Sustainability And Business Research Paper Example | Topics and Well Written Essays - 750 words

Sustainability And Business - Research Paper Example The article to be discussed is a 2010 study by B. E. Wright and S. K. Pandey entitled Transformational Leadership in the Public Sector: Does Structure Matter and has an â€Å"Organizational Communication† classification. Article Critique: Transformational Leadership in the Public Sector: Does Structure Matter? By Bradley E. Wright and Sanjay K Pandey Introduction The study by Wright and Pandey was intended to determine why there was a discrepancy between theoretical models on mainstream leadership which showed that transformational leaders are â€Å"expected to be both less common and less effective in public sector organizations† (p. 75) than in the private sector because of strong â€Å"bureaucratic control mechanisms† which apparently leave the public sector without a need for strong leadership. Wright and Pandey noted that this theory has not been supported by meta analyses which had found that â€Å"transformational leadership is as common and effective in public organizations† (2010, p. 75). The authors had considered a number of reasons why there would be a difference between theory and the empirical work on the topic. One of those reasons for example was that perhaps government organizations themselves were not as bureaucratic as theorists presumed although Wright and Pandey (2010) were not convinced on this idea. They decided to test the organizational and contextual influences on the emergence and effectiveness of transformational leadership. The study itself was to test how the culture of the public sector organizations might â€Å"hinder the emergence of transformational leadership† (Wright & Pandey, 2010, p.76). The background to the hypothesis The author’s provided an extensive literature review that covered concepts such as what transformational leadership was; the attributes transformational leaders would have and how the behavior of these leaders impacted employee performance and satisfaction, in govern ment agencies and non-profits. The second part of the review was written to support the author’s idea that there were not a lot of studies that considered organizational structure and its impact on leadership. This led them to test their hypothesis that: â€Å"The more hierarchical an organization's authority structure, the lower the reported practice of transformational leadership behaviors. [H.sub.2] The weaker the lateral/upward communication in an organization, the lower the reported practice of transformational leadership behaviors. [H.sub.3a,b] The greater organizational formalization (measured as [3a] procurement red tape and [3b] human resource red tape), the lower the reported practice of transformational leadership behaviors† [H.sub.4] The more an organization's structure impedes the establishment of extrinsic reward-performance contingencies (here measured as human resource red tape), the higher the reported practice of transformational leadership behaviors. [H.sub.5] The use of organizational performance measures will decrease the reported transformational leadership behaviors† (Wright & Pandey, 2010, p.79). The Method The data was collected as part of the Phase 4 of the national Administrative Studies Project (NASP-IV) and comprised of a survey given to senior managers who had local government jurisdictions with populations over 50,000. This included general managers, as well as functional managers in a variety of departments including Finance, Public Works and Economic Development. International City/County Management Association (ICMA) compiled a list according to study criteria set by the authors. Then because email addresses could not be supplied because of

Cultural Diversity and Economic Performance in Belgium Essay - 1

Cultural Diversity and Economic Performance in Belgium - Essay Example The projections for the year were indicative that the year 2013 would be the possible year of recovery for the region. This recovery would have a significant effect on the development of new jobs and reduction of inflation. However, the projections made for the year also indicates that there will be a new form of uncertainty that would affect the Belgian economy. The GDP of the area would grow in a significant manner despite the fall in the rate of development that was manifested in the Eurozone where the gross domestic product for the Eurozone went down by 0.2 percent. Despite the performance of the peripheral economies such as Nederlands and France that are the main trading partners for Belgium the economy in 2013 indicated a significant inclination for growth (Bellini and Ottaviano et al., 2013, pp. 121--141). In the normal circumstances, the economy of the employment sector takes a lot of time so that it can recover. The cyclical downturn that manifested itself in the middle of 2012 and the gloomy outlook on the economy in 2013 has the implication on the employment sector being a slow growth in the rate of employment (Bellini and Ottaviano et al., 2013, pp. 121--141). The downturn of 2012 was a major blow to the prospects of employment. This downturn meant that the people could not have the right employment since the economy is still struggling. The slow growth in the economy manifested in the areas will not be significant to cover the growth of the employment needs of the people. This means that the rate of real unemployment will remain in the regions that are has been playing at. In fact, the unemployment rates may go higher with the slow development of the economy and the general fall in the levels of production in the major trading partners.

The Dividend Policy at Linear Technology

The Dividend Policy at Linear Technology Linear Technoloy(LT) is a company founded in 1981 by Robert Swanson. Its area of actvity is development, production and marketing for semiconductors used in various electronic applications used by the communication industry to the automotive industry. It mainly focuses on the analog segment within the integrated circuits industry and, by market capitalization, it is the seventh-largest company listed on the Philadelphia Stock Exchange Semiconductor Index (SOX). Regarding its customer portfolio, the communication industry accounted for 33% of Linears sales, computers 27%, automotive 6% and the rest of 34% was divided by the rest of the industries. Linear Technologys Payout Policy Linears payout policy is comprised out of two elements: dividend payout and stock repurchase. In general companies decide to payout dividends after transitioning from a high growth stage to mature and stable stage. (Grullon Michaely, 2004). Linear started paying dividends in 1992. This decision was based on good expectations regarding the analog circuits market and the fact that Linear had a top position in the industry. Also the CFO of the company points out that, since the IPO, the company had positive cash flows. Thus paying out dividends would signal a strong position in a risky market and the transition to a more mature state of the company. As observed by some investors the technological companies had been just reaching that stage when paying out dividends was possible. The initial price for a share was set at US$0.05. This amounted for 15% of the total earnings of the company in the fiscal year of 1994. The relative low level was based on two principles. The first principle w as that dividend payout demands a certain respect from investors so in order to send the right signal into the market and attract new investors, the company had to pay dividends. This in turn would mean a thoughtful payout ratio that the company could sustain over time thus leading to the second principle. This states that a low level for dividends would better suit the company in the event of less than expected earnings. In this case the company would not have to cut down or even stop paying dividends. Thus a bad signal to the investors is avoided. Since 1992, the payout ratio has been growing steadily, getting close to 25% in 2003. Considering that 2002 meant a decline in sales and earnings, the company board and its management is debating on whether to increase the ratio or to keep it into accordance with company earnings. The CFO of Linear is confident that the business prospects and the cost structure can support an increase and he expects that this increase will send a good si gnal to investors. From the repurchase point of view, as stated by Paul Coghlan, CFO of Linear, one primary reason that we buy back the stock is to offset the exercise of employee stock options. Another reason was also the market conditions. The low interest rates offered by Linears high-grade security investments encouraged the company to use the cash-at-hand to buy back shares thus making a better use of the cash balance. A third reason was that, despite a large cash balance the company did not have any acquisition plans. The company repurchased shares sporadically between 1993 and 2001, and quarterly since then but again without any obvious pattern. Considering both elements, the companys mixed payout policy attends to all shareholder requirements by increasing the level of dividends quarterly and by managing in a conservative way a large cash balance. What are Linears financing needs? LTs income statement and revenue growth seems to be relatively stable over the past 11 years (1992-2002) with the exception of the boom during the peak(2000-2001) of the IT bubble and the bust after the burst of this bubble(2002). However even in economic downfall LT still managed to obtain a positive net income and net cash flow. This is due to LTs limited costs set up and relatively low financing needs. It is stated that in the semiconductor industry, research development investments, capital investment in new fabrication facilities, and retaining top engineers are of crucial importance. LT focuses on analog semiconductors and as such has stable and modest research and development costs. The analog fabrication facilities investments are more durable and account to a relative investment of approximately 20million per year. Finally LT uses a bonus structure for its executive compensation, keeping salary expenses lower when sales revenues decline. Additionally LT expresses little des ire in excessive investments, cash is handled very conservative with investment strategy in predominantly short-term debt securities, however LT is looking at potential business opportunities in the Asian markets, , if LT was to proceed with this plan this would increase its financing needs substantially. All in all resulting in a relatively low financing need for LT with regards to internal factors. With regards to external factors LT could endure financing needs resulting from market risks and the unclear effect of the Iraq war on the American economy, this results in the need for LT to hold a higher cash reserve. We will address this issue more in depth in the subsequent part. Should Linear return cash to its shareholders? Some shareholders have recently expressed the desire for LT to return its cash, however this desire is not necessarily shared by all shareholders. Theoretically returning Cash to the shareholders can reduce agency conflicts because it reduces cash in hands of the firm which can be invested in bad projects. It also reduces the costs of underinvestment if LT decides not to invest this cash it holds. The agency conflict seems relatively small considering LTs investment behavior and thus would be of relatively little importance when considering if LT should return cash to its shareholders. However asymmetric information exists and shareholders are unaware whether or not LT will remand its current investment policy. Additionally returning cash to the shareholders can give positive signals to the market about the future prospects of the firm. This could be of great potential importance considering the industry in which LT operates and the recent economic downturn this industry experienced. Conversely, if LT was to hold on to the cash this would preserve their liquidity levels which would both allow the firm to invest in positive NPV projects without entering the capital market, and additionally create a cushion against potential economic or financial distress. Regarding the financial cushion aspect of holding cash, if LT returns cash to its shareholders it should not return the full 1,5billion, but considering the current economic situation should preserve at least $200mto cover unexpected expenses. In the past LT has not shown great interest in investing other than in short-term securities, however, LT has been looking for business opportunities in the Asian market, holding cash in the firm increases the firms potential to respond to such an opportunity when it comes along. Bearing in mind LTs sales earnings, cash flows, and investment practices, it becomes evident that current dividend payments are not at the level they could potentially be. As observed by Janus Ca pital, the largest single holder of LT stock, current dividend payments are merely a token relative to the level of cash LT holds, therefore it would be possible for LT to increase its current dividend level. The problem with dividend payments its inflexibility, once LT decides to increase its dividend payments it will be hard for them to return this to its current level at a later stage. Currently LTs dividend payments is at a competitive level with respect to its peers on the Philadelphia Stock Exchange Semiconductor Index (SOX) and other technology companies. As stated in the case even a penny increase in dividend level will move the payout ratio to a level above most other technology levels. This brings us to the question why a company would decide to payout dividends. Commonly corporations at a mature stage without many growth opportunities and a stable positive cash flow. As discussed earlier LT can be identified as a relatively stable and mature company with stable costs and relatively stable growth. However as a technology company, LT is sensitive to the market, which has become evident in its 2000-2003 results. During the IT bubble LT performed exceptionally well, but after the burst sales dropped with 47% relative to the year prior. However, looking at the figures of 2003 we can see that LTs sales recover quite quickly, ending 2003 with approximately $602m in sales, which is in line with 5 year sale average ($636m). It could therefore both be argued that growth is not stable for LT and thus dividend payments are relatively risky for LT with regards to market reaction when dividend payments are reduced. However, growth has always (with the exception of 2002) been positive and LT could thus be deemed relatively safe. (Graham et al, 2005) Usually repurchases are used when the firm holds an excess in cash e.g. to reduce agency conflicts and underinvestment. Dividend increases relate more to an excess in free cash flow. In the case of LT, the firm holds a n excess in cash but due to economic situation over the past two years does not have a relative high free cash flow. In this respect LT is looking to reduce excess cash, thus cash returns via repurchase would be more in line with firm performance. When considering how to return cash to the shareholder tax matters but in a second-order manner (Brav et al (2005)). This is due to the fact that value return to shareholders is financed after tax payments and thus the manner of returning value to shareholders with respect to taxes affects predominantly shareholders. Shareholders, under current tax system, pay relatively more tax on dividend than on repurchases. However, the tax argument is only applicable for those shareholders who are indifferent towards holding or selling their share, long term shareholders would prefer dividend payments regardless of tax difference. If new tax proposal would pass there would be no tax difference with capital gain for shareholders thus with regard to ta xes they would most likely prefer dividend payments. However repurchases reduce the number of outstanding shares and thus increase EPS and share prices. Even though share prices will increase with dividend increases also, when dividend payments are increased and the firm at a later stage, cannot pay these dividends or reduces them this results in a decrease of share price, where a non-continuum of repurchasing practices has no effect on later share prices. Additionally if the firm does not want to reduce or cancel dividend payments for this reason they might decide to split the stock, increasing the number of outstanding shares and thus decreasing the EPS. Therefore both shareholders and firms should only prefer an increase in dividend payments over repurchases when cash flows and growth rates are stable for the firm with little or no expected future change, even when tax rates are set to be equal. With regard to the option compensation for executives, the repurchases would induce m ore value than would dividend increase, which should be considered in an industry where there is talent competition. Concluding, LT should return some of its cash to its shareholder, however, not all cash should be returned, and preferably not through an increase of common dividend payouts. This will be further discussed in section 5 of this report. What are the tax consequences of keeping cash inside the firm? In the event that LT would decide to keep the cash within the company instead of paying out to its shareholders LT will endure certain costs with respect to taxes. The benefit of keeping the cash in the company means that LT will have the liquidity needed to enter in NPV projects when opportunities arise without needing to access the capital market for costly funding. However, with respect to taxes, not entering the capital market for funding can be deemed inefficient due to the tax deductibility of debt and interest payments on levering. At a 30% corporate tax rate the marginal value of a dollar is thus lower for a firm not using debt financing (Martà ­nez-Sola et al (2009)). This can be identified as an opportunity costs of keeping cash within the company instead of returning this to its shareholders. Being identified as a cost of returning cash to the shareholder and a benefit of keeping the cash in the company, liquidity allows LT to invest and thus potentially earn interest on the cash. LT maintains a conservative investment strategy and predominantly invests in short-term debt securities. This, as identified in the case, in recent years resulted in a low interest return to LT, encouraging LT to return more cash to its shareholders. However, considering that only capital gains are taxed, this at any positive interest rate assumed the gain achieved by interest payment will be higher than the reduction in tax rates. Taxes can only be effectively reduced by increasing the payments to employees or research development with the use of sales revenue (thus reducing free cash flow), not existing cash, or by the use of debt financing. If Linear were to pay out its entire cash balance as a special dividend, what would be the effect on value? One significant target of the dividend distribution is to show investors that Linear has a good position on the market, and to buy shares from Linear Technology is not comparable with the risk which is usually associated with the purchase of shares from technology companies. With a dividend Linear Technology wants to reach investors that have income goals besides of growth goals. In case of a dividend distribution demand for shares will rise. If investors know that a dividend from a certain amount will be paid, the share price increases by the dividend that will be paid. In case of a share price of $30,87 and a dividend of $5,01 the new share price will rise to $35,88. As the dividend will be paid at a certain point of time investors are ready to pay the amount of the dividend additionally to the share price of $30,87, as the dividend will be paid out. Depending on the time until the dividend is paid not the whole amount of dividend is added to the share price. If there is still a certain period of time until the dividend will be paid, only the net present value of the dividend, which is announced will be added to the share price. It also can be said that the closer the payment of the dividend gets, the more the amount of the total dividend payment is added to the normal share price. That also means that consequently the market value of equity also will rise. At the day ex-dividend the share price will drop below the level of the pre-announcement day, as the dividend as driver of the rising demand had been paid. The additional value of $5,01 that were relied to the dividend is not part of the share value any more. The dividend, as part of the equity, is paid to the shareholder. The EBT will go down now as interest income decreases. Because of the decreasing interest income also taxes are declining. As the reduction on interest income is higher this does not play such a decisive role. Special Dividend Repurchase Nr of outstanding shares 312,4 312,4 Share value 30,87 30,87 Market Value 9643,788 9643,788 Special Dividend Paid 5,01 New Shareprice 1 35,88 Nr of Shares repurchased 50,70 New outstanding shares 261,70 Loss of interest income 46,96 EBT 273,44 Earnings 189,49 Earnings Per share $ 0,72 Figure Effects of repurchase or special dividend What if Linear repurchases shares instead?. The repurchase of shares is another option besides of a dividend distribution. Advantages of repurchasing shares is the reduction of systematic risk and cost of capital. Information and rumours about repurchase of shares will increase the demand before the repurchase date and therefore makes the repurchase more expensive. Usually a premium of one until ten per cent has to be calculated. To calculate the number of new shares that can be purchased the cash balance has to be divided by the new share price. To calculate the new market value the new share price with the total number of shares has to be multiplied. Therefore also the earnings per share would increase. On the other hand it should be taken in mind that normally the increase in share price is not from a long-term perspective. Primarily firms in low concentrated industries can benefit from an increase of the share price from a long-term perspective and can outperform the market. In more concentrated industries there will be no statistically significant change. In general the repurchase of shares has a negative effect on the share prices of competitors. Therefore often competitors mimic the behaviour and also do a repurchase of shares. (Massa, Rehman, Vermaelen, 2007) In the study of Grullon and Michaely it is shown that within a 6-year period the repurchasing firm benefits from an essential reduction in systematic risk in comparison to non-repurchasing firms. A negative effect of repurchasing are decreasing investment opportunities. This does not play a decisive role in this case, as in both options there would be a reduction of cash flow. Also in case of stock options for employees the repurchase of shares is an efficient possibility to control the market. To repurchase shares at the point of time when employees sell their rights of stock options makes it neutral from a trading perspective. As Mr. Coghlan stated that Linear Technology wants to offset the exercise of employees stock options with the repurchase of stocks. From the company and management side flexibility is the main advantage for repurchasing in comparison to dividend distribution (Brav, Graham, Harvey, Michaely, 2005). The flexibility can be used to increase repurchases when stock prices are low. Also the higher tax burden in case of dividends can be taken as an argument for repurchasing instead of paying dividends, although in the study it is shown that taxes do not play a primary role and that repurchasing does not change the investors clientele. This point which is also taken as an argument for paying out a dividend by Linear Technology can therefore be de-emphasised. Why do firms pay dividends? When a firm generates free cash flows it has to decide what to do with them. It can reinvest in positive NPV projects, if they are present, and increase the value of the firm. This practice is very common for young firms that pursue rapid growth and sometimes invest 100 per cent of their cash in this way. More mature firms, that operate in more mature market, however, do not always have these opportunities and hold more cash than there are potential positive NPV-projects to exploit. Such a firm with excess cash can either retain it in reserves or pay it out to shareholders. Two payout choices are: repurchases and dividends. When firms pay-out they have several reasons for it. Although not entirely proven, dividends are a possible tool to signal good news to the market and to prevent managers from exploiting free cash flows for their own benefits. The most important reason why dividends are paid, however, is the firms dividend history. Furthermore some firms issue dividends to get acc ess to a new set of investors. Each of these reasons will be discussed next. With asymmetric information in the market, meaning that mangers hold better information regarding future prospects of the firm than investors, payout decisions may signal information. The common practice for dividend paying firms is to smooth dividends and only cut them under extreme cases, which are addressed later, will cause the market to also believe the company is not able to rebound its earnings in the near term. It also implies that once the company increases dividends it signals that the company is able to afford the higher dividend with increased earnings (Berk DeMarzo, 2007). Although most managers no longer see payout policy as a tool to separate its company from competitors, it could be a reason for some to initiate dividends (Brav, Graham, Campbell, Harvey, and Michely, 2005). Especially when dividends are already part of historical business practice in these firms, and as management is very reluctant to cut dividends they will keep them in place. Another reason for man agers to pay out dividends is its ability to prevent agency conflicts as the otherwise free cash flow is no longer in the hands of management. Most managers, however, do not view payout policy as a means to self-imposed discipline. Access to new set of investors is also a reason why management will issue dividends (CASE). As different clienteles hold different preferences in income and in taxes to be paid, some have a stronger preference for dividends than others (Berk DeMarzo, 2007). To attract for instance mutual funds and European investors companies have more success when they issue dividends. Dividends are also more likely to attract retail investors as they prefer dividends over repurchases (Brav, Graham, Campbell, Harvey, and Michely, 2005). Why has the rate of dividend initiations changed over time? There has been a general trend away from dividends from the late 1970s through the rest of the twentieth century. In 1978, over 66 percent of the AMEX, NYSE, and NASDAQ firms paid a regular dividend. By 1999, only 21 percent were dividend payers. Below several reasons are listed for this trend, including: changing firm characteristics, more stock option compensation, US tax law, and dividends inflexibility. Besides, in the late 1950s the starting point for most payout decisions was the payout ratio (Lintner, 1956), while recently this is no longer a common practice for most firms. Firms that were going public in the 1980s and 1990s were early in their lifecycle, with considerable more growth opportunities than current profits (CASE). There tend to be fewer firms in this lifecycle that issue dividends (Graham et al, 2004). In a large part, technology firms, as Linear Technology, were driving this trend. Many of these firms were just about to reach the stage at which they were able to pay dividends, the stage where they began to earn regular and more predictable cash flows (CASE). But even large technology firms, that held stable cash flows, tended to restrain from dividends. One reason for this was the heavy use of stock option compensation. With the majority of their pay in options, managers are not likely to pay dividends as it does not benefit them that much. Furthermore when dividends are issued instead of repurchases, the outstanding amount of stock is increased once options are exercised, resulting in a decrease in the earnings per share (CASE). Although US tax law changed in 2003, making it more attractive to issue dividends, they still are at a tax disadvantage compared to capital gains that can be deferred. Until 2003 issuing dividends was thus even at an even bigger disadvantage to other forms of pay-out (Brav, Graham, Campbell, Harvey, and Michely, 2005). This, however, does not explain the downward trend in dividends, but it does explain why dividend s have never risen in popularity amongst managers. Unlike repurchases, managers are very reluctant to cut dividends and tend to smooth dividends. Among others, they are in most cases even more willing to forgo positive NPV projects, raise external funds, sell assets, or lay off sincere amounts of employees before cutting dividends. The asymmetry between dividend increases and decreases probably leads firms to restrain from issuing before having to resolve to the previously described in general unfavorable practices. Today managers are not so strict on payout ratios anymore. Furthermore, the speed of adjustment, by correcting dividends to their target, is not as high as it once was. This could be a result of the declined benefits of being close to the target or the higher cost of adjustment (Brav, Graham, Campbell, Harvey, and Michely, 2005). What should Paul Coghlan recommend to the board? All in all, if LT pursues to maximize shareholder value, it would not be advisable to increase dividends. Considering the current economic turmoil and the inflexible nature of dividend payments, dividend payments become undesirable. Additionally investing in new business opportunities would be beneficial for both the firm and the current shareholders. Although LT has not identified any positive NPV projects yet, there are opportunities in Asia, and therefore it would be wise for LT to return only part of its cash to the shareholders. They can best do this via a more flexible way such as special dividend or repurchases. Holding cash in the firm allows for a better credit rating when entering the capital market, when LT encounters a positive NPV project it wishes to invest in it can finance it partly by cash held and partly by debt financing. There is no ideal set up for cash returns but deriving from the advice of Rollins given in the case, it could be beneficial for LT to hold 1/4 of its cash as a cushion for economic turmoil, invest 1/4 of its cash in short-term securities to generate interest, hold 1/4 to be used in case of encountering good business opportunities, and return 1/4 to its shareholders via repurchases or a special dividend. This would still result in a $375m return for its shareholders.

The long and the short and the tall :: English Literature

The long and the short and the tall In 1942, a small British platoon was positioned in the jungle trying to assess the strength of the Japanese invasion. They were 20 miles away from the British frontlines and 15 miles away from base camp. They rest for a while in a deserted hut. Their radio has a flat battery and they are having trouble getting in touch with their base camp. The platoon is led by Sergeant Mitchem, who is in control of 6 ordinary men; hence the title from Britain; Bamforth; a Cockney, Whitaker; Tynesider, Macleish; a Scot, Evan; Welsh, Smith (Smudge) and Johnstone. All had left their jobs back in Britain to fight in the war. All had never been faced with killing a man. A few of the soldiers are family men, leaving their wife, children and friends back in their home towns. They are all from Britain and as they spend time together they find out and understand about each person's personality more. Bamforth: When Bamforth first sees the Japanese soldier, he is prepared to shoot him: 'Bamforth suddenly tenses and raises his rifle. This is followed by: 'Bamforth slowly raises his rifle and takes careful aim. Mitchem swings round and knocks the rifle out of position.' "I had him right between the cheeks! I couldn't miss! He's on his tod!" Bamforth was obviously prepared to kill the lone Japanese soldier and was quite frustrated when his chance is taken from him. He would show this by gritting his teeth or cursing under his breath. Later on when the Japanese soldier enters the hut and is grabbed by Johnstone, and Evans, Smith and Macleish all refuse to kill the soldier, but Bamforth is more than happy to 'Knock him off'. He would be speaking in an aggressive tone of voice. On stage he would be ruthless, grabbing the bayonet, and with a tremendous amount of strength, he would thrust the bayonet towards the prisoner. "Here, give me a hold. It's only the same as carving up a pig. Hold him still" Had Mitchem not intervened then Bamforth would have killed the soldier. Mitchem did so to keep him for any important information which may be needed at base camp. The Japanese soldier would be petrified at this point, being alone and unarmed. Yet Bamforth still persisted in scaring the soldier: "Boo" He also waved a bayonet in front of the prisoners face. Then he decided to mimic the prisoner by imitating a crude Japanese accent: "Flingers on Blonce" and "Tojo" He also used humiliating remarks such as "Short arse". His tone of voice would be quite sarcastic, as if he was talking to a

Genetically modified organism

Good afternoon Ladles and Gentlemen. Today, the topic for our debate is on whether â€Å"the benefits of transgenic species outweigh the ethical considerations. † We, the negative team, believe that this statement is false. The first affirmative speaker has tried to tell you that transgenic plant species are a revolutionary new way to produce crops with dramatically Increasing yields and as a result, this will Increase the farmlands' productivity. However, this Is wrong.In fact, as evidence suggests, the introduction of transgenic crops are doing very little to increase overall crop yields. The second affirmative speaker spoke to you on how transgenic animals provides a shortcut to the development of animals that have many desired traits and its products can be benefits of mankind. Examples Include animals such as transgenic pigs enriched with omega-3 fatty acids and cows that produce better milk. In our defense, animals do have their own rights.The creation of transgenic anim als is morally wrong and the long-term effect on them and their consumers are questionable. Finally, the third and final speaker from the affirmative team made a point on how rearranges species will herald a new era of food production, Improving animal food quality and productivity. They may not be natural, but not everything natural Is good for us and not everything unnatural is bad for us. She argued that genetically modified foods have been on the market since 1996, we would know by now if they were an immediate health threat.However, this is wrong, Just because you don't know of a problem, who is there to say that it doesn't exist? Most transgenic products are still yet to be tested for safety and it may be most of these that are ending up In our grocery carts without us even knowing. From this, we can also see that more and more possible health risks associated with transgenic species are starting to show. First let us examine one of our case studies. The transgenic plant MOON 810 corn. This is a genetically modified crop developed by an American agricultural biotechnology corporation Monsanto.Bacillus Thirstiness, a bacterium which produces the BET toxin poisonous to insects, Is Inserted as a gene Into the DNA of MOON 81 0 corns. This plant has been purposely modified to combat crop loss due to Insects and Is now rowan on a large scale in USA. Despite it having been claimed that the insecticide will cause no harm to human consumers, However there is compelling evidence that shows the rates of chronic diseases have been increasing drastically since transgenic species products were introduced to public in USA.The chart on this slide show increase in Inflammation rate, such as chronic constipation, gastrointestinal reflux, In April 2009, the Federal Office of Consumer Protection and Food Safety of the German government suspended the approval and banned the cultivation of any ore MAMMON maize. It also got banned in other countries around the world including Austria, Greece and France. Since July 12th its cultivation has been banned in Italy, in reaction to a scientific report sent out by the Italian Agricultural Research Council.Another example of a transgenic species is cows being treated with a genetically engineered form of Bovine assimilation, also known as BIG. BIG is a peptide hormone produced by cows that is shown to have kept their metabolic processes regulated, increased their milk yield and beef growth. Yet, while this is all happening, his was also slowly killing the cow. In 1937, the administration of BIG was shown to be increasing the milk yield in lactating cows. Until the sass, there was a very limited use of the compound in agriculture and during this time also, the knowledge of the structure and function of the hormone increased.Later, the gene had been separated, purified and was now being applied to cow through genetic engineering. Since then, it has been immersed in controversy and parts of the concerns were in rega rds to the potential effects this has on the animals' health. A 1991 report by Rural Vermont revealed that BIG cows were suffering from serious health problems, including an alarming rise in the number of deformed calves and in mastitis, a painful bacterial infection of the udder that causes inflammation.Milk taken from these cows also now contained higher levels of GIF-I (Insulin Growth Factor-I). Although we, humans, naturally have GIF-I, elevated levels of it have been linked to the diagnosis of colon and breast cancer. Although there has been no direct connection made as yet between the two, some scientists have expressed concern ever the possibility of this relationship. Our first speaker spoke to you about how transgenic developed plants contains genes that have been artificially introduced into the plant's genetic makeup through several biotechnology techniques.It is highly questionable if Monsanto did, in fact, deliver the crops as they had claimed according to Doug Guarani- grandfather's book â€Å"Failure to yield†. After more than 20 years of research and 13 years of commercialism's in the United States, it can be concluded that transgenic species crops have done little o increase overall crop yields. A report by researchers from the University of Wisconsin also suggest to us that transgenic developed plants have still a â€Å"long way from generating higher crop yields with fewer inputs. Our first speaker also spoke that one of the major factors that led to an estimated 125,000 cotton farmers taking their own life was that of transgenic cotton failing to yield. Our second speaker spoke to you about the ethical issues of animal rights and any value they have to humans and a right to be free of human use, cruelty, confinement and use. She also stated that biotechnology could be bad for animals with them possibly suffering from painful side effects.These include animals such as the broiler chicken, which are being bred to grow too fast for thei r legs to support their way, causing them discomfort. Since â€Å"The Origin of Species† by Charles Darwin was published in 1859, we are gradually starting to understand life better and better. His theory of evolution by natural selection is one of the best-substantiated theories in the history of science, having been supported by evidence from a wide variety of scientific disciplines. Since then, many scientists have contributed to the discovery and understanding of the structure of DNA.The development of powerful laboratory techniques, most of which came in after 1970, have enabled us to study and manipulate genes that have the potential to alter the path of evolution. While we celebrate our achievements on the advancement in scientific understanding and technology, we should ask our selves if we should manipulate the genes of species Just because it can be done. So Ladies and Gentlemen, in conclusion, we believe the ethical considerations outweigh the benefits of transgeni c species especially in a commercial or massive scale to produce food. Genetically modified organism Good afternoon Ladles and Gentlemen. Today, the topic for our debate is on whether â€Å"the benefits of transgenic species outweigh the ethical considerations. † We, the negative team, believe that this statement is false. The first affirmative speaker has tried to tell you that transgenic plant species are a revolutionary new way to produce crops with dramatically Increasing yields and as a result, this will Increase the farmlands' productivity. However, this Is wrong.In fact, as evidence suggests, the introduction of transgenic crops are doing very little to increase overall crop yields. The second affirmative speaker spoke to you on how transgenic animals provides a shortcut to the development of animals that have many desired traits and its products can be benefits of mankind. Examples Include animals such as transgenic pigs enriched with omega-3 fatty acids and cows that produce better milk. In our defense, animals do have their own rights.The creation of transgenic anim als is morally wrong and the long-term effect on them and their consumers are questionable. Finally, the third and final speaker from the affirmative team made a point on how rearranges species will herald a new era of food production, Improving animal food quality and productivity. They may not be natural, but not everything natural Is good for us and not everything unnatural is bad for us. She argued that genetically modified foods have been on the market since 1996, we would know by now if they were an immediate health threat.However, this is wrong, Just because you don't know of a problem, who is there to say that it doesn't exist? Most transgenic products are still yet to be tested for safety and it may be most of these that are ending up In our grocery carts without us even knowing. From this, we can also see that more and more possible health risks associated with transgenic species are starting to show. First let us examine one of our case studies. The transgenic plant MOON 810 corn. This is a genetically modified crop developed by an American agricultural biotechnology corporation Monsanto.Bacillus Thirstiness, a bacterium which produces the BET toxin poisonous to insects, Is Inserted as a gene Into the DNA of MOON 81 0 corns. This plant has been purposely modified to combat crop loss due to Insects and Is now rowan on a large scale in USA. Despite it having been claimed that the insecticide will cause no harm to human consumers, However there is compelling evidence that shows the rates of chronic diseases have been increasing drastically since transgenic species products were introduced to public in USA.The chart on this slide show increase in Inflammation rate, such as chronic constipation, gastrointestinal reflux, In April 2009, the Federal Office of Consumer Protection and Food Safety of the German government suspended the approval and banned the cultivation of any ore MAMMON maize. It also got banned in other countries around the world including Austria, Greece and France. Since July 12th its cultivation has been banned in Italy, in reaction to a scientific report sent out by the Italian Agricultural Research Council.Another example of a transgenic species is cows being treated with a genetically engineered form of Bovine assimilation, also known as BIG. BIG is a peptide hormone produced by cows that is shown to have kept their metabolic processes regulated, increased their milk yield and beef growth. Yet, while this is all happening, his was also slowly killing the cow. In 1937, the administration of BIG was shown to be increasing the milk yield in lactating cows. Until the sass, there was a very limited use of the compound in agriculture and during this time also, the knowledge of the structure and function of the hormone increased.Later, the gene had been separated, purified and was now being applied to cow through genetic engineering. Since then, it has been immersed in controversy and parts of the concerns were in rega rds to the potential effects this has on the animals' health. A 1991 report by Rural Vermont revealed that BIG cows were suffering from serious health problems, including an alarming rise in the number of deformed calves and in mastitis, a painful bacterial infection of the udder that causes inflammation.Milk taken from these cows also now contained higher levels of GIF-I (Insulin Growth Factor-I). Although we, humans, naturally have GIF-I, elevated levels of it have been linked to the diagnosis of colon and breast cancer. Although there has been no direct connection made as yet between the two, some scientists have expressed concern ever the possibility of this relationship. Our first speaker spoke to you about how transgenic developed plants contains genes that have been artificially introduced into the plant's genetic makeup through several biotechnology techniques.It is highly questionable if Monsanto did, in fact, deliver the crops as they had claimed according to Doug Guarani- grandfather's book â€Å"Failure to yield†. After more than 20 years of research and 13 years of commercialism's in the United States, it can be concluded that transgenic species crops have done little o increase overall crop yields. A report by researchers from the University of Wisconsin also suggest to us that transgenic developed plants have still a â€Å"long way from generating higher crop yields with fewer inputs. Our first speaker also spoke that one of the major factors that led to an estimated 125,000 cotton farmers taking their own life was that of transgenic cotton failing to yield. Our second speaker spoke to you about the ethical issues of animal rights and any value they have to humans and a right to be free of human use, cruelty, confinement and use. She also stated that biotechnology could be bad for animals with them possibly suffering from painful side effects.These include animals such as the broiler chicken, which are being bred to grow too fast for thei r legs to support their way, causing them discomfort. Since â€Å"The Origin of Species† by Charles Darwin was published in 1859, we are gradually starting to understand life better and better. His theory of evolution by natural selection is one of the best-substantiated theories in the history of science, having been supported by evidence from a wide variety of scientific disciplines. Since then, many scientists have contributed to the discovery and understanding of the structure of DNA.The development of powerful laboratory techniques, most of which came in after 1970, have enabled us to study and manipulate genes that have the potential to alter the path of evolution. While we celebrate our achievements on the advancement in scientific understanding and technology, we should ask our selves if we should manipulate the genes of species Just because it can be done. So Ladies and Gentlemen, in conclusion, we believe the ethical considerations outweigh the benefits of transgeni c species especially in a commercial or massive scale to produce food.

Skywest Case Study

SkyWest, Inc. , and the Regional Airline Industry in 2009 Strategic Profile and Case Analysis Purpose: The US regional airline industry like any industry has experienced some major pitfalls that can be attributed to the current economic global downturn. As a result, major stakeholders in the industry are looking for better strategies to cope.Among the pressing challenges are; the increasing and fluctuating cost of fueling the jets, the prohibitive costs of acquiring funds to purchase new jets, the intense competition among the major players, the dwindling market of business and leisure travelers, regulations that have increased costs, and the effects of September 11, 2001 terror attacks which has brought enhanced security which for the airline industry means long checks and overall dissatisfaction in customer service.Although it looks like the sky is falling for the airline industry, the gleam of hope that regionals like SkyWest are bringing to the complex airline business is showing a slow but hopeful recovery for the airline industry. This case analysis will first detail the internal workings of the regional airline industry and will specifically address SkyWest, Inc. , with regards to its strategies including the challenges it faces and the core competencies it has in its operations. This analysis will also focus on the product SkyWest, Inc. ells and the challenges, strengths, weakness, opportunities and threats (including financial) it faces in the regional airline industry and will recommend strategies that will strengthen the brand of the company. Industry analysis: Regional carriers like SkyWest airlines provide transportation to and from small communities through large airports where the major airlines operate, which in the industry lingo is called a regional feed. They also help to increase frequency of service in mainline markets during times of day of the week when demand does not call for use of large aircraft.The service that regionals provide is a s a result of partnerships with the major airlines that are usually contractual. This partnership is a symbiotic relationship that caters to the needs of both segments. Aircraft used by regionals include turboprops and jets that are usually owned by the regionals but carry the major airline’s flag. Regionals also own and operate their own brands that mostly cater to small communities; the term commuter airline is usually used when they perform this role.In the past decade, US Regional airlines enjoyed robust growth and financial returns over the past several years when major’s or network partners reduced capacity and outsourced flying due to financial trouble. SkyWest, Inc. , is a leader in the regional arena and this case will be based on that premise. SkyWest Strategy: Strategy according to the textbook is â€Å"doing what competitors don’t do or, even better, doing what they can’t do†. (Page 9). SkyWest is focusing on a low-cost provider strateg y in the regional airline industry.By focusing on a narrow market niche, SkyWest is building a competitive edge by doing a better job than its rivals. Another strategy it employs is growth; the company has realized an internal growth through the expansion of its partnerships, geographic growth and the pursuit of new partnerships. But most importantly the reasons why SkyWest is successful is the efficiency it employs by the way: †¢It manages its fleet, thus less accidents and downtimes. †¢It empowers its employees better than other regionals; benefits, pay, continuous education. †¢On time performance- by consistently being the best in on time arrivals. Most importantly is how it manages its finances. Cost control is a major company undertaking and the ability to anticipate and cut costs has made the company competitive. The company has fine-tuned its core competencies through partnerships with Delta Connection and United Express which has created growth opportunities t hrough the volume of business these two airlines brought. By having a strong, focused and forward strategy, SkyWest benefited when these two major airlines were in bankruptcy. SWOT ANALYSIS: (Strength). †¢Safety – exceeds conventional safety standards. †¢Low-cost provider Cost efficient – the company has ordered jets that will be cost efficient/fuel. †¢Market reputation – on-time arrivals and cancellations- this attribute makes it attractive for other major airlines who can benefit using SkyWest as their regional servicer. †¢Financial stability – consistent growth in operating revenues/income. †¢Implementation of Stetson Quality Suite. Weakness – First, ASA (Atlantic Southeast Airline) – the acquisition of ASA from Delta in 2005 expanded the company business, however the labor unions that represent ASA employees is a weakness that can ground the company in case of a strike.Secondly, SkyWest was ranked low on customer service; this in the airline industry is a major requirement for competition since the product is universally the same when viewed by the customer. Developing and maintaining a high level of customer service is crucial. Third, the partnerships with Delta and United are also a weakness since the two major have similar business models. The majority of the company business comes from these two and the fact that both companies had undergone bankruptcy signals SkyWest to diversify its operation.The reliance on only these two is a major weakness that has to be addressed. Delta’s decision for not paying the $25 million it owed SkyWest is a . To add on this, issues like lost baggage accounted for a terrible rating of 9. 53 reports per 1000, which was double the industry average. Also a high number of customer complaints Airline quality rating study found SkyWest near the bottom of 16 airlines for customer service. Passengers also see the small planes as less safe than the bigger and more spacious airplanes that the majors operate.The company is bounded by the â€Å"scope clause† after the ASA acquisition. OPPORTUNITIES: †¢Low cost partnerships – SkyWest currently has no partnerships with this segment of the business. Creating partnerships with low cost providers is a future opportunity that can increase revenue. †¢Increase in business travelers- in the past the majors had the bulk of these niche, however regionals can get into this market because business travelers are becoming cost conscious and are frequent users thus untapped revenues can be realized. Changing industry – the major airlines are going through tough financial times thus there is more business to be realized from their outsourcing to regionals like SkyWest. †¢Global market – the company currently has operations in Europe, Latin America and China. Other avenues in the expanding global market can be explored. THREATS: †¢Labor unions – threat from acquisitions like ASA, which is union oriented. †¢Cost of fuel – the unpredictability of the energy industry is always causing uncertainty in the airline industry. Any increase in demand (from ASIA-especially China) can cause the cost of fuel to increase. Majors’ airlines may start their own low cost providers, competition is getting stiffer. †¢Government regulations- for instance the current restrictions placed on entrants to some markets and the $262 to $577 cost of regulation to the industry. †¢The economy – if it follows the current trajectory, competition for scarce revenues will continue. †¢Shutdown of major airline hubs †¢Competitors – Republic Airways Holdings acquired Midwest and Frontier †¢Scope Clause- it would limit the size of aircraft the company operates Financial Analysis:Looking at the company finances, the outlooks looks gloom. However, the nature of the current economy has contributed largely to SkyWes t, Inc. , reduction in revenue. Lost in the numbers are factors that were beyond the company’s control including costs like acquiring ASA, and figures like the $5. 2 million lost because of the Denver International Airport closure in December 2006.. Consequently, because SkyWest depends on revenues from its major partners, the cost of fuel that the partners reported in 2009 were reported as revenue, which means the numbers were not accurate.In addition, even with the growth in revenue in 2008, a decline in reported income of $111. 4 million was reported from the previous year (2007) and a decline of $29. 8 million for the quarter ending in December 31, 2008. Of particular importance is the $18. 3 million decline that was due to â€Å"reductions in flight schedules made by the company major partners†. (page c-208). ASA (which serves the southeast region) experienced cancellations and delays due to weather and grounding of 60 aircrafts due to safety issues which further reduced revenues by $7. 6 million.A further $5 was lost due to negotiations with Delta Airlines in regard to expenses. A more revealing picture is when the operating profit margin (left over revenue after paying variable cost) is calculated. SkyWest declined from 12. 5% in 2004 to 7. 30% in 2008. In contrast, the news is not all that bad. SkyWest management predicts a promising future. The combined revenue passenger miles increased by 4. 9% in June 2009 and its overall load factor were up by 2. 3%. Recommendations: SkyWest, Inc. , has all the necessary ingredients to sustain its leadership in the regional airline business.Case and point was when its consolidated revenues were $3,114 million at the end of the year 2006, up from $1,964 million the year before. However, the strategy of growth that the company is currently on signals pitfalls that are in its future. For instance, the partnership dependence that it places on the major airlines like Delta and United makes it vulnerable. B oth majors underwent bankruptcy and relying on them for revenues is risky for the company. Delta refused to pay the $25 million owed because it knew that SkyWest would not sue them because of their business.SkyWest should acquire low cost providers or even acquire other regionals to decrease adventures like ASA (unionized, poor performance culture). In addition, it should look into code sharing ventures that are less risky because the growth pattern it is capable of pursuing will yield more revenues. Of particular importance are the rival regionals like Frontier (owned by Republic), Southwest and the Mesa Air Group. In order to be competitive, SkyWest should look for ways that the company can acquire rivals. The move to pre-empt rivals will extend the reach of the company geographically and it would discourage new entrants.In addition, the company has to improve its customer service (training frontline employees) because the cost of losing customers translates directly into lost rev enues. ASA in particular came with a terrible image and the transfer of core competencies/culture from the parent company will improve the overall outlook and brand of the company. Moreover, after the ASA acquisition, the issue of unionized employees who joined the company has to be addressed. If the option of negotiation between the company and the union ever fails, major problems can be experienced.SkyWest, Inc. should keep ASA separate because in the event of a strike, business will be affected. Finally, the issue of going global in the regional airline industry is important. SkyWest operates in Europe, China and Latin America. The opportunities in China, Mexico and Latin America are possibilities that the company should explore. However, the decision to expand can make SkyWest, Inc. , vulnerable at the home market; thus a careful well researched and strategic plan should be implemented before embarking on a global arena. by capitalizing on external opportunities and fortifying t heir internal strengths, SkyWest, Inc. , can achieve better shareholder returns and remain the leader in the regional airline industry†. (USATODAY). Works Cited Thompson, A. A. , Strickland. A. J. and Gamble, J. (2005) Crafting and Executing Strategy (18th edition), McGraw-Hill, New York, pages C-206– C-226). USA TODAY (2009). Regional airline thrive while the big boys cut back. Retrieved from http://www. usatoday. com/travel/column/grossman/2013-21-3regional-airlines_N. htm

Celsius Temperature Scale Definition

Celsius Temperature Scale Definition The Celsius temperature scale is a common System Internationale (SI) temperature scale (the official scale is Kelvin). The Celsius scale is based on a derived unit defined by assigning the temperatures of 0 °C and 100 °C to the freezing and boiling points of water, respectively, at 1 atm pressure. More precisely, the Celsius scale is defined by absolute zero and the triple point of pure water. This definition allows easy conversion between the Celsius and Kelvin temperature scales, such that absolute zero is defined to be precisely 0 K and  Ã¢Ë†â€™273.15  Ã‚ °C. The triple point of water is defined to be  273.16  K (0.01  Ã‚ °C; 32.02  Ã‚ °F). The interval between one degree Celsius and one Kelvin are exactly the same. Note the degree is not used in the Kelvin scale because it is an absolute scale. The Celsius scale is named in honor of Anders Celsius, a Swedish astronomer who devised a similar temperature scale. Before 1948, when the scale was re-named Celsius, it was known as the centigrade scale. However, the terms Celsius and centigrade dont mean precisely the same thing. A centigrade scale is one which has 100 steps, such as the degree units between freezing and boiling of water. The Celsius scale is thus an example of a centigrade scale. The Kelvin scale is another centigrade scale. Also Known As: Celsius scale, centigrade scale Common Misspellings: Celcius scale Interval Versus Ratio Temperature Scales Celsius temperatures follow a relative scale or interval system rather than an absolute scale or ratio system. Examples of ratio scales include those used to measure distance or mass. If you double the value of mass (e.g., 10 kg to 20 kg), you know the doubled quantity contains twice the amount of matter and that the change in the amount of matter from 10 to 20 kg is the same as from 50 to 60 kg. The Celsius scale does not work this way with heat energy. The difference between  10  Ã‚ °C and 20  Ã‚ °C  and that between  20  Ã‚ °C and 30  Ã‚ °C  is 10 degrees, but a  20  Ã‚ °C temperature does not have twice the heat energy of a  10  Ã‚ °C temperature. Reversing the Scale One interesting fact about the Celsius scale is that Anders Celsius original scale was set to  run in the opposite direction. Originally the scale was devised so that water boiled at 0 degrees and ice melted at 100 degrees! Jean-Pierre Christin proposed the change. Proper Format for Recording a Celsius Measurement The International Bureau of Weights and Measures (BIPM) states that a Celsius measurement should be recorded in the following manner: The number is placed before the degree symbol and unit. There should be a space between the number and the degree symbol. For example,  50.2  °C  is correct, while 50.2 °C or 50.2 °Ã‚  C are incorrect. Melting, Boiling, and Triple Point Technically, the modern Celsius scale is based on the triple point of Vienna Standard Mean Ocean Water and on absolute zero, meaning neither the melting point nor boiling point of water defines the scale. However, the difference between the formal definition and the common one is so small as to be insignificant in practical settings. There is only a 16.1 millikelvin difference between the boiling point of water, comparing the original and modern scales. To put this into perspective, moving 11 inches (28 cm) in altitude changes the boiling point of water one millikelvin.

Duke TIP ACT Score Requirements

Duke TIP ACT Score Requirements SAT / ACT Prep Online Guides and Tips Maybe you’ve read our article about Duke’s Talent Identification Program (TIP), maybe you’ve heard about it from other students, or maybe you did your own research. You've heard vague hints of "score requirements," but don't know exactly what that means- do you have to take the ACT in order to take part in TIP? How well do you have to do on the ACT in order to become a TIPster? (I refuse to believe that students who participate in TIP do not go by this name.) There are ACT (or SAT) score requirements for the Duke TIP: specifically, there are score requirements for Summer Studies programs and eStudies courses. I'm going to cover this complicated topic in exhaustive detail, explaining what the programs are, what the ACT score requirements are, and giving you some tips on how to meet these requirements. These requirements all refer to the regular ACT, not the ACT Aspire or ACT EXPLORE. Feature image credit: Ilyse Whitney/Flickr The Lay of the Land: Duke TIP Programs and Eligibility Of all the Duke TIP programs with SAT/ACT score requirements, the eStudies program has the lowest score requirements, followed by the Academy for Summer Studies, which falls in the middle, and the Center for Summer Studies, which is the most stringent when it comes to score requirements. These are not the same as the test requirements for the 7th Grade Talent Search, which you can find more about here. How do you figure out if you are eligible for Summer Studies programs or eStudies courses? TIP determines your eligibility based on your SAT or ACT scores. If you participate(d) in the 7th Grade Talent Search, you will take (or took) the SAT or ACT as part of that program (read more about this in my complete guide to the talent search). It is the score from this testing that will qualify you for Summer Studies and/or eStudies courses. Don't worry- you can always retest if your scores aren’t high enough to get you into the program(s) you want. If you’ve already taken the SAT or ACT as a 7th grader, you can still enroll in the 7th Grade Talent Search- you just have to do it using the paper application and include an official SAT/ACT score report. If you didn’t participate in the 7th Grade Talent Search, you can still participate in Summer Studies and eStudies courses using 8th-10th Grade Option, but I'll cover that in another article. For now, I’ll only be talking about the ACT score requirements for 7th and 8th-10th graders who did participate (or will be participating) in the 7th Grade Talent Search and are interested in attending Duke TIP Summer Studies and/or eStudies courses. A Word of Warning Currently, Duke TIP does not require participants to take the Writing portion of the ACT (that is, the essay). It’s always possible, though, that Duke TIP may update its ACT score requirements. But don't worry- as more information becomes available, we’ll be sure to update this article to reflect current knowledge. Duke TIP Scores: The Particulars The Talent Identification Program has its ACT requirements for all Summer Studies courses in a table here and for eStudies courses over here. To be honest, I found the tables veryconfusing, especially when it came to figuring out Center for Summer Studies eligibility. To make it easier for any one in the future trying to figure out the score requirements, I’ve separated out the requirements for what you need to get into the Academy for Summer Studies, the Center for Summer Studies, and eStudies courses and ordered them from lowest to highest score requirements. Hopefully, since all the scores will be in one blog post, rather than spread out over a website, it will be less tricky to read and understand. To find specifics of the program you care about, just scroll down. As you will see below, there’s a difference in the requirements you have to meet if you take the ACT during 7th grade, as part of the 7th Grade Talent Search, or if you take it again later on (between 8th and 10th grades). ACT Requirements: eStudies What are Duke TIP eStudies courses? According to the Duke TIP website, the eStudies program offers online courses in a variety of different subjects, open to â€Å"seventh through eleventh graders who have achieved certain qualifying scores on theACT or SAT.† Out of all the Duke TIP courses, the eStudies courses have the lowest score requirements. The specific courses you can take, however, depends on your score on particular sections of the ACT. So what eStudies courses are you eligible for? Use this handy table to find out! If you took the ACT in†¦ And scored†¦ You are eligible for... 7th grade ≠¥ 17 on Math or ≠¥ 19 on Science eStudies Math* ≠¥ 18 on English or ≠¥ 19 on Reading eStudies Verbal** 8th grade ≠¥ 20 on Math or ≠¥ 21 on Science eStudies Math ≠¥ 21 on English or Reading eStudies Verbal 9th grade ≠¥ 23 on Math or Science eStudies Math ≠¥ 23 on English or ≠¥ 24 on Reading eStudies Verbal 10th grade ≠¥ 25 on Math or Science eStudies Math ≠¥ 25 on English or ≠¥ 27 on Reading eStudies Verbal *eStudies Math subjects include Fine Arts, Mathematics, Sciences, Social Sciences, and Technology. You do not qualify for Humanities courses unless either your ACT Math or Science score also reaches the threshold.**eStudies Verbal subjects include Fine Arts, Humanities, Sciences, Social Sciences, and Technology. You do not qualify for Mathematics courses unless either your ACT English or Reading score also reaches the threshold. What If I Just Barely Don’t Make It? On their site, Duke TIP states students who narrowly missed qualifying, are too old, orwho missed the enrollment period for Duke TIP's 7th Grade Talent Search can still join Duke TIP through 8th-10th Grade Option. Unfortunately, they don't define "narrowly," so it's hard to say when you should consider 8th-10th Grade Option. What is clear is that you can always retest on your own if you don’t meet the score qualifications for eStudies courses, or if you need a higher score to attend the Academy or Center for Summer Studies. We have more information about the application process in our article about the Duke TIP 7th Grade Talent Search. ACT Score Requirement: Academy for Summer Studies The Academy for Summer Studies at Duke TIP offers high-achieving students in grades 7-10 summer classes and interaction with similarly gifted peers. How do you know if your ACT scores qualify you for the Academy for Summer Studies? You're eligible for the Duke TIP Academy for Summer Studies Math classes if you... Took the ACT in... And on Math scored between... Or on Science scored between... 7th grade 19-22 20-22 8th grade 23-24 9th grade 25-26 10th grade 27-28 You're eligible for the Duke TIP Academy for Summer Studies Verbal classes if you... Took the ACT in... And on English scored between... Or on Reading scored between... 7th grade 20-22 20-23 8th grade 23-24 24-25 9th grade 25-27 26-29 10th grade 28-30 30-31 Note: while you can take Academy classes in all subject areas if you have an eligible ACT Math or Science score, if you only have an eligible ACT English or Reading score, then you may only take classes in Fine Arts, Humanities, Sciences, or Social Sciences- you are not eligible to take Mathematics or Technology courses. SCORE logo by Score, in the Public Domain. ACT Score Requirement: Center for Summer Studies The Center for Summer Studies is another summer program offered by Duke TIP; the difference between the Center and the Academy is in the intensity of the courses and the stringency and specificity of the score requirements. Again, we’ve compiled the information from the TIP website into a simpler, easier-to-understand form, dividing up information for 7th-10th graders and 8th-10th graders into two separate tables (one for Center Math classes and one for Center Verbal classes). You're eligible for the Duke TIP Center for Summer Studies Math classes if you... Took the ACT in... And on Math or Science scored... 7th grade ≠¥ 23 8th grade ≠¥ 25 9th grade ≠¥ 27 10th grade ≠¥ 29 You're eligible for the Duke TIP Center for Summer Studies Verbal classes if you... Took the ACT in... And on English scored... Or on Reading scored... 7th grade ≠¥ 23 ≠¥ 24 8th grade ≠¥ 25 ≠¥ 26 9th grade ≠¥ 28 ≠¥ 28 10th grade ≠¥ 31 ≠¥ 30 Duke TIP Score Requirements: A Few Final Notes For Summer Studies courses, you may only apply to the level for which you are qualified. This not only means that you can't apply to the Center for Summer Studies if your score only qualifies you for Academy courses (which makes sense), but that you can't apply to the Academy for Summer Studies if your score is higher than their score requirements- instead, you may only apply to the Center for Summer Studies. On their Test Prep page, Duke TIP has the following to say about their score requirements: â€Å"We do not recommend that students spend a lot of time preparing for the test. Above-grade-level testing is meant to be diagnostic, and many test prep programs just make students anxious.We think the best way to prepare is to be familiar with the structure of the test and the timing of each section, and to review the practice questions we provide so that you know what to expect and are at east on test day.† [Source: Test Prep | Duke TIP. Accessed 2019-07-19.] And look, when you’re taking the ACT as a 7th or 8th grader, you don't need to worry about getting an ACT score that will get you into college. In fact, we have a series of articles about what a good ACT score for a 7th grader and an 8th grader might be, based on extrapolations from data from Duke TIP and John Hopkins CTY. We also have information about what a good score for a 9th and 10th grader might be, but if you're taking the ACT in high school, you'll want to check to see if you're interested in any schools that require all scores sent, and if so, what score target you want to be aiming for. How Do I Meet The Requirements? 4...TIPS (you knew that was coming) #1: Spend time prepping. Yes, I know I just quoted the Duke TIP site, which advises the opposite, but let's be realistic: you'll need at least some test prep. This in no way means that you should invest in any kind of ACT prep course- just that, at the bare minimum, you'll want to familiarize yourself with the ACT's structure and timing. You should take a practice test to gauge where you are, then use this information to determine the amount you have to improve to meet the qualifications for your desired program. Know how much time you have to study so you can plan your prep accordingly. If you only have a few weeks before the ACT, you'll want to study more hours per week than if you have several months left. For more advice, read our articles about taking the ACT in 7th and 8th grade. #2: Take the ACT as early as you can and still feel prepared. If you take the ACT earlier on, you have a lower score threshold to meet (compare the 7th grade vs 8th-10th grade requirements for eStudies, Academy, and Center courses). In general, older students know more than younger students (stop rolling your eyes, younger siblings), but if you've spent time prepping, it's worth it to take it sooner rather than later. #3: If you have a standout test section, focus on it. Duke TIP is unlike most colleges and universities in that you can get in to its various programs even if you only do well on one section of the ACT. If you find that you're getting in practice scores of around 16 for English and Math but 25 for Reading and Science, own it. In the above example, you're better off putting in the time to make sure you can consistently get above the score threshold for Reading and/or Science (depending on whether you want to take Humanities or Math/Science courses) than you are trying to bring up all four of your section scores. #4: Know the ACT strategies that are appropriate for your level. Advice for getting a 36 on a section will not necessarily be relevant if you only need to get above a 26. One example of this is that if you’re aiming for a 26, you can skip the hardest 20% of questions entirely and just focus on answering as many of the easier questions correctly as possible (although since the ACT does not penalize for wrong answers, make sure to leave no space blank, even if you end up choosing â€Å"B† every time). We have more useful information like this in our article on how to guess correctly on the ACT. Handshake by Quinn Dombrowski, used under CC BY-SA 2.0/Cropped from original. Hello, ACT Score Requirements, nice to finally meet you. I hope this article helped clarify the mystery of what the ACT score requirements for Duke TIP are. If you'd rather take the SAT, be sure to read our SAT edition of this article. What’s Next? Curious about what the Duke TIP 7th Grade Talent Search is? I demystify Duke TIP in this complete guide. Delve into our trove of ACT strategies by reading through our collection of blog posts on that very topic. What's a good 7th grade ACT score in general? Want to improve your ACT score by 4+ points? Download our free guide to the top 5 strategies you need in your prep to improve your ACT score dramatically.

How Often Is NO CHANGE the Right Answer on ACT English

How Often Is NO CHANGE the Right Answer on ACT English SAT / ACT Prep Online Guides and Tips On the ACT English section, in the majority of questions, the first answer choice is â€Å"NO CHANGE." The â€Å"NO CHANGE† answer choice indicatesthat the underlined word or phrase is correct. Sometimes, students are hesitant to select â€Å"NO CHANGE† because they think that there should be an error. In this article, I’ll explore the frequency of correct â€Å"NO CHANGE† answers to give you an idea of how often the â€Å"NO CHANGE† answer will be the right one. Furthermore, I’ll let you know how to use this information. For this article, I analyzedthe answers from four published official ACT tests. Basic ACT English Format There are 75 total questions on the ACT English section, each of which has four answer choices. If the correct answers are distributed evenly among the answer choices, â€Å"NO CHANGE† should be right 25% of the time it appears as an option. Let's look at the answers from the four different tests I used. Test-by-Test Breakdown of "NO CHANGE" Frequency Test #1 # of questions w/ "NO CHANGE" option # of correct "NO CHANGE" answers % of "NO CHANGE" answers correct 56 21 37.5% Test #2 # of questions w/ "NO CHANGE" option # of correct "NO CHANGE" answers % of "NO CHANGE" answers correct 64 17 26.6% Test #3 # of questions w/ "NO CHANGE" option # of correct "NO CHANGE" answers % of "NO CHANGE" answers correct 50 17 34 Test #4 # of questions w/ "NO CHANGE" option # of correct "NO CHANGE" answers % of "NO CHANGE" answers correct 59 17 28.8% Frequency of NO CHANGE on All Tests Test # Frequency of "NO CHANGE" correct % of "NO CHANGE" 1 21 37.5 2 17 26.6 3 17 34 4 17 28.8 Analysis: Each test had a percentage of â€Å"NO CHANGE† answers that was higher than expected. The % of NO CHANGE answers ranged from 26.6% to 37.5%. So how can knowing this information benefit you when you take the ACT? How Should You Use This Information? Only use this as a rough guide. The % of â€Å"NO CHANGE† answers varies from test to test. Keep in mind that in ACT English the simplest answer is often the best answer. NO CHANGE may be correct more often than expected because the incorrect answers make unnecessary additions to the underlined phrase. â€Å"NO CHANGE† should always be correct between around 25 and 40 percent of the time. If the percentage of your â€Å"NO CHANGE† answers is not in this range, you have most likely made mistakes and need to review the questions you’re unsure about more closely. Surprisingly, the percentage of No Change is at least 1/4 and often more. So guessing randomly actually is NOT necessarily the best thing to do - when in doubt, try guessing NO CHANGEas it's more likely to be correct! What's Next? As I previously mentioned, in ACT English, the most concise answer is usually the best answer. Learn more about this rule in my article on wordiness on the ACT. If you want a more general guide, read about all the grammar rules covered on the ACT. For those of you primarily studying for the ACT online, I highly recommend checking out this post on the best ACT prep websites. Want to improve your ACT score by 4 points? Check out our best-in-class online ACT prep program. We guarantee your money back if you don't improve your ACT score by 4 points or more. Our program is entirely online, and it customizes what you study to your strengths and weaknesses. If you liked this English lesson, you'll love our program.Along with more detailed lessons, you'll get thousands ofpractice problems organized by individual skills so you learn most effectively. We'll also give you a step-by-step program to follow so you'll never be confused about what to study next. Check out our 5-day free trial:

CASE STUDY Example | Topics and Well Written Essays - 250 words - 2

Case Study Example The main goals are to cater the needs of visitors by providing them a virtual access to its product via the website. Additionally, Wrangler wanted to marketise its brand and various products. Undoubtedly, the world is fast changing with a rapid speed of technology. In order to catch up with this speed; in addition to physical existence, virtual existence is unavoidable to marketise, to promote products, and to provide a convenient way to people to shop virtually. 1. Wrangler targets a very specific type of person with its marketing and Web site. How would you describe that group? What risks and benefits do companies assume when they target specific types of individuals? Do you think it pays off for Wrangler? Why? The website categorizes its customers by men, women, boys and girls. Some risks such as a customer may not able to find Jeans fitting to his/her body structure, possibly the customer might be either too slim or too fat. Additionally, different sizes and prizes help customers to select a piece of jeans fitting to choices and physical aspect as well. As a result, by assessing the possibilities, the companies become in a position to determine and marketise the most common sizes and prices of products. A shopper may become confused to locate the relevant information from so many visual displays. Many a times, shoppers do not like the extra display of visuals that they consider unnecessary. In that case, shopper may find it difficult to locate its wanted piece and consequently unable to shop. There can be no specific product that can be suited for such marketing approach. However, the important thing is that significant but common product information must always be there to help shoppers to locate and shop

Manufacturing process wings for formula one cars using with ribs Coursework

Manufacturing process wings for formula one cars using with ribs - Coursework Example This is the first step and it entails the design process of the parts of the wings. According to Keynes (2014), software such as Siemens, product lifecycle management software permits the racing engineers to improve product design and production process, as well as attainingdesign iterations in the virtual environment. In that perspective, this process involves choosing the shape and patterns of the wings and its parts. This step also focuses on the optimization of the aerodynamics of the wings to ensure efficient output during the racing process. This is the second step and it involves the manufacture of the designed parts. The materials used in this process is carbon fibre and its foams. As cited by. (Wood, 2013) moving from the concept of aerodynamic to a carbon composite fit for the racetrack needs a significant bunch of engineering processes and tools and processes. The designed patterns are moulded, produced and taken to a clearing chamber where several layers of carbon fibre and carbon forms are put together in layers. The parts, according to the design, may take up to 100 layers of carbon foams. After the layers have been put together, they are then sealed together and then put into a vacuum chamber to remove air. The vacuum chamber then sucks the air out. The third step involves forwarding the put together layers into a chamber for a curing process. The layers are then subjected to a high pressure of up to seven atmospheres at a temperature of up to one hundred and nineteen degrees Celsius. This results into the binding of the layers together by squeezing. The bending process is actually handled by the spars that run the span of the wing. Besides, the outer skn needs to be tailored towards avoding skin buckling since the wings have the capability of flexing and bending. The fourth step involves the assembly of the different parts of the wings to make a complete functional wing. The different parts are bind together using rivets. In

Explain in scholarly detail how important is the MANAGEMENT FUNCTION- Essay

Explain in scholarly detail how important is the MANAGEMENT FUNCTION- to individuals and to society - Essay Example Having determined the cause-effect relationship between the success of a company and the society, importance of the role of a manager in making both successful can be assessed. A company achieves its goals through the efficiency of a manager. The manager makes use of four fundamental functions to make this happen, namely planning, organizing, leading and controlling. â€Å"A firm with excellent goals could still fail miserably by being inefficient, meaning that the company hired the wrong people, lost key contributors, relied on outdated technology, and made poor investment decisions† (Certo and Certo, 2008). That is why managers serve as the drivers of success because they plan the way projects would be executed, they recruit people, they assign workers their roles and responsibilities and supervise them with a view to ensuring that they are on the right track and giving their best. So management function is extremely important to both the individuals and the

Research paper proposal Essay Example | Topics and Well Written Essays - 1750 words

Research paper proposal - Essay Example The two research questions to be explored are: "What is the impact of management style on productivity?† and "How does a reward system influence executive function?" The link between management style and productivity is well recognized (Dorgan, Dowdy, and Pippin, 2006; Michael, 2002). What is more interesting to this researcher is the link between reward systems that managers choose to satisfy their organizational expectations and the impact of these reward systems on productivity. These reward systems grew out of a need to give workers an incentive to complete work satisfactorily. Incentives like bonuses, early time-off, and so forth, motivated workers to produce better results much more quickly than when there were no incentives (Camp and Lambert, 2005; Somaya, 2001; Schraeder and Becton, 2008). Beyond incentives, management and leadership style have been seen to also bring about productivity. There is a relationship between management style and the types of incentives they use that also has a bearing on productivity. There are several management styles that include the authoritarian, the participative and the autocratic and the permissive to name a few. This research seeks to measure the efficacy of the participative management style, both in terms of organizational output and worker satisfaction. In analyzing participative management style, it has been found that this type of leadership is also open to certain reward systems more so than other management styles. It is the hope of this research that a correlation will be found between participative management style, incentives and worker productivity. How these systems impact one another will also be explored. Exploring the relationship between management style and productivity is impossible without having a clear definition of what participative management style is and how managers use reward systems. Generally, authors define participative management as a

Please read the instructions carefully Article Example | Topics and Well Written Essays - 250 words

Please read the instructions carefully - Article Example It should be an increase of $0.5 billion from a decade ago. Most of the adhesives used in cars include: crestomer advantage 30, UV-curing, and crestabond M1-05. They are proven to be reliable with long term bond strength, durability, and toughness. The clean motion AB has used them for designing the Zbee electricity vehicle. The adhesives have made Zbee vehicle very light to be powered by an electric motor that use 4KW (â€Å"Adhesives Increase†). This has reduced fuel consumption for urban transportation. Adhesives are more efficient in joining aluminum materials with other metals such as steel where weld cannot be used. In addition, they are one-component and solvent-free materials. This makes them easy and safe to be integrated with other manufacturing materials. In the automotive industry, adhesives assemble critical devices such as seat belt monitoring switches and air bag deactivation switches (Uske and

Proofs for the Existence of God Essay Example | Topics and Well Written Essays - 1000 words

Proofs for the Existence of God - Essay Example There are unanswered questions even today about the importance and existence of God as creator of this universe or the galaxies that astronomers see through their ever more powerful telescope. If it is conceivable that this universe had a beginning and will have an end, then it is logical to assume that it must have had a creator, since nothing can be created out of nothing. While John Leslie in his treatise on the subject of ethically required existences argues that there must be proof of God somewhere in the system of things, St Anslem of old puts the cart before the horse and argues that the importance that religion and mankind gives to God proves his existence (Anslem, 4)1. Explication To my mind, both philosophers are arguing for the existence of God, but each from a different standpoint. John Leslie, in his argument for what he calls ‘ethically required existences’, relies on the tenets of naturalism and prescriptivism to explain his viewpoint (Leslie, 1972:222)2. St. Anslem however takes a more unconventional approach and states that to think of God is to think of the Greatest Power that the Universe has ever known, and undoubtedly since some Power created this Universe and every living and inanimate thing out of nothing at all, that Power can only be God and belong to God. No one can create something out of nothing except God. Therefore it is imperative that we believe in the existence of God, the Creator and Master of All the known universe and its galaxies etc. It is far better to accept the existence of God because each creature in the universe is the product of intelligent design and that presupposes a creator. Main Argument John Leslie starts with the notion that we cannot label anything as intrinsically good or bad unless we know what good and bad is, therefore we are making a judgment that can only depend on prior knowledge or something that is inherent in man’s nature or existence. If morality or ethical behavior is what sepa rates us from the animals or at any rate, the creatures that lie below us on the totem pole of existence, then there is someone or something that put it in our hearts, or minds and our souls, and that could only be God. No wonder it is often said that ‘Conscience is the voice of God in man’. The very fact that we all come into this earthly existence with an inbuilt sense of morality is proof enough of the existence of God, a creator that prefers us to be good and do good, but has given us free will all the same, in order to test our level of obedience to him in this earthly life. To support St. Anslem’s argument, since it is so confusing, I prefer to put forward what has been called Pascal’s Wager to prove the existence of God. Pascal’s Wager induces us to wager that there is a God, rather than there is not. He has very interestingly drawn out parallels whether we believe in God or do not believe in God because we cannot do both. Either we believe i n the existence of a Supreme Being or we do not. But suppose if we did and there is indeed a God that meets us at the Pearly Gates or whatever as we pass into the afterlife. In that case we would indeed be pleased that we assumed correctly that God did exist. Indeed this assumption also makes our moral life on Earth easier as well. We take pains to do good and be good because

Please read the instructions carefully Article Example | Topics and Well Written Essays - 250 words

Please read the instructions carefully - Article Example It should be an increase of $0.5 billion from a decade ago. Most of the adhesives used in cars include: crestomer advantage 30, UV-curing, and crestabond M1-05. They are proven to be reliable with long term bond strength, durability, and toughness. The clean motion AB has used them for designing the Zbee electricity vehicle. The adhesives have made Zbee vehicle very light to be powered by an electric motor that use 4KW (â€Å"Adhesives Increase†). This has reduced fuel consumption for urban transportation. Adhesives are more efficient in joining aluminum materials with other metals such as steel where weld cannot be used. In addition, they are one-component and solvent-free materials. This makes them easy and safe to be integrated with other manufacturing materials. In the automotive industry, adhesives assemble critical devices such as seat belt monitoring switches and air bag deactivation switches (Uske and

McCrae and Costas Concept of Introversion Essay Example for Free

McCrae and Costas Concept of Introversion Essay 1.According to McCrae and Costa, Neuroticism are factors or traits characterized by anxiousness, depression, tension, irrational behavior, moodiness, low self-esteem, guilt feelings, worriedness, insecurity nervousness and are high strung. Sabrina would score high in neuroticism because she possesses some of the traits or factors. In the case study, Sabrina is insecure and has a low self-esteem because she is not satisfied with her body and she wishes to have surgery to correct her supposed â€Å"defects† such as her nose too big, her small breast, she looks fat even though she is not, she also wants to look less African-American . 2.Openness to experience according to McCrae and Costa is characterized by factors such as originality, independence, creativity and a daring attitude. Sabrina would also score high on this because she is very original and creative, an example is that when Sabrina dresses up for her job as a waitress, she tries out different roles; wearing loud, flamboyant and gregarious outfits in order to perfect her acting skills. She is also very daring and independent; Sabrina likes to try new things, such as dressing in the bohemian way and incorporating African-American styles as well, she also tries different foods which include Ethiopian food, and she also loves to travel. 3.McCrae and Costa’s concept of introversion and extraversion is very similar to that of Carl Jung. They both see extraverts as outgoing, open, sociable, and lively and oriented to the external world, introverts are seen as shy people. Carl believes that everyone possesses both attitudes and can exhibit both but only one is dominant, and while Eysenck believes that these attitudes or traits tends to remain stable throughout one’s life despite the different social and environmental experiences people have.

Effect of Brexit on the Financial Markets

Effect of Brexit on the Financial Markets What are financial markets? Financial markets are an open and regulated system where companies can raise large amounts of capital through bonds and stock markets, or offset their risk by investing in commodities, foreign exchange futures contracts or other derivatives. Due to the size of financial markets, they are highly liquid, meaning businesses can easily and quickly generate cash by selling their assets. Since financial markets are public and work under a lot of regulations, there is a lot of information transparency and prices of everything traded reflects this. (Source: â€Å"Six Basic Functions of Financial Markets†, Iowa State University, March 5, 2012.)   What is the European Union and what is Brexit? The European Union, like the name suggests is a political and economic union of 28 countries within Europe. The UK became part of the EU in 1973 and had to pay a membership fee every year The creation of the European union was to firstly bring countries together after the 2nd world war had left many economically and politically disabled or struggling. This economic cooperation would become the world’s biggest single market and it still is today. (European Union European Commission, 2017) Even though the UK has benefited a lot from being in a single market, there were many who thought that Britain would be better off on its own; and for this reason the government decided to have a referendum after which on the 23 of June 2016, Britain exited the Single market, giving back it’s seat in the European Parliament and all the benefits that came with it. How can financial markets affect economic performance? Demirgà ¼Ãƒ §-Kunt and Levine in their 2001 book, ‘Financial Structure and Economic Growth’ said there is a strong connection between financial markets development and economic growth. The way in which this happens is that a well-functioning financial market will efficiently direct the flow of savings and investments in an economy as such to enable businesses to accumulate capital and goods and services to be produced. A well-established financial market alongside a wide range of financial products will benefit borrowers and lenders and therefore the economy as a whole. Another benefit of an efficient financial market is that by providing a range of financial options at varying risk levels and pricing structures, borrowers and lenders can be closely matched for their individual needs. This allows investors to determine and calculate their cost of financing by looking at their returns on their investments and then choosing the best financing and investment choice for their requirements. The European Union created a single banking market with a single currency and therefore created Europe-wide financial markets which made investing and borrowing euro-denominated stocks, bonds and derivatives easy for all EU countries that are part of the Euro by eliminating exchange rate risks. By doing so, products and services that were previously only available on a country by country basis were now available to a wider market, creating better competition which in turn makes markets more efficient and prices lower for individuals.   This is called the ‘Single-Passport’ system, whereby any business set up in one-member state may provide its services to the rest without further authorisation requirements (European Commission 2016) Not only does euro-based financial markets benefit the Eurozone, it also attracts international investors to invest here and benefit from the competitive market, (Mishkin, 2012) and by being part of the ‘single-passport, Non-European companies can set up their head office in London, and have access to all the benefits of the Single Market. UK financial market relationship with the EU Professor Nick Bloom of Stanford University said: â€Å"The single European market increased competition and forced British firms to increase the level of innovation.† London is one of the biggest financial hubs of the world and hosts the largest number of banks and commercial insurance companies. According to (Belke A. et all) around 6 trillion euros, which is equivalent to 37% of Europe’s financial assets are managed in London, which is twice the amount of the nearest rival Paris. London also dominates Europe’s 5.2 trillion-euro investment banking industry. What this means is that major investments happing in some of Europe’s biggest cities are financed by companies operating within London. This is why, (Mark Carney, Governor of the Bank of England), said: â€Å"Europe relies heavily on London’s debt and equity markets.† When it comes to foreign exchange markets, the UK is way ahead of its European counterparts with an impressive almost 40% share of the worlds foreign exchange and derivatives handling. According to the (City of London Corporation) each year, $869 trillion worth of Euro, Yen and Dollars are traded from London. This is higher than all the Euro-Zone countries combined. https://www.reuters.com/investigates/special-report/britain-europe-cost/ London currently accounts for 70% of the Euro Sovereign debt trades, meaning that the EU countries cannot shut outlondons capital markets as this would be suicide. (Rueters) According to Reuters (Kai Pfaffenbach) Frankfurt is desperately trying win over businesses to relocate to their city from London. To help in this, the European Central Bank started the â€Å"Capital Markets Union† project in 2015, where they want Euro-zone financial markets to provide improved fund raising for companies by replicating Britain’s financial services and become more efficient in the stocks, bonds and other securities markets. How Brexit is affecting Financial Markets: https://www.ft.com/content/0260242c-370b-11e6-9a05-82a9b15a8ee7The question of how Brexit will affect the UK economy is very uncertain. The sterling fell to a 31 year low, stock markets fell and foreign direct investment has frozen. All these things point towards the short-term impact of Brexit to be very serious. The real question is, what will the long term effects be, and how will markets react to cope with such uncertainty about the future. The institutional framework of the EU and the euro has created dependencies amongst countries. For this reason, Brexit will have affects in not just UK financial markets, but financial markets across the globe. According to (Gordon and Shapiro 1956) the dividend discount model, expectations about future effects on financial markets will have an effect on stocks and other financial variables now. From the graph above, we can see that when the news of Brexit was announced and the UK markets became uncertain about the UK’s future in the single market, the pound fell to its lowest price in 31 years. Because of Brexit and Policy uncertainty, markets adopt a ‘wait-and-see’ attitude towards investment decisions.   If London is no longer part of the single market, it loses its attractiveness as a foreign direct investment hub and a gateway to the European financial markets. According to the financial times, almost half of the FDI coming to the UK comes from the EU and after Brexit, this investment will significantly decrease due to increased trade costs and tariffs. The Office of National Statistics (ONS) tells us that FDI has been about 5% of UK GDP between 1999 and 2015. The analysis from the financial times estimates the decrease in FDI would be 22%. The impact of Brexit on the UK financial sector can be broken down in to 3 things: What agreement can the UK make with the EU in its post-Brexit negotiations. The extent to which financial sector businesses move their operations from the UK to a Eurozone country before any negotiation agreements are made.How well the UK financial sector can survive based on its global position and relationship. Until a deal is made with the EU, we cannot predict how the market will end up like, but we can hypothesise certain outcomes like the following: Currently, the UK is still part of the EU, and hence has passporting rights. Once these rights are gone, UK firms will have to have state level authorisations from EU countries to perform activities. This will depend upon whether the regulators in those countries will allow UK financial markets to sill operate within their borders. The best outcome would be if the UK retains their passporting rights through either a negotiation or remaining a part of the EEA. Johnathon ford writes in the financial times that another option that UK based companies may have is to open up subsidiaries in different EU countries, that way giving them access to customers within those markets. This is however costly and inefficient. Alternatively, UK firms could take advantage of Third Country Regime (TCR) access provisions. What this means is that companies that were incorporated outside the EU can still do business on a cross-border basis if they wish to do so without having an establishment within that EU country, however EU law will require that the regulations and legal structure they follow complies with EU. Reuters business news tells us that Standard Chartered (Stan.L) and JPMorgan (JPM.N) were the latest global banks that have outlined plans for European operations after Brexit. Goldman Sachs Lloyd Blankfein said that â€Å"London’s growth as a financial centre could stall as a result of upheaval caused by Brexit.† So, because of Brexit and the uncertainty of what the future holds for UK’s financial markets; UK based financial firms especially those in London are looking to move their operations into the EU market to benefit from the single market. Another financial market area that will be affected by Brexit is that of selling of derivatives for companies to buy protection or lower their risk portfolio against changes the US dollar and or spikes in the price of oil. As a result of tighter financial regulations on banks, some will opt out of providing this service and those who do will offer a smaller variety of products at a higher price. Ultimately, this is bad for markets as they are not getting the best deal they can. London also dominates the euro derivatives market. EU policymakers have not liked this for a while and want to shift this to a Eurozone country after Brexit. This will in turn increase the price of trading for corporations that deal in multiple currencies as they will have to go through several clearing houses. Bankers are unsure how much extra it will cost a European company to borrow without direct access to London, however, the association for financial markets said customers are being overly optimistic if they think that lending agents will bear the burden or grunt of this. They will push the increased cost of borrowing onto the consumer, which will ultimately make them less competitive in the market. Ernst and Young say in their research paper that they surveyed major corporates including Airbus and Volkswagen and found that these companies were really worried about rising costs of funding as a result of Brexit. London has dominated the financial centre for decades and has built its reputation on the service it provides. It would be very difficult to replicate this market. This has been due to its vast talent pool, widespread use of the English language and the UK legal system and the vast amount of money going through the UK through these financial markets. Another great strength of the UK is its over-the-counter derivatives market. Corporations often use swaps to protect themselves against adverse interest rates and currency moves. Over-the-counter derivatives have to go through clearing houses who are sort of the middle man who make sure neither party defaults on their payments. Even though the UK is not part of the Euro single currency, it still manages  ¾ of all euro-denominated swaps. As the UK decides to leave the EU, this creates a problem, because now most of these swaps won’t be clearing through the bloc. Germany and France have already said that they want the euro-denominated derivatives to be cleat=red through the EU; however LSE has argued that doing so would cost London thousands of jobs. According to a private report by EY, this estimate loss of jobs could be around 83,000 by 2024. The EU needs London’s money, says Mark Carney, governor of the Bank of England. He calls Britain â€Å"Europe’s investment banker† and says half of all the debt and equity issued by the EU involves financial institutions in Britain. What impact would Brexit have on the way in which banks are regulated in the UK? There are three pillars in the UK banking regulations: The capital requirements directive IV and the capital requirements regulation.The banking act of 2009 Bank Resolution and Recovery Directive (BRRD) Since the BRRD and CRD IV were EU legislations, the UK has to decide after Brexit how much they want to keep. CRD IV implements the requirements of Basel III, which the UK would still be committed to after Brexit. Brexit will likely have an effect on the legislation application of the EEA branches and subsidiaries. What  Ã‚  impact would Brexit have on the UK insurance industry? The London market currently has access to over 500 million customers through the EU and a substantial amount of insurance and reinsurance is distributed into and out of the UK. For the UK to continue to have access to these customers, they have to negotiate bilateral treaties to ensure member states allow them passport into the EU. The prudential regulation authority (PRA) has been very involved in negotiating the solvency II directive which was based on the risk-based regime of the UK. What  Ã‚  impact would Brexit have on the UK funds industry? Currently most UK based fund managers already use Irish or Luxembourg UCITS and alternative investment funds (AIF) platforms for Pan-European distribution of funds therefore Brexit will likely not have much effect on this sector of the financial market. The problem the UK asset management industry will face is the risk of changes to rules enabling MIFID investment firms, AIFMS and UCITS management firms to choose UK based investment managers. Currently, the administration is deemed sufficient for EU firms to contract asset management jobs to the UK managers. Another drawback may be that EU member states may put obstacles in front in the form of tax regimes that make it less attractive for EU firms to hire UK investment managers. Corporate tax: The EU previously set the legal requirements for corporate tax in the UK. Since we will no longer be a part of the EU, these regulations will be revised by HMRC and new draft regulations will be put in place. Currently businesses that have offices within and outside the UK enjoy a 0% rate of withholding tax. This may no longer be the case and companies will look for ways to save themselves from varying taxations in different countries, or changing their place of business to protect themselves from higher or double taxation. VAT VAT was a European Union Concept and now that the UK government is responsible for this, they may decide to change the rates at which this is charged or what products VAT will be charged on. Accounting law At the moment, there is a significant EU accounting and company law legislations that may come under review after Brexit. These include, directive 2013/34/EU about annual financial statements, consolidated financial statements and reports. Directive 2009/101/EC about the disclosure of company documents and company obligations. Directive 2012/30/EU on the formation of public limited companies. Directive 89/666/EEC on disclosure requirements for foreign branches of companies. Global Impact of Brexit There is no roadmap to follow or analogy to invoke as a guide or pattern for how the Brexit vote will reverberate in the months and years to come. However, a few immediate consequences seem highly likely: †¢Ã‚  The flight to safety away from the epicenter of this British-EU divorce will push capital away from the region and toward key safe-haven markets including the U.S.—especially Treasuries—and to Japan. This will further lower market interest rates and raise relative currency values. †¢Ã‚  A higher U.S. dollar and Japanese yen are negative to both economies’ export sectors. In the case of Japan, this is particularly unhelpful to its efforts to reinflate and reinvigorate the economy after decades of deflation. †¢Ã‚  The higher U.S. dollar also triggers additional pressure on China to float the yuan lower, as it is caught in the divergence between its two largest export markets—the EU and the U.S.. †¢Ã‚  For the U.S., the negative impact on exports is relatively small compared with trends in domestic demand, but the deflationary pressure on tradable goods will widen the divergence between reasonably strong inflation in the services sector vs. reasonably strong deflation in the goods sector. †¢Ã‚  The European Central Bank will be compelled to raise its level of intervention yet again, as risk premiums across the region rise. Among the larger Eurozone members, Italy is in a particularly vulnerable position—now made more vulnerable. Each blow to members of the Eurozone periphery also further make Germany’s outperformance in the Eurozone even more unsustainable. The nature of the UK’s eventual exit agreement with the EU is crucial, and hangs over a multitude of markets. CEP BREXIT ANALYSIS Life after Brexit: What are the UK’s options outside the European Union? It is highly uncertain what the UK’s future would look like outside the European Union (EU), which makes ‘Brexit’ a leap into the unknown. This report reviews the advantages and drawbacks of the most likely options. After Brexit, the EU would continue to be the world’s largest market and the UK’s biggest trading partner. A key question is what would happen to the three million EU citizens living in the UK and the two million UK citizens living in the EU? There are economic benefits from European integration, but obtaining these benefits comes at the political cost of giving up some sovereignty. Inside or outside the EU, this trade-off is inescapable. One option is ‘doing a Norway’ and joining the European Economic Area. This would minimise the trade costs of Brexit, but it would mean paying about 83% as much into the EU budget as the UK currently does. It would also require keeping current EU regulations (without having a seat at the tab le when the rules are decided). Another option is ‘doing a Switzerland’ and negotiating bilateral deals with the EU. Switzerland still faces regulation without representation and pays about 40% as much as the UK to be part of the single market in goods. But the Swiss have no agreement with the EU on free trade in services, an area where the UK is a major exporter. A further option is going it alone as a member of the World Trade Organization. This would give the UK more sovereignty at the price of less trade and a bigger fall in income, even if the UK were to abolish tariffs completely. Brexit would allow the UK to negotiate its own trade deals with non-EU countries. But as a small country, the UK would have less bargaining power than the EU. Canada’s trade deals with the United States show that losing this bargaining power could be costly for the UK. To make an informed decision on the merits of leaving the EU, voters need to know more about what the UK governme nt would do following Brexit. This is the first in a series of briefings analysing the economic costs and benefits of Brexit for the UK. Economists for Brexit: A Critique Professor Patrick Minford, one of the ‘Economists for Brexit’, argues that leaving the European Union (EU) will raise the UK’s welfare by 4% as a result of increased trade. His policy recommendation is that following a vote for Brexit, the UK should strike no new trade deals but instead unilaterally abolish all its import tariffs. Under this policy (‘Britain Alone’), he describes his model as predicting the ‘elimination’ of UK manufacturing and a big increase in wage inequality. These outcomes may be hard to sell to UK citizens as a desirable political option. Our analysis of the ‘Britain Alone’ policy predicts a 2.3% loss of welfare compared with staying in the EU. This is only 0.3 percentage points better than Brexit without unilaterally abolishing tariffs which would result in a 2.6% welfare loss. Minford’s results stem from assuming that small changes in trade costs have tremendously large effects on trade volumes: according to his model, the falls in tariffs become enormously magnified because each country purchases only from the lowest cost supplier. In reality, everyone does not simply buy from the cheapest supplier. Products are different when made by different countries and trade is affected by the distance between countries, their size, history and wealth (the ‘gravity relationship’). Trade costs are not just government-created trade barriers. Product differentiation and gravity is incorporated into modern trade models – these predict that after Brexit the UK will continue to trade more with the EU than other countries as it remains our geographically closest neighbour. Consequently, we will be worse off because we will face higher trade costs with the EU. Minford’s assumption that goods prices would fall by 10% comes from attributing all producer price differences between the EU and low-cost countries to EU trade barriers, ignoring differences in quality. Sin gle Market rules (for example, over product safety) facilitate trade between EU members as it creates a level playing field. Minford’s assumption that the Single Market merely diverts trade from non-EU countries is contradicted by the empirical evidence. Minford also overlooks the loss in services trade that would result from leaving the Single Market, such as ‘passporting’ privileges in financial services. Minford’s approach of ignoring empirical analysis of trade data seems predicated on the view that because statistical analysis is imperfect, it should all be completely ignored. But such statistical biases may reinforce rather than weaken the case for remaining in the EU. Theories need grounding in facts, not ideology. Bibliography https://fullfact.org/europe/our-eu-membership-fee-55-million/https://www.reuters.com/investigates/special-report/britain-europe-cost/https://www.ft.com/content/0260242c-370b-11e6-9a05-82a9b15a8ee7https://www.ft.com/content/61221dd4-d8c4-11e6-944b-e7eb37a6aa8e?mhq5j=e5http://www.nortonrosefulbright.com/knowledge/publications/115128/mifid-ii-mifir-serieshttp://uk.reuters.com/article/uk-britain-eu-banks/banks-planning-to-move-9000-jobs-from-britain-because-of-brexit-idUKKBN184132http://www.ey.com/Publication/vwLUAssets/ey-uk-eu-planning-for-uncertainty/$File/ey-uk-eu-planning-for-uncertainty.pdfhttps://www.reuters.com/investigates/special-report/britain-europe-cost/https://www.accountingweb.com/community/blogs/geoff-collings/the-effect-of-brexit-on-uk-accountinghttps://www.accountancyage.com/2016/07/21/what-brexit-means-for-accounting-employment-and-taxation-law/ http://www.europarl.europa.eu/RegData/etudes/BRIE/2016/587384/IPOL_BRI(2016)587384_EN.pdfhttps://www.ceps.eu/system/files/WD% 20429%20AB%20et%20al%20Brexit%20Applied%20Economics.pdfhttp://www.frbsf.org/education/publications/doctor-econ/2005/january/financial-markets-economic-performance/https://www.ft.com/content/74708d46-c6ca-11e6-8f29-9445cac8966f Mishkin, F. (2012).  Introduction to Financial Markets. [online] Www2.econ.iastate.edu. Available at: http://www2.econ.iastate.edu/tesfatsi/finintro.htm#FMI [Accessed 10 Sep. 2017]. Effect of Brexit on the Financial Markets Effect of Brexit on the Financial Markets What are financial markets? Financial markets are an open and regulated system where companies can raise large amounts of capital through bonds and stock markets, or offset their risk by investing in commodities, foreign exchange futures contracts or other derivatives. Due to the size of financial markets, they are highly liquid, meaning businesses can easily and quickly generate cash by selling their assets. Since financial markets are public and work under a lot of regulations, there is a lot of information transparency and prices of everything traded reflects this. (Source: â€Å"Six Basic Functions of Financial Markets†, Iowa State University, March 5, 2012.)   What is the European Union and what is Brexit? The European Union, like the name suggests is a political and economic union of 28 countries within Europe. The UK became part of the EU in 1973 and had to pay a membership fee every year The creation of the European union was to firstly bring countries together after the 2nd world war had left many economically and politically disabled or struggling. This economic cooperation would become the world’s biggest single market and it still is today. (European Union European Commission, 2017) Even though the UK has benefited a lot from being in a single market, there were many who thought that Britain would be better off on its own; and for this reason the government decided to have a referendum after which on the 23 of June 2016, Britain exited the Single market, giving back it’s seat in the European Parliament and all the benefits that came with it. How can financial markets affect economic performance? Demirgà ¼Ãƒ §-Kunt and Levine in their 2001 book, ‘Financial Structure and Economic Growth’ said there is a strong connection between financial markets development and economic growth. The way in which this happens is that a well-functioning financial market will efficiently direct the flow of savings and investments in an economy as such to enable businesses to accumulate capital and goods and services to be produced. A well-established financial market alongside a wide range of financial products will benefit borrowers and lenders and therefore the economy as a whole. Another benefit of an efficient financial market is that by providing a range of financial options at varying risk levels and pricing structures, borrowers and lenders can be closely matched for their individual needs. This allows investors to determine and calculate their cost of financing by looking at their returns on their investments and then choosing the best financing and investment choice for their requirements. The European Union created a single banking market with a single currency and therefore created Europe-wide financial markets which made investing and borrowing euro-denominated stocks, bonds and derivatives easy for all EU countries that are part of the Euro by eliminating exchange rate risks. By doing so, products and services that were previously only available on a country by country basis were now available to a wider market, creating better competition which in turn makes markets more efficient and prices lower for individuals.   This is called the ‘Single-Passport’ system, whereby any business set up in one-member state may provide its services to the rest without further authorisation requirements (European Commission 2016) Not only does euro-based financial markets benefit the Eurozone, it also attracts international investors to invest here and benefit from the competitive market, (Mishkin, 2012) and by being part of the ‘single-passport, Non-European companies can set up their head office in London, and have access to all the benefits of the Single Market. UK financial market relationship with the EU Professor Nick Bloom of Stanford University said: â€Å"The single European market increased competition and forced British firms to increase the level of innovation.† London is one of the biggest financial hubs of the world and hosts the largest number of banks and commercial insurance companies. According to (Belke A. et all) around 6 trillion euros, which is equivalent to 37% of Europe’s financial assets are managed in London, which is twice the amount of the nearest rival Paris. London also dominates Europe’s 5.2 trillion-euro investment banking industry. What this means is that major investments happing in some of Europe’s biggest cities are financed by companies operating within London. This is why, (Mark Carney, Governor of the Bank of England), said: â€Å"Europe relies heavily on London’s debt and equity markets.† When it comes to foreign exchange markets, the UK is way ahead of its European counterparts with an impressive almost 40% share of the worlds foreign exchange and derivatives handling. According to the (City of London Corporation) each year, $869 trillion worth of Euro, Yen and Dollars are traded from London. This is higher than all the Euro-Zone countries combined. https://www.reuters.com/investigates/special-report/britain-europe-cost/ London currently accounts for 70% of the Euro Sovereign debt trades, meaning that the EU countries cannot shut outlondons capital markets as this would be suicide. (Rueters) According to Reuters (Kai Pfaffenbach) Frankfurt is desperately trying win over businesses to relocate to their city from London. To help in this, the European Central Bank started the â€Å"Capital Markets Union† project in 2015, where they want Euro-zone financial markets to provide improved fund raising for companies by replicating Britain’s financial services and become more efficient in the stocks, bonds and other securities markets. How Brexit is affecting Financial Markets: https://www.ft.com/content/0260242c-370b-11e6-9a05-82a9b15a8ee7The question of how Brexit will affect the UK economy is very uncertain. The sterling fell to a 31 year low, stock markets fell and foreign direct investment has frozen. All these things point towards the short-term impact of Brexit to be very serious. The real question is, what will the long term effects be, and how will markets react to cope with such uncertainty about the future. The institutional framework of the EU and the euro has created dependencies amongst countries. For this reason, Brexit will have affects in not just UK financial markets, but financial markets across the globe. According to (Gordon and Shapiro 1956) the dividend discount model, expectations about future effects on financial markets will have an effect on stocks and other financial variables now. From the graph above, we can see that when the news of Brexit was announced and the UK markets became uncertain about the UK’s future in the single market, the pound fell to its lowest price in 31 years. Because of Brexit and Policy uncertainty, markets adopt a ‘wait-and-see’ attitude towards investment decisions.   If London is no longer part of the single market, it loses its attractiveness as a foreign direct investment hub and a gateway to the European financial markets. According to the financial times, almost half of the FDI coming to the UK comes from the EU and after Brexit, this investment will significantly decrease due to increased trade costs and tariffs. The Office of National Statistics (ONS) tells us that FDI has been about 5% of UK GDP between 1999 and 2015. The analysis from the financial times estimates the decrease in FDI would be 22%. The impact of Brexit on the UK financial sector can be broken down in to 3 things: What agreement can the UK make with the EU in its post-Brexit negotiations. The extent to which financial sector businesses move their operations from the UK to a Eurozone country before any negotiation agreements are made.How well the UK financial sector can survive based on its global position and relationship. Until a deal is made with the EU, we cannot predict how the market will end up like, but we can hypothesise certain outcomes like the following: Currently, the UK is still part of the EU, and hence has passporting rights. Once these rights are gone, UK firms will have to have state level authorisations from EU countries to perform activities. This will depend upon whether the regulators in those countries will allow UK financial markets to sill operate within their borders. The best outcome would be if the UK retains their passporting rights through either a negotiation or remaining a part of the EEA. Johnathon ford writes in the financial times that another option that UK based companies may have is to open up subsidiaries in different EU countries, that way giving them access to customers within those markets. This is however costly and inefficient. Alternatively, UK firms could take advantage of Third Country Regime (TCR) access provisions. What this means is that companies that were incorporated outside the EU can still do business on a cross-border basis if they wish to do so without having an establishment within that EU country, however EU law will require that the regulations and legal structure they follow complies with EU. Reuters business news tells us that Standard Chartered (Stan.L) and JPMorgan (JPM.N) were the latest global banks that have outlined plans for European operations after Brexit. Goldman Sachs Lloyd Blankfein said that â€Å"London’s growth as a financial centre could stall as a result of upheaval caused by Brexit.† So, because of Brexit and the uncertainty of what the future holds for UK’s financial markets; UK based financial firms especially those in London are looking to move their operations into the EU market to benefit from the single market. Another financial market area that will be affected by Brexit is that of selling of derivatives for companies to buy protection or lower their risk portfolio against changes the US dollar and or spikes in the price of oil. As a result of tighter financial regulations on banks, some will opt out of providing this service and those who do will offer a smaller variety of products at a higher price. Ultimately, this is bad for markets as they are not getting the best deal they can. London also dominates the euro derivatives market. EU policymakers have not liked this for a while and want to shift this to a Eurozone country after Brexit. This will in turn increase the price of trading for corporations that deal in multiple currencies as they will have to go through several clearing houses. Bankers are unsure how much extra it will cost a European company to borrow without direct access to London, however, the association for financial markets said customers are being overly optimistic if they think that lending agents will bear the burden or grunt of this. They will push the increased cost of borrowing onto the consumer, which will ultimately make them less competitive in the market. Ernst and Young say in their research paper that they surveyed major corporates including Airbus and Volkswagen and found that these companies were really worried about rising costs of funding as a result of Brexit. London has dominated the financial centre for decades and has built its reputation on the service it provides. It would be very difficult to replicate this market. This has been due to its vast talent pool, widespread use of the English language and the UK legal system and the vast amount of money going through the UK through these financial markets. Another great strength of the UK is its over-the-counter derivatives market. Corporations often use swaps to protect themselves against adverse interest rates and currency moves. Over-the-counter derivatives have to go through clearing houses who are sort of the middle man who make sure neither party defaults on their payments. Even though the UK is not part of the Euro single currency, it still manages  ¾ of all euro-denominated swaps. As the UK decides to leave the EU, this creates a problem, because now most of these swaps won’t be clearing through the bloc. Germany and France have already said that they want the euro-denominated derivatives to be cleat=red through the EU; however LSE has argued that doing so would cost London thousands of jobs. According to a private report by EY, this estimate loss of jobs could be around 83,000 by 2024. The EU needs London’s money, says Mark Carney, governor of the Bank of England. He calls Britain â€Å"Europe’s investment banker† and says half of all the debt and equity issued by the EU involves financial institutions in Britain. What impact would Brexit have on the way in which banks are regulated in the UK? There are three pillars in the UK banking regulations: The capital requirements directive IV and the capital requirements regulation.The banking act of 2009 Bank Resolution and Recovery Directive (BRRD) Since the BRRD and CRD IV were EU legislations, the UK has to decide after Brexit how much they want to keep. CRD IV implements the requirements of Basel III, which the UK would still be committed to after Brexit. Brexit will likely have an effect on the legislation application of the EEA branches and subsidiaries. What  Ã‚  impact would Brexit have on the UK insurance industry? The London market currently has access to over 500 million customers through the EU and a substantial amount of insurance and reinsurance is distributed into and out of the UK. For the UK to continue to have access to these customers, they have to negotiate bilateral treaties to ensure member states allow them passport into the EU. The prudential regulation authority (PRA) has been very involved in negotiating the solvency II directive which was based on the risk-based regime of the UK. What  Ã‚  impact would Brexit have on the UK funds industry? Currently most UK based fund managers already use Irish or Luxembourg UCITS and alternative investment funds (AIF) platforms for Pan-European distribution of funds therefore Brexit will likely not have much effect on this sector of the financial market. The problem the UK asset management industry will face is the risk of changes to rules enabling MIFID investment firms, AIFMS and UCITS management firms to choose UK based investment managers. Currently, the administration is deemed sufficient for EU firms to contract asset management jobs to the UK managers. Another drawback may be that EU member states may put obstacles in front in the form of tax regimes that make it less attractive for EU firms to hire UK investment managers. Corporate tax: The EU previously set the legal requirements for corporate tax in the UK. Since we will no longer be a part of the EU, these regulations will be revised by HMRC and new draft regulations will be put in place. Currently businesses that have offices within and outside the UK enjoy a 0% rate of withholding tax. This may no longer be the case and companies will look for ways to save themselves from varying taxations in different countries, or changing their place of business to protect themselves from higher or double taxation. VAT VAT was a European Union Concept and now that the UK government is responsible for this, they may decide to change the rates at which this is charged or what products VAT will be charged on. Accounting law At the moment, there is a significant EU accounting and company law legislations that may come under review after Brexit. These include, directive 2013/34/EU about annual financial statements, consolidated financial statements and reports. Directive 2009/101/EC about the disclosure of company documents and company obligations. Directive 2012/30/EU on the formation of public limited companies. Directive 89/666/EEC on disclosure requirements for foreign branches of companies. Global Impact of Brexit There is no roadmap to follow or analogy to invoke as a guide or pattern for how the Brexit vote will reverberate in the months and years to come. However, a few immediate consequences seem highly likely: †¢Ã‚  The flight to safety away from the epicenter of this British-EU divorce will push capital away from the region and toward key safe-haven markets including the U.S.—especially Treasuries—and to Japan. This will further lower market interest rates and raise relative currency values. †¢Ã‚  A higher U.S. dollar and Japanese yen are negative to both economies’ export sectors. In the case of Japan, this is particularly unhelpful to its efforts to reinflate and reinvigorate the economy after decades of deflation. †¢Ã‚  The higher U.S. dollar also triggers additional pressure on China to float the yuan lower, as it is caught in the divergence between its two largest export markets—the EU and the U.S.. †¢Ã‚  For the U.S., the negative impact on exports is relatively small compared with trends in domestic demand, but the deflationary pressure on tradable goods will widen the divergence between reasonably strong inflation in the services sector vs. reasonably strong deflation in the goods sector. †¢Ã‚  The European Central Bank will be compelled to raise its level of intervention yet again, as risk premiums across the region rise. Among the larger Eurozone members, Italy is in a particularly vulnerable position—now made more vulnerable. Each blow to members of the Eurozone periphery also further make Germany’s outperformance in the Eurozone even more unsustainable. The nature of the UK’s eventual exit agreement with the EU is crucial, and hangs over a multitude of markets. CEP BREXIT ANALYSIS Life after Brexit: What are the UK’s options outside the European Union? It is highly uncertain what the UK’s future would look like outside the European Union (EU), which makes ‘Brexit’ a leap into the unknown. This report reviews the advantages and drawbacks of the most likely options. After Brexit, the EU would continue to be the world’s largest market and the UK’s biggest trading partner. A key question is what would happen to the three million EU citizens living in the UK and the two million UK citizens living in the EU? There are economic benefits from European integration, but obtaining these benefits comes at the political cost of giving up some sovereignty. Inside or outside the EU, this trade-off is inescapable. One option is ‘doing a Norway’ and joining the European Economic Area. This would minimise the trade costs of Brexit, but it would mean paying about 83% as much into the EU budget as the UK currently does. It would also require keeping current EU regulations (without having a seat at the tab le when the rules are decided). Another option is ‘doing a Switzerland’ and negotiating bilateral deals with the EU. Switzerland still faces regulation without representation and pays about 40% as much as the UK to be part of the single market in goods. But the Swiss have no agreement with the EU on free trade in services, an area where the UK is a major exporter. A further option is going it alone as a member of the World Trade Organization. This would give the UK more sovereignty at the price of less trade and a bigger fall in income, even if the UK were to abolish tariffs completely. Brexit would allow the UK to negotiate its own trade deals with non-EU countries. But as a small country, the UK would have less bargaining power than the EU. Canada’s trade deals with the United States show that losing this bargaining power could be costly for the UK. To make an informed decision on the merits of leaving the EU, voters need to know more about what the UK governme nt would do following Brexit. This is the first in a series of briefings analysing the economic costs and benefits of Brexit for the UK. Economists for Brexit: A Critique Professor Patrick Minford, one of the ‘Economists for Brexit’, argues that leaving the European Union (EU) will raise the UK’s welfare by 4% as a result of increased trade. His policy recommendation is that following a vote for Brexit, the UK should strike no new trade deals but instead unilaterally abolish all its import tariffs. Under this policy (‘Britain Alone’), he describes his model as predicting the ‘elimination’ of UK manufacturing and a big increase in wage inequality. These outcomes may be hard to sell to UK citizens as a desirable political option. Our analysis of the ‘Britain Alone’ policy predicts a 2.3% loss of welfare compared with staying in the EU. This is only 0.3 percentage points better than Brexit without unilaterally abolishing tariffs which would result in a 2.6% welfare loss. Minford’s results stem from assuming that small changes in trade costs have tremendously large effects on trade volumes: according to his model, the falls in tariffs become enormously magnified because each country purchases only from the lowest cost supplier. In reality, everyone does not simply buy from the cheapest supplier. Products are different when made by different countries and trade is affected by the distance between countries, their size, history and wealth (the ‘gravity relationship’). Trade costs are not just government-created trade barriers. Product differentiation and gravity is incorporated into modern trade models – these predict that after Brexit the UK will continue to trade more with the EU than other countries as it remains our geographically closest neighbour. Consequently, we will be worse off because we will face higher trade costs with the EU. Minford’s assumption that goods prices would fall by 10% comes from attributing all producer price differences between the EU and low-cost countries to EU trade barriers, ignoring differences in quality. Sin gle Market rules (for example, over product safety) facilitate trade between EU members as it creates a level playing field. Minford’s assumption that the Single Market merely diverts trade from non-EU countries is contradicted by the empirical evidence. Minford also overlooks the loss in services trade that would result from leaving the Single Market, such as ‘passporting’ privileges in financial services. Minford’s approach of ignoring empirical analysis of trade data seems predicated on the view that because statistical analysis is imperfect, it should all be completely ignored. But such statistical biases may reinforce rather than weaken the case for remaining in the EU. Theories need grounding in facts, not ideology. Bibliography https://fullfact.org/europe/our-eu-membership-fee-55-million/https://www.reuters.com/investigates/special-report/britain-europe-cost/https://www.ft.com/content/0260242c-370b-11e6-9a05-82a9b15a8ee7https://www.ft.com/content/61221dd4-d8c4-11e6-944b-e7eb37a6aa8e?mhq5j=e5http://www.nortonrosefulbright.com/knowledge/publications/115128/mifid-ii-mifir-serieshttp://uk.reuters.com/article/uk-britain-eu-banks/banks-planning-to-move-9000-jobs-from-britain-because-of-brexit-idUKKBN184132http://www.ey.com/Publication/vwLUAssets/ey-uk-eu-planning-for-uncertainty/$File/ey-uk-eu-planning-for-uncertainty.pdfhttps://www.reuters.com/investigates/special-report/britain-europe-cost/https://www.accountingweb.com/community/blogs/geoff-collings/the-effect-of-brexit-on-uk-accountinghttps://www.accountancyage.com/2016/07/21/what-brexit-means-for-accounting-employment-and-taxation-law/ http://www.europarl.europa.eu/RegData/etudes/BRIE/2016/587384/IPOL_BRI(2016)587384_EN.pdfhttps://www.ceps.eu/system/files/WD% 20429%20AB%20et%20al%20Brexit%20Applied%20Economics.pdfhttp://www.frbsf.org/education/publications/doctor-econ/2005/january/financial-markets-economic-performance/https://www.ft.com/content/74708d46-c6ca-11e6-8f29-9445cac8966f Mishkin, F. (2012).  Introduction to Financial Markets. [online] Www2.econ.iastate.edu. Available at: http://www2.econ.iastate.edu/tesfatsi/finintro.htm#FMI [Accessed 10 Sep. 2017].