Tuesday, May 26, 2020

ACT Compass Essay Samples

ACT Compass Essay SamplesThis time of year, when the students sit down to write their ACT Compass essays, they need to make sure that they know how to use the ACT Compass essay samples. They need to get as much assistance as possible from an ACT tutor. Without a good instructor, it is difficult to know where to start, or even how to go about it.You should be working with college counselors and your local college counselor in order to get help from them. This will give you an idea of what to expect. If you do not have one, you need to figure out what it is that you can use.ACT Compass essay samples are usually very straightforward and need only basic instructions. Some of them have some pages of steps to follow before you start writing. You do not need to be in a hurry, so go at your own pace. Remember, you are taking an exam.Go ahead and talk to your college counselor. He or she can tell you more about how the test is done, and what you can expect from the test. Your counselor may al so be able to give you advice on how to study for the test.Most of the tests are given in a particular section, with each question in a specific area. When you take the SAT, it is the logic section. This is not the case with the ACT. Your professor will decide what questions to ask and which areas to cover.Some tests only give you half of the individual test section. The questions will be in a different category for each section. For example, one section may include geography, another may include U.S. history, and another may include math.One last thing, you do not have to worry about remembering all of these concepts. The ACT Compass essay samples are relatively short and easy to remember. Just remember that the questions are in a particular category and not ones that are randomly thrown at you.

Saturday, May 16, 2020

The Movie Wit Essay - 728 Words

The Movie Wit In the movie Wit, English literary scholar Vivian Bearing has spent years translating and interpreting the poetry of John Donne. Unfortunately, she is a person who has cultivated her intellect at the expense of her heart. Both colleagues and students view Bearing as a chilly and unfriendly person lost in her private world of words and mysterious thoughts. At the age of 48, she is diagnosed with stage-four metastatic ovarian cancer. Dr. Kelekian wants her to take eight high-dose experimental chemotherapy treatments for eight months. He warns her that she will need to be tough to rely upon large reserves of inner courage and willpower. Vivian tries to remain tolerant as she suffers through questions†¦show more content†¦Although Vivian has used her intellect and her dry wit as a shield to carry her through life, these are of little value in the face of death. She sees her reliance to concepts and her apathy to others mirrored in the actions of Jason Posher an ambitious clinical fellow working under Dr. Kelekian. He comes in and out of the movie and seems to treat Vivian as â€Å"un-human.† Throughout the whole movie he asks her â€Å"how are you feeling today Vivian,† but the way he says it is so unfeeling and cold. At the end of the movie when she is actually dead he asks, it just shows how much doctors really do not have any attachment what so ever to patients in today’s medical model. Eventually Vivian realizes that the chemotherapy treatments have failed. She turns to Posner for comfort but hes unable to help. Late one night, she talks to Susie her nurse, about her fears about death. They share a Popsicle in a precious moment of deep intimacy. Susie carefully raises the subject of the options available should Vivians heart stop, suggesting she may want to have Dr. Kelekian note her preference on her chart. Vivian chooses to be DNR (Do Not Resuscitate). Later, as Vivian lies in a near coma, Susie tenderly rubs lotion on her hands. Small acts of kindness characterize her caring. Which just shows how caring and important nurses really are in our hospital environment. At the end of the movieShow MoreRelatedAnalysis Of The Movie Wit1105 Words   |  5 PagesThe movie Wit is a heartfelt drama that I would consider a must see for those aspiring to enter any field of medicine. The movie is centered around the main character, Vivian Bearing, a strict English profess or who specializes in the 17th century British poetry of John Donne. The film begins with Vivian Bearing discussing with her physician, Dr. Kelekian, the course of treatment for her recent diagnosis of advanced ovarian cancer. Vivian agrees to participate in a very aggressive experimental treatmentRead MoreThe Dilemma Of The Movie Wit Essay1145 Words   |  5 PagesThe Dilemma in the Movie WIT The film WIT, produced by Simon Bosanquet, clearly defines poor bedside manner in all levels of medicine, from the radiologist who performed the x-ray to the physicians in charge of the patient’s care. The film is based on a seventeenth century poet professor, Vivian Bearing, who gets diagnosed with stage IV ovarian cancer that has already metastasized. Professor Bearing goes through intense series of experimental chemotherapy agents that are detrimental to her healthRead MoreAnalysis Of The Movie Wit791 Words   |  4 PagesThe movie â€Å"Wit† is a great educational tool for healthcare professionals in terms of dealing with terminally ill patients. It teaches that nurses and medical professionals should always remember that their patients are not a case nor illness nor experiment but rather human beings with souls and pains. Palliative care is one of the most disputed issues of worldwide importance. While bureaucrats in different countries are making laws on the us e of palliative drugs, patients with excruciating painsRead MoreEssay on Perspective on the Movie Wit638 Words   |  3 PagesPerspective on the movie Wit When I watched the film â€Å"Wit† at first, I became curious to the reason why it was entitled â€Å"Wit†. The overall plot of the story seems so simple but there are a lot of twists which become clear as the story unfolds. In the latter part of the film, I realized that it has been given the title wit because in the end, Vivian recognized that what is more important than intellectual learning is the human compassion that she gets just when she needs it the most. Read MoreReflection on Wit the Movie Essay784 Words   |  4 PagesReflection Paper on Wit Launa Theodore A universal constant about being a patient is vulnerability and loss of control. In the movie Wit, starring Emma Thompson, you get to see all these and more. You get to see another side of the medical profession that shows blatant disregard for medical humanities, the similarities between intellects and the simple art of caring by a nurse who is not an intellect. Wit is the story of an intellectual, Vivian Bearing being diagnosed with stage four ovarianRead MoreMovie Review : Wit ( 2001 )1074 Words   |  5 PagesEspejo, Roussel Anne A. 3NUR3 Movie Review: Wit (2001) The film Wit is about an English professor named Vivian Bearing who was diagnosed of stage IV ovarian cancer. Having been diagnosed with these type of terminal cancer, she felt fearful and as she battles with it, she discovered the difficulties facing her impending death. As nurses, we will encounter such situations wherein we come across those patients who have been terminally ill and as nurses we need to guarantee that we can promote lifeRead MoreAnalysis Of The Movie Wit, Nurse Susie s Character1183 Words   |  5 Pageshuman beings, this is seen especially in technologically advanced societies as exemplified in the movie Wit. In addition to this new problem, there are clear establishments of hierarchy between medical professionals such as Doctors and nurses as well as the emotional detachments with the patients which can lead to patients feeling left out and alone. In the movie Wit, Nurse Susie’s character in this movie was essential to display the importance of having the emotional support between medical professionalsRead MoreThe Play Wit Is A Movie Based On A Play About A Woman1230 Words   |  5 PagesThe Play Wit is a movie based on a play about a woman named Vivian Bearing whose life changed when she is told she has Stage IV ovarian cancer. All through the movie, one is presented with examples of health psychology and treatment of terminal illness. Three main themes stand out in the Wit are patient provider communication, death and caregiving. The first theme presented in the film is patient provider communication. From the start of the film, the interaction between patient and doctor is shownRead MoreThe Movie Wit Exemplifies How Vulnerable Patients During An Outpatient And Hospital Setting Can Often Be Treated Unfairly1010 Words   |  5 PagesThe movie Wit exemplifies how vulnerable patients in an outpatient and hospital setting can often be treated unfairly. Vivian is an English professor of 17 century (John Dunn) poetry. She was newly diagnosed with stage four metastatic ovarian cancer. Her doctor, Dr. Kelekian has explained to her that the best choice of treatment would be experimental chemotherapy. He offered her no alternatives or second opinions and made the decision right then and there that she should do the experimental studyRead MoreAnalysis Of Wit And How It Positively Portrays Nursing1274 Words   |  6 PagesWit Movie Analysis What is nursing? According to Taylor, Lillis, LeMone, 2015, the American Nurses Association (ANA) defines nursing as â€Å"the protection, promotion, and optimization of health and abilities, prevention of illness and injury, alleviation of suffering through the diagnosis and treatment of human response, and advocacy in the care of individuals, families, communities, and populations† (ANA, 2010) (p. ). This definition not only defines nursing, but it also incorporates the role of

Wednesday, May 6, 2020

Change in Values and Perspectives in Streetcar Named...

Adversity can present itself in a wide range of severities, and it can have drastic effects on an individual. A man is insensible to appreciate prosperity until he has gone through some kind of adversity. Hardships and adversity develop and shape a person’s identity and also plays a big role in shaping one’s personal values. John Locke, a famous philosopher, once said that â€Å"Let us suppose the mind to be, white paper void of all characters, without any ideas. How comes it be furnished? To this I answer, in one word, from experience†. The quote says that humans are born like clean slates and adversity plays a major role in shaping people. In the modern play A Streetcar Named Desire, the author, Tennessee Williams, suggests that individuals are blank slates and adversity plays a major factor in shaping their values and their perspective on things. This is shown through the characters of Blanche Dubois, Stella Kowalski and Stanley Kowalski. Living on plantation in Laurel Mississippi, Blanche Dubois considers herself a southern Belle. Her life at Belle Reve does not fulfil her dreams that she once envisioned and instead she found herself assuming responsibilities of huge proportions. She was left to incur al financial debts, while having to pay for the costly funerals of her relatives. At last she was unable to pay her debts and she had to give in and lose her beloved land. In addition, she faces the adversity of lifelong guilt because of her making a cruel remark to her lateShow MoreRelatedLooking Back Upon Civil Rights, WomenS Campaign For Suffrage1250 Words   |  5 Pagesto the chagrin of men. In 1947 Tennessee Williams produced his classic play A Streetcar Named Desire. While similar in their quest to bring women’s struggles to the forefront, clashing eras resulted in different literary products. Tack on that Williams, a man, produced a work depicting the environment for females at the time, and these pieces paint a picture of two different times for women from distinct perspectives. The Yellow Wallpaper and A Streetcar Named Desire bear a striking resemblance inRead MoreAnalysis Of A Streetcar Named Desire 1702 Words   |  7 PagesPractice Essay: Emilia Kelly The two texts of Enduring Love and A Streetcar named Desire show privilege of one way of perceiving the world over the other in their conclusions. Ian McEwan’s Enduring Love, shows favour of Joe’s scientific and rational view but also demonstrates that it is flawed. Similarly, Tennessee Williams shows that realism in inevitable but is not always desirable in the play A Streetcar Names Desire. Both texts explore explore the responses of their protagonists of a crisisRead MoreWhos Afraid of Virginia Woolf? Articulates the Crises of Contemporary Western Civilization867 Words   |  4 Pagessources. First it establishes a link with the dramatists of the thirties such as Eugene ONeill (1888-1953), Tennessee Williams (1911-1983) and Arthur Miller (1915-2005). These dramatists had in their plays critiqued America as it moved from confidence to doubt. In a land of success they wrote obsessively of the unsuccessful. Their characters such as Blanch Du Bois in Street Car Named Desire(1947), Joe Keller in All My Sons (1947), Willie Loman in Death of a Salesman (1949) and Maggie the Cat inRead MoreEssay on 103 American Literature Final Exam5447 Words   |  22 Pagesimportant theories? (A) Many modern neuroses can be traced to the endowment of the individual with too much personal freedom and the modern easing of traditional sexual codes and restrictions. (B) The self is grounded in an â€Å"unconscious,† where forbidden desires, traumas, and unacceptable emotions are stored. (C) Most psychological problems can and should be treated by new medications. (D) Patients should deal with traumatic experiences and their resulting fears by repressing them. Speaking about or analyzingRead MoreProject Mgmt296381 Words   |  1186 PagesConflict management 12.2.7 The art of negotiating 12.2.3.5 Change requests Chapter 13 Monitoring Progress Chapter 5 Estimating Times and Costs 6.4 Activity duration estimates (.3) 6.4.2 Estimating tools (.1.3.4) 6.3.1 Identifying resources 7.1 Activity cost estimates (.2.3.4.5) 5.1.2.4 Delphi method Chapter 6 10.5.3 Cost/schedule system (.1) 6.6 .2.1 Time performance 7.2.3.1 Cost baseline development 7.3.2.1 Earned value system (F.4) 7.3.2.4 E.V., performance status report 7.3

Tuesday, May 5, 2020

Its a rainy day today! I am sitting at my window and watching the beauty of nature Essay Example For Students

Its a rainy day today! I am sitting at my window and watching the beauty of nature Essay Its a rainy day today! I am sitting at my window and watching the beauty of nature. This is great sight! I love the scenes the nature has created today. Let me share it with you! The falling water droplets make the air cool and environment calm. When it starts raining slowly every one rushes to safe place to save them. Women rush to roof to take their cloth down to save from getting wet. Small children gets excited. You can easily see them jumping and trying to come out to take a feel of rain. Have you watched the scene on roads when it starts raining. à ¢Ã¢â€š ¬Ã‚ ¦ ha ha its funny scene. Some people try to escape by running/ some try to take shelter under others roof / some take bag or books magazines on their head and try to escape. But this is all when it is weak rain. à ¢Ã¢â€š ¬Ã‚ ¦ but when it is heavy rain one has no way. Even umbrellas are insufficient. The heavy lightning with thunderous soundà ¢Ã¢â€š ¬Ã‚ ¦.. God save us! Prays the poor in his hut. Every one comes out on window and peeps out side scene. If you have a field in front you will hear songs of frog. Have u seen them when they speak/ their vocal sac. This seems like a baloon. The old ponders the rain scene and remembers his child hood and young days. He never forgets to guard his grand children waiting to jump in rain. Still u see the eager ness of children if they could have been permitted to take a bath. What is more that when it rains with heavy wind. U shut your door and window. And still manage to peep out side! à ¢Ã¢â€š ¬Ã‚ ¦Ha ha ha !à ¢Ã¢â€š ¬Ã‚ ¦ Hands off to God à ¢Ã¢â€š ¬Ã‚ ¦.on this beautiful scene creation. How beautiful is the scene of nature! The black thunderous cloud, the fading day light due to its darkness, birds rushing to their nests. And the unique beauty of raining. Well this is not all. When it stops rainingà ¢Ã¢â€š ¬Ã‚ ¦. Its a different pleasure! à ¢Ã¢â€š ¬Ã‚ ¦. Small water droplets droping from wet leaves one after one.. creating different sounds when droping on water/ dry leaves/ wood or metal. Have you heard them! They sound great! Small children making paper boats and sailing them. On low lands water are logged. People cross through water and the unique sound is created by their movement. Some thing like chrrrrr chrrrrr chrrrrrà ¢Ã¢â€š ¬Ã‚ ¦ Ha ha ha its funny. The rainbow is formed. Birds come out. They start twitering again. This all sounds so soothing to mind and soul. à ¢Ã¢â€š ¬Ã‚ ¦.If I could be an artist and paint them. If I could be a poet and caricatured all that I have seenà ¢Ã¢â€š ¬Ã‚ ¦. But I am not any of them.. so what! I am the obserber. I feel them and I have shared it with u! I am happy with what I am! Am I right?

Thursday, April 16, 2020

Small Business Plan free essay sample

The three quality approaches which are used by businesses to satisfy customer expectations are quality control, quality assurance and also total quality management. Quality Control is the use of inspections at various points in the production process to check for problems and defects. In order to reduce complaints from customers for the goods and services provided Ripe and Ready Fruit Vega shall implement monitoring of goods on display and the performance of employees to ensure quality control. Quality assurance is the use of a system so that a business achieves set standards in production. The system that is to be used by Ripe and Ready Fruit Vega is one which involves selecting only the best produce from goods bought. Total quality management is an ongoing, business-wide commitment to excellence that is applied o every aspect of the businesss operation. The focus of Ripe and Ready Fruit ; Vega is the customers and their satisfaction huge efforts are put in to the acquisition to the resources through to the delivery to the goods to the customers. We will write a custom essay sample on Small Business Plan or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The implementation of total quality management can improve the price competitiveness of the business and the quality of the products provided to attain competitive advantage. 6. Impact on ultimate business success The goods, production processes and quality management involved in the running of Ripe and Ready Fruit ; Vega all have an impact on the ultimate success of the equines as it deals with the quality of the goods and services provided to the customers in order to satisfy their needs and wants. By acquiring the goods from markets it ensures that it is only the freshest of produce giving the business an advantage over potential competitors in the area. As it is a fairly new business and the chances of competitors in the same district very high it is important that total quality management is continuing adapting in order to improve and excel all aspects of the business to maintain a competitive edge over competitors. Part B: Marketing 1 . Target market for products Target market refers to a group of customers with similar characteristics who presently, or who may in the future, purchase the product. There are three main types of approaches towards identifying your target market; the mass marketing approach, market segmentation approach and an extension of the latter is niche marketing. Ripe and Ready Fruit ; Vega uses the market segmentation approach as the products sold are mainly for those which are above 21 and provide for themselves. 21 is the age at which most young people leave their parents home and find a home for themselves and is the age at which they provide for themselves and eve a stable financial state. 2. Details of marketing strategies Product Ripe and Ready Fruit Vega offers a large variety of high quality fruit and vegetables for the use of customers. A group of employees will be assigned the task of the acquisition of the goods which will be from the Sydney Markets ensuring that the produce will be of the freshest and highest of standards for the customers. Price The pricing of products is reasonably fair and are raised and lowered in accordance to the prices of our competitors and the ease in which the products are acquired as some goods can be out of season and will be more expensive than those which are in season. Correct pricing is essential as if the price is set too high it could result in lost sales and if the price is set to low it may give customers the impression that it is a dodgy product and that the business is not to be trusted. Promotion the promotion of a business such as Ripe and Ready Fruit ; Vega will largely involve word of mouth, the use of social media sites such as Faceable, Mainstream and Twitter and adds in the local newspaper close to the big stories in order to ensure a lot people will see the advertisement. Place this involves the way n which the product gets to the customer. The product will be placed in the shop in Main Street, Blacktops. This area has a high level of traffic which will improve the chances of sales and profits for Ripe and Ready Fruit ; Vega. 3. Impact on Ultimate business success The businesss success relies heavily upon the marketing strategies implemented. The use of inappropriate marketing strategies will result in a decline in profits and capital which will lead to the eventual closing of the Ripe and Ready Fruit Vega. The marketing strategies shown will ensure the businesss success in the long term. The marketing strategies that are implemented will ensure customers receive high quality, high standard fruit and vegetables at a reasonable price. The location of the store will ensure good sales as it is located in an area with high consumer traffic. The promotion strategies implemented will be sufficient for the short term, but as it builds its revenue then it will be possible to invest in better and more effective promotion strategies.

Friday, March 13, 2020

The Upstream-Downstream Hypothesis And Corporate International Diversification Theory The WritePass Journal

The Upstream-Downstream Hypothesis And Corporate International Diversification Theory ABSTRACT The Upstream-Downstream Hypothesis And Corporate International Diversification Theory ABSTRACTINTRODUCTIONUPSTREAM-DOWNSTREAM HYPOTHESISINTERNATIONALIZATION AND SYSTEMATIC RISKINTERNATIONALIZATION AND LEVERAGECORPORATE INTERNATIONAL DIVERSIFICATIONAGENCY COSTS AND FINANCIAL STRUCTURE OF MULTINATIONALSINTERNAL CAPITAL MARKETSAGENCY COSTS OF DEBTCONCLUSIONREFERENCERelated ABSTRACT The study of multinationals has received much attention in literature. Certainly, it has become a subject of controversy among the scholars. On the one hand, some researchers including Reeb Mansi (2001), Chkir Cosset (1999) and Chen et al. (1997) point out to the diversification benefits to multinationals due to risk reduction inherent in operations within imperfectly correlated markets. While on the other hand, the more recent research by Reeb, Kwok Baek (1998) and Bartove, Bodnar Kaul (1996) notes a positive relationship between internationalization and high debtholder monitoring costs.Against this backdrop, this analysis suggest an alternative upstream-downstream hypothesis whereby the overall effect of internationalization on the risk and leverage of multinationals is dependent on the market conditions of the host and target country. The paper examines the theory that multinationals should have lower risk and higher leverage than non-multinationals and explains the difference between this theory and the upstream-downstream hypothesis. Also included in this analysis, is an explanation for the documented puzzle that multinationals tend to have lower levels of long-term debt but more use of short-term debt than non-multinational firms. INTRODUCTION The study of multinationals has received much attention in literature. Over the last few decades, it has become a subject of controversy among the scholars. It has generated more heat than light with some suggesting diversification benefits to multinationals, while others point out to the positive relation between a firm risk and internationalization. Against this backdrop, we suggest an alternative upstream-downstream hypothesis whereby the overall effect of internationalization on the risk and leverage of multinationals is dependent on the market conditions of the host and target country. Previous researchers including Reeb, Mansi Alee (2001), Chkir Cosset (2001) and Chen et al. (1997) found a positive relationship between internationalization and debt ratio due to risk reduction inherent in operations within imperfectly correlated markets. On the contrary, Burgman (1996) and Lee kwok (1988) demonstrated a negative relationship between internationalization and debt ratio that results from increased risks due to agency costs, and political and exchange rate risks. Similarly, while the findings obtained from Initial research by Hughes, Logue Sweeny (1975) are consistent with the diversification benefits, the more recent research by Reeb, Kwok Baek (1998) and Bartove, Bodnar Kaul (1996) found a positive association between the risk of a firm and internationalization. Additionally, while focusing on leverage, Burgman (1996) noted that internalization may result in higher debtholder monitoring costs and thus significantly reducing the levels of leverage. Consistent with greater agency costs, Lee Kwok (1988) and Chen et al. (1997) found that the domestic corporations would in general tend to have significantly higher debt ratios relative to the MNCs. Clearly, from what can be discerned, the study of internationalization of firms has become a controversial issue among scholars. This analysis is thus an attempt to shed light on the above by exploring on both international diversification benefits and the upstream downstream hypothesis. We begin out analysis by examining the upstream and downstream hypothesis UPSTREAM-DOWNSTREAM HYPOTHESIS Kwok Reeb (2000) argue that there is an increase in risk and a reduction in debt usage when firms from stable economies make investments internationally (downstream). Conversely, the risk is reduced and debt usage increased when firms from weaker economies make investments internationally (upstream). It therefore follows that the overall effect of internationalization on firm’s leverage and risk is dependent on the characteristics of the home and target economy. The firms’ behaviour towards international activity or rather the overall effect of internalization on firms leverage and risk is dependent upon whether the firm is moving upstream or downstream (Kwok Reeb 2000). For example, for multinationals based in the United States (which is among the most stable economies in the world), their overseas expansion tend to exacerbate risk. This increase in risk may not be totally offset by the risk reduction due to international diversification and thus resulting in a downward adjustment of the firms leverage. On the converse, for firms in the emerging economies, investment internationally in the developed economies leads to a reduction in corporate risk and subsequently an upward adjustment of leverage. INTERNATIONALIZATION AND SYSTEMATIC RISK The upstream downstream argument can be extended to the systematic risk area. Multinationals, by definition, have their operations diversified into various countries. The systematic risk of an ith operation can therefore be defined as É“i (Reeb, Mansi Allee 2001). É“i = (Ï im ÏÆ'i)/ ÏÆ'm Where Ï im represents the correlation between the market return and firms return ÏÆ'i represents the firms return standard deviation    ÏÆ'm refers to the market returns standard deviation An ith operation is thus influenced by the nature of the business operation and the economic system of the country where the operation takes place (Reeb, D.M., S.A. Mansi and J.M. Allee, 2001). Take for example a project that is located in a more volatile emerging economy. This project would tend to have a higher value of total risk, ÏÆ'i. Unless there is an offset of the high standard deviation by a lower correlation coefficient Ï im, the systematic risk É“i would be higher. On the converse a project that is located in a more stable economy tend to have a lower value of its total risk, ÏÆ'i. Similarly, unless there is a substantially higher value of correlation efficient Ï im, the systematic risk É“i tend to be lower. For any multinational, its overall systematic risk is simply the weighted average of the betas (É“i) of all its business operations within the various countries (Reeb, Mansi Allee, 2001).    É“mnc = Æ © Ã… ´i É“i Where Ã… ´i represents a fraction of the total capital invested by the MNC in the ith countrys operation. Therefore, for a firm that is headquartered in a more stable economy, expansion of its operations into a less stable market would increase the overall beta (É“mnc) of the firm, due to potentially greater environmental risk for the new operation (Reeb, Mansi Allee, 2001). Conversely, when a firm that is headquartered in an emerging economy expands its direct investments into a developed economy, its overall beta may decrease. The ability to arbitrage markets may as well differ due to the economic differences of the home and target economies (Reeb Kwok 2000). Take for example, the shift of income. The ability to have the income shifted among different tax regimes depends on the degree of sophistication of the host and target government (Reeb Kwok 2000). Firms that are based in economies which are more developed and with greater resources, tend to have fewer opportunities for shifting their income (Reeb Kwok 2000). In contrast, firms that are based in the volatile emerging economies tend to have different opportunities to arbitrage labour and capital markets (Reeb Kwok 2000).   That is, firms that are moving upstream have more opportunities to hire employees with different sets of skills and experience than those that are moving downstream. This implies that firms’ behaviour towards international activity varies with the characteristics of the home and target market. Therefore, the overall effect of internationalization on the firms risk and leverage depends on whether the firm is moving upstream or downstream. INTERNATIONALIZATION AND LEVERAGE Aligning with the above, the association between internationalization and firm risk suggests a leverage effect as well. Traditional capital structure theory posits that as firm risk increases the debt utilization decreases (Reeb Kwok 2000). Hence, for firms that are based in the more volatile emerging economies, their overseas expansion may lead to more debt utilization, as they may gain access to debt that was not previously available. The converse is also true. This view of the leverage aspect of upstream-downstream hypothesis suggests a negative association between leverage and internationalization for firms based in the more developed economies and vice versa (Reeb Kwok 2000). That is, firms that are moving upstream tend to have a positive relationship between the firms leverage and internationalization while those moving downstream tend to have a negative association. This implies that the overall effect of internationalization on the leverage of multinationals is equally dependent on the home and target market conditions. This next section will explore on the corporate diversification theory and the effect of agency costs and internal capital markets on the firms’ leverage. In particular, the agency conflicts and efficiency of internal capital markets will be used in providing an explanation as to why multinationals tend to have lower levels of long-term debt but more use of short-term debt than non-multinational firms. CORPORATE INTERNATIONAL DIVERSIFICATION The corporate international diversification theory posits that multinationals should have lower risk and higher financial leverage than the domestic corporations (Doukas Pantzalis 2001).   One of the main reason as to why corporations would not take 100% debt in their capital structure is because of the risk of insolvency (Doukas Pantzalis 2001). Given that this risk is not linear but increases with higher debt levels, firms can thus limit their leverage in order to avoid incurring bankruptcy costs. There are a variety of business risks as well as opportunities that stem from corporate international diversification. Business risk which is typically measured by the volatility of the operating net income refers the cost of financial distress or rather bankruptcy cost (Doukas Pantzalis 2001). Both the domestic and multinational firms are also faced with exchange rate risk. That is, the risk that fluctuations in currencies will affect the demand and supply, price and cost characteristics of the corporation. There is also the risk of higher agency costs which faces multinational firms. MNCs face higher agency costs due to auditing costs, monitoring costs, different accounting systems, different legal systems, sovereignty uncertainties, language differences, labour market and capital imperfections as well as the different asset structures (Doukas Pantzalis 2001). Agency costs are known to have a significant impact on the optimal debt level as will be discussed below (Doukas Pantzalis 2001). Political risks arise from political events that may have adverse effects on the economic wellbeing of the firm. For example, potential conflicts may arise between the goals of the government and those of the foreign firms. This is especially the case with foreign direct investment, given their effect on the host economy. Among the benefits put forth by scholars is the view that through international diversification, firms are able to increase on their debt capacity and reduce their bankruptcy costs (Doukas Pantzalis 2001).   It has been argued that risks are reduced by portfolio effects due to the imperfect correlation of foreign cash flows. In this regard, Fatemi (1984) and Agmon Lessard (1977) point out that diversification benefits reduce the bankruptcy costs and increase the debt usage by multinationals. AGENCY COSTS AND FINANCIAL STRUCTURE OF MULTINATIONALS The documented puzzle that multinationals tend to have lower levels of long-term debt but more use of short-term debt than non-multinational firms warrants an explanation. There are many reasons as to why one would expect multinationals to have different leverage ratios relative to the domestic corporations. First, given the international nature of their operations, MNCs are expected to have access to more capital sources unlike the domestic firms (Doukas Pantzalis 2001). Therefore, they can raise more capital via foreign debt financing and at more favourable terms than the domestic corporations (Doukas Pantzalis 2001). Consider, for example, the case of multinationals that have subsidiaries in countries with different tax rates. These multinationals can benefit a lot by borrowing through foreign affiliates exposed to high tax rates, hence increasing their tax shields (Butler 1999). It therefore follows that due to access to external sources of financing, these multinationals should in general have higher debt ratios than the domestic firms (Butler 1999). Another reason as to why Multinationals should exhibit higher debt ratios than non-multinational firms is that the foreign debt can be used as a hedging instrument against the risk of foreign exchange (Butler 1999). Given that multinationals have higher levels of foreign exchange exposure in comparison to the domestic firms, they are thus expected to make greater use of debt financing than the local firms (Butler 1999). Additionally, since multinationals are subject to political and exchange rate risk exposures, it is expected that these multinationals should have higher overall debt ratios relative to the local firms (Butler 1999). Thirdly, due to industrial and geographical diversification of operations of MNCs, they are expected to have lower business and financial risk than the domestic firms (Doukas Pantzalis 2001). This has the impact of reducing the cost of debt and therefore increasing leverage. This implies that the leverage of multinationals should have a positive relation with foreign involvement while financial distress should have a negative and greater bearing on DMCs leverage (Doukas Pantzalis 2001). However, while hedging, financial distress, liquidity and operating considerations imply that multinationals are more likely to have greater leverage than the domestic corporations, findings from empirical studies show that these multinationals have instead lower long-term leverage relative to the domestic firms (Doukas Pantzalis 2001). Three possible explanations can be given for this finding. These include: (Doukas Pantzalis 2001) Efficiencies of internal capital markets Agency costs of debt Legal and institutional differences across counties where multinationals operate. INTERNAL CAPITAL MARKETS Since MNCs have numerous divisions operating across countries, they tend to create extensive internal capital markets which may provide cheaper financing relative to the external markets (Doukas Pantzalis 2001). Hence, where the internal capital market is efficient, MNCs tend to rely more on internal financing than the external one. As a result, they tend to have lower leverage than the domestic firms. Consequently, a non-positive relation between the firms leverage and its foreign operations can emerge when internal capital markets bypass external capital market informational asymmetries (Doukas Pantzalis 2001). In a recent study, Matsusaka Nanda (1997) and Scharfstein Stein (1997) examined the improved capital allocation in internal capital markets and the associated agency costs for firms that had diversified their operations. They found that diversified firms could use internal capital markets in funding profitable projects, which would not be financed in external capital markets due to agency costs and information asymmetries. This implies that the external debt financing need for multinationals can be attenuated and that the low levels of leverage for Multinationals should reflect the strengths of internal capital markets (Doukas Pantzalis 2001). This view certainly indicates a negative relation between industrial diversification and the leverage of multinationals. That is, MNCs debt ratios should exhibit a negative and more pronounced association with industrial diversification than the domestic firms. AGENCY COSTS OF DEBT The agency cost of debt effect on leverage of multinationals arises from their industrial diversification. Since their operations are geographically dispersed, the cost of gathering and processing information is generally more costly for MNCs than the domestic firms (Doukas Pantzalis 2001). Therefore, multinationals are expected to have more inherent agency problems between the debtholders and shareholders due to their diverse geographic structure. It therefore follows that bondholders will require higher interest payment on loans to firms that have greater monitoring costs and are more susceptible to asymmetric information problems (Doukas Pantzalis 2001). This implies that firms which have diversified their operations are more likely to have their debt ratios lower than domestic firms. Further, firms with greater foreign involvement are expected to have a negative and more pronounced relation between the firms leverage and agency costs of debt, than the domestic firms (Doukas Pantzalis 2001). Several authors have suggested that, unlike the domestic firms, multinationals are likely to support more debt in their capital structures. Burgman (1999), however, contests this claim and in fact argues that multinationals have, in the actual sense, less debt in their capital structure. He addresses whether factors such as the political and exchange rate risk and the agency costs can explain this phenomenon. The findings of his study show that multinationals tend to have higher agency costs and that diversifying their operations does not lower their earnings volatility. CONCLUSION Clearly, there are inherent business risks as well opportunities that stem from corporate diversification. While we do not ignore the cross-border benefits of corporate diversification, we suggest that the overall effect of internationalization on the firms risk and leverage can be predicted by an upstream-downstream hypothesis. REFERENCE Agmon, T. and D. Lessard, 1977. â€Å"Investor recognition of corporate international diversification†. Journal of Finance, 32:1049-55. Bartov, E., G. Bodnar, and A. Kaul,   1996.  Ã‚   â€Å"Exchange rate variability and the riskiness of US multinational firms: Evidence from the breakdown of Bretton Woods†. Journal of Financial Economics, 42: 105-132. Burgman, T. A., 1996. â€Å"An empirical examination of multinational corporate capital structure† Journal of International Business Studies, Vol 30, pp. 553-570. Butler, K.C., 1999, Multinational Finance, 2nd edition, Cincinnati, OH: South-Western College Publishing Chen, C.J. P., C.S. Cheng, H. J. Agnes, and K. Jawon, 1997. â€Å"An investigation of the relationship between international activities and capital structure† Journal of International Business Studies, p. 563-577. Chkir, I.E. and J.C. Cosset, 2001. â€Å"Diversification strategy and capital structure of multinational corporations†. Journal of Multinational Financial Management 11, 17–37. Doukas, J.A. and C. Pantzalis, 2001. Geographic diversification and agency costs of debt of multinational firms. Old Dominion University.   http://papers.ssrn.com/abstract=282850 {accessed on 30th December 2011} Fatemi, A. 1984. â€Å"Shareholders Benefits from Corporate International Diversification†, Journal of Finance Vol. 39 No.5. Hughes, L., D. Logue, and R. Sweeney, 1975. â€Å"Corporate international diversification and market assigned measures of risk and diversification†. Journal of Financial and Quantitative Analysis, 10:627-37. Kwok, C. Y. Chuck and D. Reeb, 2000.† Internationalization and Firm Risk: An Upstream-Downstream Hypothesis†, Journal of International Business Studies, 31, 4; 611-629. Lee, K., and C.Y. Kwok, 1988. â€Å"Multinational corporations vs. domestic corporations: International environmental factors and determinants of capital structure†. Journal of International Business Studies, vol 19, pp. 195-217. Matsusaka. J, and V. Nanda, 1997, Internal capital markets and corporate refocusing, Working Paper, University of Southern California. Reeb, D.M. and C. Kwok and H. Y. Baek, 1998. â€Å"Systematic Risk of the Multinational Corporation†, Journal of International Business Studies, Second Quarter. Reeb, D.M., S.A. Mansi and J.M. Allee, 2001. â€Å"Firm internationalization and the cost of debt financing: evidence from non-provisional publicly traded debt†. Journal of Financial and Quantitative Analysis 36, 395–414.Chkir Cosset (1999) Scharfstein, D.S, 1997, The dark side of internal capital market II, Working Paper, MIT press.

Tuesday, February 25, 2020

Pumping Up The ECONOMIC GROWTH Essay Example | Topics and Well Written Essays - 250 words

Pumping Up The ECONOMIC GROWTH - Essay Example This means that enhancing human capital will increase the quality of labor, which will in turn increase economic growth. The third factor that has to be considered is capital, an increase of which will increase economic growth. Capital is best increased by focusing on investment that improves the technology used. This will ensure that capital used in production produces more output with less usage of resources. However, the factors mentioned above have some detrimental effects, for example, using more resources to enhance economic growth results in the depletion of available resources. This means that future generations will have fewer resources with which to benefit themselves. The second detrimental factor is pollution, which usually occurs as resources are used to produce. The third factor is job displacement, which occurs because of an increase in technology that replaces human capital. The last detrimental factor in economic growth is cultural change, where existing cultures are continually replaced as economic growth is