The Myth of Sisyphus

Blanca Seynos The Myth of Sisyphus In the essay of â€Å"The Myth of Sisyphus† Albert Camus suggests that there is a possibility that there is no real meaning to life and that as humans, it is a pointless gesture to go looking for this religious or universal meaning. Camus uses Sisyphus as his prime example of this. Sisyphus, a punished human for â€Å"certain levity in regard to the gods† has to do a pointless task of pushing a rock up a hill repeatedly. This punishment itself reflects the ideas of the absurd.Camus believes that death is at the end of every person’s life but people still go on looking for this purpose but it is pointless because the people all end up the same, dead, but the pursuit of the purpose can possibly hold meaning. Sisyphus along his endless task finds sadness and joy. According to Camus there’s no sun without shadow which is that there is no joy without pain. Camus proposes that Sisyphus is happy when he acknowledges his conseque nces, the pain of what his life has come down to and accepts his fate.Individuals often try to comprehend and answer the question â€Å"What is our purpose in life? † and fail to speak out because they are constantly puzzled about what their purpose is in life, and so is Sisyphus. Sisyphus is constantly trying to find hope or meaning in his task, but he cannot find a meaning for his existence. The fate of Sisyphus’ is settled for eternity and until Sisyphus pushes the rock forward and up the hill, his purpose for that is just to roll the rock.Sisyphus small amount of hope keeps him content that he is able to have a solid purpose that he can see and feel the rock even though in the end of the task it is meaningless as the rock will drop back down the hill. I disagree with Camus’ view that there is no real meaning to life because, as a young Christian at an Evangelistic Church, to know God and enjoy him forever is the meaning of life. The reason this is the meanin g of life is because God created us that way. God created a beautiful world and put humanity in it to live and prosper, but overall to have a relationship ith him. This was the purpose of our creation. We are most happy, fulfilled and complete when we are worshiping and being in a relationship with our Lord. By ignoring God and not having that relationship with him is a sin. Having that sin in your live is what makes your live less than what they could be. People live outside in the cold when God wants them to come into his house and live with him. It is then when we turn back to God and stop ignoring him what he will find true happiness and fulfillment.Our role in this world is to seek out and encourage one another in love and walking in faith. This modern world is so focused on individualism that being part of and serving in a community loses its path leading people to feel alone. Our lives today are to live in a way that we serve God and the people he has put in our community. Ca mus believed that life was pointless because no matter what accomplishments you achieved you would die and that will be the end of them, but it’s not like that. God holds us responsible for our failure.Jesus teaches about a time in the future when we will all have to come before God in judgment and face the consequences for the way we have lived. If you confess with your mouth that Jesus is Lord and believe in your heart that God raised him from the dead, you’ll be saved and that will be your purpose for living. Camus’ introduced the option that life is meaningless by interpreting the idea of absurdity and how giving meaning to life in ways such as religiously, is inevitably pointless because in the end death is terminal.Camus’ suggests that happiness arises from absurdity when one learns and accepts death. Sisyphus is a happy man because he was able to come to terms with his punishment although it had to be eternal. Unlike, Camus’ idea being able to believe that the more you grow in your understanding of what God has done in your live, the more you will want others to know about it, and how God can change their lives for the better. As you relate to God, and live according to his direction, others will notice a difference in you. God has given us the great opportunity of sharing his love with others.

Barriers to Communication Essay

The communication topic that I have chosen to write about is The Barriers to Communication in the in the workplace. My focus will be on the Apple Organization as well as other organizations that have had communications issues. My interest in this topic stems from the fact that I’ve encountered many barriers to effective communication while in the work place. I understand personally how ineffective communication by all levels of an organization can lead to the decrease work morals, productivity etc. I am also interested in this topic in that as a Business Management major I would like to be as affective in my communication with the organization I will join as well as with the individuals that will comprise the company. Based on a research done In July 2011, a Maritz Poll, an annual employee attitude survey conducted by Maritz Research, reported that 25 percent of employees indicated having less trust in their management than they did the previous year. Bad communication breaks down trust. Barriers to communication in the work place can be very detrimental to the sustainability, longevity and success to the organization. There are numerous barriers that effect communication in the work place. According to skillsyouneed.com, these barriers range from nonverbal communication, lack of feedback and cultural differences. These barriers to communication may and can occur at any stage in the communication process. Barriers may lead to your message becoming distorted and you therefore risk wasting both time and/or money by causing confusion and misunderstanding. Effective communication involves overcoming these barriers and conveying a clear and concise message. References Barriers to effective communication. (n.d.). Retrieved from http://www.skillsyouneed.com/ips/barriers-communication.html Duggan, T. (n.d.). Communication problems in a business. Retrieved from http://smallbusiness.chron.com/communication-problems-business-2828.html

Differing Scholarly Views on the Euthanasia Situation

Differing Scholarly Views on the Euthanasia Situation People in Canada are diagnosed with terminal illness’ every day. They know when they are going to die and often suffer until then. Why can’t patients diagnosed with a terminal illness be given the option to be euthanized? It would allow such patients to die painlessly and peacefully instead of having to suffer. While currently illegal in all but five areas of the world, assisted suicide and euthanasia are quickly becoming a more prevalent topic globally with more and more countries looking at making the move to legalize the acts.It has been legalized nationally in countries such as the Netherlands, Luxembourg and Belgium while also being legalized in the states of Oregon and Washington in the United States of America. The article from the New England Journal of Medicine, Redefining Physicians` Role in Assisted Dying by Lisa Lehmann, uses the state of Oregon as a basis for much of her research and probing into both si des of the argument behind euthanasia.Margaret Somerville, a world renown ethicist and academic known for some of her controversial views, also gives her own insight into the topic in the article Legalized Euthanasia Only a Breath Away, published by the Globe and Mail. Somerville bases much of her argument around personal opinions and strong beliefs. I will examine the merits and proposals brought forth by each author and compare them to each other. The contrast between these two papers is quite evident in ways of structure and delivery of information.In Somerville`s article, she establishes early on that, morally speaking, assisted death is a blatant disregard for the sanctity and respect for human life. She even goes as far as to call it â€Å"unconstitutional†. When describing the people who stand on either side of this argument of legalizing euthanasia, she says, â€Å"†¦it comes down to a direct conflict between the value of respect for human life, on the one hand, and individual rights to autonomy and self-determination – the value of `choice`- on the other. She establishes the two positions one has to choose from in the argument over this topic and leaves little room for change on either side. This entire argument being based solely on her opinion and giving no facts to back either of the positions makes it very biased in favour of keeping euthanasia illegal. In Somerville’s article, she shows the availability of the process in Oregon and how it is very helpful to those who seek it out. Somerville believes that no one should have control over whether another human lives or dies.That is why she believes euthanasia should be an available option to terminal patients. One of the driving points that Somerville delivers is that, â€Å"research shows that the most likely reasons people want assisted suicide/euthanasia are fear of being abandoned – dying alone and unloved. † Without any source cited for the research, it brings the validity of the argument into question. It seems more of a popular opinion twisted into a fact for the purpose of supporting an argument, especially after comparing Lehmann’s article is read.She quotes from the thirteenth annual report from Oregon`s Death with Dignity Act that, â€Å"Most (patients) say that they are motivated by a loss of autonomy and an inability to engage in activities that give their meaning† as the primary reason for considering euthanasia in Oregon. It also cites lack of ability to control pain being one of the least common reasons for euthanizing as well, due in regards to the leaps and bounds modern medicine has made in palliative care in contrast to the 60’s. Having an element of control over the time one dies and how it happens is something that is understandable for many terminal patients to desire.Knowing when they are supposed to die makes it very hard for terminal patients to fully enjoy any life experiences because they constantly remind themselves of how little time they have until their death. This statement brings doubt to the â€Å"research† that Somerville uses to fortify her stance against assisted death, especially with a lack of a credible source into said research. Within Lehman’s article, she states some main objections to euthanasia commonly used by critics. One is that having an option to end one’s life will reduce the quality of palliative care.But that is not the case in Oregon. Lehman’s research has shown that overall spending and patient ratings on palliative care have consistently risen in the thirteen year period that euthanasia has been legal. Another popular objection is that practitioners of euthanasia are working on a â€Å"slippery slope† and that the process for selecting euthanasia candidates will someday be expanded to accept patients with nonterminal illnesses or even non-voluntary euthanasia. But within Oregon, Lehman describes how a p atient must go a long process before actually being euthanized.A panel of medical professionals considers many different factors of the patient such as diagnosis, pain tolerance, depression, state of mind, and many others. This process takes at least 2-4 weeks. After taking all the factors into consideration, the patient will be given the panel’s decision on whether they are a candidate for euthanasia. Strict tangencies such as the review panel that are in place within Oregon will prevent any change to euthanasia laws. The guidelines are very â€Å"black and white† so there are no misinterpretations and the laws are set in stone.Lehman’s opinions are well thought out and well supported by the research into the process in Oregon, one of the few places on Earth with a legal euthanasia practice. Research into the selection process directly contradicts many popular objection made by critics against legalization of euthanasia. Opinions are very powerful tools that ca n greatly influence the outcome and views of others in open and controversial topics. Opinions should be based around factual information and solid research, not personal beliefs and motives. This is the clear case between Somerville’s and Lehmann’s articles.Both being very qualified and knowledgeable in different areas of study, Lehman simply uses her research and time resources fully and reaps the rewards of having a very strong opinion based around factual information based on the foundations of research. Lehman’s opinion will carry much more weight that Somerville’s which is based off unproven claims and research with no citations. When it comes to controversial topics such as euthanasia, it is important to collect as much information as possible before making an informed decision on whether to have it as an option to terminal patients or not.The decision made will impact people’s lives one way or another. It’s just a matter of which dec ision will have a greater benefit for the human population. Author. â€Å"Title of Article. † Name of Magazine. Name of Publisher, Day Mon. Year: Pages. Medium. Date you accessed it. Somerville, M. â€Å"Legalized Euthanasia Only A Breath Away. † Globe and Mail, 16 June. 2012. Retrieved October 14, 2012 Lehmann, L. â€Å"Redefining Physician’s Role in Assisted Dying. † New England Journal of Medicine, 12 July. 2012: 97-99. 367. Retrieved October 14, 2012 Word Count: 1195

Critical thinking case Essay Example | Topics and Well Written Essays - 250 words

Critical thinking case - Essay Example The video begins with explanatory scenes describing the birth of the saint. Further it shows his critical stages in growth including his different stages of education. Interestingly, the video while critically analyzing the ideologies of Ramana Maharshi, it has been ensured that the message of religious harmony is included in varying levels in each and every frame. The video stresses on the philosophies of Ramana Maharshi, which expresses his consent on the need for unity among religions. The video asserts that it is never necessary to belong to any religion so as to know and understand the spiritual truth. In totality, the messages conveyed through the videos speak of the real point of unity among all religions and any other criteria that classifies mankind. This real point is the truth with in oneself. When one realizes that, he or she becomes automatically in harmony with the nature, humanity and thus with every religions as

Canadian Aboriginal Residential Schools Essay Example | Topics and Well Written Essays - 500 words

Canadian Aboriginal Residential Schools - Essay Example While the effort might have been successful in mitigating native cultural attachment, it has been found out that many residential school students were subjected to physical, emotional, and sexual abuse. Brasfield (2001) claims that many former residential school students experience a similar form of condition as post-traumatic stress disorder, which he calls residential school syndrome. The Canadian government has set up a Truth and Reconciliation Commission that aims at compensating for any abuse they have gone through. However, a greater concern is the implication of residential schools on the current generation of aboriginal Indians whose parents or grandparents have been former residential school students. This paper will explore the impact of residential schools on the current generation of aboriginal Indians in terms of education, income, job opportunities, health services, and child care facilities.Beaulne-Stuebing (2013) cites the findings of a report produced by the Canadian Human rights Commission which points out that there still exists a great well-being divide between aboriginal natives and the non-aboriginals of Canada. The statistical figures take a look at Metis and Inuit Indians and demonstrate marked inequalities between native aboriginals and non-aboriginals. In fact, the social inequality between the two groups is the most significant artifact of colonialism with aboriginals being one of the poorest ethnic groups of Canada (Wilson and MacDonald, 2010).

Entrepreneurship and Innovation Research Paper Example | Topics and Well Written Essays - 3000 words

Entrepreneurship and Innovation - Research Paper Example There is no fast forward way of attaining innovation in any process or technology. Rather the journey is strewn with intermittent success and failures and long periods of stagnation. Innovation has occurred in all spheres of activity starting from the development of products to the development of services. In the last 70 or 80 years the Information Technology industry witnessed the highest degree of innovation. The innovation of the Information Technology industry and the electronics hardware industry were followed with equivalent degree of innovation in the telecommunication industry (Achrol, 2011). The process of innovation of Omantel is discussed in this research study. For a better comprehension of the research methodology, the whole research is divided into 4 parts. In the first part of the discussion the process and technique of innovation is assessed and analysed. The strategy followed for managing the innovation of Omantel is discussed. The latter parts of the discussion are about the company establishes an innovative environment within its organisation and the strategic implications for Omantel based in Oman. Assessment and reflection on the process and techniques of innovation Schumpeter’s Theories of Innovation is discussed in this section along with other related theories. ... In order to bring innovation the entrepreneurs need to access capital and resources. Innovation and price competition are sides of two different coins, where one negates the other. If firms compete on the basis of price then only price classification occurs with no or little innovation. In order to make sure that the correct path is taken which will lead to innovation, it is absolute necessary to control the process applied. Whereas, if only inputs are considered as the most important entity rather than the process of innovation itself, then more time is wasted before innovation is finally achieved. Innovations as well as developments are non exogenous in nature. This means that innovation can occur, by simply using the internal factors present in the economic system. Fig 1: Cycle of innovation Source: (Andrews and Smith, 1996) Some of the most important factors that lead to the excellent growth of innovation are entrepreneurship and in-house capability to conduct the research and de velopments. Entrepreneurship still remains to be the most important factor among all the other factors. Instead of going for a competitive pricing strategy, a simple method of pricing is followed (Bajaj, 2001). The base price is fixed by taking into consideration the high quality of the integrated components. For example, the organisations which decided to simply add features to their previous models of products or services were outsold by those organisations that considered innovation rather than mere up gradations. Organisations like Nokia focused on innovation, while Sony and Motorola focused on up gradation only. As a result Nokia outperformed and outsmarted the other two organisations significantly which focused more on pricing strategy (Benner and Sandstrom, 2012). Those products

Project Management White Paper Report Essay Example | Topics and Well Written Essays - 1000 words

Project Management White Paper Report - Essay Example Application of project management tools, techniques and skills will generally increase the probability of success over a wide range of projects. The Project Management Institute (PMI) has produced a guidebook to project management which contains recognized best practices standard for project management. It is incumbent upon the urban planners to apply the practices in a way befitting urban planning and development projects. 1.2 Urban Planning Project Characteristics Urban planning projects can generally be characterized as complex, interdependent projects which are mostly dependent on public needs and urban policies. Rapid transformations in the urban environment through new developments, population increases, improvement in technology and concern for environmental conservation make urban planning projects highly reliant on high quality project managers. ... The white paper anticipates that application of these project management principles will ensure that urban planning projects are acceptable to the beneficiaries of the projects, mainly urban developers and dwellers. This paper will briefly highlight the most critical principles and procedures of project management that are applicable in urban planning while providing examples of tools and guidelines that are already being used in urban planning project management. Basically, a structured approach to the execution of urban planning projects produces results that are beneficial to both the planners and beneficiaries of the project. 3. DISCUSSION 3.1 Technology Readiness in Urban Planning Technological development is now advanced in all fields including urban planning where various kinds of new technology are available for use in various areas. It is quite useful to apply structured evaluation of technology readiness in urban planning project execution. A Technology Readiness Scale (TRL ) can be applied in the assessment and communication of technology readiness in urban planning. This is a simple scale that is graded to measure the technology ranging from its lowest level of readiness (First application after development) and its highest level where application of the technology has been proven through successful implementation and operation. It is through technology readiness measurement that project teams can identify critical technology to assist in the accomplishment of urban planning project goals. 3.2 Progressive Scope Urban Planning projects can generally be characterized by two main phases where development plans are prepared through research and development of architectural, and implementation which largely consists of demolitions and construction. The key

Are Neuroscientists Able to Explain Human Consciousness Essay

Are Neuroscientists Able to Explain Human Consciousness - Essay Example The essay "Are Neuroscientists Able to Explain Human Consciousness?" talks about the different aspects of neuroscience in the context of human consciousness studies and how these studies have changed with the time. It would be an exaggeration to say that neuroscientists have no clue whatsoever to how consciousness is possible. In fact, neuroscientists have certain facts at hand to give them a hint. As whatever consciousness ultimately might be, it is somehow based on the workings of the central nervous system. This is something humans have not always known: For Aristotle, it was the heart, not the brain that was the seat of human mental life. In fact, Aristotle explicitly denied that the brain could be the sensory center. Before the advent of modern neuroscience, consciousness was a subject for philosophical debate or qualitative psychological descriptions based on introspection. In some schools of psychology, such as behaviorism, it was placed outside of the scientific program, and considered to be a kind of epiphenomenon. More recently, cognitive psychologists have taken certain functional aspects of consciousness as an unanalyzed basis for their studies on human perception and even with a certain degree of success. Such a position does not go far enough, however. Any attempt to account for higher brain functions in terms of the physical organization of the brain itself and of its constituent neurons is confronted sooner or later with the need for a detailed analysis of consciousness based on brain structure.

China's Qing Dynasty and its Collapse Research Paper

China's Qing Dynasty and its Collapse - Research Paper Example The Qing dynasty was started by a Manchu tribe, the Jurchen Aisin Gioro clan, from northeast of China (â€Å"Qing Dynasty†). The first three rulers had peaceful and prosperous reign and the administrative system used by the Qing rulers had mostly been inherited from the Ming dynasty with minor modifications. The military setup under the Qing was noteworthy. The army which was owned by the ruler was divided into separate units that had individual banners and troops. The civil servants were sometimes chosen from the banner men.The Qing dynasty was able to preserve its identity although it reigned over the Chinese. The rulers would go back to Manchuria during summertime and would speak their language. They even prohibited inter-marriages between Manchus and Chinese. The Manchu troops and Chinese troops were delegated with duties separately. Several other changes in social behavior such as men shaving heads and wearing queues were initiated. However, the peace during the early par t of their rule allowed for growth and development in all areas such as public works. The taxation structure was light, and the benevolent rulers would even reduce taxes during famine. This led to a spurt in the growth of trade and commerce. Art and learning were patronized. Porcelain painting was revived with new shades of colors, and European influence could be observed in the samples of that era.Under Qianlong’s rule, China had the largest territory ever. Signs of internal disturbances were becoming evident.... The impoverished masses rose in the form of popular uprisings, and though they were effectively handled, the causes for the uprisings remained unresolved. Some of these reasons were to provide the fuel for future uprisings such as that of the Taiping rebellion in the 1850s and 1860s, which would prove to be a big blow to the Qing dynasty. However, the disintegration of the empire did not seem evident till the mid nineteenth century. The major reasons for the decline of the Qing dynasty can be put under several heads. 1 - Backward Imperialism The last few rulers of the Qing dynasty were trapped in backward traditions and did not keep up with technological advancements of other nations in the contemporary context. They thought of themselves as divine rulers of a grand nation and looked at European inventions such as canons and artillery with suspicion. Hence, they failed to upgrade their war equipment and lacked modern infrastructure as well. In comparison to the Self Strengthening Mov ement in China (1861-1895), the Meiji Restoration in Japan was very successful and this gave the Japanese the role of a formidable opponent during the late nineteenth century. This even resulted in losing the First Sino-Japanese war in 1894-95. 2 - Foreign invasion Another reason why the Qing dynasty began to fail was that of the strong European colonial influences. Britain was interested in trade with China for tea and silk. However, with nothing else to import the British started opium trade with the Chinese. This proved to be a disaster for the people of China since many got addicted to opium and began producing it in land plots meant for food grains. Also, the high exchange rates of opium put a

Using Global Variables Essay Example for Free

Using Global Variables Essay Global variables are variables that are visible to every module in the program and its scope is the entire program so that all of the modules within the program can access a global variable. They can be declared in modules by simply setting up an assignment box and adding in the variables to the modules. In Pseudocode, you will simply write out the particular variable you want to declare and its value. Many programmers go against the idea of using global variables in modules but there are a few good sides to using global variables. For one, the global variables are very easy to find within modules and can be accessed throughout all of them. Global variables also make it easier to update the objects code and on the APL*PLUS II/III systems, the correct signature in the first element can be installed once, and when the object is loaded into the workspace, instead of having to be done each time the FastFN is called. It is suggested that you try to avoid using global variables when unnecessary for several reasons. Non-locality, in other words, source code is easy to understand when the scope of its individual elements is limited. Global variables can be read or modified by any part of the program, which makes it difficult to remember or reason about every possible use. Global variables also give no access or control or constraint checking. Global variables can be set by any part of the program, and any rules regarding its use can be easily broken or forgotten by extension, the lack of access control greatly hinders achieving security in situations where you may wish to run untrusted code. Global variables also lead to concurrency issues. If global variables can be accessed by multiple threads of execution, synchronization is necessary. When dynamically linking modules with globals, the composed system might not be thread-safe even if two independent modules tested in dozens of different contexts were safe. They also create Namespace pollution because the global names are everywhere. Memory allocation issues are also big when it comes to using global variables. Some environments have memory allocation schemes that make allocation of globals tricky. References Gaddis, T. (2010). Global Variables and Global Constants. Starting out with programming logic design (pp. 104-105). Boston: Pearson Addison Wesley. Global Variables. (n.d.). Global Variables. Retrieved April 20, 2014, from http://www.chilton.com/~jimw/globals.html Global Variables Are Bad. (n.d.). Global Variables Are Bad. Retrieved April 21, 2014, from http://c2.com/cgi/wiki?GlobalVariablesAreBad Pros and Cons of Using Global Variables. (n.d.). Pros and Cons of Using Global Variables. Retrieved April 20, 2014, from http://social.msdn.microsoft.com/Forums/vstudio/en-US/53ae563a-bb7d-4526-b7c6-8e58c7bb62e6/pros-and-cons-of-using-global-variables?forum=csharpgeneral

Water Security Concept And Factors Environmental Sciences Essay

Water Security Concept And Factors Environmental Sciences Essay Water security simply means availability of water and secure rights to use potable water for the present and future generations. Water security has been recognised as being important enough to be enshrined in UN Human Rights Resolutions and is now a cornerstone of the UNs Millennium Development Goals  [1]  . The concept of water security includes regional and global availability of water, environment issues, access issues and water stress. Water insecurity is all pervasive in the South Asian region, visible in conflicts and tensions erupting within and across countries. Therefore, the need to integrate water security as a key component of human security is crucial. Availability of Water. Water is widely distributed on Earth as freshwater and salt water. The bulk of the water on Earth is regarded as saline or salt water, which amounts to over 98% of the total water on Earth. The remainder of the Earths water constitutes the fresh water; this also happens to be very unevenly distributed. Nearly 70% of the fresh water is frozen in the icecaps of Antarctica and Greenland. Besides this, most of the remainder is present as soil moisture, or lies in deep underground aquifers as groundwater not accessible to human use. Only less than 0.1% of the worlds fresh water (~0.007% of all water on earth) is accessible for direct human uses  [2]  . This is the water found in lakes, rivers, reservoirs and those underground sources that are shallow enough to be tapped at an affordable cost. Water Consumption. The six billion people of Planet Earth use nearly 30% of the worlds total accessible renewal supply of water. By 2025, that value may reach 70%. Yet, at present billions of people lack basic water services and millions die each year from water-related diseases. Some believe that fresh water will be a critical limiting resource for many regions in the near future. About one-third of the worlds population lives in countries that are experiencing water stress. In Asia, where water has always been regarded as an abundant resource, per capita availability declined by 40-60% between 1955 and 1990. Projections suggest that most Asian countries will have severe water problems by the year 2025. Water Security. Water security is an elusive concept, but consensus is beginning to emerge in the world community as to its dimensions, its parameters, and the best approaches for its achievement. The Second World Water Forum Ministerial Declaration (2000), endorsed that water security implies the following:- Human access to safe and affordable water for health and well-being. Assurance of economic and political stability. Protection of human populations from the risks of water-related hazards. Equitable and cooperative sharing of water resources. Complete and fair valuation of the resource. Sustainability of ecosystems at all parts of the hydrologic cycle. Dimensions of Water Security The issue of water security has several dimensions such as competing uses, degradation of quality and scarcity. World Bank defines it as a combination of increased productivity and diminished destructivity of water. In the past, the competition for water has triggered social tensions and conflicts between water-use sectors and provinces as the domestic demands for water has forced governments to plan and invest in grand water projects such as the River-Linking Project by India and Three Gorges project by China. The water profile of the region with complex interdependencies implies that internal dynamics within a nation may now increasingly manifest itself in an inter-State dimension. Water is arguably one of humanitys most valuable resources and that is why all ancient civilizations grew along rivers be it the Indus or the Nile. It has come under increased demand due to rapid population and economic growth and may become a constant source of conflicts both within the countries as well as between countries. South Asia is an apt case study of water both as a source of cooperation and as well as conflict. The concern for water is more pressing in the South Asian mainland consisting of India, Pakistan, Bangladesh, Bhutan, Afghanistan and Nepal. The China factor and impact of its water policies has added another dimension to the problem. Water scarcity is a serious and growing problem throughout the world, and the twin pressures of Population Growth and Climate Change will only intensify this problem. The United Nations estimates that the number of people living in water-stressed countries will increase from about 700 million today to more than 3 billion by 2035  [3]  . The developing world alone will be home to 90 % of the 3 billion people expected to be added to the global population by 2025. It is estimated that by 2025, over half of the worlds inhabitants will be directly affected by water scarcity. Most of them will live in either China or India. China has access to about 7% cent of the worlds water resources, but is home to around 20% of the global population, while India possesses around 4% of water resources with only a slightly smaller populace  [4]  . Both countries, along with eight other Asian nations and 47% of the worlds people, are heavily dependent on the Tibetan Plateau for water. Any water policies for the region therefore will have a transnational impact. Measured by conventional indicators, water stress, which occurs when the demand for water exceeds the available amount during a certain period or when poor quality restricts its use, is increasing rapidly, especially in developing countries like India and China. According to the 2006 Human Development Report  [5]  , approximately 700 million people in 43 countries live below the water-stress threshold of 1,700 cubic meters per person. By 2025, this figure will reach 3 billion, as water stress intensifies in China, India, and South Asia. Factors Determining Water Security The scale of the ever-present societal challenge of achieving and sustaining water security is determined by many factors, of which three stand out. First there is the hydrologic environment, the absolute level of water resource availability, its inter- and intra-annual variability and its spatial distribution, which is a natural legacy that a society inherits. Second, there is the socio-economic environment, the structure of the economy and the behavior of its actors, which will re ¬Ã¢â‚¬Å¡ect natural and cultural legacies and policy choices. Third, there will be changes in the future environment, with considerable and growing evidence that climate change will be a major part. These factors will play important roles in determining the institutions and the types and scales of infrastructure needed to achieve water security. The Hydrologic Environment Relatively low rainfall variability, with rain distributed throughout the year and Perennial River  ¬Ã¢â‚¬Å¡ows sustained by groundwater base  ¬Ã¢â‚¬Å¡ows, results in hydrology that is relatively easy to manage. Achieving a basic level of water security is straightforward and requires comparatively low levels of skill and investment (primarily because water is suf ¬Ã‚ cient, widespread and relatively reliable). Dif ¬Ã‚ cult hydrologies are those of absolute water scarcity (i.e. deserts) and, at the other extreme, low-lying lands where there is severe  ¬Ã¢â‚¬Å¡ood risk. Even more dif ¬Ã‚ cult is where rainfall is markedly seasonal or where there is high inter-annual climate variability. With increasingly dif ¬Ã‚ cult hydrology, the level of institutional re ¬Ã‚ nement and infrastructure investment needed to achieve basic water security becomes signi ¬Ã‚ cantly greater. Not coincidentally, most of the worlds poor face dif ¬Ã‚ cult hydrologies. A legacy of trans-boundary waters, hydrologic and political or a trans-boundary hydrologic legacy can signi ¬Ã‚ cantly complicate the task of managing and developing water to achieve water security owing to inter-jurisdictional competition both within and between nations. While this is clearly apparent in federal nations with some state sovereignty over water, it is particularly acute in the case of international trans-boundary waters. Re ¬Ã¢â‚¬Å¡ecting this complexity, the UN Convention on the Law of the Non-Navigational Uses of International Watercourses was under preparation for twenty seven years prior to adoption by the UN General Assembly in 1997 and has not been entered into force. Many of todays trans-boundary basins are the result of 20th Century colonial borders that cut across watersheds and created international rivers, particularly in South Asia. The Socio-Economic Environment Water Infrastructure and Institutions. Investments in water infrastructure and institutions are almost always needed to achieve water security. Countries with dif ¬Ã‚ cult hydrology will invariably need more infrastructure and stronger institutions, with the development of each of these being greatly complicated where waters are trans-boundary. In almost all societies, man-made assets have also been developed, from simple small-scale check dams, weirs and bunds that became the foundation of early cultures, to, at the other end of the scale, investment in bulk water management infrastructure typically developed by industrializing countries, such as multipurpose dams for river regulation and storage and inter-basin transfer schemes. Macroeconomic Structure and Resilience. The structure of economies plays an important role, with more vulnerable economies requiring more investment to achieve water security. Historical investments in water management institutions and infrastructure, the economys reliance on water resources for income generation and employment and its vulnerability to water shocks will all be relevant. Risk and the Behaviour of Economic Areas. In the poorest countries, where survival is a real concern for large parts of the population and there are few functional social safety nets, economic actors tend to be extremely risk averse, investing only after there is signi ¬Ã‚ cant demonstration of returns. Countries with dif ¬Ã‚ cult hydrology, such as India and Pakistan may well face the highest risks; yet have the most risk-averse populations, the lowest infrastructure investment and the weakest institutions. Climate Change Climate change is making water security harder to achieve and sustain. Global climate change is likely to increase the complexity and costs of ensuring water security. Overall, climate change is expected to lead to reduced water availability in the countries that are already water scarce and an increase in the variability with which the water is delivered. This combination of hydrological variability and extremes is at the heart of the challenge of achieving basic water security. The water security challenge will therefore be compounded by climate change and it will require signi ¬Ã‚ cant adaptation by all countries. This will particularly be the case in poor countries which lack the institutions and infrastructure to manage, store and deliver their water resources and where climate change will be superimposed on existing and in some cases extreme vulnerabilities. According to various scientific reports, by 2050 Himalayan glaciers will have receded by 27.2%. Slow depletion of these glaciers would greatly reduce the river water flow especially to India, intensifying existing problems of water scarcity and competition. Similar changes will affect the 11 Asian countries to which Himalayan waters flow  [6]  . A 2009 Purdue University study, predicts an eastern shift in monsoon circulation caused by the changing climate, which today causes more rainfall over the Indian Ocean, Bangladesh and Burma and less rainfall over India, Nepal and Pakistan. This shift raises serious concerns for the countries expecting decreased rainfall. Summer monsoon rainfall provides 90% of India`s total water supply and as the effects of climate change become more pronounced, agrarian populations in India and Pakistan dependent on monsoons and glacial melt for irrigation will be profoundly affected. International Conventions on Water Sharing Water knows no boundaries and flows in keeping with the lay of the ground, requiring Riparian International Water Laws to govern the non navigational use. The 1815 Law for the Navigational Use of International Waters secured the vital sea lines of communication between the western countries and the colonial powers. Ironically, no such laws were created for management of the river courses. United Nations General Assembly Convention. In 1966, the International Law Association adopted the Helsinki Rules, which provide a set of guidelines for reasonable and equitable sharing of common waterways. In 1970, the United Nations General Assembly commissioned is own legal advisory body, the International Law Commission (ILC), to study Codification of the Law on Water Courses for Purposes other than Navigation. The first formal attempt to manage the riparian waters was the 1997 Draft United Nations Convention, which is yet to be ratified by the requisite number of countries. The convention has been criticized as it is practically impossible to have one convention that would incorporate all possible scenarios, as also a specific convention would be unacceptable to all members of the UN as needs and demands defer from region to region and country to country. Generalized Principles of Trans-boundary Water Allocation Water has become a significant source of conflict and has led to differing perceptions between various states such as the Arabs and Israelis, Americans and Mexicans, and among all ten Nile basin co-riparians. The generalized principles to mitigate problems of water allocation include Absolute Sovereignty, Absolute Riverine Integrity, Limited Territorial Sovereignty and Economic Criteria  [7]  . These can be summarized as under:- Absolute sovereignty is based on hydrography and implies unilateral control over waters within a nations territory while the doctrine of absolute riverine integrity emphasizes the importance of historical usage, or chronology, and suggests that every riparian has a right to the waters that flow through its territory. Limited territorial sovereignty reflects the right to reasonable and equitable use of international waters while inflicting no significant harm on any other co-riparian while the principle of economic criteria uses the market to allocate water among competing users in an economically efficient manner. Approaches to Water Security In trying to understand the various actors and their approaches on the issue of water, it is important to recognise at the outset that there are plurality of actors in the water sector-the state which includes governments, bureaucracy and the state machinery, who can also be termed the managers and the market; civil society organisations and groups; water communities or water users; and knowledge institutions. Each group is characterised with its own strategies and approaches, and within each group there are differences and variations. Technology Solutions. As the demand for this scarce resource increases daily, it has become an urgent necessity that water should be conserved and wastage of this scarce resource should be minimized. Some of the important techniques such as rainwater harvesting, recycling, infrared or foot operated faucets, drip irrigation method etc economise the usage of water but there is a requirement to evolve technology solutions to this crisis. Drainage Basin Approach to Water Security. Drainage basins are an essential, if not the only factor in reducing water stress. They have also been historically important for determining territorial boundaries, particularly in regions where trade by water has been important. It is therefore natural to manage water resources on the basis of individual basins because the drainage basins are coherent entities in a hydrological sense.

What Location Influences Foreign Direct Investment?

What Location Influences Foreign Direct Investment? Chapter 1 Introduction This chapter offers an introduction to the research, with paragraph 1.2 detailing the problem it focuses on, leading to the research question in paragraph 1.3. Paragraph 1.4 discusses the relevance of the research. The chapter ends with an outline of the thesis. The next paragraphs contain the various purposes and the general research design, and finish with the disposition of the study. 1.1 Background Foreign Direct Investment (FDI) is an important source of capital and economic growth in recent business. It provides a package of new technologies, management techniques, finance and market access for the production of goods and services. However, attracting FDI is a major challenge for most host countries as they face the challenge of identifying the major factors that motivate and affect the FDI location decision. Nowadays, regions try to attract Foreign Direct Investments to stimulate their economic development (OECD, 2002a). Certain regions consider the ecological issues as well and promote sustainable FDI. Recently, while working at AgentschapNL, an agency of the Dutch secretary of Economic Affairs, the awareness for sustainable investment rose. AgentschapNL promotes sustainable development and innovation, both in the Netherlands and abroad. One region that is engaged in an initiative to attract FDI is the Swedish province Jà ¤mtland. This initiative is called Midscand and it involves stimulating business investments and cooperation (joint ventures, business development, acquisitions, strategic alliances, outsourcing and new start-ups). One of their target countries is the Netherlands. The activities that are discussed are the sectors: cleantech, tourism, mechanical industry, forestry and call centres. The scope of this research is limited to the cleantech sector. This sector deals with sustainable innovations and investments in Jà ¤mtland, with special focus on wind and bio energy. The main goal of this project is to attract new investments from the Netherlands to Swedish regions. 1.2 Problem Indication The literature dealing with FDI can be classified in two main streams, as pointed out by Agiomirgianakis, Asteriou and Papathoma (2003): the first explains the effect of FDI on the process of economic growth, while the second one goes in depth into the study of the determinants of FDI. This thesis focuses on the second part of literature. Among all the factors influencing the location decisions of FDI, the location-specific determinants need particular exploration, since they can help the host governments to attract and increase FDI inflows using several instruments (Chakrabarti, 2001). Location-specific factors will always influence the decision to enter or exit a location for investment purposes (Audretsch and Fritsch, 2002). FDI is a key element of the international economic relations as it is an engine of employment, technology transfer and improvement of productivity, which ultimately leads to economic growth. The need to attract FDI forces governments to provide a favourable climate for business activities (Nordstrom, 1991). The foreign firms can be influenced by the political and economic institutional framework of the host country, which could affect the choice of where to invest their capital (Makino and Chan, 2004). The challenge of this research is to explore which location determinants make a region attractive for FDI. The definition of the problem is: What should Swedish regions do to positively influence FDI? By presenting a thorough overview of FDI and the determinants that could influence the location choice for a company, this research aims to provide a framework, tested in interviews for the applicability of investments. 1.3 Research questions To solve the problem the following research questions are answered: What is FDI? Based on a literature review that provides theoretical information on this phenomenon. What are the location factors? Galan and Gonzales (2007) are used as basis for the location factors. Several other papers on location factors are evaluated and criticized. What does Sweden have to offer? This final question deals with the application of the theoretical framework to Swedish region as case study and the relationship between the factors they possess and the factors they need to stimulate to influence FDI. 1.4 Purpose and Objective The purpose of this thesis is to examine which regional factors influence foreign direct investments. Theories regarding FDI and location-specific characteristics will be reviewed and analysed in the theoretical framework. A thorough overview of the location factors will be part of the framework that can be used by regions, willing to attract sustainable investments. But first of all, the objective as described in the definition of the problem is to give recommendations to Swedish regions regarding the factors they should highlight to attract or influence direct foreign investment. 1.5 Research Design The literature framework is based on relevant papers. According to Ghauri (2005), theoretical data will be used to understand and interpret the research question, and it will help to â€Å"broaden the base from which scientific conclusion can be drawn†. The relevance of the papers will be based on quality. To reach the goal of collection qualitative data for the research question, a phased selection is made. The emphasis of the courses Corporate Level Strategy and Research Methods of Strategy within the master Strategic Management is on testing all data on quality. By examining the relevance, publication form and impact factor of the information, the quality of the paper will be showed. The research is divided into two parts: (1) the literature research and (2) a case study. The first part of the research is explorative, because it is intended to gain more information on the situation and to get familiar with the research area. Qualitative studies -observations and interviews- are used to gain more knowledge of the research topic (Sekaran, 2003). The research mainly relies on secondary data; books and articles by various authors are considered. Literature is compared and new insights are gained. Interviews are conducted for the verification of the interests, which are characterized as primary data. In this research, qualitative data is the main source. The time dimension of this research is cross-sectional, which implies that the research is conducted at one particular moment in time. For useful literature, the data will be collected on acknowledged databases (e.g. ABI/Inform, JCR, Web of Science). The keywords that will be used during the search period are â€Å"FDI†, â€Å"entry modes†, â€Å"choice of country†, â€Å"region†, and â€Å"location determinants†. All literature sources can be found in the list of references. The theory will be examined by a qualitative case study. Case studies are used to understand a specific case under particular circumstances (Patton, 2002). 1.6 Disposition In chapter 2 the contemporary theory that has been evaluated and reviewed is presented. An introduction will be followed by a presentation of FDI and the factors that influence the location choice, followed by the location factors that are important for wind and bio-energy. In chapter 3 the methodology is elaborated and provides a description of the way this thesis was written and the choices that are made. In the second paragraph the data and sample size are explained. Theoretical and empirical frameworks are discussed, as well as the reliability and validity of this study. In chapter 4 the participating respondents are interviewed, which leads to an analysis and concludes the empirical results. Chapter 5 includes the results of the findings and the discussion that compares the theoretical statements that were researched and found necessary for this research presented in chapter 2. The mode of procedure is explained and the model of the empirical results is presented in this part. Chapter 6 includes the answers of this research by modifying the analysis model. The conclusion is based on the discussion in chapter 5. The answers serve as a proposal for further research in a broader context and give an opportunity of generalization. Chapter 2 Theoretical framework The literature review provides the foundation for this research, through discussions of previous studies on FDI and international business. Section 2.2 offers a review of studies regarding FDI. Next, it is essential to identify the location factors that influence that move, as it contains the answer to the second research question: What are location factors? The third paragraph contains a detailed overview of the location factors. An overview of the selected factors can be found in table 1. The list contains determinants to measure the impact on the location factors and their impact on FDI. The last paragraph contains a summary of the findings and a conclusion. 2.1 What is FDI? Modern day literature increasingly concentrates on subjects covering the globalization of markets and the internationalization of companies. Governments contribute to this situation by opening their regulations with the intention to profit from a more open economy (Dunning and Nurala, 2002). The growing number of liberal policies is a driving force for companies to go abroad and make FDI (Galà ¡n and Gonzà ¡lez-Benito, 2001). There are several definitions of a foreign direct investment presented by a number of researchers. A central theme of the definitions available on FDI, with the one illustrated by Moosa (2002) as a typical example, is that the companies undertaking such a venture aspire to gain a controlling stake in the asset or entity purchased. An FDI is not to be confused with an international or portfolio investment, where the aim merely is to diversify the holdings of the firm and make a financially sound investment (Buckley, 1998). FDI is defined as a firm based in one country (the home country) owning ten per cent (10%) or more of the stock of a company located in a foreign country (the host country). This amount of stock is generally enough to give the home country firm significant control over the host country firm. Most FDI is in wholly owned or nearly wholly owned subsidiaries. Other non-equity forms of FDI include: subcontracting, management contracts, franchising, and licensing and product sharing .In view of the above, FDI can be either inward or outward. FDI is measured either as a flow (amount of investment made in one year) or a stock (the total investment accumulation at the end of the year). Outward FDI can take various forms, home country residents can: purchase existing assets in a foreign country; make new investment in property, plant equipment in a foreign country; participate in a joint venture with a local partner in a foreign country (Dunning, 1976). 2.2 Location factors 2.2.1 Introduction There is considerable literature on the determinants of location factors for multinational Corporations (MNCs) when they choose their foreign market location, but very little on the relative importance of the location factors for FDI in a specific country and industry. It is widely believed that the trend towards globalized production and marketing has major implications for the attraction of developing countries to FDI inflows. The relative importance of FDI location determinants have changed. Even though traditional determinants and the types of FDI associated with them have not disappeared as a result of globalization, their importance is said to be on the decline. More specifically, one of the most important traditional FDI determinants, the size of national markets, has decreased in importance. At the same time, cost differences between locations, the quality of infrastructure, the ease of doing business and the availability of skills have become more important (UNCTAD 1996). Li kewise, Dunning (1999) argues that the motives for and the determinants of FDI have changed. Buckley and Ghauri (2004) point to the limited attention researchers have given to the FDI location factors in the literature. They suggest that international business strategy is distinct from main stream or single country business strategy only because of differences of location. Hence, location specifics are essential to the possibility of international strategy having a distinctive content. They, too, suggest that a focus on location, and possibly the question of why locations differ, could be a response to the issue of what forms the next big question in international business research. Dunning (2008) suggests that the more recent lack of attention to location by IB scholars could have arisen from an assumption that the location decision principles are the same for both international and domestic locations. Thus, scholars were either satisfied with existing explanations or as Dunning (1998) points out maybe theywere just not interested. In attempting to determine the relevant set of location factors, Michael Porters (1990) work cited in Hodgetts (1993) offers a valuable starting point. Porter notes that success for a given industry in international competition depends on the relative strength of that industry with regards to a set of business-related features or drivers of competitiveness, namely factor conditions; demand conditions; related and supporting industries; and firm strategy, structure, and rivalry. Government and chance are seen to influence competitiveness through their impact on the above four basic drivers. This framework the drivers of competitiveness has been used in a number of studies of industries and individual economies. Porters competitiveness framework has been the subject of major criticisms. Paul Krugman (1994) specifically criticized the idea that nations, or locations, compete in the same way as firms do, and his wide-ranging critique attacks this concept. Also, the empirical evidence for national competitiveness and the policies that follow are what Krugman (1994) describes as a dangerous obsession. Another criticism is that Porter places government involvement in international business outside of the core determinants. Many authors have claimed that Porters framework pays insufficient attention to relevant specific location factors such as globalization (Dunning, 1993), multinational companies (Dunning, 1993; RugmanVerbeke, 1993), technology (Narula, 1993. Several authors have questioned the validity of the model, and the conclusions drawn from the model, for countries such as Austria (Bellak Weiss, 1993), Canada (Rugman dCruz, 1993), Hong Kong (Redding, 1994) and Mexico (Hodgetts, 1993). A lot of research interested in providing the determining factors for FDI loca tion decisions is seen to be done by managers. Some of the major studies are the following (Dunning, 2000): theories of risk diversification (Rugman, 1979); agglomeration theories (Krugman, 1993; Porter, 1994, 1996); theories related to government-induced incentives (Loree and Guisinger, 1995); and theories of location (Dunning, 1997). All these new theories are certainly insightful, but they are all context-specific, and interested solely in stressing the relevance of certain factors to the detriment of others that may be equally significant. None of them has yet provided a satisfactory explanation of the relative importance of specific factors that lead managers to locate their investments via FDI in a specific country and industry (Dunning, 2008). Dunning (2008) believes that â€Å"it is not possible to formulate a single operationally testable theory that can explain all forms of foreign-owned production any more than it is possible to construct a generalized theory to explain all forms of trade or the behaviour of all kinds of firms.† Cohen (2007) believes that location factors for a specific location and industry that affect the location decision are based on the perceptions of a small group of senior managers, not a scientific formula. Furthermore, Buckly et al(2007) argue that studying a single firm or group of firms in the same industry is the best way to identify the most important factors, because firms in the same industry usually follow a systematic process for location choices, and seek to prioritize certain location factors as they become more internationally mature. Cohen (2007) argues, â€Å"No standard set of attributes, each with an assigned relative weight of importance, exists in the many lists of what matters in location published by business groups, international organizations, and scholars. Determining where to invest is a case-by-case decision†. Cohen (2007) also suggests that no single formula exists because specific strengths and weaknesses of a country or region might receive high priority by one team of corporate evaluators and can be ignored by another, depending on what kind of investment is contemplated, which in turn will determine a subsidiarys objectives and operational needs. Furthermore, individual corporate cultures will assign a different relative importance to what attributes they require in a country, what they would like to see, what negatives they can work around, and what is unequivocally unacceptable. Calculating trade-offs between positive and negative location characteristics is an art, not a science. Galan et al (2007) conducted an empirical research into location factors that has been researched by several theorists. This list provides a detailed overview of the main location factors and sub factors considered by several empirical studies that have examined their positive or negative influence on the location decisions of MNE managers in both DCs and LDCs. All these factors are usually included in the analyses made via the eclectic paradigm (Galan et al, 2007). They recognise that MNE managers motivation to eventually choose either or both groups of host countries will depend on the specific location factors available in them. These location factors are classified in the following categories: Cost factors Market factors Infrastructure and technological factors Political and legal factors Social Cultural factors The order of this list is random. According to Noorbakhshs, Paloni and Youssef (2001), foreign investors are attracted to regions that offer a combination of the location factors. The location factors are discussed separately in the next paragraph. 2.2.1 Cost factors This paragraph contains theoretical information about the cost factor as one of the location factors. The determinants that are criticized are labour costs and cost of materials. 2.2.1.1 Labour Cost The costs linked with the profitability of investment are one of the major determinants of investment (Asidu, 2002) . The rate of return on investment in a host economy influences the FDI decision. Asiedu (2002) noted that the lower the GDP per capita, the higher the rate of return and, therefore, the FDI inflow. Charkrabarti (2001) claims that wage as an indicator of labour cost has been the most arguable of all the potential determinants of FDI. There is no unanimity even among the comparatively small number of studies that have explored the role of wage in affecting FDI: results range from higher host country wages discouraging inbound FDI, to having no significant effect or even a positive association ( Dunning, 1989). Goldsbrough (1979) and Shamsuddin (1994) demonstrate that higher wages discourage FDI. Tsai (1994) obtains strong support for the cheap-labour hypothesis over the period 1983 to 1986, but weak support from 1975 to 1978. Charkrabarti (2001) stated that empirical res earch has found relative labour costs to be statistically significant, particularly for foreign investment in labour-intensive industries and for export-oriented subsidiaries. However, when the cost of labour is relatively irrelevant (when wage rates vary little from country to country), the skills of the labour force are expected to have an impact on decisions concerning FDI location. This is not the case for the investments in this case study, which is more knowledge based than labour intensive. Cheap labour is another important determinant of FDI flow to developing countries. A high wage-adjusted productivity of labour attracts efficiency-seeking FDI both aiming to produce for the host economy and for export from host countries. Studies by Wheeler and Mody (1992), Schneider and Frey (1985), and Loree and Guisinger (1995) show a positive impact of labour cost on FDI inflow. Countries with a large supply of skilled human capital attract more FDI, particularly in sectors that are relatively intensive in the use of skilled labour. 2.2.1.2 Cost of Materials The analysis above leads to two variables that can be measured to determine the importance of the cost factor that is labour cost (wages). The availability of raw material and cheap labour can be of crucial importance in the choice of location. The return on investments is not important for this study, because this is not region-constrained, so it is not an important factor for a location choice. FDI uses low labour costs and available raw materials for export promotion, leading to overall output growth. 2.2.2 Market Factors This paragraph contains theoretical information about the market factor as one of the location factors. The determinants that are criticized are market size, openness of the market, labour market and economic growth. 2.3.2.1 Market size The size of the host country market is a relevant determinant to the extent that the FDI is destined to serve the host market and not merely to set up an export platform. Larger markets should attract FDI because firms face economies of scale as FDI entails sunk costs (for example, in terms of adapting management to local conditions or getting familiar with host country legislation). Market growth should work in the same direction. Nunnenkamp (2002), Chakrabarti (2001) Campos and Kinoshita (2003), Braga Nonnenberg and Cardoso de Mendonca (2004), Addison and Heshmati (2003), Kolstad and Villanger, (2004) all find market size and/or growth to be relevant determinants of FDI. An economy with a large market size (along with other factors) should, therefore, attract more FDI. Market size is important for FDI as it provides potential for local sales, greater profitability of local sales to export sales and relatively diverse resources, which make local sourcing more feasible (Pfefferman and Madarassy 1992). A large market size provides more opportunities for sales and profit to foreign firms, and in doing so attracts FDI (Wang and Swain, 1995: Moore, 1993; Schneider and Frey, 1985; Frey, 1984). FDI inflow in any period is a function of market size (Wang and Swain, 1995). However, studies by Edwards (1990) and Asidu (2002) show that there is no significant impact of growth or market size on FDI inflows. Further, Loree and Guisinger (1995) and Wei (2000) find that market size and growth impact differ under different conditions. Artige and Nicolini (2005) state that market size, as measured by GDP or GDP per capita, seems to be the most robust FDI determinant in econometric studies. This is the main determinant for horizontal FDI. Jordaan (2004) mentions that FDI will move to countries with larger and expanding markets and greater purchasing power, where firms can potentially receive a higher return on their capital and by implication receive higher profit on their investments. Charkrabarti (2001) states that the market-size hypothesis supports an idea that a large market is required for efficient utilization of resources and exploitation of economies of scale: as the market-size grows to some critical value, FDI will start to increase with its further expansion. This is a questionable conclusion, because there are firms who are looking for niche markets for their products and a large expanding market is a disadvantage to them. Concluding the size of the market and the GDP of a region are not important determinants for the location choice. 2.2.2.2 Openness of the Market There is mixed evidence concerning the significance of openness, which is measured mostly by the ratio of exports plus imports to GDP, in determining FDI as well (Charkrabarti 2001). Jordaan (2004) claims that the impact of openness on FDI depends on the type of investment. If the investments are market-seeking oriented, trade restrictions (and therefore less openness) could have an impact on FDI. The reason stems from the â€Å"tariff jumping† hypothesis, which argues that foreign firms that seek to serve local markets may decide to set up subsidiaries in the host country if it is difficult to import their products into the country. In distinction, multinational firms involved in export-oriented investments may choose to invest in a more liberal economy since increased imperfections that accompany trade protection generally imply higher transaction costs associated with exporting. Wheeler and Mody (1992) observe a strong positive support for this theory in the manufacturing s ector, but a weak negative link in the electronic sector. Kravis and Lipsey (1982), Culem (1988), Edwards (1990) find a strong positive effect of openness on FDI and Schmitz and Bieri (1972) obtain a weak positive link. Trade openness generally has a positive influence on the export-oriented FDI inflow into an economy (Edwards (1990), Gastanaga et al. (1998), Housmann and Fernandez-arias (2000), Asidu (2001)). In general, the empirical literature reveals that one of the important factors for attracting FDI is trade policy reform in the host country. Theoretical literature has explored the trade openness or the restrictiveness of trade policies (Bhagwati, 1973; 1994; Brecher and Diaz-Alejandro, 1977; Brecher and Findley; 1983). Investors in general prefer big markets to invest in and they like countries that have regional trade integration, as well as countries with greater investment provisions in their trade agreements. Theory does not give any clear-cut answer to the question how trade barriers affect the level of FDI flows. â€Å"Horizontal† FDI tends to replace exports if the costs of market access through exports are higher than the net costs of setting up a local plant and doing business in a foreign environment. Traditionally, governments have used trade barriers to induce â€Å"tariff-jumping FDI†, i.e. horizontal FDI that takes place to circumvent trade barriers. On the other hand, â€Å"vertical† FDI relies on a constant flow of intermediate products in and out of the host country and therefore benefits from a liberal trade environment. In that case, trade barriers should encourage â€Å"horizontal FDI† and discourage â€Å"vertical FDI† and its effect on the aggregate level of FDI depends on which type of FDI dominates. Empirical studies, however, support a positive effect of openness on FDI. Chakrabarti (2001) finds the sum of imports and exports as a share of GDP to be the variable most likely to be positively co rrelated with FDI besides market size in an extreme bounds analysis. Braga Nonnenberg and Cardoso de Mendonca (2004) and Addison and Heshemati (2003) also find this variable to be positively correlated with FDI. The problem with using trade as a share of GDP as a measure of trade policies is that it reveals a trade policy outcome, rather than trade guidelines. The openness of a market is clearly linked with the policy regulations of the potential market. Pà ¤rletun (2008) finds that trade openness is positive but statistically significant from zero. Moosa (2002) states that while access to specific markets is important, domestic market factors are predictably much less relevant in export-oriented foreign firms. A range of surveys suggests a widespread perception that â€Å"open† economies encourage more foreign investment (Moosa, 2002).Therefore, the openness of a market is relevant to the appeal of a region. Restrictions will decrease the appeal of the region. 2.2.2.3 Labour market Labour is also a determinant for market factors according to Majocchi and Presutti (2009), they investigated whether entrepreneurial culture plays a role in attracting foreign direct investment (FDI). Multinationals are a network of distributed assets that contain entrepreneurial potential and are highly innovative to increase competitiveness (Rugman and Verbeke, 2001). Firms and entrepreneurs are valuable in gaining access to local knowledge. However, entrepreneurial culture may also rely on resources in the local environment, which is not mentioned in particular by Majocchi et al. (2009). In this respect, natural resources are taken for granted. The availability of a cheap workforce (particularly an educated one), personnel policy, female participation and ageing influences investment decisions and in doing so are a determinant that influences the FDI inflow. A negative effect of these determinants will lead to an increase in wages and a decline in the return of investments in the future. Due to the static framework of this thesis, these determinants are not investigated. 2.2.2.4 Economic Growth If the host countrys market has a high-growth rate, it attracts more investors on a long-term basis (Chen, 2007). Economic environment growth in a country serves underlying factors when company decide which country to enter (Erramilli 1991).The role of growth in attracting FDI has also been the subject of controversy. Charkrabarti (2001) states that the growth hypothesis developed by Lim (1983) maintains that a rapidly growing economy provides relatively better opportunities for making profits than the ones growing slowly or not growing at all. Lunn (1980), Schneider and Frey (1985) and Culem (1988) find a significantly positive effect of growth on FDI, while Tsai (1994) obtains a strong support for the hypothesis over the period 1983 to 1986, but only a weak link from 1975 to 1978. On the other hand, Nigh (1985) reports a weak positive correlation for the less developed economies and a weak negative correlation for the developed countries. Gastanagaet et al. (1998) and Schneider and Frey (1985) found positive significant effects of growth on FDI FDI has the ability stimulate economic growth only in the short run while the economy is shifting from one short-lived equilibrium to another. The only source of long-term economic growth is technological progress, which is considered to be independent of investment activities. This factor is discussed in the next paragraph. However, in endogenous growth theory, the diminishing returns on investment can be avoided if there are positive externalities associated with investments (Oxelheim, 1996). If investment brings enough new knowledge and technologies, it can lead to long-term economic growth. As, typically, FDI brings new technologies and knowledge, in accordance with endogenous growth theory it can be viewed as a catalyst of long-term economic growth in a host economy. Economic growth will improve the ability to compete with other regions and this will increase the quality and ability of other location factors. The relevance of economic growth for FDI is not very clear: it depends on the distribution of the new capital. The analysis above leads to four validated variables that determine the relevance of market factors: (a) market size, (b) openness of the market, labour market and (c) economic growth. Market size is the only variable that is less important. The openness of a market and the economic growth are very important, these variables are positively linked with political, infrastructural and technological factors. An open market as well as a positive economic growth will lead to more FDI in a region. 2.2.3 Infrastructure Technologic Can Assassinations Ever Be Justified? Can Assassinations Ever Be Justified? Hitler- one of the most known names in the world even after 65 years. Osama bin Laden, man responsible for attacks on World Trade Centre on 11th of September 2001. Robert Mugabe- president of Zimbabwe form 1987, a very selfish man and instead of improving living conditions in his country, he spends huge amounts of money on himself. In the world full of conflicts and tyrants, can the assassination of one or two men make a difference? If yes, would it be justified? If one person can change the lives of others into hell, is assassination of him justified? If you would have a chance to kill a man in order to save millions of humans, would you do it? Is greater good the only one justification of assassinating someone? Would killing someone not make you as evil as a person youd kill? Even with greater good, is assassination ever justified? Assassination is widely held to mean a planned murder of a prominent of public figure. Its origins can be found in the Middle East. The word is derived from Arabic Hashshashin. It was pejorative name given Nazri Islamis particularly those of Syria and Persia by their adversaries during Middle Ages. The Nazris have smoked hashish before carrying out political killings and thats where the name comes from. Throughout history theres lots of assassinations and attempts, like the assassination of Archduke Franz Ferdinand or the assassination of Julius Caesar. The assassination of Julius Caesar is the first known assassination ever committed. He was killed by his own men on the Ides of March, at a session of the senate. He was stabbed 23 times. Marcus Junius Brutus was one of the conspirators and also a friend of Caesar. In the present day, there have been examples of assassinations and failed attempts on people such as John F. Kennedy, John Paul II, John Lennon or Olof Palme. However, a mo re detailed discussion of assassination is required to address the question of assassination- whether one act of evil can, in fact, be justified. Politics is usually one of the most common reasons why an individual is assassinated. There are always people who dont agree with thoughts of others. People might have their own view on different things but it doesnt necessarily mean that they must kill. Some assassinations such as assassination of John F. Kennedy and Martin Luther King are clearly unjustifiable. Martin Luther King was American activist and prominent leader in African American civil rights movement. He was assassinated by James Earl Ray- a white man. People believe it was a conspiracy because many white leaders didnt want any black men to have civil rights. John F. Kennedy was assassinated by Lee Harvey Oswald. However he denied shooting anyone. There are lots of theories of motives for killing the president. One theory says it was the presidents plans for Vietnam that prompted his murder. The president said that Vietnam was too far away from the United States, that South Vietnams claim to democracy was false, and th at the U.S. had no business sending American troops to fight in what was really a local war. Another assassinated political figure was Archduke Franz Ferdinand. The assassination of this man basically triggered World War I. He and his wife were assassinated in Sarajevo in 1914, by Gavrilo Princip, 19 at the time. It was organized by organization called Black Hand. There was also pope, John Paul II. There was assassination attempt by Mehmed Ali Agca. According to Agca operation was commanded by the Bulgarian military Attachà ©. Another example of political assassination is Olof Palme a Swedish politician. The murder is still unsolved and it might never be. He was a controversial politician- it could have lead to his assassination. What about the greater good? Could one act of evil be accepted if it rids the world of suffering? Would assassination on tyrant, such as Hitler be justified if it saved millions of people, which have been killed during World War II? In my opinion it would be justified and worth it even if it was only one man that could be saved. I think that someone who doesnt respect life of other people and kills millions only because of his racist and nationalist thoughts shouldnt be so lucky to live. Utilitarianism says that the moral worth of an action is determined solely by its usefulness. Even if you kill someone thinking about greater good, you still are a killer. Doesnt it mean that you are as bad as he is? I dont think so, if you kill one man in order to save a life, either yours or someone elses it doesnt make you evil. It doesnt really matter who could care of getting rid of Hitler as long as the job was done successfully. There are individuals who assassinate for reasons other than politics or religion. They may simply be deranged fame hungry individuals, such as Mark David Chapman or John Hinckley Jr. Mark David Chapman was a psychopath who killed John Lennon. He was a fan of The Beatles for years especially John Lennons. John Hinckley Jr. was a man who attempted and assassination on Ronald Reagan and according to him, he has done it to impress Jodie Foster. He was obsessed with her. It has developed since he first time watched film called Taxi Driver. I think that if those two would be never psychopaths they would never done those things. In my opinion its not really their fault. People become crazy and they never realize that they are actually obsessed. It is not maybe a justification to what theyve done but helps understand what the motives could be. What about the world today? How could suffering be alleviated now? Is assassination the answer? Would it be better if Robert Mugabe was assassinated? Would it make a difference now- when he has been president of Zimbabwe since 1987? He has not long to live because of his age but I think it would be worth to save people today and not tomorrow. Lots of those people can no longer live to see tomorrow. Mugabe is a selfish man who was ruining country for years and it should be changed. The global superpowers should become more interested and should deal with him as fast as possible. What about Osama bin Laden another terrorist? Is he also the case? He was responsible for attacks on World Trade Centre on 11th of September 2001. However there have been rumors that it was actually done by U.S. Osama bin Ladens whereabouts are unknown. Although he might fight for something he considers to as a right thing, he is a terrorist and he must pay for what hes done. In my opinion those people could b e assassinated because there could not be any other ways for improving the situation. If the death of two men will save thousands of lives worldwide, I think it is enough of a justification. In conclusion, I think that greater good is maybe not the only one, but just now, I cannot see any other as much important justifications for assassinations. In every country on earth there are people that are selfish and are making hell of other peoples lives, but not everyone of those are cases for assassination. Even though there is a lot of evil, assassination is not always the solution, even if suffering of many will be alleviated for a while because of death of a tyrant, you never know who will come after him.

Juvenile Crime Essay -- essays research papers

One of the biggest problems which the United States is faced with is juvenile crime. The reason experts feel juvenile’s commit crimes is because of risk factors when they were younger but experts still have not found the main reason why juvenile’s commit crimes. Some risk factors associated with juvenile crime are poverty, repeated exposure to violence, drugs, easy access to firearms, unstable family life and family violence, delinquent peer groups, and media violence. Especially the demise of family life, the effect of the media on the juveniles today, and the increase of firearms available today have played a big role in the increase of juveniles crimes.   Ã‚  Ã‚  Ã‚  Ã‚  The most common risk factor is the demise of the family life and the increase in family violence. Between 1976 and 1992 the number of juveniles living in poverty grew 42% and this caused an increase in crimes by juveniles. Many of these juvenile criminals have been abused or neglected and they also grew up in a single-parent household. Research has found that 53% of these children are more likely to be arrested, and 38% more likely to commit a violent crime as an adult, then their counterparts who did not suffer such abuse. The symptoms of child abuse are â€Å"high levels of aggression and antisocial behavior† and these children are twice as likely to become juvenile offenders. Also improper parental care has been linked to delinquency such as mothers who drink alcohol or take drugs during pregnan...

Canada in the Global Economy Essay examples -- Economics Globalization

Canada in the Global Economy   Ã‚  Ã‚  Ã‚  Ã‚  Over the past few years, Canada's economy has done comparatively well and has demonstrated some resilience to the fluctuating global economy. However, Canada remains to be relatively less competitive with respect to other developed countries. In this paper I will attempt to take a closer look at Canada's position in the global economy today and examine the relevant issues.   Ã‚  Ã‚  Ã‚  Ã‚  Competition is an important driver of innovation and productivity growth. Looking at the domestic Canadian economy, perhaps one of the most significant barriers to a strong domestic economy is the lack of intense competition among domestic firms. There are many reasons for this. First of all, the size of the Canadian economy is too small to support the development of large corporations. The US on the other hand, has about a ten times larger population, and therefore, a much larger market and demand are in place for larger multinational companies to build. As a result of the lack of sufficient domestic demand in Canada, only a small number of larger firms are developed in each industry. Furthermore, Canadian firms seldom treat research and development as a priority. Unlike in the US, innovation is not a corporate culture in Canada. This can be partly due to the lack of intense domestic competition, causing firms to spend resources on other areas instead of R&D beca use there is no real urge to innovate and maintain competitiveness. The government also plays a major role in determining the level of domestic competition. In the past, the Canadian government had not been supportive to introduce rivalries in its domestic industries. There had not been any clear and well defined competition policies; there were however, numerous policies enforcing tariffs for imported products that had been protecting domestic firms from competition from abroad. Although some can argue that such protectionism was necessary in the starting phase of an industry, but Canada has still been maintaining some of these protection policies even today for well developed industries such as the cable and electricity industries. These protective policies do not promote domestic rivalries and therefore lead to a lack of productivity gain that can be achieved through competition. Although many of these protective policies are now non-existent anymore, what these policies had d... ...competition that drives productivity gains. Innovation from Canadian firms is limited, resulting in stagnant productivity improvements. The Canadian labour force is also relatively weak and the working environment relatively non competitive. In the future, Canada will be moving towards a service-oriented economy that continues to rely heavily on exports. The concept of competitiveness will become more and more crucial for the success of the Canadian economy. It is therefore imperative for Canadian businesses to continue to improve productivity and develop the culture of continuous research and innovation. Intense domestic and foreign competition also needs to be in place to drive productivity gains. The role of Canadian government will be to make Canada an attractive place to work, live and invest. This will bring in valuable human as well as financial capital that will be conductive to achieving competitiveness. The government should also realize and deal with social and environmental issues as a matter of priority with a strategy to move ahead of other developed countries and avoid future burden on the economy when these issues start to become a bigger problem in the future.

Amazon.com †a case study Essay

Amazon’s Mission â€Å"Our vision is to be earth’s most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.† Amazon.com’s quest to become earth’s most customer centric company is largely driven by its use of technology. In fact, its continuous innovations are all driven by huge investments in information systems (Laudon and Laudon 2005). Information systems not only support their mission, but in fact drive their business strategy. In this paper , Amazon’s use of information at each stage of Porter’s value chain will be considered. Their innovative and forward looking use of information systems to generate competitive advantage will be analysed in the context of Porter’s five forces and we will also have a look at how they have formed Amazon have formed strategic alliances to overcome certain competitive forces. Future plans to sustain competitive edge will be examined; Amazon not only continue to use technology to improve their customer centric operations, but are now in fact opening up this technology and providing technical and logistics solutions to other firms. The Value Chain The concept of ‘Value Chain Anaylsis’ is described at length by Michael Porter (1985). He notes that every firm is a collection of activities that  are performed to design, produce, market, deliver and support its products or services. He identifies specific, critical-leverage points where a firm can use information technology most effectively to enhance it’s competitive position (Laudon and Laudon , 2005). In his value chain model, ‘Primary Activities’ such as inbound logistics, operations, outbound logistics, sales and marketing and service, are seen as basic activities that add a margin of value to a firm’s products and service. Since Amazon’s inception in 1995, they have used information technology to manage each stage of the value chain. Inbound logistics – including receiving, storing, inventory control – are managed by sophisticated technology such Transportation Optimization and Management Systems (TOMS). They, us e a set of applications for accepting and validating customer orders, placing and tracking orders with suppliers and managing and assigning inventory to customer orders. In fact in 2007, Amazon’s systems have become so efficient in managing inventory that they generally collect from customers before their payments to suppliers come due (SEC1 2007). Amazon’s marketing strategy is designed to increase customer traffic to their websites, drive awareness of products and services, promote repeat purchases, develop incremental product and service revenue opportunities, and strengthen and broaden the Amazon.com brand name. (Amazon Annual Report 2007). Technology, again, is the conduit for their marketing strategy. Amazon were the first to deliver personalized Web pages and services. For instance, their technology keeps track of user preferences for books and CD purchases etc, and can recommend titles purchased by other customers. Their advertising consists primarily of online advertising, including through their Associates program –Amazon.com’s affiliate marketing program, where web developers, by linking to Amazon products and services to their sites, can receive up to 10% in referral fees, – sponsored search, portal advertising, e-mail campaigns, and other initiatives. Customer service is another key area where technology adds value to Amazon’s offer. From the outset, in line with their customer-centred mission, Amazon  tried to provide superior customer service through email and telephone customer support, online tracking and shipping information, and the ability to pay for purchases with a single click of the mouse using credit card and personal information provided during a previous purchase. This was called â€Å"1-click† express shopping, and was considered so attractive that Barnes and Noble, Amazon’s direct competitor in the online book retailing markets attempted to ape it with its â€Å"Express Lane† system (McAfee 2005). Amazon later obtained an injunction on Barnes and Noble and sparked a huge debate around the question of which software, and even business processes can or cannot, be patented. (http://www.oreilly.com/news/patent_archive.html) The Extended Value Chain in e-Business In their book, Strategic Planning for Information Systems, Ward, J and Peppard, J (2002), discuss how the value chain information flow is now being challenged by e-Business They refer to Rayport, J.F and Sviokla (1995), who have identified two crucial new areas in this information flow, namely ‘promotional’ information flow and ‘intelligence gathering’ information flow. These two areas seems to be paramount in Amazon’s value chain management.. According to Ward and Peppard, the implications of the promotional flow of information which informs customers further down the chain of the products and services available have to be understood. David Chaffey (2007) speaks of Amazon’s automated email measurement and optimization system. As users of Amazon will know, once we’ve bought something on Amazon, we are regularly sent emails with information on books or product recommendations. In order for this promotional system not to descend into what one might call Spam, and for it to remain relevant and customer centred, Amazon have put IS systems into place to control this activity. A new system: automatically optimizes content to improve customer experience; avoids sending an e-mail campaign that has low clickthrough or high unsubscribe rate; includes inbox management (avoid sending multiple emails/week); has growing library of automated email programs covering new  releases and recommendations. In this way, Amazon add value to the promotional flow of information through their value chain, and intelligently use and disseminate the information provided to them by their technology. Ward and Peppard conclude that E-business offers huge potential to gather information and intelligence about consumer and customer preference and attitudes online, rather than through traditional market research. When customers shop on Amazon, their choices are stored in the information systems which can then use this intelligence to forecast future demands. Industry Value Chain – Supply Chain Management The Value Chain of the business unit is only one part of a larger set of value-adding activities in an industry – the â€Å"Industry Value Chain† (Ward & Peppard 2003). A firm’s value chain is linked to the value chains of its suppliers, distributors and customers, and each of these players can add, or indeed take away from advantage which has been earned along the way. (Laudon & Laudon 2006). Amazon has one of the most-sophisticated supply chain systems in the world. Proprietary applications handle nearly every aspect of its supply chain: warehouse management, transportation management, inbound and outbound shipping, demand forecasts, inventory planning, and more. (Information Week) Amazon’s supply chain is so tightly integrated that when an online customer buys a book, for example, the order-management system communicates with inventory- and warehouse-management systems to find the optimal distribution centre or centres for fulfilling the order. The customer knows in less than a minute how long it will take to ship the items and whether they will come in one package or separately. Effective supply chain management, has been identified in a survey by The Economist, as being an essential contribution to gaining competitive advantage. It says that all market leaders have supply chains that are more responsive to customer demand. And effectively managing the informati on flow throughout the supply chain is key to gaining competitive advantage. Porter’s Five Forces As we have seen, competitive advantage can be gained through effective use of information systems at each stage of the internal and the external value chain. The other value creation dimension, as defined by Porter is the â€Å"Market/Industry Attractiveness†. He has identified five forces affecting the latter, namely, the bargaining power of suppliers, the bargaining power of customers, the threat of new entrants, the threat of substitute products and competitive rivalry within an industry. E-commerce and the internet provide customers with the ability to search the whole chain for information directly or via intermediaries (Ward and Peppard 2003). The internet provides consumers with near perfect product and price visibility. Customers are free to use any internet portal they choose to search for goods, and can use price comparison portals such as www.kelkoo.com to compare prices between suppliers. Changing suppliers will cost the buyer nothing – switching costs are l ow – and alternative suppliers are plentiful. Consequently, Amazon are forced to keep their prices down and accept lower margins. In the context of Porter’s five forces, the facility for customers in changing suppliers can be classified as high customer bargaining power. Mr Jeff Bezos, the founder of Amazon, saw this threat coming and prepared for it – in 2000 he invited other retailers to sell their goods on his website (The Economist). No traditional seller had ever done this before – to allow others to sell second-hand books on their own door step, was indeed a revolutionary move by Mr Bezos, and many people, even some within the company, thought this would cannibalise Amazon’s own sales. Yet it eventually helped to lift overall sales. Amazon says sales of third-party items, from which it takes a commission, have increased from 6% of all items sold in 2000 to 28% in 2005. Over that time, the company says its own retail revenues were up three-fold (BusinessWeek). Bezos claims that by keeping custome rs on the Amazon site buying other retailers products, Amazon’s direct revenues also increased. This is because with the help of some sophisticated technology driven marketing techniques, customers having already chosen something from Amazon’s partners, are at the same time tempted by Amazon’s own offerings. Today, hundreds of thousands of retail brands and individual sellers reach new customers by leveraging the power of the Amazon.com e-commerce platform. In 2006 Amazon went further with this concept and launched their â€Å"Fulfilment† program, which allows businesses to  use Amazon’s own order fulfilment and post-order customer service infrastructure, and enables Amazon.com customers to receive the benefit of Amazon.com shipping offers when buying from third-party sellers. In this way Amazon, seem to be effectively combating a number of competitive forces, including the threat of substitute products and the threat of new entrants to the market. Due to the low cost for new-entrants to e-Commerce – it requires relatively little capital investment to set up an e-Business- the threat of competing websites is omni-present for Amazon. Amazon’s challengers come from two directions. First, other online retailers are growing rapidly. As people become more accustomed to shopping on the internet, they are ordering a greater variety of goods and services from a wider range of websites. From auctioning people’s second-hand goods, eBay now also hosts fixed-priced virtual shops offering new goods for sale. (The Economist). Google, for one, has replaced retail sites such as Amazon as the place where many people start their shopping. And more personalized and social upstarts such as News Corp.’s, MySpace and YouTube, which Google has bought, have become the prime places for many people to gather online – and eventually shop. Microsoft’s taking of a 5% stake in Facebook, the online networking website, last Friday, which now values the two year old networking website at a whopping 15b$ -, could also be perceived as a potential threat to Amazon. People may choose to start their shopping from their social networking sites, rather than from the mor e traditional retail or portal site. Says consultant Andreas Weigend, Amazon’s chief scientist until 2004: â€Å"The world has shifted from e-business to me-business.† (Businessweek and The Economist). Secondly, traditional retailers are rapidly moving part of their trading online. This pits Amazon against giant retailers with huge purchasing power, like America’s Wal-Mart and Britain’s Tesco. These â€Å"multichannel† retailers make a virtue of their ability to offer both â€Å"bricks and clicks†. Many provide online customers with the option of picking up goods from the shop down the road. This is proving popular with web buyers who want things immediately or are keen to avoid shipping costs and staying in to accept a delivery. Amazon may be attempting to fight off this threat with their AmazonPrime program, which allows customers unlimited shipping for $79 per year. As we have seen, the relatively low costs of setting up business on the Internet, means that the  threat of substitute product/ services and the threat of new entrants also become more apparent. Internet technology is based on universal standards that any company can use, making it easy for rivals to compete on price alone and for new competitors to enter the market (Laudon and Laudon 2006). Clarke (2001) says that consequently, if we are competing in an industry where all our competitors have access to the same technology, it follows that competitive advantage comes from the use of information, as opposed to technology, and sustainability of advantage lies in an organisation always being better at this than its competition. Amazon would appear to be doing a fairly good job in keeping up – for instance with the technology enables personalization of the customer – but as Jeff Bezos reiterated in the reprinting of his 1997 letter to shareholders for the Amazon 2006 Annu al Report, â€Å"It’s all about the long-term†. Sustainability of Competitive Advantage – The Future for Amazon In the long-term, Amazon are aiming to re-invent themselves. An article in the Economist claims the e-commerce giant wants to be more than just a retailer. Having established the internet as somewhere to buy things, Amazon is again spending heavily on development in anticipation of consumers wanting to download music, video and books instead of having them delivered in the post. In September, the company introduced the Amazon MP3 digital music store to sell tracks without the anti-piracy technology known as digital rights management, or DMR. The music companies EMI and Universal are participating in Amazon’s store, making the service a significant competitor to Apple’s iTunes service. Unless the Amazon, the pioneer of online retailing can provide downloadable media it risks being â€Å"disintermediated†2 —just as only a decade ago high-street bookshops, music and video stores were disintermediated by Amazon itself. Amazon, in fact have a history of strateg ic alliances with various firms – Borders and SmugMug, to mention just a few. A strategic alliance is a partnership of two of more corporations or business units to achieve strategically significant objectives that are mutually beneficial, Wheelan and Hunger (2005). These alliances have allowed Amazon to use their established technological lead in the e-Commerce platform to generate revenues as well as their other strategic objectives. Amazon Web Services (AWS) is another example of a  strategic move to maintain advantage. With AWS, Amazon say they are building a new business focused on a new customer set †¦ software developers. They currently offer ten different web services and have built a community of over 240,000 registered developers. In order to cope with the Christmas rush, Amazon has far more computing capacity than it needs for most of the year. As much as 90% of it is idle at times. Renting out pieces of that network to other businesses, such as SmugMug, an online photo site that uses the S33 service, is a way to get extra return on Amazonâ⠂¬â„¢s $2 billion investment in technology (The Economist). Conclusion In this paper, a number of ways in which Amazon add value to their internal and external value chain have been identified. We have looked at how they optimize their utilisation of information in forging closer relations with their customers; operate a lean supply-chain management strategy and fight off numerous threats posed by competing in the e-Business environment with strategies such as offering new services to smaller retailers, digital downloads, and opening up their technologies to developers. However in a fast moving global economy, no future is certain. Amazon are conscious of the threats posed by failed alliances (Border’s will pull out of their agreement to use Amazon’s e-commerce platform in 2008, www.bloomberg.com) and the constant threat posed by Google, even Facebook and other technology driven Web2.0 companies. Jeff Bezos will be hoping to overcome these threats by, as he says, by â€Å"opening up the guts of his organisation† to developers (Busin essWeek). Information systems are at the core of Amazon’s business, and going forward, as Jeff Bezos said in his 2007 SEC filing, their biggest challenge â€Å"will be to continue to build and deploy innovative and efficient software that will best take advantage of continued advances in technology†. Amazon have made massive investments in technology – $186 million in the last quarter alone – (The Economist), and with 2007 3rd quarter sales up 41% and a quadrupling of profit, it looks like these technology investments may finally be paying off! References â€Å"Amazon.com – Click to download†, The Economist, Aug 17th 2006 Amzn Investor Relations http://phx.corporate-ir.net/phoenix.zhtml?p=irol-irhome&c=97664 Accessed 28th October 2007 â€Å"Borders to Introduce New Internet Site in Early 2008 (Update3)† www.bloomberg.com Accessed on 28th October 2007 Clarke, Stephen (2001) Information Systems Strategic Management –an integrated approach, Routledge, London David Chaffey: â€Å"Amazon Case Study 9.1 Learning From Amazon’s Culture of Metrics† www.davidchaffey.com Accessed on 13th October 2007. â€Å"Friend Accepted†, The Economist, Friday 26th October 2007 â€Å"From scratch: Amazon keeps supply chain close to home†, Beth Bacheldor, InformationWeek, March 5, 2004 â€Å"Jeff Bezos’ Risky Bet† Business Week, Cover story, November 13, 2006 www.businessweek.com â€Å"Jeff Bezos’ Risky Bet† www.businessweek.com November 13, 2006. Accessed 27th October 2007 â€Å"Lifting the bonnet† The Economist Oct 5th 2006 Porter, Michael E. (1985) Competitive advantage: creating and sustaining superior performance pg 33 The Free Press Laudon, J and Laudon K (2006), Management Information Systems: Managing the Digital Firm (10th Edition) Prentice Hall R. Preston McAfee (2005) Competitive Solutions: The Strategist’s Toolkit, Princeton University Press Rayport, J.F and Sviokla (1995) ‘Exploiting the virtual value chain’, Harvard Business Review, November – December, 1995 SEC (2007) United States Securities And Exchange Commission submission Form 10-K from Amazon. For the quarterly period ended September 30, 2007 Ward, J and Peppard, J (2002) Strategic Planning for Information Systems, 3rd Edition John Wiley & Sons, Bedfordshire. Wheelen, T and Hunger J, (2004) Strategic Management and Business Policy, 9th Edition, Pearson/Prentice Hall, New Jersey.