Soto Like Mexicans Essay Essay Example

Soto Like Mexicans Essay Paper My grandma gave me bad advice and good advice when I was in my early teens. For the bad advice. she said that I should go a Barber because they made good money and listened to the wireless all twenty-four hours. â€Å"Honey. they don’t work como burros. † she would state every clip I visited her. She made the sound of donkeys hee-hawing. â€Å"Like that. honey! † For the good advice. she said that I should get married a Mexican miss. â€Å"No Okies. hijo†Ã¢â‚¬â€she would say— â€Å"Look. my boy. He marry one and they fight every twenty-four hours about I don’t cognize what and I don’t cognize what. † For her. everyone who wasn’t Mexican. black. or Asiatic were Okies. We will write a custom essay sample on Soto Like Mexicans Essay specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Soto Like Mexicans Essay specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Soto Like Mexicans Essay specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The Gallic were Okies. the Italians in suits were Okies. When I asked about Jews. whom I had read about. she asked for a image. I rode place on my bike and returned with a calendar picturing the of import races of the universe. â€Å"Pues si. boy Okies tambien! † she said. nodding her caput. She waved the calendar off and we went to the life room where she lectured me on the virtuousnesss of the Mexican miss: foremost. she could cook and. second. she acted like a adult female. non a adult male. in her husband’s place. She said she would state me about a 3rd when I got a small older. I asked my female parent about it—becoming a Barber and marrying Mexican. She was in the kitchen. Steam curled from a pot of boiling beans. the wireless was on. looking every bit knee bend as a loaf of staff of life. â€Å"Well. if you want to be a barber— they say they make good money. † She slapped a unit of ammunition steak with a knife. her spectacless stealing down with each work stoppage. She stopped and looked up. â€Å"If you find a good Mexican miss. get married her of class. † She returned to slapping the meat and I went to the backyard where my brother and David King were sitting on the lawn experiencing the interior of their cheeks. â€Å"This is what girls feel like. † my brother said. rubbing the interior of his cheek. David put three fingers inside his oral cavity and scratched. I ignored them and climbed the back fencing to see my best friend. Scott. a second-generation Okie. I called him and his female parent pointed to the side of the house where his sleeping room was a little aluminium dawdler. the sort you gawk at when they’re flipped over on the expressway. wheels whirling in the air. I went around to happen Scott pitching quoitss. I picked up a set of rusty 1s and joined him. While we played. we talked about school and friends and record albums. The quoitss scuffed up soil. sometimes pealing the Fe that threw out a meager shadow like a sundial. After three argued-over games. we pulled two oranges each from his tree and started down the back street still speaking school and friends and record albums. We pulled more oranges from the back street and talked about who we would get married. â€Å"No discourtesy. Scott. † I said. with an orange piece in my oral cavity. â€Å"but I would neer get married an Okie. † We walked in measure. about touching. with a sled of shadows dragging behind us. â€Å"No discourtesy. Gary. † Scott said. â€Å"but I would neer get married a Mexican. † I looked at him: a Fang of orange piece showed from his crunching oral cavity. I didn’t think anything of it. He had his miss and I had mine. But our seventh-grade vision was the same: to get married. acquire occupations. purchase autos and possibly a house if we had money left over. 26 The Short Story We talked about our hereafter lives until. to our surprise. we were on the business district promenade. two stat mis from place. We bought a bag of Zea mays everta at Penneys and sat on a bench near the fountain watching Mexican and Okie misss base on balls. â€Å"That one’s mine. † I pointed with my mentum when a miss with superciliums arched into black rainbows ambled by. â€Å"She’s cute. † Scott said about a miss with xanthous hair and a mouthful of gum. We dreamed out loud. our mentums busy indicating out misss. We agreed that we couldn’t wait to go work forces and raise them onto our laps. But the adult female I married was non Mexican but Nipponese. It was a surprise to me. For old ages. I went about wide-eyed in my hunt for the brown miss in a white frock at a dance. I searched the resort area at the baseball diamond. When the misss raced for ground balls. their hair bounced like something that couldn’t be caught. When they sat together in the lunchroom. caputs pressed together. I knew they were speaking about us Mexican cats. I saw them and dreamed them. I threw my face into my pillow. doing up sentences that were good as in the films. But when I was twenty. I fell in love with this other miss who worried my female parent. who had my grandma inquiring one time once more to see the calendar of the Important Races of the World. I told her I had thrown it off old ages before. I took a much-glanced-at snapshot from my billfold. We looked at it together. in silence. Then grandmother reclined in her chair. illume a coffin nail. and said. â€Å"Es reasonably. † She blew and asked with all her concern pushed up to her brow: â€Å"Chinese? † I was in love and there was no looking back. She was the 1. I told my female parent who was slapping beefburger into cakes. â€Å"Well. certain if you want to get married her. ’ she said. But the more I talked. the more concerned she became. Later I began to worry. Be it all a error? â€Å"Marry a Mexican miss. † I heard my female parents say in my head. I heard it at breakfast. I heard it over math jobs. between Western Civilization and cultural geographics. But so one afternoon while I was thumbing place from school. it struck me like a baseball in the dorsum: my female parent wanted me to get married person of my ain societal class—a hapless miss. I considered my bride-to-be. Carolyn. and she didn’t expression hapless. though I knew she came from a household of farm workers and pull-yourself-upby-your-bootstraps ranchers. I asked my brother. who was get marrieding Mexican hapless that autumn. if I should get married a hapless miss. He screamed â€Å"Yeah† above his awful guitar playing in his sleeping room. I considered my sister who had married Mexican. Cousins were dating Mexican. Uncles were remarrying hapless adult females. I asked Scott. who was still my best friend. and he said. â€Å"She’s excessively good for you. so you better non. † I worried about it until Carolyn took me place to run into her parents. We drove in her Plymouth until the houses gave manner to farms and spreads and eventually her house 50 pess from the main road. When we pulled into the thrust. I panicked and begged Carolyn to do a U-turn and travel back so we could speak about it over a sodium carbonate. She pinched my cheek. naming me a â€Å"silly male child. † I felt better. though. when I got out of the auto and saw the house: the chipped pigment. a chapped window. boards for a walk to the back door. There were corroding autos near the barn. A tractor with a cyberspace of spiderwebs under a mulberry. A field. A bale of biting wire like children’s scrabbling tilting against an empty poulet henhouse. Carolyn took my manus and pulled me to my future mother-in-law. who was coming out to recognize us. We had tiffin: sandwiches. murphy french friess. and iced tea. Carolyn and her female parent talked largely about neighbours and the fold at the JapaneseThe Short Story 27 Methodist Church in West Fresno. Her male parent. who was in khaki work apparels. excused himself with a moving ridge that was about a salutation and went outside. I heard a truck start. a Canis familiaris bark. and so the truck rattle off. Carolyn’s female parent offered another sandwich. but I declined with a shingle of my caput and a smiling. I looked around when I could. when I was non stating over and over that I was a college pupil. suggesting that I could take attention of her girl. I shifted my chair. I saw newspapers piled in corners. dust-covered cereal boxes and acetum bottles in corners. The wallpaper was bubbled from rain that had come in from a bad roof. Dust. Dust ballad on lamp sunglassess and window Sillss. These people are merely like Mexicans. I thought. Poor people. Carolyn’s female parent asked me through Carolyn if I would wish a sushi. A home base of black and white things were held in forepart of me. I took one. wide-eyed. and turned it over like a foreign coin. I was seize with teething into one when I saw a kitty crawl up the window screen over the sink. I chewed and the kitty opened its oral cavity of panic as she crawled higher. desiring in to paw the leftovers from our home bases. I looked at Carolyn who said that the cat was merely demoing off. I looked up in clip to see it fall. It crawled up. so fell once more. We talked for an hr and had apple pie and java. easy. Finally. we got up with Carolyn taking my manus. Slightly abashed. I tried to draw off but her clasp held me. I let her hold her manner as she led me down the hallway with her female parent right behind me. When I opened the door. I was startled by a kitten clinging to the screen door. its oral cavity shouting â€Å"cat nutrient. Canis familiaris biscuits. sushi†¦ . † I opened the door and the kitty. still keeping on. whined in the linguistic communication of hungry animate beings. When I got into Carolyn’s auto. I looked back: the cat was still cleaving. I asked Carolyn if it were perchance hungry. but she said the cat was being silly. She started the auto. waved to her female parent. and bounced us over the rain-pocked thrust. chucking my thigh for being her lover babe. Carolyn waved once more. I looked back. wave. so goggling at a window screen. where there were now three kitties clawing and shouting to acquire in. Like Mexicans. I thought. I remembered the Molinas and how the cats clung to their screen— cats they shot down with squirt guns. On the main road. I felt happy. pleased by it all. I patted Carolyn’s thigh. Her people were similar Mexicans. merely different.

Tok History Essays

Tok History Essays Tok History Paper Tok History Paper Its purpose is to absorb the main idea of what happened in the past and how we will adjust or change to such events. In order for this to take place, we must then just accept certain facts, or myths, that we really arent sure of because we wont ever be completely assured of this information, but it still ends up being part of the past. This leads to the second fragment of the quote, that history is hope. Truth is, without a doubt, we wont ever be able to go back in time and relive certain events that wed like to see or to prove or disprove. For the time being, though, its imperative that we must have faith that all of the history that were being exposed to is the majority of the truth. We have let historians screen what they believe to be relevant and meaningful and therefore it is only fair that we accept such history and hope that it is true because we personally wont ever presence the actual occurrence of events that took place in the past. However, there is indeed a significant amount of history that is reality that in fact happened. Whether we were there when it happened, we have been told from extremely reliable sources or we are let known from undeniable evidence, there does exist history that is completely true. We may not know the background to certain events and the true causes or motivations, but we can certainly see the outskirts and the effects of such incidents and that is the truth. If we take for example the Bible and its teachings, this is surely a clichi d example, but the effect that it has had in my life, proves the validity of the quote that was previously mentioned. Revisionists will always question events that are depicted in the Bible for their supernatural nature whether it is the creation of humanity as a result from Adam and Eve or the fact that Jesus rose again three days later after he was crucified. Heck, its difficult for me to truly believe these concepts even if I understand them. This myth part ends up being the counterargument in itself because history is supposed to be the truth of what happened. A myth ultimately has no evidence to support its claims. However, I must admit that all these myths that my Catholic religion has nurtured to me trust in, and even more so because of the fact that I committed to my religion after First Communion, confirmed myself to being a Catholic only a few years ago and still go to church every Sunday, I believe in them. I hope that theyre mostly truths because even though they have been disproven as of late, I still choose to have faith in God because Ive grown to pray to him and venerate him all my life and he is my inspiration in times of despair. Now, the overall implication of the initial quote in the importance of knowing history is quite simple. The quote encompasses what history truly is made of and how valuable history is. History allows us to consider the perceptions, emotions and reasons that people had when writing the past and then make connections of this accepted past with the present and the future in order to see its true relevance and significance. Moreover, asking questions about the past allows us to prepare and think about how to react in the present and for the future. In a life with no history, humans would discover the same, new things everyday and society would never advance. Knowledge for development would not be acquired. What is good and what is evil? What is right and what is wrong? Such simple questions are the basis of discussion in terms of the Area of Knowledge (AOK) called Ethics. However, if we were to define ethics, we should consider the quote, Ethics is part myth, part hope and party reality. If we take for example the role of ethics in my life, although it is pretty present, it surges in various ways and maybe not so apparent at first. For example, the relationship I share with my mom. I truly love her and care for her greatly, however, I must admit that I constantly lie to her to a certain extent. For instance, when I go out in weekends, she restricts me in such a way that I feel I cant really enjoy myself and spend a nice time. So in response, I tell her part of the truth. I let her know where Ill be at first, but not were I plan to go or the people that will be with me. Now, the myth is that its unethical and wrong to lie to your mom. However, what if it turns out to be better for the both of us. I ultimately feel independent and enjoy my days off, while she doesnt have to bear with the worry or the fear that something bad might happen to me. Does this win-win effect end up being morally wrong? Furthermore, ethics is hope because I believe that despite my untruths, and the fact that the myth says that lying is an awful vice, it might actually be a virtue to keep my mom from carrying the burden of a volatile son and instead hope that I am doing a good deed by letting her believe that I do everything as she says and under her watch. The reality of ethics, however, is that hiding the truth will always be incorrect and morally wrong and especially when its directed towards your own mom. Nonetheless, through this quote and this example, were able to see that ethics plays a major role in the immediate consequences that are present in everyday life especially as we gain more knowledge of them and how we decided to apply them. In conclusion, I believe that history and ethics play a significant role in the way we attain knowledge and they are the main basis of who we are as a whole and who we will become in response to grasping this new knowledge. They are, however, part myths, part hope and part reality, but that doesnt change the fact that theyre crucial to the expansion and employment of our knowledge. Word Count: 1600 Bibliography 1. The Bible, Truth and Reality . Bible prophecy: world government| RFID |climate change| EU |Israel| Middle East | apostate church | persecution. N. p. , n. d. Web. 9 May 2011. seekingtruth. co. uk/.

An Analysis of Why Settlers Had Conflicting Approach in Regards To British Rules

An Analysis of Why Settlers Had Conflicting Approach in Regards To British Rules Why Did Some Colonists Want to Break Away More Than Others? Although it was the consensus that most colonists opposed being British subjects, some opposed it more than others. Sailors and those in commerce as well as the common family farmer both were some of the most provoked. The colonists were not used to the British imposing their rule as much as it was after the Seven Years War. Wars cost money, this is a fact. The British needed some income in order to pay for it. Being British subjects and being seen as a â€Å"cash cow† the British demanded that the colonists pay their fair share of the war. â€Å"To finance the wars, Britain’s public expenditures, taxes, and national debt rose enormously.† Taxes were imposed on the colonists and became lovingly known as the â€Å"Intolerable Acts†. Some acts passed really weren’t that bad. For example, the Stamp Act, weren’t necessarily bad. It only raised the price of paper nominally, but the British controlled the supply of paper. The British knew who was buying paper and why. The colonists didn’t like this invasion of privacy in the slightest. Some acts, like the Boston Port Act, were much more serious. The closure of the harbor put a major dent in colonial commer ce. This angered sailors. These Intolerable Acts caused uprise in the colonies. Sailors and slaves were so angered a â€Å"motley crew† formed. As Rediker and Linebaugh describe it, they were â€Å"eighty strong and warm with drink and anger† . This group came to protest at the house of Henry Laurens. Laurens was a wealthy Charleston merchant that also happened to be storing the paper that the colonists would be forced to buy from the English. The way of life of sailors and other merchants were threatened and they didn’t take kindly to it. Simple family farmers also heavily opposed these new taxes and the way the colonies were headed as a whole. Obtaining land was becoming harder and British taxes made farm life difficult. Subsistence farming revolved around the idea of self support. These people had no need for money, so they didn’t have much. They produced for themselves and bartered for what they didn’t have. Taxes which were to be paid in real money was difficult. This annoyance angered the farmers. The farmers were particularly aggravated. They left England in order to farm free from government interference and that is exactly what was beginning to happen. Though, there was a group known as Loyalists that did not want to break free from England. For reasons that will be explained shortly this group wanted to remain loyal to the British crown. For reasons ranging from business to politics this group did not want to break away from England. Some held business interests in England and feared breaking off would permanently break them off from one of the biggest markets in the world. Some were employed by England for regulatory reasons. Some were simply too afraid of the uncertainty that came with going up against one of the biggest empires in the world. Elites enjoyed their role in British society and feared in a new society that wouldn’t be so lucky. The common colonists saw a further and further divide between themselves and the British. The British soldiers were crude and uneducated. The colonists at this point were several generations from being British born. This generation was raised in the colonies by colonists. They identified more with other colonists than with the British ruling them. They were reminded of the rigid British class system observing officers and common soldiers interact. They had left England in an attempt to avoid this. This growing feeling of separation as well as the British overstepping their bounds allowed anger and resentment to simmer to the point of revolution. The colonists were about to take on the most powerful empire in the world.

Does football promote freindship or enmity Essay

Does football promote freindship or enmity - Essay Example Apparently, most soccer fans prefer watching matches in social places such as clubs, restaurants or at home as long as they are in the company of people who have interest in soccer. Consequently, a bond is created between these people, who may be strangers, since they will have a common topic for discussion throughout the 90 minutes. In this context, it is true to say that football facilitates and enhances the creation of friendships between strangers however short lived they might be (Foer 39). Similarly, football promotes friendship in terms of suppressing racial mentalities that promote discrimination. The world cup for example sets an international stage for teams from different countries, some of which have been in conflict with each other for a long time due to political or ideological differences. Whenever these teams are playing, the people watching get to forget their differences, especially due to the fact that there are high standards set for officiating matches such that every participant feels comfortable with the results. This is made better by the display of sportsmanship by footballers whereby they shake hands even after one of them has committed a foul against the other. By doing so, they portray a high level of emotional intelligence which becomes a good example for those who are watching.

Contract Law Master Case Study Example | Topics and Well Written Essays - 3500 words

Contract Law Master - Case Study Example This was also the case in Goedecke v Kirwan1where the Court found that an agreement on price was a necessary term of offer and acceptance; hence no final, enforceable contract existed since price had not been agreed upon. Thus Hilary may have some rights under the option, but they may not be fully enforceable. In the case of Barack, he seeks re-possession of his flat. Under the option clause in the agreement, Barack may not have the automatic right to reposses the flat, when there is an option available to the lessee to continue. In the case of Butts v O'Dwyer2 a similar situation arose, where there was an option to purchase the lease property subject to fixing of a price by the third party. In this instance, the Court concluded that it could correctly be said that the complete was incomplete until the price was fixed. The existence of the option indicated that the owner had an obligation to do everything in his power to ensure that the price was fixed through the third party. This is applicable in Hillary's case, since Clauses 5(d) and 17(b) lay out the procedure for fixing of the price in the event an agreement cannot be reached between the parties. ... at Hillary seeks, it may nevertheless place an obligation upon Barack to take necessary steps to ensure that the incomplete term in the contract, i.e, the price is fixed. In the case of Booker Industries Pty Ltd v Wilson Parking (Qld)Pty Ltd3 the situation was very similar to Hilary and Barack's case. In this case, the Court specifically stated that Booker (the lessor in this case) had "no grounds for refusing to discharge its obligation" to appoint an arbitrator merely on the grounds that the rental price was not fixed4. It clearly explained that when specific terms on the appointment of a third party have been set out in the original contract, then it no longer remains as a contingent obligation to be performed first before the ultimate obligation, i.e, re-renting the place can be completed. Since the existing option becomes operation on the day of expiry of the earlier lease, once it has been exercised, it is no longer a "conditional or contingent" obligation5. On this basis, the lessee was entitled to specific performance. Applying this precedent in Hillary's case, it appears that Booker may need to perform his obligation to appoint an arbitrator so the price can be fixed, after which the ultimate obligation, i.e, another lease term can also be accomplished. It must also be noted however, that Clause 4(b) states clearly that the option must be exercised "no later than 2 months prior to the expiration of the initial or previous term". In Hillary's case however, the option has been exercised after this period has expired, therefore there is a possibility that her right to exercise her option may no longer be valid, in which case Barack will not be obliged to perform his obligation to secure a rental price. Part B: The question of whether or not Huckabee has a

The proccess of assimilating Essay Example for Free

The proccess of assimilating Essay This essay explores the proccess of assimilating into the American society after a famiy moves to the USA from China in In The American Society, by Gish Jen. It also explores the irony in the title of the piece. In The American Society, by Gish Jen, is a lurid portrayal of an Asian-American family who immigrated to the United Statesaddressing both the struggles and fortunes that Americas opportunities have offered the family as they leave their old life in China. Now, the father must make something of himself and his family, in a time when America meant vast possibilities, but also being labeled as a foreigner. The mother in the story smugly declares, But this is the U-S-of-A! (542), proclaiming her pride in the opportunities accessible in her new home. Though, as the family begins to assimilate into the American society, they find that while success brings them respect and affluence, it may not automatically make them fit into the new culture. The title itself is a direct inference to the transformation the family is forced to undergo. The first half of the story is suitably entitled His Own Society, describing the familys journey towards coming to terms with the American society. When the mother is thinking of joining the country club she states, Your father doesnt believe in joining the American Society. He wants to have his own society (542). This line echoes the ever-present theme in the story of assimilation, and the fathers hesitation with adjustment. For people who come from cultures that are significantly different from the freethinking America, the process of acculturation can be awkward and even caustic. In the story, the father opens his own pancake house, and the family begins to encounter success. They then attempt to fit into their new society by buying a station wagon and recliner: typical American items. Throughout the rest of this first section of the story you see the actual internal core of His own society: His work relations, friends, and family in both America and China. His Society works well for himhes successful and happy. The second half of the storys title is fitting as well: dubbed The American Society(548). This section is where you really see the heart wrenching  depiction of the familys attempt to fit into their new society. A symbolic image found in the account, that most directly represents the familys integration into society is seen in the fathers clothing. It explains that the father, has no use for nice cloths, and would wear only ten-year-old shirts, with grease-spotted pants, to show how little he cared about what anyone thought(542). Yet, later in the story, he finds himself wearing an expensive suit to a country club affair. This sudden change shows the fathers eventual willingness to modify when left with no choice. Although at first he seems to blends in, one predicament sets off his insecurities and he launches his expensive jacket into the pool (550). With this gesture, he seems to give up on The American Society and resort back to his own familiar one with his familyit was good enough for him. In actuality, I think that is truly the best thing about America: There isnt really an American Society. We have so many diverse people and we are therefore free to choose our own society; the title of the story almost falsely suggests that there can be just one culture, while also satirizing the fact that some believe there to be one. The most interesting part of this story was that along the journey towards assimilation he finds that His Own Society was essentially the best one for him and his family to be members of, and that our country permits this because we have freedom, liberty, and justice for all! Through this story, you follow the Asian-American family as they encounter struggles as well as luck, as they assimilate into the American Society. You meet the same turmoil that the family stumbles upon as they enter a completely new world. The title suggests that there is an exact way to act while living in the American society, but as Jen depicts the fathers own society, readers come to realize that this unique society works just as well.

Melancholic Hamlet Essay -- Essays on Shakespeare Hamlet

Melancholic Hamlet  Ã‚   Hamlet is a melancholic young man who does not value human life; however, he will do anything it takes to accomplish his main goal: revenge on Claudius for the death of his father. In his seven soliloquies we learn that Hamlet has become melancholic, violent, and suicidal. There are several incidences where these emotions are expressed. His melancholic attitude is very apparent in the second scene of Act I, when he suggests that his mother, in mourning his fathers death, is simply acting the part of a grief stricken widow, while he is a truly heart broken son. Another example from his first soliloquy of his melancholic state occurs when he discovers the rapid marriage of his mother and his uncle, where he finds himself both sad and mad at the fact that his mother could move on so quickly. Hamlet’s violent attitude can be blamed on the fact that his father was murdered and he wants revenge. An example of his violent attitude is in his sixth soliloquy where he sees the king pray ing in the church. Hamlet feels as though he should just kill him in that same instance, but then decides not to. Another instance of his violent behavior is when he sends Rosencrantz and Guildenstern to their deaths and feels no remorse in doing so. Hamlet’s suicidal state can be accounted for because he is a confused young man. Throughout the play his father had been murdered, his mother almost instantly re-married, he himself had gone mad, and thus he is confused because he has so many negative feelings towards himself and the easiest way out is suicide. Another example occurs in his forth soliloquy when he reasons whether suicide would be the better and quicker solution. All of Hamlet’s emotions cause him to have a clo... ... not commit suicide because he realizes that it would be best to accomplish his goal and kill the king so he could avenge his fathers death. Hamlet is a melancholic, violent, and suicidal character, as a result of the events that have occurred in his life. Such events as the murder of his father, the quick marriage of his mother, and the ghost’s insistence on revenge caused Hamlet to have these emotions. The murder of his father caused Hamlet’s melancholic and violent state. The quick marriage caused more violence and confusion in his life. The ghost’s insistence on revenge caused more violent behavior. As a result of all the events that occurred Hamlet became extremely suicidal because he was confused with how he should solve his problem. Everyday people are faced with similar situations and it helps us to relate to the same pain that Hamlet felt.      

Is mass tourism good for Kenya? Essay

Mass tourism is tourism on a large scale, involving large numbers of visitors resulting in great concentrations of hotels and other tourist facilities. Countries which are mass tourist hotspots tend to be in the Development or Consolidation stages of the Butler Life Cycle Model. Kenya has recently become a major tourist destination for a variety of reasons. Kenya is located in mid-eastern Africa, meaning that it has a tropical climate. However, due to its elevation, the temperature tends to be moderate, meaning that the country is very attractive to British tourists. In addition to this, Kenya, being a former British colony, has long-standing ties to Britain, and as a result of this, a large quantity of the Kenyan population can speak English, meaning that Kenya is an even more accessible holiday option for the British people. This, in combination with the Kenya being situated on the Great Rift Valley, resulting in stunning scenery and diverse wildlife makes Kenya an even more attractive tourist destination. Because of this, Tourism is the largest income earner in Kenya, creating many jobs such as for hotel staff, waiters in restaurants and bartenders at bars, airport staff and tour operators, who all make a living off tourism, and in turn, the government can earn more money off taxes from these people, and also, increased business means that the government can earn more from airport tax. This puts in place a positive multiplier effect meaning that the influx of 11% of all paid employment in Kenya is in the tourism sector and 21% of foreign exchange earnings in Kenya are also due to tourism. Furthermore, some of this money gained from tourism, as well as donations from tourists are used to protect endangered wildlife in reserves such as the Masai Mara reserve and is used to fund the building of infrastructure in places such as Bamburi Nature Trail near the tourist hotspot Mombasa and to aid the development of medical facilities and schools in the area. Increased tourism in the area also promotes awareness and understanding of the culture and endangered wildlife in the game reserves. Tourism also brings business to other related economic sectors and is overall beneficial to Kenya’s economy. However, there are also some downsides. Many of the jobs created are poorly paid, unreliable and only get business during popular months. In addition, much of the money from tourism is lost via leakage to the large business hotel operators, package holiday organisers and airlines, and therefore, only 15% of the income actually reaches Kenya. In nature reserves and game parks, there are many negative environmental and social impacts of mass tourism. The vehicles that the tourists travel in often overcrowd the small dirt roads and the tour drivers often drive too close to the animals, causing damage to the grasslands and disturbing the animals’ living patterns. Moreover, to make way for the tourist areas, the Masai tribespeople have been evicted from their ancient homelands and moved to the less fertile, low quality land, which is a direct negative social impact of the Kenyan efforts to promote tourism. As a result of this, the Masai people have had to resort to methods of illegal smuggling and forceful money-grabbing techniques to earn money from the tourists. They have set up fake villages with the people doing fake traditional routines, charging tourists to visit them and even charging them for photos. Because these national parks are such attractive tourist destinations, they also result in overcrowding, as 90% of tourists visit the south and east of Kenya, resulting in an even larger impact and strain on the environment, infrastructure and resources in the area. In popular tourist seaside resorts such as Mombasa, swimsuit-wearing tourists wander about the streets, acting as a direct opposition to the strong Muslim following’s clothing traditions and beliefs. In addition to this, seaside tourists trample over the coral reefs in the area, killing the sensitive coral, and the increasing number of tour boats in the area drop their anchors onto the reef, further damaging it. Overall, I would say that Mass Tourism is not good for Kenya. Although the economic bonus is significant, and undoubtedly beneficial to Kenya, at this stage, despite efforts to make tourism more sustainable and environmentally-friendly, the large numbers of negative environmental and social impacts results in Mass Tourism in Kenya not being good for the country in the long term.

EMI Corporate Finance Essay

In this Internet age, the consumer is using music content more than ever before— whether that’s playlisting, podcasting, personalizing, sharing, downloading or just simply enjoying it. The digital revolution has caused a complete change to the culture, operations, and attitude of music companies everywhere. It hasn’t been easy, and we must certainly continue to fight piracy in all its forms. But there can be no doubt that with even greater commitment to innovation and a true focus on the consumer, digital distribution is becoming the best thing that ever happened to the music business and the music fan. —Eric Nicoli, CEO, EMI Group1 In early spring of 2007, Martin Stewart drove through the darkened streets of Kensington in West London. As chief financial officer (CFO) for global music giant EMI, Stewart already knew most of the news that would break at the company’s April 18 earnings announcement. Annual underlying revenue for the company was down 16% to GBP 1.8 billion (British pounds). Earnings per share (EPS) had also dropped from 10.9 pence (p) in 2006 to −36.3p in FY2007 (fiscal year). Those disappointing numbers were roughly in line with the guidance Stewart had given investors in February. The performance reflected the global decline in music industry revenues, as well as the extraordinary cost of the restructuring program EMI was pursuing to realign its investment priorities and focus its resources to achieve the best returns in the future. The earnings announcement would include an announcement of the dividend amount, which had not yet been determined. The board would meet soon to review EM I’s annual results, International Federation of Phonographic Industry (IFPI), â€Å"IFPI: 07 Digital Music Report,† January 2007. This case was written by Elizabeth W. Shumadine (MBA ’01), under the supervision of Professor Michael J. Schill, based on public information. Funding was provided by the L. White Matthews Fund for Finance case writing. Copyright  © 2008 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved. To order copies, send an e-mail to sales@dardenbusinesspublishing.com. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means— electronic, mechanical, photocopying, recording, or otherwise—without the permission of the Darden School Foundation. Rev. 2/09. .2 On an annual basis, EMI had consistently paid an 8p-per-share dividend to ordinary shareholders since 2002 (Exhibit 1). Now in light of EMI’s recent performance, Stewart questioned whether EMI should continue to maintain what would represent a combined GBP 63-million annual dividend payment. Although omitting the dividend would preserve cash, Stewart appreciated the negative effect the decision might have on EMI’s share price, which was currently at 227p. Stewart recognized that EMI faced considerable threat of a takeover. Although its board had recently been able to successfully reject an unsolicited 260p-per-share merger offer from U.S. rival Warner Music, there remained considerable outside interest in taking  over EMI. It seemed that boosting EMI’s share price was imperative if EMI was to maintain its independence. EMI With a storied history that included such names as the Beatles, the Beach Boys, Pink Floyd, and Duran Duran, it was not difficult to understand why EMI considered its current and historical catalog of songs and recordings among the best in the world. EMI, Warner Music Group, Sony BMG Music Entertainment, and Universal Music Group, collectively known as â€Å"the majors,† dominated the music industry in the early 21st century and accounted for more than two-thirds of the world’s recorded music and publishing sales.3 Exhibit 2 contains a list of the global top-10 albums with their respective record labels for the last four years. Recorded music and music publishing were the two main revenue drivers for the music industry. EMI divided its organization into two corresponding divisions. EMI Music, the recorded-music side, sought out artists it believed would be long-term commercial recording successes. Each EMI record label marketed its artist’s recordings to the public and sold the releases through a variety of retail outlets. EMI’s extensive music catalog consisted of more than 3 million songs. Recorded-music division sales came from both new and old recordings with existing catalog albums constituting 30% to 35% of the division’s unit sales. Exhibit 3 contains a list of EMI’s most successful recording artists in FY2007. EMI Music Publishing focused not on recordings but on the songs themselves. Generally, there were three categories of publishing-rights ownership in the music industry: the lyric’s author, the music’s composer, and the publisher who acquired the right to exploit the song. These publishing-rights owners were entitled to royalties whenever and however their music was used. Music publishers categorized their revenue streams as mechanical royalties (sales of recorded 2 In the United Kingdom, companies typically declared dividends twice a year, first with the midyear results and second with the full-year results. Typically, EMI paid an interim dividend of 2p per share and a final dividend of 6p per share. In addition, both EMI’s interim and final dividends were paid out to shareholders in the following fiscal year. In November 2006,  EMI’s board committed to paying the interim dividend of 2p per share following its 2007 fiscal midyear results with actual payment to shareholders expected in April 2007. Both the 2p interim dividend and the recommended final dividend would be reflected in the 2008 financial statements. 3 EMI included a fourth category of royalties labeled â€Å"other,† which included sales of sheet music and, increasingly, mobile ring tones and ring backs. Similar to the recorded-music division, the music-publishing division identified songwriters with commercial potential and signed them to long-term contracts. The division then assisted the songwriters in marketing their works to record companies and other media firms. EMI’s current publishing catalog encompassed more than 1 million musical compositions. Exhibit 3 includes a list of EMI’s most-successful songwriters in FY2007. EMI’s publishing business generated onefourth of the total group revenue. Revenue in the publishing business was stable, and  operating profits were positive. In addition to seeking out and signing flourishing recording artists and songwriters to long-term agreements, both EMI divisions also expanded and enhanced their individual catalogs and artist rosters by strategic transactions. Two key acquisitions for EMI’s recorded-music division were the 1955 acquisition of a leading American record label, Capitol Records, and the 1992 acquisition of Virgin Music Group, then the largest independent record label. Together the transactions added such key recording stars as Frank Sinatra, Nat King Cole, Janet Jackson, and the Rolling Stones. The music-publishing division similarly targeted existing publishing assets with large, proven commercial potential such as the purchase in various stages of Motown founder Berry Gordy’s music catalog in 1997, 2003, and 2004. Since the company’s founding in 1897, EMI’s model had been that of â€Å"constantly seeking to expand their catalog, with the hits of today forming the classics of tomorrow.†4 Both divisions pursued the goal of having the top-selling artists and songwriters and the deepest, mostrecognized catalog assets. EMI welcomed technological innovations, which often drove increased music sales as consumers updated their music collections with the latest music medium (e.g., replacing an LP or cassette with the same recording on compact disc). But the latest technology, digital audio on the Internet, was different and revolutionary. Digital audio on the Internet demanded rethinking the business model of all the majors, including EMI. Digital Audio and the Music Industry Digital audio had been around since the advent of the compact disc (CD) in the early 1980s, but the 1990s combination of digital audio, Internet, and MP3 file format brought the music industry to a new crossroads. The MP3 format had nearly the same sound quality as CDs, but its small file size allowed it to be easily downloaded from the Internet, stored on a computer hard drive, and transferred to a digital audio player, generally referred to as an MP3 player. Peer-to-peer file-sharing Internet services, most notably Napster, emerged in the late 1990s. First available in mid-1999, Napster facilitated the exchange of music files. The use of Napster’s file-sharing program exploded, and Napster claimed 20 million users by July 2000. EMI Group PLC annual report, 2007. Napster’s swift growth did not go unnoticed by the music industry. While the Recording Industry Association of America (RIAA) was eventually successful in using the court system to force Napster to remove copyrighted material, it did not stop peer-to-peer file sharing. New services were quickly developed to replace Napster. The International Federation of the Phonographic Industry (IFPI), an organization representing the recording industry worldwide, estimated that almost 20 billion songs were downloaded illegally in 2005. EMI was an early presence on the Internet in 1993. In 1999, EMI artist David Bowie’s album, hours†¦, was the first album by a major recording artist to be released for download from the Internet. None of the record labels were prepared, however, for how quickly peer-to-peer file sharing would change the dynamics of the music industry and become a seemingly permanent thorn in the music industry’s side. In the wake of Napster’s demise, the music labels, including EMI, attempted various subscription services, but most failed for such reasons as cost, CDburning restrictions, and incompatibility with available MP3 players. Only in the spring of 2003, when Apple launched its user-friendly Web site, iTunes Music Store, did legitimate digital-audio sales really take off in the United States, the world’s largest music market. Apple began to expand iTunes globally in 2004 and sold its one-billionth download in February 2006. According to the IFPI, there were  500 legitimate on-line music services in more than 40 countries by the beginning of 2007, with $2 billion in digital music sales in 2006. Despite the rise of legally downloaded music, the global music market continued to shrink due to the rapid decline in physical sales. Nielsen SoundScan noted that total album units sold (excluding digital-track equivalents) declined almost 25% from 2000 to 2006.5 IFPI optimistically predicted that digital sales would compensate for the decrease in physical sales in 2006, yet in early 2007, IFPI admitted that this â€Å"holy grail† had not yet occurred, with 2006 overall music sales estimated to have declined by 3%.6 IFPI now hoped digital sales would overtake the decline in physical sales in 2007. Credit Suisse’s Global Music Industry Forecasts incorporated this view with a relatively flat music market in 2007 and minor growth of 1.1% to 1.5% in 2008 and 2009.7 The Credit Suisse analyst also noted that the music industry’s operating margins were expected to rise as digital sales became more significant and related production and distribution costs declined.8 Lehman Brothers was more conservative, assuming a flat market for the next few years and commenting that the continued weakness in early 2007 implied that the â€Å"market could remain tough for the next couple of years.†9 Many in the industry feared that consumers’ ability to unbundle their music purchases— to purchase two or three favorite songs from an album on-line versus the entire album at a physical retail store—would put negative pressure on music sales for the foreseeable future. A Bear Stearns research report noted: While music consumption, in terms of listening time, is increasing as the iPod and other portable devices have become mass-market products, the industry has still not found a way of monetizing this consumption. Instead, growing piracy and the unbundling of the album, combined with the growing power of big retailers in the physical and iTunes in the digital worlds, have left the industry in a funk. There is no immediate solution that we are aware of on the horizon and in our view, visibility on sales remains poor.10 Recent Developments at EMI The last few years had been incredibly difficult, particularly within EMI’s recordedmusic division, where revenues had declined 27% from GBP 2,282 million in 2001 to GBP 1,660 million in 2006. (Exhibits 4 and 5 show EMI’s financial statements through FY2007.) Fortunately, downloadable digital audio did not have a similar ruinous effect on the publishing division. EMI’s publishing sales were a small buffer for the company’s performance and hovered in a tight range of GBP 420 million to GBP 391 million during that period. CEO Eric Nicoli’s address at the July 2006 annual general meeting indicated good things were in store for EMI in both the short term and the long term. Nicoli stressed EMI’s exciting upcoming release schedules, growth in digital sales, and success with restructuring plans. EMI’s digital sales were growing and represented an increasingly large percentage of total revenues. In 2004, EMI generated group digital revenues of GBP 15 million,  which represented just less than 1% of total group revenues. By 2006, EMI had grown the digital revenue to GBP 112 million, which represented 5.4% of total group revenues. The expected 2007 digital sales for EMI were close to 10% of group revenues. Given the positive expectations for its 2007 fiscal year, financial analysts had expected EMI’s recorded-music division to see positive sales growth during the year. EMI’s surprising negative earnings guidance on January 12 quickly changed its outlook. EMI disclosed that the music industry and EMI’s second half of the year releases had underperformed its expectations. While the publishing division was on track to achieve its goals, EMI’s recorded-music division revenues were now expected to decline 6% to 10% from one year ago. The market and investor community reacted swiftly to the news. With trading volume nearly 10 times the previous day’s volume, EMI’s market capitalization ended up down more than 7%. EMI further shocked the investment community with another profit warning just one month later. On February 14, the company announced that the recorded-music division’s FY2007 revenues would actually decrease by about 15% year-over-year. EMI based its new dismal forecast on worsening market conditions in North America, where SoundScan had calculated that the physical music market had declined 20% in 2007. The investment community punished EMI more severely after this second surprise profit warning, and EMI’s stock price   dropped another 12%. British newspaper The Daily Telegraph reported shareholders were increasingly disgruntled with performance surprises. One shareholder allegedly said, â€Å"I think [Nicoli]’s a dead duck. [EMI] is now very vulnerable to a [takeover] bid, and Nicoli is not in any position to defend anything. I think the finance director [Martin Stewart] has also been tainted because it suggests they did not get to the bottom of the numbers.† EMI analyst Redwan Ahmed of Oriel Securities also decried EMI management’s recent news: â€Å"It’s disastrous †¦ they give themselves a big 6% to 10% range and a month later say it’s 15%. They have lost all credibility. I also think the dividend is going to get slashed to about 5p.†11 Exhibit 6 contains information on EMI’s shareholder profile. As its fiscal year came to a close, EMI’s internal reports indicated that its February 14 forecast was close to the mark. The recorded-music division’s revenue was down, and profits were negative. The publishing-division revenue was essentially flat, and its division’s margin improved as a result of a smaller cost base. The company expected underlying group earnings before interest, taxes, depreciation, and amortization (EBITDA), before exceptional items, to be GBP 174 million, which exceeded analysts’ estimates. Digital revenue had grown by 59% and would represent 10% of revenue. EMI management planned to make a joint announcement with Apple in the next few days that it was going to be the first major music company to offer its digital catalog free from digital-rights management and with improved sound quality. The new format would sell at a 30% premium. EMI management expected this move would drive increased digital sales. Management was pleased with the progress of the restructuring program announced with the January profit warning. The plan was being implemented quicker than expected and, accordingly, more cost savings would be realized in FY2008. The program was going to cost closer to GBP 125 million, as opposed to the GBP 150 million previously announced. Upon completion, the program was expected to remove GBP 110 million from EMI’s annual cost base, with the majority of savings coming from the recorded-music division. The plan reduced layers in the management structure and encouraged the recorded-music and publishing divisions to work more closely together for  revenue and cost synergies.12 One headline-worthy change in the reorganization was the surprise removal of the recorded-music division head, Alain Levy, and Nicoli taking direct responsibility for the division. The Dividend Decision Since the board had already declared an interim dividend of 2p per share in November 2006, the question was whether to maintain the past payout level by recommending that an additional 6p final EMI dividend be paid. Considering EMI’s struggling financial situation, there was good reason to question the wisdom of paying a dividend. Exhibit 7 provides a forecast of the cash flow effects of maintaining the dividend, based on market-based forecasts of 11 Alistair Osborne, â€Å"Nicoli ‘a dead duck’ as EMI issues new warning,† Daily Telegraph, February 16, 2007. Restructuring efforts over the previous three years had collectively saved the company GBP 180 million annually; however, the result was a one-time implementation cost of GBP 300 million. Omitting the dividend, however, was likely to send a message that management had lost confidence, potentially accelerating the ongoing stock price decline—the last thing EMI needed to do.13 (Exhibit 9 depicts trends in the EMI share price from May 2000 to May 2006.) Many believed that music industry economics were on the verge of turning the corner. A decision to maintain the historical 8p dividend would emphasize management’s expectation of business improvement despite the disappointing recent financial news. Forecasts for global economic growth continued to be strong  (Exhibit 10), and reimbursements to shareholders through dividends and repurchases were on the upswing among media peers (Exhibit 11). As Stewart navigated his way home, the radio played another hit from a well-known EMI artist. Despite the current difficulties, Stewart was convinced there was still a lot going for EMI. Historically, there was strong evidence of significant negative stock-price reactions to dividend cancellations (see Balasingham Balachandran, John Cadle, and Michael Theobald, â€Å"Interim Dividend Cuts and Omissions in the U.K.,† European Financial Management 2:1 (March 1996), 23–38, for a study using only British firms, and Roni Michaely, Richard Thaler, and Kent Womack, â€Å"Price Reactions to Dividend Initiations and Omissions: Overreaction of Drift?† Journal of Finance, 50, 2 (June 1995), 573–608, for a larger study using U.S. firms. Both academics and practitioners vigorously debated the impact of dividend policy. In fact, Nobel laureate economists had argued that dividend policy should maintain little relevance to investors. Exhibit 8 contains a summary of Modigliani and Miller arguments.

Estimating a demand function for Fruit and Vegetables The WritePass Journal

Estimating a demand function for Fruit and Vegetables Introduction Estimating a demand function for Fruit and Vegetables IntroductionLiterature ReviewFunctional FormChoosing the Functional FormTesting individual parametersFurther TestsHomogeneitySlutskyInterpretation Of The Preferred ModelRegression equation for the preferred modelInterpretation of ElasticitiesConclusionReferencesRelated Introduction In this project I will examine the quarterly data set for FTVG20 from Ruritania between 1981 and 2010. I will find a functional form which best fits the data and then test for insignificant variables, structural breaks, seasonality and homogeneity. I will use Slutsky’s equation to calculate the income and substitution effects and then interpret the model. The social, economic, geographic and economic characteristics of Ruritania are not known. The data set shows that the quantity demanded of fruit and vegetables (QFTVG20) is dependent on the following variables: Table 1 Variable Explanation PMTFH Price of meat and fish PFTVG Price of fruit and vegetables PTEA Price of tea PCOFF Price of coffee PBEER Price of beer PWINE Price of wine PLEIS Price of leisure PTRAV Price of travel PALLOTH Price of all other goods INCOME Income Literature Review Ruel, Minot and Smith use household expenditure surveys in 10 Sub-Saharan African countries and used a Working-Lessor functional form to find that the main determinants of demand are per capita expenditure, household size, households headed by a female, education and location (urban vs rural). A study by Seale considered the effect of price and income on the demand for different food categories. They found that the food budget share of fruit and vegetable consumption is 10-25%, which is much higher than that of Ruritania. They calculated the expenditure elasticity of fruit and vegetables for low income countries (LICs) to be 0.636, middle-income countries (MICs) 0.514 and high-income countries (HICs) 0.281. The Frisch own-price elasticity of demand was -0.514 in LICs, -0.416 in MICs and -0.227 in HICs. There have been several studies considering non-economic factors that contribute to the demand for fruit and vegetables. A study by Nayga found that demand depends on socio-demographic factors such as location, age, family structure, ethnicity, children and education, whilst Pollard, Kirk and Cade find social desirability, habits, sensory appeal, convenience and advertising to be explanatory variables. Block’s research in Indonesia finds that mothers with nutritional knowledge spend a greater proportion of their food budget on foods rich in nutrients and minerals, such as fruit and vegetables. Functional Form Studenmund says that ‘choice of a functional form is a vital part of the specification of that equation.’ He goes on to mention that the use of Ordinary Least Squares means that the equation should be linear in the parameters rather than variables. In determining a demand function for fruit and vegetables I will consider the following functional forms: Table 2 Model Functional form Linear QFTVG20 = b0 + b1PMTFH + b2PFTVG + b3PTEA + b4PCOFF + b5PBEER + b6PWINE + b7PLEIS + b8PTRAV + b9PALLOTH + b10INCOME + et Log-Log ln(QFTVG20) = b0 + b1ln(PMTFH) + b2ln(PFTVG) + b3ln(PTEA) + b4ln(PCOFF) + b5ln(PBEER) + b6ln(PWINE) + b7ln(PLEIS) + b8ln(PTRAV) + b9ln(PALLOTH) + b10ln(INCOME) + et Log-Linear ln(QFTVG20) = b0 + b1PMTFH + b2PFTVG + b3PTEA + b4PCOFF + b5PBEER + b6PWINE + b7PLEIS + b8PTRAV + b9PALLOTH + b10INCOME + et Linear-Log QFTVG20 = b0 + b1ln(PMTFH) + b2ln(PFTVG) + b3ln(PTEA) + b4ln(PCOFF) + b5ln(PBEER) + b6ln(PWINE) + b7ln(PLEIS) + b8ln(PTRAV) + b9ln(PALLOTH) + b10ln(INCOME) + et In determining which functional form is preferable and which variables are significant, I will use the statistical tests detailed below: Table 3 Test It tests for Null Hypothesis Alternative Hypothesis F Test Significance of overall regression, individual and joint parameters H0: Test statistic critical valueModel is insignificant HA: Test statistic critical valueModel is significant R2 Proportion of variation in sample data explained by the regression n/a n/a Ramsey RESET (RR) Misspecification of the model and omitted variables H0: Test statistic critical valueModel is adequate and there is no misspecification HA: Test statistic critical valueModel is inadequate and can be improved Jarque-Bera (JB) Normality of the error term H0: Test statistic critical valueThe error term is normally distributed HA: Test statistic critical valueThe error term is not normally distributed Whites (WT) Heteroscedasticity H0: Test statistic critical valueThere is homoscedasticity HA: Test statistic critical valueThere is heteroscedasticity Breusch-Godfrey (BG) Higher order autocorrelation H0: Test statistic critical valueThere is no autocorrelation HA: Test statistic critical valueThere is autocorrelation Durbin-Watson (DW) First order autocorrelation H0: Test statistic upper boundThere is no autocorrelation HA: Test statistic lower boundThere is autocorrelation Additionally, when :Lower bound Test statistic Upper boundThe test for autocorrelation is inconclusive Changes In Demand Roberta Cook’s research has shown that per capita fruit and vegetables consumption (pounds) in the United States has increased by 12.4% from 1976-2006. Interestingly, in the same period there was a 28% reduction in the amount of citrus fruits consumed but growth was boosted by non-citrus fruits and vegetables. Cook suggests that the increase in demand is due to changes in lifestyle such as the large increase in the number of two-income households. This has led to a focus on cooking quickly therefore using more fresh produce. The scatter plot below shows the change in quantity demanded for fruit and vegetables in Ruritania over the time period 1981 to 2010. Quantity demanded was constant between 1980 and 1991 before increasing exponentially. The data does not follow the results of Cook’s research but I am able to predict that the data will fit either a log-log or log-linear model. Choosing the Functional Form From considering the four functional forms I obtained the following test results which are in line with my predictions: Table 4 Statistical Test Critical value at 5% significance level Linear Log-Log Log-Linear Linear-Log F Test 1.91 62.86* 157.9* 152* 52.81* R2 n/a 0.852233 0.935444 0.933081 0.828901 Ramsey RESET (RR) 3.92 31.982 0.0028123* 1.7429* 33.845 Jarque-Bera (JB) 5.99 41.046 0.25565* 0.093059* 31.152 Whites (WT) 1.64 2.0512 1.0271* 0.93069* 2.1058 Durbin-Watson (DW) DU= 1.898DL = 1.462 1.32 2.05* 2.03* 1.27 Breusch-Godfrey (BG) 11.07 19.306 7.8052* 2.6625* 23.394          Although the linear model and the linear-log model pass the F-test, only 85% and 83% of the variation in the data is explained by the respective regression model. Both models also fail the Breusch-Godfrey test, Durbin-Watson test, White’s Test, Jarque Bera test and the Ramsey RESET test. From these results I can conclude that the demand function for fruit and vegetables is not in linear or linear-log form. The log-log functional form and the log-linear functional form both explain around 93.5% of the data, which is relatively high. They both pass the T-test, Durbin-Watson test, White’s Test, Jarque Bera test, Breusch-Godfrey test and the Ramsey RESET test at 5%. Although they both pass the same tests, the log-log form passes the Ramsey RESET test at 0.0028123 whilst the log-linear form passes at 1.7429. Since the log-log model passes this more satisfactorily, the model will have a lower chance of misspecification. Additionally, a log-log model allows easier interpretation as elasticity is constant and equal to b at every point.   I will therefore choose the log-log functional form as the demand function for fruit and vegetables. For analysis, if an independent variable changes by 1% whilst other independent variables are held constant, then the dependant variable will change by the b value of the independent variable. Testing individual parameters Having identified the preferred functional form, I will now test the significance of individual parameters at a 5% significance level. Calculated using a 2-tailed T-test H0: b0 = 0 H1: b0 ≠ 0 Test statistic (t) = b0 b0  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   T(N-2)  Ã‚  Ã‚  Ã‚   where N = 120 so T(118) Se(b0) If   tc ≠¤ t ≠¤ tc   fail to reject the null hypothesis and b0 is not significant If  Ã‚   t ≠¥ tc   or t ≠¤ -tc reject the null hypothesis and b0 is significant Table 5 Parameter Coefficient Standard Error Test Statistic Intercept 3.35508 2.655 1.264 ln(PMTFH) -0.294682 0.1787 -1.649 ln(PFTVG) -0.576745 0.2888 -1.997* ln(PTEA) -0.524011 0.2585 -2.027* ln(PCOFF) 0.0219395 0.2631 0.083 ln(PBEER) 0.115732 0.2336 0.495 ln(PWINE) -0.191003 0.3137 -0.609 ln(PLEIS) 0.169363 0.1732 0.978 ln(PTRAV) 0.197812 0.1532 1.291 ln(PALLOTH) 2.31373 0.5330 4.341* ln(INCOME) -0.669523 0.2149 -3.116* The critical values for the t – test are +/- 1.98. From the t-test I have found that only four of the parameters are significant at a 5% significance level. They are: price of fruit and vegetables, price of tea, price of all other goods and the level of income. Since the price of meat and fish, intercept and price of travel are close to the critical value, I will keep these in the model. I will now run a second regression excluding the variables: price of coffee, price of beer, price of wine and price of leisure, and will use more t-tests to determine which of the parameters are significant. The results are shown in the table below. Table 6 Parameter Coefficient Standard Error Test Statistic Intercept 2.53817 1.678 1.513 ln(PMTFH) -0.145648 0.1367 -1.065 ln(PFTVG) -0.613409 0.2411 -2.544* ln(PTEA) -0.518472 0.1684 -3.079* ln(PTRAV) 0.125349 0.1283 0.977 ln(PALLOTH)    2.66028 0.2728 9.752* ln(INCOME)    -0.662872 0.1934 -3.427* Whilst the intercept is still insignificant, I will continue to include it in the model as removing it can create bias in the regression.The price of meat and fish and the price of travel are still insignificant in this regression so I will remove them from the model. The restricted regression model has the functional form: ln(QFTVG20) = b0 + b2ln(PFTVG) + b3ln(PTEA) + b9ln(PALLOTH) + b10ln(INCOME) + et To ensure the removal of the six parameters improves the model, I will run an F-test on the restricted model: F = (SSRR-SSUR)/r (SSUR)/n-k Where r = number of restrictions in the model, n = number of observations, k = number of parameters in the unrestricted model (including the intercept) The null hypothesis is: H0: b1 = b4 = b5 = b6 = b7 = b8 = 0 HA: Null hypothesis is untrue At 5% significance level, critical value F(6,109) = 2.18 F = (16.7224302 – 16.0433624)/6 (16.0433624)/120-11 F = 0.7689409526 2.18 Since the test statistic is less that the critical value, I fail to reject the null hypothesis so the variables are collectively insignificant and can now be removed. Further Tests I will consider whether there are structural breaks and seasonal changes. Structural Breaks I have chosen to graph QFTVG20 over time rather than lnQFTVG20 as there is a marked increase in fruit and vegetables consumption after 1998 which does not appear on the graph for lnFTVG. This increase in consumption may be due to a structural change. I will therefore split the regression model into two, and carry out a Chow Test, where: H0 = no structural change HA = structural change Chow Test n1 = number of observations in the first regression n2 = number of observations in the second regression k = number of parameters including the constant SSRR = RSS from original model SSUR = RSS from regression 1 + RSS from regression 2 Table 7 Time Period Number of observations Residual sum of squares 1981 – 1998 72 10.7905333 1999 – 2010 48 5.82816287 1981 2010 120 16.7224302 F = (16.7224302 – 10.7905333 – 5.82816287)/5  Ã‚   = 0.1373241701 (10.7905333 + 5.82816287)/(72 + 48 – 25) At a 5% significance level, the critical value is F(5,110) = 2.29 Since 0.137 2.29 I fail to reject the null hypothesis and can conclude that there is no structural change when tested at the 5% significance level. Seasonal Dummy Variables Since fruit and vegetables grow on a seasonal basis, it is prudent to include seasonal dummy variables to see whether the data follows seasonality. To do this, I will create four dummy variables, however, I will only include three dummy variables so as to avoid falling into the dummy variable trap. This avoids obtaining perfect multicollinearity. The three dummies refer to the difference between themselves and the omitted (reference) dummy variable. With the inclusion of three dummy variables, the model becomes: ln(QFTVG20) = b0 + b2ln(PFTVG) + b3ln(PTEA) + b9ln(PALLOTH) + b10ln(INCOME) + baD1 + bbD2 + bcD3 + et Table 8 Quarter Parameter Coefficient Estimated standard error Test statistic Significant at 5% (critical value +/- 1.98 1 D1 -0.0217025 0.09880 -0.220 No 2 D2 0.0908533 0.09877 0.920 No 3 D3 0.111825 0.09875 1.13 No This shows that the dummy variables are insignificant at 5% significance level. To remove the dummy variables, I run an F-test to check for the combined significance. H0: ba = bb = bc = 0 HA: H0 is not true F = (SSRR-SSUR)/r  Ã‚     Ã‚  ~ F(r, n-k) (SSUR)/n-k F = (16.7224302 – 16.3332741)/3   Ã‚  = 0.8890750414 16.3332741/(120 – 8) At 5% significance level, the critical value for F(3,112) is 2.68. Since 0.889 2.68 I fail to reject the null hypothesis. From this, it can be seen that at the 5% significance level, there is no evidence of seasonality. I can now remove the seasonal dummy variables. Homogeneity A demand function is homogenous if when both prices and income are doubled, the optimal quantities demanded do not change. H0: b2 + b3 + b9 + b10 = 0 HA: b2 + b3 + b9 + b10 ≠  0 If H0 is true, the equation can be rearranged as: b10 = b2 b3 b9 The regression model thus becomes: ln(QFTVG20) = b0 + b2ln(PFTVG) + b3ln(PTEA) + b9ln(PALLOTH) + (- b2 b3 b9)ln(INCOME) From logarithmic rules, the equation can be written as: Ln(QFTVG20)= b0 + b2ln(PFTVG/INCOME) + b3ln(PTEA/INCOME) + b9ln(PALLOTH/INCOME) F = (SSRR-SSUR)/r (SSUR)/n-k F = (17.3810772 16.7224302)/1   = 4.529509413 16.7224302/(120-5) The critical value for F(1,115) is 3.92. Since 4.5295 3.92 I reject the null hypothesis and conclude that demand is not homogenous, it exhibits heterogeneity. Laitinen has undertaken a study which concludes that the test of homogeneity is ‘seriously biased’ towards rejecting the null hypothesis. This leads me to believe that my result is acceptable and could be due to this, or the money illusion, where consumers mistake changes in nominal values to be changes in real values. Slutsky The Slutsky equation shows how a price change can lead to an income effect and a substitution effect. To calculate the price elasticity of demand I multiply through by P/Q and multiply the last term by I/I giving: This means: Price elasticity of demand = substitution effect – (income elasticity x fraction of income spent) From table 10 it can be seen that the income elasticity of demand is -0.470995 and price elasticity of demand of fruit and vegetables is -0.626791. The fraction of income spent on fruit and vegetables is 3%. Income effect = -0.470995 x 0.03 = -0.01412985 Substitution effect = -0.626791 -0.01412985 = -0.61266115 Since income elasticity of demand is negative, this means that fruit and vegetables are inferior goods. The substitution effect must always be negative. Interpretation Of The Preferred Model Having identified that there are no structural breaks in the model and that there is no evidence of seasonality, I can run a third regression with all the insignificant variables removed. The demand function is determined by: ln(QFTVG20) = b0 + b2ln(PFTVG) + b3ln(PTEA) + b9ln(PALLOTH) + b10ln(INCOME) + et The restricted regression model gives the following results to the aforementioned diagnostic tests: Table 9 Statistical Test Critical value at 5% significance level Log Log (restricted) Log Log (unrestricted) F Test 1.91 398.5* 157.9* R2 n/a 0.932711 0.935444 Ramsey RESET (RR) 3.92 0.26863* 0.0028123* Jarque-Bera (JB) 5.99 0.52542* 0.25565* Whites (WT) 1.64 0.36082* 1.0271* Durbin-Watson (DW) upper 1.898lower 1.462 2.01* 2.05* Breusch-Godfrey (BG) 11.07 4.8690* 7.8052* * Significant at 5% significance level The restricted log-log model passes every test carried out and passes the F test and White’s Test more satisfactorily than the unrestricted log-log model. I will now run further t-tests and consider whether the remaining variables are still significant. The results are shown in the table below. Table 10 Parameter Coefficient Standard Error Test Statistic Constant 0.814700 1.125 0.724 ln(PFTVG) -0.626791 0.2407 -2.604* ln(PTEA) -0.579563 0.1616 -3.586* ln(PALLOTH) 2.80783 0.2372 11.837* ln(INCOME) -0.470995 0.1353 -3.481* The table shows that all the remaining parameters (except the constant) are significant at a 5% significance level. Regression equation for the preferred model ln(QFTVG20) = 0.814700 0.626791ln(PFTVG) 0.579563ln(PTEA) + 2.80783ln(PALLOTH) 0.470995ln(INCOME) The equation suggests that fruit and vegetables are inferior goods as the coefficient for income is negative. This means that as income increases, the demand for fruit and vegetables decrease. Interpretation of Elasticities Table 11 Parameter Coefficient Interpretation Constant 0.814700 Autonomous LPFTVG -0.626791 Own price inelastic LPTEA -0.579563 Complement LPALLOTH 2.80783 Substitute LINCOME -0.470995 FTVG20 is income inelastic and is an inferior good. Constant – represents the value that is predicted for the dependant variable when all the independent variables are equal to zero. LPFTVG – A 1% increase in price will lead to a 0.626791% fall in quantity demand of fruit and vegetables. The average own-price elasticity for fresh fruit from 10 studies combined by Durham and Eales is -0.6 which is very close to the elasticity I have found. LPTEA – A 1% increase in price of tea will lead to a fall in demand of FTVG20 of 0.579563%. This could be due to fruit and tea being consumed together, for example, as part of breakfast. LPALLOTH – a 1 % increase in the price of all other goods will cause a 2.80783% increase in demand for fruit and vegetables LINCOME – A 1% increase in income means the demand for fruit and vegetables will fall by 0.470995%. From this I can conclude that fruit and vegetables are inferior goods. Purcell and Raunikar found that at lower incomes, fruit and vegetables are normal goods but at higher incomes they are inferior goods. They also found that green vegetables are inferior goods for all levels of income from 1958-62. Their results correspond to a recent study (2007) by Ruel, Minot and Smith, who found that in 10 (relatively poor) African countries the average income-elasticity of demand for fruit and vegetables was 0.766, i.e. fruit and vegetables are normal goods for low-income countries. Conclusion In this project I have estimated a demand function for fruit and vegetables (20) in Ruritania. Through using diagnostic tests and regression analysis I have found it to be a log-log model. I was able to remove insignificant variables leaving independent variables of price of fruit and vegetables, tea, all other goods and income. I then tested the data for seasonality and structural breaks and found no evidence of seasonality or structural breaks between 1981 and 2010. I found the data to be heterogeneous and justified this with reference to Laitinen’s research. Using Slutsky’s equation, I found that fruit and vegetables are inferior goods. To improve the model I could separate the demand for fruit and vegetables to see whether they both remain inferior goods. It would also be interesting to consider socioeconomic factors, such as those studied by Nayga. Additionally, since a large proportion of demand for fruit is made up of the demand for juice, it would useful to consider the demand of whole fruit and vegetables rather than that pressed into juice. These factors combined may improve the model so that a proportion of the remaining 6.6% of the data fits my regression model. References Ashworth, J. Durham Economics Lecture Notes Bath Lecture Notes: www.people.bath.ac.uk/bm232/EC50161/Dummy%20Variables.ppt Block, S., ‘Maternal Nutritional Knowledge and the Demand for Micronutrient Rich Foods: Evidence From Indonesia’ Cook, R. ‘U.S. Per Capita Fruit and Vegetables Consumption’ Cook, R. ‘Some Key Changes In U.S. Consumption Patterns’ Durham, C. Eales, J. ‘Demand Elasticities For Fresh Fruit and the Retail Level’ Greenwood, S. ‘Consumer Trends for the New Millennium Impact Fresh-cut Produce’ Han, T., Wahl, T. ‘China’s Rural Demand For Fruit and Vegetables’ Griffiths, W., Judge, G. ‘Undergraduate Economics’ Laitinen, K. ‘Why is demand homogeneity so often rejected?’ Nau, F. ‘Additional Notes On Regression Analysis’ Duke Fuqua Business School Nayga. ‘Determinants of US Household Expenditures on Fruit and Vegetables. A Note and Update.’ Nicholson, W. ‘Microeconomic Theory: Basic Principles and Extensions’ Purcell, J.C., Raunikar, R. ‘Quantity-Income Elasticities For Foods By Level of Income’ Journal of Farm Economics, December 1967 Ruel, M.T., Minot, N., Smith, L. ‘Patterns and Determinants of Fruit and Vegetable Consumption In Sub-Saharan Africa: A Multicountry Comparison’   International Food Policy Research Institute, 2005 Seale, J., Regmi, A., Bernstein, J. ‘International Evidence on Food Consumption Patterns’ Studenmund, A. ‘Using Econometrics’ Wang, X. Durham Economics Lecture Notes

Strategic Human Resource Management Essay Example | Topics and Well Written Essays - 1250 words

Strategic Human Resource Management - Essay Example However, this may not be achieved without taking into consideration the role of the HR department in the organization. Basically, strategic human resource management (SHRM) is concerned with the human resources, HRM systems and functions (Swanepoel , 2003). It is undoubtedly true that all aspects related to human resource management affect all facets of the organisational strategy formulation. Internal activities such as recruitment and training are part of the RBV model because they ultimately influence performance of the organization as a whole. It may be difficult to formulate and implement strategies in an organization without incorporating the relevant human resource related issues. It is the role of the HR department to identify strategies that can bring about positive development and growth in the organization through the efforts of other people such as the employees. Following the best course of action in the organization is commonly known as best fit and this determines the success or failure of the organization. HR policies that are designed to fulfil the needs of the employees as well as the organization are effective in contributing to its success. For instance, a company like SAB uses the RBV model to shape its operations. The company tries to balance its human resources as well as other external factors that can impact on its operations. Theme two: Strategic recruitment and competencies For each organisation to operate viably, there is need for recruiting the best talent in the first place since these employees would be capable of being developed to become valuable assets to the organisation. Strategic recruitment that is characterised by identification of competencies of skilled people can significantly contribute to the success of the organization in the long run. Basically, recruitment is a process that involves searching for and obtaining qualified job candidates and it gives the organisation the opportunity to select the most appropriate pers ons to fill its job positions (Carrell, et al, 1995).

Economics of Law Essay Example | Topics and Well Written Essays - 1500 words

Economics of Law - Essay Example Thus they might use an accomplice to watch for police, buy more sophisticated equipment to break into cars more quickly, etc. On the other hand, some potential offenders find that the expected reward from crime is less than the expected cost. Similarly, if the opportunity which knocks at the door of offender which costs his devoted time to criminal activity, potential offenders are likely to reduce their criminal activity. The greater the opportunity, the higher would be the cost, thus we expect the supply of crime to decrease when good jobs in the legitimate sector are plentiful, and to increase when unemployment is high. In fact, several studies have confirmed this theory, by showing that crime rises and falls with the business cycle and the ups and downs of the economy. What about the "demand" side of the market Potential victims can take costly actions such as installing burglar alarms, taking cabs instead of walking in high-crime areas, purchasing defensive firearms, and taking lessons in self-defence. All of these activities might affect the potential victim's chances of being victimised. Although potential victims do not actually "demand" crime, they do demand-and devote considerable resources to trying to achieve-reductions in their chances of being victimised. This is the reason for why they "demand" less crime. However according to Kopcke et al (2004) "Workers react this way even if demand declines temporarily" (Kopcke et al, 2004) refers to the notion that even if the local authorities go on with penalties and punishments, that would not completely deter offenders. Similar is the case when offender does not certain preventive measures, one might argue that the action of potential offenders is similar to a "demand" for more crime. Although private individuals become the victims of crime, a large part of the "market" for crime is handled through the public sector. The public sector takes on a lot of these responsibilities because crime reduction has many attributes of a "public" good. Examples of other public goods are national defence and pollution control. A public good is one in which people who "consume" the good cannot exclude others from consuming. Thus although it might be in everyone's best interest to contribute to a private effort to reduce pollution or to decrease the supply of crime, since those who do not contribute still enjoy the benefits of these efforts, many people will 'free ride' off the expenditures of others. Thus the private marketplace would not supply enough of that good if left to market forces, and the government might be able to make all citizens better off by taxing them and providing the services directly. The "supply" of crime is therefore affected only by 'supply' treatment prog rams like law enforcement; corrections etc. One of the most common methods to study the relationship