Kofi Annan Leadership Traits

The Five Virtues of Kofi Annan: Case Study Having sat at the helm of the United Nations for two terms, Kofi Annan exhibited astute and strong leadership skills. Admiration for his ability to bring different warring parties together was unending. He always wished for a world where sufferance of innocent global citizens would end. Among the virtues he stand out to have entrenched in his leadership is dignity.Advertising We will write a custom case study sample on Kofi Annan Leadership Traits specifically for you for only $16.05 $11/page Learn More He always believed that all people regardless of their social-economic status, nationality, race and other lines of segregation would have a dignified life. Indeed, the life that Annan envisaged for all people was free of atrocities, poverty and pandemics such as Aids. Ciulla (2003) postulates that he always saw both sides of the coin in that he could negotiate with perceived criminals such as Saddam Hussein for the sake of innocent civilians who in many instances were caught in the crossfire. To him, dignity was a major virtue of leadership. Second, throughout his mission as the Secretary General to the UN, he never fell short of confidence in all his actions and attitude. Despite taking positions that put him at loggerheads with major world leaders like Madeleine Albright, Annan had confidence that his cause of action was the best in delivering peace to the world. Third, Annan held courage as an important virtue that all leaders should learn. He never feared to enhance access to medical care, food and other humanitarian assistance regardless of the risks and dangers this action predisposed him to. Fourth, Annan values compassion, which is a major aspect of transformative and supportive leadership. He never shied away from the poor and the meek. Indeed, Ciulla (2003) pinpoints an instance where he randomly got out of his motorcade and spent over an hour with a refugee who had fled war in I raq. Finally, Annan always preached faith. He believed that all leaders should have faith in their actions whenever their actions would end up bringing peace to the world. Standpoints Held by Different Critical Thinkers Ruth Benedict The major concept of her works revolves around explaining anthropology and the way it affects normalcy of different people especially those holding leadership positions in organizations and groups. She articulates that leadership is nurtured and can be uniform across the entire world despite different social, religious, racial and national backgrounds. Leaders should be consistent in their actions regardless of the contexts they encounter. To that end, Benedict says that all leaders are able to differentiate between right and wrong and inspire followership that brings about happiness to all people. Mary Midgley She concentrates her main ideas on themes of leadership by articulating that a leader should be ready to try out ‘his/her sword’ . By that, she means that every leader has special attributes, which he/she should use to achieve the goals that the followers. It is important to note that Midgley holds the view that different leaders are unique and their leadership skills are dependent on the goals they seek to accomplish. It is therefore upon the leaders to understand their ‘swords’ and act in a way that can provide the best form of leadership to their organizations. F.G Bailey Bailey emphasizes on values and beliefs in leadership. He asserts that virtuous leaders should be able to make decisions that do not contradict the beliefs of the followers. Beliefs and values should shape the common goal in a group. No leaders should exert their personal beliefs and values to the followers. UN Commission on Human Rights The global body focuses its attention and activities on the need to uphold human rights regardless of where people live. UNCHR emphasizes on the importance of human dignity and the need t o remove impediments that lead to violation of human rights. In many instances, UNCHR has spearheaded democratic leadership and governance where governments enshrine human rights as a way of dignifying the lives of their citizens. Indeed, the organization holds the view that all human beings are important regardless of their location in the world and governments should abide by global standards in enshrining human rights. Isaiah Berlin Berlin asserts that leaders face numerous challenges and upheavals in pursuit of ideal societies and organizations. These challenges hinder their ability to perform nobly although they provide different insights to the leaders. To him, leadership should entail the ability of leaders to overcome such hurdles and achieve their objectives in line with the wishes and aspirations of the followers. In pursuit of idealistic leadership, Berlin articulates that leaders and organizations should be able to differentiate actions that could impede the achievemen t of the goals that are in the best interest of the majority. Application of the Theoretical Standpoints on the Case Study From the above case study, we learn of a global icon who exercised leadership using virtues. Annan was global leader despite his roots being in Africa. He always perceived the world from the lens of globalization and nobleness. Benedict cite him as an example of a leader who defied social and economic backgrounds to achieve his objective of uniting the world and delivering peace to war-torn regions.Advertising Looking for case study on political sciences? Let's see if we can help you! Get your first paper with 15% OFF Learn More His virtues were consistent throughout his life as the UN Secretary General. Despite many setbacks that impeded his ability to achieve some of his goals, Annan represents a leader whose ‘anthropology’ did not lead to ‘abnormal’ leadership style (Ciulla, 2003). Since his school days, Ciulla (2003) asserts that Annan was able to nurture his astuteness as a leader and adopt virtues that are important in enhancing effective leadership. His virtues of dignity, confidence, courage, compassion and faith stuck with him throughout his reign at the UN. As elucidated by Benedict, Annan depicts a leader who has the ability to distinguish between right and wrong and inspire followership that brings about happiness to all people. Midgley on the other hand would attribute the leadership abilities of Annan to uniqueness of specific leaders. She pinpoints that leaders have ‘their own swords’, which they use to exercise leadership. To her, Kofi Annan was a unique leader whose traits and virtues were outstanding. To cement her assertions, it is important to highlight that his predecessor and successor have different traits. Indeed, they have ‘different swords’ to exercise leadership. Midgley tends to disagree that leadership is nurtured and asserts that it is inborn a nd not all leaders are able to exercise leadership qualities in a similar way. The aspirations and objectives of UNCHR seem to coincide with the virtues of leadership offered by Annan. In particular, UNCHCR emphasizes on the need for human dignity in the world. This would imply that leaders work towards ending atrocities, poverty, diseases and wars that demean and devalue human dignity. Annan’s virtues dictated that all human beings should live in a peaceful and loving way and instances of wars ought to end (Ciulla, 2003). In fact, Annan pointed out that no government should shield itself in the name of sovereignty given the fact that its citizens have suffered in a huge way. To this end, he called for other nations to bear the responsibility and obligation to prevent atrocities that occur in some countries. This way, Annan was convinced that the world would uphold human dignity, importance of peace and the need to reduce pandemics.Advertising We will write a custom case study sample on Kofi Annan Leadership Traits specifically for you for only $16.05 $11/page Learn More Berlin perceives Annan from a standpoint of idealism. He sees his leadership style to draw inspiration from his virtues as too optimistic for the world to achieve. While Annan believes that world peace is possible, Berlin tends to be cautious by saying that there are many challenges for leadership that pursues idealism. Nonetheless, Berlin sees such leadership being very important since it helps leaders to address similar situations in future. In essence, the objectives that UNCHR has seem to explain the case study in a more elaborate way than the rest of the theories. This is partly because Annan was the custodian of these objectives when serving as the Secretary General of the UN. To this end, his goals and perception of the global society were motivated by the need to uphold human dignity and peace. His articulation that no country could shield itself in the pretext of sovereignty provided a clear indication of the levels that he could reach in achieving the goals of the organization. Nonetheless, Annan was an outstanding leader whose virtues provided guidance not only to him but also to the international organization that he served. Virtuous leadership brings about effectiveness. All leaders should therefore aspire to have virtues that uphold human dignity. Reference Ciulla, J. (2003). The Ethics of Leadership. New York: Thompson-Wadsworth Publishers. This case study on Kofi Annan Leadership Traits was written and submitted by user Obi-Wan to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Profile of Mary Lacey Sr. & Mary Lacey Jr, Salem Trials

Profile of Mary Lacey Sr. & Mary Lacey Jr, Salem Trials The name â€Å"Mary Lacey† belongs to two women involved in the Salem witch trials of 1692: Mary Lacey the mother (referred to here as Mary Lacey Sr.), and her daughter Mary Lacey (referred to here as Mary Lacey Jr.). Mary Lacey Facts Known for:  in the 1692  Salem witch trialsAge at time of Salem witch trials:  Mary Lacey Sr. was about 40, and Mary Lacey Jr. was 15 or 18 (sources differ)Dates: Mary Lacey Sr.:  July 9, 1652- 1707.  Mary Lacey Jr.: 1674? - ?Also known as:  Mary Lacy Family, Background: Mary Lacey Sr. was the daughter of Ann Foster and her husband, Andrew Foster.  Ann Foster emigrated from England in 1635.  Mary Lacey Sr. was born about 1652.  She married Lawrence Lacey on August 5, 1673. Mary Lacey Jr. was born about 1677. Mary Lacey and the Salem Witch Trials When Elizabeth Ballard of Andover fell ill with a fever in 1692, the doctors suspected witchcraft, knowing of the events in nearby Salem.  Ann Putnam Jr. and Mary Wolcott were called to Andover to see if they could identify the witch, and they fell into fits upon seeing Ann Foster, a 70-something widow.  She was arrested and sent to Salem jail on July 15. She was examined on July 16 and 18.  She resisted acknowledging that she had committed any witchcraft. An arrest warrant was issued against Mary Lacey Jr. on July 20th, for â€Å"Committed Sundry acts of witchcraft on Eliz Ballerd, the wife of Jos Ballerd of Andover. to her great hurt.† She was arrested the next day and brought to an examination by John Hathorne, Jonathan Corwin, and John Higginson.  Mary Warren fell into a violent fit at the sight of her.  Mary Lacey Jr. testified that she had seen her mother, grandmother and Martha Carrier flying on poles given by the Devil.  Ann Foster, Mary Lacey Sr. and Mary Lacey Jr. were examined again that same day by Bartholomew Gedney, Hathorne, and Corwin, â€Å"accused of practicing witchcraft upon Goody Ballard.† Mary Lacey Sr. accused her mother of witchcraft, probably to help deflect the charges against herself and her daughter.  Ann Foster had until that time denied the charges; she may have shifted strategies to save her daughter and granddaughter. Mary Lacey Sr. was indicted for bewitching Mercy Lewis in Salem on July 20. On September 14, the testimony of those who charged Mary Lacey Sr. with witchcraft was delivered in writing.  On September 17, the court tried and convicted  Rebecca Eames, Abigail Faulkner, Ann Foster, Abigail Hobbs, Mary Lacey Sr., Mary Parker, Wilmott Redd, Margaret Scott, and Samuel Wardwell, and they were condemned to be executed. Later in September, the last eight convicted of witchcraft were hanged, and at the end of the month, the Court of Oyer and Terminer stopped meeting. Mary Lacey After the Trials Mary Lacey Jr was released from custody on October 6, 1692, on a bond. Ann Foster died in jail in December of 1692; Mary Lacey was eventually released.  Mary Lacey Jr. was indicted on January 13 for â€Å"covenanting.† In 1704, Mary Lacey Jr. married Zerubbabel Kemp. Lawrence Lacey sued for restitution for Mary Lacey in 1710.  In 1711, the  legislature of the Province of Massachusetts Bay  restored all rights to many of those who had been accused in the 1692 witch trials. Included were George Burroughs, John Proctor, George Jacob, John Willard, Giles and  Martha Corey,  Rebecca Nurse,  Sarah Good, Elizabeth How,  Mary Easty, Sarah Wilds, Abigail Hobbs, Samuel Wardell, Mary Parker,  Martha Carrier, Abigail Faulkner, Anne Foster, Rebecca Eames, Mary Post, Mary Lacey, Mary Bradbury and Dorcas Hoar. Mary Lacey Sr. died in 1707.

A Study of the Conversion Options for the Bataan

T. S. undertook a study of the options for converting the Bataan Nuclear Power Station to fossil fuel (coal or natural gas) combustion. One aim of the study was to find another market for Philippine and Australian coal or natural gas (LNG). The essential question regarding the Bataan Reactor is: how to obtain a financial return from a very expensive power station that * has never produced electricity; * is costing the Philippinec State a sizeable sum in interest; and * has environmental, safety and social concerns over its use as a nuclear power station. The retrofitting of the turbine generator with a fossil fuel fired steam raising system was suggested as a means of utilising part of the plant, and obtaining some return for past and future expenditure. The report/proposal examined some options for fossil fuel firing, and compared those options with nuclear operation. Background The Bataan Nuclear Power Plant was completed in 1984, whilst construction commenced in 1976. It is a Westinghouse light water reactor, that uses pressurised water as it heat exchange medium between the reactor and the steam generators. Its design thermal capacity is 1876MW(t), whilst its rated power output is 621MW(e)1. The technology that is incorporated into the plant is essentially early seventies, but has been modified to incorporate more recent safety devices, such as those recommended by the US Nuclear Regulatory Commission, after evaluation of the Three Mile Island incident. The plant, which was in the process of commissioning at the time of the EDSA revolution, has not been fired, although nuclear fuel was delivered to it storage facilities. Maintenance has continued, with the integrity of the plant and ancillaries being ensured. Conclusion of Study The Philippine Government has previously stated that the Philippines will have nuclear power, but that power will come from new plant and not the Bataan reactor. President Ramos announced on the 8th October 1994 that the Reactor would be converted to a 1000MW combined cycle gas plant. (Although an announcement for a specific conversion scheme has been made, it is still considered that there is time for other options to be considered. ) We found that conversion is technically possible, but economically unwise. New and dedicated coal or natural gas fired power plants would give much higher efficiencies, and thus would give the Philippines much better value per peso spent on fuel consumed. The M. E. T. T. S. ‘s study concluded that the only way of obtaining a reasonable return from the Bataan ‘machine’ is to use it as a nuclear power plant. Our report specifically came to the following conclusions: * That the use of the present ‘nuclear’ turbine/generator in a fossil fired system would be highly wasteful of energy (fuel), A new pulverised coal power station and/or combined cycle natural gas power stations at other site(s), would be a better investment in terms of fuel efficiency and levellised power costs, * The Bataan site is inappropriate for coal fired plant, due to environmental constraints and materials (coal and ash) handling problems, * More assessable sites could be found for co mbined cycle natural gas fired plants around Manila Bay, and Batangas, * The Bataan reactor has been maintained in a good condition since mothballing, and The reactor is of basically sound design and construction, and could with modest expenditure become one of the most modern and safest light water reactors in East Asia. To fire the plant as a nuclear facility, the sea water intakes to the condensers would need to be cleaned (with some equipment being replaced), some of the reactor monitoring systems would need to be further upgraded, whilst the second power transmission system would need to be reconstructed. Staff would need to be retrained and re-licenced. A description of the study is presented in the attached article by Clarke, Ebeling and Cordero. The article was presenred at The First Philippine International Conference on Energy Efficiency and Demand Side Management, Manila, January 1995. Options for the Conversion of the Bataan Nuclear Power Plant to Fossil Fuel Firing Dr. Michael C. Clarke, Director, M. E. T. T. S. Pty. Ltd. , Sydney, Australia Mr. Douglas R. Ebeling, Associate, M. E. T. T. S. Pty. Ltd. , Sydney, Australia Eng. Donato L. Cordero, Engineering Manager, Bataan Nuclear Power Plant The following Executive Summary of a major report formed the basis of a paper presented at the 1st Philippine Conference on Energy Efficiency and Demand-side Management, Manila, January 1995. ) Capital costs and power generation costs are summarised in Table 1, for one coal conversion option, and the conversion of the plant to natural gas fired, combined cycle operation. For comparison purposes figures are also presented for the refurbishm ent, commissioning and running the plant as a nuclear power station. Electricity costs from nuclear operation are considerably cheaper than for ither the two conversion options. If power costs was the only criteria for operating the plant then nuclear firing would clearly win. Both coal and natural gas conversions will have environmental consequences for the region. By the installation of best available technology and the application of best available practice, the impact will be minimised. The cost of technology and practice however will increase the cost of electricity produced by the plant. Table 1. SUMMARY TABLE, FOSSIL FUEL CONVERSION OPTIONS, BNPP – Revision, March 1995 CONVERSION TO COALCONVERSION TO N. GASNUCLEAR COMPARISON POWER OUTPUT MW(e)8001700 620 ENERGY OUTPUT GWH5,600 (With FGD – 5400)12,2004,613 CAPITAL COST $USm750 (With FGD – 1070)1385380 (UPGRADE) Electricity Cost ? US/kWH4. 82 (With FGD – 5. 94) 5. 24, 4. 34 (FP $230/170)3. 50 Electricity Cost P/kWH1. 21 (With FGD – 1. 49)1. 31, 1. 09 (FP $230/170)0. 88 CAP. COST/POWER OUT0. 94 (With FGD – 1. 34)0. 810. 61 CONSTRUCTION TIME42 MONTHS4218. 24 FGD Flue Gas Desulphurisation (+ Selective Catalytic Reduction) FP Fuel Price, Natural Gas ($US230 /tonne for LNG, $US170 /tonne piped gas) – (Coal $US 55 / tonne) Notes on Table 1 For comparison purposes, the two fossil fuel conversion options and the nuclear comparison have each had the electricity cost based on a pay-back period of twenty years. In each case (for the table) it has been assumed that the full capital cost has been borrowed. When financing packages are being considered, different pay-back periods are likely to be used. The periods are likely to increase with increasing debt. With the natural gas conversion option, an equity contribution would probably be included, since a BOT financing scheme may be used, that ties gas production, reticulation and use into one commercial package. The electricity costs for coal and natural gas conversion are based on a reasonably optimistic scenarios, where no excessive ancillary capital works are charged against the plant. If environmental or other factors require such works, then increase in the electricity cost would occur. It is further considered that the plant required for conversion would be sourced from low cost countries; China, India, Australia, the Philippines etc, as far as possible. The costings for conversion are further premised on the use of the site allocated for construction of PNPP 2, in that it is supplied at no cost, and is geologically stable. If the time required for the construction and commissioning is crucial, then the upgrading of the plant as a nuclear station is clearly the preferred choice. Further, the financial analyses indicate that the nuclear firing of the plant offers the cheapest electricity. Given that the nuclear fuel price is likely to remain stable over the foreseeable future (as against likely rises for coal and natural gas), the nuclear upgrading# and operation offers greater financial certainty to investors. # M. E. T. T. S. ‘s estimate for upgrading the nuclear plant to 1997/8 standards is $US380m. It is backed by further external assessment, and includes new safety features. $US300m is the cost of a basic upgrading based on calculations carried out by the National Power Corporation. SUMMARY – COAL FIRING The conversion of the PNPP I plant to coal firing has some advantages. Coal technology is well proven, and only a small variation in the normal use of that technology is required to convert the plant. The power station will have a capacity similar to the design capacity for the nuclear plant, and will not be the largest plant in the new echelon of Luzon’s power facilities. The plant of 800 MW(e) capacity will be relatively inexpensive at a capital cost of $US505m – without Flue Gas Desulphurisation, Selective Catalytic Reduction, or excessive expenditure on coal or ash handling and ignoring the previous expenditure on the nuclear system. A construction and commissioning period of 42 months is envisaged. The coal option however offers unique co-economic opportunities. The ash waste product would be valuable if used in ancillary industry. By using the Lahar produced by the Pinatubo eruption as an aggregate, with the ash, iron oxide and cement, valuable building materials could be produced. The disadvantages include designing and fitting an environmentally acceptable coal fired power station into the Bataan region. The materials handling alone will create many environmental, management and operational difficulties. The infrastructure requirements for materials handling will also raise engineering and environmental questions that will need to be solved before construction begins. Other environmental questions concerning emission reduction and control must also be answered before work can commence. Another major disadvantage is the requirement for premium fuel, that is expensive in 1994, and in all probability will become relatively more expensive as the demand for ‘clean’ coal increases in the future. SUMMARY – NATURAL GAS FIRING (COMBINED CYCLE, GAS TURBINE) Natural gas provides the cleanest option for the conversion of the Bataan power station to fossil fuel firing. It further offers the most flexible power output to the grid. Options exist for running a part (or whole) of the plant as a single cycle peak load provider, or running the whole plant as a base load facility. The environmental hazard that would be created by such a plant is low compared to coal. Thermal pollution to the sea would be greater than the nuclear option, in that if a 1700MW(e) plant was built with 46% efficiency, the waste heat would be 2000MW(t). This heat would be partially dissipated into the atmosphere (250MW) as against to the sea (1750MW). The additional heat discharge to the sea would be about 500MW(t). NOx emissions can be successfully controlled by modern technology. Steam or water injection, ammonia addition or innovative combustion designs will produce acceptable (but not zero) NOx emissions. At 1700MW(e), the power station would be the largest in the Philippines, and would certainly require a review of the Luzon energy plan. The total consumption of natural gas over a twenty five year period would be 2. 5 TCF; over half the entire Philippine projected resource from Palawan. Over a billion dollars in capital would be needed to build the plant, plus an additional substantial sum to supply the fuel; either as LNG or pipeline gas. The security of a large gas holding area would need to be addressed. Such a holding area and power station would make a relatively easy target when compared to a coal fired plant with coal yards or nuclear facilities. The installation of the gas turbines could be achieved in eighteen months, but the construction of the steam generators and carrying out modifications to the existing plant would take a further twenty four months. From the preliminary financial analysis, the construction of a new combined cycle power station makes better financial sense. A NUCLEAR COMPARISON Under the four headings (Technology, The Environment, Social and Political Concerns, and Economy) that were used to examine the coal-conversion option, a brief summary has been made of the nuclear option for comparison purposes. Technology Light water reactors are a very common type of nuclear reactor. They have good safety records, and most have high capacity factors. There development has been continuous, with technology now being available from Japan, Korea, France, the United Kingdom as well as the United States. They are used in close proximity to the Philippines (Japan, Korea and Taiwan) and have been armarked for use in Indonesia and Malaysia. The Bataan unit is 1970/80’s technology. It is however essentially the same as new units, and could be readily upgraded to 1990’s standards. The Environment The reactor will produce thermal pollution (waste heat) that will be disposed of, off Napot Point to the South China Sea. An environmental impact assessment cleared the plant for its designed heat disposal, and found that localised heating of the sea would not be excessive, given the strong currents that would ensure dispersion of the hot water. No other polluting emissions could be expected from the nuclear power plant. (Accidental emissions of radioactive material, are most unlikely. Once the plant was upgraded to 1997 standards, one accident in a million years could be expected. ) Social and Political Concerns The perceived problems at the Bataan power plant are its greatest liability. These problems include seismic instability, claims of faulty workmanship and the lack of experience of the operators. Many geological and seismic inspections have been carried out on the site, with the result being that no significant risk is apparent. To convince Philippine Society of the seismic safety of the plant, an educational programme would need to be carried out that emphasised the sites stability, and the high seismic safety factor of the plant (0. 4g). Part of the process of refurbishment and upgrading, would be quality assurance on all systems and components of the plant. Modern QA techniques would need to be used to provide the certainty that all significant parts of the plant meet the highest safety and operational standards. Initially foreign experts would be needed to run the plant. The retraining of Philippine staff would take considerable time and money, with the retrained staff spending a number of years assisting in operating similar plants in neighbouring countries. Economics By comparison with the costs of conversion to coal or natural gas, the refurbishment and upgrading of the plant for nuclear operation would be significantly cheaper. A maximum price of $US300m (including staff training) is a fair limit, compared to fossil fuel conversion alternatives. The nuclear option should have the shortest lag time in terms of upgrading and commissioning. If foreign staff were used to initially man the plant then a period of eighteen to twenty months would be needed for full operation. This relatively short period, may be valuable in that the some of the expensive, old or temporary oil fired power plant could be retired early. Fuel costs, plus operation and management costs for LWRs should cost no more than ? US 2/kWH (0. 54 Centavos/kWH). If the interest on the $US 300m was 12%, with a pay-back period of twenty years for the capital, then a further 0. 9? US/kWH would be added to the power cost. The total power cost would be 2. 9? US/kWH (0. 78 Centavos/kWH). If consideration was given to running the Bataan power station as a nuclear plant, then the environmental and economic benefits (as well as safety) should be emphasised, to overcome social and political opposition. THE PHILIPPINES AND THE NUCLEAR CYCLE The Philippines would be an importer of nuclear fuel and an exporter of spent fuel. The fuel that the reactor would use would be lightly enriched. As the uranium 235 is consumed, some plutonium is formed, part of which is also used up as fuel. The spent fuel rods contain a depleted amount of uranium 235, a little plutonium but mostly non-fissile uranium 238. These fuel rods can be reused in heavy water type reactors (CANDU) that are running in Japan, Korea and Taiwan, as primary fuel. All the wastes would be processed by those countries, whilst the Philippines would receive a financial return for its used nuclear fuel. This is a win-win situation. The sale of the used fuel rods could bring the net production cost of electricity (fuel plus operations and management) to under ? US 1. 5/kWH. PLANT SECURITY AND THE NUCLEAR OPTION Unfortunately there is an ongoing insurgency situation in the Philippines. The insurgency problems are no longer major, and in all probability will recede. All major plant however does need a security system. The Bataan plant was constructed with good external, perimeter and internal security systems. There are commonly perceived notions that Nuclear Plants are susceptible to terrorist attack. These notions are based on a lack of understanding of the compact nature of nuclear plants, and the presence of very considerable containment structures for the reactor and fuel stores – especially American designed LWRs. The plant is easy to guard, and would be able to resist attack with light weapons, including rocket propelled grenades etc. The damage from such an attack would be limited to the knocking out of ancillary plant and structures, including the transformer yard, the auxiliary fuel tanks and administration building. Notes 1. The above power cost figures are based on 1997 projected fuel prices, 12% interest, 85% availability, and 20 years amortisation.. The price of coal and natural gas are considered to be more liable for major increases, than nuclear fuel. The Asian demand for both coal and gas is expected to outstrip supply in the coming decade. 2. The estimated construction time includes planning and design, equipment construction, site modification, plant erection and commissioning, and staff training (coal and natural gas conversion). If major ancillary works are required (eg. major wharves, ash and coal pipelines, shipping channels etc), then both an increase in the construction time and costs could be expected. A Study of the Conversion Options for the Bataan T. S. undertook a study of the options for converting the Bataan Nuclear Power Station to fossil fuel (coal or natural gas) combustion. One aim of the study was to find another market for Philippine and Australian coal or natural gas (LNG). The essential question regarding the Bataan Reactor is: how to obtain a financial return from a very expensive power station that * has never produced electricity; * is costing the Philippinec State a sizeable sum in interest; and * has environmental, safety and social concerns over its use as a nuclear power station. The retrofitting of the turbine generator with a fossil fuel fired steam raising system was suggested as a means of utilising part of the plant, and obtaining some return for past and future expenditure. The report/proposal examined some options for fossil fuel firing, and compared those options with nuclear operation. Background The Bataan Nuclear Power Plant was completed in 1984, whilst construction commenced in 1976. It is a Westinghouse light water reactor, that uses pressurised water as it heat exchange medium between the reactor and the steam generators. Its design thermal capacity is 1876MW(t), whilst its rated power output is 621MW(e)1. The technology that is incorporated into the plant is essentially early seventies, but has been modified to incorporate more recent safety devices, such as those recommended by the US Nuclear Regulatory Commission, after evaluation of the Three Mile Island incident. The plant, which was in the process of commissioning at the time of the EDSA revolution, has not been fired, although nuclear fuel was delivered to it storage facilities. Maintenance has continued, with the integrity of the plant and ancillaries being ensured. Conclusion of Study The Philippine Government has previously stated that the Philippines will have nuclear power, but that power will come from new plant and not the Bataan reactor. President Ramos announced on the 8th October 1994 that the Reactor would be converted to a 1000MW combined cycle gas plant. (Although an announcement for a specific conversion scheme has been made, it is still considered that there is time for other options to be considered. ) We found that conversion is technically possible, but economically unwise. New and dedicated coal or natural gas fired power plants would give much higher efficiencies, and thus would give the Philippines much better value per peso spent on fuel consumed. The M. E. T. T. S. ‘s study concluded that the only way of obtaining a reasonable return from the Bataan ‘machine’ is to use it as a nuclear power plant. Our report specifically came to the following conclusions: * That the use of the present ‘nuclear’ turbine/generator in a fossil fired system would be highly wasteful of energy (fuel), A new pulverised coal power station and/or combined cycle natural gas power stations at other site(s), would be a better investment in terms of fuel efficiency and levellised power costs, * The Bataan site is inappropriate for coal fired plant, due to environmental constraints and materials (coal and ash) handling problems, * More assessable sites could be found for co mbined cycle natural gas fired plants around Manila Bay, and Batangas, * The Bataan reactor has been maintained in a good condition since mothballing, and The reactor is of basically sound design and construction, and could with modest expenditure become one of the most modern and safest light water reactors in East Asia. To fire the plant as a nuclear facility, the sea water intakes to the condensers would need to be cleaned (with some equipment being replaced), some of the reactor monitoring systems would need to be further upgraded, whilst the second power transmission system would need to be reconstructed. Staff would need to be retrained and re-licenced. A description of the study is presented in the attached article by Clarke, Ebeling and Cordero. The article was presenred at The First Philippine International Conference on Energy Efficiency and Demand Side Management, Manila, January 1995. Options for the Conversion of the Bataan Nuclear Power Plant to Fossil Fuel Firing Dr. Michael C. Clarke, Director, M. E. T. T. S. Pty. Ltd. , Sydney, Australia Mr. Douglas R. Ebeling, Associate, M. E. T. T. S. Pty. Ltd. , Sydney, Australia Eng. Donato L. Cordero, Engineering Manager, Bataan Nuclear Power Plant The following Executive Summary of a major report formed the basis of a paper presented at the 1st Philippine Conference on Energy Efficiency and Demand-side Management, Manila, January 1995. ) Capital costs and power generation costs are summarised in Table 1, for one coal conversion option, and the conversion of the plant to natural gas fired, combined cycle operation. For comparison purposes figures are also presented for the refurbishm ent, commissioning and running the plant as a nuclear power station. Electricity costs from nuclear operation are considerably cheaper than for ither the two conversion options. If power costs was the only criteria for operating the plant then nuclear firing would clearly win. Both coal and natural gas conversions will have environmental consequences for the region. By the installation of best available technology and the application of best available practice, the impact will be minimised. The cost of technology and practice however will increase the cost of electricity produced by the plant. Table 1. SUMMARY TABLE, FOSSIL FUEL CONVERSION OPTIONS, BNPP – Revision, March 1995 CONVERSION TO COALCONVERSION TO N. GASNUCLEAR COMPARISON POWER OUTPUT MW(e)8001700 620 ENERGY OUTPUT GWH5,600 (With FGD – 5400)12,2004,613 CAPITAL COST $USm750 (With FGD – 1070)1385380 (UPGRADE) Electricity Cost ? US/kWH4. 82 (With FGD – 5. 94) 5. 24, 4. 34 (FP $230/170)3. 50 Electricity Cost P/kWH1. 21 (With FGD – 1. 49)1. 31, 1. 09 (FP $230/170)0. 88 CAP. COST/POWER OUT0. 94 (With FGD – 1. 34)0. 810. 61 CONSTRUCTION TIME42 MONTHS4218. 24 FGD Flue Gas Desulphurisation (+ Selective Catalytic Reduction) FP Fuel Price, Natural Gas ($US230 /tonne for LNG, $US170 /tonne piped gas) – (Coal $US 55 / tonne) Notes on Table 1 For comparison purposes, the two fossil fuel conversion options and the nuclear comparison have each had the electricity cost based on a pay-back period of twenty years. In each case (for the table) it has been assumed that the full capital cost has been borrowed. When financing packages are being considered, different pay-back periods are likely to be used. The periods are likely to increase with increasing debt. With the natural gas conversion option, an equity contribution would probably be included, since a BOT financing scheme may be used, that ties gas production, reticulation and use into one commercial package. The electricity costs for coal and natural gas conversion are based on a reasonably optimistic scenarios, where no excessive ancillary capital works are charged against the plant. If environmental or other factors require such works, then increase in the electricity cost would occur. It is further considered that the plant required for conversion would be sourced from low cost countries; China, India, Australia, the Philippines etc, as far as possible. The costings for conversion are further premised on the use of the site allocated for construction of PNPP 2, in that it is supplied at no cost, and is geologically stable. If the time required for the construction and commissioning is crucial, then the upgrading of the plant as a nuclear station is clearly the preferred choice. Further, the financial analyses indicate that the nuclear firing of the plant offers the cheapest electricity. Given that the nuclear fuel price is likely to remain stable over the foreseeable future (as against likely rises for coal and natural gas), the nuclear upgrading# and operation offers greater financial certainty to investors. # M. E. T. T. S. ‘s estimate for upgrading the nuclear plant to 1997/8 standards is $US380m. It is backed by further external assessment, and includes new safety features. $US300m is the cost of a basic upgrading based on calculations carried out by the National Power Corporation. SUMMARY – COAL FIRING The conversion of the PNPP I plant to coal firing has some advantages. Coal technology is well proven, and only a small variation in the normal use of that technology is required to convert the plant. The power station will have a capacity similar to the design capacity for the nuclear plant, and will not be the largest plant in the new echelon of Luzon’s power facilities. The plant of 800 MW(e) capacity will be relatively inexpensive at a capital cost of $US505m – without Flue Gas Desulphurisation, Selective Catalytic Reduction, or excessive expenditure on coal or ash handling and ignoring the previous expenditure on the nuclear system. A construction and commissioning period of 42 months is envisaged. The coal option however offers unique co-economic opportunities. The ash waste product would be valuable if used in ancillary industry. By using the Lahar produced by the Pinatubo eruption as an aggregate, with the ash, iron oxide and cement, valuable building materials could be produced. The disadvantages include designing and fitting an environmentally acceptable coal fired power station into the Bataan region. The materials handling alone will create many environmental, management and operational difficulties. The infrastructure requirements for materials handling will also raise engineering and environmental questions that will need to be solved before construction begins. Other environmental questions concerning emission reduction and control must also be answered before work can commence. Another major disadvantage is the requirement for premium fuel, that is expensive in 1994, and in all probability will become relatively more expensive as the demand for ‘clean’ coal increases in the future. SUMMARY – NATURAL GAS FIRING (COMBINED CYCLE, GAS TURBINE) Natural gas provides the cleanest option for the conversion of the Bataan power station to fossil fuel firing. It further offers the most flexible power output to the grid. Options exist for running a part (or whole) of the plant as a single cycle peak load provider, or running the whole plant as a base load facility. The environmental hazard that would be created by such a plant is low compared to coal. Thermal pollution to the sea would be greater than the nuclear option, in that if a 1700MW(e) plant was built with 46% efficiency, the waste heat would be 2000MW(t). This heat would be partially dissipated into the atmosphere (250MW) as against to the sea (1750MW). The additional heat discharge to the sea would be about 500MW(t). NOx emissions can be successfully controlled by modern technology. Steam or water injection, ammonia addition or innovative combustion designs will produce acceptable (but not zero) NOx emissions. At 1700MW(e), the power station would be the largest in the Philippines, and would certainly require a review of the Luzon energy plan. The total consumption of natural gas over a twenty five year period would be 2. 5 TCF; over half the entire Philippine projected resource from Palawan. Over a billion dollars in capital would be needed to build the plant, plus an additional substantial sum to supply the fuel; either as LNG or pipeline gas. The security of a large gas holding area would need to be addressed. Such a holding area and power station would make a relatively easy target when compared to a coal fired plant with coal yards or nuclear facilities. The installation of the gas turbines could be achieved in eighteen months, but the construction of the steam generators and carrying out modifications to the existing plant would take a further twenty four months. From the preliminary financial analysis, the construction of a new combined cycle power station makes better financial sense. A NUCLEAR COMPARISON Under the four headings (Technology, The Environment, Social and Political Concerns, and Economy) that were used to examine the coal-conversion option, a brief summary has been made of the nuclear option for comparison purposes. Technology Light water reactors are a very common type of nuclear reactor. They have good safety records, and most have high capacity factors. There development has been continuous, with technology now being available from Japan, Korea, France, the United Kingdom as well as the United States. They are used in close proximity to the Philippines (Japan, Korea and Taiwan) and have been armarked for use in Indonesia and Malaysia. The Bataan unit is 1970/80’s technology. It is however essentially the same as new units, and could be readily upgraded to 1990’s standards. The Environment The reactor will produce thermal pollution (waste heat) that will be disposed of, off Napot Point to the South China Sea. An environmental impact assessment cleared the plant for its designed heat disposal, and found that localised heating of the sea would not be excessive, given the strong currents that would ensure dispersion of the hot water. No other polluting emissions could be expected from the nuclear power plant. (Accidental emissions of radioactive material, are most unlikely. Once the plant was upgraded to 1997 standards, one accident in a million years could be expected. ) Social and Political Concerns The perceived problems at the Bataan power plant are its greatest liability. These problems include seismic instability, claims of faulty workmanship and the lack of experience of the operators. Many geological and seismic inspections have been carried out on the site, with the result being that no significant risk is apparent. To convince Philippine Society of the seismic safety of the plant, an educational programme would need to be carried out that emphasised the sites stability, and the high seismic safety factor of the plant (0. 4g). Part of the process of refurbishment and upgrading, would be quality assurance on all systems and components of the plant. Modern QA techniques would need to be used to provide the certainty that all significant parts of the plant meet the highest safety and operational standards. Initially foreign experts would be needed to run the plant. The retraining of Philippine staff would take considerable time and money, with the retrained staff spending a number of years assisting in operating similar plants in neighbouring countries. Economics By comparison with the costs of conversion to coal or natural gas, the refurbishment and upgrading of the plant for nuclear operation would be significantly cheaper. A maximum price of $US300m (including staff training) is a fair limit, compared to fossil fuel conversion alternatives. The nuclear option should have the shortest lag time in terms of upgrading and commissioning. If foreign staff were used to initially man the plant then a period of eighteen to twenty months would be needed for full operation. This relatively short period, may be valuable in that the some of the expensive, old or temporary oil fired power plant could be retired early. Fuel costs, plus operation and management costs for LWRs should cost no more than ? US 2/kWH (0. 54 Centavos/kWH). If the interest on the $US 300m was 12%, with a pay-back period of twenty years for the capital, then a further 0. 9? US/kWH would be added to the power cost. The total power cost would be 2. 9? US/kWH (0. 78 Centavos/kWH). If consideration was given to running the Bataan power station as a nuclear plant, then the environmental and economic benefits (as well as safety) should be emphasised, to overcome social and political opposition. THE PHILIPPINES AND THE NUCLEAR CYCLE The Philippines would be an importer of nuclear fuel and an exporter of spent fuel. The fuel that the reactor would use would be lightly enriched. As the uranium 235 is consumed, some plutonium is formed, part of which is also used up as fuel. The spent fuel rods contain a depleted amount of uranium 235, a little plutonium but mostly non-fissile uranium 238. These fuel rods can be reused in heavy water type reactors (CANDU) that are running in Japan, Korea and Taiwan, as primary fuel. All the wastes would be processed by those countries, whilst the Philippines would receive a financial return for its used nuclear fuel. This is a win-win situation. The sale of the used fuel rods could bring the net production cost of electricity (fuel plus operations and management) to under ? US 1. 5/kWH. PLANT SECURITY AND THE NUCLEAR OPTION Unfortunately there is an ongoing insurgency situation in the Philippines. The insurgency problems are no longer major, and in all probability will recede. All major plant however does need a security system. The Bataan plant was constructed with good external, perimeter and internal security systems. There are commonly perceived notions that Nuclear Plants are susceptible to terrorist attack. These notions are based on a lack of understanding of the compact nature of nuclear plants, and the presence of very considerable containment structures for the reactor and fuel stores – especially American designed LWRs. The plant is easy to guard, and would be able to resist attack with light weapons, including rocket propelled grenades etc. The damage from such an attack would be limited to the knocking out of ancillary plant and structures, including the transformer yard, the auxiliary fuel tanks and administration building. Notes 1. The above power cost figures are based on 1997 projected fuel prices, 12% interest, 85% availability, and 20 years amortisation.. The price of coal and natural gas are considered to be more liable for major increases, than nuclear fuel. The Asian demand for both coal and gas is expected to outstrip supply in the coming decade. 2. The estimated construction time includes planning and design, equipment construction, site modification, plant erection and commissioning, and staff training (coal and natural gas conversion). If major ancillary works are required (eg. major wharves, ash and coal pipelines, shipping channels etc), then both an increase in the construction time and costs could be expected.

Investments & Returns Essay Example | Topics and Well Written Essays - 1000 words

Investments & Returns - Essay Example Systematic risk, in finance, also known as non-controllable or non-diversifiable risk is the uncertainty in financial returns caused by factors that are beyond the control of an entity. These factors are macro-economic in nature. This type of risk cannot be managed by the organizations. They are the interest rate risk, the inflationary risk, the exchange risk and the market risk. The interest rate risk is caused by the movements in the cost of debt, thereby causing a decline or an increase in the interest payment on debt finance. An increase in the interest rate is unfavourable to the borrowers who will dig deeper into their pockets in order to meet the cost of debt. On the other hand, an increase in the interest rate is favourable to the lender due to an increase in the return. The opposite of the statement is true (Akrani, 2012). The inflationary risk is caused by a future increase or decrease in the commodity prices due to a deficit or a surplus in the supply level. An increase in the inflation reduces the real value of the local currency while a decrease in the inflation increases the real value of the local currency. A decline in the value of the local currency reduces the value of organizations, whereas, an increase in the value of the local currency increases the value of organizations. The exchange rate risk is caused by the volatility of the exchange rate. The exchange rate is the price of a local currency against that of the foreign currency. Companies that have subsidiaries in the internal market lose/gain when converting foreign currency to local currency when the exchange rate decreases/increases (Akrani, 2012). A decrease in the exchange rate means that less local currency is given up for the foreign the foreign currency. On the other hand, an increase in the exchange rate means that more local currency is given up for the foreign currency. The market risk is caused by the rise and fall in the prices of shares and other securities in the

Refute or support the claim that the male body is both the norm and Essay

Refute or support the claim that the male body is both the norm and ideal body in medical practice - Essay Example Feminism is a controversial topic nowadays. It aims to empower women and gave women equal rights with that of what men have. Their voice in our society plays an important role such that they are given chances to point out their views or perspectives in the topics of their concern. One of the most controversial topics that feminists won't dare give up is the topic that deals with the issue of equality if not the issue of who among the two sexes was advantageous over the other. Of the pertinent issues in this perspective comes the claim that the male body is both the norm and ideal body in medical practice. We define norms as the set of standards that was set before or emanated few years ago, which is then and was still considered as true unless proven wrong or something that has of flawless evidences and have scientific basis. Ideal as we all knew, referred to one thing that is commonly desired by most people in the society. It is also considered as an honest to goodness thing we all ought to have or acquire. The definitions of the two important terminologies in the statement at least made it clear to us what it tries to convey. For me, I definitely refute the claim that the male body is both the norm and ideal body in medical practice. As we all know, the moment we open our eyes when we are still a baby, the kind of system our society have is the patriarchal system. In this system man is the dominant sex or gender. When I say dominant, I mean that man dominated all the aspects and features of the world we live in. by this, it implies that the role of women is secondary with that of men. Medical practices rely mainly on the subject that they are dealing with. Their methods and materials depend on how complex their subject is. Even in medicine the conflict between genders is not exempted. The surgeons tend to identify themselves as good one and very able if they are man due to their capability to do things that they say woman cannot do. This idea or kind of thinking was identified before way back to ancient times until recently that there are growing numbers of female doctor's and nurses in the world. In history, men are the ideal creatures to be the subject of every study. This is due to the kind of system we have, but as we go along and modernized, the role of women in the society is eventually changed. This is mainly due to the fact that there are women who fight and prove the world that they can do more than what others expect them to do or what others think of as their limitations. Today woman's body had also been used in the medical field. As the world modernizes it also opened its coverage to the possibility that a woman's body is also an ideal body to be used in medical practices. The role of history extended to that of practices made in the medical world. Before only man are used in the field as the subject for human study of its anatomy and the processes it undergoes. Also, according to the theory of feminist or feminism, the relationship between biological sexual differences and the way we construct our social aspect of gender, which is a system of variable history, is an advantage to man and a lot more disadvantageous to women. Our culture dictate to us gendered meanings and maintains traditional divisions among genders. This implies that in different fields of practices man generally overpower women not only in strength but also, man and woman compete for the chance to be

Who Do I Admire Essay Example for Free

Who Do I Admire Essay Most of the people have somebody who they admire, that person can be a writer, an artist, a politician, some kind of public figure, a celebrity or even a friend. But that person who I admire is somebody very close to me, that person is my father. My father is not a great scientific, politician, artist or something like that. Neither has done something big to the society. He’s just a normal father and a good one by the way. So, you may ask yourselves, that if he hasn’t done anything special, why would you admire him? Well, to understand better about the reason why I admire him, I’m going to tell you about his life. My dad was born in La Romana in the 1970’s, since he was born he was raised in a poor environment, but besides that he had a lack of his parents love and support. That means he didn’t have an easy childhood. Even though his parents weren’t such good parents that didn’t affect much my father, because he at least had support of some people of his family. My father since he was a kid had dreams and goals, like most of the people do. But to fulfill one of his goals, he needed to study and graduate from high school. The problem is that his family didn’t have enough money to pay a student expenses. But my father didn’t let anything to stop him to fulfill he’s goals so he being a kid started to work as a shoe shiner to earn money by his own just to pay the school expenses. While years were passing by, my father was maturing faster than any other person of his age, due to the situation he was living. His high school graduation day came, and he had the will to continue developing in his studies, he wanted to go to the university to become a professional and so to be able to reach one of his goals. Since he was a poor person without the necessary resources to pay a university, he needed to ask help. He asked for any help to his familiars and friends, but nobody could help him, and he decided to ask his father. Unfortunately his father didn’t want to provide him any help to be able to continue his studies and he could never go to the university. Even that occurred, that never stopped my dad. His will was strong, he demanded himself to be able to progress and to continue forward. He searched for better job opportunities in one of his brothers’ company. There he got a job being a truck driver. But he didn’t want to stay as one. With time and hard work, he could obtain a better position in the company; he managed up to be the manager of the company. With his hard work and perseverance he became independent. He started his own company, and continued working. Now days, he has a company in his hometown and a branch in Higuey where he’s living today. As you’ve been listening, you know now that my father has not lived an easy and joyful life. Since his childhood he has been working to become someone important in life. Though my father grew up without the love of his parents, he never acted the same with his family. He has been an excellent father, I can’t complain about nothing. He worries a lot about his family, in every sense. He wants us to live like he wished he could live, giving my mother, my sister and I those things he could never have, and gives us that support he never received. My dad is an excellent father, a good businessman, in overall a great person. I have known a lot of people, and I have not seen anyone as my father. I don’t know if he has become someone big and important in life. But I can say that he has really become the most important person in mine. Maybe I don’t know who you admire. But I think you have heard enough to understand why my dad is the person who I admire.

Jane Eyre :: essays papers

Jane Eyre Jane and Rochester Belong Together The overriding theme of Jane Eyre is Jane's continual quest for love. Jane searches for love and acceptance throughout the book. The intelligent, honest, plain-featured girl is forced to contend with oppression, inequality, and hardship. Jane's meets with a series of individuals who threaten her autonomy, but she maintains her principles of justice, human dignity, and morality, as well as her values of intellectual and emotional fulfillment. As a governess though, she is subject to economic and gender enslavement. Maturation and self-recognition become evident to the reader as Jane's journey pursues. However, it is not until Jane spends time at Moor House that her maturation is complete. Jane and Rochester, without a doubt, belong together. Jane needs only to discover this for herself. St. John emerges as the crucial character that helps Jane realize her destiny to be with Rochester. When Jane returns to Rochester, she is an independent woman, fully aware of her desire to love, as well as be loved. From their first meeting in Hay Lane, where Jane "bewitches" Rochester's horse, there is, between Jane and Rochester, an unspoken bond that slowly blossoms into true love and devotion. After what appears to be a brief engagement to the "honorable" Miss Blanche Ingram, whom everyone expects to marry Rochester, he mysteriously calls off the marriage plans and proposes to Jane. In his proposal to Jane, he bares his soul to her, allowing her to look, not into his eyes, but into his soul, where he reveals not the worldly exterior and miseries with which life has saddled him, but the true, pure being beneath. Rochester believes Jane to be his best earthly companion and the only woman who is his equal. Rochester's declaration of love and marriage proposal makes Jane exceedingly happy. Their relationship is alive with passion and the fiery union of two tormented souls imprisoned by Fate and the morals of their time. However, Jane worries about her financial inferiority. Jane hates the thought of marrying "above her station", as she does not want to feel that she somehow "owes" Rochester something. Her feelings and desires for Rochester are tightly bound with her feelings about her social position as well as her position as a woman. Jane tries to swallow her insecurities and continue with the plan to marry, but on their wedding day, Jane discovers Rochester is already married to a mad woman.

Important factors shaping social relationships under the French

Social relationships were important components of the French absolute monarchy. Historians agree that to achieve supreme control and national unity, Kings relied heavily on military strength. There is little question that absolutist France came to posses the largest standing army Europe had ever seen. Armies made France a powerful state, and the King a powerful ruler. However kings also controlled through non military means, establishing bureaucratic and legal systems and developing an absolutist culture with the King at the centre.These manifestations of absolutism, at raying degrees of significance, helped shape social relationships, and in turn, enforced the absolutist regime. Contrastingly, other historians maintain that the absolute system worked within pre-existing social codes, which were more influential in shaping social relationships. Historians herald the significance of these different factors because they take a variety of historiographer's approaches. Absolutism redefin ed the socio-political structures and language of court society. Court cabals and courtesies became important factors that influenced social relationships.Emmanuel Eel Roy Ladies uses the court memoirs of Duct De Saint Simons, to explain the system of court cabals. Ladies explains how the King placed himself at the top of the court hierarchy, and held a number of favorites. L Lower courtiers would group around these powerful Individuals, such as King Louis Xiv wife Madame De Imitation, to gain power, wealth, status and other privileges through association. 2 Saint Simony's court memoirs are a more traditional historiographer's source, detailing friendships, marriages and patronage relationships that formed and separated court cabals. However Lauder himself admits the limitations of the source, stating that It has a tendency to be subjective with some bias, and Inaccurate facts. 4 But as Ladler states, his purpose was not statistical detail, but to present a ‘model' for the net work of social relationships in court society, and to reveal that they placed the king in an enormous position of influence to determine courtier's social standing. 5 Rest Raman consults similar sources and concludes that courtesies were a new political language that redefined the way courtiers socialized and communicated, while also being a political tool for negotiating the cabal system.Raman analyses Theodore Goddesses Grand Ceremonial De France from 1619, one of the many courtesy manuals written for courtiers. 6 Absolutist monarchies did not invent courtesies, but Raman argues that these manuals justified and systematized these social codes. 7 Courtesy rules dictated the nature of social affiliations and interactions, becoming a vital political language in court society, as a means of showing or denying respect or favor to individuals and cabals. For example â€Å"hat doffing†¦ And lowered eyes† became the language of respect that carried on along the hierarchy, with the King at the top. Ere â€Å"insults to God himself, † enforcing enormous regal authority. 9 Moreover, under Louis XIV, all topics except frivolous small talk, were branded ‘discourteous,' in an attempt to repress uprisings. 10 Both historians analyses similar sources and share the conclusion that absolutism created a new social order, designed to enforce the Kings power. Sarah Hanley however, argues bureaucratic models, established by the absolutist state, were important factors shaping family and gender relationships.Hanley investigates the ‘Family State Compact,' revealing that it enforced distinct gender oleos and enshrined the patriarchal family model in legislation. This model was in turn used to explain and Justify absolutism. 11 Hanley approaches her study with an â€Å"ethnographic† perspective. 12 She states that conventional historiography has always been a uniform process of selecting documents to confirm a point, but more recent scholarship on social history now seeks to gain greater scope and depth by viewing a range of non-traditional sources. 3 From these historians may distill messages about social life. 14 Hanley use of primary government legislation and court case documents, are examples of expanding historical sources. The Marriage Regulations, Reproduction Rules and Marital Separation Arrangements ensured family finances remained under paternal authority, helped guarantee the legitimacy of children and made it harder to break up marriages and families. 1 5 But as Hanley indicates, the underlying purpose of these laws was to constitutionalism patriarchal control over all family affairs. 6 It was a key bureaucratic factor that helped enforce male social and economic dominance, within the family. Furthermore, the patriarchal family worked to Justify and naturalist the appointment of an absolutist ruler, who could be seen as he â€Å"husband† and â€Å"father† of the state. 17 Furthermore, Hanley exam ination of court cases exposes legal limitations on female political and economic privileges within their marital and civic relationships.Women gained social and economic status through marriage and childbearing, but the Compact put men in greater control these activities, disemboweling women and forcing them to break laws for economic and social survival. 18 In the Diagram- du Piqued case for example, Barber- Francoise Diagram was charged with â€Å"supposition attendant† because she faked the birth of a child to avoid becoming a childless widow and losing socioeconomic status. 9 Furthermore, this source reveals that legal structures shaped collaborative relationships between women of different social classes, as Barber sought the assistance of midwifes, paupers and a prostitute. 0 Thus while primary accounts such as Saint-Simony's Memoirs explain social and genealogical connections at their surface, Handless wider variety of social records reveals in greater depth, the gend ered social constructions that defined social relationships in the absolutist monarchy, as well as unexpected cross-class relationships. Cultural manifestations of absolutism in art, gardens and entertainment were further significant factors shaping social relationships. Diverging from traditional and social historiographers, Peter Burke, Chancre Muskier and Craig Callously take an art historical concepts to court social life.He argues that the language of allegory, hyperbole and euphemism in songs, literature, sermons, painting and other mediums communicated a lofty ‘high style' that associated the King with exalted figures and ideas. 21 For example Louis XIV was pained as SST John the Baptist and Apollo. 22 Courtiers learnt these references and conducted themselves accordingly, with grandeur and dignity. 3 In turn, this new language displayed, magnified and rationalized the King as a sublime and spiritual ruler. 24 In contrast, Muskier applies geopolitical concepts to unders tanding social relationships.Muskier references historian Michel Faculty's theory that 17th century society began to view material possessions as indicators of wealth and power. 25 Increasing trade, scientific and technological innovations made material items more prominent in social gatherings and conversations. 26 Muskier argues absolutism worked within this materialist culture, valuing land the most as a material item. 7 In a geopolitical way, Kings enforced power by appropriating and manipulating land into formal gardens. In turn, this established material ownership as a language of power. 8 Material goods came to dominate social and political relationships during the 17th century. 29 Callously similarly seeks specialized research on theatre and festivals, alongside primary accounts. However he argues the political purposes of nocturnal entertainment were significant factors shaping court life. 30 For example, Baroque night time theatre developed and through its illusionist's li ghting, performances such as Louis Xiv Ballet De la Unit,† physically presented Louis as a ‘radiant' King. 1 Furthermore, court diaries from Versailles reveal an increase in concerts, balls, and billiards, offering different opportunities for solicitation. 32 Nocturnal activities changed and began to characterize social life. 33 Memoirs by Louis XIV and absolutist critic Jean De La Buyer (1645-96) also divulge that night time entertainments were deliberate distractions from political issues. 34 Callously maintains Kings communicated and secured their power through nocturnal spectacles, which consequently transformed court social relationships. 35However unlike other historians discussed, James Afar argues social relationships were shaped by concepts of ‘Honor' that pre-dated absolutist expressions of power. Like other historians, Afar relies on a primary source: Farther Lame's eye witness account of the trial and execution of disgraced nobleman Philippe Group. Unco nventionally, Group did not confess his crime, thus preserving honor but damning his soul. 36 More important to him was maintaining honor for his family and young son. 37 Honor defined people's positions of power and status. 38 It was treated as an item that could be appropriated through displays of respect. Lame's text, confirmed by trial records, reveals Group bowed and spoke respectfully to colleagues and onlookers, to earn back some of the honor he had lost. 40 Through displays of respect, Group also sought favor with his patron the Prince of Condone, who could gain him a Kings pardon. 41 Fear's study revises primary documents and challenges past historians such as Ladies and Rest, previously discussed. Courtesy codes, and court cabals were not Just to gain political power, but were part of a possible, albeit largely speculative, that Kings consciously manipulated this established framework of honor to their political advantage.But what Group's trial reveals is honor was a preci ous commodity, and was central to the way people conversed and connected. The majority of historians discussed, agree that the most important factors shaping social relationships under the absolute monarchy, were essentially the absolute monarchy itself. Absolutism established a new laws, social customs, entertainment and art that had a dramatic impact on social relationships involving gender, class, marriage, family ties and friendships. But in contrast, historians also argue that, as in any society, there were already complex social codes that absolutism worked within.

Question Bank International Business Essay

Chapter 07 Foreign Direct Investment True / False Questions 1. (p. 242) A firm becomes a multinational enterprise when it undertakes foreign direct investment. TRUE 2. (p. 242) Licensing involves the establishment of a new operation in a foreign country. FALSE 3. (p. 242) If a firm that makes bicycles in Germany acquires a French bicycle producer, Greenfield investment has taken place. FALSE 4. (p. 242) The amount of FDI undertaken over a given time period is known as the flow of FDI. TRUE 5. (p. 242) The total accumulated value of foreign-owned assets at a given time is the inflow of FDI. FALSE 6. (p. 242) FDI is seen by executives as a means of circumventing future trade barriers. TRUE 7. (p. 244) Historically, most FDI has been directed at the developed nations of the world as firms based in advanced countries invested in the others’ markets. TRUE 8. (p. 246) The total amount of capital invested in factories, stores, office buildings and the like is referred to as the stock of FDI. FALSE 9. (p. 246) The largest source country for FDI has been China. FALSE 10. (p. 247) About 27 percent of the world’s largest 100 nonfinancial multinationals in 2004 were American companies. TRUE 11. (p. 247) In developing countries, about one third of FDI is in the form of mergers and acquisitions. TRUE 12. (p. 248) In 2004, about two thirds of FDI stock was in service industries. TRUE 13. (p. 249) As compared to exporting and licensing, FDI is the more expensive and risky. TRUE 14. (p. 250) Internalization theory is also known as the market imperfections approach. TRUE 15. (p. 250) One of the problems of licensing is that it may result in a firm’s giving away valuable technological know-how to a potential foreign competitor. TRUE 16. (p. 251) An oligopoly is an industry composed of a limited number of large firms. TRUE 17. (p. 252) When two or more enterprises encounter each other in different regional markets, national markets or industries regional competition occurs. FALSE 18. (p. 252) According to Vernon, location specific advantages can help explain the nature and direction of FDI. FALSE 19. (p. 253) Dunning, in the eclectic paradigm theory, suggests that a firm must establish production facilities where foreign assets or resource endowments necessary to the production of the product exist. TRUE 20. (p. 254) Pragmatic nationalism traces its roots to Marxist political and economic theory. FALSE 21. (p. 254) Classical economics and the international trade theories of Adam Smith and David Ricardo form the basis for the free market view. TRUE 22. (p. 255) The free market view argues that FDI is a benefit to both the source country and to the host country. TRUE 23. (p. 255) Countries adopting a pragmatic stance pursue policies designed to maximize the national benefits and minimize the national costs. TRUE 24. (p. 256) An aspect of pragmatic nationalism is the tendency to aggressively court FDI believed to be in the national interest by, for example, offering subsidies to foreign MNEs in the form of tax breaks or grants. TRUE 25. (p. 257) Foreign direct investment can make a positive contribution to a host economy by supplying capital, technology and management resources that would otherwise not be available and thus boost that country’s economic growth rate. TRUE 26. (p. 258) There is research supporting the view that multinational firms often transfer significant technology when they invest in a foreign country. TRUE 27. (p. 258) Jobs created in local suppliers as a result of the MNE’s investment and jobs created because of increased local spending by employees of the MNE are examples of direct employment effects of FDI. FALSE 28. (p. 258) Host country citizens that are employed by an MNE following an FDI are an example of an indirect effect of FDI. FALSE 29. (p. 259) A country’s balance of payments accounts keep track of both its payments to and its receipts from other countries. TRUE 30. (p. 259) A current account deficit exists when a country imports more than it exports. TRUE 31. (p. 259) In recent years, the U.S. has run a persistent balance of payments surplus. FALSE 32. (p. 260) Host governments sometimes worry that the subsidiaries of foreign MNEs may have greater economic power than indigenous competitors. TRUE 33. (p. 261) FDI does not benefit the host country’s balance of payments if the foreign subsidiary creates demand for home-country exports of capital equipment, intermediate goods or complementary products. FALSE 34. (p. 262) The term offshore production refers to FDI undertaken to serve the home market. TRUE 35. (p. 263) Countries cannot prohibit national firms from investing in certain countries for political reasons. FALSE 36. (p. 264) The two most common methods of restricting inward FDI are ownership restraints and performance requirements. TRUE 37. (p. 265) The WTO has been very successful in efforts to initiate talks aimed at establishing a universal set of rules designed to promote the liberalization of FDI. FALSE 38. (p. 266) Licensing is a good option for firms in high-tech industries where protecting firm-specific expertise is of paramount importance. FALSE 39. (p. 266-267) Typically licensing will be a common strategy in oligopolies where competitive interdependence requires that multinational firms maintain tight control over foreign operations so that they have the ability to launch coordinated attacks against their global competitors. FALSE 40. (p. 267) Licensing is more common in fragmented, low-tech industries in which globally dispersed manufacturing is not an option. TRUE Multiple Choice Questions 41. (p. 242) FDI occurs when a A. Domestic firm imports products and services from another country B. Firm ships its product from one country to another C. Firm invests in the stock of another company D. Firm invests directly in facilities to produce and/or market a product in a foreign country 42. (p. 242) A Greenfield investment A. Is a form of FDI that involves the establishment of a new operation in a foreign country B. Involves a 7 percent stock in an acquired foreign business entity C. Involves a merger with a foreign business D. Occurs when a firm acquires another company in a foreign countr 43. (p. 242) If General Electric, a U.S. based corporation, purchased a 50% interest in a company in Italy, that purchase would be an example of a(n) A. Minority acquisition B. Outright stake C. Majority acquisition D. Greenfield investment 44. (p. 242) The amount of FDI undertaken over a given time period is A. The flow of FDI B. The stock of FDI C. The FDI outflow D. The FDI inflow 45. (p. 242) The stock of FDI is A. The amount of FDI undertaken over a given period of time B. The total accumulated value of foreign owned assets at a given time C. The flow of FDI out of a country D. The flow of FDI into a country 46. (p. 242) FDI has been rising for all of the following reasons, except A. The globalization of the world economy B. The general increase in trade barriers over the past 30 years C. Firms are trying to circumvent trade barriers D. There is a shift toward democratic political institutions and free market economies 47. (p. 244) Historically, most FDI has been directed at the _____ nations of the world as firms based in advanced countries invested in A. Underdeveloped, underdeveloped countries B. Developed, underdeveloped countries C. Developed, each other’s markets D. Underdeveloped, each other’s markets 48. (p. 244) The U.S. has been an attractive target for FDI because of all of the following reasons, except A. Its small and wealthy domestic markets B. Its dynamic and stable economy C. Its favorable political environment D. Its openness to FDI 49. (p. 244) Identify the incorrect statement regarding the direction of FDI. A. Historically, most FDI has been directed at the developing nations of the world B. During the 1980s and 1990s, the United States was often the favorite target for FDI inflows C. The developed nations of the EU have received significant FDI inflows D. Recent inflows into developing nations have been targeted at the emerging economies of South, East and Southeast Asia 50. (p. 246) Africa is not a popular destination for FDI because of all of the following reasons, except A. Political unrest in the region B. Armed conflict in the region C. Liberalization of FDI regulations D. Frequent policy changes in the region 51. (p. 246) The total amount of capital invested in factories, stores, office buildings and the like is summarized by A. Gross fixed capital formation B. Total investment capital C. Total tangible investment D. Gross depreciable investments 52. (p. 246) The largest source country for FDI since World War II has been A. Japan B. China C. The United States D. The United Kingdom 53. (p. 247) Most cross-border investment is A. In the form of Greenfield investments B. Made via mergers and acquisitions C. Between American and Japanese companies D. Involved in building new facilities 54. (p. 247) Which of the following is not a reason why firms prefer to acquire existing assets rather than undertake green-field investments? A. Foreign firms are acquired because those firms have valuable strategic assets B. Firms make acquisitions because they believe they can increase the efficiency of the acquired unit by transferring capital, technology or management skills C. Even though Greenfield investments are comparatively less risky for a firm acquisitions always yield higher profits D. Mergers and acquisitions are quicker to execute than green-field investments 55. (p. 247) In developing nations most FDI inflows are in the form of A. Mergers B. Greenfield investments C. Acquisitions D. Non-profit organizations 56. (p. 248) The sector composition of FDI shows that by 2004 approximately _____ of FDI stock was in service industries. A. One fourth B. One third C. Two third D. Half 57. (p. 248) The rise in FDI in the services sector is a result of all of the following, except A. The general move in many developed countries away from manufacturing and toward services B. Accelerating regulations of services C. Many services cannot be traded internationally D. Many countries have liberalized their regimes governing FDI in services 58. (p. 248) When strategic assets such as brand loyalty, customer relationships or distribution systems are important, _____ investments are more appropriate. A. Merger and acquisition B. Greenfield C. Portfolio D. New construction 59. (p. 249) _____ involves granting a foreign entity the right to produce and sell the firm’s product in return for a royalty fee on every unit sold. A. Horizontal FDI B. Licensing C. Vertical FDI D. Greenfield investment 60. (p. 249) In a licensing arrangement, the _____ bears the risk and cost of opening a foreign market. A. Licensee B. Licensor C. Acquiring firm D. Greenfield investor 61. (p. 250) Identify the theory that seeks to explain why firms often prefer foreign direct investment over licensing as a strategy for entering foreign markets. A. Internalization theory B. Internationalization theory C. Perfect markets theory D. Small markets theory 62. (p. 250) According to the internalization theory, all of the following are drawbacks of licensing as a strategy for exploiting foreign market opportunities, except A. Licensing does not grant control over manufacturing, marketing and to a licensee in return for a royalty fee B. Licensing may result in a firm’s giving away its know-how to a potential foreign competitor C. Licensing does not give the firm the tight control over manufacturing, marketing and strategy that may be required to profitably exploit its advantage D. A firms capabilities such as the management, marketing and manufacturing are often not amenable to licensing 63. (p. 250) ______ is also known as market imperfections theory. A. Internationalization theory B. Internalization theory C. Perfect markets theory D. Small markets theory 64. (p. 251) If four firms control 80 percent of a domestic market, then ______ exists. A. An oligopoly B. A monopoly C. An oligarchy D. Vertical integration 65. (p. 251) According to Knickerbocker A. The firms that pioneer a product in their home markets undertake FDI to produce a product for consumption in a foreign market B. When a firm that is part of an oligopolistic industry expands into a foreign market, other firms in the industry will be compelled to make similar investments C. Combining location-specific assets or resource endowments and the firm’s own unique assets often requires FDI D. Impediments to the sale of know-how increase the profitability of FDI relative to licensing 66. (p. 252) The eclectic paradigm was developed by A. F. T. Knickerbocker B. Adam Smith C. Raymond Vernon D. John Dunning 67. (p. 252) When two or more enterprises encounter each other in different regional markets, national markets or industries, there is A. Vertical integration B. Horizontal integration C. Multipoint competition D. Monopolistic competition 68. (p. 252) The product life cycle suggests that A. Often the same firms that pioneer a product in their home markets undertake FDI to produce a product for consumption in foreign markets B. When a firm that is part of an oligopolistic industry expands into a foreign market, other firms in the industry will be compelled to make similar investments C. Combining location-specific assets or resource endowments and the firm’s own unique assets often requires FDI D. Impediments to the sale of know-how increase the profitability of FDI relative to licensing 69. (p. 253) The _____ suggests that a firm will establish production facilities where foreign assets or resource endowments that are important to the firm are located. A. Product life cycle B. Strategic behavior theory C. Multipoint competition theory D. Eclectic paradigm 70. (p. 253) Advantages that arise from using resource endowments or assets that are tied to a particular location and that a firm finds valuable to combine with its own unique assets are known as A. Location specific advantages B. Resource specific advantages C. Competitive advantages D. Directional advantages 71. (p. 253) John Dunning, a champion of the eclectic paradigm, argues that A. The firms that pioneer a product in their home markets undertake FDI to produce a product for consumption in a foreign market B. When a firm that is part of an oligopolistic industry expands into a foreign market, other firms in the industry will be compelled to make similar investments C. Combining location-specific assets or resource endowments and the firm’s own unique assets often requires FDI D. Impediments to the sale of know-how increase the profitability of FDI relative to licensing 72. (p. 254) According to the _____ view of FDI, MNEs extract profits from the host country and take them to their home country, giving nothing of value to the host country in exchange. A. Imperialist B. Conservative C. Free market D. Radical 73. (p. 254) Which of the following is not a reason that the radical position of MNEs was in retreat by the end of the 1980s? A. The strong economic performance of those developing countries that embraced capitalism rather than radical ideology B. The collapse of communism in Eastern Europe C. The generally abysmal economic performance of those countries that embraced the radical position D. A growing belief in many capitalist countries that MNE’s tightly controls key technology and that important jobs in the MNEs’ foreign subsidiaries go to home-country nationals 74. (p. 255) According to _____ international production should be distributed among countries according to the theory of comparative advantage. A. The radical view B. The eclectic view C. Pragmatic nationalism D. The free market view 75. (p. 256) A distinctive aspect of _____ is the tendency to aggressively court FDI believed to be in the national interest by, for example, offering subsidies to foreign MNEs in the form of tax breaks or grants. A. The dogmatic view B. Pragmatic nationalism C. The radical view D. The conservative view 76. (p. 257) When a company brings capital and/or technology to a host country, the host country benefits from the A. Competitive effect of FDI B. The resource transfer effect of FDI C. The balance of payments effect of FDI D. The effect on competition and economic growth 77. (p. 258) When jobs are created in local suppliers as a result of the FDI and when jobs are created because of increased local spending by employees of the MNE, the MNE has a _____ effect on employment. A. Direct B. Indirect C. Inward D. Outward 78. (p. 259) A _____ keeps track of a country’s payments to and its receipts from other countries. A. Federal payments ledger B. Current accounting system C. Checks and balances account D. Balance of payments account 79. (p. 259) The _____ tracks the export and import of goods and services. A current account deficit or trade deficit as it is often called, arises when a country is importing more goods and services than it is exporting. A. Current account B. Debit account C. Surplus account D. Capital account 80. (p. 261) Three costs of FDI concerns of host countries arise from all of the following except A. Adverse effects on competition within the host nation B. Adverse effects on the balance of payments C. The perceived loss of national sovereignty and autonomy D. Debit on the current account of the home country’s balance of payments 81. (p. 262) FDI undertaken to serve the home market is known as A. Greenfield investment B. FDI substitution C. Offshore production D. Home market FDI 82. (p. 263) Double taxation is A. Charging double taxes in the home country B. Charging double taxes in the host country C. Taxation of income in both home and host country D. Paying income taxes at twice the normal rate 83. (p. 264) _____ are controls over the behavior of the MNE’s local subsidiary. A. Performance requirements B. Ownership restraints C. Double taxation laws D. Greenfield restrictions 84. (p. 267) Licensing would be a good option for firms in which of the following industries? A. High-technology industries in which protecting firm-specific expertise is of paramount importance and licensing is hazardous B. Global oligopolies, in which competitive interdependence requires that multinational firms maintain tight control over foreign operations C. Industries in which intense cost pressures require that multinational firms maintain tight control over foreign operations D. In fragmented, low technology industries in which globally dispersed manufacturing is not an option 85. (p. 267) _____ is essentially the service industry version of licensing, although it normally involves much longer term commitments. A. Franchising B. Subsidizing C. Greenfield investment D. Patenting Essay Questions 86. (p. 242) Discuss the connection between foreign direct investment and multinational enterprises? Foreign direct investment (FDI) occurs when a firm invests directly in new facilities to produce and/or market a product in a foreign country. The U.S. Department of Commerce states that FDI occurs whenever a U.S. citizen, organization or affiliated group takes an interest of 10 percent or more in a foreign business entity. Once affirm undertakes FDI, it becomes a multinational enterprise. 87. (p. 242) What are the two forms of foreign direct investment? The two forms of FDI are Greenfield investment or establishing a new operation in a foreign country and mergers and acquisitions whereby a company expands internationally through an existing firm. Acquisitions can be minority, majority or a 100% ownership position. 88. (p. 242) Discuss the trends in FDI over the last 30 years. Be sure to differentiate between the stock of FDI and the flow if FDI. The flow of FDI refers to the amount of FDI undertaken over a given period, while the stock of FDI refers to the total accumulated value of foreign-owned assets at a given time. Over the last 30 years there has been a marked increase in both the flow and the stock of FDI in the world economy. Over this period, the flow of FDI accelerated faster than the growth in world trade and world output. 89. (p. 242) Discuss the reasons for the growth in FDI over the last 30 years. FDI has grown more rapidly than world trade and world output for several reasons. First, many companies see FDI as a means of circumventing potential trade barriers. Second, political and economic changes in many of the world developing nations has been encouraging FDI. Finally, the globalization of the world economy is having a positive impact on the volume of FDI as firms now see the whole world as their market. 90. (p. 242-248) What is a Greenfield investment? How does it compare to an acquisition? Which form of FDI is a firm more likely choose? Explain your answer. FDI can take the form of a Greenfield investment in a new facility or an acquisition of or a merger with an existing local firm. Research show s that most FDI takes the form of mergers and acquisitions rather than Greenfield investment. Mergers and acquisitions are more popular for three reasons. First, mergers and acquisitions are quicker to execute than Greenfield investments. Second, foreign firms are acquired because those firms have valuable strategic assets. Third, firms make acquisitions because they believe they can increase the efficiency of the acquired firm by transferring capital, technology or management skills. 91. (p. 248) Discuss the shift in FDI from manufacturing to services. What is driving the trend? Over the last twenty years, the sector composition of FDI has shifted from extractive industries and manufacturing toward services. By 2004, some 66 percent of the stock of FDI was in services. Four factors are driving the shift to services. First, the shift reflects the general move in many developed economies away from manufacturing and toward service industries. Second, many services cannot be traded internationally and FDI is a principal was to bring services to foreign markets. Third, many count ries have liberalized their regimes governing FDI in services making the option more attractive to firms. Finally, the rise of Internet-based global telecommunications networks has allowed some service enterprises to relocate some of their value creation activities to different nations to take advantage of favorable factor costs. 92. (p. 249) Consider why firms selling products with low value-to-weight ratios choose FDI over exporting. Products with low value-to-weight ratios such as soft drinks or cement are frequently produced in the market where they are consumed. When transportation costs are added to production costs, it becomes unprofitable to shift such products over a long distance. For firms that can produce low value-to-weight products at almost any location the attractiveness of exporting decreases and FDI or licensing becomes more appealing. 93. (p. 250) Discuss the market imperfections explanation of FDI. What is its relationship with internalization theory? Market imperfections or factors that inhibit markets from working perfectly, provide a major explanation of why firms prefer FDI to either exporting or licensing. In the international business literature, the marketing imperfections approach is referred to as internalization theory. According to the theory, FDI will be preferred when there are impediments that make both exporting and the sale of know-how difficult and/or expensive. 94. (p. 250) What is licensing? How does it work? Licensing occurs when a domestic firm, the licensor, licenses to a foreign firm, the licensee, the right to produce its product, to use its production processes or to use its brand name or trademark. In return, the licensor collects royalty fees on every unit the licensee sells or on total licensee revenues. The licensor also benefits from the arrangement in that the licensee bears the cost and risk of expanding into a foreign market. 95. (p. 250) Compare and contrast the advantages of foreign direct investment over exporting and licensing. A firm will favor foreign direct investment over exporting as an entry strategy when transportation costs or trade barriers make exporting unattractive. Furthermore, the firm will favor foreign direct investment over licensing (or franchising) when it wishes to maintain control over its technological know-how or over its operations and business strategy or when the firm’s capabilities are simply not amenable to licensing, as may often be th e case. 96. (p. 251) Consider the notion that FDI flows are a reflection of strategic rivalry between firms in the global marketplace. What is the main limitation of the theory? The strategic behavior approach to explain FDI was initially expounded by Knickerbockers who argued that in an oliogopolistic industry, a â€Å"follow the leader† mentality will prompt firms to pursue FDI when another firm in the industry  has already done so. However, the theory fails to explain why the first firm decided to undertake FDI, rather than export or license. 97. (p. 252) What is multipoint competition? How do firms respond to multipoint competition? Multipoint competition arises when two or more enterprises encounter each other in different regional markets, national markets or industries. Economic theory suggests that firms will try to match each other’s moves in different markets to try to hold each other in check. If a firm is successful with this strategy, the firm will ensure that a rival does not take a commanding position in one market and then use the profits generated in that market to underwrite competitive attacks in other markets. 98. (p. 252) Explain the product life cycle theory and its connection with FDI. The product life cycle theory, developed by Ray Vernon, suggests that the same firms that pioneer a product in their home country will undertake FDI to produce a product for consumption in foreign markets. According to the theory, firms will invest in industrialized countries when demand in those countries is sufficient to sup port local production. They subsequently shift production to developing countries when product standardization and market saturation give rise to price competition and cost pressures. Investment in developing countries, where labor costs are lower is seen as the best way to reduce costs. 99. (p. 252-253) What are location-specific advantages? How do they help explain FDI? Location specific advantages are advantages that arise from using resource endowments or assets that are tied to a particular foreign location and that a firm finds valuable to combine with its own unique assets. Natural resources such as oil and minerals for example, are specific to certain locations. Firms must undertake FDI to exploit such foreign resources. 100. (p. 253) Explain John Dunning’s position on FDI. What is the eclectic paradigm? John Dunning has argued that to fully understand FDI it is important to consider the role of location specific advantages. According to Dunning, a firm will be prompted to undertake FDI in an effort to exploit assets that are specific to a particular location. Dunning’s theory, the eclectic paradigm, combines the arguments of internalization theory with the notion of location-specific advantages to suggest that combining location-specific assets or resource endowments and the firm’s own unique capabilities often requires the firm to establish production facilities where the foreign assets or resource endowments are  located. 101. (p. 254-256) Discuss the various political ideologies and their impact on foreign direct investment. The radical view writers argue that the multinational enterprise (MNE) is an instrument of imperialist domination. The free market view argues that international production should be distributed among countries according to the theory of comparative advantage. The pragmatic nationalist view is that FDI has both benefits and costs. The radical view has a dogmatic radical stance that is hostile to all inward FDI The free market view is at the other extreme and based on noninterventionist principle of free market economics. Between these two extremes is an approach called pragmatic nationalism. 102. (p. 257-262) Discuss the benefits and costs of FDI from the perspective of a host country and from the perspective of the home country. The main benefits of inward FDI for a host country arise from resource-transfer effects, employment effects, balance-of-payments effects and effects on competition and economic growth. Three costs of FDI concern host countries. They arise from possible adverse effects on competition within the host nation, adverse effects on the balance of payments and the perceived loss of national sovereignty and autonomy. The benefits of FDI to the home (source) country arise from three sources. First, the home country’s balance of payments benefits from the inward flow of foreign earnings. Second, benefits to the home country from outward FDI arise from employment effects. Third, benefits arise when the home-country MNE learns valuable skills from its exposure to foreign markets that can subsequently be transferred back to the home country. The most important cost/concern of FDI for the home country centers on the balance-of-payments and employment effects of outward FDI. 103. (p. 266-267) Describe the situations when licensing is not a good option for a firm. Licensing is not a good option in three situations. First, licensing is hazardous in high-tech industries where protecting firm-specific expertise is very important. Second, licensing is not attractive in global oligopolies where tight control is necessary so that firms have the ability to launch coordinated attacks against global competitors. Finally, in industries where intense cost pressures require that MNEs maintain tight control over foreign operations, licensing is not the best option. 104. (p. 267) What is franchising? What type of firm uses franchising as a means of expanding into foreign markets? Franchising is essentially the service-industry version of licensing. With franchising, the firm licenses its brand name to a foreign firm in return for a percentage of the franchisee’s profits. The franchising contract specifies the conditions that the franchisee must fulfill if it is to use the franchisor’s brand name. Franchise agreements usually have a longer time commitment than do licensing arrangements. Franchising is common in the fast food industry because fast food cannot be exported, because franchising minimizes the costs and risks associated with opening a foreign market, because brand names are relatively easy to protect, because there is no compelling reason for a firm to have tight control over franchisees and because fast food know-how is easily transferred. 105. (p. 267) How useful are the product life cycle theory and Knickerbocker’s theory of horizontal FDI to business? The product life cycle theory and Knickerbocker’s theory of horizontal FDI to business are not particularly useful from a business perspective because the theories are descriptive rather than analytical. The theories are useful for explaining historical patterns of FDI, but they do a poor job of identifying the factors that influence the relative probability of FDI, licensing and exporting.