Natural monopoly Essay

The concept of â€Å"Natural Monopoly† comes from economics. It is a situation in which majority of the portion of market is covered by a single firm or company. The goods, services or products offered by the company covers the maximum portion of the market. A Natural Monopoly is a situation in which the cost of producing the product (goods or services) is lower due to economies of scale. In a situation of Natural Monopoly, there are no close substitutes to offer the same product or services. Economies of scale is a situation or condition in which the cost to a company of producing or supplying each additional unit of a product or service decreases as the volume of output increases. Economies of scale is not the only reason for the existence of monopoly. A Natural Monopoly also exists because of sole access to a particular resource or technology and because of the use of non-market means to eliminate competition, including buying up competitors and colluding with customers or suppliers to discriminate against competitors. A Natural Monopoly also exists even if there are multiple competitors in the market. In such case, the firm which can attain the largest volume of output and the lowest production cost will be called as a Natural Monopoly. All the other firms will have to exit the industry because they are unable to compete on a price basis. Basically, it is very difficult for any competitor to enter the market of natural monopoly because of very high cost of production facilities which includes the cost of infrastructure. There is also a high uncertainty among the intended competitors that they will be able to oust the existing monopolist. Some of the most commonly used examples for natural monopoly are utilities such as water supply system, electric power transmission system, railroads and pipelines. Though it is very difficult for any intended competitor to enter the market of natural monopoly, but it is very important for us to remember that natural monopoly is not permanent. This is because technological advances can lead to the development of new forms of competition for an industry, change its cost structure and affect the demands for its products. For example, canals were once a natural monopoly for bulk transport in parts of Europe and the U. S. , but these monopolies disintegrated during the nineteenth century as a result of the development of railway.

Outsourcing Seats to Turkey

Outsourcing Seats to Turkey Introduction The purpose of this paper is to analyze the influence of outsourcing on VDL Group’s supply chain strategy and processes. In addition, a plan to outsource CAD conversion services to Outsource2india will be presented.Advertising We will write a custom coursework sample on Outsourcing Seats to Turkey specifically for you for only $16.05 $11/page Learn More Outsourcing refers to the process of â€Å"contracting with a third-party service provider for the management and completion of a certain amount of work, for a specified length of time, cost, and level of services† (Oshri, Kotlarsky Willcocks 2009, p. 4). The main objective of outsourcing is to enable companies to improve their competitiveness through cost reduction, economies of scale, and flexibility in production (Varadarajan 2008, pp. 1165-1172). VDL is a manufacturing company that was founded in the Netherlands in 1953. The company is organized into four divisions namely, subc ontracting, car assembly, bus/ coach, and finished products (VDL 2014). The subcontracting division specializes in mechatronic systems, manufacturing plastics, and surface treatment. The car assembly division produces cars on behalf of other companies. The bus and coach division produces coaches and buses. The finished product division produces several products, which include car suspension systems, heating systems, and production automation systems (VDL 2014). Overall, the group consists of 81 operating companies that specialize in the production of specific products. The group has operations in 18 countries where it employs over 9,100 employees. In 2012, the company realized 1,756 million Euros in revenues (VDL 2014). Impact of Outsourcing VDL has outsourced production of the seats for its cars and buses to a Turkish company referred to as Brusa Seating. Brusa Seating specializes in the design, development, and production of seats, which it sells to original manufacturers of comme rcial vehicles (Brusa 2014). Outsourcing has had the following impacts on VDL. First, outsourcing has enabled the company to adjust the scale and scope of its production capability at a low cost. Given the high competition in the automobile industry, manufacturing companies have had to adopt lean production technologies in order to reduce operating costs. One of the strategies being used by VDL is to produce cars and buses on demand. This means that the company has to adjust its production capacity frequently in order to satisfy existing demand without holding unnecessary inventory or stock of completed buses/ cars. When the demand for buses is high, the company simply increases its order for new seats. This leads to cost savings since the company does not have to invest in new production systems or inventory to produce more seats (Williamson 2008, pp. 5-14). Conversely, when demand for buses is declining, the company orders for fewer seats. As a result, it avoids operating at exces s capacity, thereby eliminating the costs associated with warehousing and laying off staff during low demand seasons.Advertising Looking for coursework on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Second, outsourcing enables VDL to concentrate on its core activities, which include assembling cars and manufacturing buses. Undoubtedly, companies cannot pursue excellence in all activities in their value chain due to resource limitations (Liu Nagurney 2011, pp. 539-549). Thus, companies focus on their core competence in order to achieve a competitive advantage. In this context, core refers to the activities that are performed internally, contribute directly to the bottom line, and determine the future of the company. VDL’s core competence is in assembling cars and buses on behalf of third parties. Thus, it outsources the manufacture of car parts such as seats to third party producers where the manufact ure of car parts is a core competence. Outsourcing enables companies to focus on activities that add value to their customers (Tayauova 2012, pp. 188-195). At VDL, the value adding activities include product development, research, and provision of technical support to customers. By focusing on these activities, the company has been able to improve the quality of its products, thereby increasing sales, customer satisfaction, and market share. Finally, outsourcing enables VDL to achieve cost advantages through economies of scale. Economies of scale refer to a cost advantage that a company achieves through increased production of a given product (Belcourt 2006, pp. 269-279). Specifically, the fixed cost per unit reduces as the number of units produced rises. Outsourcing enables VDL to achieve economies of scale in several ways. To begin with, it enables the company to increase its production capacity without incurring the fixed costs associated with hiring new employees and holding lar ge inventories. Outsourcing also enables the company to improve its efficiency by purchasing seats at a favorable price. In particular, Brusa Seating has to supply the seats to VDL at a competitive price in order to maintain the outsourcing contract. Economies of scale enable VDL to reduce the average cost of producing its buses and cars, thereby improving its profit margins. Moreover, low production costs enable VDL to price its products competitively, thereby overcoming competition in the market. Risks and Benefits Benefits First, VDL benefits from access to the capabilities and the expertise of Brusa Seating. The automotive industry is capital intensive and thrives on the application of advanced technologies to achieve product and process innovation. This requires investments in modern production systems and the best talent (Gabriela Clark 2006, pp. 250-253).Advertising We will write a custom coursework sample on Outsourcing Seats to Turkey specifically for you for onl y $16.05 $11/page Learn More The automotive industry in the Netherland is underdeveloped due to its high concentration. As a result, access to talent and advanced production technologies is limited. By contrast, Turkey’s automotive industry consists of numerous large producers who have decades of experience. Thus, outsourcing enables VDL to access advanced technologies and expertise through Brusa Seating (Weidenbaum 2005, pp. 311-315). Second, the company benefits from low labor costs by outsourcing to Brusa Seating. Turkey is â€Å"an emergent market in the new millennium expected to attract the interest of global companies in their attempt to obtain competitive advantages† (Aktas et al. 2011, pp. 833-852). One of the main advantages of Turkey is low labor cost. In 2013, the average hourly labor cost in the Netherlands was $34.75, whereas in Turkey the cost was $5 (World Bank 2014). Low labor costs enable Brusa Seating to produce seats for VDL at a low cost. As a result, VDL’s overall cost of producing buses and cars will reduce in the long-run (Quelin Duhamel 2003, pp. 647-661). Third, VDL has achieved a competitive advantage in the market through outsourcing. The company has achieved a differentiation advantage by contracting Brusa Seating to manufacture its seats. As a specialized seat producer, Brusa Seating focuses on conducting research and development to produce seats that meet the specific needs of its customers. Through product innovation, Brusa Seating has been able to supply VDL with seats that offer more comfort and flexibility than those provided by other companies. Differentiation will enable VDL’s buses to penetrate the market easily. Risks First, outsourcing to a Turkish company exposes VDL to the risk of language barriers. The official language in Turkey is Turkish. Over 90% of Turkey’s population speaks Turkish. By contrast, Dutch is the official language in the Netherlands and it is used b y over 90% of the population. Only 0.06% of the Netherland’s population can speak Turkish and Arabic. This means that communication is likely to be a problem since the employees of VDL and Brusa Seating are not likely to speak the same language. Undoubtedly, language barriers cause serious challenges such as misunderstandings among business partners. This can lead to costly mistakes such as poor product development and ineffective coordination of supply chain activities (Foogooa 2008, pp. 858-864).Advertising Looking for coursework on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Second, VDL and Brusa Seating have different levels of skills, expertise, and technical infrastructure. These differences limit the ability of the two companies to collaborate through joint research and development activities. As a strategic partner, VDL has to involve Brusa Seating in its product development initiatives to meet its product quality objectives. However, collaboration during product development will be very difficult if the employees from the two companies have different levels of expertise and skills (Trott 2006, pp. 672-681). For instance, VDL’s employees may not understand the procedures that their counterparts at Brusa Seating use to manufacture seats. Lack of special skills in key areas such as management of people, contracts, and processes will limit VDL’s ability to maintain control over the quality of the seats produced by Brusa Seating (Rottman Lacity 2006, pp. 56-63). Finally, cultural differences between the two companies and their countries of origin can limit their ability work as partners. Culture is an important aspect of every business since it determines the way people think, make decisions, communicate, coordinate, and resolve conflicts. The Netherlands and Turkey have very different cultures. Turkey has a high-context culture in which individuals value reputation, politeness, and tradition rather than clarity. The Netherlands, on the other hand, has a low-context culture where people value individualism and achievement. Given these differences, employees from the two companies are likely to have different expectations about the outsourcing partnership (Barthelemy Geyer 2001, pp. 195-202). The resulting communication gaps or misunderstandings can lead to conflicts that will eventually lead to failure. Outsourcing CAD Conversion Services to Outsource2india Developing and executing an effective outsourcing plan involves following five key steps, which are summarized in figure 1. Based on this framework, VDL should consider the following plan to outsource CAD conversion services to Outsource2india Ltd. Figure 1: Framework for Outsourcing Needs Assessment CAD conversion is the process of transforming hardcopy designs into a computer aided design format to facilitate improved storage, accuracy, and easy modification. As a manufacturer, VDL requires effective CAD conversion services to improve the quality of its services. CAD conversion is a vital process that requires advanced expertise, resources, and a dedicated team of professionals. Thus, VDL will require a significant amount of financial capital and expertise to run its own CAD conversion department. This is likely to shift the focus of the company away from its core activity of assembling cars and buses (Mclvor 2008, pp. 24-34). Since CAD conversion is not a core activity, VDL can outsource tasks such as CAD digitization, conversion to MicroStation, conversion of JPG to DWG, and conversion to AutoCAD to Outsource2india (Mclvor 2008, pp. 24-34). By outsourcing these tasks to an experienced third-party, VDL will benefit from time efficiency, quality work, and better utilization of its resources (Kobelsky Robinson 2010, 105-119). In addition, the company will save the costs associated with hiring and training CAD conversion staff and the cost of operating a CAD department. Proposal and Contracting Outsource2india has core competence in providing CAD conversion services to global firms. The company has a flexible capacity to handle any scope of CAD conversion work (Outsource2india 2014). Its capability is characterized by access to high-end technologies and infrastructure, as well as, the use of the latest software. Additionally, the company has in-built redundancy, which will facilitate quick capacity adjustments in response to an increase in demand (Outsource2india 2014). Outsource2india will provide high quality CAD conversion services due to its ability to access a highly skilled workforce. As a specialist in CAD conversion services, Outsource2india has invested in employees with technical skills and expertise in various aspects of computer aided design. As a result, it will provide custom CAD conversion solutions to suit each project’s requirements. Outsource2india provides time zone benefits since the company operates 24 hours, seven days a week. Thus, VDL will benefit from quick turnaround time (Samsudin, Hasim Fuzi 2013, pp. 1-8). Moreover, VDL will save up to 50% of its operating costs due to the low labor costs in India (Outsource2india 2014). Thus, the proposal to contract Outsource2india will enable VDL to enjoy both differentiation and cost advantages (Jensen 2011, pp. 311-326). Communication and Change Management At this stage, Outsource2india will collaborate with VDL to articulate the issues associated with outsourcing CAD conversion services. The communication vehicles that will be used include VDL Group’s newsletters and meetings. The communication activities wil l be used to identify the affected stakeholders and the basis of relationship between Outsource2india and VDL (Tate Ellram 2009, pp. 256-268). In addition, the benefits of outsourcing will be explained to the affected stakeholders to motivate them to support the anticipated changes in organizational design that will occur due to outsourcing CAD conversion services (Oshri, Kotlarsky Willcocks 2009, pp. 94-112). Transition Management This stage will involve establishing the transition governance system to align the objectives and strategies of VDL to Outsource2india’s delivery system (Mani, Barua Whinston 2006, pp. 15-28). The change control process will be implemented to address emerging risks (Oshri, Kotlarsky Willcocks 2009, pp. 94-112). In addition, the timeline for completing the work and the expected deliverables will be clarified at the transition stage. Training programs will be implemented to facilitate knowledge transfer from Outsource2india to VDL. Moreover, rela tionship management initiatives will focus on promoting effective coordination of supply chain activities between Outsource2india and VDL (Oshri, Kotlarsky Willcocks 2009, pp. 94-112). Service Stabilization The transition team will be in charge of the service stabilization stage to ensure that the expected deliverables are achieved. Outsource2india will focus on delivering the CAD conversion services as required by VDL. The relationship governance structure will be used to resolve any issues that might arise during the provision of the outsourced services (Dolgui Proth 2013, pp. 6769-6777). Recommendations According to the agency theory, outsourcing contracts are likely to face significant challenges if the vendor and the client have different goals. Outsourcing is likely to fail if the client is not able to measure the vendor’s output (Ryan Delgado-Sanchez 2009, pp. 52-71). Moreover, opportunistic vendors will always take advantage of the loopholes in the outsourcing cont ract to fulfill their goals at the expense of their clients. In order to avoid these challenges, VDL should use an outcome-based contract where the vendors are paid according to their achievements. This will shift the risks associated with the contract to the vendor, thereby encouraging high productivity (Logan 2000, pp. 27-30). VDL should control vendors’ opportunistic behaviors by increasing its involvement in the production of the outsourced services. Additionally, it should hire a qualified independent consultant to audit the vendors to enhance achievement of the desired quality standards. Second, VDL should visit Brusa Seating’s premises in Turkey to inspect the adequacy of its production capacity and to identify the challenges that the company is likely to face in producing seats. This will enable VDL to identify the risks that are likely to reduce the effectiveness of its outsourcing contract with Brusa Seating in order to take timely actions (Kroes Ghosh 2009, pp. 124-143). Finally, VDL should invest in IT and communication techniques to improve its supply chain system. This involves integrating its supply chain system with those of its outsourcing partners to facilitate effective exchange of information and coordination of activities. Integration can be achieved through technologies such as cloud computing and business-to-business e-commerce platforms. Furthermore, VDL should train its employees on various languages to overcome communication challenges. This will facilitate effective communication between the company and its outsourcing partners who are based in various countries. References Aktas, E, Agaran, B, Ulengin, F Onsel, S 2011, The Use of Outsourcing Logistics: The Case of Turkey, Transportation Research Part C, vol. 19 no. 1, pp. 833-852. Barthelemy, J Geyer, D 2001, IT Outsourcing: Evidence from France and Germany, European Management, vol. 19 no. 2, pp. 195-202. Belcourt, M 2006, Outsourcing: The Benefits and the Risks, H uman Resources Management Review, vol. 16 no. 1, pp. 269-279. Brusa 2014, About Brusa, brusaseating.eu/. Dolgui, A Proth, J 2013, Outsourcing: Definitions and Analysis, International Journal of Product Research, vol. 51 no. 23, pp. 6769-6777. Foogooa, R 2008, IS Outsourcing: A Strategic Perspective, Business Process Management Journal, vol. 14 no. 6, pp. 858-864. Gabriela, K Clark, D 2006, Outsourcing to China: Risks and Benefits, Computer Law and Security Report, vol. 22 no. 2, pp. 250-253. Jensen, P 2012, A Passage to India: A Dual Case Study of Activities, Processes and Resources in Offshore Outsourcing of Advanced Services, Journal of World Business, vol. 47 no. 1, pp. 311-326. Kobelsky, K Robinson, M 2009, The Impact of Outsourcing on Information Technology Spending, International Journal of Accounting Information systems, vol. 11, no. 1, pp. 105-119. Kroes, J Ghosh, S 2009, Outsourcing Congruence with Competitive Priorities: Impact on Supply Chain and Firm Performance, Jou rnal of Operations Management, 28 no. 1, pp. 124-143. Liu, Z Nagurney, A 2011, Supply Chain Outsourcing Under Exchange Rate Risk and Competition, Omega, vol. 39 no. 1, pp. 539-549. Logan, M 2000, Using Agency Theory to Design Successful Outsourcing relationships, International Journal of Logistics Management, vol. 11 no. 2, pp. 21-31. Mani, D, Barua, A Whinston, A 2006, Successful Governing Business Process Outsourcing Relationships, MIS Quarterly Executive, vol. 5 no. 1, pp. 15-29. Mclvor, R 2008, What is the Right Outsourcing Strategy for Your Process? European Management Journal, vol. 26 no. 2, pp. 24-34. Oshri, I, Kotlarsky, J Willcocks, L 2009, The Handbook of Global Outsourcing and Offshoring, Palgrave Macmillan, Landon. Outsource2india 2014, Why Outsource2india, https://www.outsource2india.com/. Quelin, B Duamel, F 2003, Bringing Together Strategic Outsourcing and Corporate Strategy: Outsourcing Motives and Risks, European Management Journal, vol. 21 no. 5, pp. 647-661. R ottman, J Lacity, M 2006, Proven Practices for Effective Offshoring IT Work, MIT Sloan Management Review, vol. 47 no. 3, pp. 56-63. Ryan, B Delgado-Sanchez, A 2009, Outsourcing relationships: A Case of Accounting Surveillance, Journal of Accounting and Organizational Change, vol. 6 no. 1, pp. 52-71. Samsudin, N, Hasim, R Fuzi, S 2013, Electronic Government Outsourcing Issues in Malaysia, Journal of Outsourcing and Organizational Information on Management, vol. 20 no. 3, pp. 1-8. Trott, A 2006, Innovation Risks of Strategic Outsourcing, Technovation, vol. 26 no. 1, pp. 672-681. Tate, W Ellram, L 2009, Offshore Outsourcing: A Managerial Framework, Journal of Business and Industrial Marketing, vol. 23 no. 4, pp. 256-268. Tayauova, G 2012, Advantages and Disadvantages of Outsourcing: Analysis of Outsourcing Practices of Kazakhstan Banks, Procedia Social and Behavioral Sciences, vol. 41 no. 1, pp. 188-195. Varadarajan, R 2008, Outsourcing: Think More Expansively, Journal of Business Research, vol. 62 no. 2, pp. 1165-1172. VDL 2014, Profile, https://www.vdlgroep.com/nl. Weidenbaum, M 2005, Outsourcing: Pros and Cons, Business Horizon, vol. 48 no. 1, pp. 311-315. Williamson, O 2008, Outsourcing: Transaction Cost Economics and Supply Chain Management, Journal of Supply Chain Management, vol. 44 no. 2, pp. 5-14. World Bank 2014, Data Bank, worldbank.org/.

buy custom Characteristics of Nation-States essay

buy custom Characteristics of Nation-States essay Since time immemorial, people have realized that unity is strength and as such have learnt to embrace the importance of living together as a family. Living together is possible only if people are united by some common factors. A nation refers to a people of the same race that have come to live together and possibly have a common language for communication. In other words, a nation only defines a socio-cultural entity and does not take the concept of formal politics in consideration. On the other hand, a state is a well-defined political entity that is characterized by a stable government, permanent population and ability to relate with other states (Suer, 2009). A modern nation-state refers to a permanent population of people that are bound together by a stable government and common socio-cultural factors. A modern nation-state is characterized by several core features. Firstly, it has a well-defined geographical boundary that assists it excise its jurisdiction over its citizens (George Emily, 2007). Secondly, its territory is governed by sovereignty and independent of any external influence from other nation-states. Thirdly, a modern nation-state government comprises public offices, with each having a role to play in the governing of the nation-state. Through these public offices, a nation-state is able to take control and administration of its territory and subjects (George Emily, 2007). A modern nation-state has well marked and protected boundaries, often fenced with specific entry and exit points. The fences are under 24-hour security watch by border gourds, and sometimes armies. Leadership of this kind of state enjoys monopoly through the lawful application of coercion over its subject. Lastly, citizens of a nation-state are entitled to minimum sense of national identity and its government does require loyalty of its citizens to rule (George Emily, 2007). Examples of a Nation, a State and a Nation-State Barbados is an independent Caribbean island and a typical example of a nation with a stable economy. For entry to and exit from this nation, one must have a valid passport or visa implying that it has a well-guarded territory. Its population is comprised of people of the same race who use English as their common language of communication. Barbados leadership is externally influenced by some nation-states, such as the U.S. (Barriton, 2006). For a state, the Dominican Republic stands out as the best example. It has a representative type of government with a multiparty system. The governments functions are carried out through the principle government officials, such as President Leonel Reyna, ministers and other officials (Suer, 2009). The Dominican Republic has a stable economy with an estimated nominal GDP of $51.6 billion and an annual growth of 7.8%. It has a permanent population half of which lives in rural areas. It also enjoys good relations with other nations, such as the U.S. However, the Dominican Republic is not completely independent, since its leadership is at times subjected to foreign influence (Suer, 2009). France was one of the earliest countries to transform from feudalism to a nation-state. It is a typical example that illustrates what a nation-state really is. It has a permanent population of about 63.1 million people with French as their national language. Its central government, currently headed by President Nicolas Sarkozy assisted by te Prime Minister, is very stable. There is proper interrelation between France and other nation-states, such as the United States of America. Moreover, Frances territory is well-guarded by the French military as per the UN Security Council Counterterrorism Committee (George Emily, 2007). The United States as a Nation-State The United States is made up of 50 states with each ruling itself through an organized state of government. Each state has its own population and a territory. These states are not completely independent since they are influenced by national laws. The United States has been able to maintain its nation-state status through good address and understanding of fixed territory, sovereignty and common culture (Goudie, 2006). The United States has been working hard towards fostering fixed territory in its nation-states. This move is geared at assisting the U.S. government to exercise its political power on the areas over which the United States has dominion. As defined in the Federal Constitution, the United States territories include the states of the Union. Particular inhabitants of a given U.S. territory do not enjoy political and social parity with inhabitants of other areas which constitute the constitution (Goudie, 2006). The U.S. government through sovereignty authorizes the indigenous tribes to rule themselves within the United States territory. These tribal nations within the U.S. are recognized by the Federal Government as Domestic Dependant Nations. The federal government has formulated laws that assist it to define how the Federal, State and Tribal governments should be related. Full sovereignty was granted to these tribal nations by the constitution which was later enhanced by Federal Laws (Russell,2009). It is obvious that a powerful institutional order like the one experienced in the U.S. must have a powerful culture. The U.S. has well-defined cultures, such as marriage culture that condemns divorce for couples in their sixties onwards. There is an English language as a common mode of communication. All these common cultures are made known to the native inhabitants through media, schools and other effective modes (Russell,2009). The U.S. is a very influential country in the world. It has many foreign policy objectives that help it relate with foreign nations, as well as interactions standards for its organizations and citizens. Goudie (2006) asserts that Isolationism and Neutrality are some of the foreign policies that ensure that the U.S. stays out of international war and also refrains from selling firearms to any county participating in such wars. The policy also prevents the U.S. from allowing any of the belligerent warships to seek refuge from either force (Goudie, 2006). European Union as a Transnational Entity The European Union was first established as a European Community. It owes its creation to the efforts of the major governments of postwar continental Europe who wanted to raise the continent from the fractures caused by the Second World War. Its major objective was to unify European coal and steel industries to manufacture a lot of munitions to boost the then stumbling European economy. This action gave rise to the European Coal and Steel Community (ECSC) in 1951 with the help of Treaty formed by France, Italy, Netherlands, Belgium, WWest Germany, and Luxembourg. In 1957, these six countries transformed the ECSC into the EEC and then to the European Atomic Energy Community (EAEC) (El-Agraa Ardy, 2011). In 1957, the need to consolidate the operations of the ECSC, EEC and EAEC, commonly known as European Communities, arose (El-Agraa Ardy, 2011). In 1965, a single commission and a single council that united the European community were formed through the Treaty of Mergers signed in Brussels. The European Union was then formed from the European communities in 1992 with the main objective of expanding and redefining the influence of the communities to merge some of their operations (El-Agraa Ardy, 2011). Currently, France, Italy, Netherlands, Belgium, West Germany, Luxembourg, Bulgaria, Czech Republic, Ireland, Finland, Portugal, Spain, Sweden, Denmark and United Kingdom are some of its members (El-Agraa Ardy, 2011). The EU institutions include the European Parliament, Council of Ministers, European Commission, Court of Justice, Court of Auditors, European Investment Bank, European and Social Committee and European Monetary Institute (Weihrich, 2007). The contemporary function of the European Union is to unite the member states in order to maximize the collective abilities of these members. This is done through authorizing members freedom of movement, free trade and freedom of job choice within the territory of the EU. Another function that the Union undertakes is the counteraction of the United States as the global super power (Bindi, 2010). The main objectives of the European Union include ensuring that peace and understanding are preserved and strengthened among the member countries. This is achievable through the establishment of good relations with the neighbor countries based on equality and reciprocity principles. Its second objective is to conduct extensive promotion of its economy. This will be achieved through increasing the exports of the EU products and attraction of more foreign investments (Bindi, 2010). Engagement of Nation-State and Transnational Entities in Foreign Policy Before getting involved in foreign policy, it is up to the leadership of these nation-states and transnational entities to ensure that the policy is beneficial to them. The benefits could be evaluated in terms of political and economic effects, as well as security issues. Cebeci (2011) asserts that nation-states and entities engage in foreign policies in two ways; firstly, they economically penetrate different countries through the establishment of multinational corporations; secondly, through influencing the political and military systems of the targeted countries. These are the measures that have helped the United-States to remain the sole superpower with a strong economy for many years (Cebeci, 2011). Not only does the engagement benefit nation-states and transnational entities, but also assists targeted countries politically and economically. In the past, the European Union assisted these countries in reviving their economies in tough situations by writing off their long and outstanding debts. These bodies also assist in promoting democracy in the countries through eradication of dictatorship rule. However, there are a number of side effects suffered by targeted countries. For instance, they become dependent on the EU and, therefore, may be susceptible to external influence (Jorgenson, 2009). Buy custom Characteristics of Nation-States essay

Hitting the Nail on the Head

Hitting the Nail on the Head Hitting the Nail on the Head Hitting the Nail on the Head By Maeve Maddox Somewhere, in an email or on Facebook or on a news blog, I saw this: But she hammered the head on the nail with this quote. How odd, I thought. Shouldn’t it be, â€Å"she hammered the nail on the head†? A Google search brings up 683,000 results for â€Å"hit the head on the nail† compared to 1,580,000 for â€Å"hit the nail on the head.† The phrase â€Å"the head on the nail† registers on the Ngram Viewer, but barely, compared to â€Å"the nail on the head.† The earliest citation of the expression in the OED is dated 1438. It’s not so easy to hit a nail squarely on the head. For that reason, â€Å"to hit the nail on the head† is a term of approbation. Figuratively, people who hit the nail on the head succeed in accomplishing what they are aiming for. Most of the examples I’ve found of the reversed idiom have been in readers’ comments, but I have found a few in presumably professional writing. For example, this one, with inexplicable hyphenation, is from a technical review: You have to remember though that Apple may or may not be upgrading the iPad again before the end of the year (this comes from John Gruber a known Apple pundit that tends to hit-the-head-on-the-nail when it comes to Apple rumors). A site dedicated to test preparation has this topic header: SAT Improvement or Hit the head on the nail This one is from a sports blog: These commercials are coolbut rarely do they hit the head on the nail of a player like Nike has done with these Calvin Johnson, P. Diddy advertisements. I found one example in which the reversal seems intended to be humorous: I could try for a long time to hit the head on the nail (as one of my writing students once said)- Writing advice site A review of the film Fifty Shades of Grey includes the following bit of dialogue: Christian – Have you been drinking?   Ana – Yup, you hit the head on the nail. It could be that this reversal is the result of Ana’s alcohol-impaired thinking. Changing â€Å"hit the nail on the head† to â€Å"hit the head on the nail† is jarring, to say the least. Writers who wish to be taken seriously will avoid doing it. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Expressions category, check our popular posts, or choose a related post below:How to Format a US Business Letter36 Poetry TermsPresent Participle as Adjective

Richard Nixon Essay Example | Topics and Well Written Essays - 1750 words

Richard Nixon - Essay Example CRP began a massive fund-raising campaign aimed at collecting as much money as possible before the reporting contributions became mandatory under a new law, and the money could be used for any purpose. Besides this official objective, under Nixon's orders, members of the CRP began conducting electronic surveillance of government officials and members of the press, in an attempt to control the flow of information regarding Nixon's activities. In the period between 1969 and 1971, wiretaps were installed on telephones around Washington DC in the name of "national security," and the Oval Office was equipped with voice-activated tape recorders, a decision that would later come back to haunt Nixon. In 1971, the CRP began to ramp up its political intelligence-gathering activities in preparation for the upcoming presidential election. The group planned to infiltrate the Democratic National Committee (DNC) headquarters, located on the sixth floor of the Watergate apartment and office complex in Washington DC. Leading the conspiracy were US Attorney General John Mitchell, deputy director of the CRP Jeb Magruder, and CRP counsel G. Gordon Liddy. Their goal was to photograph campaign materials and place bugging devices in the office of Democratic National Chairman Lawrence F. ... The Watergate break-in eventually exposed a whole array of campaign practices designed to disrupt or embarrass the political opposition, all of which commentators later summarized as 'dirty tricks.' Investigation and Prosecution When making an attempt to break into the Watergate building in order to fix up previously installed wiretapping equipment, all the burglars were caught red-handed by the police on information of the building guard. The number of these burglars was five including Bernard Barker, Virgilio Gonzlez, Eugenio Martnez, James W. McCord, Jr., and Frank Sturgis. After investigation the police found telephone number of E. Howard Hunt in McCord's notebook who was Chief of Security at the Committee to Re-elect the President (CRP). This was a strong proof that strengthens the idea that there was surely a connection between the burglars and someone close to the President. Investigation started to find a link between McCord and the CIA and finally it was discovered that the CRP bribed McCord. The White House denied any knowledge of the break in. Six days later, John Haldeman, the White House Chief of Staff, met with Nixon to tell him that the FBI had traced the money found in the burglars' possession to CREEP. In a tape-recorded conversation, Nixon asked Haldeman to get in touch with the CIA to have the FBI's investigation stopped. In spring 1973, three of the five indicted men in the Watergate break-in pled guilty, while the remaining two were found guilty after a trial. The Cuban men were each sentenced to forty years in prison, and Hunt was sentenced to thirty-five. McCord sent word to Judge Sirica that he was willing to cooperate in exchange for a reduced sentence. White House counsel John Dean also approached the Judge and offered his

Financial Analysis of Granite Construction Industry Plc Essay

Financial Analysis of Granite Construction Industry Plc - Essay Example (Penman, 2003). In addition, investors consult investment analysts who provide an almost endless stream of information and recommendations to sort out. There are often claims that some shares are undervalued and vice versa. (Penman, 2003). This information at times becomes confusing leaving the investor with no clear indication of what the true prices of stocks should be. (Penman, 2003). Under such circumstances, the investor is forced to make the investment decision following his/her instinct or based on the information provided by the market. (Penman, 2003, Kaplan & Norton 1992, 1993). Investors who make the decision based on instinct are referred to as intuitive investors while those who make investment decisions based on capital market efficiency are referred to as passive investors. (Penman, 2003). Passive investors carry out their investment decisions based on the assumption that the market price is a fair price for the risk taken, that is, that market forces have driven the price to the appropriate point. (Penman, 2003). These investment mechanisms appear to be very simple, as they do not require much effort. (Penman, 2003: pp 3). However, both investors run risks that are even more than the risks of the firms they are investing in since they can either pay too much or sell for less and as a result suffer a decrease in returns on their investments. (Penman, 2003). According to Penman (2003), the intuitive investor has the problem of the intuitive bridge builder: "one may be pleased with one's intuition but, before building gets underway, it might pay to check that intuition against the calculations prescribed by modern engineering as not doing so, may lead to disaster". (Penman, 2003: pp 3). The passive investor runs the risks of either paying too much or selling for less should stocks be mispriced. (Penman, 2003). Although economic and modern finance theory (Bodie et al, 2002; Penman, 2003) predict that capital markets are perfect it is good practice to check before taking action. (Penman, 2003). Therefore, both the passive and intuitive investor run the risk of trading with someone who has done his homework well, that is, someone who has analysed the information thoroughly. (Penman, 2003). This study is aimed at carrying out financial analyses of Granite Construction Plc with particular focus on the liquidity, profitability and solvency ratio so as to gain a reasonable basis for providing recommendations to investors and suppliers on whether to invest or continue business for the company, and finally see the various methods through which the company access the capital market. Having said this,

Economic Growth and Economic Fluctuations Essay

Economic Growth and Economic Fluctuations - Essay Example The economic theories and models examined would be the Solow Model, the human capital theory and screening model. The effects of governmental policies on the openness of the economy will also be examined here. The data given will serve as guiding force in the determination of the ability of our study country to achieve rapid short-term economic growth and long-term sustenance of a steady rate of growth. When charged with the responsibility of determining the best policy to foster long-term economic growth, it is vital to analyze many economic factors and trends. These factors include the impact of productivity, savings and depreciation on the economy as well as the economy's ability to sustain long-term growth under the given circumstances. In so doing, the Solow Model can serve as a general guidance in determining whether an economy can sustain long-term growth given the present combination of factors. In order to examine this it is vital to offer an operational definition of Solow's model. Solow's model is a model the increase in the capacity of a country's economy to produce goods and services over time. This increase theoretically implies that the well-being of the citizens will improve over time. According to Solow the increase can be determined utilizing a formula whereby the GDP is determined by combinations of inputs. Solow simplifies this very intricate function by presumi ng certain factors are held constant. One of the most fundamental simplifications is the assumption that a single good is produced by the economy in question. In so doing, the GDP is greatly simplified and its implications are clearly depicted. The other assumptions of the Solow model include the assumption that all data is collected on a time continuum, a single good is produced with a constant technology, there is no governmental or international trade, all factors of production are utilized to their full capacity, the growth within the labor force is constant. Utilizing the relationship existent between the savings and the investment and extending the Solow model further, we can assume that the depreciation rate, the amount of capital depreciation and the change in capital over time are held constant. The implications of this are such that in the long-run, we are able to yield a production function whereby Y = AF(K, L). Essentially, it establishes a relationship between capital stock and the economic output. Taking this one step further and assuming that labor input is held constant and there is a positive correlation between changes in capital and output we can see that in time additions to capital stock will yield additions in output. This relationship can be expressed in terms of labor and economic output. In so doing, we can determine the economic output for each individual in the society. The pertinent equation is y=Y/L and can be graphically depicted as follows: The Impact of Savings Rate on Long-term Economic Growth After having examined the production function, we need to examine a prudent question-Is it possible for our country of study to catch up with richer countries and at what rate will it occur In examining that question, we need to realize that according