Net Present Value Essay - 603 Words

1. Basic present value calculations Calculate the present value of the following cash flows, rounding to the nearest dollar: a. A single cash inflow of $12,000 in five years, discounted at a 12% rate of return. b. An annual receipt of $16,000 over the next 12 years, discounted at a 14% rate of return. c. A single receipt of $15,000 at the end of Year 1 followed by a single receipt of $10,000 at the end of Year 3. The company has a 10% rate of return. d. An annual receipt of $8,000 for three years followed by a single receipt of $10,000 at the end of Year 4. The company has a 16% rate of return. 2. Cash flow calculations and net present value On January 2, 20X1, Bruce Greene invested $10,000 in the stock market and purchased†¦show more content†¦The following information is available: Cost of boat $500,000 Service life 10 summer seasons Disposal value at the end of 10 seasons $100,000 Capacity per trip 300 passengers Fixed operating costs per season (including straight-line depreciation) $160,000 Variable operating costs per trip $1,000 Ticket price $5 per passenger All operating costs, except depreciation, require cash outlays. On the basis of similar operations in other parts of the country, management anticipates that each trip will be sold out and that 120,000 passengers will be carried each season. Ignore income taxes. Instructions: By using the net-present-value method, determine whether STL Entertainment should acquire the boat. Assume a 14% desired return on all investments- round calculations to the nearest dollar. 5. Equipment replacement decision Columbia Enterprises is studying the replacement of some equipment that originally cost $74,000. The equipment is expected to provide six more years of service if $8,700 of major repairs are performed in two years. Annual cash operating costs total $27,200. Columbia can sell the equipment now for $36,000; the estimated residual value in six years is $5,000. New equipment is available that will reduce annual cash operating costs to $21,000. The equipment costs $103,000, has a service life of six years, and has an estimatedShow MoreRelatedNet Present Value1157 Words   |  5 Pagesobtained and that authorised capital spending was not exceeded. Investment appraisal method; There are four methods which we can use to evaluate the investments. 1) The Payback period 2) The accounting rate of return 3) The net present value method 4) The internal rate of return method A. The Payback period; The payback period is the number of years it takes to recover its initial investment. This method assists with the project risk and liquidity. The projects with theRead MoreNet Present Value1875 Words   |  8 Pagesyear and reported the following information. The company had current assets of $153,413, net fixed assets of $ 412,331, and other assets of $83,552. The firm also has current liabilities worth $65,314, long-term debt of $178,334, and common stock of $162,000. How much retained earnings does the firm have? a. $ 405,648 b. $243,648 c. $167,918 d. $573,566 6.) Tre-Bien Bakeries generated net income of $233,412 this year. At year end, the company had accounts receivables of $47,199Read MoreNet Present Value1958 Words   |  8 Pagestimes attributed to the nature of a project. Capital inv appraisal of new technologies: Problems, misconceptions and research directions * Specifically, it has been alleged that the traditional appraisal methods of payback, discounted net present value (NPV) and internal rate of return (IRR) undervalues the long-term benefits; that traditional financial appraisals assume a far too static view of future industrial activity, under-rating the effects and pace of technological change; that thereRead MoreNet Present Value/Present Value Index2559 Words   |  11 PagesNet Present Value/Present Value Index The management team at Savage Corporation is evaluating two alternative capital investment opportunities. The first alternative, modernizing the company’s current machinery, costs $45,000. Management estimates the modernization project will reduce annual net cash outflows by $12,500 per year for the next five years. The second alternative, purchasing a new machine, costs $56,500. The new machine is expected to have a five-year useful life and a $4,000Read MoreNet Present Value and Salvage Value1144 Words   |  5 Pages------------------------------------------------- FINC5001 Capital Market and Corporate Finance ------------------------------------------------- Workshop 5 – Capital Budgeting II 1. Basic Concepts Review a) In applying Net Present Value, what factors do we include, and what factors do we ignore? Use cash flows not accounting income Ignore * sunk costs * financing costs Include * opportunity costs * side effects * working capital * taxation * inflation Read MoreNet Present Value Essay940 Words   |  4 Pagesgrow. Although, this is true it much more valuable to know about the value and benefit of the investment. Selecting the best investment choice will ensure growth in the future and will generate value. The problem typically arises when trying to utilize capital budgeting skills in determining different tasks with the same risk. There are many ways to determine the correct return gained from investments. The (NPV) Net Present Value has proven to be the best method for organizations to use. NPV givesRead MoreNotes On The Net Present Value1462 Words   |  6 PagesQuestion C [1] The Net Present Value [NPV] is the total sum of the present values of all the expected cash flows. For a project with a normal cash flows, this would mean that the NPV is the present value of expected cash flows minus the initial cost of the project. The formula is as such; NPV = -CF0 + CF1 (1+k)-1 + CF2 (1+k)-2 + †¦ + CFn (1+k)-n where; CF0 is the initial investment outlay, or cash outflow CFt is the after-taxed cash inflows at time t k is the required rate of return for the projectRead MoreNet Present Value ( Npv )1530 Words   |  7 PagesNet present value (NPV) is a discounted cash flow technique used to determine the overall value of a project or a succession of cash flows (Blocher et al, 2008). See Appendix 1 for a simplified calculation. Belli (2001) argues that NPV is more suitably applied to mutually exclusive projects; these types of projects are those that if accepted, prevent other contending projects to be approved (Mowen et al, 2009). NPV is understood to be an absolute measure, therefore when selecting between mutuallyRead MoreNet Present Value and Project3264 Words   |  14 Pagesbe 13.487% and a Weighted Average Cost of Capital (WACC) to be at a value of 9.70%. Factoring in the WACC into our projections we found that if the demand maintains at an average rate the project will be at a positive Net Present Value of $5,997,505.31 with an IRR of 13.21%, a profitability index of 8.84, and an approx imate payback period of 6.84 years. Please see Exhibits below for a snapshot of the capital budget and NPV values. This information seemed to be very promising for the project inRead MoreNet Present Value and Question5593 Words   |  23 Pagesof capital. C) If you are unsure of your cost of capital estimate, it is important to determine how sensitive your analysis is to errors in this estimate. D) If the cost of capital estimate is more than the internal rate of return (IRR), the net present value (NPV) will be positive. Question 2 If it is feasible to undertake a project irrespective of the decision concerning the acceptance of another, the two projects are said to be: A) independent. B) dependent. C) mutually exclusive. D) none of

The Canadian Mental Health Association - 1396 Words

Introduction â€Å"The Canadian Mental Health Association estimates that 1 in 5 Canadians will develop a mental illness at some time in their lives.† Mental illness is defined as a mental pattern that causes an impaired ability to function normally in ordinary life. Mental illnesses can affect persons of any age, race, religion, or income and are not the result of personal weakness, lack of character or poor upbringing. A number of factors can contribute to whether an individual will develop a mental illness, with these factors being present individually or in multiples. A number of factors have been identified that contribute towards initiating mental illness, but no individual factor has been definitively identified as ‘the’ factor that causes a mental illness. Symptoms of mental illness can range from mild to severe and are classified into two main categories as being either organic disorders or functional disorders. Organic disorders cause a decrease in the mental function of the brain due to a medical disease; while functional disorders cause a derangement of the mind. The type and severity of the disorder determines if it will be short-term and treatable or if it will be permanent or degenerative and untreatable. There are a variety of community and medical services available to assist those who are affected by mental illness. These services are available on an in-patient or out-patient basis depending on the level of severity, with the general trend towardsShow MoreRelatedMental Illness And The Canadian Mental Health Association1800 Words   |  8 PagesMental Illness affects all Canadians at some point in their life, whether directly or indirectly, through a family member, colleague or friend. It does not merely affect people of a certain age; it affects people of all ages. One in five Canadians experience mental illness (The Canadian Mental Health Association, n.d.). Anything can trigger mental illness, and it is important to rememb er that if a person is battling this disease, in it is not a sign of weakness. Unfortunately, there is a stigma andRead MoreThe Effects Of Bipolar Disorder On Individuals, Families And Society1109 Words   |  5 PagesMental illness is a leading cause of disability in Canada. All Canadians are likely to be indirectly affected through a mental illness in a family, friend or colleague. Statistics showed that 1 in 5 Canadians experiences a mental health or addiction problem. (Mental Illness and Addictions: Facts and Statistics, n.d.). This report will be focusing on one of the more common mental illness — bipolar disorder. Bipolar disorder, also known as manic-depressive illness, is a serious medical condition thatRead MoreThe Prevalence Of Mental Illness1348 Words   |  6 PagesMental illness is increasingly being recognized as a challenge faced by many Canadians. The Mental Health Strategy for Canada estimates that ‘in any given year, one in five people in Canada exp eriences a mental health problem or illness’. (Bartram et al., 2012) The prevalence of mental illness is not exclusive to the Canadian population and it is estimated that these figures are rising. In 2004, the World Health Organization ranked major depression as third in terms of the overall burden of diseasesRead MoreGlobal Health Issue Project : Canada Essay1562 Words   |  7 PagesGlobal Health Issue Project: Canada Canada is the second largest country by total area in the world, extending from the Pacific to the Atlantic Ocean and north into the Arctic Ocean. Canada has ten Provinces and three Territories, bordering the United States on the South and Northwest sides. Ottawa is Canada capital city located in Ontario. Canada became its own country July 1, 1867 with the creation of the Constitution Act. Currently, Canada is home to a little over 36 million people, ranking asRead MoreHealth And Safety Of Canada And Bangladesh1703 Words   |  7 PagesIntroduction The second cross-cultural ethical issue discussed in this paper is workplace health and safety. Having occupational health and safety laws in place ensures a safe environment for employees, the public, and stakeholders. The organization as a whole becomes more productive, creative, and happy. Many countries have in place laws and regulations to ensure that the workforce is protected, however, there are still several other countries who lack these necessary laws. Canada and BangladeshRead MoreAnalysis of Mental Health in Canada1588 Words   |  7 PagesClose to six million Canadians live with mental illness; let alone the thousands that are undiagnosed. Mental illness has made big headlines in the news in the recent years. The people suffering from mental illness have been faced with discrimination a caused by a stigma towards them. Mental illness can be caused by many different factors whether they are psychological or environmental. Although only twenty percent of Canadians persona lly experience mental illness in their lifetime, it affects everyoneRead MoreRelationship Between Physical And Emotional Wellness1600 Words   |  7 PagesAmanda C Jara De La Vega Personal Health 250 Sasha Grenier 05/26/2016 Health Issue Paper: The relationship between physical and emotional wellness â€Å"To keep the body in good health is a duty, otherwise we shall not be able to keep our mind strong and clear.† -Buddha. Emotional and physical wellness are completely tight to each other. There are multiple links between both dimensions of wellness that significantly can change a person’s health. The book Your Health Today by Teague, Mackenzie, RosenthalRead MoreWork-Life Balance: The Relationship Between Stress and Health1212 Words   |  5 Pages Work-Life Balance: The Relationship Between Stress and Health March 10th 2012 The relationship between employment related stress and workplace uncertainty directly impacts health today. Studies have identified employment strains caused by uncertainty of work that may be measured by scheduling and earning uncertainty (Tompa et al, 2009). The effort required in commuting to the workplace and effort required to handle multiple jobs are also strains that will be addressed in relation toRead MoreCanadas Mental Health System1404 Words   |  6 PagesCanada’ mental health system has struggled to implement compassionate mental health treatment and the persistent problem of stigmatization negatively impacts its development. There are prevailing misconceptions and misunderstanding that result in those with mental illnesses being labelled as â€Å"idiots†, â€Å"imbeciles† and lunatics (Kirby Keon, 2004). Fighting this stigma is of paramount importance to ensure the support of those with mental illness and enable them to seek the necessary treatmen t. Read MoreMental Health Incidents Have Effected Policing1439 Words   |  6 Pagesaddress mental health incidents have effected policing. Through my research I have determined that Canadian law enforcement has failed to manage the new demands placed on them from historical and societal changes towards mental illness. This failure to properly manage has caused inefficiencies Police have long been the default resource to manage new demands from changes in society, and in regards to mental illness, they have been referred to as the â€Å"informal first responders of mental health† (Council

Summary Of The Book Annie John Essay Example For Students

Summary Of The Book Annie John Essay Summary of the book Annie JohnBy: Jamaica Kinkaid. This book is a book of reality, a book of self-discovery. This is a book that you read and as you are reading it you can identify with the character, what he/she does and how she/he reacts to happenings around her/him. The story is set in and around the Dominican Republic, around the 1950-60s. The main character in this book is Annie John, she is a black girl in a English ruled and own colony. She is a smart tall girl of an inquisitive nature. She has always been smart in school, but her more wild side has always driven her towards yearning other experiences. She is a slightly conceded girl and always wants to be the best in her circle of friends and in school. She enjoys being the center of attention and does everything she can to achieve this. She has changing relationships with a couple of girls throughout the book and we can see how those relationships change her, and also change themselves as her character matures. Annies relationship with her mother is a main point of the whole book. We follow the relationship going from being a admiring and respectful mother-daughter relationship to becoming a hatred and dreaded black creature. Many of Annies thoughts are quite reflective on the way she was raised and where she was raised. Many if the characteristics also are easy to find within our selves. I find this book to be an easy read book about universal truths, knowledge, and experiences that most of us have already experienced or if not, should experience. Annie John is a definite must on a list of leisure and fun books to read.

The Delights of Diversity free essay sample

Throughout my years of academic schooling, I have immersed myself in both my academic and artistic studies. Throughout both middle and high school, I have explored my creative expression through dance, song, the playing musical instruments, and drama. Most significantly, ballet has consumed the majority of my time away from pursuing academics, because it has become my true passion. In addition, it has been a true pleasure to meet a variety of other artistic souls. Through my prolonged study of many mediums within the performing arts, I have had the wonderful opportunity to create life-lasting friendships with artists of all nationalities, ethnicities, and socio-economic backgrounds. These friendships have enhanced my love of the arts, because I truly feel that fellowship and friendship provide significant learning experiences that singular study cannot provide alone. However, while I feel confident that I have met many fellow thespians, dancers, singers, and musicians thus far in my life, I hope to create new relationships with students who have passions outside the world of performing arts. We will write a custom essay sample on The Delights of Diversity or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page In college, I hope to be able to form friendships with students who are as passionate about their own goals and interests as I am about my artistic studies. For example, I would relish the occasion to discuss a home football game with a player in hopes of playing for the NFL. Similarly, it would be fascinating to discuss new technological discoveries in stem-cell research with a biochemistry major. Sharing the glorious classicism of Swan Lake to a classmate who had never had the opportunity to enjoy ballet would be a joy for me. It is my firm belief that peers with completely diverse interests can foster new interests for both themselves and others. Oftentimes, these newly stimulated comradeships create avenues to explore new ideas. Collaboration and teamwork are essential ingredients for success. In short, the opportunity to discuss and discover a diverse variety of topics with fellow classmates would truly give me a fully stimulating and intellectually-satisfying college experience.

Church And State Battles Essays - Archbishops Of Canterbury

Church And State Battles During the Middle Ages, church and state leaders had many battles. Some who were involved were Holy Roman Emperor Heinrich IV and Pope Gregory VIII; King II and Archbishop Thomas Becket; King Philip IV and Pope Boniface VIII. Their situations were all related by the fact that they were all controversies between an emperor or king and the Catholic church. The Holy Roman Emperor Heinrich (Henry) IV and Pope Gregory VIII's struggle was centered on by investiture. Henry invested many bishops at his own will even though Gregory had banned investiture by laity. Henry felt his investiture of bishops was necessary to the control of his kingdom, so he kept on doing it. Gregory responded to this by excommunicating Henry. Henry later apologized and received the Pope's forgiveness. Out of humiliation, he chased Gregory out of Rome and elected a new pope. King Henry II made his close and dear friend Thomas Becket Archbishop of Canterbury in hopes that since he and his friend were so close, Becket would give some power over the Church to Henry. Instead, Becket refused to do Henry's bidding and became a fierce champion of the independence and rights of the church. In 1170, Becket was killed during a church mass by four of Henry's knights. Henry surrendered to the Pope, who threatened him with excommunication. Thomas Becket was later named a saint and is a symbol of the struggle between church and state. Pope Boniface VIII believed that the Pope, whomever he may be, was always in higher power than the reigning king or emperor. Boniface issued a bull saying kings could not tax clergy, yet King Philip IV kept on taxing the Church. Boniface issued yet another bull titled the Unam Sanctum which stated that there were two powers in the universe: earthly (kings, emperors, etc.) and spiritual (God) and that spiritual is always higher than earthly. Since he represented God, Boniface said he had more power than Philip, but Philip just ignored Boniface's bull yet once more. Before Boniface could excommunicate Philip, Philip's soldiers kidnapped Boniface from his palace in Anagni in 1803. The people of Anagni eventually saved Boniface, but the Pope was so shocked, he soon died. As one can see, all these situations are closely tied together. They may have involved different people, but they all revolved around one thing. A controversy between church and state.

Foreign Policy of the Obama Administration

Foreign Policy of the Obama Administration Free Online Research Papers â€Å"There is a great exhalation of breath going on around the world. We’ve got a lot of damage to repair.† This are the words of Secretary of State Hillary Clinton, which I believe best describe the expectations and the also the objectives of the new American President Barack Obama. There is no doubt that those, who followed the 2008 US Presidential Elections, have witnessed history in the making, because this event will not affect only the future of the US but also of the entire international scene. But what damage exactly is Hillary Clinton speaking of? What are the main concerns of this Administration? Of course the immediate challenge of the Barack Obama is resolving the Economical crisis. But what I think to be one of the main reasons for which Obama was elected is the change he promised at an international level. What he must face first is the unpopularity of the US in the world, unpopularity that represents a great setback when it comes to Foreign Affairs. This problem is best described by Madeline Albright, former Secretary of State, who, when asked about the image of the US in the world, said: â€Å"I feel very strongly about this country, and what an exceptional country it is. But I honestly think it is about as bad as I’ve seen it†¦ I think Iraq will go down in history as the greatest disaster of American foreign policy – worse than Vietnam.† In his first major foreign policy speech of his campaign given on April 23, 2007 to the Chicago Council on Global Affairs, Obama delineated his foreign policy goals, emphasizing five key points: bringing a responsible end to this war in Iraq and refocusing on the critical challenges in the broader region,; building the first truly 21st century military and showing wisdom in how we deploy it,; marshalling a global effort to meet a threat that rises above all others in urgency – securing, destroying, and stopping the spread of weapons of mass destruction,; rebuild and construct the alliances and partnerships necessary to meet common challenges and confront common threats, and while America can help others build more secure societies, we must never forget that only the citizens of these nations can sustain them. As we see grand U.S. foreign policy goals will likely remain the same: The US will still wants to discourage security competition in Europe and Asia, prevent the emergence of hostile great powers, promote a more open world economy, inhibit the spread of weapons of mass destruction (WMD), and expand democracy and respect for human rights. Since 9/11 the campaign against global terrorism has been the central aim of American foreign and defense policy and with Obama as Commander-in-chief we will witness a return to where it started, Afghanistan. Right from his opening speech, Obama, expanding on his foreign policy, implied that he planed to set in motion the process of withdrawing from Iraq and maintaining the concentration over the conflict in Afghanistan. As one who considers himself to be a pragmatic when it comes to foreign policy, he stated even as early as 2002, in a speech, against the Iraq War, â€Å"I don’t oppose all wars†¦ What I am opposed to is a dumb war†¦ a rash war, a war based not on reason but on passion, not on principle but on politics†¦ I know also that Saddam poses no imminent and direct threat to the United States, or to its neighbors, that the Iraqi economy is in shambles, that the Iraqi military is a fraction of its former strength, and that in concert with the international community can be contained until, in the way of all petty dictators, he falls away into the dustbin of history. I know that even if a successful war against Iraq will require a US occupation of undetermine d length, at undetermined cost, with undetermined consequences.† Obama believes that the war was a strategic blunder and opposed it from the beginning: â€Å"This war distracts us from every threat that we face and so many opportunities that we could seize. This war diminishes our security, our standing in the world, our military, our economy, and the resources we need to confront the challenges of the twenty-first century. By any measure, our single-minded and open-ended focus on Iraq is not a sound strategy for keeping America safe.† He is on record as wanting to withdraw US forces from Iraq within 16 months. Given the decrease in violence in Iraq since the US ‘surge’ there has been greater responsibility of Iraqi affairs transferred to the Iraqi government themselves, this maybe possible. However, because it is a delicate situation any hastily withdraw of US forces may prove counter-productive as there is the potential for violence on a major scale to erupt again. As we said before, while the number of US troops in Iraq will decrease, the number in Afghanistan will rise as key decisions will be made on re-deployments. The Afghanistan/Pakistan region is central to US interests. This hot spot is of immense strategic importance not only to American security but also to global security. This area could also be seen as a potential bridge between South and Central Asia. Obama wants to focus American energies on the region. This is evident given his decision to visit Afghanistan before Iraq when he toured the Middle East in July 08. In a speech made also in July 08 Obama stated if elected president he would send more combat troops to Afghanistan, about 17,000, and focus on training their security forces, increase the non-military assistance in order to change the mindsets and livelihoods of the population in the hope that the economy would grow. And although he wants to change the US policy on Pakistan by tripling non-military aid to the country and help build a strong democracy which in turn would help towards securing nuclear weapons from terrorists and rogue states. What Obama is trying to get accomplished in Afghanistan and Pakistan is the disruption, dismantling, and defeat of al-Qaeda, the destruction of any al-Qaeda safe haven, to protect the Afghan government and to fortify the capability of the Afghan security forces and government to improve the protect of their population. There is also tension between India and Pakistan who both possess nuclear weapons. This conflict has been ongoing since August 1947 when India and Pakistan were created from British India. Recent developments in this conflict involve the Kashmir region with Pakistan controlling the northwest portion, India controlling the central and southern portion and China controlling the northeastern portion of Kashmir. The Obama Administration has received criticism in response to the lack of immediate interest in India, many of the former Bush Administration underlining the importance of having India as an ally in the region and urging Obama to improve his relations to the South-Asian state. Iran will also be high up on the agenda for President Obama. In July 07 Obama said he would meet with the leaders of Iran and other rogue states such as Syria and North Korea without pre-conditions. Now this stance has changed slightly to meeting them only after the proper ground work has been established and at a time and place of his choosing. It must be noted however, that the use of force against Iran has not been ruled out by Obama but he did say that â€Å"it would be a profound mistake for us to initiate a war with Iran.† Talking about the plans he has for the situation in the broader Middle East, in his Foreign Affairs article in July/August 2007, Obama stated that if elected President he wants a clear and strong commitment to the security of Israel and identify and strengthen those who are committed to peace and isolate those who seek conflict and instability. In relation to Syria, a similar process to that of Iran will be pursued, that of diplomacy and pressure. In regard to the problems between Israel and the Palestinians Obama expressed concern that Israeli settlements and demolition of Arab homes in East Jerusalem will slow down the peace process. Together with Secretary of State Clinton he also sustained the idea of establishing a Palestinian state a solution encouraged by Israeli Foreign Minister and opposition leader-to-be Tzipi Livni, but not sanctioned by Prime Minister-designate Benjamin Netanyahu. Obama also reprimanded the denial of the Holocaust and anti-Semitism declaring: Six million Jews were killed more than the entire Jewish population of Israel today. Denying that fact is baseless, ignorant, and hateful†¦Threatening Israel with destruction or repeating vile stereotypes about Jews is deeply wrong, and only serves to evoke in the minds of Israelis this most painful of memories while preventing the peace that the people of this region deserve. Obama believes the US should work closely with China and Russia to address the major issues facing not only the US but the world, climate change and spread of nuclear weapons. These issues are global problems which require global solutions thus working closely with these major powers is essential. Relations with China and Russia have been largely tranquil since 9/11, however this may change in the near future especially with Russia given the recent disagreements with the US over Georgia and the Polish missile defense. The main principles that should describe the US relations with Russia in the near future are co-operation and consultation. The first step worth mentioning would be the fact that Russia deferred its plan to place missiles on the Polish border near Kaliningrad after being assured by the Obama Administration that the former plans of deploying a missile defense shield in Poland and the Czech Republic are being reviewed. Of course, there still remain grounds on which the two â€Å"superpowers† will not agree upon, like recognition by the US of Abkhazia and South Ossetia as independent states or the existence of any type of sphere of influence. What’s more, former Secretary of State Henry Kissinger has been negotiating the reduction of nuclear inventories on behalf of the Obama Administration. Also President Obama met with President Medveev, and both declared that We are ready to move beyond Cold War mentalities and chart a fresh start in relations between our two countries. On July 6, 2009, President Barack Obama and President Dimitry Medveev held a three hour meeting in the Kremlin in Russia. They agreed to a reduction of their nuclear stockpiles within seven years after a new treaty is created. The START I treaty, which is the current nuclear weapons agreement between the two countries, expires in December 2009. With China economic issues may prove to be the key in US/China relations. Obama has argued for a strategy combining engagement and balancing, and encourages China to play a greater role in finding solutions to global problems. He is noted as saying â€Å"we will compete with China in some areas and cooperate in others. Our essential challenge is to build a relationship that broadens cooperation while strengthening our ability to compete.† On April 1, 2009, Obama and Hu Jintao announced the establishment of the high-level U.S.-China Strategic and Economic Dialogue co-chaired by Hillary Clinton and Timothy Geithner on the U.S. side and Dai Bingguo and Wang Qishan on the Chinese side. The meeting took place on July 27-28, 2009 in Washington, D.C. Closer alliances and increasing cooperation between the US and Russia and China will have another advantage when it comes to another situation that merits close US attention in the new Obama administration, North Korea. Recently its leader Kim Jong II has been reported as being in bad health thus the country faces an uncertain future and there is a risk that it will restart its nuclear program. It looks likely that China will be the key in persuading North Korea to pursue a non-nuclear path. Concerning Africa, Obama and many of his advisors have strong views on humanitarian intervention and given the fact that many African countries are in a volatile situation, and what some people may believe is Obama’s responsibility to protect, especially on the African continent, given his ancestral roots, the use of force maybe more prevalent. At some point in his campaign Obama mentioned that one of his main concerns for was trying to stop what U.S. officials have termed genocide in Darfur, fighting poverty, and expanding prosperity. Also an immense consideration will be directed towards the tensions in Sudan, Somalia and eastern Congo. A number of analysts consider that by nominating Susan Rice, the former assistant secretary of state for African affairs, as U.S. ambassador to the United Nations, Obama showed that he would make the African continent the main priority of his administration. On January 13 2009, Hillary Clinton depicted the foreign policy objectives of the Obama administration in Africa as rooted in security, political, economic and humanitarian interests. She added that some of the Obama administration objectives would comprise combating al-Qaidas efforts to seek safe havens in failed states in the Horn of Africa; helping African nations to conserve their natural resources and reap fair benefits from them; stopping war in Congo; ending autocracy in Zimbabwe and human devastation in Darfur. On April 8, 2009 Richard Phillips, a captain of an American cargo ship, was taken hostage by Somali pirates, in a unsuccessful effort to take over the Maersk Alabama. A rescue mission was carried out at the order of President Obama and on April 12, 2009 he was rescued. A memorandum of understanding with Kenya was signed by President Obama in which it was stated that pirates captured of Kenya’s coast are to be tried in Kenyan courts. This choice was deeply criticized, due to the existing fear that it would endanger relations with the Somalia President, Sheikh Sharif Sheikh Ahmed, on who, according to The New York Times, „the world is counting to tackle piracy and beat back the spread of militant Islam, two Somali problems that have flared into major geopolitical ones. Concerning Somalia there has been also talk that the US may supplement its arms consignment to Somalia from 40 tones to 80 tons, even as other reports show that part of these weapons may have ended into the hands of al-Shabab, the main opposition in Somalia. Due to globalization, China, Brazil and India along with a stronger European Union make it inevitable that the US no longer calls the shots alone in this new dispensation. Globalization requires more cooperation. Thus the concept of a single superpower world no longer fits. In Brazil, cooperation seems hard to achieve after the instatement of the American Recovery and Reinvestment Act of 2009, which contained a Buy American clause. Brazilian Foreign Minister Celso Amorim informed President Obama that Brazil will contest U.S. economic protectionism, which has become a concern after the latest economic recession. Also in the Western Hemisphere there is the issue of Cuba. On the subject of Cuba, Barack Obama declared in 2008 that, if elected, he will base his policy on libertad, and that he will urge the implementation of democratic reforms and that he will negotiate with the Cuban government a possible release of political prisoners. After being elected Obama enjoyed a great support from president Raul Castro with his idea of closing the Guantanamo Bay detention camp, although both Raul Castro, and his brother Fidel advocate a more radical measure, that of shutting down the entire Guantanamo Bay Naval Base and giving back that territory to Cuba. In concern to the embargo over Cuba, Obama is still against lifting the embargo, in his view a valuable tool in convincing the Cuban government to accept any type of reform , even though the United States House of Representatives is trying to alleviate certain travel and cash transactions imposed against Cuba by the U.S. In the same region we have the problem of Honduras, whose president was arrested and exiled, actions reprimanded by Obama. This resulted in the suspension of economic and military aid to the Honduran government. Then there is Venezuela. Although Barack Obama showed to be conciliant with Venezuela the Venezuelan President Hugo Chvez made it rather clear that he does not consider that the new American administration will bring along any changes. He even used tactless remarks to show his disapproval towards the American President: Dont mess with me, Mr. Obama, advised Chvez, who has been president of Venezuela since 1999. Then he accused the US President of not being aware of the situation in Latin and of not knowing the â€Å"suffering† that the US and Europe caused to the state of Latin America. Obama responded: We have at times been disengaged, and at times we sought to dictate our terms, but I pledge to you that we seek an equal partnership. There is no senior partner and junior partner in our relations. In Europe the issues that arose relate, except for Russia, to Estonia, Switzerland, Kosovo, Turkey, Ukraine and the United Kingdom. Estonia was and continues to be a small but vital ally of the United States in Afghanistan. President Ilves stated that while Estonia, like its allies, had experienced severe losses, they would make a huge effort and will not abandon the mission in Afghanistan. Regarding Kosovo, the United States is continuing its policy of recognition of the Republic of Kosovo under the Obama administration. The Obama administrations foreign policy toward Switzerland was characterized in a March 2009 editorial for The Guardian as increasingly hostile. Indeed, Obama always pressed for a clear out on tax havens , even as a senator Obama supporting the Stop Tax Havens Act of 2007, which acknowledged Switzerland as among 34 Offshore Secrecy Jurisdictions. In response the conservative Swiss Peoples Party proposed a number of disciplinary measures for Bern to inflict on the United States, including rejection of Guantnamo Bay prisoners and repatriation of Swiss gold from the U.S. On February 28, 2009, Swiss President Hans-Rudolf Merz suggested that Switzerland might need to make a few concessions on matters of bank secrecy in light of the financial crisis in order to avoid being sanctioned as an uncooperative tax haven. Former United States Ambassador to Switzerland Faith Whittlesey advised the Obama administration against taking too hostile an attitude with a government she characterized as stable, responsible[and] reliable, warning that a decline of relations with Switzerland could lead to greater economic chaos. Later the Obama Administration expressed their willingness to negotiate with Switzerland†. The Obama administration achieved a diplomatic victory when Switzerland stated that it would adjust its policy to OECD standards and from this time forth cooperate with foreign bodies on matters of international tax evasion. The United States assured the government of Ukraine that it would continue to support Ukraine’s bid to join NATO despite Russia’s objections, and that the reconstruction of US – Russia relations will not come at Ukraine’s expense and once again rejected the idea of a Russian sphere of influence: We must apply state sovereignty to all nations and that includes nations like Georgia and Ukraine. In London, questions came up concerning Obamas goals as regards to the future of the special relationship between the U.S. and its past colonial administrator. Some believe that Obama will approach relations with the U.K. in a more businesslike, less personal way. Nevertheless, on March 1, 2009, Brown addressed the topic of joint Anglo-American leadership to combat the recession in a column for The Sunday Times. He declared that he and Obama would talk about a global new deal that would support integrated action by different national governments to drive away the effects of the economic crisis, as well as international collaboration to establish the reform of challenging industries, such as financial corporations. Ties with Turkey were strained under the George W. Bush administration, in part due to Turkish military operations into northern Iraq in 2008. Visits were made by Obama’s staff and Obama himself in an attempt to restore the strategic partnership between the United States and Turkey. He said Turkeys accession to the European Union would send an important signal to the Muslim world and firmly anchor the country in Europe. The trip celebrated Obamas foremost visit to a Muslim majority country. Obama has emphasized that a secure rapport with a stable, democratic, Western-oriented Republic of Turkey is a vital U.S. national concern. His administration stated that the U.S. will sustain the encouragement of democracy, human rights, and freedom of expression in Turkey and sustain its efforts to join the European Union, which the president confirmed on his April visit. In the beginning, we mentioned that Obama considered himself to be a pragmatic. He also presents himself as an idealist and therefore would agree with an element of Bush’s foreign policy – freedom’s universal appeal, though he would differ when it comes to the use of force abroad to bring about freedom. The means employed to achieve the ends of US foreign policy is where Obama and his democratic administration differ from that of Bush. While Bush’s methods depended more on a one-sided use of force which was more state-centric, Obama prefers a joint tactic with a stress on non-state actors and non-traditional security threats. Obama believes that America is stronger and is more respected when it works with its allies and institutions in order to protect American power. The international system is looked through the lens of globalization rather than a contest between states. States need to work together to discover incorporated and joint answers to the different international threats every state faces: â€Å"dangers that cannot be contained within the borders of a country or by the distance of an ocean.† Even though the management of the US military and its use of force will be the central element to the success of any of the foreign policy challenges facing the new Obama administration, Obama wants to increase the number of US military personnel and increase their ability to fight insurgencies and advise foreign forces. In other words, he wants to increase the role of the non-conventional way of war. In his Foreign Affairs article Obama affirmed that, â€Å"The Bush administration responded to the unconventional attacks of 9/11 with conventional thinking of the past, largely viewing problems as state-based and principally amenable to military solutions.† However, military solutions to these problem states have proven not to be the case in the post-Cold War world. Obama has shown a tendency to shift the focus of American foreign policy away from its traditional reliance on the use of force, to more of a strengthening of non-military elements of state-craft such as diplomac y and state-building. In his New Strategy for a New World he said, â€Å"Instead of pushing the entire burden of our foreign policy on to the brave men and women of our military, I want to use all elements of American power to keep us safe, and prosperous, and free†¦ I will pursue a tough, smart and principled national security strategy, one that recognizes that we have interests not only in Baghdad, but in Kandahar, and Karachi, in Tokyo and London, in Beijing and Berlin.† Although the main reason of his election is the message of change which he transmitted, President Barack Obama, and also his staff, declared that not every decision made in the past will be repudiated. Given Obama’s message of change and the fact that he has presented himself as a pragmatist, focusing on diplomacy and partnership, many may be surprised about his style of foreign policy in the fact that it may not produce the dramatic shifts that they anticipate. The US has to consider its geo-political position and will not want to make any rash changes in its foreign policy which may be seen by friend or foe as a sign of weakness. Furthermore, it must also be noted that during Bush’s second term there was a move away from the unilateralist state-centric approach that dominated his first term in office, to more multilateralism with a focus on diplomacy in the style that Obama has advocated. In January 2006 US Secretary of State Condoleezza Rice introduced a document known as Transformational Diplomacy which set out how US foreign policy will be conducted in the final years of the Bush administration. There was a greater emphasis on diplomacy and working closely with alliances. Rice portrayed it as, â€Å"working with our many partners around the world†¦ and building and sustaining democratic, well-governed states that will respond to the needs of their people and conduct themselves responsibly in the international system.† Moreover, we only have to look at the examples of the change in Bush’s second term term; the deal with North Korea to contain its nuclear arms development, the acceptance of the idea of a timetable for Iraqi withdrawal, contemplating diplomacy with Iran, and talks with some elements of the Taliban in Afghanistan. Unfortunately for Bush his 8 years in office will be remembered for the foreign policy of his first 4 years – the Bush doctrine of preventive war. The changes in foreign policy in his second term have been rather overlooked by the vast majority of people. However, Obama is the one who emphasized during his campaign the importance of diplomacy. Like Secretary of State Clinton declared: We must use what has been called smart power, the full range of tools at our disposal - diplomatic, economic, military, political, legal and cultural - picking the right tool or combination of tools for each situation. With smart power, diplomacy will be the vanguard of our foreign policy. We will conclude with one of the best and to the point descriptions of what Washington Post columnist E.J. Dionne describes as â€Å"The Obama Doctrine†, and that is a form of realism unafraid to deploy American power but mindful that its use must be tempered by practical limits and a dose of self-awareness. Bibliography: 1. http://allafrica.com 2. http://blogs.wsj.com 3. http://finance.yahoo.com 4. http://inthesenewtimes.com 5. http://levin.senate.gov 6. http://news.bbc.co.uk 7. http://uk.reuters.com 8. alertnet.org 9. allheadlinenews.com 10. america.gov 11. barackobama.com 12. breitbart.com 13. cfr.org 14. cnn.com 15. dailytimes.com.pk 16. foreignaffairs.org 17. foreignpolicy.com 18. foxbusiness.com 19. ft.com 20. guardian.co.uk 21. haaretz.com 22. huffingtonpost.com 23. hurriyet.com.tr 24. iht.com 25. latimes.com 26. my.barackobama.com 27. newstoday.co.za 28. nytimes.com 29. poligazette.com 30. politico.com 31. reuters.com 32. rferl.org 33. state.gov 34. swissinfo.ch 35. telegraph.co.uk 36. telegraph.co.uk 37. themoscowtimes.com 38. timesonline.co.uk 39. usatoday.com 40. voanews.com 41. washingtonpost.com 42. whitehouse.gov Research Papers on Foreign Policy of the Obama AdministrationAppeasement Policy Towards the Outbreak of World War 2Hip-Hop is ArtPETSTEL analysis of IndiaTwilight of the UAWDefinition of Export QuotasQuebec and CanadaOpen Architechture a white paper19 Century Society: A Deeply Divided EraRelationship between Media Coverage and Social andBringing Democracy to Africa

Globalisation of Business Activities Essay Example | Topics and Well Written Essays - 2500 words

Globalisation of Business Activities - Essay Example There are video phones, fax machines, video conferencing facilities which helps in connecting people with ease. Movement of People: There have been a number of people who travel for higher education and new job. There are number of people from the developing and under developed countries who migrate to different countries owing to the low standard of living, for higher education and better job opportunities. There have also been foreign investments in developing countries as there are ample opportunities for growth and development. Multinational Companies and NGO’s: There are a number of organizations who are making the general public aware of number of issues and health problems ,the role of non-governmental organization is to bring together the government, people affiliated. Some examples of NGO’s include the Amnesty International or Doctors without Borders. There are also many multinational corporations that are willing to diversify and open up markets in order to access new venues and markets. (Colin,2008) In 2003, approximately 300,000 jobs were outsourced to foreign countries mainly India and China. Research states that by 2015, 3.4 million jobs will be outsourced to other countries from US alone. The main reasons for the shift are due of the following reasons: Balancing risks and rewards are very important for the manufacturing company. There are some risk factors such as financial, business continuity, recovery, political and exchange rates that the manufacturing companies need to keep in mind before outsourcing. Many companies prefer to invest their profits back into the market but are limited as the market is not matured. Hence the overseas markets prove to be a good option for growth opportunities and expand their markets. The companies also try to maximize the efficiency and effectiveness of the process by using the resources in management, administration,