The Political Economy of International Trade

The Political Economy of International Trade Chapter Outline OPENING CASE: Why Are Global Food Prices Soaring? INTRODUCTION INSTRUMENTS OF TRADE POLICY Tariffs Subsides Country Focus: Subsidized Wheat Production in Japan Import Quotas and Voluntary Export Restraints Local Content Requirements Administrative Polices Antidumping Policies Management Focus: U. S. Magnesium Seeks Protection THE CASE FOR GOVERNMENT INTERVENTION Political Arguments for Intervention Country Focus: Trade in Hormone-Treated Beef Economic Arguments for Intervention THE REVISED CASE FOR FREE TRADE Retaliation and Trade War Domestic Politics DEVELOPMENT OF THE WORLD TRADING SYSTEM From Smith to the Great Depression 1947-1979: GATT, Trade Liberalization, and Economic Growth 1980-1993: Protectionist Trends The Uruguay Round and the World Trade Organization WTO: Experience to Date The Future of the WTO: Unresolved Issues and the Doha Round Country Focus: Estimating the Gains from Trade for America FOCUS ON MANAGERIAL IMPLICATIONS Trade Barriers and Firm Strategy Policy Implications SUMMARY CRITICAL THINKING AND DISCUSSION QUESTIONS CLOSING CASE: Agricultural Subsidies Learning Objectives 1. Describe the policy instruments used by governments to influence international trade flows. 2. Understand why governments sometimes intervene in international trade. 3. Articulate the arguments against strategic trade policy. 4. Describe the development of the world trading system and the current trade issues. 5. Explain the implications for managers of developments in the world trading system. Chapter Summary This chapter begins with a discussion of the six main instruments of trade policy, including tariffs, subsidies, import quotas, voluntary export estraints, local content requirements, and administrative policies. This section is followed by a discussion of the merits of government intervention into international trade. The author provides a balanced view of this difficult issue. The second half of the chapter focuses on the development of the global trading system. A historical context is provided, along with a view of the global trading system as it exis ts today. The author acquaints the reader with the General Agreement on Trade and Tariffs (GATT) and the World Trade Organization. Opening Case: Why Are Global Food Prices Soaring? Summary The opening case examines why global food prices are rising significantly. For more than two decades, improvements in agricultural productivity and output have contributed to lower food prices, but in 2007, the price of wheat was double its price of just a few months earlier, and the price of corn had risen some 60 percent. Two explanations for the phenomenon are increased demand, and the effects of tariffs and subsidies for bio-fuels. Discussion of the case can revolve around the following questions: QUESTION 1: Food prices have risen dramatically since 2007. Reflect on the reasons for the price increase, and discuss the implications of higher prices for consumers in developed and developing countries. ANSWER 1: For decades, consumers have enjoyed the benefits of increased productivity and output in the global food industry. In 2007, however, everything changed. The price of wheat reached its highest point ever, and the price of corn rose 60 percent over its 2006 price. Two factors contributed to this situation. The first was the increased demand for food from China and India. The second factor involved tariffs and subsidies for bio-fuels. Farmers in the European Union and in the United States are currently the recipients of subsidies for the production of crops used in bio-fuels. As a result, land that might be used for growing food is being converted to bio-fuel crops, pushing up prices on food. While some experts believe that sugar cane may be a better product for bio-fuel production than corn, tariffs on imported sugar cane effectively are keeping the crop out of the market. While all consumers are feeling the pain of higher food prices, the situation is especially dire for consumers in poor countries where calorie intake could be reduced by as much as -8 percent by 2020. QUESTION 2: How has demand for bio-fuels affected the price of food? What are the implications of this trend? Reflect on the role of government in pushing prices up. What role do tariffs and subsidies play in the situation? In your opinion, should the governments of the United States and the European Union bear any responsibility for bringing food prices back down? ANSWER 2: In an effort to slow global warming, both the European Union and the United States have adopted policies designed to increase the production of ethanol and bio-diesel. The policies involve providing subsidies to farmers. The net effect of the subsidies is to encourage farmers to produce less food, and more crops that can be used in bio-fuel production. The situation is exacerbated by high tariffs on alternative products that can be used for bio-fuel production – particularly sugar cane. Most students will recognize that the combined effect of the subsidies and tariffs are creating a difficult situation for consumers, while at the same time protecting producers. Some students may note the irony of the situation. Consumers, hit by higher prices at the pump are putting more pressure on companies to develop cheaper and more environmentally friendly sources of energy, but in doing so are actually contributing to higher prices at the grocery store. Some students may wonder whether it makes more sense to consider non-food related sources of energy. Honda Motors is currently developing a car that runs on Teaching Tip: To expand this discussion, consider {http://www. businessweek. com/bwdaily/dnflash/content/may2008/db20080513_317940. htm? chan=search}, {http://www. usinessweek. com/globalbiz/content/may2008/gb20080520_439607. htm? chan=search}, and {http://www. businessweek. com/magazine/content/08_19/b4083026413508. htm? chan=search}. Video Note: There are two iGlobes directly related to this case. The first is Supply, Price of Food Increase Hardship for World’s Poor, and the second is Agricultural Problems Lead to Farmer Suicides in India. Chapter Outline with Lecture Notes, Video Notes, a nd Teaching Tips INTRODUCTION A) This chapter explores the political reality of international trade. Free trade refers to a situation where a government does not attempt to restrict what its citizens can buy from another country or what they can sell to another country. While many nations are nominally committed to free trade, they tend to intervene in international trade to protect the interests of politically important groups. B) The major objective of this chapter is to describe how political realities have shaped, and continue to shape, the international trading system. INSTRUMENTS OF TRADE POLICY A) In this section, the text reviews seven main instruments of trade policy. These are: tariffs, subsidies, import quotas, voluntary export restraints, local content requirements, antidumping policies and administrative policies. Tariffs B) A tariff is a tax levied on imports (or exports) that effectively raises the cost of imported (or exported) products relative to domestic products. Specific tariffs are levied as a fixed charge for each unit of a good imported, while ad valorem tariffs are levied as a proportion of the value of the imported good. The important thing to understand about a tariff is who suffers and who gains. The government gains, because the tariff ncreases government revenues. Domestic producers gain, because the tariff affords them some protection against foreign competitors by increasing the cost of imported foreign goods. Consumers lose since they must pay more for certain imports. C) Thus, tariffs are unambiguously pro-producer and anti-consumer, and tariffs reduce the overall efficiency of the world economy. Subsidies D) A subsidy is a government payment to a domestic producer. By lowering costs, subsidies help domestic producers in two ways: they help producers compete against low-cost foreign imports and they help producers gain export markets. However, many subsidies are not that successful at increasing the international competitiveness of domestic producers. Moreover, consumers typically absorb the costs of subsidies. Country Focus: Subsidized Wheat Production in Japan Summary This feature explores the subsidies Japan continues to pay its wheat farmers. Tens of thousands of Japanese farmers continue to grow wheat despite the fact that the wheat grown in North America, Argentina, and Australia is far cheaper and of superior quality. The Japanese farmers stay in business thanks to the hefty subsidies paid by the Japanese government. As a result, wheat prices in Japan are substantially higher than they would be if a free market were allowed to operate. Suggested Discussion Questions 1. Who are the winners and who are the losers from Japanese wheat subsidies? Discussion Points: Students will probably recognize that, as is usually the case with protectionist measures, the subsidies Japan pays its wheat farmers benefit the farmers, but cost the average consumer in the form of higher wheat prices. In fact, in 2004, Japanese consumers covered $700 million in subsidies! The subsidies also limit imports of wheat, which negatively affects foreign wheat farmers. 2. Why does Japan continue to subsidize its wheat farmers when cheaper wheat is readily available in international markets? Discussion Points: Thanks to subsidies, wheat prices in Japan are between 80 and 120 percent higher than they are in world markets. In fact, if the subsidies were eliminated, Japanese wheat production would cease entirely. However, at least for now, because politicians count on the votes of the wheat farmers, there appears to be no plan to end the subsidies. Teaching Tip: To extend this discussion, consider discussing Japan’s role in the production of rice. For more on this, go to {http://www. businessweek. com/globalbiz/content/may2008/gb20080522_132137. htm? chan=search}, and {http://www. businessweek. com/globalbiz/content/may2008/gb20080522_132137_page_2. htm}. Import Quotas and Voluntary Export Restraints E) An import quota is a direct restriction on the quantity of some good that may be imported into a country. A tariff rate quota is a hybrid of a quota and a tariff where a lower tariff is applied to imports within the quota than to those over the quota. A voluntary export restraint is a quota on trade imposed by the exporting country, typically at the request of the importing country’s government. F) While import quotas and voluntary export restraints benefit domestic producers by limiting import competition, they raise the prices of imported goods. The extra profit that producers make when supply is artificially limited by an import quota is referred to as a quota rent. Local Content Requirements G) A local content requirement demands that some specific fraction of a good be produced domestically. As with import quotas, local content requirements benefit domestic producers, but consumer face higher prices. Administrative Policies H) Administrative trade polices are bureaucratic rules that are designed to make it difficult for imports to enter a country. The effect of these polices is to hurt consumers by denying access to possibly superior foreign products. Antidumping Policies I) Dumping is variously defined as selling goods in a foreign market below their costs of production, or as selling goods in a foreign market at below their â€Å"fair† market value. Dumping is viewed as a method by which firms unload excess production in foreign markets. Alternatively, some dumping may be the result of predatory behavior, with producers using substantial profits from their home markets to subsidize prices in a foreign market with a view to driving indigenous competitors out of that market. Once this has been achieved the predatory firm can raise prices and earn substantial profits. J) Antidumping polices (also known as countervailing duties) are policies designed to punish foreign firms that engage in dumping. The ultimate objective is to protect domestic producers from â€Å"unfair† foreign competition. Management Focus: U. S. Magnesium Seeks Protection Summary This feature explores the dumping charged levied by U. S. Magnesium against Chinese and Russian producers. According to U. S. Magnesium, the sole American producer of magnesium, Russian and Chinese producers were selling magnesium significantly below market value in an effort to drive U. S. Magnesium out of business. The company failed a complaint with the International Trade Commission (ITC) which ultimately ruled in favor of U. S. Magnesium. Suggested Discussion Questions 1. What is dumping? Were Chinese and Russian producers guilty of dumping? How did U. S. Magnesium justify its claims against Russian and Chinese producers? Discussion Points: Dumping is defined as selling goods in a foreign market below the cost of production, or below fair market value. In 2004, U. S. Magnesium claimed that China and Russia had been dumping magnesium in the United States. The company noted that in 2002 and 2003, magnesium imports rose, and prices fell. While the ITC ruled in favor of the American company, some students might question whether the fact that the Chinese could sell their product at low prices might simply reflect the country’s significantly lower wage rates. . What does the ITC’s ruling mean for American consumers of magnesium? In your opinion, was the ruling fair? Discussion Points: The ITC ruled in favor of U. S. Magnesium finding that indeed China and Russia had been dumping their product in the United States. Fines ranging from 50 to 140 percent on imports were imposed against China, and 19 to 22 percent on Russian com panies. Most students will note that while the ITC’s decision is a good one for U. S. Magnesium and its employees. for consumers, the ruling means magnesium prices that are significantly higher than those in world markets. Students will probably argue that this result is unfair, and should be revisited. Teaching Tip: U. S. Magnesium’s web site is available at {http://www. usmagnesium. com/}. THE CASE FOR GOVERNMENT INTERVENTION A) In general, there are two types of arguments for government intervention, political and economic. Political arguments for intervention are concerned with protecting the interests of certain groups within a nation (normally producers), often at the expense of other groups (normally consumers). Economic arguments for intervention are typically concerned with boosting the overall wealth of a nation (to the benefit of all, both producers and consumers). Political Arguments for Intervention B) Political arguments for government intervention cover a range of issues including protecting jobs, protecting industries deemed important for national security, retaliating against unfair foreign competition, protecting consumers from â€Å"dangerous† products, furthering the goals of foreign policy, and protecting the human rights of individuals in exporting countries. Protecting Jobs and Industries C) The most common political reason for trade restrictions is â€Å"protecting jobs and industries. † Usually this results from political pressures by unions or industries that are threatened by more efficient foreign producers, and have more political clout than the consumers who will eventually pay the costs. National Security D) Protecting industries because they are important for national security is another argument for trade restrictions. The U. S. overnment protects industries like steel, aerospace, and electronics, on the basis of this argument, and has made special arrangements to protect the semiconductor industry. Lecture Note: In the United States, the Bureau of Export Administration enhances the nation's security and its economic prosperity by controlling exports for national security, foreign security, foreign policy, and short supply reasons. To learn more, go to {http://www. bis. doc. gov/about/index. htm}, click on Policies and R egulations and then on Export Administration Regulations. . Retaliation E) Government intervention in trade can be used as part of a â€Å"get tough† policy to open foreign markets. By taking, or threatening to take, specific actions, other countries may remove trade barriers. But when threatened governments do not back down, tensions can escalate and new trade barriers may be enacted. Lecture Note: The trading relationship between China and the United States is an ongoing topic of discussion for many. To expand the discussion on the role of government and retaliatory trade measures, consider {http://www. businessweek. om/globalbiz/content/may2008/gb20080528_845850. htm? chan=search} Protecting Consumers F) Consumer protection can also be an argument for restricting imports. The Country Focus below suggests that the European Union’s concern over beef was, in part, due to an interest in protecting consumers. Since different countries do have different health and safety standards, what may be acceptable in one country may be unacc eptable in others. Furthering Foreign Policy Objectives G) On occasion, governments will use trade policy to support their foreign policy objectives. One aspect of this is to grant preferential trade terms to countries that a government wants to build strong relations with. Trade policy has also been used several times as an instrument for pressuring punishing â€Å"rogue states† that do not abide by international laws or norms. In recent years the United States has imposed trade restrictions against Libya, Iran, Iraq, North Korea, Cuba, and other countries where governments were pursuing policies that were not viewed favorably by the U. S. government. A serious problem with using trade as an instrument of foreign policy is that other countries can undermine any unilateral trade sanctions. The U. S. Congress has passed two acts, the Helms-Burton Act and the D’Amato Act, in an effort to protect American companies from such actions. Protecting Human Rights H) Concern over human rights in other countries plays an important role in foreign policy. Governments sometimes use trade policy to improve the human rights policies of trading partners. Governments also use trade policies to put pressure on governments to make other changes. Unless a large number of countries choose to take such action, however, it is unlikely to prove successful. Some critics have argued that the best way to change the internal human rights of a country is to engage it in international trade. The decision to grant China most favored nation status was based on this philosophy. Country Focus: Trade in Hormone-Treated Beef Summary This feature describes the trade battle between the United States and the European Union over beef from cattle that have been given growth hormones. It outlines the basic issues that led to the dispute, and shows how the World Trade Organization has treated the case. Suggested Discussion Questions 1. Why is the European Union so concerned about beef from cattle that have been given growth hormones? Discussion Points: Some students may argue that the European Union’s ban on growth hormones in cattle was little more than a thinly veiled form of protectionism. Australia, New Zealand, and Canada, which also use the hormones in their cattle industry, were also affected by the ban. The European Union claimed that it was merely protecting the health of its citizens, however studies showed that the hormones posed no health issues for people. 2. Why did the WTO rule against the European Union? Discussion Points: The World Trade Organization ruled against the European Union stating that the European Union’s ban on imported hormone treated beef had no scientific justification. Even so, the European Union refused to lift the ban, which had strong public support, and in the end, the European Union was assessed punitive tariffs. The European Union held on to its principles though, and as of 2008, continued to maintain its restrictions on hormone treated beef despite the resulting punitive tariffs. Teaching Tip: The WTO maintains a site for students. Go to {www. wto. org} and click on the students icon to search the site, research countries, and even see a list of internships that are available at the WTO. Economic Arguments for Intervention I) Economic arguments for intervention include the infant industry argument and strategic trade policy. The Infant Industry Argument J) The infant industry argument suggests that an industry should be protected until it can develop and be viable and competitive internationally. Unless an industry is allowed to develop and achieve minimal economies of scale, foreign competitors may undercut prices and prevent a domestic industry from developing. The infant industry argument has been accepted as a justification for temporary trade restrictions under the WTO. K) A problem with the infant industry argument is determining when an industry â€Å"grows up. † Some industries that are just plain inefficient and uncompetitive have argued they are still infants after 50 years. The other problem is that given the existence of global capital markets, if the country has the potential to develop a viable competitive position its firms should be capable of raising the necessary funds without additional support from the government. Strategic Trade Policy L) Strategic trade policy suggests that in cases where there may be important first mover advantages, governments can help firms from their countries attain these advantages. Strategic trade policy also suggests that governments can help firms overcome barriers to entry into industries where foreign firms have an initial advantage. THE REVISED CASE FOR FREE TRADE A) While strategic trade policy identifies conditions where restrictions on trade may provide economic benefits, there are two problems that may make restrictions inappropriate: retaliation and politics. Retaliation and Trade War B) Krugman argues that strategic trade policies aimed at establishing domestic firms in a dominant position in a global industry are beggar-thy-neighbor policies that boost national income at the expense of other countries. A country that attempts to use such policies will probably provoke retaliation. Domestic Politics C) Governments do not always act in the national interest when they intervene in the economy. Instead special interest groups may influence governments. Thus, a further reason for not embracing strategic trade policy, according to Krugman, is that such a policy is almost certain to be captured by special interest groups within an economy, who will distort it to their own ends. DEVELOPMENT OF THE GLOBAL TRADING SYSTEM A) Many governments recognize the value of unrestricted free trade, but are hesitant to unilaterally lower their trade barriers in case other countries do not follow suit. Since World War II, and international trading framework has evolved that enables governments to negotiate a set of rules to govern cross-border trade and lower trade barriers. For the first 50 years, the framework was known as the General Agreement on Tariffs and Trade (GATT). More recently, it has been known as the World Trade Organization (WTO). From Smith to the Great Depression B) Up until the Great Depression of the 1930s, most countries had some degree of protectionism. Great Britain, as a major trading nation, was one of the strongest supporters of free trade. C) Although the world was already in a depression, in 1930 the United States enacted the Smoot-Hawley Act, which created significant import tariffs on foreign goods. As other nations took similar steps and the depression deepened, world trade fell further. 1947-1979: GATT, Trade Liberalization, and Economic Growth D) After WWII, the U. S. and other nations realized the value of freer trade, and established the General Agreement on Tariffs and Trade (GATT). E) The approach of GATT (a multilateral agreement to liberalize trade) was to gradually eliminate barriers to trade. Over 100 countries became members of GATT, and worked together to further liberalize trade. Teaching Tip: A full review of GATT, containing an actual copy of the agreement, is available at {http://www. ciesin. org/TG/PI/TRADE/gatt. html}. 1980-1993: Protectionist Trends F) During the 1980s and early 1990s the world trading system as â€Å"managed† by GATT came under strain. First, Japan’s economic strength and huge trade surplus stressed what had been more equal trading patterns, and Japan’s perceived protectionist (neo-mercantilist) policies created intense political pressures in other countries. Second, persistent trade deficits by the United States, the world’s largest economy, caused significant economic problems for some industries and political problems for the government. Third, many countries found that although limited by GATT from utilizing tariffs, there were many other more subtle forms of intervention that had the same effects and did not technically violate GATT (e. g. VERs). The Uruguay Round and the World Trade Organization G) Against the background of rising protectionist pressures, in 1986 GATT members embarked on their eighth round of negotiations to reduce tariffs (called the Uruguay Round). This was the most ambitious round to date. Services and Intellectual Property H) One goal was to expand beyond the regulation of manufactured goods and address trade issues related to services and intellectual property, and agriculture. The World Trade Organization Lecture Note: To see current issues at the WTO, go to {http://www. wto. org/} and click on â€Å"News. † I) When the WTO was established, its creators hoped the WTO’s enforcement mechanisms would make it a more effective policeman of the global trade rules than the GATT had been. The WTO encompassed GATT along with two sister organizations, the General Agreement on Trade in Services (GATS) and the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS). WTO: Experience to Date J) At the time of its establishment, the great hope was that the WTO might emerge as an effective advocate and facilitator of future trade deals, particularly in such areas as services. In general, the experience so far has been encouraging. WTO as Global Police K) So far, the WTO’s policing and enforcement mechanisms are having a positive effect. In general, countries have adopted WTO recommendations for trade disputes. Expanding Trade Agreements L) In 1997, 68 countries that account for more than 90 percent of world telecommunications revenues pledged to open their markets to foreign competition and to abide by common rules for fair competition in telecommunications. Similarly, 102 countries pledged to open to varying degrees their banking, securities, and insurance sectors to foreign competition. Like the telecommunications deal, the agreement covers not just cross-border trade, but also foreign direct investment. The WTO in Seattle: A Watershed? M) The 1999 meeting of the WTO in Seattle was important not only for what happened between the member countries, but also for what occurred outside the building. Inside, members failed to agree on how to work toward the reduction of barriers to cross-border trade in agricultural products and cross-border trade and investment in services. Outside, the WTO became a magnet for various groups protesting free trade. The Future: Unresolved Issues and the Doha Round N) Substantial work still remains to be done on the international trade front. Four issues on the current agenda of the WTO are the rise of anti-dumping policies, the high level of protectionism in agriculture, the lack of strong protection for intellectual property rights in many nations, and continued high tariffs on nonagricultural goods and services in many nations. Lecture Note: The European Union’s trade commissioner is urging nations to complete Doha round negotiations prior to the beginning of a new administration in the United States. Further details can be found at {http://www. businessweek. com/globalbiz/content/jan2008/gb20080128_519854. htm? chan=search}. Anti-Dumping Actions O) There has been a proliferation of antidumping actions in recent years, perhaps because of the rather vague definition of what constitutes dumping. The WTO is encouraging members to strengthen the regulations governing the imposition of antidumping duties. Protectionism in Agriculture P) The WTO is concerned with the high level of tariffs and subsidies in the agricultural sector of many economies. However, the advanced countries of the world defend the current system because they want to protect their producers from lower-cost producers from developing nations. Protecting Intellectual Property Q) The agreement to protect intellectual property (TRIPS) obliges WTO members to grant and enforce patents lasting at least 20 years and copyrights lasting 50 years. The basis for this agreement was a strong belief among signatory nations that the protection of intellectual property rights is an essential element of the international trading system. Market Access for Nonagricultural Goods and Services R) The WTO would like to bring down tariff rates on nonagricultural goods and services, and reduce the scope for the selective use of high tariff rates. The hope is that at some point, rates would move to zero. Country Focus: Estimating the Gains from Trade for America Summary This feature explores the results of a study by the Institute for International Economics. The study, which estimated the gains to the U. S. economy from free trade, found that the United States’ GDP was more than 7 percent higher as a result of reductions in trade barriers than it would have been if the barriers remained. The study also estimated that if tariffs were reduced to zero, significant gains would still result. Suggested Discussion Questions 1. What does the Institute for International Economics suggest about the benefits of free trade? Discussion Points: The Institute for International Economics found that thanks to reductions in trade restrictions, the United States’ GDP was up. The Institute also estimated that even greater gains in the country’s GDP would occur if protectionism was eliminated all together. Students should recognize that these findings follow the principles of Adam Smith and David Ricardo and suggest that free trade is beneficial. 2. According to the Institute for International Economics study, a move oward free trade would cause disruption in employment. Is it still worth pursuing free trade if it means that some people lose their jobs? Discussion Points: This question should prompt a strong debate among students. Some students will probably suggest that the costs in terms of lost wages and benefits associated with free trade outweigh the benefits that would be gained. Other students howev er, will probably argue that since protectionism typically benefits only a few at the expense of others, while free trade generates greater economic growth and higher wages, a free trade policy should be followed. Teaching Tip: The Web site for Institute for International Economics is available at {http://www. iie. com/}. A New Round of Talks: Doha R) In late 2001, the WTO launched a new round of talks at Doha, Qatar. The agenda includes cutting tariffs on industrial goods and services, phasing out subsidies to agricultural producers, reducing barriers to cross-border investment, and limiting the use of anti-dumping laws. FOCUS ON MANAGERIAL IMPLICATIONS A) What does all of this mean for business? Managers need to consider how trade barriers impact firm strategy, and what role they can play in promoting free trade or trade barriers. Trade Barriers and Firm Strategy B) Trade barriers are a constraint upon a firm’s ability to disperse its productive activities. First, trade barriers raise the cost of exporting products to a country. Second, voluntary export restraints (VERs) may limit a firm’s ability to serve a country from locations outside that country. Third, to conform to local content requirements, a firm may have to locate more production activities in a given market than it would otherwise. All f the above effects are likely to raise the firm’s costs above the level that could be achieved in a world without trade barriers. In addition, the threat of antidumping action could limit the ability of a firm to use aggressive pricing as a way to gain market share. Policy Implications C) In general, international firms have an incentive to lobby for free tra de, and keep protectionist pressures from causing them to have to change strategies. While there may be short-term benefits to having governmental protection in some situations, in the long run these can backfire and other governments can retaliate. Critical Thinking and Discussion Questions 1. Do you think the U. S. government should consider human rights when granting preferential trading rights to countries? What are the arguments for and against taking such a position? Answer: China is frequently cited as a violator of human rights, and can form the basis for a discussion of this question. While the answer to the first question clearly is a matter of personal opinion, in stating their opinions, students should consider the following points. Trade with the U. S. is very important to China, as China views the U. S. as an important market. The U. S. is also an important source of certain products. Thus, the U. S. has some leverage with trade when trying to influence China’s human rights policies. For this policy to have much effect, however, other nations important to China must adopt similar policies. Otherwise China will simply choose to work with other countries, and U. S. consumers and producers may be more negatively impact than the Chinese. Another concern with tying MFN status to human rights is that denying MFN may make the human rights situation worse rather than better. By engaging in trade, the income levels in China will increase, and with greater wealth the people will be able to demand and receive better treatment. 2. Whose interests should be the paramount concern of government trade policy – the interests of producers (businesses and their employees) or those of consumers? Answer: The long run interests of consumers should be the primary concern of governments. Unfortunately consumers, each of whom may be negatively impacted by only a few dollars, are less motivated and effective lobbyists than a few producers that have a great deal at stake. While in some instances it could be argued that domestic consumers will be better off if world-class domestic producers are nurtured and allowed to gain first mover advantages in international markets, it is doubtful that the government will be better than international capital markets at â€Å"picking winners†, and will more likely pick the firms with the greatest political clout. While employees may well lose jobs if there are more efficient foreign competitors, some would argue that this is just the nature of competition, and that the role of government should be to help these employees get jobs where they can be efficiently employed rather than to protect them from reality in inefficient firms. 3. Given the arguments relating to the new trade theory and strategic trade policy, what kind of trade policy should business be pressuring government to adopt? Answer: According to the textbook, businesses should urge governments to target technologies that may be important in the future and use subsidies to support development work aimed at commercializing those technologies. Government should provide export subsidies until the domestic firms have established first mover advantages in the world market. Government support may also be justified if it can help domestic firms overcome the first-mover advantages enjoyed by foreign competitors and emerge as viable competitors in the world market. In this case, a combination of home market protection and export-promoting subsidies may be called for. . You are an employee of an U. S. firm that produces personal computers in Thailand and then exports them to the U. S. and other countries for sale. The personal computers were originally produced in Thailand to take advantage of relatively low labor costs and a skilled workforce. Other possible locations considered at that time were Malaysia and Hong Kong. The U. S. government decides to impose punitive 100 percent ad valorem tariffs on imports of computers from Thailand to punish the country for administrative trade barriers that restrict U. S. exports to Thailand. How should your firm respond? What does this tell you about the use of targeted trade barriers? Answer: As long as the manufacturing requirements haven't changed significantly, looking at Malaysia or Hong Kong again for production would appear obvious. By the U. S. government introducing a specific ad valorem tariff on Thai computer imports, it would be easy to get around these by looking at other locations. Hence such targeted trade barriers can often be easily circumvented without having to locate production facilities in an expensive country like the U. S. 5. Reread the Management Focus feature on U. S. Magnesium Seeks Protection. Who gains most from the anti-dumping duties levied by the United States on imports of magnesium from China and Russia? Who are the losers? Are these duties in the best national interests of the United States? Answer: Most students will probably recognize that U. S. producers and their employees are the primary beneficiaries of the anti-dumping duties levied by the United States on Chinese and Russian magnesium imports. As a result of the duties, consumers in the United States will pay higher prices for magnesium-based products. Some students may suggest that by imposing the duties, the United States runs the risk of retaliatory measures from both China and Russia. Closing Case: Agricultural Subsidies Summary The closing case examines the effects of subsidies paid to U. S. cotton farmers. The United States currently pays about $5 billion to cotton farmers for a crop that is worth just $4 billion. The lower prices resulting from the subsides and the excess production they encourage, have had particularly devastating effects on cotton farmers in poor countries. Some estimates show, for example, that the subsidies and excess production in the United States has cost the African country of Benin more economically than it receives in aid from the United States. Discussion of this case can revolve around the following questions: QUESTION 1: Why do you think that the U. S. government pays subsidies to farmers? ANSWER 1: The United States initially began paying subsidies to farmers in the middle of the Great Depression. Many students will probably suggest that the subsidies are still being paid simply because they have been in place for so long. Other students however, may note the power of agricultural lobbyists and the fact that without the subsidies, U. S. farmers could not compete in world markets. This suggests that the government has some incentive to continue with its current policies. QUESTION 2: What is the impact of farm subsidies on the price of agricultural products in the United States, and on prices elsewhere? ANSWER 2: The subsidies paid to U. S. farmers currently run around $29 billion annually. They encourage farmers to produce more products than are needed, and in doing so depress global prices. Cotton subsidies for example, pushed the price of cotton to just $0. 5 in 2006, about half the 1995 price. For farmers in poor countries, the drop in prices has pushed income levels down over 20 percent. QUESTION 3: Who benefits from U. S. farm subsidies, who are the losers? ANSWER 3: Most students will recognize that the primary beneficiaries of the subsidies are farmers. As a result of the subsidies, consumers mus t pay more, and producers in other countries are faced with falling prices, and ultimately lower incomes. QUESTION 4: What would happen if the United States (and other countries) stopped paying subsidies to farmers to grow certain crops? Who would benefit, who would lose? ANSWER 4: If the United States stopped paying subsidies to farmers, consumers would initially see prices fall. Later however, as some farmers, without the support of the subsidies, went out of business, consumers would probably see prices rise to some degree as supply and demand moved together. Producers in other countries like Benin would benefit from increased demand and higher prices. Video Note: The iGlobe Agricultural Problems Lead to Farmer Suicides in India explores the effects of cotton subsidies on farmers in India. The iGlobe is a good complement to the Closing Case. Continuous Case Concept As automakers establish production operations in multiple countries around the world, and rely on suppliers from numerous countries, the question of tariffs and quotas becomes more important. In this chapter’s Continuous Case Concept, explore what happens if a country places a tariff or other trade barrier on imported cars. †¢ Ask students to consider, for example, how consumers would react if the U. S. charged a tariff on every car that is imported from Japan. What would be the likely reaction of Japanese automakers? What would American producers do? †¢ Next, ask students to consider whether such as tariff is â€Å"fair. Who really pays the tariff? Who benefits from the tariff? Who would benefit from free trade in automobiles and car parts? †¢ Finally, explore how efforts by both the United States and the European Union to increase the production of ethanol and bio-diesel (see Opening Case) could impact the auto industry. Honda is currently a market leader in the hybrid vehicle market, but is hampered by the lack of infrastructure to fully support the industry. In 2008, Toyota established a goal to sell 500,000 hybrid vehicles. This exercise works well after the notion of trade barriers has been introduced. It can also be used in a summary discussion of the chapter’s material or in conjunction with the Opening Case. globalEDGE Exercises Use the globalEDGE Resource Desk {http://globalEDGE. msu. edu/ResourceDesk/} to complete the following exercises. Exercise 1 Your company is considering exporting its pharmaceutical products to Japan, but management’s current knowledge of the country’s trade policies and barriers for this sector is limited. Conduct the appropriate level of research in a trade barriers database to identify any information on Japan’s current standards and technical requirements for pharmaceutical products. Prepare an executive summary of your findings. Answer: The quickest way to reach this information would be to search globalEDGE using the phrase â€Å"trade barriers database† at http://globaledge. msu. edu/ResourceDesk/. Once at the Market Access Database website, select â€Å"Trade Barriers Database. † On the search option â€Å"Select Country,† choose â€Å"Japan,† and on the search option â€Å"Select Sector,† choose â€Å"Pharmaceuticals. † A series of reports are listed from which those with more general titles will provide adequate insight for the exercise. Search Phrase: â€Å"Trade Barriers Database† Resource Name: Market Access Database Website: http://mkaccdb. eu. int/ globalEDGE Category: â€Å"Research: Multi-Country† Exercise 2 You work for a national chain of clothing stores that is considering importing textiles from India into the U. S. You want to determine whether the goods are subject to import quotas. Using information provided by the U. S. Customs and Border Protections, prepare a report highlighting the elements that determine whether a shipment is subject to this type of trade restriction. Answer: The U. S. Customs and Border Protections website hosted by the U. S. government offers considerable information on the details of importing or exporting into or out of the U. S. The information for the exercise can be reached by searching for the phrase â€Å"U. S. Customs and Border Protections† at http://globaledge. msu. edu/ResourceDesk/. This resource can also be found under the globalEDGE category â€Å"Research: Government Resources. † Once on the website, click on â€Å"Trade† and select â€Å"Textiles and Quotas† under â€Å"Trade Program Areas. The report, â€Å"Are my Goods Subject to Quotas? ,† is readily available. Search Phrase: â€Å"U. S. Customs and Border Protections† Resource Name: United States: U. S. Customs and Border Protections Website: http://www. cbp. gov/ globalEDGE Category: â€Å"Research: Government Resources† Additional Readings and Sources of Information Economists Rethink Free Trade http://www. businessweek. com/magazine/content/08_06/b4070032762393. htm? chan=search Brazil Urges EU to Scrap Biofuel Tariffs http://www. businessweek. com/globalbiz/content/jul2007/gb2007076_483689. htm? chan=search

A Look at Early American Indian History Essay

In analyzing early American history before the 1870s, it’s vital to have a picture of the lives and lifestyles of the native American Indian people, who have witnessed the immigration of Europeans and other foreign people from a completely different perspective as many of the people who consider themselves to be mainstream Americans today. The American Indian population and tribes have dwindled and suffered at the expense of the influx of migrating peoples into what was once their own land, and First Peoples, a book by Colin Calloway, takes a closer look at the history of Americans who were truly native, who freshly walked the shores and farmed the countryside of the great American continent. First Peoples is a documentary survey of the history of the first Americans, the Indian tribes who first roamed the American lands. The introduction and chapters of the book are broken down into several intriguing parts, including American Indians in American history, American History before Columbus, The Invasions of America, Indians in Colonial and Revolutionary America, American Indians and the New Nation, Defending the West, Kill the Indian and Save Man (which begins the area of the book which analyses the Native American experience after 1870), From the Great Depression to Self Determination, and Nations within a Nation. In introduction and first chapters of First Peoples, a total of six large sections of Calloway’s book, go into much detail about the experience of the Native American people in early America before the 1870s, from the roots of Native American life dating back as far as possibly 11,500 BC with the finding of the oldest Clovis spear points to the exploration of the varied tribal journeys until the mid 1800s AD. The introduction of the book gives a general overview of the theme of the book, the topics related to Native American history in the Americas and the documentation and sources used to feed knowledge into the introduction. References noted in the introduction as well as references noted throughout Calloway’s documentary include the several noted here as well as many more: Abler, T. & Einhorn, A. â€Å"Bonnets, Plumes, and Headbands in West’s Painting of Penn’s Treaty. † American Indian Art Magazine 21, 1996: 46. Banner, S. How the Indians Lost Their Land: Law and Power on the Frontier. Cambridge, MA: Harvard University Press, 2005. Brown, J. & Vibert, E. Reading Beyond Words: Contexts for Native History. Peterboro, Ontario: Broadview Press, 1996. DuBois, M. & McKiernan, K. â€Å"In the Spirit of Crazy Horse. † PBS series Frontline, 1990. Kipp, D. & Fisher, J. â€Å"Transitions: Destruction of A Mother Tongue. † Native Voices Public Television Workshop, 1991. Lesiak, C. â€Å"In the White Man’s Image. † PBS series American Experience, 1992. Steckler, P. & Welch, J. Killing Custer: The Battle of Little Big Horn and the Fate of the Plains Indians. New York: W. W. Norton, 1994. Usner, D. (1985). â€Å"American Indians on the Cotton Frontier: Changing Economic Relations with Citizens and Slave in the Mississippi Territory. † Journal of American History 72, 1985: 297-317. In First Peoples, Calloway has utilized a large number and variety of sources, from scholarly books to journals, magazines to films, and the references are noted at the end of every chapter and at the end of the book. On can see that it is through the use of varied and substantial amounts of references and study that Calloway has been able to craft such a detailed and powerful documentary of American Indian life and history. The first chapter of First Peoples focuses on the very early migration and creation theories related to American Indian tribes and the settlement of the first people who migrated across the bearing straight many thousands of years ago, the findings and studies of early fossils and civilizations, and the emergence over time of the Apalachee, Caddos, Chickasaws, Chocktaws, Cheyennes, Cherokee, Creeks, Hurons, Natchez, Iroquois, Mohawks, Neutrals, Petuns, Senecas, Shawnees, Timucua and other tribes. Calloway discusses the hunting and farming ways of life of the native tribes, including the first buffalo hunters of the plains, the farmers of the southwest, the mound builders and farmers of the eastern woodlands, and the affluence of the West Coast. Finally, the chapter ends with a look at the arrival of the European colonists into a world which was already burgeoning with the cultures, battles, celebrations and struggles of the native peoples. In summarizing the second chapter of First Peoples, one notes that Calloway analyses the confrontations of the American Indians with the early European settlers from 1492 to 1680. Through the influx of new people into America, the cultural landscape of America begins to shift and change around the new immigrants even more than it had between the tribal peoples. The Indians face off with the Spanish, French, and English colonists, aiming to balance survival with the struggle for power known as gold, god, commerce, priests, empires, and pelts. The economic and religious impact on the American Indians after the arrival of the Europeans was profound, and both cultures, Indian and European, learned new ways of being and living, were educated by one another in their vastly differing stock holds of cultural history and backgrounds, and clashed together when the trade of goods and ideas seemed tipped too far in favor of one over the other. The balance of power was not easy to manage, and more often than not, American Indians suffered more at the hands of the Europeans than vice versa. The chapter three, Indians in Colonial and Revolutionary America, Calloway takes a look at both Indians in colonial society and colonists in Indian society as they both draw together more closely and clash more violently. The impact of the fur trade and other economic industries brought a reduced capacity to hunt and live off the land, bringing peoples together in tighter communities, resulting in the loss of European and tribal languages for the minority people pressing into the mainstream, the stealing and returning of captives, division within tribal communities, peace treaties, the removal of Indian tribes, and the banding together of tribes and colonists to fight against the most recent invading immigrating force. In reading this chapter, one is able to more clearly understand the attempts at peace and unity merging and contrasting vividly with harsh battles and banishment of peoples. This era of American history is strewn with the movement of individuals, with change and newfound placement, with horrifying prejudice and necessary cooperation. In reading the American Indians and the New Nation, the fourth chapter of First Peoples, one is able to better understand the nation as it gained independence and began working together and a more unified system. Although the emergence of a truly independent America involved new statehood and politics which banded together people from across the vast country, it also brought with it new laws aimed at cleansing Indian people from European and mainstream America. With the populations of American Indians ever dwindling and racism and prejudice haunting the beginnings of American history as an independent nation, the American Indians suffered the loss of political battles as well as the loss of tribal people to death and disease, alcoholism and suicide. Chapter five, the last chapter focusing on American history before 1870, sees only further aggression against the American Indian people and tribes. Policies of detribalization find their ways onto the desks of politicians even as American Indian statehood is granted to Oklahoma. Indian children are removed from their tribes and forced in to state schools across the nation, even to the point of stripping Indian children from their families to live in permanent boarding schools for the effective Americanization or Europeanization of the Indian children. The divisions and suffering within the American Indian families, cultures, and lifestyles during this time are still felt to this day. Although this chapter ends with a look at new American Indian leaders and furthering active attempts to overcome the racism and unfair practices of the European people against the American Indians, it’s important to note the devastation suffered by the American Indians at the hands of the European Americans and the troubling ripple effects of hate crimes against Indians which are still felt within American society today. Overall, First Peoples is a wonderful book for the in depth study of historical life for the American Indian people and tribes, lending insight to the wellness and status of American Indians today in modern America. The creation of America as an independent nation is rife with struggles and diversity, with clashes and vibrancy. The coming together of various peoples has often dealt the people with the most differences a worse deck, however, it is important to view the coming together of our patchwork of American cultures and to know what has happened before, so that people can make informed judgments about the history of yesterday and the future of tomorrow. Luckily, the harsh barbarianism of the past is less and less a part of present society, and prejudice and racism less and less a prominent fixture of modern society worldwide. Although there are still differences to accept and divisions to heal, the world grows more peaceful with every passing decade. First Peoples lend true insight into the well researched history of the American Indians and shines light on what has gone before and what still goes onward in this changing and evolving American culture. Works Cited Calloway, C. First Peoples: A Documentary Survey of American Indian History. Macmillan, 2007.

Tuesdays with Morrie Novel Analysis

3) He lived in the late 1970s. â€Å"It is the late spring of 1979†¦Ã¢â‚¬  (pg. 3) Morrie is a sociology professor at Brandeis University. â€Å"†¦the senior class of Brandeis University†¦my favorite professor†¦Ã¢â‚¬  (pg. 3) Morrie has a wife named Charlotte, and two sons named rob and Jon. â€Å"Morrie with his wife Charlotte; Morrie with his two sons rob†¦ and Jon. † (pg. 91) Mitch is about fifty one years old and lived in the 1990s. He is a sports journalist. â€Å"I earned a master’s degree in journalism and took the first job offered, as a sports writer. ’ (pg. 16) He has an older sister and a younger brother. â€Å"You have an older sister too right? † (pg. 94), â€Å"I do indeed have a younger brother†¦two-years-younger brother. † (pg. 95) Morrie’s fortune changed when he was diagnosed with ALS. â€Å"Morrie had amyotrophic lateral sclerosis (ALS)†¦Ã¢â‚¬  (pg. 7). ALS caused Morrie to â€Å"have trouble walking† (pg. ), and it caused him not to do a lot of other things like use the bathroom by himself. â€Å"Connie would wheel him to the toilet, then lift him from the chair and support him as he urinated into the beaker. † (pg. 49) His moral character also changed because he said, â€Å"Now that I’m suffering, I feel closer to people who suffer than I ever did before. † (pg. 50) Mitch’s fortune changes when the newspaper he works for goes on strike, â€Å"†¦the unions at my newspaper had gone on strike. † (pg. 44) His moral character also changes because Morrie â€Å"finally made him cry†. pg. 186). Mitch’s knowledge changes because he learns that â€Å"offering others what you have to give† will give you satisfaction. (pg. 126). He also learns how to find a meaningful life by â€Å"devoting yourself to loving others, devoting yourself to your community around you, and devoting yourself to something that gives you purpose and meaning. (pg. 127) I think that Morrie is a round character because we see different sides of him. We see a very emotional side like on page 185 when it says, â€Å"His eyes ot small, and then he cried†¦Ã¢â‚¬  we also see a carefree side like on page 5 when it says, â€Å"He would close his eyes and with a blissful smile begin to move to his own sense of rhythm. † I also think he is a static character because his personality, morals, or feelings didn’t change. I think Mitch is also a round character because we see different sides of him. We see a tough side on page 30 when it says, â€Å"I wear old gray sweatshirts and box in the local gym and walk around with an unlit cigarette in my mouth†¦Ã¢â‚¬  We see an emotional side on page 186 when Morrie finally makes him cry. I think Mitch is a dynamic character because in the beginning of the story Mitch is more concentrated on his work. â€Å"In a few years, I was not only penning columns. I was writing sports books, doing radio shows, and appearing regularly on TV†¦Ã¢â‚¬  (pg. 16) Then in the middle of the story he didn’t concentrate on work because he went to visit Morrie every Tuesday. I think the most important lesson Morrie taught me was to appreciate everyday in every way. Morrie said, â€Å"The loving relationships we have, the universe around us, we take these things for granted. (pg. 84) After reading this book I truly do realize that I take things for granted. I also think â€Å"detachment† really helped me. Morrie said, â€Å"Detachment doesn’t mean you don’t let the experience penetrate you. On the contrary, you let it penetrate you fully. That’s how you let it go†. (pg. 103) I think Morrie is saying that you should feel one emotion for a sho rt period of time then let it go so you can experience another one. The first lesson to appreciate everyday in every way relates to the world. I think it relates to the world because like Morrie said, â€Å"We are too involved in materialistic things, and they don’t satisfy us. † (pg. 84) By concentrating on materialistic things, we don’t realize the love of our family and the world around us. I think the lesson â€Å"detachment† also relates to our world. Everyday we see and hear people talking about something that happened a long time ago, and they don’t experience another emotion because they are stuck on that one. Tuesdays with Morrie Novel Analysis 3) He lived in the late 1970s. â€Å"It is the late spring of 1979†¦Ã¢â‚¬  (pg. 3) Morrie is a sociology professor at Brandeis University. â€Å"†¦the senior class of Brandeis University†¦my favorite professor†¦Ã¢â‚¬  (pg. 3) Morrie has a wife named Charlotte, and two sons named rob and Jon. â€Å"Morrie with his wife Charlotte; Morrie with his two sons rob†¦ and Jon. † (pg. 91) Mitch is about fifty one years old and lived in the 1990s. He is a sports journalist. â€Å"I earned a master’s degree in journalism and took the first job offered, as a sports writer. ’ (pg. 16) He has an older sister and a younger brother. â€Å"You have an older sister too right? † (pg. 94), â€Å"I do indeed have a younger brother†¦two-years-younger brother. † (pg. 95) Morrie’s fortune changed when he was diagnosed with ALS. â€Å"Morrie had amyotrophic lateral sclerosis (ALS)†¦Ã¢â‚¬  (pg. 7). ALS caused Morrie to â€Å"have trouble walking† (pg. ), and it caused him not to do a lot of other things like use the bathroom by himself. â€Å"Connie would wheel him to the toilet, then lift him from the chair and support him as he urinated into the beaker. † (pg. 49) His moral character also changed because he said, â€Å"Now that I’m suffering, I feel closer to people who suffer than I ever did before. † (pg. 50) Mitch’s fortune changes when the newspaper he works for goes on strike, â€Å"†¦the unions at my newspaper had gone on strike. † (pg. 44) His moral character also changes because Morrie â€Å"finally made him cry†. pg. 186). Mitch’s knowledge changes because he learns that â€Å"offering others what you have to give† will give you satisfaction. (pg. 126). He also learns how to find a meaningful life by â€Å"devoting yourself to loving others, devoting yourself to your community around you, and devoting yourself to something that gives you purpose and meaning. (pg. 127) I think that Morrie is a round character because we see different sides of him. We see a very emotional side like on page 185 when it says, â€Å"His eyes ot small, and then he cried†¦Ã¢â‚¬  we also see a carefree side like on page 5 when it says, â€Å"He would close his eyes and with a blissful smile begin to move to his own sense of rhythm. † I also think he is a static character because his personality, morals, or feelings didn’t change. I think Mitch is also a round character because we see different sides of him. We see a tough side on page 30 when it says, â€Å"I wear old gray sweatshirts and box in the local gym and walk around with an unlit cigarette in my mouth†¦Ã¢â‚¬  We see an emotional side on page 186 when Morrie finally makes him cry. I think Mitch is a dynamic character because in the beginning of the story Mitch is more concentrated on his work. â€Å"In a few years, I was not only penning columns. I was writing sports books, doing radio shows, and appearing regularly on TV†¦Ã¢â‚¬  (pg. 16) Then in the middle of the story he didn’t concentrate on work because he went to visit Morrie every Tuesday. I think the most important lesson Morrie taught me was to appreciate everyday in every way. Morrie said, â€Å"The loving relationships we have, the universe around us, we take these things for granted. (pg. 84) After reading this book I truly do realize that I take things for granted. I also think â€Å"detachment† really helped me. Morrie said, â€Å"Detachment doesn’t mean you don’t let the experience penetrate you. On the contrary, you let it penetrate you fully. That’s how you let it go†. (pg. 103) I think Morrie is saying that you should feel one emotion for a sho rt period of time then let it go so you can experience another one. The first lesson to appreciate everyday in every way relates to the world. I think it relates to the world because like Morrie said, â€Å"We are too involved in materialistic things, and they don’t satisfy us. † (pg. 84) By concentrating on materialistic things, we don’t realize the love of our family and the world around us. I think the lesson â€Å"detachment† also relates to our world. Everyday we see and hear people talking about something that happened a long time ago, and they don’t experience another emotion because they are stuck on that one.

Portfolio risk management Essay Example | Topics and Well Written Essays - 2500 words

Portfolio risk management - Essay Example tfolio analysis studies the performance of different portfolios under different circumstances (Reilly & Brown 2011).Portfolios can be grouped according to industries, countries or sector. Each group consists of sub-unit. For example, the financial sector can be made up of several banks or the Airline industry can be made up of several airline companies. The analysis of each portfolio helps an investor in making a decision when investing. Most likely, a rational investor will choose the best portfolio and screen out the ones that are not essential based on objective criteria. A good portfolio is characterized by high returns on investment (Reilly & Brown 2011). Portfolio analysis requires subjective judgment as it is not easy to segment different industries. Portfolio analysis is a process as different financial instruments have to be evaluated one by one. The process is time consuming and involves a lot of effort. In spite of these odds, Markowitz the fonder of modern portfolio analy sis has simplified the process by suggesting use of expected return and variance (Brigham & Houston 2009). In this report, we will discuss four steps of constructing a portfolio. Q 1.a Construction of a portfolio The portfolio we are to construct consists of IBM and Shell Gas shares using weekly data from 2007 to 2012. A good portfolio is characterized by high returns and moderate risk. It is also well diversified just like in our case where we have IBM and Shell Gas shares. The first step in constructing a portfolio is an assessment of your expectations and attitude towards risk. Basically, there are two types of investors, the aggressive investor and the conservative investor. An aggressive investor is willing to take more risks by devoting larger portions to equity and less to bond and other fixed income securities. On the contrary, the conservative investor takes less risk as his main goal is to protect the value. On the other hand, an aggressive investor aims at maximizing retu rns by accepting more risk. A moderately good portfolio is one which satisfies the tolerance of average risks, attracts all those people who are willing to take in more risks in their portfolios in order to help them in the achievement of a balance of capital growth and income. Therefore, as an investor you should be in a position of knowing the category where you suit. The second step is choosing the portfolio. In our case, we consider the individual shares that have high returns and have the outperformed the FTSE 250 mid-cap index (FTMC). The portfolio will have 21 shares. Below is the portfolio f our choice: After choosing the portfolio, the next step is to identify, risk and return. In identifying risk and return, we use mean-variance analysis which was derived by Markowitz in 1952. Markowitz (2000) suggests that a portfolio with the lowest level of risk is to be

Judaism is, for Levinas, a religion for adults. What does he mean buy Essay

Judaism is, for Levinas, a religion for adults. What does he mean buy this - Essay Example Theodicy implies a vindication of the divine in spite of the manifestation and existence of wickedness; this concept of suffering has troubled many because they believe that it is a contradiction to be a good God and still let one’s creation suffer. Levinas explains that atheism would be the most obvious reaction to such a phenomenon, but this would be taking a simplistic path in understanding the matter (145). Persons who hold such a view may come to this resolution because they had a perception of God that is also simplistic; that is, of a creator who treats men like children. This God gives prizes to those who have been good and then punishes them for failing to play by the rules; in other words, he regards the human race as one with an infantile state of mind (Katz and Trout 144). However, if one were to conceive of God as a being that is more complex than the above assumption, then it is likely that one will be better able to understand the notion of suffering. Levinas adds that the God who is found in the Torah is one who hides his face in order to allow man to rely on his conscience in order to find him (145). He requires a responsible subject who would not need to depend on certain physical aids or manifestations in order to get to this level; this means, he would have to be mature. Levinas goes on to affirm that theodicy is actually not a fact but is really a product of mythic thinking that has been perpetuated over the years. When understanding such a monstrous act like the Holocaust, where 6 million Jews were killed, this scholar believes that people have to take responsibility for human behaviour. Trying to rely on theodicy to explain away these atrocious acts it to deflect human responsibility to a divine being, and this is what children would do (Katz and Trout 145). The God of the Torah is a God of adults because he requires man to

Colonization of african americans Essay Example | Topics and Well Written Essays - 750 words

Colonization of african americans - Essay Example I used to have an older brother, but we got separated when he got sold off to a different family. I hope he is well, wherever he is. I haven't seen him in 10 years. When we first came here to Georgia, we were scared because we didn't know what kind of family we'll serve, or if we will yet again be separated. As my Ma and Pa anticipated our expulsion from the South Carolina rice plantation we called home since before I was born (they were just too many of us slaves than they can handle), I can hear them praying for a better owner—people who will not whip us when we make mistakes or if they think we're being lazy. I remember playing inside the trunk of a big old tree far from the rice plantation, but being careful so that no white people can see me. The clay house we share with another family is hot in the summer, and being a young boy, I want to go out and play. But if they see me, there'd be big trouble for sure. So I found myself a hiding place in a tree. Ma always told me ac tions have consequences, and if I'm not careful, then she couldn't shield me from the eyes of our owner. Consequences means whipping and no food rations—especially if we caught our master's attention when he was drunk. That's asking for big trouble. The fusion of bad disposition alcohol would mean at least 10 whips. So, Ma and Pa were both happy and scared we were about to be resold or "imported" as they call it—happy to be leaving our cruel master, but scared to be sold to a more cruel owner. While we were being auctioned off in cuffs, after my brother was bought by a different man, the three of us gave an inaudible sigh of relief when we were purchased by one man. He looks stern but fair, although we dared not look into his eyes, afraid he might think we're insolent and get off on a bad start. It turns out he was a general who just invested in a small cotton plantation and only needs more than a dozen hands to work the fields for starters. Our new home in Georgia was more livable. We were given our own hut and it even had a small fireplace! Although we miss our fellow slaves we left behind or were sold to others—especially my brother—life was starting to look good. Our assimilation into the Georgia life was smooth. The general bought two other families—parents who can still work hard who had sons who were young, but ready to work. Unlike in our old life, we were given enough food to eat and allowed us not to work on Sundays, except during harvest season when we had to work 16 to 18 hours a day. Missus and master treated us like people, where before we were treated almost like animals. As long as we work hard and are honest, we didn't go hungry. They gave us a fair share for our daily cotton weight. Although we were used to having to work with a lot of slaves, here, we became like a close-knit family because slave owners in Georgia are not as many. Most of the people disapproved slavery, and maybe this is why our masters wer e good to us. Because there were so few of us in our community, segregation—although not a law—was apparent. It was like a hidden code. When you see whites on the road, you automatically give way. It's my birthday today, and we celebrate it by making a bonfire and roasting the extra meat given to me for this special day. Before we came here, we never got to celebrate birthdays. Anyway, because it's my birthday, I wonder where I really came from and

Technical report on hydrogen experiment Assignment Essay

Technical report on hydrogen experiment Assignment - Essay Example figures Figure 1 preparation of the electrolyzer module 6 Figure 2 Filling the syringe with distilled water 7 Figure 3 Placing inner containers 7 Figure 4 Connecting tubes 8 Figure 5 Using fuel cells and solar panel 8 Figure 6 Inserting batteries 10 Figure 7 Assembling electrical fans 10 Figure 8 Connecting the motor to reversible fuel cell 11 Figure 9 Using solar panel 11 Introduction Hydrogen derived from renewable sources such as wind and solar is clean, self-sufficient and a permanent energy solution for sustainable development. A kilogram of hydrogen is roughly equivalent to a gallon of gasoline in energy content. (Johanna L, 2007) This makes hydrogen a technology of the future in reducing reliance on imported fuel and greenhouse gas emissions. Hydrogen could be produced from fossil fuels using steam reforming, which emits CO2 and expensive ways such as catalytic cracking without CO2 emissions. This pathway is more cost-effective. Water electrolysis is an efficient and expensive way because of its high electricity requirement. For instance, a study (Khan M.J., Iqbal M.T., 2005) stated that assuming an electricity cost of $0.05/kwh, nearly nowadays price of wind produced electricity; hydrogen made from water electrolysis costs more than $2.84/kg based on higher heating value. Hydrogen produced from photovoltaic is also expensive because of high PV electricity cost.( Sherif S.A. et al, 2005) Wind produced electricity, on the other hand, is becoming more competitive nowadays. Therefore, it can produce less expensive hydrogen. Electrolysis: The general principle in electrolysis is that water is supplied to an electrochemical cell, and hydrogen evolves at the anode while oxygen evolves at the cathode when the supplied energy is greater than the zero current cell potential. Alkaline electrolysis is commercially available technology. It takes place at a temperature around 800C and pressure of 1-30bar.( US department of energy, 2010) Fuel cells: Fuel cells are ele ctrochemical devices that convert chemical energy in fuel to electrical energy with high efficiency and low environmental impact. Because combustion is avoided, they produce power with minimum pollution. They contain electrodes anode and cathode separated by an electrolyte. Fuels such as hydrogen or hydrogen rich synthesis gas, are supplied to the anodes while the oxidant is fed to the cathodes. The most common oxidant is oxygen from air. Electrochemical reaction occurs in the electrolyte producing current while deriving external load.( Fuel cell Handbook, 2010) Materials and Methods Preparation of the Electrolyzer Module and Solar Powered Hydrogen Production 1. Insert the reversible fuel cell, terminals on top, into the slot on the base. Cut 2 x 4cm length pieces of rubber tube and insert a black pin into the end of one tube. Place the tube with the black pin into the top pin on the hydrogen side (with black terminal). Place the other tube firmly onto the top input nozzle on the ox ygen side. Figure 1 preparation of the electrolyzer module 2. Fill

Lidership Essay Example | Topics and Well Written Essays - 1750 words

Lidership - Essay Example Please note that your final product will remain on file at WGU. Domain: Graduate-Level Business Core Leadership Subdomain Subdomain 315.1 - Leadership (s0265) Competency 315.1.4: Team Development and Leadership The student understands the process of team development and leadership. Objective 315.1.4-02 Describe how groups evolve into teams. 315.1.4-04 Describe how to build trust among team members. 315.1.5-02 Describe the common management mistakes that lead to team failure. 315.1.5- 03 Describe the common problems for team members that lead to team failure. 315.1.5- 05 Select the type of team (advice, production, project, action) that is appropriate for a given situation. 315.1.5- 06 Justify the selection of a particular type of team (advice, production, project, action) for a given situation. Assignment Instructions Given: Case: Jeanne Lewis at Staples Inc. (A) (Abridged) Write an essay (5-7 pages) analyzing team building and team leadership as it relates to the Jeanne Lewis case. A. There were a number of teams that evolved at Staples. 1. Identify one example of the evolution of a team at Staples 2. Describe three (3) elements that were present and necessary for the evolution of that team. B. Describe the development of trust within one of those teams by using at least three (3) guidelines for building trust among team members. C. There are a number of management mistakes that can lead to team failure in an organization. 1. Identify at least four (4) common management mistakes that lead to team to failure; and, 2. Explain whether any of those mistakes occurred in Lewis's marketing team, using an example to support your explanation. D. There are a number of common... A major element that influenced the effective functioning of this core team can be designated under Bartolomà ©'s number one guideline for building and maintaining trust--communication. According to Professor Bartolomà ©, one needs to "Keep team members and subordinates informed by explaining policies and decisions and providing accurate feedback". Looking at Staples background, one sees that according to Suesse, "they [the founder's core team] hashed out virtually every decision together, early on developing the discipline to back up their intuitions with hard data". Other important guidelines for building trust among team members include support, respect, fairness, predictability and competence. One can see respect in the shared decision-making authority within this team, fairness in their willingness to "hash out" important decisions as equals, instead of a timeframe getting imposed from above, and competence in each member's consummate professionalism. One mistake that Lewis ma de with her transition to the marketing merger team fall under category number two: failed to build group cohesion and trust. This is often a problem when a manager makes a lateral transition into a new department.

Reading Assignment Example | Topics and Well Written Essays - 250 words - 4

Reading - Assignment Example The creative solution on how to defeat cramming is to review lessons constantly even just for few minutes. But reviewing itself can sometimes be boring or taxing so the creative solution to this consistent to Higgins approach is to make it fun to defeat boredom. How can we make studying fun? We have actually made it several times by doing a group study that is like a picnic. Studying suddenly transforms to a small picnic, hanging out or chill event where we learn while we are having fun. Yes the pranks and the jokes and the crazy stories are still there but the important thing is that everybody reviewed their lesson without even knowing it. The Creative Problem Solving (CPS) here is to make studying fun so that we are engaged in it early and thus avoid the problem. The convergent thinking or the single correct solution here in the problem is to review long before the exam. The divergent thinking is creative approach to the solution which is to make it fun by doing group studies where we could also hang out while

Future of Modernization Essay Example | Topics and Well Written Essays - 1500 words

Future of Modernization - Essay Example The citizens would also enjoy higher standards of living. This paper will look into various aspects of modernization in the United States and also around the world. The paper will also look into the consequences of modernization and various theorists of the idea of modernization. There are four different concepts that modernization manifests itself in the United States. One of the concepts is that is the diversification that the society is undergoing through. Another concept is that people are making more abundant choices while at the same time the concept of smaller communities is also a manifestation of modernization in the United States. The other concept is that the aging people are becoming more and more future conscious that it was witnessed a number of years ago. Manifestation of the modernization in the United States can be said to be following the theories of Emile Durkheim. Durkheim concentrated on how the society should uphold their virtues and integrity in the modern times and how the societies would share such things as religion and ethnicity in a very constrained manner (Wagner, 2008). To this effect, Durkheim with the assistance of Herbert Spencer sought to come up with a scientific approach to study the society and various phenomena that would be associated with the society. This was done in reference to the function the individuals played in quotidian maintenance to explain different elements of the society existence and hence Durkheim is seen by many as the precursor of functionalism. Thus he was involved in the study commonly referred to as Social Facts. Social Facts is the study that tries to prove that there is the existence of a phenomenon which is not bound by the actions of the individuals and how the individuals that make up a society adapt to some changes but which is precipitated by a social fact. To this effect, some of the most subjective and individualistic phenomena that include such things as suicide would be described by Durkheim as an example of social facts which are objective (Macionis, 2006). Hence, modernization in the United States is manifested by the society adapting some new social changes which can be attributed to the theory of Social Fact a theory that is credit to Emile Durkheim. This means that the society in America is experiencing these changes due to modernization and this means that the reality of modernization in America has manifested itself due to the changes that the society is undergoing through and how these changes are positively and negatively affecting the society (Tyrer, 2008). Modernization development in the United States Right now, the United States is undergoing through many changes that can be said to be political, social, economical and cultural. This means that the United States will have many more developments as far as modernization is concerned. Politically, the society is looking for more freedoms and rights and the government is forced to comply with the requirements of the citizens. This means that modernization in the political outlook of the United States have more room for development. It is important to note that the country is the most democratic country in the world but the people feel that they need to

An Investigation of the Gender Gap of Boys Underachieving in Literacy Essay Example for Free

An Investigation of the Gender Gap of Boys Underachieving in Literacy Essay The purpose of this study was to investigate the gender gap, especially of boys’ underachievement in literacy, and discover if there are particular strategies that schools can implement in order to raise the attainment levels of boys. As the issue of the gender gap is so wide I selected literature to review which covered a wide range of theorists and existing studies. Specifically I wanted to identify some of the suggested causes for the underachievement of boys and any already proposed effective strategies which I could execute in my own study. The data I collected from the study was both qualitative and quantitative in order to give a more valid outcome; these included an open-ended, semi-structured interview, which I felt would enable the respondent to provide a wider range of ideas; questionnaires, observation and existing data. The results showed that there is in fact a close correlation between boys who do not read for pleasure/enjoyment and boys who underachieve. However it also showed that there are specific strategies that can be applied to meet the learning needs of boys in order to raise their achievements. However due to the scale of the topic this small study cannot provide a definitive outcome for the causes and solutions of boys literacy, it has merely suggested some probable reasons for and some possible remedies. HYPOTHESIS During the past twenty years there have been rising concerns over the achievement gap between boys and girls, particularly with boys underachieving in literacy. The aim of this investigation is to identify if reading is the main factor for the achievements of boys in literacy, or if there are other strategies that can be implemented to raise the attainment levels of boys and therefore close the gap. To complete this study, I will undertake the investigation at an all boys’ school (for ethical reasons of anonymity, the school will be known as School A) located in a leafy suburban area in the North West of England. School A is a high achieving school compared to other mixed and same sex schools in the Local Area. The current Head of English (HoD) is driven, ambitious and highly motivated towards pupils’ achieving the best results possible. During the research I expect outcomes to show that there is a correlation between high achieving boys and enjoyment of reading for pleasure. I also expect to find that particular classroom strategies can effectively impact the attainment levels of boys, particularly in those who do not read for pleasure. LITERATURE REVIEW In 1993 Ofsted reported that boys do not perform as well in English as girls (cited in Bearne, 2004), and more recently the National Assessment of Education Progress (2009) has found that ‘female students consistently score higher than boys on average in both reading and writing’ (Watson et al., 2010: 356). However this concept is not a new one; researchers for the Gender and Education Association noted that in the 1950s and 1960s the pass rate for the eleven plus examinations, taken by almost all eleven year olds at this time, were different for boys and girls; Epstein et al. (1998 cited in Watson et al., 2010) claims that the pass rate for boys was lower than girls because girls supposedly matured earlier than boys. Gareth Malone, writing for the Telegraph in September 2010 stated that nationally ‘boys lag behind girls in reading by 6 percentage points and in writing by 15 percentage points’ (Malone, 2010). Despite this, Gorard (2001, cited in Malacova, 20 07) believes that, the panic about the gender achievement gap is exaggerated; he blames the concept on lack of sufficient data, which until recently had not been available, and believes that a lot of the assumptions regarding boys underachievement is based on statistical misinterpretation. Gorard (2001, cited in Malacova, 2007) conducted the first UK analysis of national data set over a six year period; he found that the gap only appeared amongst high-ability pupils and that the number of boys and girls failing exams was similar. His conclusions found that the gender gap was, if anything, decreasing. Regardless of Gorard’s (2001) analysis, there are many who still feel that the performance gap is a concern. In 1993 the Ofsted report offered some insight into differing perspectives and explanations for boys’ underachievement, including the lack of male literacy role models, classroom strategies, curriculum literacy content, perceptions of behaviour, social class and ethnicity (cited in Bearne, 2004). Solsken (1995, cited in Bearne, 2004) added to this list claiming that literacy is associated more with females and femininity and believes that this possibly has a negative effect on boys and their attitudes towards reading. Solken’s (1995) argument links very closely with Watson et al.(2007) who proposed that popular explanations often focus on boys’ ‘biological make-up’. They claim that evidence shows that ‘hegemonic masculinity is central to the struggles boys face as literacy learners’ (Watson et al. 2010: 357). Rowan et al (2002) also believes that ‘boys are biologically different to girls and that this biologically difference is the cause of behavioural differences’ (Rowan et al. 2002, cited in Watson et al. 2010:357). He believes that due to these biological differences, boys and girls are defined by inherent masculinity and femininity characteristics and in order for educational success this must be acknowledged and accommodated for. This is an important assertion to consider for this particular case study; due to the domination of boys in School A it is important to understand how masculine characteristics are catered for in an all boysâ€⠄¢ school. One of the suggestions to improve literacy for boys is to make education more ‘boy friendly’ by including more reading materials that boys enjoy, such as action and graphic novels, which will motivate boys to read. Hornton (2005) believes that adolescent boys could rediscover the magic of books by using texts that appeal to their interests. Young and Brozo (2000, cited in Brozo, 2010) deem that encouraging boys and actively helping them to find access points into literacy and reading should be made priority by teachers. During this particular study the idea and notion of actively promoting literacy through any route possible is addressed by School A’s English department head in the interview, and shows that it is essential for boys be aware that reading does not have to be confined to specific genres and authors. Furthermore Cole Hall (2001, cited in Taylor, 2004) claim that boys read less fiction than girls, preferring to opt for texts that contain more facts and less narrative, such as magazines or texts that are analytical. Similarly Millard (1997) claims that boys tend to opt for genres such as action and science fiction whilst reading as little as possible in school that they think they can get away with. Due to these preferences, boys’ are at a disadvantage in academic literacy as their motivation towards school texts and curriculum texts is affected. Probst (2003, cited in Taylor, 2004) believes that if boys are to engage with reading, the texts that they are asked to study need to be significant to them. In other words it seems that in current literacy education, there is not enough stimulating material which addresses the needs or interests of boys. Millard (1997) relates the findings of boys’ apparent lack of interest in reading as significant to low achievement in English, while Holland (1998) attributes lesson style and strategies as some of the other causes for underachievement. Both of these arguments are valid for this particular study and will be investigated further by studying the reading habits and the predicted GCSE grades of boys in a high set and a low set, and by exploring particular teaching styles implemented in School A. Holland’s study (1998) showed that boys can spend any amount of the day, stemming from 25 percent up to 75 percent, passively listening to the teacher rather than actively engaging. When trying to reason why boys had a tendency for this she found that the boys preferred lessons which were practical, had a range of different activities (such as personal research, groups work or discussions), or involved competition. If boys are passive during English lessons they are not learning the essential literacy skills required to help them achieve results. Taking this into consideration it seems then that pedagogical practice needs to be addressed. Taylor (2004) suggests that teachers contemplating their own practice could reflect on whether they are meeting the individual learning needs for each boy through learning pace and style, and innovative strategies which build on boys’ existing interests to maximise their potential, development and emotional needs. Pollack (1998, cited in Taylor, 2004) agrees with this theory suggesting that numerous opportunities should be presented to boys for hands on, interactive learning. METHODOLOGY My approach to research was identified by the nature and context of the question. After considering the purpose and desired outcomes for the investigation I decided that the research would take the form of a case study, incorporating a combination of both qualitative and quantitative data to ensure validity and reliability; ‘qualitative methods may supplement the findings by identifying gaps from the quantitative study’ (Bryman Bell 2007:650). The decision was made to collect evidence using a multi-method approach including interviews, questionnaires and analysis of existing recorded data. According to Gillham (2000) ‘different methods have different strengths and different weaknesses’ (Gillham 2002:13), and so ‘triangulation to strengthen your findings’ (Greetham 2009:184) was implemented to strengthen the validity of the study. To form part of the qualitative data I arranged an interview with the head of the English department. The purpose of the interview was to gain a deeper understanding of the context of the department and of the strategies which have raised attainment and achievement within the subject. Jones (1985) claims that ‘In order to understand other persons’ constructions of reality, we would do well to ask them and to ask them in such a way that they can tell us in their terms (rather than those imposed rigidly and a priori by ourselves)’ (Jones cited in Punch 2009:144). Taking this into consideration I decided that the interview should be open-ended and semi-structured for flexibility; Cohen et al. (2007) claim that semi-structured interviews gather ‘more intangible aspects of the school’s culture, e.g. values, assumptions, beliefs, wishes, problems.’ (Cohen et al., 2007:97). A semi-structured interview then would enable me to gather more in-depth information regarding the Head of Department’s ideas and beliefs surrounding School A’s succe sses. To understand boys and literacy, and whether reading habits have an impact on GCSE results, a questionnaire was compiled to collect primary data and distributed to a top set and a bottom set year 11 English class. According to Gillham (2002), questionnaires are not typical of case study research; however they can be used to obtain simple, factual information. For the purpose of this part of the study I felt that a questionnaire was a practicable way to acquire important facts regarding the reading habits of a group of high ability boys and a group of low ability boys. These would then be compared to analyse and identify any correlation between reading habits and English predicted exam results using samples from the furthest range on the ability spectrum. During the research I also decided to collect additional data through participant observation. The aim of this was to gain an ontological perspective of the pupils enabling me to observe interaction, relationship and actions performe d by pupils. I felt that this would help me to make sense of the data collected in both the interview and the questionnaire. In regards to validity and obtaining accurate results from my observations, I first needed to develop a relationship with the classes I intended to observe to ensure that my presence was unobtrusive and did not affect their normal behaviours and create a bias observation. To achieve this I regularly participated in classroom observation at the back of the room in attempt to become a participant in the classroom context. Trochim (2001) claims that ‘the researcher needs to become accepted as a natural part of the culture to ensure that the observations are of the natural phenomenon’ (Trochim, 2001: 161), therefore I attended certain classes as an observer over a series of months to ensure that the pupils were comfortable with my presence and so acted within normal behaviours. The final set of data collected was secondary data compiled of the school’s GCSE results since the Head of English was appointed, including results form 2008, 2009 and 2010. The data also provided average GCSE results for the rest of the Local Authority enabling me to compare the school’s results against average achievements in the LA. The purpose of this data was to compare the information obtained from the interview with the head of department, about strategies implemented to raise attainment, against the GCSE results. ANALYSIS The Interview: The aim of the interview with the English Head of Department (HoD) was to discover if GCSE results had improved since being appointed Head of English at School A, and if so to discuss the strategies and provisions which had been implemented to raise the achievement levels in literacy at School A. The current HoD had taken over the English department in April 2008; the English GCSE in the Local Authority that year was 64.5 percent of students achieving A*- C; School A achieved 58 percent, more than 6 percent less than the LA average and 2.1 percent less than the national average. However in 2009 the following year, after just one year as the department head, School A had improved their results by 20.7 percent. The LA’s average results in English in 2009 was 66.7 percent achieving A*-C, the national average was 62.7 percent, while School A’s results were up to 78.7 percent. In 2010 the GCSE results at school A dipped slightly to 76.8 percent due to the school’s wea ker cohort for that particular year; however the results were still higher than the Local Authority’s average of 70.4 percent and the national average of 64.8 percent. Due to the weaker cohort that year the HoD considered this result to be an excellent achievement. Strategies implemented in the department were a crucial factor for the improved attainment levels across the Key Stages at School A. In September 2009 a centralised, uniformed English curriculum was introduced to Key Stage 3 aiming to â€Å"drip-feed† appropriate skills and assessments to pupils that prepares them with relevant GCSE experience before they enter Key Stage 4. Pupils in Key Stage 3 are assessed each half term (part of Assessing Pupils’ Progress) and are assessed in relatively the same way as the new Specification GCSE, ensuring the identification of weakness areas for improvement. Despite the success of raised attainment across the Key Stages, these strategies cannot be considered as part of School A’s GCSE progression; the first year group from Key Stage 3 in September 2009 are due to sit their GCSE exams in the summer of 2011, only then will it be pos sible to determine if this strategy attributes to the departments achievements. There are, however, specific strategies in place which can be measured against the department’s raised achievement results. These are those that have already been applied at Key Stage 4, including a uniformed teaching curriculum incorporating, for example, all of the same poets and clusters in the GCSE specification; personalised revision packages which identify individual’s weakest areas combined with personalised intervention to improve these weaker areas and ensure pupils’ achieve highest marks possible; ceased timetables for year 11 pupils close to exams and new timetables put in place to prioritise learning for the nearest exam. The Head of Department believes that all of these are essential contributing factors for the departments improved results. Other elements, which the Head of English believes help pupils at School A to maximise their achievements, are more innovative and practical activities for example the employment of production companies to perfor m GCSE texts such as Of Mice and Men; and school trips to events such as Poetry Live, an event hosted by poets from the GCSE anthology. Pollack (1998) argues that ‘we need to develop and implement innovative teaching approaches this may mean providing numerous opportunities for hands-on as well as interactive teaching’ (cited in Taylor, 2004:294). The English Head felt that these opportunities expanded the boys learning and understanding by developing them outside of the classroom context. Bearne (2003) claims that ‘There is a tendency for boys to draw on visual sources for their writing’ (Bearne, 2003:3) and so visual performances such as Of Mice and Men help the pupils to draw on their experiences through vision and memory. In addition to those already mentioned, the Head of Department also felt that the ethos created in the department combined with class room methods were an essential factor in the development and attainment of the pupils at School A. The department has a strong focus on literacy which is promoted broadly amongst all pupils, including reading groups and book clubs, as wel l as spelling and reading lessons delivered to pupils on a weekly basis. Pupils are encouraged to read regularly, regardless of material, to ensure positive enjoyment of reading. In contrast, Brozo (2002, cited in Taylor, 2004) felt that teachers were more likely to choose texts with narratives that did not appeal to boys. The HoD however regularly promoted the reading of any materials, whether it was comics, newspapers, information books or autobiographies; she felt that if pupils were to enjoy reading and increase their confidence with literacy, they should feel that any text that they enjoy to be suitably considered. In terms of classroom strategies the department endorses well paced positive learning in an environment of mutual respect between pupil and teacher; clear personal targets which are monitored explicitly; strong Assessment for Learning to test and extend pupils’ understanding and learning through challenge, feedback and routes to improve; short, sharp activities; a strong focus on reading; regular homework; and clear learning objectives which are reviewed during the plenary to ensure all pupils know the direction of learning. These techniques are consistent to that of a survey which was conducted of fourteen schools in 1997. The survey was performed by former HMI Graham Frater; he concluded that the most successful schools in regards to boys and literacy were the ones that paid a lot of focus towards teaching methods. Particular methods that he felt where important for success included: prompt starts to lessons with clear learning objectives shared; a challenging pace sustained throughout the lesson; lesson endings which reflected on the learning objectives and achievements within the lesson; a variety of activities; high expectations of the pupils combined with a non-confrontational attitude towards discipline; and effective modelling. It seems quite clear then that pupils’ achievements at School A can be attributed to the methods and strategies implemented consistently across the department. The pupils are suitably challenged with pace and activities, they know what the aims of their lessons are and how they have achieved these aims, they regularly assess their strengths and weaknesses and so understand what they need to do in order to raise their achievement levels. On the contrary, however, it is difficult to determine whether classroom and reading strategies are the most influential factor for raising attainment in boys and literacy. From observation of quiet reading lessons I discovered that many of the high ability pupils in the top set classes within Key Stage 3 welcomed the lesson as a chance to read an engaging book; however the lower ability groups were often much more difficult to set on task. Indecision over which books to read, reluctance to read quietly, and regular disruption amongst the pupils seemed a frequent occurrence in the low ability classes. When addressing reading, the HoD spoke about the issues regarding boys and reading, specifically in respect of boys’ loss of motivation of reading in their teenage years. She believed that possible causes in lack of motivation in boys and reading was due to their increased socialisation as they grew older, the introduction of more complex reading materials in preparation for GCSE, peer pressure from others that could overshadow pupils’ personal preferences, and she also felt that a lot of teenage boys only read to obtain information and not for pleasure. Taking these factors in to consideration she claimed that it is important to understand the reasons why boys do not enjoy reading but it is more productive to motivate and encourage them to read. The HoD considers the best way to encourage reluctant readers is by getting to know individual pupils and then gauge their interest levels and preferences as a starting point. Some of the suggested strategies, she felt were particularly useful, are to provide a variety of books, both fiction and non-fiction with appropriate reading levels; to keep in touch with boys current interests and provide books that reflect them; respect reading interests of young people and don’t expect them to only enjoy books suggested by the teacher; allow pupils to self-select their own books; encourage an interest in short stories, graphic novels and magazines, working up to full-length books; and to give academic recognition and credit for books read. These ideas meet the suggestions put forth by Hornton (2005), who stated that boys’ motivation should be encouraged with texts that appeal to their interests, and Young and Brozo (2000, cited in Brozo, 2010) who find it important to aid boys to seek access points into literacy and reading. The Questionnaire: The questionnaire was distributed to a high ability top-set year 11class and a low ability bottom set year 11 class. There were 32 pupils in the high set and 13 in the low set. The aim of the questionnaire was to compare the reading habits and attitude towards reading from a range of pupils of different abilities. According to Hornton (2005) there is a correlation between individuals with low level literacy skills and those who dislike reading for pleasure, and so I predicted that an individual’s attitude toward reading would correlate with their predicted GCSE grade; the more pupils enjoy reading and feel that it is important, the higher I expected their grade to be. The predicted GCSE grades in the set one class ranged from A* C while the set five classes’ grades ranged from B – G. The questionnaires revealed that in the top set group 84.38 percent of pupils enjoyed reading and 90.63 percent felt that reading was important for reasons such as expanding vocabul ary, increasing knowledge and learning new things. There was a vast difference in comparison with the lower set where only 23.8 percent of pupils enjoyed reading and just 53.85 percent felt that reading was important. It appears then that there is indeed a correlation between literacy skills with enjoyment of reading, however other elements surveyed in the questionnaire aimed to establish whether boys and literacy could have a direct link to their parents’ relationship with reading. The survey asked pupils if their parents enjoyed reading and if they had been encouraged to read as a child. Sadowski (2010) analysed the literacy gap between working and upper class boys, he found that the gap for more affluent boys was not as large as those from working class backgrounds and attributed this to richer boys growing up with father’s who were readers. This suggests that pupils whose parents enjoy reading and encouraged them to read from a young age would achieve higher results than those whose parents either did not enjoy reading or did not encourage them. Surprisingly the results did not reflect this to an extent that one would have expected. In regards to pupils’ parents who enjoy reading, 76.92 percent of pupils in the lower ability set agreed that their parents enjoyed to read while 81.25 percent of pupils’ in the high ability group confirmed the same. Of parents who encouraged their sons to read as a child, 61.54 percent from the low ability agreed and 78.31 from the higher ability group. Despite a difference between the percentages for both groups’ parents who read and encouraged them to read when they were younger, the gap is not a remarkable one and does not qualify a distinct correlation between pupils’ ability in literacy and the relationship their own parents have with reading. The questionnaires revealed that in spite of 76.92 percent of their parents having an enjoyment of reading, only 23.08 percent of pupils in that class enjoy reading, which suggests that perhaps even if a higher percentage of parents had encouraged their son to read this would not necessarily have affected their attitude towards reading for pleasure and therefore would not affect their achievements in literacy. EVALUATION The outcomes and findings from this case study have, to some extent, complemented a lot of the existing research addressed in the literature review. For example Holland (1998) discovered that boys tend to spend a lot of time listening passively to teachers because they prefer lessons that are practical and involve a range of activities. From my observations in the classroom and confirmation from the Head of English in the interview, the boys at School A also learned best when lessons involved a series of different activities such as discussions, group work or practical tasks such as drama-based role plays. This outcome also corresponded with Malone (2010) who, in a venture to discover why boys where underperforming in literature, stated that he aimed to perform short, achievable tasks with the boys, he also suggested that giving explicit time frames focused the boys into completing their work. During the interview the HoD explained that by giving the boys at School A short time frame s to complete specific task, it kept the pace of the lessons challenging and rigorous and therefore engaged them in learning more effectively. However the problematic outcome for this particular study is that only one school has been investigated and so it is difficult to determine whether the observations, questionnaires and interview conclusions, pertaining to strategies and the improved GCSE literacy results for School A, are a true reflection of causes and solutions of underachievement. The English GCSE results were really poor at School A in 2008, just as the current Head of Department took over, and from the interview questions and answers it would seem that the department and classroom strategies implemented since then have helped to improve the pupils’ achievements. Nevertheless it is certainly impossible to verify whether these are the sole reason for improvement; one particular reason is that it was never established what mode of departmental and classroom strategies were in place before the current HoD took over from the previous. Another reason is that School A’s GCSE results prior to 2008 were not obtained for this study and so results before this year have simply been generalised based on the last available statistics. It could be assumed that the 2008 result may have been an isolated case and so accessing results prior to 2008 would have endorsed whether or not the results had improved substantially. Gorard et al (2001, cited in Malacova, 2007) believes that the gender gap is exaggerated and to some extent it is possible from this research to argue in favour of this. Over the past three years School A has achieved excellent GCSE results, especially in English and particularly in comparison to local and national results. School A is an all boys’ school and so advocates that boys in this particular context are not underachieving as are others in other contexts. This suggests that if School A can produce results above the average mark, particularly in a year when the cohort was extremely weak, i t should be possible for other schools to raise the achievement levels of literacy in boys just the same. However it would be possible to prove or disprove Gorard’s theory of the gender gap, if the strategies implemented at School A could be put into action in a school of a different context. If successful this would validate the outcomes from this case study, it would also give rise to further research based on boys and literacy and whether these strategies could be used in a co-educational school or if they are too specific to the needs of boys’ learning and therefore not beneficial to girls’ learning. I felt that the findings made regarding boys reading habits and their attainment levels were significant. From the sample of questionnaires taken there seemed to be a direct correlation between predicted grades A*-C and boys who enjoyed reading or felt that it was important; 100 percent of the boys in the high ability group were predicted a grade A*-C (although three pupils were unaware what their predicted grade is, the school setting procedures ensured that only bo ys predicted A*-C would be allocated to set one). Of this a high 90.63 percent felt that reading was important and 84.38 percent enjoyed reading for pleasure. There were however exceptions to this; one pupil in the higher ability group stated that he did not think reading was important because ‘I do not read and I am predicted A’s at GCSE’. Another boy from the high ability group, who has been predicted a C grade, also felt that reading was not important because it ‘doesn’t do anything’, however this boy also claimed that he enjoyed reading and so regardless of whether he felt that it was important or not, reading is part of his literacy development. Despite the boys who did not feel that reading was important, the majority of the boys in the class felt that reading was important; this suggests that the highest achieving literacy pupils in School A were ones that enjoyed reading and so this would also be an essential contributing factor to the success of their achievements. It is difficult here to state whether the reasons for the boys’ enjoyment of reading is owing to the strategies for motivating reading encouraged by the HoD and so part of the questions on the questionnaire should have been more open ended to allow pupils to explain perhaps what motivates their enjoyment of reading. The lower ability results from the questionnaire were also significant for showing a correlation between literacy achievements and reading habits. Only 23.08 percent read for pleasure and only half the class felt that reading was important, this suggests that the reason for low ability achievers is possibly due to the lack of enjoyment in reading. Once again the problematic issue with these results is that the number of pupils in the low ability class was considerably less than the number of pupils in the high ability class. To gain a perhaps more informed result from the questionnaires a larger sample from low ability classes should have been obtained to match the number of pupils in the high ability class. This may or may not have produced different results, but, whatever the outcome, they certainly would have been more valid. One final evaluation to consider, in regards to the low ability group, is how effective the suggested motivation strategies have been in engaging boys in reading. With only 23.08 percent of pupils in this class finding an enjoyment in reading it would seem that the strategies have been ineffective in increasing motivation and achievement in these particular pupils. What would have been an interesting study if had been possible, would be to assess pupils attitude towards reading and predicted grades before the HoD had taken over and implemented strategies, and then to compare them to the results that have been found during in this study. CONCLUSION Returning to the hypothesis, my aim was to find out if reading for pleasure impacted on boys’ attainment levels; whether the achievement of boys who did not enjoy reading was affected. I also wanted to identify successful teaching strategies and whether these would raise the levels of those boys who again did not enjoy reading. The study has shown that there is a correlation between boys reading habits and their achievement levels’; it has also identified some strategies that can be used to raise their attainment levels. However from this study alone it is difficult to say if those strategies implemented in an all boys’ classroom would be equally effective in a mixed sex classroom. Due to this it would be interesting to expand the research on a larger scale to investigate the impact of those strategies, which are effective for boys learning, on a) girls learning in a mixed classroom and b) boys learning in a mixed classroom. The gender gap issue is such a broad topic that research can be extended to a greater degree of investigation. For example I have covered some possible causes of boys’ underachievement in this study; however on a wider scale other possible causes could be explored such as masculinity and identity, class or ethnicity. I feel that the most important route to take continuing from this particular investigation would be a focus on masculinity stereotypes in the single sex classroom and the mixed classroom. Holland (1998) states that: Boys do appear to be locked inside a stereotype which appears to make them succumb to peer pressure and which inevitably impacts on their attitude to work’ (Holland, 1998: 177). Therefore researching ways that can reduce or even prevent these macho stereotypes in the classroom would be an important factor for understanding boys and underachievement. Despite that there is no definitive outcome from this study; I feel that it is something that I will take forward into my professional development; whether it is through consideration of differentiation in boys learning style in a mixed classroom, or through a focus of raising attainment levels in my classes. Whichever way I incorporate consideration of gender into my teaching, it is certainly something that needs to be addressed. Gorard (2001) believes that concern over the gender gap is exaggerated; however it is clear through GCSE tables that boys tend to achieve lower than girls. In relation to this then, it is important for both newly qualified teachers and established teachers to consistently strive to meet the learning needs of their pupils. It seems the most important way is by adapting their style and approach to learning styles to ensure that both girls and boys have equal opportunities to work and achieve their highest potential. BIBLIOGRAPHY BOOKS Bleach, K. (1998). Raising Boys Achievement in Schools. Staffordshire: Trentham Books Ltd. Brozo, W. G. (2002). To Be A Boy, To Be A Reader: Engaging Teen and Preteen Boys In Active Literacy. US: International Reading Association. Bryman, A. and Bell, E. (2007) Business Research Methods 2nd Ed. 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