MBA - Economics - MicroEconomics Essay Example | Topics and Well Written Essays - 750 words

MBA - Economics - MicroEconomics - Essay Example They are characterized by a lack of economic competition for the good or service that they provide and lack of viable substitutes. Results would show that under the Perfect Competition scenario, attaining profit maximization equilibrium at the given equations for cost and pricing would result to a loss for the company. The output may be high and the price low as compared to the Monopoly scenario but the overall effect is that the company does not gain from the venture. It is not surprising that it turned out that the firm will profit more from the monopoly situation because consumers do not have any alternative. Monopolies are expected to produce less and set it a higher price because there is no substitute available on the market. Consumers need the product and so they will buy in at whatever price is set thereby resulting to a decline in social welfare. The lack of competition results to less concern for efficiency and innovation. Products would experience little or no improvement. Since there are no available substitutes the consumer is forced to use the product which further leads to decrease in consumer welfare. Nonetheless, there is a concept which states that the loss of efficiency of firms can raise a potential competitor's value enough to overcome market entry barriers or provide incentive for research and new alternatives. The government may even step in and break the monopoly. According to the theory of contestable markets, monopolies can be forced to behave as if there were competition because of the risk of losing their monopoly to new entrants especially when barriers to market entry are low. It might also be because of the availability in the longer term of substitutes in other markets. This is seldom the case however.Under the perfect competition, we were able to determine that the firm would be making a loss. Does it follow then we should stop production The answer lies on considerations of different total costs levels and whether the firm is operating in the short run or in the long run. Why do even question whether it should continue or not Common sense would tell us that if we are not gaining anything from a venture then we should withdraw from it. However, production entails fixed costs which the firm should account for whether they manufacture or not. It may turn out that continuing production would be enough to cover the fixed costs. When the firm is geared for short run perspectives but is registering losses, it is advisable that it should still continue production provided that the Total costs (TC) is greater than total revenue (TR) and that total revenue is equal to total variable cost (TVC). If it fails to achieve one of these conditions, then it would be advisable to shut down so that they will only pay for the fixed costs. Even if the firm stops producing, it will have to continue to meet the level of fixed costs. Since whether the firm produces or not, it will have to pay fixed costs, it is better for it to continue production in an attempt to decrease total costs and increase total revenue, thus making profits. In the long run scenario, the condition to continue producing requires the price P to be higher than the Average Total Cost. If P is equal to ATC, the firm is indifferent between shutting down and continuing to produce. This case is different from the short run shut down case because in long run there's no longer a fixed cost because everything

Disputes between the European Union and the Rest of the world Essay Example for Free

Disputes between the European Union and the Rest of the world Essay Disputes between the European Union and the Rest of the world Introduction                   The sheer size of the EU sheer markets as well as its vast experience of more than forty years in negotiating international trade agreements has made it become the most powerful trading bloc in the world. Moreover, it has become a formidable power through trade, hence creating more problems with the rest of the world. The EU has increasingly used its market access as a bargaining chip to obtain changes within the domestic arena of its trading partners, starting with labor standards to development policies, and internationally, ranging from global governance to foreign policy. Therefore, this paper mainly analyses EU’s power in trade a factor that has made it create tension with the rest of the world. The analysis includes major dilemmas that are associated with how it exercises its trade power and point out why these strategies create tension with other international states. The argument also includes the need for the EU to refine it initial strategies of accommodation for it to successfully transform its structural power to be more effective and hence have a more legitimate influence.                   Among the first goals of the EU as a trade power is using its power to secure concessions from others on market access. This makes it function as an economic globalization determinant or shaper. Basically, the EU is using its trade power to achieve non-trade objectives that range from the export-specific rules flanking market integration such as social, environment and safety standards to a more political or strategic linkage (Haughton, 2007).The rest of the world is therefore left to wonder if such use of trade power ultimately matters in geopolitical terms. Power in trade                   When we compare the EU and the US, there is no significant difference in the way the two exercise their power in trade at the bilateral levels mostly through agreements that they often have over their access to the market for their goods, capital and services in other regions. Agreements with EU have usually been involved more on reciprocal concessions over tariffs, quotas, and technical barriers to trade. However, concessions can sometimes be asymmetrical, either due to the fact that the EU could be making steeper cuts, or due to the fact that the value of the EU cuts could be greater following the size of the market. Failure to withstand such asymmetries means that the EU, similar to the US, uses preferential bilateral agreements to pry open the available markets that are found in the South as an exchange for accessing its own markets. Regionally, EU power has taken the form of less specific reciprocal concessions. As more nations across the world join regional trading blocs, the aim of the EU is to realize economies of scale through bloc-to-bloc deals. Such first bi-regional trade agreement is still being negotiated since 2000 mainly involving the EU and Mercosur, which is a customs union between Brazil, Argentina, Uruguay, and Paraguay created in 1991. It is to be followed by ASEAN (the Association of South East Asian Nations) as new economic partnership agreements (EPAs) with, among others, the Caribbean countries and the Gulf Cooperation Council. It cannot be denied that in Latin America especially, have taken such moves partly in consideration to reaction by USA’s own drive towards regionalism.                   EU’s involvement in multilateral bargaining at the global level has been shaped by its relationship to the US. These two great trade powers have for so long been engaged in what is seen by the rest of the world as a battle of the titans, as each side has been trying to ensure that each of them has a continued access balance towards the market through trade and regulatory deals, if not, to resort to dispute settlement (Grabbe, 2006). As that continues, they have also tried using their trade power to exert their rule of ‘western hegemony’ over the developing world, especially towards the so-called ‘new issues’ that pertain to services as well as intellectual property that were initially introduced during the Uruguay Round. Of late little co-operation has existed between the EU–US regulatory and these two powers have kind of began pursuing sharply diverging tactics, that came up with opposing alliances during the Hong Kong meeting of the Doha Round in December 2005. Power through trade                   The EU tends to be more attached to not only multilateral forms of trade relations but also to the premises of embedded liberalism. Contrary to the US case; the EU’s use of trade in order to achieve non-trade objectives has some pride as a potential instrument of Europe’s geopolitical power. Whilst little doubt exists in regards to the EU being considered as one of the top players in world trade, there has been a lot of keen interest while assessing EU’s identity as a ‘power’ in general. They have however put across various qualifiers in characterizing a mode of influence that can enable them to manipulate others and make them perform according to the interest of the EU.                   Existence of the shift from a post-war to a post-Cold War paradigm of economic hegemony does not seem to be towards only increasing interventionism inside the affairs of trading partners, that even other nations apart from EU promotes. It has also taken other forms absent in the subservience of trade to security imperatives, the power to be yielded from asymmetries in such interdependence, and the ends of increased interdependence, as scrutinized under a mode demanding criteria of legitimacy. Even as the US tries to promote some specific features of an open trading system that tend to serve its domestic interests, the EU instead has been increasingly engaged in a more clever game where values, interests, and model are blurred. It does not just try to promote openness, but are more concern with openness ‘the EU way’. Considering the fact that the EU itself is a system of market liberalization, external efforts that it encourages are regarding replication more than domination                   Most groupings that have come up in the last decade seem to have done so majorly to increase their bargaining power within the trade negotiations against the EU and the US. They forget that having a closer relation to other regions around the world tend to be a means of enhancing the normative power of the EU and a reflection of this power. This is because such EU outstanding context and unique character as an integrative policy among other states is shown to be important. It is not US as a federal state which is relevant to integration among countries, but the EU as a federal union. Therefore, it seems the EU’s support for regional organizations like the Pacific Islands Forum and the African Union is linked to a particular expectation of contribution not only to the economic integration but also to the prevention, management and resolution of inter-state conflicts.                   However, while the EU has considered itself to be the judge of what is right or wrong as a trade power, there is some evidence showing that as a union it is indeed a conflicted trade power. This is a fact since within its different guiding principles; there are various policies which directly contradict each other (Teorell, 2010). Regionalism vs. Multilateralism                   A lot of debate has been going on, whether regional trade agreements have been indeed building blocks or they are just stumbling blocks for multilateralism. The claim by the EU has always been that they are indeed building blocks. This was demonstrated when it defended the relevance of its own approach to the Uruguay Round agenda; as both the EU as well as the GATT at the same time tried to explore the fresh basis of trade in services, of course, with diverse ambitions as to the extent of liberalization. While it was a key player in the launching of the Doha Round, it is also becoming an active promoter of regionalism.                   The question then left to ask is whether these two factions are compatible. Following the sudden jump in terms of free trade agreements to more than 300 like in 2001, the shocking thing is that the WTO has not been able to reach agreement even on a single case report towards any regional agreement in spite of them vowing to participate in the role of regional trade committees. This is in contrast to the Appellate Body which has taken on the issue, for example, they suggested on the need to apply some kind of ‘necessity test’, towards a recent ground-breaking case, where by Turkey and EU were condemned after they increased unnecessary barriers to Indian textiles when Turkey decided to enter its customs union with Europe. Following the move the EU is still drawing lessons. Of course, such judgment may act as an inspiration to the EU policy-makers in their endeavor devise strategies of accommodation trying to tame the trade-diverting effects on regionalism. As an alternative, on the region-to-region front, there could be a possible insertion of clauses that link the implementation of market access deals with progress on the multilateral front, just like it was done with ASEAN. EU’s regionalism can also come under conflict with bilateral agendas of their own partners. Trials by the EU’s strategy of encouraging regional co-operation in the Balkans have come into conflict following its use of trade linkages for domestic change.                   Also, as was realized in the Euro-Med context when the EU sought to draw lessons from past relations with the Mediterranean after its multi-lateralized its relations and encouraged trade among the southern partners by changing its rules of origins and allowance of accumulation, for example, aggregation between the value added to the southern nations. However, following lack of consensus between these economies, such approach has not yet been judged to bear fruit, (Knodt Jà ¼nemann, 2007). There could be a need for more drastic incentives. Continued systematic promotion of regionalism could be of harm indeed to the EU’s proclaimed development goals. Like, when some analysts argue that being engaged in urging of rapid regional integration in Francophone West Africa was seen as a great contributing factor towards the subsequent instability in the region. The EU sought free movement of goods in this case, but not people, but failing to provide a red istributive wealth mechanism that was to deal with adjustment costs and at the same time undermined government social programs.                   Moreover, most of the deals negotiated throughout the 1990s under the watch of the New Transatlantic Agenda between the EU and the US tended to be vulnerable to similar criticism. In a way they have had a trial to the feasibility of exporting the approach by the EU of market integration through regulatory mutual recognition by the US. However, still it is important for the EU and the US to design such agreements as well as their supporting mechanisms better and make them be open to those who are new who might take the approach of respecting the standards adopted trans-atlantically. Non-discrimination vs. Bilateral preferential relations                   What can be seen as a major variant on the multilateralism –regionalism dilemmas tend to be increasing tension between the vowed commitment of the EU to international trade law, more specifically the highly favored-nation (MFN) principle, as well as the desire of the EU to be able to maintain preferential trading relations with specific countries. The agreement by the EU to the concept of ‘trade distorting’ regimes that stems from some of its members colonial pasts, exceeding the entire preferential market access granted to ACP countries, may of course sound as an objective even more commendable as compared to the MFN pursuit of global justice. However, it is important for EU to be clear on the price it has to pay for this moral luxury. Therefore, establishing such tension between international law and special relations tend to be acting geopolitically pitting two sets of developing countries against one another.                   Likewise, the 2001 Everything But Arms initiative (EBA) involvement in granting duty and quota-free access to the entire exports but not where arms and munitions are involved from the least countries that are less developed has faced criticism for excluding the key crops such as sugar, rice and bananas until 2009, as well as for leading in discriminatory practices among developing countries. Vulnerable and small economies that have been included tend to be bound to displace the exports of the same but some countries were excluded. Some States like the Caribbean or the Bangladesh members of the ACP group got a chance to benefit from this preferential trading arrangement with the EU. The WTO has many times condemned such policies. However, most of the member states, like UK, France, or Portugal who are former colonial powers, would not be keen on abandoning a system that is designed to eradicate poverty for the poorest farmers around the world who have bec ome dependent on inflated EU prices. In this instance, the EU has chosen a classic strategy of accommodation: progressive graduation as well as the negotiation of transition systems. Based on the multilateral constraint, EU’s only remaining power tend to lie with determining the speed of transfer of adjustment costs with its trading partners and its import intermediaries.                   This kind of negative power is doomed to unpopularity. Therefore, by EU presenting a new deal like in 2005 of cutting guaranteed sugar prices by 36 per cent over four years, it was predictably criticized on all sides, attacked based on the fact that it was reforming the detriment of poor sugar exporting countries and it was failing to move much further. Somehow, the EU seems to have taken firm grounds stand, ironically, even playing around with the non-discriminatory obligations that are contained within the GSP, at least as under the rule of the WTO 2004 appellate body ruling on EU vs. India. In this case, India was challenging the EU’s modified GSP which tend to provide an additional margin of preference on the part of recipients with drugs enforcement policies where the Commission was involved in inventing the entire list of beneficiaries of the programme without considering any objective criteria. Seen as a brilliant compromise given to the EU given by the AB, the benefit of the doubt based on the fact that indeed the right to modify preferential treatment was not subject to a simplistic constraint of identical treatment among beneficiaries, (Tocci, N., 2007). The AB argued that different developing countries were not situated on the same way when it comes to their different needs and hence could possibly be subject to ‘performance requirements’ as long as the approach were objective, transparent, as well as non-discriminatory in the broad sense. What question perhaps remains to be tested is what are acceptable conditionalities more generally? In a sense, it was important for the EU to develop a more universal approach as to where to draw the line. Western Hegemony Vs. Mediating Power                   An area which has also brought tension is in the EU’s alliance strategy as well as the light it portrays on what kind of actor it really wants to become. As a matter of fact, is it possible for the EU to play the part of the nervous protectionist North (agriculture), the rich liberal North (services), as well as the mediator between the South and the North? Taking the ‘rich North,’ is it necessary for it to generally to always take the US side for it to protect their shared commercial interests? Or it should go for emphasizing its vocation as a mediating power on the global scene, especially between the developing world and the US but at the same time, increasingly, between different interests in the developing world itself? Just as was recently demonstrated by controversies in the Doha Round, not only do multilateral trade negotiations are asking how much liberalization, but they are also asking what kind of liberalization as well as for whose benefit The Uruguay Round basically represent the culmination of an assertive US–EU alliance bent towards a commercially driven line in addition to a grand bargain between their reluctant acceptance of (partial) opening on some tropical/agricultural products and a (delayed) opening on textile, as an exchange for introducing fresh issues within the newly created WTO. In particular, intellectual property issues have exposed the EU to a lot of criticism that comes from the developing world due to the fact it sided with the interest of US multinationals.                   This tension between the North – including the EU – and the developing world started way back. However, a lot of attempt has been made by the EU to establish a reputation as a champion of development including through its 2001 role, when it launched the ‘Doha development agenda. Some other promoted path-breaking declaration on trade and public health has been going on. Like it has opened the way for legalizing broad exemptions from intellectual property constraints during any imports on generic drugs to treat diseases such as AIDS. There are also other initiatives, for example the databank which was set up by the Commission’s Directorate General for Trade in order to assist developing countries in their market access strategies, and have enabled the EU begin to change the image it has in the WTO.                   Following what recently came up in the Doha Round is an indication again to the lack of commitment that the EU has in seeking to marry its natural alliance in most of the domains (not all) with the US and its development advocacy. For example, when a World Bank Study questioned the EU’s ‘demonstration strategy’ through EBA stating that once requirements such as standards as well as rules of origin were taken into account, it was realized that the US was actually more open to LDC exports as compared to the EU. On the other hand, there is failure by the EU to promote multilateral solutions that is capable of addressing perhaps the single most important factor that links trade and poverty such as the massive volatility as well as decline in the price of primary commodities. As a result if the EU is indeed committed to uphold an image as a ‘mediating power’ within the global political economy, it will have no option but to ac tively promote changes in the WTO which the US is likely to actively resist, (Marshall, M., Jaggers, K.,2010). However, a lot of failure has been manifested by the EU in exploiting a potentially promising strategy of accommodation like putting transatlantic economic as well as regulatory co operation at the service of multilateralism. Internal vs. external objectives                   Somehow, the manner in which the EU is exercising power through trade should be held up to special standards. Claiming consistency between its internal and external actions tend to be at the heart of its legitimate exercise of power. The EU has indeed faced difficulties in an attempt to lead by example in the area of trade. Like, in case where the single market has been premised based on the assumption that free movement of people is a key dimension of market integration, as a matter of fact, what will this one mean for the position taken by the EU on the freedom of movement of people in order to deliver services? In order for EU to be consistent, it will need to invest political capital and more creativity in ‘globalization with human faces’ as well as the manner in which there could be encouragement of back-and-forth movement of people as an alternative to permanent migration.                   The existing tension between the internal and external is well evidenced over agriculture, and came up in the Doha Round. A lot of questions have been raised over the conflicted position taken by the EU regarding agricultural tariffs and subsidies in its commitment to putting multilateralism at the service of development. As a matter of fact, there is no need for denying European citizens their landscape, food security, and way of life. However, it is important to tell them the much it costs, like the number of people who are now living under $1 a day. Also the question can be whether region-to-region agreements tend to be more about promoting regional integration outside the EU ‘per se’ but not taking the form of a worldwide strategy pushing for convergence with European standards as well as mutual opening of markets, thereby supporting EU incumbents. Time and again representatives of Mercosur have stated that they are aiming to follow the EU’s example, which according to them has made Europe ‘less dependent on the outside world, (the EU has stressed market opening). What is interesting is that the current political leadership in Mercosur, particularly President Lula in Brazil, have kind of supported the EU project over the US-led Free Trade of the Americas Agreement, indicating that the EU’s leverage through trade does not show some indications of legitimacy as compared to that of that of the US, (Stephanie Hanson, and Brianna Lee, 2012).                   Moreover, it seems that EU assumes that the liberal recipe of ‘peace through commerce’ which has indeed seems to have worked so well with them applies uniformly anywhere else. Generally, trade is capable of fueling conflict especially when carried out within a context of corrupt governance, deep social inequalities, and unfair rules, as well as without enough attention being paid to its destructive byproducts like export dependence, adjustment costs, price volatility or illegal trafficking. For EU to bring its external action to be in line with its internal philosophy, it needs to establish trade policies that are also sensitive to these potential conflicts. The current certifications efforts for diamonds or timber constitute tend to be a promising starting point. Equal Partnership vs. Conditional Opening                   There is a fundamental contradiction that exists as well within the very idea of ‘normative’ or ‘soft’ power. The language the EU is speaking is of shared norms which are developed through consensus and co-operation. But on the other hand, trade power tends to be the use of ‘carrots and sticks’ in enforcing such norms on trading partners. We are not even surprised that the incorporation of non-trade conditions in trade deals faces great resistance from developing countries, as they just see this to be a blunt coercion. A growing debate is now going on regarding the effectiveness of conditionality, which is now kind of spilling over from the field of aid to that of trade. Regardless of any instrumental argument, what is still being asked is whether a post-colonial power is not suppose to rely on voluntary change as well as the provision of public goods like its markets in bolstering the likelihood of such change. Do we miss to see a contradiction as the EU tries to export norms of its making, which is predicated based on voluntary co-operation between states using its quasi-coercive leverage through trade? Some of the policies such as the EBA undoubtedly tend to lie at the other end of the spectrum; unconditional opening to be a tool for development; having trust that new export opportunities in themselves is likely to encourage desired changes in the beneficiaries. Nevertheless, is it true that this policy is genuinely taking the interests of developing countries to heart, or it is just a public relations coup on the part of the EU? This is a signal to the rest of the world that the EU was eventually acting upon its pro-developing world rhetoric, the EU managed to find their way out in Hong Kong in generalizing the principle under WTO. So far giving way duty/quota-free access to 97 per cent of the products that originates in least developed countries is not welcomed by majority. Trade Liberalization vs. Domestic Preferences                   There is great tension for the EU as a trade power based on the embedded liberalism compromise. The conflict is in the manner of combining a trade liberalization credo with a primary concern for the social effects of market integration. Often, the EU has been facing social demands for protection that somehow may be going beyond the spirit of embedded liberalism. In response to such demands, the Commission’s trade policy-makers under the leadership of Pascal Lamy have developed a fresh conceptual apparatus based on the fact of collective preferences setting up institutions that are capable of forging collective preferences. The end result is diversification of social choices over health care, inter alia food safety, precaution in the field of biotechnology or welfare rights, cultural diversity, public provision of education and health care. However, it is argued that if these concerns justify protection then the EU has the obligation of providing c ompensation to its trading partners. Conclusion                   Indeed, it seems like EU exploits its formidable trade power for pursuing non-trade objectives through conditionality or through fostering regional trade blocs in its own image. This highlights the way the divergences between member states objectives makes it hard for the EU to signal its resolve to the outside world more clearly. Nonetheless, such divergences are themselves a byproduct or an expression of existing tensions between various alternative priorities or even norms that must simultaneously be committed to by the EU machinery, such as nondiscrimination and bilateral preferential relations, regionalism and multilateralism, western hegemony and mediating power, trade liberalization and domestic preferences, internal and external objectives, equal partnership and conditional opening. Due to the fact that legitimacy tends to be the main currency for an aspiring normative power, it will be difficult for the EU to effectively become a power through t rade without addressing what majority of the world considers being unsustainable contradictions. References Haughton, T. (2007). When does the EU make a difference? Conditionality and the accession process in Central and Eastern Europe. Political Studies Review, 5(2), 233–246. Knodt, M., Jà ¼nemann, A. (2007). Introduction: Conceptionalizing the EU’s promotion of democracy. In A. Jà ¼nemann M. Knodt (Eds.), Externe Demokratiefà ¶rderung durch die Europà ¤ische Union-European external democracy promotion (pp. 9–32). Baden-Baden: Nomos. Marshall, M., Jaggers, K. (2010). Polity IV project: Political regime characteristics and transitions, 1800–2009. Fairfax: Center for Systemic Peace, George Mason University. Stephanie Hanson, and Brianna Lee (2012) Mercosur: South Americas Fractious Trade Bloc. Retrieved 3rd 10, 2014. http://www.cfr.org/trade/mercosur-south-americas-fractious-trade-bloc/p12762 Teorell, J. (2010). Determinants of democratization: Explaining regime change in the world. Cambridge: Cambridge University Press Tocci, N. (2007). The EU and conflict resolution. Promoting peace in the backyard. London: Routledge. Source document

Are CIF Contract of Sale of Goods a Sale of Documents?

Are CIF Contract of Sale of Goods a Sale of Documents? RESEARCH PROPOSAL A Cost, Insurance, and Freight (CIF) contract of sale is a sale of documents instead of sale of goods. HYPOTHESIS: A Cost, Insurance, Freight (CIF) contract of sale is completed when documents are sold instead of the goods. INTRODUCTION AND ACADEMIC RATIONALE: This research proposal will explore the field of Cost Insurance Freight (CIF) contract of sale and it will provide enough references and evidences towards answering the question of: That whether CIF contract of sale of goods is a sale of documents or not? Documents here refers to the contract documents which are the proof of the sale. These documents include the Bills of Lading, Commercial Invoice, and the Insurance Policy. The proposal will also put light upon the context that a CIF sale contract is completed once the documents are tendered correctly even before the goods are delivered. The research objectives for this proposal are presented here, by a series of sub questions: The nature of a CIF contract-Is it a sale of documents or sale of goods? What are the main documents which completes the CIF contract of sale? Why is more emphasis given on symbolic delivery of goods using the documents? What is the concept of passing of property and risk in a CIF contract of sale? What are the duties of the buyer and the seller in a CIF contract of sale? What is High Seas Sale (HSS) and its concept in a CIF contract of sale? The CIF term started with the expansion of the trade and commerce. The first reported case of CIF was in 1862 and 1871 and at that time it was mentioned C.F.I. instead of C.I.F. in a CIF contract the buyer or his agent need not be present physically and the payment was deferred to a mutually agreed date by the buyer and seller.[1] Hamilton J defined the obligations of a CIF vendor; which re as follows: First, to ship at the port of shipment the goods contained in the contract; Second, to procure a freight contract, under which the goods will be delivered at the agreed destination; Third, to arrange for an insurance which will be available for the benefit of the buyer; Fourth, to make out a commercial invoice; Fifth, finally tender these documents to the buyer.[2] It follows that against tender of these documents the buyer must be ready and willing to pay the agreed contract price. Furthermore, in a CIF contract of sale the emphasis is on the symbolic delivery of goods, using the documents which has and carry the title to those goods which are mentioned in the contract of sale and are being shipped. It is a cash against documents contract.[3] LITERATURE REVIEW: To conduct research on the topic CIF contract of sale is a sale of documents instead of sale of goods, it is very much important to firstly obtain some background knowledge on the CIF contract of sale as well as the reasons and evidences which will support and strengthen our topic and will show and proof that CIF contract of sale is a sale of documents. This literature review is contains parts which explains the CIF contract of sale and the relevance of documents in the CIF contract. These include: The nature of a CIF contract, the main documents which completes the CIF contract of sale, the concept of passing of property and risk in a CIF contract of sale, the duties of the buyer and the seller in a CIF contract of sale, High Seas Sale (HSS) and its concept in a CIF contract of sale. This literature review is in accordance with the objectives of this research, which it will explain the need of documents in a CIF contract and as to why a CIF contract of sale is a sale of documents. The Nature of a CIF Contract To start with, a COST, INSURANCE, FREIGHT (CIF) contract of sale is that contract in which the buyer buys the goods from the seller by paying the entire amount till the final port where the goods are to be discharged and delivered to the buyer. The sale price term includes the cost of the goods, insurance, and freight. For Example: 9,000 100lbs. bags of Wheat CIF Le Harve shipment June 2016 cash against documents. Today a CIF contract is one of the most important instruments which is used in international trade and international sale of goods. In a CIF contract the obligations of the seller is to ship the goods to the port which is being agreed upon by the buyer and the seller, and this port is also known as the final port of delivery or the port of discharge. Next is to get a contract of freight from the carrier on which the goods will be shipped to the agreed port and destination and then to arrange for an insurance which will cover the goods against the loss during the transit and this will benefit the buyer and then to make a commercial invoice. After all this the final obligation of the seller is to tender the documents to the buyer in the correct way and the correct manner which have been agreed by both buyer and the seller. After the documents are tendered and they are accepted by the buyer, the buyer is then bound to pay the agreed contract price of the goods and the contract is fulfilled and performed. About to the nature of the performance of the CIF contract, especially where the importance is given on the tendering of the documents in the correct manner rather than physical delivery of goods, some jurists and academic writers are of the view that CIF contract of sale is a sale of documents rather than goods.[4] The main documents which completes the CIF contract of sale and the concept of passing of property and risk In the CIF contract of sale, the importance is on the symbolic delivery of goods which is done using the documents which has the title of the shipped goods.it is a cash against documents contract. The main documents in a CIF contract of sale are Bills of Lading, Insurance policy, Commercial Invoice. The commercial invoice shows the contract price and the buyer must pay once these documents are tendered. The advantages of a CIF contract are that the buyer does not have to worry about the freight prices and insurance premiums and the changes if any happen to the prices, as the buyer pays the entire price till the final delivery port. The buyer also knows the exact price which he has to pay. The property in a CIF contract of sale may pass either on shipment or on tender of the documents and the risk generally passes on shipment, but the possession does not pass until the documents which represents the goods are handed over in exchange for the price. The presumption is property passes in CIF contract of sale when documents are delivered to the buyer.[5] The judgement of Scrutton J also said that a CIF contract is a contract of sale of documentsin the cases of Karberg (Arnhold) Co v Blythe Green, Jourdain Co. The judgement became very famous. The judgement lies as: I am strongly of opinion that the key to many of the difficulties arising in CIF contracts is to keep in mind the cardinal distinction that a CIF sale is not a sale of goods, but a sale of documents relating to goods. It is not a contract that goods shall arrive, but a contract to ship goods complying with the contract of sale and to tender those documents against payments of the contract price. He buys the documents, not the goods, and it may be that under the terms of the contracts of insurance and affreightment he buys no indemnity for the damage that has happened to the goods. In my view, therefore, the relevant question will generally be not what at the time of the declaration of tender of the documents is the condition of the goods? but what, at the time of the tender of documents, was the condition of the documents as to compliance with the contract of sale? This ruling has been observed in later cases.[6] Whatever happens to the goods in transit, the Bills of Lading and the Insurance Policy provide an almost complete continuous cover from the port of shipment to the port of destination. If the goods are lost at sea the documents remain valid and can be tendered as normal for the full purchase price to be paid.[7] Justice McCardie held in Manbre Saccharine Co Ltd v Corn Products Co Ltd, whereby he said that the obligation of the vendor is to deliver documents rather than goods to transfer symbols rather than the physical property represented thereby. This supports that documents seem to be the essence of the CIF contract.[8] If the seller hands over the documents to the buyer before payment, then it is presumed that the seller reserves the title until payment.[9] The duties of buyer and the seller in a CIF Contract of Sale The duty of the seller is to ship the goods afloat which are mentioned in the contract and makes a contract of carriage of goods by sea to port of arrival at his own expense. Obtaining a bill of lading and the insurance policy, tender these documents i.e. commercial invoice, Bills of lading and insurance policy to the buyer. The buyer should accept the tender of conforming documents and pay the contract price which is against the delivery of documents. The documents must be strictly conformed to the contract, and the documents can be re-tendered if they are not conforming to the contract of sale.[10] High Seas Sale(HSS) and its concept in a CIF Contract of Sale In a CIF contract when a buyer (actual consignee) has the documents like the Bills of Lading, Insurance Policy, and the Commercial Invoice, he can then further sell those goods to someone else, and he can do so when the goods are still sailing and in the sea. The second buyer can also do this to someone else and the documents are sold for the price. This type of sale is known as HIGH SEAS SALE (HSS) in which the goods are sold while they are still sailing and they have not reached the final port. A high seas sale is done when the goods have left the loading port and are in the sea but have not arrived at the port of discharge. If something happens to the goods, then the buyer has the insurance policy and he can claim the damages from the insurance company. The importance of documents can be supported from the statement made by Lord Porter in Comptoir dAchat et de Vente du Boerenbond Belge S/A v Luis de Ridder Limitada (The Julia) [1949] A.C. 293 at pp.309, 312: The obligations imposed upon a seller under a c.i.f. contract are well known, and in the ordinary case include the tender of a bill of lading covering the goods contracted to be sold and no others, coupled with an insurance policy in the normal form and accompanied by an invoice which shows the price and, as in this case, usually contains a deduction of the freight which the buyer pays before delivery at the port of discharge. Against tender of these documents the purchaser must pay the price.[11] METHODOLOGY: To understand how this research study will aim to be conducted, it is firstly very important to establish the focus and direction it will follow. This will enable us and take us to a certain level where there will be more understanding and more support on CIF contract of sale as a contract for sale of documents rather than sale of goods. From the literature reviewed in preparation for this proposal, it became clear that what most Judges and from their judgements that the obligations of a CIF contract of sale are fulfilled when the correct and conforming documents as per the sale contract is tendered by the seller to the buyer. Because of this, the question that arose in the beginning that why a CIF contract of sale is considered a sale of documents and not sale of goods? is somewhere answered, and after reviewing the literature review in this study, additionally to establishes an answer for the question. To continue, for this study and to meet the objectives, the methodology that will be adopted is that of the doctrinal research method. Doctrinal research is concerned with the formation of what are labelled as legal doctrines, whereby an analysis of legal rules takes place.[12] These legal rules can be located within sources of law such as Statutes and Cases, although it is very important to understand that they cannot fully provide a thorough statement of the law. In regards to this study, it is important to appreciate that this can only be obtained by applying the pertinent set of legal rules to the specific facts and the judgements of the judges who are in favour of the view that a CIF contract of sale is a sale of documents. This research method is colloquially referred to as black-letter law and historically can be seen to be the most suitable method to adopt for research of this nature. Moreover, doctrinal research is concerned with the formation and evolvement of legal doctrines for publication. As this study is essentially asking what is the law? it does significantly differ from the qualitative analysis process used in traditional social science research. So, to conduct this research and to make it clear that a CIF contract of sale is a sale of documents, the judgements in regards to the CIF contract will be analysed. This will enable us to understand why the traders and most importantly the judges are of the view that a CIF contract of sale is a sale of documents. Moreover, the CIF contract of sale is governed by many laws and acts like the Sale of Goods Act 1979, Carriage of Goods by Sea Act 1971, Carriage of Goods by Sea Act 1992, and the main aim is to make it very much clear that the CIF contract of sale is a sale of documents. It is usually inclusive of the sections and provisions from the above stated acts. An extensive list of cases in which the judgements are in the view of the research question which is that a CIF contract is a sale of documents is also included in this research to make the concept and the research clearer. Some of the cases related to our research proposal are as follows: JUDGE CASE YEAR RECORD Scrutton J Arnold Karberg Co v Blythe, Green Jourdain Co [1915] K.B. 379 at 388 McCardie J Manbre Saccharine Co, Ltd v Corn Products Co, Ltd [1918-19] All ER Rep 980 at p.984 Lord Atkinson Johnson v Taylor Bros Co Ltd [1920] AC 144 at pp.155-156 Lord Wright Ross T Smyth Co Ltd v TD Bailey Son Co [1940] All ER 60 at p.68 and p.70 Lord Porter Comptoir dAchat et de Vente du Boerenbond Belge S/A v Luis de Ridder Limitada (The Julia) [1949] A.C. 293 at pp.309, 312[13] OUTLINE OF CHAPTERS: Chapter Content One This is the introductory chapter which will have the main issues related to the topic. It has the research question along with the research objectives and hypothesis. Two This chapter deals with the literature review. It is broken down into various topics related to CIF contract of sale along with some cases and judgements relevant to the topic making it more clear and concise. Three This chapter contains the explanation of the methodology adopted along with the reasons for its adoption. It also contains the findings and a table of cases related to the research topic. Four This is the final chapter which has the bibliography. BIBLIOGRAPHY: COMMERCIAL LAW BOOK-2ND EDITION, ERIC BASKIND, GREG OSBORNE AND LEE ROACH David M Sassoon DM, The origin of F.O.B. and C.I.F. terms and the Factors influencing their Choice Ademuni-Odeke, The nature of CIF Contract- Is it a Sale of Documents or Sale of goods? WESTLAW UK LEXIS LIBRARY E-LAWRESOURCES.CO.UK WWW.GOOGLE.COM http://www.clubtopsage.com accessed 3 January 2017 (caselawquotes.net) CHYNOWETH P, LEGAL RESEARCH IN THE BUILT ENVIRONMENT: A METHODOLOGICAL FRAME WORK (2011) accessed on 6 January 2017 [1] David M Sassoon DM, The origin of F.O.B. and C.I.F. terms and the Factors influencing their Choice 34 [2] Ademuni-Odeke, The nature of CIF Contract- Is it a Sale of Documents or Sale of goods? 159 [3] Karberg (Arnhold) Co v Blythe Green, Jourdain [1915] [4] http://www.clubtopsage.com> accessed 3 January 2017 [5] The Miramichi [1915] P 71 [6] Ademuni-Odeke, The nature of CIF Contract- Is it a Sale of Documents or Sale of goods? 160 [7] Ademuni-Odeke, The nature of CIF Contract- Is it a Sale of Documents or Sale of goods? 161 [8] Manbre Saccharine Co ltd v Corn Products Co Ltd [1918-19] [9] Ginzberg v Barrow Haematite Steel Co Ltd [1996] [10] Borrowman, Phillips Co v Free Hollis [1878] [11] (caselawquotes.net) accessed on 3 January 2017 [12] accessed on 6 January 2017 [13] (caselawquotes.net) accessed on 9 January 2017 Analysis: Electronic Arts Company Analysis: Electronic Arts Company Electronic Arts (EA) is an American developer, marketer, publisher, and distributor of computer and video games. The gaming industry where the company operates is one of the most competitive and dynamic industries. Perform a PEST analysis and five forces analysis on the industry as well as SWOT analysis and suggest an appropriate strategic course for Electronic Arts. Electronic Arts, Inc. (EA) is a worldwide developer, dealer, publisher and distributor of video entertainments. The organization was an initiate of the early home computer amusements organization and was remarkable for encouraging the designers and programmers in charge for its games. Initially, EA was a home computing amusement publisher. EA developed via achievement of several successful developers. It had grown to be one of the worlds biggest third party publishers. (Wikipedia ,2010) Presently, it is mainly successful goods are sports games available under its EA Sports label, entertainments based on trendy film authorizes such as Harry Potter and games from long-running franchises like Medal of Honor, Need for Speed, The Sims, Battlefield and the presently games in the Burnout and Command and Conquer series. With the majority of its sports instruction series being industrial by EA, and the worlds biggest enlargement studio EA Canada which they are also the distributors of the Rock Band series. (Wikipedia ,2010) 2.0 PEST analysis tools PEST can be described as political, economic, social, technological issues, which are applied to evaluate the marketplace for a company or organizational unit. The PEST analysis headings are a structure for analysis a position, and can also be applied to evaluate a plan or position, trend of a business and marketing proposal. It is a helpful implement for understanding marketplace situation, in which they are working, and the opportunities and threats that be positioned within it. (Strategylabs, 2010) The models issues will vary in significance to a particular company based on its business and the products it manufactures. Moreover, issues which are more probable to alter in the outlook or more related to a specified business will carry greater meaning. Additionally, EA who create a large range of goods can find it more helpful to evaluate one division of its organization at a time with the PEST model, hence concerning on the particular issues appropriate to that one division. (Researchmarkets, 2009) By understanding the situation in which EA function exterior to the divisions, they know how to take benefit of the opportunities and diminish the threats. Particularly, it is a functional tool for understanding threats linked with market development or decline and as such the situation, prospective and trend for them. It is finding out where they are in the circumstance of what is occurring exterior that will at several point cause what is happening within of the business. (Modelbenders, 2009) 2.1 Five forces analysis Porters five forces analysis contracts with issues external a business that influence the environment of rivalry within it, the forces inside the organization that control the approach in which firms compete, and accordingly the organizations likely productivity is accomplished in Porters five forces model. An industry has to realize the dynamics of its businesses and marketplaces in order to compete successfully in the market. It described the forces which make rivalry, competing that the competitive atmosphere is formed by the relations of five dissimilar forces acting on a company. It seems at five solution parts specifically the threat of entrance, the power of consumers, the power of providers, the threat of substitutes, and competitive challenges. (Emerald Insight Staff , 1993) Understanding the environment of each of these forces gives associations the essential approaching to allow them to make the right plans to be successful in their marketplace. It is a simple tool that supports EA understanding where power lies in a business situation. It also assists to recognize both the strong point of their current competitive situation, and the strength of a situation of them is looking to move into. With an understandable recognizing of where power lies, it will allow EA to get fair benefit of its strengths, develop weaknesses, and avoid taking incorrect stages. Consequently, to concern this planning instrument efficiently, it is vital to know the position and to look at each of the forces separately. (Modelbenders, 2009) 2.2 SWOT analysis SWOT analysis is a strategic planning system applied to assess the strengths, weaknesses, opportunities, and threats concerned in a plan or in an industry venture. The interior issues can be analysis as strengths or weaknesses depending upon their force on the companys goals. The exterior issues can comprise macroeconomic matters, technological alter, legislation, and socio-cultural transforms, as well as alters in the market or competitive situation. (Strategylabs, 2010) In many rival analyses, EA make completed outlines of each competitor in the marketplace, concerning particularly on their virtual competitive strengths and weaknesses utilizing SWOT analysis. EA will observing each competitors price structure, sources of earnings, resources and competencies, competitive situation and manufactured goods isolation, degree of vertical combination, historical reactions to business enlargements and other issues. (Emerald Insight Staff , 1993) Another instance is EA, which is a great example of how computer amusements business can utilize a SWOT analysis to shape out a strong company strategy. They have known that its strength was selling openly to customers and keeping its prices lower than those of other competitors. EA put together a company strategy that integrated mass customization and just-in-time manufacturing and allowing consumers enjoy their computer amusements with complete imagination in the games world. (Researchmarkets, 2009) 2.3 The analytical tools in solutions It helps EA in discovery the true resolution that best meets their requirements and can play a dynamic role in the accomplishment as well as support. To make easy this development, they have recognized strategic deal with key vendors. The growing resolutions portfolio presents customers with leading skill by world-class partners and developed in the marketplace. EA suggests proven resolutions that provide stability, scalability and the elasticity needed to maximize effectiveness and performance in a extremely competitive atmosphere. (Sadler, Philip , 1993) EA bring value to their customers by joining that recognize how with an entire suite of feature rich resolutions that offers the best functionality part. Thus, the system to develop the productivity and efficiency of company analysts, EA must continue to enlarge the width and strength of their data storehouses, which will diminish the number of data sources that analysts need to entrance directly. They must also equip analysts with improved analytical tools that manage the way they do. (Coate, Patricia , 2007) In line with the ever growing complexity of the competitive marketplace EA has abilities far beyond those of the conventional intermediary, letting them to manage as their customers reliance risk partner with resources to contain every part of their business. They give the firm with the most proper resolutions, through consultancy services, systematic tools and risk goods that continue and improve their customers situation in the market. (Sadler, Philip , 1993) 3.0 Conclusion Any company must seek to understand the nature of its competitive environment if it is to be successful in achieving its objectives and in establishing appropriate strategies. If a company fully understands the nature of the analysis, and particularly appreciates which one is the most important, it will be in a stronger position to defend itself against any threats and to influence the forces with its strategy. The situation is fluid, and the nature and relative power of the forces will change. Thus, the need to monitor and stay aware is continuous. (Coate, Patricia , 2007) Some issues during the implementation of these analyses strategic are crucially important for organizations to build long-term business strategy and sustaining competitive advantages rather than simply list the forces. Successful use of the analysis includes identifying the sources of competition, the strength and likelihood of that competition existing, and strategic recommendations for the action a company should take in order to develop barriers to competition. (Researchmarkets, 2009) It is important to make sure that the sources are reliable and relevant to the current condition of the organization. It has to be viable, reliable and valid, in order to conduct a good analysis of the model. For this purpose, the gathered data and information has to be checked and be applied to the current business conditions. Further limitations could be present in the nature of market forces that reduce the applicability of the information sources to present situations and the amount of detailed information required. (Wikipedia, 2010) 4.0 Reference Question 1 Wikipedia (2010), Electronic arts, retrieved on February 12,2011 from en.wikipedia.org/wiki/Electronic_Arts Strategylabs (2010), Analysis of electronic arts, Retrieved on February 13,2011 from www.strategylabs.net/search-swot-analysis-of-electronic-arts_p8.asp Researchmarkets (2009), Swot analysis , Retrieved on February 12,2011 from www.researchandmarkets.com/reports//electronic_arts_swot_analysis Modelbenders (2009), Electronic arts, Retrieved on February 12, 2011 from www.modelbenders.com/papers/Smith_Game_Impact_Theory.pd E-library Emerald Insight Staff (1993), 1st ed., Strategic Management,    Emerald Group Pub lishing Ltd Sadler, Philip   (1993), 1st ed., Strategic Management , Kogan Page Ltd. Coate, Patricia (2007), 1st ed., Focus on strategic management ,   Emerald Group Publishing Ltd Question 2 Suggest why different approaches to strategy development might be appropriate in different organizations such as a university, a fashion retailer and a high technology company. Introduction A business strategy naturally is an article that obviously expressive the way an industry will pursue and the steps it will take to accomplish its objectives. In a quality of business plan, the business approach results from objectives created to support the stated assignment of the business. In the examination step of business plan development, one of several processes is applied to evaluate a firms market, resources, barriers to achievement and specific advantages. The aim of strategic examination is to classify what a business needs to achieve, the strengths it can bring to bear on achieving the objective and weaknesses that require to be addressed prior to combination and accomplishment. (Sadler, Philip   ,1993) Strategic consideration methodologies can comprise estimating the business circumstances, several of competitive situations, verifying what market forces are at work and ranking competitors, among others. Integrating a business approach typically is one of many steps in a larger production planning process. A business strategy starts with an overall vision. From the vision, a mission statement for the industry is constructed, regularly the shorter and more accurate the better. A mission guides to specific objectives the business will accomplish to complete its mission and that in turn guides to approach to attain goals. Specific plans are regularly then developed to support the business plan. (Coate, Patricia ,2007) Corporate strategy It is verifying the greatest plan to be competitive in the market. It assists to classifies, evaluates, and clarifies the main issues  facing productions to deliver insights corporations can apply to develop performance and achieve a competitive advantage. It is focused with the overall principle and scale of the business to meet stakeholder outlooks. This is an essential level since it is seriously influenced by investors in the production and performs to lead strategic decision-making throughout the business. Corporate strategy is frequently stated openly in an operation statement. The associations have a vision and a plan for accomplishing that vision. They apply that strategy through everything they accomplish. These great associations are able to make and capture value and situation themselves for better value. (Businessdictionary,2009) 2.1 Business unit strategy Strategic business unit (SBU) is focused more with how an industry competes profitably in an exacting marketplace. It focuses strategic decisions about option of goods, meeting wants of clients, gaining benefit over rivals, developing or making new opportunities. It is known as a business unit within the overall corporate identify which is distinguishable from other business because it serves a defined external market where management can conduct strategic planning in relation to products and markets. (Wikipedia ,2010) The unique small business unit advantages that a firm insistently promotes in a constant manner. When organizations become truly large, they are greatest thought of as being collected of a number of productions. These organizational units are large enough and standardized enough to exercise organize over most strategic issues influencing their performance. They are controlled as self contained planning units for which distinct business strategies can be enlarged. A strategic business unit can include an entire organization, or can basically be a smaller division of an organization set up to execute a specific job. The SBU has its own business approach, goals and rivals and these will frequently be dissimilar from those of the parent organization. (Wikipedia ,2010) Operational strategy It is focused with how each division of the business is managed to bring the company and business unit level strategic way. It concerns on problems of resources, progressions, and groups. The operating strategy intends to close the strategic gap between business strategy and accomplishment. It transforms the strategic objectives into obviously described achievement aims and aligns the implementation process to the value intention. The operating strategy consists of several parts starting with the operating business form as the basis for development, function, and technical and human performance style. An operating business form is the associations crucial logic for constantly accomplishing its principle goals. The desired outcome is to have a tactical to carry out the operating strategic plan. (Tmginconline ,2009) A number of the key essentials comprise classify required decisions and correlated issues for business process such as key production processes, managing approaches. Additionally, it gives creative ideas for operating problems and to make new value opportunities. It is a model to close business development gaps and to understand business value. It can be described as the business development direction based on the general vision. For example, key decisions and leading values for key business processes and managing approaches. (Tmginconline ,2009) 2.3 Olympia College Olympia College was established to meet the rising require for private top education in the country and is an associate of the well-known Raffles Education Group. There are choices of analysis of the strategic plan process within Olympia College. The operational strategy shows that direction into generating strategic competitive advantage in the development. Therefore, they can get a new system to structure their business functions and make sure the successful enlargement of their business in the competitive market. (Olympia ,2010) Strategic planning is a long range planning procedure that helps in setting the direction of Olympic College. The strategic plan originates from the colleges mission and strategic vision and gives detailed actionable strategies for moving towards planned outcomes. Moreover, they have to help student improvement toward objective completion. It is more purposeful and successful in their efforts to bring education at a distance, finalize and realize a long range distance education plan. (Olympia ,2010) However, they have to exploit community entrance to Olympic College, particularly for enlarge and apply an on-going enrollment management structure that informs instructional plans, student support services, and facilities planning. They are concerning attention on learning and to assist students, ability, personnel, and administrators perceive themselves as a society of beginners, encourage a college wide culture of measurement that embraces the consideration of learning outcomes and encourages the study of teaching and learning. (Olympia ,2010) 2.4 Padini Holdings Berhad Padini sells ladies shoes and accessories, childrens clothes, maternity wear and accessories through different subsidiaries. They can apply the business unit strategy to formulate and execute the plans that will give a competitively greater fit the situation and accomplish the organizational objectives. However, it can assist Padini to emphasize attention on a particular regional market or consumer group. The long term plan of Padini also wants to do the interior and exterior review to strengthen the situation in the global market. ( Padini, 2010) It shows a fashion viewpoint of each will covers a complete range of goods intended at a targeted customer. The corporation will carry on upgrading the image of its goods while emphasizing value and standard. It is successful grip in the productive but competitive womens footwear market. There are strategies to strengthen its dominant situation with enhanced production lines and increased competence. Having successfully impressed its brand names into the perception of Malaysian consumers, Padini is moving to turn its different labels into regionally familiar fashion leaders. It aims to fulfill the potential of the export market, particularly in the Asian region, and will also step up in foreign country marketing for its goods. ( Padini, 2010) 2.5 Dell INC. Dell Inc. is the top retailer of computer systems in the market. Dell sells desktop personal computers, notebook computers, network servers, and a diversity of computer software. They can apply the corporate strategy as a direction in which its production operations work together to get particular objectives. They implement that strategy for accomplishing their vision to build up a strong communication suppliers and customers relationships in the future. It helps Dell to find out the best strategy to be competitive in the marketplace. Thus, it will guide them to improve the work performance and gain a competitive advantage. (Dell, 2010) Dells objective is to generate loyal clients by providing better experience at a great value. They are devoted to direct relationships, giving best goods with standard based technology outperforming the rivalry with value and an advanced client experience. Dell is the association which is recognized worldwide for its approach of direct selling to the customers and business customers due to which it has obtained greater profits and has grabbed large market share from its rivals. As the business develops with the period of time it is largely enterprise strategy is becoming stronger, complicated and established. (Dell, 2010) Conclusion Nowadays, competitive market a strategy that assures a constant approach to offering the goods or services in a system that will outperform the competition is significant. However, in performance with defining the marketing strategy associations should also have a well defined method for the day to day progression of executing it. A cost leadership strategy is based on the idea that the associations can manufacture and market a high quality goods or services at a lower cost than their rivals. These low costs must transform to profit margins that are higher than the manufacturing average. Some of the circumstances that must exist to support a cost leadership strategy comprise an on-going accessibility of working capital, excellent process engineering abilities, and close management of work, goods designed for easiness of manufacturing and low cost distribution. (Emerald Insight Staff ,1993) It is important to know the market segment as described by the viewpoint characteristics associations have chosen as the objective for their offering. It is based on the criticality of the prospects require, their approach about alteration, the importance of the benefits, barriers that exist to integrating the offering into daily procedure and the reliability of the offering. The prospective for market penetration involves whether they are selling to past clients or a new outlook, how aware the forecasts are of what they are presenting, rivalry, growth rate of the manufacturing and demographics. The prospects willingness to give for product value is established by their understanding of competitive pricing, their capability to give and their want for characteristics such as value, stability and dependability, ease of utilize, consistency and steadiness. (Coate, Patricia ,2007) Oxygen Uptake Kinetics: Training Effect on Oxygen Uptake Oxygen Uptake Kinetics: Training Effect on Oxygen Uptake Oxygen Uptake Kinetics: Training Effect on Oxygen Uptake I. Introduction Respiration can be divided into two categories. Respiration may occur at the cellular level where oxygen is taken up in the mitochondrion and used to oxidize fuels or respiration can occur as gas exchange between the environment and the mitochondrion. The cellular respiration may be referred to as internal whereas gas exchange from the lung to tissue maybe referred to as external respiration (Mines 1993) The oxygen uptake – oxygen utilization system can be considered to start at the lungs and terminate in the mitochondrion, being joined by the blood. This may be seen as linking the lung and the muscle via the blood, Figure 1 (http://highperformancerowing.net/journal/2011/9/23/skeletal-muscle-master-or-slave-of-the-cardiovascular-system.html) The coupling of the uptake-utilization system can be further elucidated by outlining the oxygen cascade, figure 2, which links the lung to the muscle through the blood i.e. the respiratory, circulatory and metabolic systems. Figure 2. Oxygen pressure profile from the environment to the mitochondrion. (http://www.bio.miami.edu/tom/courses/bil360/bil360s12.html) The PO2 (partial pressure of Oxygen) can be calculated by multiplying Pb x FO2 (Pb = 760 mmHg) and the lowering of the components may lower the maximal VO2 (Mines 93). The PO2 from the trachea to the mitochondria decrease due to water vapour pressure, ventilation/perfusion mismatch, diffusion difficulties, right to left shunt and cellular uptake with the lowest PO2 being in the mitochondrion ( about 2mmHg). In the mitochondrion oxygen is used to oxidise hydrogen ions and carbon ions to water and carbon dioxide, respectively. This being the ultimate purpose of the oxygen delivery system (Mines 93). VO2 kinetics is dependent on cardiac output and arterio-venous oxygen difference and is represented by the equation below also called Ficks Law VO2 = Q (Ca O2 – Cv 02) Q= cardiac output (Stroke volume x heart rate) Ca 02= concentration of Oxygen in arterial blood Cv O2= concentration of oxygen in venous blood Ca 02 – Cv 02 = represents the oxygen extraction and consumption at the tissues Varying any of the components of the equation may also vary the oxygen uptake kinetics. The diffusion (and maybe uptake) of any gas across a barrier Figure 3, can also be described using Grahams Law: V = D A (P1 – P2) / T V=volume flow of gas D= constant solubility A = Area of diffusion P1 and P2 = partial pressure of gas on each side of the barrier Figure 3. The alveolar-capillary membrane. Oxygen must transverse some distance to reach the blood cell (http://www.diatronic.co.uk/nds/webpub/gaseous_exchange.htm) This paper will try to shed some light on oxygen uptake kinetics, describing the various components of uptake and how oxygen kinetics are influenced by various intensities of exercise. Also, the various mechanisms of oxygen uptake as well as differences in different populations will be reviewed. The paper focuses on the training effect on oxygen uptake.   II. Oxygen Uptake Kinetics A. Description: Oxygen uptake kinetics can be explained as all those processes involved in the taking of oxygen from the lung and delivering it to the mitochondrion where it is consumed by the working muscle. Figure 4 illustrates the various components of the uptake curve. VO2 kinetics for moderate exercise can be described as a monoexponetial curve with first order dynamics that rises to some steady state. Figure 4. VO2 uptake versus time. EPOC is Excess Postexercise Oxygen Consumption or Oxygen Debt (http://blitzconditioning.com/epoc-what-is-it/) B. Importance of Oxygen uptake kinetics Understanding the link between lung, blood and tissues and how oxygen passes through each compartment, may provide some insight to improve diffusion, delivery and utilization fo oxygen to enhance performance. The uptake kinetics, once understood, may provide sports medicine scientists with a tool to help sick children, patients, and athletes to modify or enhance their performance. Analysis for the time course to steady state and the various factors which affect it can be correlated with various populations to help determine how these factors can be manipulated. C. Three phases of oxygen uptake kinetics: Phases 1 and 2 can be considered to be dynamic whereas phase 3 to be steady state. Phase 1 Phase 2 Phase 3 Figure 5, Three phases of Oxygen uptake (www.medscape.com) 1. Phase 1: This initial, immediate phase is called the cardio-dynamic phase as many researchesr (Whipp et al 82 and Sietsema 92) have noted that this phase is due to increased pulmonary blood flow rather than changes in arterio – venous difference. In this phase, mixed venous gas tensions have not changes and closely approximates the time required for metabolites released from the exercising muscles to reach the lungs (Whipp et al 82). The time course of this phase is between 15 – 20 seconds (Sietsema 92) and may show an abrupt response, from rest to work, or relatively slower response, from mild exercise to work (Whipp et al 82). 2. Phase 2: This more gradual phase or rapid component is due to the changing kinetics of cellular metabolism and a further increase in pulmonary blood flow (Whipp et al 1980). This phase represents the slower exponential rise to steady state with a time course of 1.5 – 2 min (Linnarson 74) and a fall in the VCO2/VO2 ratio is an indicator for the beginning of phase 2 (Sietsema et al 86). 3. Phase 3: This phase represents the steady state or slow component where oxygen delivery equals oxygen utilization (Sietsema 92), also, Wasserman et al 1967, indicates that a true steady state is not achieved until the concentration of lactate becomes constant. The steady state is reached an about 3 min after the onset of exercise (Diamond et al 1977). D. Oxygen uptake at various intensities of exercise 1. Onset of exercise At the onset of exercise there is an almost parallel increase in cardiac output which leads to increased pulmonary blood flow and rate of pulmonary gas exchange (Whipp and Mahler 1980). Due to stored oxygen and carbon dioxide in the muscle and the venous blood, the rate of pulmonary gas exchange doesn’t equal that in the tissues before reaching the steady state. (Whipp and Mahler 1980). Whipp and Mahler 1980 also indicate that the coupled system is not perfect in that their exists a time delay between gas exchange in the muscle and it expression at the lung and that the VO2 at the mouth may not reflect what happening in the muscle in the first few seconds of exercise. The rate of gas exchange depending on a. Responses of cardiac and pulmonary blood flow to exercise b. Metabolic change dynamics c. Wash in and wash out of gases in body stores 2. Moderate Exercise Moderate is defined as being sub maximal or oxygen uptake less the anaerobic threshold (a VO2 above which there is sustained increase in blood lactate or carbon dioxide output secondary to bicarbonate buffing of lactic acid). In this intensity of exercise, VO2 rises to steady state by a monoexponential (first order) time course and VO2 steady state increases proportionally to the work rate (Whipp and Mahler 1980). At this intensity ADP accumulates and there is increased glycogen breakdown (Astrand et al 1977) 3. Heavy Exercise This intensity is described as VO2 between the anaerobic threshold, AT, and VO2 max, figure 5. With work intensities above the AT, blood lactate begins to play a role in oxygen uptake kinetics making it more complicated, needing a slow and fast component to describe the response ( Whipp and Mahler 1980 and Whipp et al 1982), the dynamics of which could be described as second order (Linnarson 1974). Whipp and Mahler also indicate that the greater the increase in lactate, the larger is the proportionate contribution of the slower component, and that the time constant is prolonged at this intensity (Linnarson 1974). With heavy exercise and the production of lactate, VO2 continues to rise beyond 3 minutes, the VO2 drift as Casaburi et al 1987 calls it. Severe exercise allows high blood lactate from the anaerobic system to be reached until the exercise becomes unbearable (Whipp and Mahler 1980). Whipp 1972, shows that the time to steady state greatly increases with increasing work rates above the AT. Figure 5, Oxygen uptake at various intensities of exercise (http://www.sport-fitness-advisor.com/VO2max.html) III. Training Effect on Oxygen Uptake It is a known fact that training improves body performance in some way. Endurance athletes also tend to have greater VO2 due to improved cardiac output and greater arterio-venous differences. Hickson et al 1978 reports a faster rate of VO2 to attaining steady state in the trained than in the untrained state. This indicates that trained individuals reach steady state faster than non trained individuals. Hickson et al also indicates that VO2 time course is determined not only by relative work but also by the level of training. Zhang et al 1991, also found that VO2 kinetics are slower in less fit subjects and Whipp and Wasserman also confirm that VO2 kinetics are faster in more fit individuals. Zhang et al. suggest that a faster kinetics may indicate that in fit subjects the aerobic ATP flux is greater that the anaerobic ATP flux. Casaburi et al 1987 and Yoshida 91, have shown that blood lactate levels can be decreased with endurance training and also suggest that lactate can be correlated to the delayed rise in VO2 (the Vo2 drift). The increase in muscle mitochondria with endurance training may be a factor in improving oxygen uptake kinetics. Biochemical adaptations that occur in the muscle, such as increased mitochondrion size, number and increased capacity for oxidation may increase oxygen uptake kinetics (Girandola 73) which plays a role in uptake kinetics. Berry 1985 indicates that there is an increased capillary density and fiber area with training which may improve oxygen kinetics. One point that Berry 1985 makes is that interval training and steady state training both decrease the time constant, but interval training was found to have a greater effect on the time constant. A. Oxygen uptake in trained athletes differing in VO2 max Those individuals with a higher VO2 max are also found to reach a steady state faster when work is held constant, that is, the lower the VO2 max then the longer time needed for VO2 to reach steady state. Powers et al 1985 indicate that in highly trained individuals with similar training habits, those with a higher VO2 max may achieve a more rapid VO2 adjustment at the onset of work; also, it seems possible that a larger aerobic capacity could contribute to either a more rapid oxygen transport or a higher rate of utilization B. The influence of endurance training on mitochondrial oxygen consumption Michail T.et al 2000, conclude that short term training increases maximal mitochondrial oxidative power in human skeletal muscle, whereas the efficiency of aerobic energy production remains unchanged. Michail T et al 2000, also indicate that muscle antioxidative defense systems were unaffected by training, but there was an increase in mitochondrial content. Endurance training increased peak pulmonary O2 uptake by 24 % and maximal ADP-stimulated mitochondrial oxygen consumption by 40 % (Michail et al 2000) C. Effect of Interval training (IT) versus continuous training on mitochondrial functions: Frà ©dà ©ric N. Daussin et al 2008 showed that a constant workload and O2 uptake during CT induces a higher increase of muscular capillary density than IT. Only high and fluctuating workload and O2uptake during IT improve skeletal muscle mitochondrial function, which seems to be crucial in increasing VÃÅ'†¡O2kinetics, and VÃÅ'†¡O2max, even if both training programs resulted in the same global energy expenditure and training duration IV. Conclusions In conclusion, oxygen uptake kinetics describes the processes that occur at the lung, in the blood and in the muscle to ultimately oxidize fuels into water and carbon dioxide. These systems are intimately linked together and it is the job of sports medicine scientists to identify the various factors and limitations that govern VO2 kinetics. This paper reviews background information on oxygen uptake kinetics with focus on training effect on uptake. VO2 kinetics can be described for moderate intensity, constant load work, as a monoexponential curve to some steady state, the dynamic non steady state being referred to as Phase 1 and 2 while phase 3 being the steady state. The duration of each phase, and hence oxygen kinetics, is influenced by intensity of exercise (light, moderate or heavy) and the duration of exercise. The mechanisms that govern may be peripheral, those processes that involve uptake and utilization in the muscle, or central, those processes in the respiratory and circulatory compartment and everywhere else in the body. The creatine phosphate shuttle hypothesis is the closest to resemble the VO2 kinetics and may be a major player in the VO2 game. VO2 kinetics is seen to be slowed in cardiac and pulmonary disease patients and these individuals are overall limited in the exercise they can do. When prescribing exercise, VO2 kinetics analysis maybe helpful as an indicator of the â€Å"fitness â€Å"of the system and hence which sports are more suitable. From the discussion in the previous sections, it is seen that training may affect mechanisms of VO2. It is known that cardiac output (i.e. stroke vol. X HR), and capillarity are increased with endurance training. These are the central limitations. Also training may affect peripheral limitations, by increasing the size and number of mitochondrion and hence metabolic and oxygen capacities. The increased extraction of oxygen and the increased cardiac output both increase VO2. Since increased exercise increases mitochondrion respiration this may decrease production of lactate which may decrease VO2 drift. Correlating mechanisms with different populations, it can be seen that pulmonary and cardiac patients have lower V02 max and therefore lower VO2. Heart disease also decreases cardiac output and this leads to decreased capacity to deal with metabolic needs. These patients are also limited by oxygen transport and blood flow changes. In the older population ( 60 + years old), kinetics are usually somewhat slower but with physical training the kinetics become faster and are comparable to those of young fit individuals (Babcock et al 1994) References / Bibliography Astrand PO, Rodahl K 1977. Texbook of work physiology. McGraw Hill, New York Babcock MA, Paterson DH, and Cunningham, 1994. Effects of Aerobic endurance training on gas exchange kinetics of older men. Med Sci Sports Exerc. Vol 26, No 4, 447 452 Berry M, Moritani T, 1985. The effects of various training intensities on the kinetics of oxygen consumption. J Sports Med. 25: 77-83 Diamond LB, Casaburi R, Wasserman K, Whipp BJ 1977. Kinetics of gas exchange and ventilation in transitions from rest to prior exercise. J. Appl Physiol 43: 704-708 Hickson, R.,H. Bomze and J Holloszy. 1978. Faster adjustment of oxygen uptake to the energy requirement of exercise in the trained state. J. Appl. Physiol. 44: 877-881 Casaburi R., Storer T.W., Ben-Dov I., Wasserman K. 1987. Effects of endurance training on possible determinants of VO2 during heavy exercise. J. Appl. Physiol. 62: 199-207 Frederic N Daussin, Joffery Zoll, Stepnane P Dufour, Elodie Ponsot, Evelyne Lonsdorfer-Wolf, Stephane Doutreleau, Bertrand Mettauer, Francois Piquard, Bernard Geny, Ruddy Richard. Effect of Interval versus continous training on cardiorespiratory and mitochondrial functions: relationship to aerobic performance improvements in sedentary subjects. Am L of Physiol – Regulatory, Integrative and Comparative Physiology. July 1 2008 Vol. 295 no 1 R264 72 DOI: 10.1152/ajpregu. 00875.2007 Girandola, R.N., and F. I. Katch, 1973. Effects of physical conditioning in changes in exercise and recovery oxygen uptake and efficiency during constant load ergometer exercise. Med Sci. Sports 5: 242-247 Linnarson, D. 1974. Dynamics of pulmonary gas exchange and heart rate changes at start and end of exercise. Acta. Phys. Scand, 415: 1-68 Michail Tonkonogi,Brandon Walsh, Michael Svensson and Kent Sahlin. Mitochondrial function and antioxidative defence in human muscle: effects of endurance training and oxidative stress. The Journal of Physiology. Volume 528,Issue 2,pages 379–388,October 2000. Mines AH, 1993. Respiratory Physioogy. Third edition, New York, Raven press Sietsema KE, 1992. Oxygen uptake kinetics in response to ecercise in patoents with pulmonary vascular disease. Am. Rev. Respir. Dis. 145: 1052 – 1057 Sietsema KE, Cooper DM, Perloff JF, Rosove MH, Child JS, Canobbio MM, Whipp BJ, and Wasserman K, 1986. Dynamics of oxygen uptake during exercise in adults with cyanotic congenital heart disease. Cirulation 73: 1137 1144 Wassserman K, Van Kessel HL, Burtox GG, 1967. Interaction of the physiological mechanisims during exercise J. Appl. Physiol. 22: 71-85 Whipp BJ, Ward SS, Lamarra N, Davis JA, and Wasserman K, 1982. Parameters of ventilator and gas exchange dynamics during exercise. J Appl. Physiol 52 (6): 1506 – 1513 Whipp BJ, and M Mahler, 1980. Dynamics of pulmonary gas exchange during exercise. Pulmonary Gas Exchange, edited by JB West. New York: Academic, vol. II p 33-96 Whipp B.J., and Wasserman K. 1972. Oxygen uptake Kinetics for various intensities of constant work load. J. Appl. Physiol. 33: 351-356 Yoshida T, Udo M, Ohmori T, Matsumoto Y, Uramoto T, Yamamoto K, 1992. Day to day changes in oxugen uptake kinetics at the onset of exercise during strenuous endurance training. Eur. J. Appl. Physiol. 64: 78-83 Zhang Y.Y, M.C Johson, N. Chow, and K wasserman. The role of fitness on VO2 and VCO2 kinetics in response to proportional step increases in work rate. Eur. J. Appl. Physiol. 63: 94-100 https://www.google.com/search?q=oxygen+uptake+kinetics+pics www.medscape.com http://www.sport-fitness-advisor.com/VO2max.html http://blitzconditioning.com/epoc-what-is-it/ http://www.diatronic.co.uk/nds/webpub/gaseous_exchange.htm http://www.bio.miami.edu/tom/courses/bil360/bil360s12.html http://highperformancerowing.net/journal/2011/9/23/skeletal-muscle-master-or-slave-of-the-cardiovascular-system.html 1

I think that in Tennyson’s poems, The lady of Shalott and Mariana, Essa

I think that in Tennyson’s poems, The lady of Shalott and Mariana, the central female characters are presented to us in the way that Tennyson views women and their roles in society. There â€Å"Tennyson had great sympathy for women and the ways in which their lives were restricted.† Write the ways in which Tennyson presents the lives of women in some poems you have read. I think that in Tennyson’s poems, ‘The lady of Shalott’ and ‘Mariana’, the central female characters are presented to us in the way that Tennyson views women and their roles in society. There are many similarities and differences in both poems with how the female behave and live. In ‘The lady of Shalott’ the female lives in a tower, trapped and cursed, until she hears Lancelot coming. The lady is spinning tapestry and not looking out of the window at the outside world, yet towards the end of the poem she gets distracted and wants to see Lancelot for herself. The tapestry is an important symbol in the poem; it’s the only world that the lady lives in and this is still just other people’s lives that she sees through the mirror. This poem reflects the political turmoil that women faced in the year in which it was written. The lady is presented to us as being trapped and helpless. She has been introduced to us sat in this tower and her life seems desperate and lonely she’s waiting for a knight to save her whilst she is trapped away from the world. This poem reveals a lot about the Victorian concept of love and women. The lady in the poem embodies the true Victorian image of the â€Å"ideal† woman: virginal, embowered, innocent and obedient, also dedicated to her tasks. In Tennyson’s other poem, ‘Mariana’, there isn’t a development of a n... ...estry flies out of the window (How she saw the world before) and the mirror cracks (Her previous naà ¯ve perspective that she had of the world). The lady of Shalott cannot handle unrequited love and the reality of a harsh world so she kills herself. In the poem there is magical symbolism, this has human significance; ‘or when the Moon was overhead, Came two young lovers lately wed; "I am half sick of shadows," said the lady of Shalott.’ Tennyson writes about females lost in half-life, which results in people taking decisive, heroic action that leads to their doom. Tennyson brings attention to rhymes by making most of the lines stop, and the flow of words is brought to a halt by punctuation. The strong emphasis on rhymes gives the poem the feeling of an ancient tale, when news was carried from town to town by word of mouth and rhyming aided memorization.

Wage Determination in Perfect and Imperfect Markets

Wage determination in perfect and imperfect markets Perfect competition In perfect labor markets, everyone is wage taker – both the employee and the employer. On the one hand, the employer and his firm cannot control the market as there are too numerous firms and the firm is price taker on the product market and labor market. On the other hand, the workers cannot control their wage as they have no economic power to do so or they are of a clearly definite type. In perfect competition there is a free movement of labor. Everyone can enter the labor market or to switch jobs. Moreover, both workers and employers have enough information on the labor market state – wages, demand, productive level of workers etc. The most common thinking in labor markets is that all workers in the same position are equally There are two driving forces concerning the supply of hours by an individual worker – while working, the worker sacrifices its leisure time and the work may be unpleasant. The worker experiences marginal disutility of work, which tends to increase as work hours increase. To deal with the marginal disutility of work, a wage could be raised. This would lead to people willing to work more hours in order to have a greater income and they are ready to sacrifice their leisure time or in other words the substitution effect appears. Still, with higher wages people tend to work less in order to have more leisure, which is the income effect and as a result we meet the backward-bending supply curve of labor. What determines wage rates in perfect competition is the number of qualified people, the wages and non-wage benefits in alternative jobs and the non-wage benefits or costs of the jobs. The wage of a worker is measured by the interaction of demand and supply in the labor market. A very useful tool for calculating the wage rate is the marginal productivity theory. As long as firms are concerned, they will try to maximize profit by employing workers until the marginal cost of employing a worker is equal to the marginal revenue the worker’s output earns for the firm. In other words, the wage should be equal to the marginal cost the firm has occurred by employing the last worker. According to time some differentiations might be made. In the short run expanding industries will be able to pay higher than contracting industries. In the long run there are wage differentials because workers have different abilities and they are not perfectly mobile. In conclusion, the low paid will be those whose labor is in low demand or high supply, they possess few skills or are unfit, work in contracting industries, do not want to move from the area etc. Highly paid are workers whose labor is in high demand or low supply, they have certain skills or talents or work in expanding industries. Wage determination in imperfect markets In the real world, firms or workers, or both, usually have the power to influence wage rates. This is the case with monopsony – this is a market with a single buyer or employer. Another option to determine prices is when the workers are part of a labor union, which can be a monopolist or part of an oligopoly. Monopsonist are wage setters or wage makers as they are represent all the workplaces. What is interesting about monopsonist is that if a firm wants to hire more workers, it has to pay a higher wage rate to attract workers away from other industries. The wage it pays is the average cost to the firm of employing labor and the marginal cost of hiring one more worker will be above the wage rate. To maximize profit, a monopson equalizes marginal cost of employing labor with marginal revenue product. Union monopoly or oligopoly has market power and can influence wages. The scope of this power depends on the market concerned. However, the higher the wages, the less the workplaces. Moreover, unemployed might undercut the union wage by forcing the firm to employ non-unionised labor. The only way to increase wages and not reduce the level of employment is by increasing the productivity of labor. Another form of imperfect labor market Is bilateral monopoly. It means that a union monopoly faces a monopsony employer. In this case the wage rate and the level of employment depend on the relative bargaining strengths and skills of unions and managers. As a matter of fact, my facing a single powerful employer it might be easier for the union to increase wage rates. In bilateral monopoly the union can threaten the industry with strikes and consequently economic losses which gives unions more power. It often happens both sides – union and management, to gain from the carried negotiations. This is called collective bargaining. In this form of agreement there are various threats or promises made by both sides. Examples of union threats are – picketing, working to rule and such of employers can be lock-outs, plant closures etc. The government can also influence the collective bargaining. It can try to set an example, or set up arbitration or conciliation machinery. Another possibility is to use leglislation, e. g. set a minimum wage rate or prevent discrimination. To change the perspective, a higher wage might also be profitable for the firms. The reason behind this lies in the fact that productivity rises with wage rates. Moreover, by investing in training of the personnel, a firm will meet significant loss in the absence of the better-trained workers. High wage rates motivate workers as well. Other imperfections of labor markets can be the inadequate information workers or employers receive. In addition, wages may respond very slowly to change in demand and supply, causing disequilibrium in labor markets. The last factor in determining wages we are going to examine is discrimination. It might take many forms – race, sex, age, class etc. In economics, discrimination means that workers of identical ability are paid different because of the aforementioned characteristics.

Marketing and Micro Environment Essay

Effective marketing incorporates macro and micro-marketing strategies, terms that may not be very familiar to many small businesspeople. They are important concepts, though, that when applied effectively can help to boost advertising results. Even small businesses can learn how–and why–to consider the impacts of macro and micro impacts in their planning and strategy. Micro Environment The micro environment, as the name suggests, is the immediate environment that impacts a business. The micro environment includes considerations related to suppliers, customers and local stakeholders, including local government agencies or regulatory bodies. The micro environment can generally be considered the local environment where the business operates and the business owner is likely to be somewhat aware of the impacts that they are faced with. Macro Environment The macro-environment includes those things that may impact small businesses but which are outside of their control. It is the larger, external environment within which businesses operate from an industry or economic standpoint. Using Strategy Effectively In considering the micro and macro impacts on a business, internal and external factors must be considered. Businesses use a variety of tools in planning to consider these impacts, including the SWOT, which is strengths, weaknesses, opportunities and threats; analysis; the PEST, which is political, economic, social, technological, and Porter’s 5-Forces Analysis, which is the threat of new competitors, the level of competition, the threat of substitute products, and the bargaining power of customers and suppliers.