some of the advantages of FDI. They are very similar to that of foreign capital. 1. Growth and employment 2. Technology and know how 3. Access to goods and services 4. Fill the savings gap DISADVANTAGES OF FDI . Political lobbying – In the past, there have been many instances in which MNCs have resorted to political lobbying in order to get certain policies and laws implemented in their favor. 2. Exploitation of resources – Exploitation of natural resources of a host country is not a very uncommon phenomenon in the case of FDI. MNCs of other countries have been know n to indiscriminately exploit the resources of host countries in order to get short run gains and profits and have even chosen to ignore the sustainability factors associated with the local communities and local habitat. . Threaten small scale industries – MNCs have large economic and pricing power due to their large sizes. They do not have much problem with regards to financial capital and can hence resort to using advertising which is a costly affair. Also, these companies are global players who have their operations spread across countries and have effective supply chains which enable them to have economies of scale which smaller players in the domestic market of the host country cannot compete with.All this results in the MNC having cheaper products and more visibility due to the higher amounts of advertising and have been known to push out smaller industries out of business. 4. Technology – Although, the MNCs have access to new and cutting edge technology, they do not transfer the latest technology to the host country with a fear that their home country may loose its competitive advantage. 2. Foreign Portfolio Investment (FPI) FPI is buying and selling of shares, convertible debentures of Indian companies and units of domestic mutual funds at any of the Indian stock exchanges.FPI are done by foreign investors in shares, bonds and equity market. It brings foreign exchange to the country but it has its own problems as it brings volatile money to the country. Foreign Institutional Investors (FIIs) can make portfolio investments. FIIs are allowed to invest in the primary and secondary capital markets in India under the Portfolio Investment Scheme 3. Foreign Institutional Investment (FII) FII is defined as an institution established or incorporated outside India for making investment in Indian securities.They may invest in securities traded in both the primary and secondary markets. These securities include shares, debentures, and units of mutual funds Foreign Institutional Investments are the investments by foreign financial institutes like banks, insurance companies, pension funds, mutual funds etc. These are mostly in Govt. securities which are quite secure. The entry and exit are very simple through FII’s. FIIs must register themselves with the Securities and Exchange Board of India (SEBI) and comply with the exchange control regulations of RBI. 4. External Commercial Borrowings (ECB)ECB refer to commercial loans (in the form of bank loans, buyers’ credit, suppliers’ credit, securitised instruments) availed from non-resident lenders with minimum average maturity of 3 years. ECB for investment in real sector – industrial sector, especially infrastructure sector-in India, are under Automatic Route. ECB in the following requires approval of the government : a. Activities/items that require an Industrial Licence b. Proposals in which the foreign collaborator has an existing venture/tie up in Indi a c. Proposals for acquisition of shares in an existing Indian company in some cases. . Depository Receipts (ADR/GDR) ADR is adopted by many large and well respected companies from India to raise funds from American Markets. If any Indian Company has issued ADRs in the American market wishes to further extend it to other developed and advanced countries such as Europe, then they can sell these ADRs to the public of Europe and the same would be named as GDR. ADRs and GDRs are not for investors in India – they can invest directly in the shares of various Indian companies. They are an excellent means of investment for NRIs and foreign nationals wanting to invest in India.By buying these, they can invest directly in Indian companies without going through the hassle of understanding the rules and working of the Indian financial market – since ADRs and GDRs are traded like any other stock. NRIs and foreigners can buy these using their regular equity trading accounts.  Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€- ROUTES OF ENTRY There are majorly two routes for entry in India – 1. Automatic Route : The route wherein no government approval is required for the investors. As a reference, FDI up to 100% is allowed in all activities/sectors. 2.Approval Route : The route wherein Government approval is required. This is done by either RBI or FIPB. Apart, from two major classifications. There can also be other classification also as shown below – 1. As a foreign company through a Liaison Office/ Representative Office, Project Office or a Branch Office. 2. As an Indian company through a Joint Venture or a Wholly Owned Subsidiary. LIAISON OFFICE / REPRESENTATIVE OFFICE Foreign corporations/entities are permitted to open liaison offices/representative offices in India for undertaking liaison activities on their behalf. Approval from RBI is needed.No fees, commission o r remuneration can be charged by the Indian liaison office. Liaison office cannot directly or indirectly undertake any trading, commercial or manufacturing activity and therefore, cannot earn any income in India. Its role is limited – 1. to representing the parent company/group companies in India 2. promoting export/import from/to India 3. promoting collaborations between parent company and companies in India 4. collecting information about possible market opportunities and providing information about the company and its products to prospective Indian customers.PROJECT OFFICE A foreign corporation, which has secured a contract from an Indian company to execute a project in India, is allowed to establish a project office in India without obtaining prior permission from RBI. Such offices cannot undertake or carry on any activity other than the activity relating to the execution of the project. The foreign corporation which sets up such a project office is required to furnish a prescribed report to the concerned regional office of RBI under whose jurisdiction the project office is set up.BRANCH OFFICE Foreign corporations/entities engaged in manufacturing and trading activities abroad are allowed to set up branch offices in India. The branch office can carry the same activities as the ones carried on by the foreign corporation overseas except that it cannot carry manufacturing activity on its own (sub-contracting is permitted). It can also stock & sell products in India and is permitted to acquire immovable property necessary or incidental to carrying on activities permitted by RBI. Green field investment:-A form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. It occurs when multinational corporations enter into devolping countries to build new factories. Advantages:- Firm can build the subsidiary it wants. Relatively easily to establish operating r outines. New jobs are created in the local market. Disadvantages:- Faces competition before it is set up Time consuming research has to be carried out before hand. Emerging markets might be unstable, hence leading to extra costs & time consumption. Lengthy process from scratchBrown field investment:- The purchasing of an existing production or business facility by companies or governmental agencies for the purpose of starting new product or service production activity. This type of investment does not involved the new construction of plant operation facility. It is also called merger and acquisition. Advantages:- Less time consuming & quick to execute. Less risky as compared to greenfield. Immediate grab of market share. Reduce competition by taking over rival. The investor can bank on the existing goodwill of the acquired business. Disadvantages:- Not always successful.Cultural clash reducing effectiveness. Some workers are laid off, this affects motivational levels of present work ers JOINT VENTURE The cooperation of two or more individuals or businesses in which each agrees to share profit, loss and control in a specific enterprise. A Joint venture is a business agreement in which parties agree to develop, a new entity and new assets by contributing equity. The cooperation of two or more individuals or businesses in which each agrees to share profit, loss and control in a specific enterprise. Forming a joint venture is a good way for companies to partner without having to merge.JV’S are typically taxed as a partnership. Advantages:- Help the company to grow in those areas where the company does not have any expertise and would have failed if it was not for joint venture. Joint venture can help the company in reducing the risks which are associated with starting a new business. It results in better utilization of the resources which company has at its disposal. Disadvantages:- It does not give the management of the company control because the decisions are taken by both the companies and therefore it can create problems if both companies do not agree on some issues.It is difficult to integrate resources of companies entering into joint ventures WHOLLY – OWNED SUBSIDIARY A Foreign corporation can set up its subsidiary company either in the form of a private limited company or as a public limited company in India. A company in India is required to be incorporated under The Companies Act, 1956. In comparison with the branch office and liaison office, a subsidiary company provides maximum flexibility for conducting business in India. It can also undertake manufacturing activities in India

English 79 Essay on Role Models

English 79 Role Models Some humans feel that â€Å"people such as entertainers and athletes are ideal role models for young people. † I disagree with that. In fact, I feel the opposite is true. I have seen many cases where young people end up in all sorts of trouble because they where imitating something that an entertainer or athlete did. People such as entertainers and athletes are poor role models for young people. To begin with, entertainers and athletes usually live immoral lives. Even if their mouths are not polluted with foul language, their actions are unwholesome.An example who comes to mind is Barry Bonds, who took drugs to improve his sports performance. Other athletes take drugs to improve their physical appearance. This is a horrible example for young people. Similarly, many entertainers they too are morally unclean. It seems like every other day I hear about an entertainer who has a drug or alcohol problem. You can read about all of their slip-ups in the newspape r. Their various problems are also portrayed by the media. Sometimes movies are made about their addictions. Songs have been written about their very risque lifestyles.Both of these cases prove that athletes and entertainers usually live immoral lives. Moreover, entertainers and athletes usually do not have a satisfying, nor life-long career. They may become outdated or out of style, or they may get hurt. For instance, entertainers usually don’t have a long career, because they get replaced. A younger generation is brought into the spot light, and the older generation is pushed out of the spot light. Similarly trends change so frequently, that what was once popular before is now out of style. With that comes the challenge of pleasing people’s demand for the newest, and the best.All of that would make me want to end my career too. Likewise, athletes face numerous physical problems causing harm to their bodies. Many break bones, or injure themselves beyond the point of r epair. Often an athlete retires at an early age permanently injured and severely crippled. Just think about Bo Jackson, who had to give up his football and baseball careers because he injured his hip while playing. As shown by these two examples, entertainers and athletes usually don’t have a satisfying, life-long career. Lastly, entertainers and athletes do not live in the â€Å"real† world.They are not in touch with reality and live extremely extravagant lives. For example, you can look at almost all of the athlete’s homes, and you find not just normal houses, but plush mansions. Their incredibly large homes house only a few people. Most require the best of the best in everything. Many people can’t even afford to eat, yet athletes chow down on Kobe beef and caviar. How can somebody actually spend so much money on things that really are not necessary? Finally, entertainers and athletes do not receive repercussions for their bad actions.If caught driving under the influence, they rarely spend one night in jail. I have seen so many court cases where a â€Å"star† was merely given a warning. Had they been a â€Å"normal† person they would have gone straight to jail. Entertainers must have a get out of jail free card, or something. Not only are they endangering themselves, but also everyone around them. Judges just don’t pay any attention to that. Look at Jack Nicholson, who was caught driving while heavily intoxicated; he only had to pay a very small fee. Entertainers are let off the hook way too easily, and athletes have too much money to spend.In these instances it is obvious that entertainers and athletes do not live in the â€Å"real† world. As you can see, entertainers and athletes are poor role models for young people. With all of the evidence brought forth, how on earth could they be a good role model for anyone? Entertainers and athletes usually live immoral lives and they do not have a satisfying, or life-long career. Also, they are not in touch with the â€Å"real† world. Unfortunately, many people still believe that athletes and entertainers are good role models for young people.

MIS COMPARISON Coursework Example | Topics and Well Written Essays - 1000 words

MIS COMPARISON - Coursework Example The need and demand of the Management Information System (MIS) for Human Resource in Tesco is increased due to the increasing focus of management on Human Resource (HR) in the multinational organizations. The functionality of Management Information System (MIS) for Human Resource provides services in a layered form. Initially, the core and basic activities of Human Recourse Management (HRM) are covered under the services given by Management Information System for Human Resource include as the automated attendance system, and maintenance of employee’s record in Tesco. The tools, procedures and software’s are provided by MIS system. MIS is minimizes some issues of traditional management work of Human Resource. Tripathi (2011) stated that function of sales and marketing was a significant part of growth for national as well as multinational organizations. Therefore, use of Management Information System (MIS) for Sales and marketing obviously results positively for the manag ement of sales processes at Apple Inc. According to Zhang and Zhang (2007) MIS used for sales reduced the stages involved in sales process as compared to a traditional method of sales contained. The MIS includes features like sales analysis, decision predictions, effective for sales managers to handle sales, and online e- marketing and e-sales. The system covers the financial activities regarding the sales management. The system provides ease to e-clients and the labor cost of sales. The Management Information System (MIS) for Human Resource in Tesco totally depends upon the information systems. The information system is used to manage the internal operations and also helps in decision making process in the organization regarding the management activities of Human Resource. The information system is a collection of hardware, software, network, internet and specific tools or software’s working to facilitate the user (Tripathi,

An Analysis of the History and Development of Hip Hop Dancing (from Research Paper

An Analysis of the History and Development of Hip Hop Dancing (from late 1960's-1970s) - Research Paper Example The dances majorly consisted of the break dance, rapping and funk styles including locking and popping. It was initiated by African Americans. In fact, the word â€Å"hip† was used by the African Americans way before the evolution of the music and dance. It was performed along the streets, and there were well known promoters of the dance. In giving the whole picture a better view, it involved a lot of creativity that was accompanied by listening to the hip hop music. The manner in which it was carried out in most cases involved getting serious about the dancing which was rather hard to do. At the end of sufficient training, one got ready to enter the circle of performance and do lots of footwork including creating witty things and returning to the outside of the circle. This research also brings it clearly that the development of this dance was in an underground form that had lots of social significance. It, however, was not much appreciated by the outsiders until the media br ought it to the surface. In facilitating this, there was a need for other elements such as mcing, djing driven by the urban culture. Brake dancing was the most known aspect of the dance and was known as b-boying. Introduction Hip hop dance appeared in the United States. It was majorly done by the black Americans and some Latin Americans. It is a fact that the dance was not highly recognized by most people until the media machinery started highlighting it. Among these dances, there was the locking which was begun back in the 1970s. This was associated by Don Campbellock from Los Angels. He attempted to perform and learn how to dance in parties and more specifically, he did the â€Å"funky chicken† at this point in time. B-boying dance was another dancing style of hip hop that featured in these times. More precisely, it took place in 1972 in block parties. There was also the up rocking in the New York streets in the 1960s. This was followed by top rocking. Another style that re quired lots of techniques was the ground rocking. There was no basic training on the dance during these times, but individuals who had instincts for natural movement brought it to the streets. Break dancing was also well known among the dancers who performed it. A majority of the promoters of the dance was known, and most of them were good at the performance. In the early times, that is, 1960s to 1970s, the dance there were competitions held mostly along the streets. Many dances established their names as some of the most well known hip hop dancers across east cost and west cost. Movies that highlighted these dancing styles also promoted the dance and new moves. Theoretical perspective It is assumed that hip-hop is an African dance that developed in the States. This, however, is a misconception baring the fact that its origin also encompasses of Latina Americans. It may also be thought that the dancing style is only associated with the young generation and that it must have begun in the recent past. This research finding nullifies this thinking and gives a clear understanding of the places and year of origin of it. The publication sectors play a big role in ensuring the appreciation of any innovations in the music industry at large. Dance is the most benefited art in this field, especially in the audiovisual means of publication. Hop has always been associated with the ghettos in the United States; this is not a misdirected understanding as its origin, on a wide view, lies there. There are common figures that were associated with t

Assignment Example | Topics and Well Written Essays - 250 words - 232

Assignment Example At the same time, they wanted a departmental reward whereby their departments would be praised for the attainment of the overall aim that the hotel wanted to achieve. The managers initially thought that there was going to be a solution to the problem they were facing my making the employees wear their nametags. In the assumption of the managers, the nametags would make the employees look sharp and professional. As the hotel wanted to raise its status, such a universal practice would help them attain the coveted status. They also thought that the nametags would help them identify employees whose efforts were not helping the company so these could be punished. As the ultimate goal of the managers was to engage in a departmental blame game, the motivation of the employees not to wear the nametags came from the fact that the wanted to be scapegoats. As much as the managers were finding ways to blame the employee, the employees were also finding ways to stop this from happening. The employees were also worried that there was not telepathy between the employees and the managers that would make it possible for them to get assistance from the managers. To find the real problem, a number of Power of Pause practices were used. In the first place, there was an opportunity given to the staff to explain their point. This was a very important practice to avoid the assumptions being used to determine what the problem was. What is more, there was a very healthy interaction that was free from blames and excessive complains. Even where the points of the staff were not clear, they were given the opportunity to express themselves well. The employees were willing to talk about their fears because they thought that expressing their opinions would help solve the problem. What is more, the employees were scared that the propaganda agenda in place could actually have an impact on them and thus

The British involvement in the trade of slaves Essay

The British involvement in the trade of slaves - Essay Example The British involvement in the trade of slaves Various British colonies include the thirteen states of the United States of America that were mainly on the eastern side, Canada, India, Eastern Africa, South Africa, and Australia. All this different colonies had a contribution to make in the development of slavery. Some colonies were the source of the slaves, while others especially in the areas that had major industrial revolution were the destinations of the slaves. An analysis of the participation of different British colonies reveals how they participated in the development of slavery and how they affected its development. Britain had thirteen colonies in the North America regions that contributed a lot to the development of slavery. This States included Virginia, Massachusetts, Carolinas, Maryland, and Pennsylvania, to mention but a few. This is because the economies of these states were majorly dependent on slavery as a way to get cheap labor to work in the vast plantations of tobacco and cotton. The growth of tobacco had become family based, making the demand of slaves to increase since each homestead that planted tobacco required slaves. Industrialization was also expanding in the thirteen British colonies in the Northern side of America. This influenced the need of more slaves for the purpose of performing the hard labor of constructing the factories and working in the harsh conditions of the factories. One thing that was true about slavery in the British colonies within America is that it had a racial trait attached to it.

The Rhetorical Situation Essay Example | Topics and Well Written Essays - 750 words - 2

The Rhetorical Situation - Essay Example The audience influences the way the author writes, the phrasing of words, and even the genre that will be used. Since the audience influences the direction the writer will have to take, it is essential for the writer to know his audience, and understand them well. All writing is driven by a reason or purpose. There are many reasons that a writer could have for writing, and therefore, it is important for the writer to be clear on why he is writing. Clarity for the purpose of writing will help him structure the writing in a manner that achieves the intended purpose. The expectations of the audience also affect the purposes of writing. Stance is the attitude that the writer has towards the material in the writing. The stance adopted by the writer will shape, and be evident in the tone used. The stance of the writer will influence the perception of the audience on the subject matter. The stance of a writer is indicated by the choice of words in writing. The relationship between the audience and the writer will influence the position taken by the writer. The genre is the type of text that the writer uses. It could be a short story, a poem, or any other literary writing form the author deems appropriate. Each genre will have specific structural requirements that the writer has o adhere to if he is to be effective in his writing. There are some genres that require certain tones, organization, or strategies for them to be effective. In considering the media/design in writing, the writer looks at the route that will be used to reach the audience. The media may be verbal or non-verbal, technologically advanced or remote. Every media will have characteristics that make it distinct, and they have to be followed if the media is to be effective in reaching the audience. The design involves the close look at the elements of the text that might need to be designed.

Survey Essay Example | Topics and Well Written Essays - 500 words - 2

Survey - Essay Example A security survey is an examination and analysis of a business along with assessing the existing security and its importance and deficiencies. A Security survey is a systematic approach of mapping and testing existing security programs and initiatives in a critical manner. Usually, security programs are designed for stakeholders that include employees, customers, government and shareholders. It includes general security and technological security that plays an important role in defining the business approach of an organization. Thus, it is important to know the existing issues and problems pertaining to the security. People concerned with the security programs should be addressed and accordingly issues should be discussed with them to understand the need and importance of conducting the survey. Survey can be conducted through questionnaires or personal interaction in order to assess and analyze the loopholes and benefits of security system. All responses should be recorded in an ethical and transparent manner. It is important to design questionnaires keeping the security objective in mind along with addressing wide arrays of issues and problems pertaining to security. Usually, security surveys are conducted by the security officer but can also be conducted by the outside party in order to have a third party opinion over the existing security systems. The questions should be precise and open ended in nature and should compel respondents to share their views. This would further help in analyzing the garnered opinions and views. It needs to be understood that results of the survey are reported to the management in an informative and logical manner. It should include an introduction of the survey, needs and objectives along with stating the purpose of conducting the survey. A thorough analysis of risks and returns should be included along with mentioning wide arrays of strengths and

Hound of the baskervilles Essay Example for Free

Hound of the baskervilles Essay Conan Doyle writes the text I am studying and the novel is The Hound of the Baskervilles it is a story where a phantom hound is supposedly killing off members of the Baskerville bloodline. So Sir Henry calls upon Sherlock Holmes to investigate along with Watson and hopefully lay the myth to rest forever. In this essay I will describe the characters and look at how Conan Doyle creates suspense + a feeling of mystery in the text and how he describes the environment by using different language. In particular I will be looking at the language used in the sentences, as this is an important part as to how Conan Doyle creates suspense. Watson tells the story in the first person we know this because the story is told by him and his diary also this has already happened making this in the past tense, the events happen in chronological order. Watson describes everything very slowly and in detail up until they chase after the hound, then everything happens very quickly after this. Conan Doyle uses clever wording in his sentences for example: a key turned in the lock and as he passed in there was a curious scuffling from within this creates tension because it makes you fearful of what is in the shadows of the room. This makes you want to read on to find out what happens and what creature lurks inside the abyss. Conan Doyle makes you panic when he introduces the sea of fog gliding across the Grimpen Mire. This causes tension because if sir Henry does not get to them the hound will get him then when the hound leaps out of the fog with burning blue teeth it makes you jump up in your seat. This dissipates the tension and everything turns into adrenaline to kill the hound. You know something scary is going to happen when they cock there pistols ready to shoot what ever comes at them earthly or demonic. Hist cried Holmes and I heard the sharp click of a cocking pistol this shows that they are ready for anything and this builds tension because your eagerly anticipating whatever is going to come out of the fog. Conan Doyle creates tension by making sure that Holmes does not tell lestrade and Watson anything this makes them very annoyed but because of this it creates a lot of suspense and tension in the reader because you do not know what is going on. The Grimpen Mire is described as a dangerous creature crawling across the mire and towards the house and this creates a threatening atmosphere because unless sir Henry gets to them in time then Holmes plans could be thrown into disarray and the hound could kill sir Henry so this creates a tense atmosphere. The Grimpen Mire is described as a huge morass of foul slime filled with bones. Protected by the foul smell of the swamp, which gives off a very sinister smell, which gives it a sinister feel and how cruel Stapleton was. Stapleton had obviously gone slightly mad in his desperate attempts to kill members of the Baskerville bloodline. In conclusion Conan Doyle creates tension by keeping his cards close to his chest up until the very last few moments and this is how he develops tension. Also by describing the scenes and introducing the sinister fog it makes the scene scarier. The tensest bit is when you are waiting for the hound after sir Henry has passed and there are a few heart pounding seconds waiting for the creature. I think that Conan Doyles choice of language and the way he sets out the environment is how he creates tension and that this is why it is so tense in chapter 14 of the Hound of the Baskervilles.

Text Analysis of Hamlet and Man on Fire Essay Example for Free

Text Analysis of Hamlet and Man on Fire Essay Over time Hamlet transfigures from a highly emotional state to a temperament which is extremely methodical and emotionally stale. This mentality leads to a course of self-imposed blockades that ultimately result in the deferment of his revenge. Creasy, contrastingly, begins in an emotionless and detached state, a facade consolidated through his apparent want to die. However, this icy stature is chiseled away by Peta when he is assigned as her bodyguard. Upon Peta’s kidnapping Creasy is enraged, with reason exchanged for an intense and tremendously emotional approach for revenge. Hamlet’s first soliloquy clearly exhibits the magnitude to which his emotions have informed and consumed his thoughts. Even before knowing the reasons behind his state, it is established that Hamlet has a wish to die, a point pushed by the expression of ‘too too solid’ in the opening sentence. This repetition of ‘too’ expresses Hamlet’s dismay at his own permanency, an idea consolidated in the following line with the words ‘thaw’, ‘resolve’ and ‘dew’ contrasting to make a depiction of evanescence. This remarks that he does not wish to live long . Hamlet also shares a rather resentful view of the world and this is represented through the use of decay imagery. When Hamlet depicts ‘how weary, stale, flat and unprofitable’ the world appears to be he wholeheartedly believes that there is no worth in the world and that it possesses things only ‘rank and gross in nature’. Additionally, the use of caesurae in the sentence indicates, in its very nature, the desultory state of Hamlet. Dislocated sentence structure is also an indicative part of enforcing his wildly emotional state. Constant and erratic leaps between ideas in the mind of Hamlet lets us know that he is not thinking methodically or in a way that would be considered steady. This concoction of chopping and changing ideas is easily displayed where Hamlet says ‘like Niobe, all tears: why she, even she—O, God! ’ This depicts how he redirects his thoughts as seemingly new ideas come to mind and this thus adds to the knowledge of Hamlet’s emotionally unpredictable frame of mind. In contrast, Creasy projects a completely different mental picture at the beginning of Man on Fire. He appears as a character that is very much in his right mind and objective of his emotions. This kind of emotionless facade is furthermore evident in Creasy’s unsociable stance when in the presence of Peta. An example of this comes when Peta asks Creasy whether or not he was scared of her to which he provides a very short, blunt reply of ‘I used to be. At first. But not anymore. ’ This dialogue also indicates that Creasy may have social difficulties and by extension is lost in ways of approaching people or at least those he is not familiar with. An obvious inference of this lack of communication is that Creasy is lonely and quite dejected. A view of the world as being hopeless is also taken up by the character and evident when Peta says that ‘there are some good things in the world’ and Creasy replies ‘Oh yeah, like what. ’ In this way the characters of Hamlet and Creasy are similar – sharing a correlating perspective in which the world is of no prospect. An amalgamation of all these elements lead to an inevitable emotional trough for Creasy; in which he falls into total despondency. This state is characterized through the song ‘Blue Bayou’ which Creasy plays while drinking in the night. In this scene he becomes suicidal as he is assaulted by images and thoughts from which he cannot escape; leading the song to becoming fragmented pieces of non-diagetic sound. This fragmentation and seeming discord is emphasized by Scott who employs a magnitude of frantic panning and rapid cut shots in order to display the breakdown in Creasy’s mental state. When the scene nears its end, Creasy attempts to take his life with a gun that inevitably fails to deliver the life ending bullet. At this point, a non-diagetic and mellow piano starts that indicates a kind of relief to the perplexity of the previous moments. The contemplation of suicide is comparatively explored by Hamlet in the third act. Here, he questions, quite simplistically, his existence with ‘to be, or not to be. ’ From this point, Hamlet appears to ponder reasons for living or ying by asking whether it is ‘nobler in the mind to suffer the slings and arrows of outrageous fortune, or to take arms against a sea of troubles. ’ This analysis indicates that Hamlet has devolved from his highly emotional state to a temperament that is extremely methodical in nature, even when considering the ending of his own life. The use of the word ‘thus’ also indicates a fluent transition from one idea to another. Throughout the soliloquy Hamlet appears to be in search of reasons not to die rather than does that consolidate suicide. The most prominent idea being the ‘dread of something after death’. Evidence of this is most prominent when Hamlet states ‘ to die, to sleep;†¦for in that sleep of death what dreams may come’. This indicates fully his fear of life after death and perhaps a kind of retribution for his sins or that of which he will commit in ways of exacting revenge on Claudius. The analytical disposition assumed by Hamlet and his inherent rejection of passion ultimately leads to his downfall and thus, this is his tragic flaw. In contrast to this, Creasy establishes a strong bond of friendship with Peta and, in the wake of her kidnapping, transforms himself into an unstoppable and passionate force for revenge. The most evidential dialogue for this newly ignited passion comes when Creasy says ‘I’m gonna kill ‘em. Anyone that was involved. Anybody who profited from it. Anybody who opens their eyes at me. ’ These short sentences are indicative of his straight-to-the-point nature and disregard for excessive analytical thinking. Additionally, Tony Scott settles his use of cut shots and selects longer scenes to focus on Creasy’s intent for revenge and the fact that no external forces will impede his pursuit. Subtitles are also employed by Scott to emphasize certain key aspects of scenes and additional bolding of words within the subtitles makes features prominent still further. In all, Creasy’s heightened passion to rescue Peta leads to his downfall and this can be acknowledged as his tragic flaw. In conclusion, Creasy and Hamlet are two contradictory characters in terms of their mindsets over the course of their respective texts. Creasy in Man on Fire evolves for an icy, stale and emotionally objective state to a mentality of passion and purpose. A variety of cinematic techniques are employed to depict both demeanors of Creasy including cut shots, subtitles and diagetic and non-diagetic sound. Hamlet, alternatively, begins in a consumed state of passion that declines to a methodical manner involving enormous analytical evaluation. The final state of both characters are inevitably their tragic flaws and equally lead to their demise -fulfilling their roles as tragic heroes.

History of the Inca Religion

History of the Inca Religion Perhaps one of the most fascinating and awe inspiring religions in human history is that of the Incas.  Countless people have been captivated by this religion over many generations.  Many books have been written and movies made to capture the essence of this religion.  After reading about this paper, it will be clear how incredible these people and their religion was. To first understand the religion of the Incas, you must first know the history of the people.  The Incan civilization originated from a tribe in the Cuzco area of Peru.  The Incas were one of the largest, richest and most powerful empires before pre-Columbian America as their territory covered a massive area at its peak.  The Inca Empire crossed many boundaries as it conquered many countries and areas through a variety of means:  from conquest to peaceful assimilation.  This lead to the Inca Empire gaining a large part of South America. By its height in the 1520s, the Inca Empire stretched 3,500 miles from present day Argentina, Bolivia, Chile, Columbia, Ecuador to the area in which the Incas originated, Peru.  It was the largest empire on earth at the time.  After each area had been conquered, the Incas would take control of the area by imposing their language and organizational skills on the people.  This would be followed by building improvements to the area such a s creating roads for the people to travel on, irrigation canals, stone buildings and fortresses.  The Incas had astonishing and technologically advanced masonry techniques for their time.  The estimated population of the Inca Empire at its peak was around twenty million people with the official language being Quechua. To control such a huge area, the Incas built roads, including both mountainous and coastal routes.  The Inca Empire was ruled with efficiency in part because of a superb highway system that included intermittently paved roads up to 24 feet wide, tunnels, bridges, and stepped pathways cut into living rock. The principal highland road atop the spine of the Andes, ran 3,450 miles from the Colombia-Ecuador border to central Chile. Lateral roads linked it to the coastal highway. Ironically, the very roadways that made it possible for the Inca to control their vast empire, rapidly moving an army to quell a rebellion, were also the avenue of the empires downfall, giving the Spanish conquistadors under Pizarro direct access to the heart of the kingdom.  One existing part of the road between Cusco and the palace of Machu Picchu is called the Inca Trail.  The amount of control exercised by Cusco over the rest of the empire varied from place to place.  Tribute paid to the Inca rulers ca me from farmers of cotton, potatoes, and maize, herders of alpacas and llamas, and craft specialists who made polychrome pottery, brewed beer from maize, wove fine wool tapestries, and made wooden, stone, and gold, silver and copper objects.  Inca cities were as large as those of Europe, but more orderly and by all accounts much cleaner and more pleasant places in which to live (McEwan, 56). The Inca were organized along a complex hierarchical and hereditary lineage system called the Ayllu system. Ayllus ranged in size from a few hundred to tens of thousands of people, and they governed access to such things as land, political roles, marriage, and ritual ceremonies. Among other important duties, Ayllus took maintenance and ceremonial roles involving the preservation and care of honored mummies of the ancestors of their communities.  In Inca social structure, the ruler Sapa Inca, and his wives, the Coyas, had supreme control over the empire. The High Priest and the Army Commander in Chief were next. Then came the Four Apus, the regional army commanders. Next, were temple priests, architects, administrators and army generals.  After them, were artisans, musicians, army captains and the quipucamayoc, the Incan accountants. At the bottom were sorcerers, farmers, herding families and conscripts. The only written records about the Inca that we can read today are documents from the Spanish conquistadors of Francisco Pizarro.  Records were kept by the Inca in the form of knotted strings called quipu.  The Spanish reported that historical records, particularly the deeds of the rulers, were sung, chanted, and painted on wooden tablets as well. In the Inca Empirec several polytheistic religions were practiced by its different people. Most religions had common traits such as the existence of a Pachamama and Viracocha. The Incas controlled religion to give the empire cohesion by having conquered peoples add the Inca deities to their pantheon.  Inca deities occupied the three realms:  Hanan Pacha, the celestial realm in the sky, Uku Pacha, the inner earth, and Cay Pacha, the outer earth where humans live.  The most important deities of Hanan Pacha were Inti, the sun god, and Mama Quilla, the moon goddess. Inti Raymi was the festival of the sun god, the largest and most important Inca festival. The lightning deity also resided in Hanan Pacha.  Uku Pacha was the domain of Pachamama, the Earth mother, who is universal to Andean mythologies. Kanopa was the God of Pregnancy.  Con-Tici Viracocha Pachayachachic, The first god, creator of the three realms and their inhabitants, was also the father of Inti. Many ancient Andean peoples traced their origins to ancestral deities. Multiple Ayllus could share similar ancestral origins. The Inca claimed descent from the Sun and the Moon, their Father and Mother. Many Ayllus claimed descent from early proto-humans that emerged from local sites in nature, called Pacarinas.  The earliest ancestors of the Inca were known as Ayar, the first of which was Manco Capac or Ayar Manco. Inca mythology tells of his travels, in which he and the Ayar shaped and marked the land and introduced the cultivation of maize. A prominent theme in Inca mythology is the duality of the Cosmos. The realms were separated into the upper and lower realms, the Hanan Pacha and the Ukhu Pacha and Hurin Pacha. Hanan Pacha, the upper world, consisted of the deities of the sun, moon, stars, rainbow, and lightning.  Ukhu Pacha and Hurin Pacha were the realms of Pachamama, the earth mother, and the ancestors and heroes of the Inca or other Ayllus. Kay Pacha, the realm of the outer earth where humans resided, was viewed as an intermediary realm between Hanan Pacha and Ukhu Pacha. The realms were represented by the condor (upper world), puma (outer earth) and snake (inner earth). Huacas were widespread around the Inca Empire. Huacas were deific entities that resided in natural objects such as mountains, boulders, streams, battle fields, other meeting places, and any type of place that was connected with past Incan rulers. Huacas could also be inanimate objects such as pottery that were believed to be vessels carrying deities. Spiritual leaders in a community would use prayer and offerings to communicate with a Huaca for advice or assistance. Human sacrifice was a part of Incan rituals.  Priests presided over sacrifices, an essential part of many rituals and ceremonies.  The majority of the sacrifices involved animals, such as llamas or guinea pigs.  However, in times of disaster or at very sacred ceremonies, a woman or a child might be sacrificed to the gods.  These people would be given Chicha, a thick beer made from fermented corn to drink in golden goblets while the priest sang songs of their virtue before they were strangled.  The bodies of the sacrificed were then buried in a cocoon of fine textiles and surrounded by gold and silver statues, bags of corn and other offerings. The ancient Inca chose children as young as 6, but also as old as 15, fattened them up for a year and sent them on a sacrifice pilgrimage (Inca Human Sacrifices).  The Incan people thought it was an honor to die for an offering.  The Incas also used divination. They used it to inform people in the city of social events, predict battle outcomes, and ask for intervention. The Inca were a deeply religious people. They feared that evil would come at any time. Sorcerors held positions in society as protectors from the spirits. They also believed in reincarnation, saving their nail clippings, hair cuttings and teeth in case the returning spirit needed them.  The religious and societal center of Inca life was contained in the middle of the sprawling fortress known as Sacsahuaman. Here was located Cuzco, The Naval of the World the home of the Inca Lord and site of the sacred Temple of the Sun. At such a place the immense wealth of the Inca was clear with gold and silver decorating every edifice. The secret of Inca wealth was the Mita. This was a labor program imposed upon every Inca by the Inca ruler. Since it only took about 65 days a year for a family to farm for its own needs, the rest of the time was devoted to working on Temple-owned fields, building bridges, roads, temples, and terraces, or extracting gold and silver from the mines. The work was con trolled through chiefs of thousands, hundreds and tens. Ancestor worship was a central part of Incan theology.  The souls of the dead played a protective role in the lives of their descendants.  The bodies of ancestors were mummified and entombed.  Often they were buried with their most prized possessions, women, servants, weapons, and ornaments in addition to an abundance of food and Chicha. Some groups of Incas placed the deceased on a large carved stone where they were mourned before burial. In some areas, the dead were sewn into fresh llama-hide and kept at their familys home.  Descendants of the deceased would regularly visit the tombs of their loved ones in order to bring them food and precious goods.  Mummies of dead rulers were the holiest Huacas in the empire.  They were treated as if they were still alive: continuing to own the property they had when alive, eating with their descendants and each other, and enjoying important ceremonies.  They were also considered to be oracles and were therefore consulted on a regu lar basis. This information listed in this paper is just but a taste of the rich history of these people and their religion. After reading this, it is clear why they are such a fascinating people and why they have been studied for so many years Works Cited/Bibliography Cobo, BernabeÃÅ' , and Roland Hamilton. Inca Religion and Customs. Austin: U of Texas, 1990. Print. Conrad, Geoffrey W., and Arthur Andrew. Demarest. Religion and Empire: The Dynamics of Aztec and Inca Expansionism. Cambridge: Cambridge UP, 1984. Print. McEwan, Gordon Francis. The Incas: New Perspectives. Santa Barbara, CA: ABC-CLIO, 2006. Print. Anitei, Stefan. Inca Human Sacrifices. Softpedia. N.p., 20 Feb. 2008. Web. 28 Oct. 2014.

Let Gays Marry and Leave Marriage Alone Essay -- Andrew Sullivan Willi

I will summarize some of the key points from the essay, Let Gays Marry, by Andrew Sullivan, and the essay, Leave Marriage Alone, by William Bennett. Some of these main points are taken from mutual beliefs of both authors and others are derived from the opposing opinions of the two. The first summary of Andrew Sullivan’s essay is a reflection of Andrew Sullivan’s stance of the issue. The original essay was in favor of allowing same sex marriage in America. My summary will dictate some of the arguments that I found to be the most persuasive and important to Sullivan’s case. The second summary is of Bennett’s essay, Leave Marriage Alone. I will, again, try to point out the most influential pieces of argument in the essay. Finally, I hope to synthesize these two essays, and expose some of the similarities and arguments between the two. In the synthesis, I hope to provide an incite into some of the basic ideals presented from both sides of the issue. Andrew Sullivan states his thesis in the first paragraph of his essay entitled, Let Gays Marry. â€Å"They are citizens, entitled, like everyone else, to equal protection -no special rights, but simple equality†(25). Sullivan is referring to a supreme court declaration, stating that homosexuals are no longer separate from the general public in America. The decision states that gay and lesbian couples have the same rights as every other American citizen. With the new openness to the gay and lesbian lifestyle, there is no longer a need for homosexuals to feel like a separate entity from society. Based on this idea, advocates of gay and lesbian marriage are campaigning towards the right of same sex unions, recognized by law. Andrew Sullivan argues that many homosexuals... ...des of this argument. Bennett and Sullivan both face the same fears and obstacles in their beliefs. Allowing same sex couples to marry would broaden the definition of marriage, and aid in the gaining of equality for the homosexual community in America. They are both in opposition to each other, but they both agree that America is a diverse and tolerant nation. Neither of them deny that in America everyone has rights and there exist certain, respected, and revered institutions. Bennett and Sullivan are concerned with the result of giving up a traditional way of looking at such an institution as marriage, against the right to this institution for every person in America. Works Cited Let Gays Marry, by Andrew Sullivan http://faculty.mc3.edu/barmstro/sullivan.html Leave Marriage Alone, by William Bennett http://faculty.mc3.edu/barmstro/sullivan.html

Classifying Rocks Essay -- Geology Geological Rock Essays Papers

Classifying Rocks   Ã‚  Ã‚  Ã‚  Ã‚  Rocks are classified to make it easier on people to identify them in the future. This can be done by a numerous amount of ways. Each rock type has their own specific ways, but there are two distinct characteristics that apply to all. These are texture and composition. These two, along with many others helps to classify igneous, sedimentary, and metamorphic rocks.   Ã‚  Ã‚  Ã‚  Ã‚  Igneous rocks are classified first by texture. This is broken down mainly into grain size. First there are intrusive, or plutonic igneous rocks. These types of rocks cool within the crust and forms large, visible crystals. The opposite would be extrusive, or volcanic rocks. These cool at the surface rapidly, forming small grains. A combination of the two would be porphyritic, large grains in an aphanitic, or extrusive matrix. Secondly, composition is used to classify igneous rocks. There are four types, ultramafic, mafic, intermediate, and felsic. Ultramafic rocks are very dark and contain and extreme amount of iron and magnesium. Mafic rocks are also dark in color; they too contain high iron and magnesium amounts. An example would be olivine, or pyroxene. Intermediate igneous rocks are made from silica and plagioclase. They tend to be grays and browns in color. Finally, felsic socks are light in color and contains high amounts of silica. Quartz and potassium feld spar are examples of felsic igneous rocks. Other types of rocks are classified similarly.   Ã‚  Ã‚  Ã‚  Ã‚  Sedimentary rocks form...

Globalization is only for Developed Countries Essay

In the 1990s, the term globalization gained the popularity. At that time, globalization had become phenomena with an aura of an elemental force, almost similar to that of time and gravity. In simple words Globalization means that the same products will be available in all the countries of the world. It also means economic integration and a world united by the web. This glorious ideal made us think that if globalization would stay on with all its perks with falling trade barriers, leaving countries batter off economically and that it will reduce the widening gap between the rich and the poor. It was believed that the removal of the barriers to trade and foreign investment would result in a dynamic change in the way a company anywhere in the world would do business. It was hoped that the integration would prove beneficial to all. In the 1990s the iron curtain disappeared and trade barriers started falling, the gifts of several rounds of WTO, the Western and Japanese entrepreneurs started looking far beyond there borders for highly beneficial deals, cheap labor new markets and a very big lot of new customers. Nobel Laureate, Stiglitz (2002) rightly interpreted the situations of developing countries in his illustrative work Globalization and Its Discontents. He says; â€Å"Small developing countries are like small boats. Rapid capital market liberalization, in the manner pushed by the IMF, amounted to setting them off on a voyage on a rough sea, before the holes in their hulls have been repaired, before the captain has received training, before life vests have been put on board. Even in the best of circumstances, there was a high likelihood that they would be overturned when they were hit broadside by a big wave (p. 17). † With the end of World War II globalization started taking shape in a big way. In 1975, there were still only 7000 MNCs compared to more than 60000 today. A maddening race for going global began from opening up a two-man sales office to chalking out a countrywide network. Companies had to be big and they had to be universal. By the 1990s no one was alien to the charms of the phenomenon called globalization. The intellects of the world-entrepreneurs, economists, celebrities and politicians traveled around the world to tell us how small the world was getting. We were told to think globally and act locally. However, soon the reality dawned. The developed nations have discarded the moth-eaten policy and adopted an open-shutter strategy in coping with the developing nations. In the past they donned an apologetic camouflage and devised subtle and under-the-counter means to bring the developing countries round to their point of view, they at least acknowledged their sensitivities and treated them as members, no matter how low-grade, of the homo sapiens species. But now they have thrown all pretence to the winds and, without mincing words, dictated their terms to the developing world. Even Kipling had the decency to spell out the Western concern for the ‘uncivilized’ people of the third world by treating them as ‘the white man’s burden’. He was deeply committed to their improvement and had probably hatched some fantastic schemes to pull them out of their ‘savage’ state. But the present day reformers make no bones about it. They shamelessly believe that the condition of the third world countries is simply irretrievable and no amount of logic and persuasion can help them out of their ugly predicament. Therefore they now rely on dictation as a prescription for their conversation and have imposed their brand of progress and prosperity spineless people of the third world. And they are least bothered about their preferences and priorities.

Tutorial solutions

Customer's business name, address and contact details Type of information (economic / other) Other – details ensure business exists and invoices can be posted to the correct address . Years customer has been in this business Other – establishes track record and history 3. Total assets and estimates of values of assets in the business Economic – establishes size of asset base of business 4. Total liabilities (total commitments) Economic – establishes how much the business currently owes others to assess the extent of claims against assets 5.Profits of the business for the most recent and previous periods Economic – used to assess whether the business generates sufficient profits to cover the payments that will have to be made of their account 6. Credit references Other – enables Ashley to follow up with other businesses the customer already has accounts with, to assess whether the customer has paid their accounts in time and in full 7.Details Of any collateral or security that can be provided should the customer default on their payments Economic and other – Ashley will want to ensure that the business will be able to recover any unpaid amounts by claiming from a third party or having a claim over the assets of the business Page 2 of 19 Exercise 1. 7 Factors in making a government decision Consult the relevant business journal or newspaper article and identify the acts of your case involving an important government decision. Identify the key government decision involved.Discuss the impact of the decision and its relevance to the press and community. Factors to be taken into account in arriving at a government decision include: 2. 3. 4. 5. 6. 8. 9. 10. 11. 12. 13. 14. The nature of the government decision. The government policy dictating the decision. The political impact of the decision. Identifying all parties affected by the government decision. Identifying all the stakeholders (I. E. Parties to which the decisi on will have a positive or negative impact). Identifying any particular lobby or special interest groups involved with the Issue.Identifying the available funding or resources available for the government decision. How is the government initiative to be funded? Identifying the cost of the initiative. Was the decision made in a consultative manner? Was there much political debate or commentary? Possible gains or losses anticipated to be experienced by the community. Possible alternatives which could have been employed by the government. Was the resultant decision considered to be the most efficient use of community resources? Page 3 of 19 Exercise 1. Economic decisions made by management Required: Provide examples of economic decisions that the following people would need to make with the use of accounting information: ; A manager in a sales department Of a shoe store ; A factory manager ; The manager of a state cricket team ; The manager of an animal shelter which relies on donation s for funding Manager of a sales department: Decisions about number of staff required, and when the busy times are (for additional staffing); type and quantity of stock to purchase (based on historic sales figures), cost of inventory researched (for deciding on selling prices and specials / discounts / sales during the coming season); average length of time for which stock is held; stock on hand at any point in time (for purposes of re-ordering); latest fashion trends; information about the demographics of the customer base to enable appropriate stock to be held and appropriate prices to be set. Factory manager: Decisions about appropriate factory staff levels; appropriate plant and machinery capacity to run the factory; costs of raw materials, labor and overhead, such as electricity, in order to make decisions bout goods to be manufactured, production mix; costs of occupational health and safety to make decisions about the most cost effective way to achieve compliance.Manager of a state cricket team: Decisions about the selection and costs of players and coaching staff; appropriate playing and training Venues and their location to the centre of the city; sponsorship enticements and entitlements; purchase of appropriate sporting equipment for training and match days. Manager of an animal shelter: Decisions about the cost of collection systems to receive donations and the most appropriate method of obtaining nations; the cost of maintaining animals in the shelter such as food and veterinary costs; overheads such as electricity, insurance and premises; the costs of full-time employment in the shelter, and the management of volunteers. Page 4 of 19 Exercise 1. 10 The small business owner What types of economic decisions would a person wishing to start their own small business be required to make?How could an accountant assist in making these decisions? The following are examples of the types of economic (financial) and non-financial decisions a small business own er would have to make: A clear definition of the product or service that is to be provided (non- financial), and what the business will charge for these products or services (financial) – this will determine the projected or likely income ; How the business will be funded – will the owners put all the money in or will there be other owners or lenders (non-financial and financial)? ; How the business will market its product or service (non-financial), and how much it will cost to do this? Financial) ; Where the business will be located (non-financial), and what the rental cost will be (financial) How much staff will be required, what skills do they need to perform their jobs properly (non-financial), and how much will they be paid (this will have to be benchmark against other businesses in the same industry or using staff with similar skills and experience) ; What equipment or other assets are required to start the business (non- financial), and how will these be acquir ed and at what cost (financial)? ; Will the business be registered for SST? ; What accounting and information systems are required for the business (non-financial and financial)?This should be adequate to provide information o the owners, and accurately capture transactions that take place, (including any SST components thereof) The above are just some examples of decisions that will need to be made by a person wishing to start a business. There are many others, and it should be noted that many decisions have both a financial and non-financial component – it is therefore often difficult to make non-financial decisions without considering the financial implications and impacts of those decisions. Accountants can help small business owners With the selection of an appropriate accounting system, with regulatory' acquirement such as registering for SST, registering a business name, and applying for tax numbers and other tax obligations (such as PAYS) as required – this wil l depend on the size of the business and what staff will hired.They can also assist by providing the financial information and assisting in the drafting of a sound business plan that covers all the likely financial impacts of the decisions to be made. They can provide book-keeping and page 5 of 19 accounting services to maintain accurate financial records for the business and assist in preparing income tax returns, SST returns and other regulatory porting requirements. Accountants can also help a small business owner prepare a budget for the business, forecast cash flow requirements, and make decisions about which assets to purchase and how best to finance them. CHAPTER 2 FINANCIAL STATEMENTS FOR DECISION MAKING DISCUSSION QUESTIONS SOLUTIONS 2. Define the terms, assets, liabilities, and equity. Are these terms related in anyway? If so, how?Assets are defined in the Framework as resources controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. Liabilities are defined in the Framework as present obligations of an entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits. Liabilities require future payments from assets, generally in the form of cash, or the performance of services to cancel them. Equity is the owner's claim to (or the residual interest in) the assets of the entity after deducting all its liabilities. The basic accounting equation (Assets = Liabilities + Equity) indicates the relationship between assets, liabilities and equity.From the equation, the total assets of the entity equal the total claims against those sets by creditors and owners. Creditors' claims take precedence over owners' claims, and owners are seen as the ultimate risk-takers in the entity. Thus, equity is a residual claim on the assets of the entity after liabilities are fully paid, and the basic accounting model whic h expresses this idea clearly is: Assets – Liabilities = Equity 3. A local restaurant is noted for its fine food, as evidenced by the large number of customers. A customer was heard to remark that the secret of the restaurant's success Was its fine chef. Would you regard the chef as an asset of the business? If so, would you include the chef on the balance sheet of the business and at what value?Suggested topics of discussion: Asset definition – â€Å"Assets are resources controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. † Does the chef provide future economic benefits to the entity? Yes. Is the chef controlled by the entity? In Page 6 of 19 many cases, it is evident that he/she could not be controlled by the entity (e. G. He/she can resign when he/she likes, can take sick days). He/she cannot be â€Å"acquired† or â€Å"sold† by the business, I. . They do not have rights to possess him/her. How would you value the chef as an asset? Usually you have some idea of the â€Å"life† of the asset, however, the restaurant would not know how long the chef would be working for them (this argument relates back to controlling the asset). 6.Discuss the significance of the following assumptions in the preparation of an entity financial statements: (a) entity assumption (b) accrual basis assumption (c) going concern assumption (d) period assumption (a) Entity Assumption If the transactions Of an entity are to be recorded, classified and summarized onto financial statements, the accountant must be able to identify clearly the boundaries of the entity being accounted for. Under the accounting entity assumption, the entity is considered a separate entity distinguishable from its owner and from all other entities. It is assumed that each entity controls its assets and incurs its liabilities. The records of assets, liabilities and business activities of the ent ity are kept completely separate from those of the owner of the entity as well as from those of other entities. The accounting entity assumption is important since it leads to the derivation of the accounting equation. ) The Accrual Basis Assumption Under the accrual basis of accounting, the effects of transactions and events are recognized in accounting records when they occur, and not when the cash is received or paid. Hence, financial statements report not only on cash transactions but also on obligations to pay cash in the future and on resources that represent receivables of cash in future. It is argued in the Framework that accounting on an accrual basis provides significantly better information about the transactions and other events for the purpose of decision making by users of financial statements than does the cash basis. C) The Going Concern Assumption According to the Framework, financial statements are prepared on the assumption that the existing entity is expected to continue operating into the future.It is assumed that the assets of the entity will not be sold off and that the entity will continue its activities; hence, liquidation values (prices in a forced sale) of the entity assets are not generally reported in financial statements, as this assumes that an entity is to be wound up. When management plans the sale or liquidation of the entity, the going concern assumption is then set aside and the financial statements are prepared on he basis of estimated sales or liquidation values. The significance of the going concern assumption is in the valuation Page 7 of 19 placed on the assets of an entity in the mentis financial statements. The statements should identify clearly the basis upon which asset values are determined – going concern? Or liquidation? (d) The Period Assumption For financial reporting purposes, it is assumed that the total life of an entity can be divided into equal time intervals.Hence, the financial performance of the entity can be determined for a given time period, and the financial session of the entity can be determined on the last day of that reporting period. As a result of this assumption, profit determination involves a process of recognizing the income for a period and deducting the expenses incurred for that same period. Together, the period assumption and accrual basis assumption lead to the requirement for making balance day adjustments on the last day of the reporting period. These adjustments will be considered in a later chapter.

Stress, Anger, Time and Conflict Management Essay

1. Avoid unnecessary stress. Learn how to say â€Å"no†. Avoid people who stress you out. Take control of your environment. Avoid hot-button topics. Pare down your to-do lists. 2. Alter the situation. Express your feelings instead of bottling them up. Be willing to compromise. Be more assertive. Manage your time better. 3. Accept the things you can’t change. Don’t try to control the uncontrollable. Look for the upside. Share your feelings. Learn to forgive. 4. Adapt to the stressor. Reframe problems. Look at the big picture. Adjust your standards. Focus on the positive. B. Stress Reduction Tips 1. Nurture yourself Set aside relaxation time. Connect with others. Do something you enjoy every day. Keep your sense of humor. 2. Healthy stress reducers Go for a walk. Spend time in nature. Talk to a supportive friend. Sweat out tension with a good workout. Do something for someone else. Write in your journal. Take a long bath. Play with a pet. Work in your garden. Get a message. Curl up with a good book. Take a yoga class. Listen to music. Watch a comedy. 3. Adopt a healthy lifestyle. Exercise regularly. Eat a healthy diet. Reduce caffeine and sugar. Avoid alcohol, cigarettes, and drugs. Get enough sleep. C. Unhealthy Ways of Coping with Stress Smoking Self-medicating with alcohol or drugs Using sleeping pills or tranquilizers to relax Overeating or eating too little Sleeping too much Procrastinating Withdrawing from friends, family, and activities Filling up every minute of the day to avoid facing problems Anger Management Redford Williams’ 12-Step Approach for Dealing with Unconstructive Anger 1. Maintain a â€Å"Hostility Log†. 2. If you do, acknowledge that you have a problem managing anger. 3. Use your support network. 4. Use anger management techniques to interrupt the anger cycle. Pause. Take deep breaths. Tell yourself you can handle the situation. Stop the negative thoughts. 5. Use empathy. 6. Laugh at yourself. 7. Relax. 8. Build trust. 9. Listen. 10. Be assertive. 11. Live each day as if it is your last. 12. Forgive Time Management and Conflict Management A. How to Manage Your Time 1. Create a schedule or to-do list. Write down deadlines for accomplishing certain tasks. 2. Plan to tackle difficult projects at the times of day when you are most alert. 3. Schedule time for people, including time for yourself. Create some personal time by waking up half an hour earlier or going to bed half an hour later than usual; plan a weekly date with your spouse, or arrange to have lunch with friends. 4. Prioritize what you need to accomplish. â€Å"Pareto’s principle† states that 80 percent of your accomplishments come from 20 percent of your effort, so think strategically: Locate and isolate this valuable 20 percent, then focus your efforts on the tasks that promise the greatest rewards. A. How to set priorities Priority 1: Red: Today/Tomorrow (Day) Priority 2: Orange: 3-7 Days (Week) Priority 3: Yellow: 2-3 weeks (Month) Priority 4: Later this year†¦(Wish List) B. Be realistic when assigning priorities to your tasks. C. Start work on any red tasks first – however awful, boring or frightening they are. The trick to keeping calm and balanced is simple: forget about all the complex planning. Work out what truly needs to be done next and do it. When it’s done, repeat the procedure. D. Start on the orange task next. Don’t even think about any yellow ones until all the reds and oranges are done. If any new tasks arrive, give them a color and put them on the list. Next morning, make a new list and reallocate the tasks into the colors. E. Keep track of your progress. After one week, take 15 minutes to go through the yellow (month) items. Cross all those that have solved themselves off the list. Do the same for those  that you can now see were never important anyway. You’ll be amazed how many there are. Underline those you can remove by: delegating them, using technology rather than your time and attention, or creating a routine for handling them so you can delegate or pass them to someone else. Make a red item to deal with them right away by whatever means is appropriate. 5. Delegate as many chores as you can. Hand out projects to subordinates at work. 6. Learn to say no to nonessential demands on your time. Don’t volunteer for a committee if you don’t have time, and decline invitations to events you don’t have time to attend. 7. Overcome procrastination. Don’t procrastinate. Setting aside high-priority items just because you don’t like doing them, or are boring, etc will obviously make keeping a to-do list useless. Grind through your to-do list and finish all red items first and foremost no matter how boring they are. After completing these daunting tasks, you can feel relieved. They won’t hang over your head and cause you stress later. 8. Avoid perfectionism. Don’t waste time obsessively perfecting a task when you could better spend the time on something else. B. Time Management for New Supervisors a. Maintain a calendar of appointments and keep it with you at all times. b. Write things down so you don’t forget. Maintain a â€Å"To do† list and prioritize the entries. c. Set realistic deadlines for yourself. Then, promise small and deliver big. If you think your team can get a project done by noon, promise it for 2:00 p.m. but deliver it at noon. d. When you are on a deadline, use your voicemail. Filter out all but essential telephone calls. e. Use e-mail instead of the telephone whenever possible. This will avoid the tendency people have to talk longer than is necessary to convey their information. f. With paperwork, practice the principle of â€Å"Do  It Now.† g. Always plan to arrive at scheduled appointments ten minutes early. It almost always takes longer to get there than you think. h. Practice gently helping people get to the point when they are talking to you. Save superfluous chatting for excess time after work. i. Hold impromptu and unscheduled â€Å"drop-in† meetings standing up. This will convey a sense of brevity to the person who wants some of your time. j. When you call a meeting, specify both a starting and an ending time. This will keep participants on track and on schedule. k. Get rid of unnecessary paper clutter. More than 80 percent of the paperwork filed is never used again. Ask yourself if you really need it before deciding to keep paperwork. C. TIME MANAGEMENT FOR SUPPORT PERSONNEL I. What My Boss Could Do that Would Help Me Perform My Job More Effectively 1. Discuss my job priorities with me so that we both have the same understanding of how I should be distributing my time and effort over the various activities of my job. 2. Give advance warning when big jobs are coming up so I can prepare for them. 3. Let me know when you are leaving the office, where you are going, and when you will return. 4. Write messages legibly. 5. Draft or outline memos so that multiple revisions are minimized. 6. Let me know what your priorities are so I can help you with the most important items. 7. Discuss my job, my job duties, and my career with me. 8. Call in or send email messages while on a trip for important messages that have come in while you’re away. 9. Have us meet each morning to discuss projects and priorities of the day. 10. Let me show you our file system so you can retrieve files yourself. 11. Try to give me all parts of a big job at once rather than in bits and pieces. 12. Show a little appreciation when I do a good job. 13. Get your own coffee when I am swamped with work. 14. Let me set up a message center where you can pick up your mail and other things. 15. Protect me from other managers. If I can’t count on you then I can’t count on anyone. 16. Give me a list of your appointments so I can anticipate things to do and prepare. 17. Give me clear instructions and directions and precise assignments. 18. Let me know about changes in your schedule, meetings, appointments, etc. 19. Please don’t refer to me as â€Å"just my staff† or â€Å"my gal† or â€Å"my girl.† 20. Provide me with some career guidance; I am ambitious just as you are. 21. Don’t make me a clerk; I want to and can do more. 22. Attend a time management for managers workshop. 23. Make a daily â€Å"to do† list and share it with me so I can anticipate how to plan my day. 24. Ask for and at least consider my ideas. I am not stupid and I want to contribute more. 25. If multiple bosses, work a priority system for the work that you all give me and let me administer your system rather than force me to make priority decisions upward for all of you. 26. Give the larger projects and jobs as early in the day as possible so I have time for completion. 27. Don’t spend so much time on chit-chat with me. It prevents me from doing my job. 28. Please don’t question or challenge everything I do. I want to be responsible and have the responsibility of my job. 29. When you communicate, please be specific. 30. Let me know how you want callers and visitors screened. We can work a system that will benefit both of us. 31. Don’t have me file a lot of unnecessary papers. Let’s toss out stuff that we both know we will never refer to again. 32. Give me reasonable deadlines for jobs. It really hurts to rush to meet your deadlines and then see those jobs sit on your desks for days (or weeks) untouched. 33. Don’t be a perfectionist. It takes too much of your time and mine. 34. Set up a follow-up system so we can both stay on top of things. 35. Let’s try and agree on time frames for jobs and projects. 36. Try to block certain times during the day for meetings rather than have them chop up the both of us continuously. 37. Trust me with confidential information that I need to do my job effectively. 38. When we are talking, please try to listen better. II. What I Could Do As A Support Personnel that Would Help My Boss to Work More Effectively 1. All the things under Item I would help the boss to work more effectively. 2. Let the boss know where I am at all times. 3. Sort mail of boss into three groups: critical, important, routine and toss out junk mail. 4. Help boss to maintain a daily â€Å"to do† list. 5. Keep my own daily â€Å"to do† list and coordinate with list of boss. 6. Remind boss of upcoming meetings, appointments, lunches, etc. 7. Screen and always try to help callers and visitors so at least some of them will not interrupt the boss. 8. Update my skills in the use of present technology in my job, including my time management skills. 9. Answer routine correspondence or outline or draft answers for approval of boss. 10. Ignore petty and superficial annoyances. 11. Schedule staff visitors so boss is not chopped up all day. 12. Schedule vendor visitors; require an appointment and suggest certain days for batching. 13. Work out a system for interrupting boss stuck with long-winded callers or visitors. 14. Make up file out-card system so boss knows where all files can be located. 15. Take the initiative and make suggestions such as form letters, forms, to help boss. 16. Keep equipment used by boss in proper condition. 17. Help boss to organize and maintain a neat work area. 18. Function as a sounding board for ideas of boss. 19. Keep pending and follow files to prevent procrastination and crises for boss. 20. Keep boss informed through progress reports of long-term projects I am working on. 21. Be sure supplies used by boss are always available. 22. Help boss by making most of the arrangements for meetings held by boss. Conflict Management What is conflict? Conflict is a natural disagreement resulting from individuals or groups that differ in attitudes, beliefs, values or needs. It can also originate from past rivalries and personality differences. Other causes of conflict include trying to negotiate before the timing is right or before needed information is available. Common causes of workplace conflict Limited resources (You have your needs and I have mine.) Incompatible goals (I want this and you want that.) Role ambiguity (Who is responsible for what?) Different values (You and I have different beliefs.) Different perspectives (You and I see things differently.) Communication problems (What do you mean?) Important things to know about conflict: Conflict is inevitable; Conflict develops because we are dealing with people’s lives, jobs, children, pride, self-concept, ego and sense of mission or purpose; Early indicators of conflict can be recognized; There are strategies for resolution that are available and DO work; Although inevitable, conflict can be minimized, diverted and/or resolved. Beginnings of conflict: Poor communication Seeking power Dissatisfaction with management style Weak leadership Lack of openness Change in leadership Conflict indicators: Body language Disagreements, regardless of issue Withholding bad news Surprises Strong public statements Airing disagreements through media Conflicts in value system Desire for power Increasing lack of respect Open disagreement Lack of candor on budget problems or other sensitive issues Lack of clear goals No discussion of progress, failure relative to goals, failure to evaluate the superintendent fairly, thoroughly or at all. Conflict is destructive when it: Takes attention away from other important activities Undermines morale or self-concept Polarizes people and groups, reducing cooperation Increases or sharpens difference Leads to irresponsible and harmful behavior, such as fighting, name-calling Conflict is constructive when it: Results in clarification of important problems and issues Results in solutions to problems Involves people in resolving issues important to them Causes authentic communication Helps releases emotion, anxiety, and stress Builds cooperation among people through learning more about each other; joining in resolving the conflict Helps individuals develop understanding and skills Techniques for avoiding and/or resolving subordinate-supervisor conflict: Meet conflict head on Set goals Plan for and communicate frequently Be honest about concerns Agree to disagree – understand healthy disagreement would build better decisions Get individual ego out of management style Let your team create – people will support what they help create Discuss differences in values openly Continually stress the importance of following policy Communicate honestly – avoid playing â€Å"gotcha† type games Provide more needed data and information. Develop a sound management system Causes of subordinate-supervisor conflict: Trying to be administrators; overstepping authority Making promises as members individually Involving themselves in labor relations Not doing their â€Å"homework† and failing to prepare for meetings Not following procedures for handling complaints Not keeping executive session information confidential Failing to act on sensitive issues Failing to be open and honest with the supervisor Making decisions based on preconceived notions Not supporting the supervisor – lack of loyalty Springing surprises at meetings Having hidden agendas Why conflict resolution skills are important To improve employee performance To maintain good customer service/satisfaction To ensure employee safety To protect employee health To reduce absenteeism and tardiness How conflict should be handled Determine how important the issue is to all people involved Determine whether all people involved are willing and able to discuss the issue in a positive manner Select a private place where the issue can be discussed confidentially by everyone involved Make sure that both sides understand they are responsible for both the problem and the solution Solicit opening comments from both sides. Let them express their concerns, feelings, ideas, and thoughts, but in a non-accusatory manner Guide participants toward a clear and specific definition of the problem Encourage participants to propose solutions while you listen carefully. Examine the problem from a variety of different perspectives and discuss any and all solutions proposed. Evaluate the costs versus the gains (cost-benefit analysis) of all proposed solutions and discuss them openly. Choose the best solution. Reflect on the issue and discuss the conflict resolution process. Encourage participants to express their opinions as to how the process might be improved. Listening improvement checklist to help resolve conflict Remove all distractions Put the speaker at ease Look directly at the speaker Concentrate on what is being said Watch for nonverbal cues Take note of the speaker’s tone Be patient and wait Ask clarifying questions Paraphrase and repeat No matter what is said, control your emotions How and when conflict should be stimulated Team members always agree with you and tell you only what you want to hear. Team members are afraid to admit they need help or that they’ve made mistakes. Team members focus more on reaching agreement that on arriving at the best decision. Team members focus more on getting along with others than on accomplishing objectives. Team members place more emphasis on being popular than on high job performance and competitiveness. Team members are highly resistant to change. The turnover rate is usually low. Team members avoid proposing new ideas. Communication in conflict situations Communicate the following messages when handling conflicts or potential conflicts: This situation is an opportunity to solve a problem cooperatively. There are guidelines we will follow in handling this situation and these guidelines are†¦ We will not engage in blaming and finger pointing. â€Å"If the horse you are riding dies, get off and find another one.† We will not cling to old ideas that are no longer valid. If you say you will do something, do it. Trust prevents conflict. Conflict Management Strategies When it is used Outcomes Drawbacks Collaboration – results from a high concern for the group’s own interests, matched with a high concern for the interest of other partners. Best strategy when society’s interest is at stake Best approach for managing conflict when it’s aimed at reaching consensus Win/win Helps build commitment and reduce bad feelings Takes time and energy Some partners may take advantage of the others’ trust and openness Guidelines for Reaching Consensus through Collaboration Avoid arguing over individual ranking or position. Present a position as logically as possible. Avoid â€Å"win-lose† statements. Discard the notion that someone must win. Avoid changing of minds only in order to avoid conflict and to achieve harmony. Avoid majority voting, averaging, bargaining, or coin flipping. These do not lead to consensus. Treat differences of opinion as indicative of incomplete sharing of relevant information, keep asking questions. Keep the attitude that holding different views is both natural and healthy to a group. View initial agreement as suspect. Explore the reasons underlying apparent agreement and make sure that members have willingly agreed. Compromise – results from a high concern for the group’s own interest with a moderate concern for the interests of other partners. Generally used to achieve temporary solutions, to avoid destructive power struggles or when time pressures exist. Win some/lose some Partners can lose sight of important values and long-term objectives. Can distract the partners from the merits of an issue and create a cynical climate. When it is used Outcomes Drawbacks Competition – results from a high concern for the group’s own interests with less concern for others. Generally used when basic rights are at stake or set a precedent. Win/lose Includes most attempts at bargaining Can cause conflict to escalate and losers may try to retaliate. Accommodation – results from a concern for the group’s own interests combined with a high concern for the interest of other partners Generally used when the issue is more important to others than to you. Appropriate when you recognize that you are wrong. Lose/win â€Å"Goodwill gesture† Your own ideas and concerns don’t get attention One may lose credibility and future influence. Avoidance – results from a concern for the group’s own interests coupled with a low concern for the interest of others. Generally used when the issue is trivial or other issues are more pressing. Used when confrontation has a high potential for damage or more information is needed. Lose/lose Important decisions may be made by default.

Role of Commercial Banks in Development

Role of commercial banks in development. INTRODUCTION A commercial bank is something with which every one of us is well known. However different bankers and economists have defined it in a different way:   According to Kent: â€Å"An organization whose principal operations are concerned with the accumulation of the temporarily idle money of the general public for the purpose of advancing to others for expenditure. † According to Banking Companies Ordinance 1962: Banking means the accepting for the purpose of lending or investing of deposits of money from the public repayable in demand or otherwise and withdraw-able by cheque, draft order or otherwise. † Various economists have different views about the role of commercial banks in economic development. Schumpeter says,  Ã¢â‚¬Å"It is the banking system which serves as a key agent along with the entrepreneur in the process of economic development†. According to  Prof. Cameron  in his â€Å"Banking and Economi c Development†, â€Å"a banking system may make a positive contribution to economic growth and development. Evolution of Commercial Banks The foundation for building a broad base of agricultural credit structure was laid by the Report of the All-India Rural Credit Survey (AIRCS) of 1954. The provision of cultivator credit in 1951-52 was less than 1% for commercial banks. In the report it was observed that agricultural credit fell short of the right quantity, was not of the right type, did not fit the right purpose and often failed to go to the right people.With a view to give an impetus to commercial banks, particularly, in the sphere of investment credit, the nationalization of the Imperial Bank of India and its re-designation as the State Bank of India (SBI) was recommended. Growth in Outreach 1951-91 From the position prevalent in 1951-52, commercial banks came a long way with a substantial spread of 32,224 branches in rural and semi-urban areas comprising 68% of their tot al outlets as on 31 March 1991. The outstanding deposits of such branches at Rs. 7,855 crores as on the same date constituted around 35% of their total deposits, while loans outstanding at Rs. 43,797 crore comprised 36% of outstanding credit. The agricultural advances of the commercial banking system aggregated Rs. 16,687 crore and constituted 14% of total advances in March 1991. The rural and semi-urban branches of commercial banks covered 17. 6 crore deposit accounts while the number of loan accounts serviced aggregated 3. 7 crore. Growth during 1991-92 to 2003-04 The period since 1991-92 has seen a fairly rapid expansion of credit to agriculture.Available data indicate that the flow of credit to agriculture by commercial banks and RRBs taken together increased to Rs. 60,022 crore in 2003-04. This implies a compounded annual growth rate of 22. 2%. In fact, as compared with commercial banks (including RRBs), the flow of credit from the cooperative sector was much slower through thi s period. The compounded annual growth rate of credit for agriculture from cooperative institutions was only 13. 7%. Further, the proportion of agriculture credit to total credit came down because of the rapid growth in non agriculture credit.The Government took some major initiatives during the period to boost agriculture production and productivity through enhanced credit flow and by way of building agricultural infrastructure, particularly irrigation and connectivity in rural areas. Special Agricultural Credit Plan (SACP) was introduced by RBI for Public Sector Commercial Banks in 1994-95. Credit growth for agriculture and allied sectors under this caption reflected a CAGR of 36. 45% during 2001-02 to 2005-06. SACP has since been extended to Private Sector Commercial Banks from 2005-06.The SHG – Bank Linkage Programme was started as a pilot project by NABARD in 1992. It led to the evolution of a set of RBI approved guidelines to banks to enable SHGs to transact with banks. Initially there was slow progress in the programme up to 1999 as only 32,995 groups were credit linked during the period 1992 to 1999. Since then the programme has been growing rapidly and the cumulative number of SHGs financed increased from 4. 61 lakhs on 31 March 2002 to 10. 73 lakhs on 31 March 2004 and further to 29. 25 lakh groups as on 31 March 2007.Rural Infrastructure Development Fund (RIDF) was set-up in NABARD by GoI during 1995-96 with an initial corpus of Rs. 2000 crore, to accelerate the 47 completion of on-going projects of rural infrastructure. Banks which did not fulfill the priority sector credit requirement and agriculture credit mandate were required to contribute to this Fund. The fund has been strengthened every year with additional allocations in the Union Budget. A large number of irrigation and rural connectivity projects could get completed under RIDF. RBI scaled down its contribution to the Rural Credit funds with NABARD to a token amount of Rs. crore per annum since 1993-94. However to enable NABARD to have reasonably strong leverage for accessing market funds, the share capital of NABARD was strengthened and increased to Rs. 2000 crore (paid up) from Rs. 100 crore at the time of its formation in 1982. Contributions to enhanced share capital have come from GoI and RBI. By prudent funds management, the institution has also built a strong base of reserves and has been using it in its business operations judiciously to keep lending rates to rural financial institutions at significantly lower than market costs. Developments – Post 2003-04Since 2003-04, there has been a substantial increase in the flow of credit to agriculture through commercial banks. Disbursements have increased from Rs. 52,441 crore in 2003-04 to Rs. 1,16,447 crore in 2005-06, reaching an annual growth of 43% each year. As envisaged in the GoI's strategy for â€Å"doubling of credit†, 95 lakh new farmers have been brought under the institutional fold an d 1,383 agri-clinics opened. Commercial banks have also played a major role in the promotion of the SHG – bank linkage movement with more than 11. 88 lakh groups being linked to banks for provision of credit.Reforms in the commercial banking system include removal of procedural and transactional bottlenecks including elimination of Service Area Approach, reducing margins, redefining overdues to coincide with crop cycles, new debt restructuring policies, one time settlement and relief measures for farmers indebted to non-institutional sources. Banks play a vital role in the economic development of a country. They accumulate the idle savings of the people and make them available for investment. They also create new demand deposits in the process of granting loans and purchasing investment ecurities. They facilitate trade both inside and outside the country by accepting and discounting of bills of exchange. Banks also increase the mobility of capital. They provide a variety of f acilities for remitting a large amount of money from one place to another by the transfer of a mere slip of paper. Commercial banks play an important and active role in the economic development of a country, if the banking system in a country is effective, efficient and disciplined; it brings about a rapid growth in the various sectors of the economy. The Functions of Commercial BanksIn the modern world, banks perform such a variety of functions that it is not possible to make an all-inclusive list of their functions and services. However, some basic functions performed by the banks are discussed below. 1. Accepting  Deposits The first important function of a bank is to accept deposits from those who can save but cannot profitably utilize this saving themselves. People consider it more rational to deposit their savings in a bank because by doing so they, on the one hand, earn interest, and on the other, avoid the danger of theft.To attract savings from all sorts of individuals, th e banks maintain different types of accounts: (i) Fixed Deposit Account: Money in these accounts is deposited for fixed period of time (say one, two, or five years) and cannot be withdrawn before the expiry of that period. The rate of interest on this account is higher than that on other types of deposits. The longer the period, the higher will be the rate of interest. Fixed deposits arc also called time deposits or time liabilities. (ii) Current Deposit Account: These accounts are generally maintained by the traders and businessmen who have to make a number of payments every day.Money from these accounts can be withdrawn in as many times and in as much amount as desired by the depositors. Normally, no interest is paid on these accounts; rather, the depositors have to pay certain incidental charges to the bank for the services rendered by it. Current deposits are also called demand deposits or demand liabilities. (iii) Saving Deposit Account: The aim of these accounts is to encourag e and mobilise small savings of the public. Certain restrictions are imposed on the depositors regarding the number of withdrawals and the amount to be withdrawn in a given period.Cheque facility is provided to the depositors. Rate of interest paid on these deposits is low as compared to that on fixed deposits. (iv) Recurring Deposit Account: The purpose of these accounts is to encourage regular savings by the public, particularly by the fixed income group. Generally money in these accounts is deposited in monthly installments for a fixed period and is repaid to the depositors along with interest on maturity. The rate of interest on these deposits is nearly the same 3s on fixed deposits. (v) Home Safe Account: Home safe account is another scheme aiming at promoting saving habits among the people.Under this scheme, a safe is supplied to the depositor to keep it at home and to put his small savings in it. Periodically, the safe is taken to the bank where the amount of safe is credited to his account. 2. Advancing  of loans The second important function of a bank is advancing of loans to the public. After keeping certain cash reserves, the banks lend their deposits to the needy borrowers. Before advancing loans, the banks satisfy themselves about the credits worthness of the borrowers. Various types of loans granted by the banks are discussed below: (i) Money at Call:Such loans are very short period loans and can be called back by the bank at a very short notice of say one day to fourteen days. These loans are generally made to other banks or financial institutions. (ii)  Cash Credit: It is a type of loan, which is given to the borrower against his current assets, such as shares, stocks, bonds, etc. Such loans are not based on personal security. The bank opens the account in the name of the borrowers and allows him to withdraw borrowed money from time to time up to a certain limit as determined by the value of his current assets.Interest is charged only on th e amount actually withdrawn from the account. (iii) Overdraft: Sometimes, the bank provides overdraft facilities to its customers though which they are allowed to withdraw more than their deposits. Interest is charged from the customers on the overdrawn amount. (iv) Discounting of Bills of Exchange: This is another popular type of lending by the modern banks. Through this method, a holder of a bill of exchange can get it discounted by the bank. In a bill of exchange, the debtor accepts the bill drawn upon him by the creditor  (i. e,  holder of the bill) and agrees to pay the amount mentioned on maturity.After making some marginal deductions (in the form of commission), the bank pays the value of the bill to the holder. When the bill of exchange matures, the bank gets its payment from the party, which had accepted the bill. Thus, such a loan is self-liquidating. (v)  Term Loans: The banks have also started advancing medium-term and long-term loans. The maturity period for such loans is more than one year. The amount sanctioned is either paid or credited to the account of the borrower. The interest is charged on the entire amount of the loan and the loan is repaid either on maturity or in installments. . Credit Creation A unique function of the bank is to create credit. In fact, credit creation is the natural outcome of the process of advancing loan as adopted by the banks. When a bank advances a loan to its customer, it does not lend cash but opens an account in the borrower's name and credits the amount of loan to this account. Thus, whenever a bank grants a loan, it creates an equal amount of bank deposit. Creation of such deposits is called credit creation which results in a net increase in the money stock of the economy.Banks have the ability to create credit many times more than their deposits and this ability of multiple credit creation depends upon the cash-reserve ratio of the banks. 4. Promoting Cheque System: Banks also render a very useful medi um of exchange in the form of cheques. Through a cheque, the depositor directs the bankers to make payment to the payee. Cheque is the most developed credit instrument in the money market. In the modern business transactions, cheques have become much more convenient method of settling debts than the use of cash. 5. Agency Functions:Banks also perform certain agency functions for and on behalf of their customers: (i) Remittance of Funds: Banks help their customers in transferring funds from one place to another through cheques, drafts, etc. (ii) Collection and Payment of Credit Instruments: Banks collect and pay various credit instruments like cheques, bills of exchange, promissory notes, etc. (iii) Execution of Standing Orders: Banks execute the standing instructions of their customers for making various periodic payments. They pay subscriptions, rents, insurance premium, etc. on behalf of their customers. (iv) Purchasing and Sale of Securities:Banks undertake purchase and sale of v arious securities like shares, stocks, bonds, debentures etc. on behalf of their customers. Banks neither give any advice to their customers regarding these investments nor levy any charge on them for their service, but simply perform the function of a broker. (v) Collection of Dividends on Shares: Banks collect dividends, interest on shares and debentures of their customers. (vi) Income Tax Consultancy: Banks may also employ income-tax experts lo prepare income-tax returns for their customers and to help them to get refund of income-tax. (vii) Acting as Trustee and Executor:Banks preserve the wills of their customers and execute them after their death. (viii) Acting as Representative and Correspondent: Sometimes the banks act as representatives and correspondents of their customers. They get passports, travelers tickets, book vehicles, plots for their customers and receive letters on their behalf. 6. General Utility Function: In addition to agency services, the modern banks provide many general utility services as given below: (i) Locker Facility: Banks provide locker facility to their customers. The customers can keep their valuables and important documents in these lockers for safe custody. ii) Traveller's Cheques: Banks issue traveller's cheques to help their customers lo travel without the fear of theft or loss of money. With this facility, the customers need not take the risk of carrying cash with them during their travels. (iii) Letter of Credit: Letters of credit are issued by the banks to their customers certifying their creditworthiness. Letters of credit are very useful in foreign trade. (iv) Collection of Statistics: Banks collect statistics giving important information relating to industry, trade and commerce, money and banking.They also publish journals and bulletins containing research articles on economic and financial matters. (v) Underwriting Securities: Banks underwrite the securities issued by the government, public or private bodies. Becau se of its full faith in banks, the public will not hesitate in buying securities carrying the signatures of a bank. (vi) Gift Cheques: Some banks issue cheques of various denominations (say of Rs. 11, 21, 31, 51. 101, etc. ) to be used on auspicious occasions. (vii) Acting as Referee: Banks may be referred for seeking information regarding the financial position, business reputation and respectability of their customers. viii) Foreign Exchange Business: Banks also deal in the business of foreign currencies. Again, they may finance foreign trade by discounting foreign bills of exchange. Role of Commercial Banks In Economic Development Of A Country Commercial banks  play an important and active role in the economic development of a country. If the banking system in a country is effective’, efficient and disciplined, it brings about a rapid growth in the various sectors of the economy. The economic significance of commercial banks is given in brief. (1) Banks promote capital f ormation.The commercial banks play an important role in rising of the financial resources. They encourage savings by giving various types of incentives to the savers. They expand branches of the banks in rural and urban areas and mobilize savings even at far of places. These savings are then made available to the businesses which make use of them for productive purposes in the country. The banks are, therefore, not only store houses of the country’s wealth, but also provide stream of resources necessary for economic development. (2) Investment in new enterprises.Businessmen normally hesitate to invest their money in risky enterprises. The commercial banks generally provide short and medium term loans to entrepreneurs to invest in new enterprises and adopt new methods of production. The provision of timely credit increases the productive capacity of the economy. (3) Promotion of trade and industry. With the growth of commercial banking in the 19th and 20th centuries, there is vast expansion in trade and industry. The use of bank draft, cheque, bill of exchange credit cards etc has revolutionized both national and international trade. (4) Development of agriculture.The commercial banks, particularly in developing countries, are now providing credit for the development of agriculture and small scale industries in rural areas. The provision of credit to agriculture sector has greatly helped in raising agricultural productivity and income of the farmers. This has led to increased demand for industrial goods and expansion of industry. (5) Balanced development of different regions. The commercial banks play an important role in achieving balanced in different regions of the country. They help in transferring surplus capital from developed regions to the less developing regions.The traders, industrialists etc of less developed regions are able to get adequate capital for meeting their business needs. This, in turn, increases investment, trade and production in the economy. (6) Influencing economy activity. The banks can also influence the economic activity of the country through its influence on (a) availability of credit and (b) the rate of interest. If the commercial banks are able to increase the amount of money in circulation through credit creation or by lowering the rate of interest, it directly affects economic development. A low rate of interest can encourage investment.The credit creation activity can raise aggregate demand which leads to more production in the economy. Which finally increases the growth of the nation. (7) Implementation of monetary policy. The central bank of the country controls and regulates volume of credit through the active cooperation of the banking system in the country. If helps in bringing price stability and promotes economic growth within shortest possible period to time. (8) Monetization of the economy. The commercial banks by opening branches in the rural and backward areas are reducing the exchange of goods through barter.The use of money has now greatly increased the volume of production of goods. The non-monetized sector (barter economy) is now being converted into monetized sector with the help  of commercial banks. (9) Export promotion cells. In order to increase the exports of the country, the commercial banks have established export promotion cells. They provide information about general trade and economic conditions both inside and outside the country to its customers. The banks are, therefore, making positive contribution in the process of economic development.Role of banks in 21st century: The commercial banks are now not confined to local banking. They are fast changing into global banking i. e. , understanding the global customer, using latest information technology, competing in the open market with high technology system, changing from domestic banking to investment banking etc. The commercial banks are now considered the nerve centre of all economic developmen t in the country. The use of online banking is now on the increase. It has brought revolution in banking industry. CONCLUSIONCommercial banks are considered not merely as dealers in money but also the leaders in economic development. They are not only the store houses of the country’s wealth but also the reservoirs of resources necessary for economic development. They play an important role in the economic development of a country. A well-developed banking system is essential for the economic development of a country. The â€Å"Industrial Revolution† in Europe in the 19th century would not have been possible without a sound system of commercial banking. In case of developing countries like India, the commercial banks are considered to be the backbone of the economy.The Banking Sector has for centuries now formed one of the pillars of economic prosperity. Indeed history provides us with some starting information regarding how banks provided finance for imperialist ventu res in newly acquired colonies. Over time banks have formed an important part in providing an avenue for both savings and investments. Land, Labor, capital and entrepreneurs are the basic economic resources available to business. However, to make the use of these resources, a business requires finance to purchase of the land, hire labor, pay for capital goods and pay for individuals with specialized skills.The commercial banks provide capital, technical assistance and other facilities to businessmen according to their need, which leads to development in trade. Commercial banks finance the most important sector of the developing economics i. e. agriculture, short, medium and long-term loans are provided for the purchase of seeds and fertilizer, installation of tube wells, construction of warehouses, purchase of tractor and thresher etc. Commercial banks help in increasing the rate of capital formation in a country. Capital formation means increase in number of production units, techn ology, plant and machinery.They finance the projects responsible for increasing the rate of capital formation. Commercial banks help the traders of two different countries to undertake business. Letter of credit is issued by the importer’s bank to the exporters to ensure the payment. The banks also arrange foreign exchange. Commercial banks provide the facility of transferring funds from one place to another which leads to the growth of trade. The commercial banks financed the transport sector. It has reduced unemployment on one hand and increased the transport facility on the other hand. Remote areas are linked to main markets through developed transport system.These are the few ways in which the commercial banks had helped in developing the economy of a country. BIBLIOGRAPHY * Samuelson Norhaus, economics, 18th edn, Tata McGraw Hill Publishing Co. Ltd. , 2008 * Xam idea, economics, F K Publication, 2009 * Chitta Ranjan Basu, Commercial Banking in the Planned Economy of Indi a, Mittal Publications, 1991 * N. Gregory Mankiw, Principles of Economics, cengage learning, 2012 * www. preservearticles. com ——————————————– [ 2 ]. N. Gregory Mankiw, Principles of Economics, cengage learning, 2012 [ 3 ]. www. bankingsector. co. in [ 4 ].N. Gregory Mankiw, Principles of Economics, cengage learning, 2012 [ 5 ]. Xam idea, economics. [ 6 ]. N. Gregory Mankiw, Principles of Economics, cengage learning, 2012 [ 7 ]. www. preservearticles. com [ 8 ]. www. ehow. com [ 9 ]. 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