The relationship between money supply and inflation

Introduction The current globalisation rate has led to many changes and effects on the value of most resources and especially the financial resources. The world’s population is increasing at a fast rate while on the other hand resources are being depleted without being replenished thus causing scarcity.Advertising We will write a custom essay sample on The relationship between money supply and inflation specifically for you for only $16.05 $11/page Learn More As a result, economic crisis have occurred which have as well affected the living standards of a better part of the world’s population (Hardwick, 2002, p.176). Among the common effects are the high inflation and the amount of money supplied. Economists have however established the rate of Inflation and the money supply of a nation are correlated with one leading to another. This paper is therefore an analysis of the relationship between the inflation rate and money supply. Inflation In flation is said to be the increase in the prices of commodities and services in a given economy. This makes the people buy less since their purchasing power goes down as a result of the lower value of the currency. Inflation rates of most countries keep fluctuating but their central banks try to keep the rates at a range of about two to three percent. The consumer price index is what is used to measure the inflation rates of an economy. It has been theoretically argued that inflation is caused by an increase in money supply in the economy (Hall and Taylor, 1997, p.637). Money Supply Money supply is an economic term which refers to the amount of money circulating in an economy. The central bank is bestowed with controlling the money supply of a country through regulation of the circulation (Williams, 2008, p.1). Money supply can be measured by looking at the value of currency, bills, credit, loans as well as other liquid instruments in an economy. The Relationship between money suppl y and inflation Economists have suggested that there is a high degree of correlation between the inflation rate and money supply in an economy. To begin with is the fact that when the money supply is high the demand for money goes down.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This is because people are able to afford even the high priced commodities and services that they could not have initially afforded (Mishkin, 1995, p.89). It can thus be depicted that an upward supply of money in the economy results to inflation according to the graph shown below. (McMahon, 2009, p.1) A look at the graph at first glance does not show any instances of correlation however after the introduction of a time lag in which the two occur a situation of relationship is then established. This time lag is the difference in time between changes in the money supply and the changes in the inflation rates. Th us, the relationship occurs after a period of time as it can be depicted on the graph in the years 1990, 1996, 2000 and 2001 among others. This can be practically explained in a situation whereby the people of a given small town are given the opportunity to raise a higher income than they would have before in a month. They would thus shift from using gasoline to gas as their source of fuel which costs higher. This is because in real sense, the gas will cost proportionally lower than the price they were paying for gasoline before the increase in income. As a result, the market will bear high prices for commodities and services leading to inflation which has come about due to increased money supply (Williams, 2008, p.1). The relationship between inflation rates and money supply can be differently explained using different economic theories. The Monetary theory explains that money supply is the most significant factor that leads to incidences of inflation in an economy.Advertising We will write a custom essay sample on The relationship between money supply and inflation specifically for you for only $16.05 $11/page Learn More Quoting the words of a renowned monetarist by the name Milton Friedman, he said, â€Å"Inflation is always and everywhere a monetary phenomenon† (Williams, 2008, p.1). Thus according to empirical studies conducted by most historical monetarists, it can be asserted that inflation is a monetary phenomenon. This is in accordance to the equation; MV= PQ Where; M is the nominal value of money (money supply) V is the money velocity P is the price level Q is the real value index (Transactions) From the above equation, monetarists argue that the money velocity is not affected by changes in the money supply in the long-run (Mankiw, 2002, p.153). Therefore the output is highly dependent on the productivity of the economy.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Working with these assumptions it can be said that changes in price are dependent on the changes in the quantity of money in the economy thus the money supply. The chart below derived from the above equation shows the differences in inflation reflected by CPI and the money supply reflected as M2. Fig. A chart showing the relationship between inflation and money supply (Burda and Wyplosz, 1997, p. 267) According to the Keynesian theory, there still exists a relationship between money supply and inflation. However, they argue that money supply is not the only big factor that causes inflation as there are also other contributing factors. The Keynesians emphasize that aggregate demand is the main reason behind inflation and thus regulating the aggregate demands in periods of recessions and economic expansions helps stabilize the inflation rates as well. Nevertheless, the relationship comes about as aggregate demand is effectively controlled using economic instruments such as monetary p olicy and fiscal policy (Burda and Wyplosz, 1997, p. 275) Conclusion From the above discussion, it can be concluded that there is indeed a great correlation between money supply and inflation rates of an economy. It is evidenced that changing the money supply through the central banks leads to a control of the inflationary situations in the same economy. For instance, a country with high inflation rates and willing to lower them, they will do this through the operations of the central bank whereby the lending rates and the interest rates will be increased to reduce the amount f money leaving the bank (Baumol and Blinder, 2006, p.109). As a matter of fact, people will rush to deposit the cash they have so that it can earn as much interest as possible. This will in turn reduce the amount of money circulating in the region hence reducing the inflation rates as well. In a situation of deflation the vice versa will be applied where the central bank will reduce the lending rates and inter est rates so as to enable flow of money into the economy (Baumol and Blinder, 2006, p.109). The control between money supply and inflation rates is thus operated using the federal banking system of the central bank of the region. Reference List Baumol, W. and Blinder, A. (2006). Macroeconomics: Principles and Policy, Tenth edition. Thomson South-Western. Burda, M. and Wyplosz, C. (1997). Macroeconomics: a European text. Oxford [Oxfordshire]: Oxford University Press. Hall, R. and Taylor, J. (1993). Macroeconomics. New York: W.W. Norton. Hardwick, P. (2002). Introduction to modern economics, prentice hall publishers, New York. Mankiw, N. (2002). Macroeconomics (5th Ed.). Worth. McMahon, T. (2009). Money Supply and Inflation. Available from https://inflationdata.com/inflation/Inflation/Money_Supply_and_Inflation.asp . Mishkin, F. (1995). The Economics of Money, Banking, and Financial Markets, New York, Harper Collins. Williams, J. (2008). Money Supply Special Report. Available from   http://www.shadowstats.com/article/money-supply . This essay on The relationship between money supply and inflation was written and submitted by user Jaylen Ochoa to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Ethics, Hume Essays

Ethics, Hume Essays Ethics, Hume Essay Ethics, Hume Essay Yes, empathy with other human beings can provide a basis for morality because empathy is defined as the ability to understand and share feelings with another and morality is defined as the a particular system of values and principles of conduct. Therefore, empathy is the motivation for morality. David Hume, the author of A Treatise of Human Nature, was a Scottish philosopher that believed the good of man kind is the only object of laws and regulations. Hume is considered one of the greatest philosophers of all time based off his arguments; everything is natural, orality is based on natural feelings and only desires can motivate human beings. The objective of this paper is to introduce Humes philosophy, interpret A Treatise of Human Nature and follow up with support that empathy does in fact motivate morality. David Humes book A Treatise of Human Nature strives to introduce an innovative method of reasoning for anything that can be harmed. Hume does not believe there is any exact order of natural law and a natural/ unnatural theory cannot distinguish whether an action is moral or immoral. Humes theory is the opposite of ome of Hobbes theories. Hume believes that psychological egoism is false while Hobbes believes it is true. Hume also argues that social contact is pointless while Hobbes believes it is a key aspect of morality. Hume also argues in A Treatise of Human Nature that reason can not be a basis for morality, rather feelings are the motivation for morality and reason only identifies facts. Another key argument of Humes is one cannot argue is to ought, the denotation of is today means fact while ought is a view of how something should be. Humes philosophy is that only natural esire can motivate, this includes: self-interest, benevolence, and usefulness.. Justice in our world is tied into the desire of usefulness or a utility to human beings, however Justice in Humes eyes is considered an artificial virtue or unnatural because it is created by humans. On the other hand, Sympathy is considered the communication of sentiments, a basis for all moral distinctions, allowing morality to be possible. In A Treatise of Human Nature, Hume states that there is no exact morality between all human beings, we all have a foundation that is based off of ways of reasoning, and establishes the being of a God within which most reasoning is derived from empathy with others. Not to be confused that reasoning is a motivation for morality, but rather facts that help identify the natural feelings that motivate our actions or morals, whether they are right or wrong. Hume states, reason is, and ought only to be the slave of the passions, where empathy can be considered the slave of passions for morality. There couldnt be reasoning for morals, making certain things right and others wrong without being able to understand and hare this moral with others. For instance, murder is considered against the moral code because it is said to be wrong based on our feelings and understanding of life and how others may feel if it were to occur to someone they loved, allowing the majority of humans to base their morality on empathy. Take matrimony for example, the Joining of two individuals for life could be considered part of empathy; sharing feelings with another, based on the fact that it is considered morally right for those who wish to live together and make a family to be marriage, on a basis of empathy. Hume also argues against reasonlng as a Oasis Tor morallty Decause preTerences are considered original existences and cannot be evaluated as rational or irrational. He states, Reason is a slave to the passions meaning that reason alone cannot be the motivation of morality; therefore there must be a pre-existing desire to motive morality. Hume goes against philosophers that came before him with the idea that reasoning has no part when determining goals for oneself. Human beings are taught to know the moral differences between right and wrong. Our reasoning for our hoices whether right or wrong is not thought to have an outright reason, but rather an underlying desire which comes naturally to us. Humes thinking is much different than that of philosophers before him, going against reasoning as the basis of morality. He is still very famous in the philosophical and scientific world for his theories that all knowledge is derived from sense-experience and critical examination of other philosophers works which lead to his writing of A Treatise of Human Nature. The means to understand and share feelings with other human beings is the motivation of all morality.

Argumentive essay on Why the government should own public

Argumentive on Why the government should own public transportation - Essay Example Since decisions upon providing service are generally market driven, there is no public transit in these places, or they may be somewhat served by private companies with limited and expensive service. The rationale: not enough people will use it to make it profitable. Any suggested funding for public transport is always at the bottom of everyone’s budget list. The rationale there: we should not spend public money if the service is not used by a majority of the people. If this seems prejudicial, it is, since getting around is a necessity not a privilege. Unfortunately, too many people in the U.S., while admiring the wonderful benefits of the European mass transit systems when they travel, do not see themselves using such a system at home. And most assuredly they do not see themselves funding such a system with their tax money, as do European governments believing the service a crucial necessity for the people they govern. One might conclude that in Europe, good reliable mass tra nsportation for everyone everywhere is considered a right rather than a privilege. It is not totally dependent upon the profit model. The discussion of whether our own government should be running a system similar to Europe’s in the United States has been ongoing, and attempts, as in the case of California, to provide a seamless way for people to get around using mass transit have been sporadic. One online site states, â€Å"In most states, intercity passenger train service is provided solely by Amtrak, with no assistance of any sort from State or local governments† (History of Amtrak California, par. 1). Using California as a case in point, The History of Amtrak California discusses how the state subsidizes its growing system with state and local money largely from the federal government. Its success over the years in promoting and funding a growing mass transportation system has proven quite successful, considering California’s notorious love affair with

Disassembling and Reassembling of Proteins Essay

Disassembling and Reassembling of Proteins - Essay Example As the paper highlights after leaving the stomach, food goes through the oesophagus into the stomach where the onset of protein digestion occurs. The hydrochloric acid is released in preparation for digestion, and plays a critical role in activating pepsinogen into pepsin, the enzyme that catalyses the breakdown of proteins. The HCl intrinsic factor also aids in the conversion of proteins into metaproteins, making the catalysis of the breakdown easier since peptidases break down metaproteins easily. Interaction of proteins with hydrochloric acid triggers denaturation, making digestion easier. The acidic environment serves as a favorable environment for the activity of the activated pepsin. Pepsin takes an active role in breaking down proteins into peptides.This paper stresses that digestion of protein continues in the small intestines because pepsin activity of breaking down proteins is partial. The resulting peptides need further digestion in their constitute amino acids that can be absorbed by the small intestines DNA. In the case of infants, the enzyme rennin is present in the stomach, and its major responsibility is acting on casein, converting it to a soluble protein molecule named paracasein. In the reaction that follows, calcium ions encounter paracasein, and calcium paracaseinate forms. Pepsin then acts on paracaseinate, digestive it into simpler molecules.  In the small intestines, pancreaticpeptidases such as trypsin, chymotrypsin, elastase, and carboxypeptidase indulge in further digestion of the peptides.

Finance Issues during the First Five Years of a New Company Essay

Finance Issues during the First Five Years of a New Company - Essay Example Accumulated losses of the first 3 years have only been neutralized in the last accounting period for which actual results are available. Consequently, the company has never declared a dividend and does not even forecast one for the first year of forecasted business results. Â  2. The Gross Margin has improved from 18.75% in 2004 to 21.57% in 2005. The forecast Gross Margin for 2006, at 22.92% is only slightly higher than the latest achievement of 2005. However, fuel costs, which are significant for a business such as that of PDS is forecast to rise to 26.04% of revenue, as against 25.49% in 2005 and 25% in 2004. It appears that PDS is not able to secure protection against a major inflation driver into its business contracts. However, PDS has been able to reduce variable labor expenses from 56.25% of revenue to just 52.94% in 2005 and expects the trend to continue with a forecast of just 51.04% in 2006. These are significant productivity gains in a challenging human resources environment. Similarly, staff salaries are forecast to remain constant in 2006 compared to 2005, though net profits will more than double. Â  3. Leased capacity utilization has improved very significantly during the past five years, considering the remarkable rise in revenues. However, depreciation at less than 5% of the gross block in vehicles seems to totally inadequate. The depreciation reserve is entirely inadequate and distorts the profitability picture, including the basis for taxation. Â  4. Though the debenture loan and bank overdraft show plenty of scope for gearing compared to the Gross Block, the company does not have any immovable fixed assets.

Ford motors and counterfeiting in the chinese automotive industry

Ford motors and counterfeiting in the chinese automotive industry Ford Motor Company (Ford) is an auto company that manufactures and sells autos and parts globally. Similar to many other corporations, Ford has invested manufacturing efforts in China, because China is now the worlds largest auto manufacturer and auto market. Given this huge opportunity, there are numerous companies looking to reap financial profits by producing counterfeit parts. The global counterfeit auto parts market was estimated at $16 billion in 2008  [i]  . For Ford, counterfeiting not only represents lost financial sales but also brand degradation and product liability risks. While robust growth in auto sales may be fueling the fake components market, the battle against manufacturers and distributors of counterfeit auto parts, specifically Ford auto parts is not new. Ford has been waging an ongoing aggressive campaign against counterfeiters since the early 1980s. Despite its efforts, there continues to be a battle as according to the automaker, counterfeit and pirated auto parts remains a problem that is putting the publics safety at risk and costing about $1 billion US annually. Since joining the WTO, the Chinese government has been placing increasing emphasis on intellectual property rights (IPR) to help encourage foreign investment in the country. However the strength of these IP laws and enforcement has not been robust as penalties are weak and do not deter counterfeiters. As Ford continues to invest and grow within China, we propose the following recommendations to address the counterfeiting issue. First, Ford should refine its internal firm strategies through security packaging innovations and a certification process, increasing education to consumers, aligning employee incentives through benefits and penalties, and continuing with the inspections. Next, Ford needs to pursue external political and legal strategies with key stakeholders, such as the industry coalition, insurance partners, the Chinese government, and the WTO. These strategies should focus on aligning incentives to develop more robust policies around counterfeiting penalties and enforcement. 2 Overview of the Counterfeit Automotive Industry in China For decades, piracy and counterfeiting problems have affected the economy. The global market for counterfeit car parts is estimated to be worth approximately $16 billion USD in 2008 (which accounts for roughly 3.2% of the global counterfeit market) and is growing roughly 9-11% per year.  [ii]  As the counterfeiting and piracy market is becoming more and more attractive to organized crime (it offers similar profits with a significantly lower probability of prosecution and penalties), criminals are making significant investments in counterfeiting. Counterfeiting and piracy activities have flourished in developing economies and gradually diminish as emerging markets achieve higher levels of prosperity and global integration. Today, industrial counterfeiting and piracy run rampant throughout emerging markets such as China. It is in fact, the worlds largest offender of IP theft and industrial piracy. According to MEMA, China is responsible for the exportation of 80% of the counterfeit goods seized at U.S. borders.  [iii]  The E.U. also estimates that 5-10% of all replacement auto parts in circulation are counterfeit.  [iv]  Furthermore, a recent study by the Commercial Times found that 56% of auto users in China have found counterfeit parts on their vehicles. Several unique characteristics make the Chinese market distinct from other counterfeiting regions. With Chinas sheer size and growing integration into the global supply chain, counterfeiting and piracy issues originating from this region have become a global problem (affecting not only local Chinese companies but also multi-nationals). Given significant socioeconomic disparities among different regions within China, the progression and convergence towards a middle income will likely be slower, fostering an environment in which counterfeiting and piracy will thrive for the foreseeable future. Furthermore, Chinas customs and traditions have historically accepted industrial piracy further stimulating growth. As the counterfeit market in China grows, increased investment has allowed counterfeiters to strengthen the sophistication of their operation. Counterfeiters now have inside information on new vehicles and specification changes before the new car is even on the market. Counterfeiters can produce exact copies of products, packaging and documentation and sell it under a competing brand name. In 2004, General Motors (GM) filed a lawsuit against Chinas Chery Automobile Company for the alleged piracy of its Spark vehicle to create a replica branded Cherys QQ. GM showed that the two vehicles were nearly identical with respect to exterior body, interior design and key components. (See Exhibit 1). In a study by the U.S. Chamber of Commerce and the Coalition against Counterfeiting and Piracy, counterfeit part sales are costing Ford about $1 billion per year. However, it is the physical dangers and risks associated with using or installing counterfeit parts that may be the most costly. Counterfeit auto parts are a huge consumer safety problem with serious potential to injure auto technicians and end-consumers. In addition to severe financial and safety implications, counterfeiting destroys the brand reputation of legitimate companies. Legitimate companies are often blamed or brought to court to take responsibility for the negative repercussions of counterfeit products. With China surpassing the U.S. to become the worlds largest auto market (achieving sales growth of 46% to 13.6 million), it will be difficult for auto original equipment manufacturers (OEMs) to ignore the Chinese market particularly since by entering the Chinese market, significant advantages may be leveraged (e.g. inexpensive labor, rapidly growing emerging market).  [v]  Currently, roughly 800 foreign auto parts suppliers operate in China, including most of the top 50 multi-nationals. And as the Chinese auto market continues to grow, instances of IP theft are likely to increase as well. It will become even more important for large multi-nationals such as Ford to take action and to protect itself from IP risks. 3 Impact of Counterfeiting and Piracy on Ford Motor Company in China A Background on Ford Motor Company in China Ford began manufacturing autos in the early 20th century. With $146.3 billion in revenues in 2008, Ford is now one of the worlds largest makers of cars and trucks. Its brands include Ford, Lincoln and Mercury and Ford receives more than half of its sales outside of North America.  [vi]   In the Asia-Pacific region, Ford operates under several investment holding companies including Ford Motor (China) Co., Ltd., Ford Motor Research Engineering (Nanjing) Co., Ltd., Ford Automotive Finance (China) Co., Ltd., Changan Ford Mazda Automobile Co., Ltd., Changan Ford Mazda Engine Co., Company and Jiangling Motor (Stock) Co., Ltd. Roughly 9% of 2008 global sales may be attributed to the Asia-Pacific region which includes China. Ford sold slightly more than 300,000 units in China in 2008 and 2009 sales exceeded 440,000 vehicles (annual growth of 32%).  [vii]  In China, Ford has several joint ventures including joint ventures with Jiangling Motors Corp and Changan Ford Mazda Automobile Co. These joint ventures provide it with three shared production platforms in China and also share factories in Nanjing and Chongqing. With China overtaking the U.S. as the worlds largest auto market last year, Chinese auto factories are running at full capacity. According to Ford, the two facilities it has with Changan Automobile Co. will not be able to accommodate expected future demand based on current growth expectations. Accordingly, it plans to open a $490 million factory in Chongqing in 2012, producing up to 150,000 vehicles per year and increasing total capacity to 600,000.  [viii]   B Detailed Assessment of the Political and Legal Issues Relating to the Counterfeit Auto Industry I Overview of the Political Landscape in China Although China has moved from a centrally planned economy to a market-oriented one, the Communist Party of China (CPC) still maintains political power. Having a one-party system makes the CPC susceptible to civil unrest that could threaten its power and, as a result, the CPC has been hesitant to take action that threatens local economies for fear of unrest. But as an emerging country with the worlds third largest economy on the frontier, China is struggling to balance the need to support local economies with a growing need to protect IP rights for both multinationals and domestic firms. Yet despite a reputation for considerable corruption, demonstrated by its 2009 corruption perception index score of 3.6, and a ruling CPC that often ignores counterfeiting since it supports many local economies, China still manages to attract multinationals such as Ford due to its potential for new customers and windfall profits.  [ix]   China and the World Trade Organization (WTO) Admitted to the WTO in 2001, China agreed to implement various measures that would liberalize its trade regime. Among these measures was the WTOs Agreement on Trade-Related Aspects of Intellectual Property Rights (the TRIPS Agreement). This agreement guards against counterfeit products by addressing minimum standards of IPRs protection, domestic procedures and remedies for enforcement of these rights, and dispute settlement procedures among WTO members.  [x]  However, despite these IPR protections, counterfeiting still represents about 8% of Chinas $10 trillion economy.  [xi]   To address this growing problem, in 2007 the U.S. asked the WTO to intervene, claiming that Chinas enforcement of IPR laws was so weak that it failed to limit the production of counterfeit products. Specifically, the U.S. argued that weak penalties for infringers and Chinas practice of allowing counterfeiters to sell goods seized by Chinese customs officials, provided that the fake labels were removed, provided little financial incentive for counterfeiters to cease production.  [xii]  In 2009 the WTO ruled that China breached trade rules by ignoring piracy and counterfeiting, yet it upheld Chinas criminal law on IPR; without strengthening Chinas criminal law and enforcement of IPR, it is likely that counterfeiting will continue to be problematic.  [xiii]   Conflicting Incentives for the Chinese Government Despite Chinas laws that aim to protect IPR, the Chinese government faces opposing incentives in cracking down on counterfeiters. Specifically, China must balance the economic benefits local economies enjoy from counterfeit products with the growing need to protect the IPR of foreign and domestic companies.  [xiv]  Because counterfeiting supports many local economies and millions of people, any crackdown on counterfeiting could result in serious economic losses. As this action would not be well-received, Chinese politicians are even less apt to prosecute counterfeiters or focus on strengthening enforcement of IPR laws. On the other hand, China must strengthen these laws and enforcement mechanisms if it hopes to continue attracting multinationals.  [xv]  However, many multinationals are so intent on entering the Chinese market, given its sheer size and potential profitability, that they are willing to operate in an environment with little IPR protection. As a result, the Chine se government has very little incentive to crack down on counterfeiters or greatly strengthen enforcement of IPR laws. Fords Risks in China and its Current Strategies Given this political landscape, Ford faces considerable risk in China. With three assembly plants in China, Ford has already encountered problems with counterfeit parts, claiming that counterfeiting costs the company $2 billion a year in sales.  [xvi]  Exhibit 2 Despite some multinationals willingness to live with Chinas lax IP protection, Ford has taken steps to protect against the growing problem of counterfeit auto parts and vehicles. Specifically, Ford has been using undercover intelligence to identify counterfeit producers and raid Chinese factories.  [xvii]  While these raids have prevented thousands of counterfeit products from entering the market, penalties still remain weak; the few offenders sentenced to prison can reduce their terms for $30 a day.  [xviii]  Despite Fords efforts and commitment to protecting its brand, this weak enforcement discourages any meaningful lawsuits and provides little deterrence to counterfeiters. Ford must develop strategies to work with the U.S. and Chinese governments to better protect against counterfeit products. II Overview of Intellectual Property Rights in China Chinas Current IP Environment Since joining the WTO, the Chinese government has been placing increasing emphasis on IPR to help encourage foreign investment in the country. Most recently, the Chinese State Council established a task force known as the Intellectual Property Executive Conference to look into IP-related issues. Chinas new auto policy released this year stresses the need to protect the intellectual rights of auto companies and bans the sale of auto products that violate these protections. China is also a party to many international agreements to protect IP (including the World Intellectual Property Organization and Paris Convention, among others). For example, China joined the Madrid Protocol in 1995, which requires reciprocal trademark registration for member countries, which now include the United States.  [xix]   The Chinese government has also established special IP courts to handle cases of IPR infringement more efficiently. In addition to having these specialized courts in some cities and provinces, Beijing, Shanghai and Tianjin have also established IP courts within the Intermediate Peoples Court. In 1992, the Supreme Peoples Court established an IP division as well. This increase in the legal systems capacity to handle alleged IP theft has been used to facilitate highly publicized campaigns, including activities such as raids and educational programs. Enforceability of IP Laws China has made significant progress on the legal and regulatory front, but despite stronger statutory protections, IP theft remains a major problem, as evidenced by the widespread existence of counterfeit products.  [xx]  In reality, IP laws are rarely enforced, and it is even rarer that those who are caught stealing, cheating, counterfeiting and pirating go to jail. Because China is a large country with some political decentralization, enforcing IP laws and regulations in China is a major challenge.  [xxi]   Several institutional factors undermine the enforcement of IP laws, including Chinas reliance on administrative instead of criminal measures to combat IPR violations, corruption, local protectionism, limited resources and training available to enforcement officials, and lack of public education regarding the economic and social impact of counterfeiting and piracy. At the most basic level, without adequate education with regard to IPR, there is little awareness that infringement is a crime. Furthermore, the fragmented nature of political authority in China and, more specifically, decentralized corruption exacerbates the lack of enforcement. For example, when counterfeiters have connections with local government or law enforcement officials, this may provide an easy cover for their counterfeiting activity. Local officials may create obstacles during investigations and assist local counterfeiters by letting them hide their production lines in safe places. Chinas fragmented legal system contributes to the problem as well. Protection of IP in China follows a two-track system. The first and most prevalent is the administrative track, whereby an IPR holder files a complaint at the local administrative office. The second is the judicial track, whereby complaints are filed through the court system. However, determining which IP agency has jurisdiction over an act of infringement can be confusing. Jurisdiction of IP protection is diffused throughout a number of government agencies and offices, with each typically responsible for the protection afforded by one statute or one specific area of IP-related law. There may be geographical limits or conflicts posed by one administrative agency taking a case, involving piracy or counterfeiting that also occurs in another region. Chinas courts also have rules regarding the scope of potential orders. In most cases, administrative agencies cannot award compensation to a rights holder. They can, however, fine the infringer, seize goods or equipment used in manufacturing products, and/or obtain information about the source of goods being distributed. China was also required to provide IP remedies through criminal enforcement for commercial scale piracy and counterfeiting, under the enforcement provisions of TRIPs. Chinas laws and regulations stipulate that IP administrative authorities and Customs may transfer egregious IP infringement cases to police and prosecutors for initiating criminal investigation. However, despite these criminal provisions, most IP cases continued to be handled through the administrative system. Foreign rights holders have considerably less success in encouraging criminal prosecution of IPR violations. When jail sentences are handed down, Ford officials in Taiwan say that those few offenders sentenced to prison can reduce their terms for $30 per day. Lawsuits are also often a waste of time, due to local protectionism. In 2003, Toyota lost a closely watched case in China against the countrys biggest private carmaker whose brand logo was nearly identical to Toyotas.  [xxii]  In the end, although interna tional pressure may have succeeded in getting Beijing to establish IPR laws and regulations, the enforcement of IP, as with most policy in China, falls within the domain of Chinas complex bureaucracies and local government officials. Outsourcing vs. Ford manufacturing To operate in China, Ford had to form a joint venture with a quasi-governmental partner: Changan Ford Mazda Automobile Co. in China.  [xxiii]  Fords other partner in China, Jiangling Motors Corp., makes commercial vehicles, including the popular Ford Transit van.  [xxiv]  These joint ventures are one of the biggest risks automakers face as they expand in China due to the danger of IPRs violations. The Chinese made no secret that part of their strategy in forming joint ventures was to begin to learn about the auto industry and how they can produce cars. Ford produces all of their vehicles in their own three plants in the country. However, they now source many of their component parts, which increases the risk of counterfeiting since the company has transferred production of certain parts from their own plants to third-party operations in China and India.  [xxv]  There are other issues that come with operating in a rapidly developing country. In China, factories are at risk of unscheduled shutdowns because of power shortages. Ford also faces political risk. Although the danger of nationalization or outright confiscation of Fords assets may not be high, China may not always have the best interests of foreign multinationals at heart. Despite these concerns, Ford is not shying away from the fast-growing Chinese auto market. Ford currently operates two plants in China, and it broke ground for a $490 million plant in September of 2009. The factory will make the next-generation Focus compact car, which Ford plans to sell globally. Its current plant in Chongqing makes the Ford Focus, Ford Mondeo and Ford S-MAX. Its plant in Nanjing, in eastern China, makes the Ford Fiesta.  [xxvi]   In order to set up operations in China, Ford was also required to establish research and development facilities alongside its manufacturing operations to help build the countrys technical know-how. Ford has taken steps to boost their Chinese design capabilities, which also benefits domestic Chinese companies. For example, Fords China design team is putting its own spin on the upcoming Ford Fiesta (tailored for the Chinese market). Fords Current Strategies Fighting counterfeiters is a key priority at Ford, and it has stepped up countermeasures worldwide. Ford, GM, and DaimlerChrysler formed a global industry network in 2001 to work with law enforcement agencies and governments to strengthen patent and trademark protection laws and impose criminal penalties to prevent counterfeiting.  [xxvii]  The problem is especially acute in the Middle East, where many counterfeit Ford parts made in China are shipped and sold alongside genuine parts.  [xxviii]   Ford admits it was late in its efforts to protect its IPR abroad. However, the company is now very active and has even established its own brand protection team. The unit has led a number of raids, which have led to prosecutions. Ford recently raided a Chinese factory and turned up 7,000 sets of counterfeit brake pads destined for Egypt, each stamped with a replica of Fords blue oval. A legitimate set of pads would cost the equivalent of $47 in Egypt; the phony ones might cost $30.  [xxix]   Furthermore, as a brand Ford is trying to make everything as sophisticated as possible. It has security features in the parts packaging itself and spends time on brand awareness and training exercises so people can better identify fakes. The company says this is critical to long term public awareness and stopping sales of counterfeit products.  [xxx]   III Overview of Product Liability Product Liability All auto manufacturers, including Ford, are exposed to product liability lawsuits related to the sale of autos or parts to the public, especially in litigious countries. Ford has the most exposure in the U.S. given the extremely litigious environment and its large sales. According to the Restatement (Third) of Torts: Products Liability a user or bystander in the U.S. can sue for injuries related to a defect or malfunction of the product, and, in some instances, a defective design or a failure to warn. Even though Ford does not manufacture and sell the counterfeit Ford parts it increases its exposure if the parts are believed to be manufactured by Ford and then cause accidents and injuries. Ford could be sued and incur substantial attorneys fees and possibly even settlement costs. Ford would then have to prove that the product was not manufactured or sold by them, and even if Ford is successful it will still face attorneys fees, damage to its brand, and wasted corporate resources. Product Liability History and Severity Product liability lawsuits can take years to defend, result in millions of dollars of fees and settlements, and severely damage a brand. Ford has faced product liability lawsuits in the past such as the Ford Pinto case in the 1970s that cost it millions and the Ford Explorer rollover related lawsuits in the 2000s. Ford manufactured the Pinto throughout the 70s and due to a faulty gas tank the cars often caught fire during rear-end collisions. The most notable Ford Pinto case (versus Grimshaw) cost Ford $6.5 million in 1981.  [xxxi]  Ford has faced many other product liability lawsuits throughout its history. Fords Current Strategies Ford recognizes its exposure to insurable risks including product liability related to the manufacture and sale of autos and parts. Given the critical nature of risk management Ford maintains a Global Risk Management Committee (GRMC) that makes risk related decisions and is headed by the Chief Financial Officer. Ford chooses to manage and protect against product liability risks through a combination of self-insurance and product liability insurance.  [xxxii]  The self-insurance is typically in the form of a calculated monetary fund setup to may attorneys and claims. The product liability insurance would provide Ford with attorney support and claims/settlement payments in the event of an insurable claim. Ford also has a Sustainability, Environment Safety Engineering (SESE) Team that works to prevent faulty products from being sold and to ensure Ford complies with safety and environmental regulations. They also provide technical analysis to corporate counsel on product liability lawsuits when needed.  [xxxiii]   Finally, Ford has created a Global Brand Protection group to protect consumers from counterfeit products threatening user safety. This group is tasked with: preventing the distribution of and removing counterfeit parts from the marketplace, ensuring that the companys trademarks are used appropriately, and maintaining the integrity of the sale and distribution of original equipment parts.  [xxxiv]   4 Recommendations China has quickly become the worlds largest auto maker, surpassing the US in 2009  [xxxv]  . Due to its immense scale and rapid growth rates, China is an important strategic market for Ford from a production and sales perspective. Despite the political and legal issues and risks Ford faces in China, the company cannot simply withdraw its operations from China. Ford must engage in market and non-market strategies to help manage the counterfeit problem in this market. Recommendation 1: Refine Internal Firm Strategies As mentioned previously Ford has started to invest in internal strategies, such as raids and setting up the Brand Protection Group, to help address counterfeiting. We recommend that Ford continue to refine these strategies as well as incorporate additional internal firm tactics. From a product perspective, Ford has noted that there are security features in the packaging of the auto parts and that consumers should use reputable dealers and repairers, inspect parts and packaging closely in case they spot something and if they are concerned to ask that only original parts are used or call the auto maker.  [xxxvi]  We recommend that Ford continue to invest in its packaging to help dealers, repair shops, and consumers detect fake products. The company could consider implementing a certification program where only legitimate Ford plants and OEMs are able to put a Pre-Approved by Ford label on its products. Additionally Ford needs to employ efforts to minimize spare factory capacity in these production facilities and to increase monitoring from U.S. Ford managers. In conjunction with product-related tactics, Ford needs to educate its customers (e.g. dealers, auto-body shops) and end-consumers and bring this issue to light. Because counterfeiting auto and auto parts drastically affects consumer safety, Fords customers and consumers should have a strong commitment to help prevent counterfeiting once they are aware of the issue. These educational efforts can be spearheaded by the Global Branding Team and be implemented in various public relations and marketing efforts. Most consumers may not be aware that counterfeit autos and auto parts exist and are responsible for associated safety risks. One campaign can highlight how counterfeit auto parts can lead to injuries and fatalities. The campaign can then empower consumers to ask for Ford parts only when having their autos repaired. This will encourage customers to seek out Fords legitimate replacement parts and be wary of counterfeit products. Ford also should implement tactics to educate and incent their employees, critical stakeholders. In conjunction with educating consumers, the Global Branding Team can utilize the same resources to educate its employees. This knowledge can help increase employees commitment to prevent counterfeiting and can also create a culture of pride related to high quality production and safety. Ford ca

Analysis of Three Scenes in Raging Bull Essay -- Movies Film Cinematog

Analysis of the Raging Bull We analyzed two scenes in a movie called the Raging Bull. There were lots of clever techniques that were used. I was looking for five factors in those two scenes: the editing, the lighting and color, the use of the camera the sound and the mise en scene. I will analyze the scenes as much as I can and explain what they signify if possible. Scene 1 This first scene was actually the introduction of the movie. There was no editing or camera movement involved in this scene. The scene was filmed in black and white, I believe the director did this to connote to the audience that this is a piece of history. Black and white pictures also connotes the idea of something legendary and historic. This could fit in the topics of mise en scene or lighting and colour. However I believe it is more in the mise en scene topic because it creates an atmosphere that this is something historic and legendary. The intro was also filmed in slow motion with a slow song. I believe that the non-diegetic soundtrack was a parallel sound because it matched with the use of slow motion. The director uses these two together intentionally to manipulate the audience and to allow them to get into the mood of this movie. I felt like I was watching something important and historic. The soundtrack was the only sound you could here during that first scene. This scene took place in an arena, where there was a ring. The boxer was continuously jumping up and down, warming his self up on the left hand side of the ring. This was an asymmetrical piece because of how the boxer was always on the left hand side of the ring wi... ...ers. We felt like we were in the ring and part of the action. I noticed a few other things which I felt were also important. The darkening of the audience during the fight showed that they were not important and that the director wanted us to focus on the fight. I realised that the sound during the brawl in the audience was loud, and there was a use of low key lighting, which showed how intense and important this game is, that even the crowd got involved. There was silence at the start of the final round which signified how crucial and important this final round is. I realised that there was smoke behind that opponent’s head during the break, which could signify that he was the bad one. I conclude that these five important factors were used to create atmospheres and to connote to the audience what is the situation.