Identifying Individual Preferences in the Airline Industry

Transportation services are becoming more common and broadly used in recent decade, in line with the advancement of technology. Generally, transportation services can be divided into three groups: water transportation, land transportation and air transportation (Gee, Choy, & Makens, 1984). Airline industry, which this essay focusing on, is one of the discoveries of newest innovations in the travel services sector. It has been developed so much in recent year to operate more effectively. Not only guarantee a safe journey to the destination place, the airline companies are now trying to create a competition in the market by providing the best services to the travellers and offering competitive prices (Hensher & Louviere, 1983). Those strategies are aimed to attract more consumers to travel by their airline companies. This essay will discuss the theories of consumer economics and their applications in the real consumer issues in airline industry, mainly on the factors that changing the consumer demand of airplane ticket, as well as the underlying reasons of why consumers prefer some particular airlines to the others. Furthermore, the behaviour of different types of consumers toward the choice of different airlines will also be discussed here. In observing those issues, this paper will focus on two airline companies: Singapore Airlines and Jetstar. The price data were obtained from a single route from Melbourne to Singapore. The core idea in analysing consumer behaviour in making choices in the economic activity, mainly in the airline industry, is because of their limited incomes and unlimited wants. Those then lead to trade-offs and opportunity costs. Consumers in the airline industry could be divided into two groups, which are business and pleasure travellers. Elasticity is the percentage change in one variable resulting from a 1-percent increase in another (Pindyck & Rubinfeld, 2009). When the price elasticity is greater than 1 in magnitude, we say that demand is price elastic because the percentage decline in quantity demanded is greater than the percentage increase in price. If the price is less than 1 in magnitude, the demand is said to be price inelastic. Graph 1. Elastic and inelastic demand (Inelastic demand) (Elastic demand) In this case, elastic demand of airline industry is exceptionally unstable because it depends on the market conditions such as inflation, terrorists attack and price oil. In airline industry, price elasticity demand is considered both elastic and inelastic (Yahoo Voices, 2008). An elastic demand is in relation travel for pleasure. Pleasure travellers are extremely sensitive to the price of the travel. An inelastic demand is in relation for business travel. Business travels have little effect for increase in price of the travel. Income elasticity of demand measures the degree of responsiveness of demand of a good to a change in consumers’ income. It has equation of : EI=[ΔQ/Q]/[ ΔI/I]=[I/Q]*[ ΔQ/ ΔI]. Airplane ticket is normal good as it has a positive income elasticity, which means when consumers’ income increase the consumption of ticket will increase as well. Cross elasticity of demand measures the degree of responsiveness of demand of one good to a change in the price of another good. It is shown in the equation: EQ1P2 = [ΔQ1/Q1] / [ΔP2/P2] = [P2/Q2]*[ΔQ1/ ΔP2]. If airplane ticket and other consumption (i.e. food and cloths) are considered as a group, there will be a positive cross-price elasticity, which tells us that if the price of one good (other consumption or ticket) goes up, the demand for the other good goes up as well. Consumer behaviour analysis attempts to understand the consumers’ allocation of incomes among different goods and services to maximize their well-being. It consist of three distinct aspects: consumer preferences, describing the reasons why people might prefer one good to another; budget constraints, reflecting consumers’ limited incomes that restrict the quantities of goods they can buy; and consumer choices, which are the combination of the consumer preferences and budgets constraints (Pindyck & Rubinfeld, 2009). There are some basic assumptions made in observing consumer preferences in the airline industry. First, preferences are assumed to be complete. Complete means that consumers are able to compare and rank all possible market baskets. However, this assumption ignores costs. Second, preferences are transitive or consistent. And third, â€Å"more is better than less† since goods are assumed to be desirable. Indifference curve represents all combinations of market baskets which provide consumer with same level of satisfaction (Pindyck & Rubinfeld, 2009). Indifference curve and utility functions (set of indifference curves) are used to analyse the consumer behaviour and preferences in choosing market baskets, in which relate to consumer demand (Gould, 1973). Higher indifference curve is more preferable to the lower one because it represents higher welfare (Telhado, 2007). Moreover, indifference curves cannot intersect and the slope of each point in the indifference curve represents marginal rate of substitution (MRS), which is the maximum amount of a good that consumer is willing to give up to obtain one additional unit of another good. Indifference curves of consumers in the airline industry are assumed to be downward sloping and bowed-inward, reflecting diminishing MRS, since the demand of airplane tickets and comparable goods are both desirable. The shape of the indifference curves is different among group of consumers. Indifference curves of the first group of consumer, business travellers, are steeper than pleasure travellers. Graph 1 below shows that the business travellers’ group is willing to trade more of other consumption (a) to exchange it with an airplane ticket (b), since they need to directly travel to other place establishing business transactions. Graph 2. Indifference map for business travellers While in the graph 2, pleasure travellers is unwillingly trade more of the other consumptions in order to purchase a unit of airplane ticket (a < b). It is because they travel to seek pleasure, not urgently need to be done directly. Thus, they are more flexible in the decision making process of which airline company they want to travel with and the time of travel. Graph 3. Indifference map for pleasure travellers Along with indifference curve, there is budget constraints which restraint consumer’s consumptions due to limited incomes (Mary, 2007). Assume that the budget lines for business and pleasure travellers are equal which can be seen from graph 3 and 4 below; the steeper indifference curves for business travellers show their optimal choices between purchasing airplane tickets and other goods. Business travellers seem to purchase more airplane tickets rather than other consumptions because they want to give up more of other consumptions to obtain an additional airplane ticket. Graph 4. Indifference map and budget constraints for business travellers In contrast, for pleasure travellers, the flatter indifference curves will lead them to purchase other consumptions rather than allocating a large portion of income in purchasing airplane tickets. The tangent between indifference curve and budget constraint will be the point of maximum well-being which can be achieved. Area below the optimal point shows that the consumers are not maximising their consumption. Whilst the area above that point means the consumers do not have enough income (budget) to achieve that consumption level. Graph 5. Indifference curve for pleasure travellers In general, when there is a change in consumer’s income, there will be a parallel shift in the budget line, either downward or upward. As shown in graph below, initially, the utility-maximizing consumption choice is at A, at which point he buys X1 units of airplane ticket and Y1 units of other kinds of good. If his income increases, his budget line will shift outward, allowing him to attain the higher utility level associated with indifference curve U2 and then U3. His optimal consumption choice is at B (and then D) now. At this time, the consumer can purchase larger units of tickets (from X1 to X2 to X3). It can be seen in the income-consumption curve that the slope is upward, because as income increase, the consumption of both airplane ticket and other consumption increase. Graph 6. The effect of a change in income level On the other hand, when there is a change in product’s price and income level held constant, there will be an intercept rotation on the budget line. Recent condition in the airline industry is many companies try to attract more consumers to purchase the airline tickets from them by cutting the airfares. This strategy increases the competition level among the airline industry. The reduction in price of the air fares will result in outward rotation in the budget line on the ‘x’ axis, which represents airplane ticket. People can now purchase more airplane tickets due to lower price, representing the increase in consumers’ welfare or utility level. It is associated by the movement of indifference curve from U1 to U3 by selecting point D. At this time, consumption of ticket will increase from X1 to X3. Moreover, the slope of the second budget constraint is now decreasing, represents lower opportunity cost of obtaining a unit of airplane ticket. Graph 7. The effect of the decrease in price level In most cases, consumers would like to buy more airplane tickets as their income increases, but in some cases, the quantity demanded falls as income increases, the income elasticity of demand is negative. As shown in graph below, for relatively low levels of income (between point A and B), both Singapore Airlines and Jetstar flights are normal goods. However, as income rises, some consumers tend to buy less Jetstar tickets and more Singapore Airlines tickets as Singapore airlines has better service, food supply and in-flight entertainment system. At this time Jetstar has become an inferior good, the income-consumption curve bends backward from point B to C, which means its consumption has fallen when income has increased. Graph 8. Jetstar becomes an inferior good as income increases Even though Jetstar has been said as inferior good in some cases, in general, airline ticket is assumed as normal good. Refer to that, a decrease in the price of airline tickets due to the market competition has both income and substitution effect. As shown in the graph below, the consumer is initially at A, on budget line RS. When the price of ticket falls, consumption increases by A1A2 as the consumer move to B. Keeping real income constant, the substitution effect A1E can be got when the price of ticket falls, associated with a move from A to D. If keeping relative price constant but increasing purchasing power, the income effect EA2 can be got, associated with a move from D to B. As airplane ticket is normal good, the income effect EA2 is positive. Therefore, the total effect of a change in ticket price is equal to the sum of the substitution effect and income effect. Graph 9. Total effect of a change in price After discussing the demand curve for individual consumer, market demand curve for airplane ticket will be shown now. It can be derived as the sum of the individual demand curve of all consumers in the market, as stated previously. As shown in graph below, the market demand curve is also slope downward as all the individual demand curves slope downward. However, the market demand curve is not a straight line. When more people choose to travel by airplane, the market demand curve will shift to the right. In addition, if most consumers in the market earn more income, as a result, their increasing demand for airplane ticket will also shift the market curve to the right. If the economic crisis breaks out as what happened several years ago, many people lose their job and the income decreased. Thus, the market demand curve for airplane ticket will shift to the left. Graph 10. The market demand curve for airplane ticket From the actual rates, Singapore Airlines has the higher average price than Jetstar. In the same time, there is a survey about the level of satisfactions of international airlines shown by the graph below. From the graph, it illustrates that Singapore Airlines has the highest satisfaction level figure. From the risk and uncertainty point of view, Singapore Airlines provides superior service and it maintains an eye on rivals’ prices and ensures it stays competitive among other airline companies. The airline cancellations and delays usually provided with explanations and apologies. This airline is also providing advantage on frequent flyer consumers such as â€Å"priority passengers’ service†. This service is suitable for business travellers as it will give them advantage in booking urgently needed flights for important meetings. This airline is also suitable for those high-income pleasure travellers as it offers great entertainment and amusement, such as popular movies with multiple language options, games and dozens of audio channels. In addition, Singapore Airlines catering supply is trying to provide varieties of meals menu which match the likely passengers’ needs. For example, there will be Indian and western food provided for subcontinent flights. Moreover, Singapore Airlines has a modern fleet and the aircrafts have been maintained with the highest standards. Thus, the cost of flights is higher which result in the higher airfares, however, safely of this airline is guaranteed. Comparing to Singapore Airlines, Jetstar offers lower price to the consumers. Their food, beverages and entertainment standard are much lower than Singapore Airlines’. Jetstar is known for having many complaints from its passengers in term of its services, such as frequent delays and cancellations of flight. Those seem to be serious problems for business travellers, as time efficiency is the main factor. However, Jetstar’s network is constantly expanding by opening flights to some new locations in Asia. Thus, Jetstar is more suitable for pleasure travellers which have shorter travel distance and not much concern about the services provided on board. As the theory of equal marginal principle states that â€Å"the utility is maximized when the consumer has equalized the marginal utility per dollar of expenditure across all goods† (Gordon, 2007), the business travellers who are not price prioritize will choose to travel with Singapore Airlines since they prefer in optimal satisfaction. However, for the pleasure travellers that prioritize the price factor will choose to travel with Jetstar which provide low price for consumers rather than best satisfaction. Graph 11. Satisfactions with International Airlines 2009-2010 Even with a high level of satisfaction, Singapore Airline has experienced a decline in market share over the last five years, as shown in Graph 13. Low-cost airlines such as Jetstar have contributed to the lack of growth for more premium airlines. Additionally, Peter von Moltke stated that â€Å"the low cost sector is a major influence in sustaining a steady growth trajectory for the global aviation industry.† (PR Newswire, 2011). Graph 12. Market share of Top 10 Airlines in Australia (Department of Infrastructure and Transport, 2012) So far, it has assumed that people’s demands for airplane ticket are individualized. That enables us to obtain the market demand curve simply by summing individuals’ demands (Kris, 2007). In real-life, however, one person’s demand always depends on other people’s demand. That is a network externality, which can be positive or negative. It is a good chance for airline companies to attract more passengers by using bandwagon effect of a positive externality. As shown in the graph below, when consumers believe more people have purchased the product, the demand curve shifts further to the right (D1 to D5). The market demand curve is found by joining the points on the individual demand curves, which can be seen that it is relatively more elastic. Suppose the ticket price falls from P1 to P2. Without bandwagon effect, the quantity demanded will increase from Q2 to Q2’. However, as more passengers choose to fly with Jetstar or Singapore Airlines and think it is worth to be the first-flying choice as it is trustworthy, the bandwagon effect increases quantity demanded further to D4. Therefore, airline companies use bandwagon effect to increase the response of demand in relevance with price change. To obtain this effect, the airline companies could target its potential segment and use advertisement to build up their brand image and reputation among the market. For example, Singapore Airlines could use ‘comfortable, quick and always on-time’ image to attract its business travellers. And for Jetstar, the image of cheap and flexible could help the company to obtain its bandwagon effect in pleasure travellers’ market. Graph 13. Bandwagon effect To conclude, the consumers’ demand of airplane ticket is affected by their income, ticket price, and the demand elasticity. Business travellers prefer to travel with Singapore Airlines, even with a higher airfare. They concern more on punctuality and the service provided and their price elasticity of demand is low. In contrast, pleasure travellers are less concerned with the quality of service provided, focusing on reaching their destination with the lowest cost. Their price elasticity of demand is high, thus, Jetstar is preferred in this case. In the intense market competition, Singapore airlines and Jetstar could use the bandwagon effect to attract more passengers by building up their own brand image.

You Decide 1

Memo To:John & Jane Smith From: Re:Memo summarizing various tax issues 1. John Smith's tax issues: Issue a) How is the $300,000 treated for purposes of federal tax income? Applicable Law ; Analysis: http://www. irs. gov/businesses/small/selfemployed/index. html Conclusion: The $300,000 will be treated as self- employed income. Generally you are self-employed if you carry on a trade or business as a sole proprietor, independent contractor, or if you are a member of a partnership. Self-employed individuals are required to file an annual return, and pay estimated tax quarterly.Issue b) How is the $25,000 treated for purposes of federal tax income? Applicable Law ; Analysis: www. irs. gov Conclusion: The $25,000 will be treated as self- employed income as well. John was awarded the 25,000 that paid up front expenses, so the number will cancel each other out. Issue c) What is your determination regarding reducing the taxable amount of income for both (a) and (b) above? Applicable Law ; An alysis: http://www. efile. com/tax-credit/federal-tax-credits/. Publication 526- Charitable contributions. Section 170-charitable contributions and gifts ( c).Section 48- energy credit Conclusion: Establish a self- employed retirement plan, make IRA contributions, make charitable donations including asset donations according to organizations described in section 501 (c)(3), make energy efficient improvement to the home according to IRC code 48. Issue d) Do I get better tax benefits for paying the lease on office space or for buying the building? What are the differences? Applicable Law ; Analysis: IRC Code 167- there should be allowable reasonable depreciation for wear and tear on property used in the trade or business. http://www. law. cornell. edu). http://www. microsoft. com/business. IRC Code 179-allows tax payers to deduct the cost on certain types of property. Conclusion: There are better tax benefits for buying the building. Owners of rental property can write of repairs imme diately. Deprecation on commercial buildings is taken over 39 years; you can also deduct interest on the purchase loan, property tax, and other qualifying expenses. (www. microsoft. com/business). The total amount you can deduct under section 179 cannot be more than $500,000. (www. irs. gov).When leasing a building, the monthly lease payment is tax deductible, but the tax payer cannot deduct interest, property tax, or depreciate. 2. Jane Smith tax issues: Issue a) What are the different tax consequences between paying down the mortgage (debt) and assuming a new mortgage (debt) for federal income tax purposes? Applicable Law ; Analysis: www. law. cornell. edu Conclusion: Satisfying the mortgage will cancel tax deductions for that mortgage loan. Without the mortgage interest, a customer could be placed in a higher tax bracket. This will cause the tax payer to possible owe more money.Assuming a new mortgage have benefits rather than consequences. Issue b) Can John and Jane Smith utiliz e a 1031 tax exchange to buy a more expensive house using additional money from John's case? Applicable Law & Analysis: IRC code 1031. The IRC code 1031 allows deferral of taxes on the exchange of two assets. IRC code 1031 also allows one to sell an asset with the intension to use proceeds to invest in a like asset. (http://financial-dictionary. thefreedictionary. com/Internal+Revenue+Code+section+1031) Conclusion: John and Jane cannot utilize a 1031 tax exchange.Owners of investments and business property may qualify for a section 1031 deferral. Both properties in the exchange must be held for use in a trade or business or for investment. Property used primarily for personal use does not qualify for like-kind exchange treatment. Issue c) Does Jane have a business or hobby? Why is this distinction important? Applicable Law & Analysis: IRC code 183. The IRC code 183 is also called the â€Å"hobby loss rule†, it minimize losses that can be deducted from income from hobbies or o ther non-profit activities.Conclusion: Jane has a business. If time and effort put into the activity is intended to make a profit, this is considered a business. Business versus hobby is important because taxpayers who incorrectly report losses from hobby activities can be subject to additional taxes, interest and penalties in an audit (http://www. irsvideos. gov/Professional/HobbyBusiness) Issue d) Would Jane (and John) realize better tax benefits if she had a separate business for her jewelry-making activities? Applicable Law & Analysis: www. irs. govConclusion: Jane and John would have better tax benefits if Jane had a separate business for her jewelry- making activities. Cost of goods sold is deducted from your gross receipts to figure your gross profit for the year; this could include the cost of material. Jane can also deduct expenses for the business use of her home. Jane can also deduct car expenses mileage rates from 1/1/11-6/30/11 is . 51 per mile and from 7/1/11-12/31/11 . 55 per mile (www. irs. gov) Issue e) What tax benefits would John realize if he invested $15,000 in Jane's jewelry making? Applicable Law ; Analysis: http://perlmutter. house. ov/index. php? option=com_content;view=article;id=707;Itemid=88- Business tax benefits under the recovery act. Conclusion: Small Business Investment: Spurs investments in small businesses by cutting the capital gains tax on investors in small businesses who buy stock (in the next two years) and hold it for more than 5 years. (www. perlmutter. house. gov) Issue f) Can Jane depreciate her vehicle or jewelry-making equipment? How? Applicable Law ; Analysis: Section 179. Section 179 allows business to deduct the full purchase price of equipment purchased or financed during the tax year. (www. section179. org)Conclusion: Section 179 deduction enables small businesses to deduct up to $250,000 of the cost of machinery, equipment, vehicles and furniture. To qualify for the section 179 deduction, your property must h ave been acquired for use in your trade or business. (http://www. irs. gov/businesses/small/article/0,,id=213666,00. html). The total depreciation deduction (including the section 179 expense deduction) you can take for a passenger automobile (that is not a truck or a van) that you use in your business and first placed in service in 2009 is $2,960 ($10,960 for automobiles for which the special depreciation allowance applies. www. irs. gov) 3. John and Jane Smith tax issue: Issue a) Should John and Jane file separate or joint tax returns? Applicable Law ; Analysis: IRC Code 1- The law that impose federal income tax on income, and sets the amount of tax to be paid. Conclusion: Married individuals filing joint returns will pay $75,528. 50 plus 39. 6% of income over $250,000. If Jane establishes her activities as a trade or business they would have to pay less in taxes.

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Lyndon Baines Johnson - Thesis Example The era of 1950s marked the initiation of a decades-long war, namely the Cold War, between the capitalistic United States and the communist Soviet Union. The war was characterized by a conflict of ideologies that clashed to result in a war that was to change the world politics for quite a few decades ahead. By the time President John F. Kennedy was elected as the President, both countries, the US and the USSR had started forming blocs of their own – capitalist bloc and the communist bloc. A sort of domino effect followed where gradually but progressively, states in Eastern Europe and South East Asia overthrew their governments to replace with a communist regime. This clash between the two states, rather ideologies threatened the start of a nuclear war. After President John F. Kennedy was assassinated, Lyndon Baines Johnson, also known LBJ, became the president. Following the stance over the domino theory in the South East Asian region, the US believed that communism was a nece ssary evil that would spread from one country to another much as dominos fall one by one inline. Also, the Cuban Missile Crisis had also not proved to be favorable for the Americans thereby escalating the US need to intervene in the world stage. This intervention was seen in the light of America’s involvement in the Vietnam War following its communist takeover in South Vietnam by the Viet Cong. The event has been the most important one during the term of LBJ as the president, an incident for which he will be remembered for his failure at the war.

The Scar that the World Will Never Forget Essay

The Scar that the World Will Never Forget - Essay Example † 1 David Sedivy also asked the same way, â€Å"How does the son of an Austrian factory worker come to European power and become responsible for the deaths of as many as 35 million people?† 2 Another mind boggling question is how can Hitler, an Austrian born, become a leader followed blindly by millions of German and Aryan raced- soldiers? The magnitude of the annihilation and the atrocities committed by Hitler’s regime are definitely mind boggling. "Holocaust" is a word of Greek origin meaning "sacrifice by fire." 3  What is important at this point is to share and retell this saga over and over again to all generations for them to learn insights that will guide, strengthen behaviors and enable people to think within the moral framework of a human being. In short, the question here is whether this event deserves to have a moral imperative. The succeeding discussion would support the stance that the Holocaust education, in particular, deserves to be given a moral imperative. The Saga of Gerswin Kunze during the Holocaust. Present day 21st century setting†¦ as I was doing my daily inspection of every room in our house until I reached that special room which contains our memorabilia. It houses priceless heirloom items and family bloodline photos capturing fond memories of our great family celebrations until I stopped to pause on one frame that brings back memories of being a survivor of the World War II Holocaust. Suddenly, I felt again that strange shivers and goose pimples in my arms. The deja vu feeling crept into my body which was a mixed feeling of fear, sadness and joy. It reminded me of a dark past which I really do not want to reminisce again. But people whom we loved and witnessed how they perished in the merciless executions of the Nazis kept telling us that whoever outlives this saga should tell the world about these nightmares so that this would never happen again. Suddenly flashes of events came back to my memory. This is my story. 1929 – The Germany’s Economic Depression. I am Gerzwin Kunze, from Poland born to a Jewish family in a small called Krzepicea. I was 14 years old then and still studying. My father was a businessman. One day, I did not understand what was going on. I saw my father joining angry crowds marching on the streets holding banners and shouting to air their complaints. There was one time when my father brought me along to walk on the streets with him. He brought me with him just to get a feel of what was going on. There were lots of people shouting, orations delivered. He asked me to hold tight, keep close and instructed me what to do if ever I get separated from him. Learning that I was with my father on the streets, my mother rushed to find us and immediately brought me back home for fear that any untoward incident may happen during the rally. When the right time came, I learned that Germany lost World War I and as a consequence now experienced economic downturn. â⠂¬Å"On October 29, 1929 marked the collapse of stock U.S. market triggering a worldwide economic depression.† 4 â€Å" Germany’s economy was then highly dependent on foreign trade so it was imperative that it was inevitable for it to experience economic downfall which adversely affected people’s livelihood.† 5 Its effects sparked spontaneous protests: â€Å"As production levels fell, German workers were laid off. Along with this, banks failed throughout Germany.

Company Research Assignment Paper Example | Topics and Well Written Essays - 1000 words

Company Assignment - Research Paper Example The mission statement acts as a guide to the company’s decision making. In the mission statement, an overall summary of the goals of the organization is stated. The mission statement for Coca-Cola Company aims at creating value for the goods produced by the company so that they can be differentiated from other producers in the market. Coca-Cola Company strives to refresh the customers and instigate moments of happiness and optimism. The mission statement ensures that the company maintains quality production standard using innovation to ensure that the company stays ahead of the competition (Moses, 2010). The products produced by the company are marketed using the mission statement in mind. The product content, product design, and targeted market support the company’s mission. With the changes in the technological sector, the quality of products with regards to the design and the content is constantly changing. Dietary problems in the globe with cases associated with cal ories being on the increase, the company’s focus on health products has enabled it to retain its market share (Theodore, 2009). Coca-cola Company’s goals The soft drink company has goals that it has set for ensuring continuous growth in the market. The goals can be divided into categories depending on the targeted audience. The first category deals with its commitment towards the shareholders. The company trading its shares in the stock exchange market has an obligation to its shareholders. The company aims at providing the shareholders with a high rate of return in terms of the profit generated from the investment. The company also aims at increasing the shareholders market share through making the company’s shares marketable in the stock market. The goals can also be with regards to the customers. The company aims at providing customers with their favorite drink regardless of their geographic location. This goal enables the company to increase its customer bas e. The goal ensures that all the needs and wants of the customer are met. The customers are prioritized in the company as they provide the revenue while shareholders follow because of their contribution towards capital (Moses, 2010). The other goal category relates to the environment. Conservation of the environment has been a significant concern in recent years with government imposing stiff penalties to companies that pollute the environment heavily. The company aims at reducing its carbon emission by 15% by the year 2020. This is a significant contribution to the environment aimed at reducing the effects of global warming. Reduction of carbon emissions also enables the organization to save on the penalties charged to companies with high green house emissions. How Coca-Cola positions its brand Brand positioning relates to the efforts of the company to attract a bigger market share compared to the competitors in the market. The company offers over 3500 products in the global market . Product diversity show’s that the company’s evaluation of the segmented market and producing many goods to serve the diverse client needs. This allows the company to compete adequately with regards to product diversity. To attain leadership status in the competitive beverage market increasing product variety is paramount (Theodore, 2009). The company’s innovation towards designing the right product to attract

Research analysis Essay Example | Topics and Well Written Essays - 750 words

Research analysis - Essay Example Research questions in the article are two. The first covers the omissions in the postpartum depression careespecially those covering medical-surgery departments while the second research questions deals with reasons identified by postpartum depression practitioners for their failure to deliver particular services. The questions remain consistent with the topic chosen for research. One of the most essential conceptual underpinnings is the quick comprehension of important concepts in the introduction. The author explains the relationship between insufficient staffing and the delivery of poor postpartum depression services(Kelly, 2008)). The author clearly indicates in the introduction that the paper seeks to delve into this area in addition to finding out why nurses do not offer efficient services as health practitioners. The author protects the rights of the people who took part in the study. He elaborates on the method of data collection as well data analysis clearly for any reader to comprehend the procedures. Findings from the research are listed in the findings section. Expression of themes in the article identifies various reasons explaining the inefficiency of nurses. The author aligns the specific tasks for nurses to the themes and the entire framework of the study. The article delves into the effects of Lavender and Rosemary essentials on test-taking anxiety among graduate nursing students. High stress levels are factors that contribute to ever-increasing number of dropouts in this course. Sanatorium care focuses on managing stress levels among patients. In this case, it minimizes the intensity of the signs of the stress as opposed to attempting to treat the effects albeit vainly. The author of the article undertook extensive measures to conduct a literature review on the topic picking information from the current literature materials as well as past articles. In reviewing the literature, the

Issues in Hospitality Industry Essay Example for Free

Issues in Hospitality Industry Essay What are the main issues in hospitality industry? The issues were discussed at the last meeting of International Society(ISSC). Asking from the guest their shortage, they gave some problems necessary for them. Main part: Capital available, Emerging market, Technology, Travel permit residence. Capital available: Capital provides asset liquidity and enables the development of new hotels. Increasing institutional investment into the hotel sector is enhancing asset values and consequently lowering returns. Expectations of revenue and profitability growth are stimulating capital availability for new development. This environment is expected to continue as long as the hotel industry’s cyclical expansion continues. Signs of a cyclical plateau are starting to appear, and the implications of capital availability will be profound. Many factors affect the amount, timing, and availability of capital. In the US the fractured economic conditions that existed after 2001 eroded operating results and values over the ensuing few years, but this in turn set the stage for the current cyclical upturn. Modest potential for new supply, together with the industry’s high degree of operating leverage, have now made hotels highly attractive relative to other commercial asset classes. As a consequence, a large migration of institutional capital to the hotel sector was not long in coming. Investors have bid up hotel prices and bid down required yields to relatively low levels. The momentum of the hotel investment market has been enhanced by significant liquidity in the mortgage markets. Emerging market: The World Tourism Organization estimates that global tourism visitation (as measured by arrivals) has increased from 770 million in 2005 to 983 million in 2011 and is expected to continue to increase reaching 1,561 million by 2020. China alone is expected to generate 100 million outbound tourists by 2020 up from less than 15 million currently. As the number of international travelers increases, the beneficiaries (i. e. , countries and specific destinations) of international tourism will also change. In many cases, historically popular destinations may make gains in the aggregate number of visitors, but the proportion of total share is likely to decrease. A growing interest in â€Å"new† and previously less accessible destinations (such as Vietnam and China) as well as the strong growth of more traditional destinations (e. g. , Singapore) is driving this shift as well as more practical considerations such as location and modes of transportation. What is driving this rapidly expanding outflow of visitors? Among the leading reasons, travel is being seen as luxury rather a consumer staple at most income levels and as incomes in emerging markets rise, so does the demand for traveling. Regarding the increasing share of Asia it can be attributed to a large extent to the growth of China outbound travel which concentrates in Asia (in 2004, over 70% to Hong Kong / Macao and almost 20% rest of Asia) Demographics are also supporting this interest, again notably among emerging countries, where populations tend to be younger (as opposed to the western world where seniors and near seniors are the fastest growing age brackets) and the middle class is rapidly expanding. Awareness of foreign destinations through electronic images, the rapid acceptance of new telecom products and international branding/marketing has a direct appeal to this younger, more affluent demographic. The four BRIC countries (Brazil, Russia, India and China) provide an interesting perspective of this demographic shift. Technology: The challenges of keeping up with the fast pace of technology is difficult and expensive. Guests can now use the Internet’s interactive reservation systems, and hospitality companies are sometimes criticized for the (alleged) large number of keyboard clicks required to make a reservation. The number of reservations made via the Internet continues to increase. Surveys in the United States show that currently 20% of all reservations are made through the Internet, and this percentage is increasing every year. With such high percentage of reservations done through the Internet, a hospitality cannot afford not being connected. If the potential guest cannot book online, a reservation will be made at the competitors web site. Guest-room Innovations Multiple telephone lines, interactive opportunities for ordering room service, and guest-room check-out are examples of amenities that guests increasingly desire, but that are very expensive to install and implement. Data Mining This technology allows marketing and sales personnel to find new ways to use guest-related data. (data mining: using technology to analyze guest and other related data to make better marketing decisions. ) Yield Management This computerized process allows managers to match guest demand with room rates (high demand means higher rates because of lessened discounts; low demand result in higher discounts. (yield management: demand forecasting systems designed to maximize revenue by holding rates high during times of high guest-room demand and by decreasing room rates during times of lower guest-room demand). Yield management is critical to maximizing a hospitality’s profitability. The concept are applied to every revenue department and across department. The yield managers job is to maximize the revenue per available room by selling rooms to the right customers, at the right price, at the right time.

Cross Cultural Marriage Essay

Cross Cultural Marriage Essay The world is an interesting and a diverse place to live in. An Intercultural Marriage is a union of two people involving numerous cultures and backgrounds. When two various cultures combine together, there may be significant challenges they have to face. Each race ensures there own culture. A culture may differ from one to another due socially transmitted behaviour patterns, arts, beliefs, institutions, and all other products of human work and thought. Culture is a system of shared beliefs and values and is constantly evolving and changing around the world. The presence of intercultural marriages and intimacy is clear and expanding in societies throughout the Culture may consist of shared language, religion, or ethnicity. America is one of the greatest multicultural and multiracial societies in the world at the moment. Nevertheless, this may come across as a shock to most people but as lately as 1966, 17 states in the United States actually had laws against the interracial marriage a nd all of the states regulated marriage between whites and other races in the country. Discriminations against miscegenation are usual nowadays. Despite the significant number of intercultural marriages in the U.S today, mere empirical research has been done to determine the nature of these marriages (Ngye Snyder, 2000) and marital satisfaction. Communication style and interpersonal relationships are fundamental aspects of culture and can vary dramatically from one culture to another. There may be language and communication barriers. It is noteworthy to remember that everyone on this earth has culture, not just those clusters that are considered civilized. The majority of culture is unseen, below the surface. For example, when a Russian man marries an Italian it is not only the differences in native language (Russian vs. Italian) and religion (Eastern Orthodox vs. Roman Catholic) but also a host of cultural differences associated with such factors as expression of emotion, conflict expression and management, the role of the of family of origin in raising children (Sullivan Cottone, 2007). The beliefs and values that lie beneath the surface can be the most difficult to change when it is necessary. (Progressive Scholar, 2010) Interracial marriages are not always intercultural marriages, as in some countries, for example, in t he United States, people of different races can share the same cultural background. (Source Wikipedia, Last access 17th August) it is easy to comprehend why it is difficult to let go of a tradition or expectation. It isnt easy to deal with the legacy that weve all grown up within our ethnic, religious and socio-economic backgrounds. Though it seems to be a very romantic love story, in the beginning, the truth is, it can be very challenging and frustrating in real life. And it is simply not about being racist, marriage has a deeper meaning to it, which dwells in understanding it, is possible to have extremely strong and natural negative feelings surrounding an interracial relationship or a marriage even though youre not considered as racist. Legal or not illegal the question is should interracial marriages be encouraged? The union between two different cultures altogether will give space to different experiences and opportunities in life, but most difficulties in the marriage life where it is concerned. Adoptions to a different culture altogether maybe not turn out to be an easy task. Individually ethnic and cultural variances put pressure on the marriage itself. With two diverse cultures, a family often has struggled with understanding the differences between the families. Most of the time, such differences are not even recognized and unexplained. At this position an even larger problem with intercultural marriages. It is easy to look at why it is difficult to let go of a tradition or expectation. It isnt easy to deal with the legacy that weve all grown up within our ethnic, religious and socio-economic backgrounds. Numerous cultures will consume different marriage laws, customs and also parental disagreements which will lead to disputes. There will be lower material satisfaction, higher divorce rates due to logistics. Language barriers, different traditions and societys disapproval of these factors will lead to higher failure of the marriage. Hence, a union between two cultures should not be encouraged due to the factors mentioned above. The report will consist of three major factors which are mainly focused on miss- contribution towards an inter-cultural marriage. Initially how the marriage is affected by the cultural shock, diverse of marriage laws which can lead into disagreements plus adaptation to various cultures and environmental factors. Secondly, the societys points of view, Spouse facing discrimination due to colour and differences, if he/she is beyond the racial divide. The last point will conclude of dissipation of culture. The report contains information based on various countries and issues with diverse cultures marriages. 2.1 ADAPTATION TO A DIFFERENT CULTURE The main intention of getting married is to emotionally, spiritually and physically unite men and women together, as husband and wife, it is a commitment made in the presence of God, and is valid until death. Intercultural marriages are often influenced by external factors that can create a confrontation and disagreement in relationships. Different cultures endure vastly diverse moral, ethical and value foundations that influence their perceptions of individual, family and societal lifestyle. When these fundamentals are operating alongside the foundation of different cultural roots, as in intercultural marriages, problems and disagreement oftentimes occur. It takes an effort to combine two cultures successfully, and a willing attitude to learn from both partners. The first argument against intercultural marriages is the cultural shock (adaptation to a new culture). When considering an intercultural marriage either one of the partners have to get introduced to a new culture. Ideally, both have to get used to each others cultures and laws to survive the marriage and this will create a lot of problems in the process. For an example A non-Muslim marrying a Muslim will have to obey to certain laws in Islam; Islam forbids marriage between Muslim women and non-Muslim men. Therefore, any partner will have to convert and obey Islamic rules (sound vision, 2010). In the case of Muslim men marrying Jewish and Christian women, the situation is different. While Islam does allow this, Muslim men marrying Jews and Christians need to remember that living in the West, if they end up divorcing, the children will almost automatically be given to the mother. The converting process from one religion to another and adapting to new laws will create massive problems that will even end the marriage. Additional wrinkle in U.S. Muslim family law practices stems from the structure of authority in Islamic jurisprudence since there has never been an official church certifying individuals to speak on behalf of the religion, the field is open for any dedicated Muslim to seek to act as imam and lead a community (Quarishi Syed- Miller, 2001) therefore, non-Muslims have a very rare chance of winning and surviving in the marriage due to different laws in different cultural laws. Moving on, Intercultural marriages have contrasting differences between traditions and cultures. Although a few studies have looked into this aspect, cultural differences also stimulate marital conflicts, particularly in intercultural marriages. In fact, the quantitative study of Takano (2002), pointed out that 19% of the marital discords in interethnic couples involved in his study are attributed to cultural differences.). Couples that enter a cross-cultural marriage bring into their relationship vastly diverse assumptions and expectations about marriage and family life. Many of these assumptions flow out of the values, unspoken rules and belief systems that permeate their primary cultures. These unspoken values have become so much a part of their lives that they are almost hidden from view. For an example, the way of celebrating Christmas is different in Germany rather than America (J). In fact, many of these cultural differences do not surface until after the couple is married. However, New experiences and new culture altogether may interest an adventurous spouse as its a unique once in a lifetime experience and the difficulties greatly depend on how religious and culturally bond the families are. Not all think out of the box, New strange land, parents and language may cause distress at the beginning of the marriage life. One spouse will live in the country of origin and the other will be a stranger in a strange land the pleasantness maybe fall apart after sometime when trying to fit into a different family, culture. Marriage and customs differ from one country and another culture.For example, Indian marriage customs are varying from marriage customs of Chinese traditions. In Japan the Japanese bride to be painted pure white from head to toe, visibly declaring her maiden status to the gods. There are two choices of headgear exist. One which is, the watabÃ…Â shi, is a white hood, the other is called the tsunokakushi, serves to hide the brides horns of jealousy. It also symbolizes the brides intention to become a gentle and obedient wife. During the period of the traditional wedding days, there would be a tilak ceremony (where the groom is anointed on his forehead), a cerem ony for adorning the brides hand then cover the feet with henna (called mehendi) accompanied by Ladies Sangeet (music and dance) and many other pre-wedding ceremonies. Hence, marriage traditions, customs and beliefs may clash due to the above points mentioned so far. Religion runs deeper since they practice their faith and it is a part of their cultural identity that they want to hang on to. The accurate, customs and special days associated with the religion remain significant to them. The regarding the worship of the children will matter some religions deny the validity of all others and insist on conversions or demand that the children should be brought up in that religion. A couple might face difficulty in deciding on this above point and the spouse form the other religion may feel inferior and down. For example, Orthodox Judaism teaches that the family must repudiate (sit shivah for) a child who marries a non-Jew: Islam demands obedience to Gods law only as revealed by Muhammad, and also requires that a Muslim marry a fellow Muslim. The Catholic churches until recent years insisted that a non-Catholic partner sign a prenuptial agreement to raise any Catholic children. Particular Christian sects preach that all outsiders are damned to eternal fire and prohibit any marriage to people of different faith. At this specific point, the problem may occur with the faith plays a major role in decision making this is if the partner is intensely religious. As they approach each others separate territory, there is a new language, new customs and a new standard of normal to be learned. While culture a certain behaviour might be accepted, here it might cause native offence. This sought of marriage is similar to a foreign alliance, with two separate people coming together and discovering the heritage and history of the other. 2.1 Disapproval from parents and rejection from society No man is different from the other; every human being is created equal. Some optimists believe its the mind of one that creates all the boundaries. But over the time when people get used to one way of living, it is likely that they maintain the trend, generation after generation, this is where culture plays a role. Once you are used to that play it is very hard to get rid of it or adopt a different style of living. Culture is a total of the inherited ideas, beliefs, values, and knowledge, which constitute the shared bases of social action (Collins Dictionary). So as these practices are a significant and unique part of a group of people at a particular period, they are no longer equal anymore, one would be different from the other from the thoughts and beliefs. Intercultural marriages go beyond the racial divide, Which will lead to discrimination by people around them and which may make it uncomfortable to family and parents Interfaith, intercultural and interracial marriages are subj ect to special stresses and strains beyond those experienced in most marriages. Issues are apparent from early in the relationship. Differences often emerge during wedding planning, and these can involve the expectations of partners families of origin about the wedding ceremony, etc. Child rearing can also bring religious, cultural and/or racial issues to the surface as decisions about religious practices and education are confronted for the first time. (Patricia S. Gregory A., 2003) Disapproval from parents for a cross-cultural marriage is customary. Parents should play a major role in their childrens marriage set up. As a matter of fact, the parents fear to risk the life of their unmarried children who might face discrimination from the partners family members. There may also be communication problems if they speak different languages. And It is typical of parents to want their children to find a spouse from there own religion and culture, just to make life easier, and this a better place to live. There are situations where they decide to migrate to the spouses country, which Is living far away from there own family. The parents of an interracial couple usually feel that they have been lowered by their children. A cross-cultural communication in a marriage should respect differences. In marriage you just dont marry another you interconnect with another family as a whole.Intercultural marriages can also include people from different races getting together, a sit uation where there are much more complicated issues when it comes to marriage. (the cultural difference is greater). On the contrary, there is intercultural marriages present within the country like in India, The culture of India is an amalgamation of these diverse sub-cultures spread all over the Indian subcontinent and traditions that are several millennia old.Religiously, Hindus form the majority, followed by Muslims The Republic of Indias state boundaries are largely drawn based on linguistic groups; this decision led to the preservation and continuation of local ethnolinguistic cultures. Thus, states differ from one another in language, culture, cuisine, clothing, literary style, architecture, music (Wikipedia) Another problem is that many of the couples have to encounter is societal disapproval. We have to cope up with our society in spite of our own opinion. The society, on the other hand, considers intercultural marriages as straying from traditional values. A Society is an organization of people who share a common cultural and social background. (Oak, 2007) The consequences of marriage affect every aspect of society. It occupies the most intimate aspect of personal privacy and personal love and reaches the pillars of the sacred institutions of a culture. Marriage is the pillar of society, but it is also the pillar of government, business, and the military. (Wood, 2010) There are mere open-minded people who would give all the support they can, there will always be others who would make the couple feel unwelcome. The most abusive treatment would come from other children. During courtship, many of the racial differences might have overlooked, but after marriage, the couple might find t dif ficult to make adjustment as each group practices a different way of life. Another discouraging occurs when the couples try to participate in social organizations. Although societys disapproval will not affect the couple as seriously as parental disapproval, it is still an issue that cannot be ignored. (http://www.megaessays.com/viewpaper/25504.html). Sure as it is multicultural marriage requires a lot of sacrifices. We have to cope up with our society in spite of our own opinion. The society, on the other hand, considers intercultural marriages as straying from traditional values. A Society is an organization of people who share a common cultural and social background. (Oak, 2007) The consequences of marriage affect every aspect of society. It occupies the most intimate aspect of personal privacy and personal love and reaches the pillars of the sacred institutions of a culture. Marriage is the pillar of society, but it is also the pillar of government, business, and the military. (Wood, 2010). In this global world nowadays people are becoming accepting more than they used to, and less ignorant. In the eyes of the person who is getting married this may no longer matter as love has no boundaries. It really does not. Maybe our soul mate is from a different country and religion altogether. Marriage is a union of two who are in love. The relationship depends on the person in them. Care and trust are more important than what the persons religious or cultural background is. There will also be less discrimination amongst races. Nevertheless, There comes a point where it really does matter, because a marriage needs to be maintained throughout with commitment and understanding, it is a bond that is virtually irrevocable. In order to be more comprehensive, it is excelling if they have a grip on what it is, even better having practised the same. Parents agreement for a marriage would be very important and as it is a blessing from them indeed in the years ahead, many face this problem, because parents do not think like the present generation does. Also the society holds the view that a marriage is the stability provided by a life-long promise of remaining together which makes marriage the institution most suited to rearing and socializing the next generation of members, a necessary task if the societys norms, values, and goals are to be maintained and if the society itself is to be is to be immortalized (M White, 1995). Each culture has its own way of communicating, arguing, eating, sharing, and showing affectio n. Most cultures remain intact by passing along their nuances, habits, and sayings for hundreds of years, with only slight variations occurring within each generation. (Henshaw, n.d) 2.3 Culture dissipation There are numerous cultures available throughout the world. People around the globe are similar in their essential humanity: we communicate with each other, we sustain ourselves with food, and when we sleep we often dream. Yet we speak different languages, eat different foods, and dream different dreams. These are what we call the cultural differences. (Jervis. N, 2006). Let not scores of men/women abandon their culture and disappoint there parents and family in any way. All religions that accept or desire converts have had to adapt themselves to the cultures where they spread or they would not have been accepted. (Jervis. N, 2006) In the new era, as intercultural marriages are present, dissipation of culture is on the increase. As people migrate, get married to people of different culture and religion, there will be less who maintains the traditions ethics and values that they are nurtured with. These differences like religion, ethics etc. affects the spiritual stability of the marr iage in an unforeseen manner. Why is culture so important? In a society, groups of people are interactive and interpersonal. In order to understand the groups to which one belongs, it is important to recognize the various cultures or habits and traditions within each group. It makes for a better understanding between diverse groups. (yahoo-ask answers) Lets get this through, cultures are constantly changing. The attitudes, values, goals the practices that characterize each society. Technological innovation and contact with other cultures may cause these to change dramatically. An intercultural marriage is one of the causes for cultures to go extinct. And it promotes cultural discontinuity. Cultures do changes, they are never static. The responsibility of us to maintain it .also some convert from one religion to another after an intercultural marriage due to the influence of the new environment this may not always be good. After the marriage the spouse most probably the female might not experience the same traditions and ethics in the new family. There will be no one to maintain its cultures are connected to language and traditions and religions.cultural continuity is important, continuity requires that a culture stays the same thats impossible just that certain central aspects of a culture, such as particular beliefs or traditions, remain (gorigirl, 2009) On the other hand, some people believe an intercultural marriage does bring about many cultures together and ensures freedom, unity in the society and traditions should be revisited because if not women nowadays will be locked up in kitchens like in the 16th century. Cultural diffusion is good. Less racial discrimination because no one is neglecting anyone due to cultural barriers. It will also help over racists minds of few. No boundaries for love will make life easy for couples from different cultures We will always love our traditions and respect it as a part of us and would love to even teach our kids the same way. But with intercultural marriages sacrifices have to be made. Intercultural marriage is a perfect example of the creative destruction that, when successful, leads to both great innovation and happy, meaningful lives. Every marriage consists of the creation of a new family culture -but with intercultural marriages, each individual is bringing a completely distinct culture and set of traditions to the table to be combined. (gorigirl, 2009) Misbelieving in cultures will give a person no direction and sense of identity and uniqueness; people will become less traditional, religious because of the influence of many cultures and will also lead to language death. Part of our culture is language and it affects the cultural identity of the tribes or ethnic groups. They will not stick to one culture and would adjust according to there ideas as the culture is destroyed (mixed) and ignored by them. People would be less civilized after some generation as they are not nurtured according to one way of living, they will easily adapt to any change which maybe gives them no identity. 3.0 Conclusion Diversity and unity amongst people are the best, But this world is not perfect. A relationship is hard to maintain. Especially an intercultural or interracial marriage as they have to face new challenges every day, there are many hurdles they should overcome. Family and society perceptions matters. Unity is a good thing and discrimination should be lessened but miscegenation is always not the solution to reduce or top discrimination, it should come within our selves and not with due to the respect of a relationship as if it is so, it might fade after sometime when the spark of the love is faded. Many difficulties should be overcome by a success of an intercultural marriage like maintain a family. The shared beliefs and values of people should not leave them after some time, it should always in them, an intercultural marriage is affected by the cultural shock, diverse of marriage laws which can lead into disagreements plus adaptation to various cultures and environmental factors. Lang uage barriers and different traditions they are nurtured by people. Spouse facing discrimination due to colour and differences, if he/she is beyond the racial divide and dissipation of cultures occur. Sometimes the differences of each other may be too hard to handle over time also let not let go of our religion and beliefs and values due to a marriage, as our future generations need a proper culture to adapt to and to be brought up properly. Let not our own traditions breakdown. 6.0 Recommendations As intercultural marriages are faced with many barriers, due to family issues and adaptation to the culture. A marriage is not easy to maintain and its more challenging as its an intercultural marriage.As in this modern era people should be more accepting and diverse. Parents should be more attentive about the unmarried childrens desires, think more out of the box and support them throughout regardless of the cultural barriers. They should focus more on the person and the character and not judge them by the race or religion that person belongs to. Pre-marriage counseling would help to smoothen the beginning of the marriage, due to the differences Avoiding conversions to other and have faith in what they always believed in and not to change because of a marriage. Parents should always give there blessings to a marriage no matter how much they like it or not, because it does affect the couple emotionally and psychologically The society should be more accepting to differences They couple should get together and spend more time each of their familys and the places they were bought up , for the spouse to feel comfortable and less strange in adopt to changes Family and relatives should always help and support the couple throughout because its a tough challenge they have to face. Extra attention should be given to the differences and weak points of the couple so they can work on it before things go out of hand.as it is very much possible due to the differences in each other For traditions and cultures to be continued till today people should be more rational and moral. Supplementary research can be done on areas like impact on: Family life, Impact on children, nature of intercultural marriages. As these areas are not covered in the above repot, these will help expand the topic into further branches Recommended areas to research on: Advantages of intercultural and marriages in the new era. Bibiloigraphy Ballard., (2006), The International YWAMer magazine , 6th of january 2006, issue june 2006. Berry, F (1992). Langston huges, before and beyong harlem .USA: Carol PuB.Co.Group.P56-75 Donovan, S Corbin, J (2007), Intermarriages, 5th october 2007, viewed on 16th of july 2010, Available :http://www.jstor.org Deborah T, You Just Dont Understand: Women and Men in Conversation (New York: Ballantine Books, 1990), pp. 188-215 Gorilgirl, ( 2009), Broken Traditions? Intercultural Marriage and Cultural Continuity, 13th of july 2009, Available: http://gorigirl.com/broken-traditions-intercultural-marriage-and-cultural-continuity.Last accessed on 16th of july 2010 Myers; Jane, E.(2005) , Marriage satisfaction and wellness in India and the United States, 22nd of March 2005, Available: http://www.accessmylibrary.com/article-1G1-133015418/marriage-satisfaction-and-wellness.html.HYPERLINK http://www.accessmylibrary.com/article-1G1-133015418/marriage-satisfaction-and-wellness.html.LastLast accessed on 22nd of September 2010. Nancy J, ( Ph.D).(2006) What is a culture, (N.d)Available : http://www.p12.nysed.gov//ciai/socst/grade3/whatisa.html.HYPERLINK http://www.p12.nysed.gov//ciai/socst/grade3/whatisa.html.LastLast accessed on 19th of September 2010. Romano, D(2006), Intercultural marriage, prmoses and pitfalls, 8th january 2006, Available: http://www.amazon.com/Intercultural-Marriage-Promises-Dugan-Romano/dp/187786451X. Last accessed on 26th of july 2010 Tiergert, V. Difficulties faced by intercultural relationships (2008)Availble : http://www.helium.com/items/1957887-difficulties-faced-by-intercultural-relationships. Last access on the 1st of September 2010

Indias Economic Engagements with Sub-Saharan Africa

Indias Economic Engagements with Sub-Saharan Africa INTRODUCTION Africa till recent past quite easily qualified for the unceremonious category of â€Å"hopeless continent† that largely failed to provide basic services to their people that have non-existent or fragile government and are subjected to regular outside interference. Decades of impoverishment, factional feuds, power struggles, natural calamities, harsh living conditions and exploitative attitude of global powers ravaged most of the countries of Africa pushing them to bottom of the third world, incapable of sustaining themselves despite enormous wealth of natural resources. A lot has changed recently, wherein democracy has not only found its feet but also, strengthened manifolds leading to economic growth. There has been renewed interest of many powers, world over to engage with Africa as its equal partner, while boundaries of power take a new shape. This has its roots in ever increase in positive narrative of Africa. The history indicate a long and ancient account of indo-African relations[1], with Africa being a host to Indian Diaspora for a reasonably long time. Recent times have witnessed a new set of dynamics emerging in the form of rapid expansion of relations. In 2010/11 Indo-African trade reached USD 45 billion and is expected to grow beyond USD 75 billion by 2015[2]. While carrying out any study on Africa it will be important to understand the human scene with an attention toward a general review of the kinds of peoples and social organisations that are to be found in Africa. In societies, such as those of traditional sub- Saharan Africa, which have a fairly simple socio-economic structure, the various sectors of human life which are organised and from which stem a measure of established authority are more closely interwoven than in more complex societies[3]. Each area of life is more sensitive to change and to influences emanating from every other part. Human life is simpler, because its needs are fewer and the methods of satisfying them are more restricted and more sharply defined. The native Africans need to be contrasted with millions of Europeans, Indians and Syrians apart from sprinkling of people from all over the world. A special character emerges owing to the disparity which has been impacted by outside world on its original form. Hence it becomes imperative that any evaluation of present situation on the continent and particularly any planning for the future, regard the indigenous African and his traditional way of life and thought as a major factor in determining the facts and assessing the probable results of change. While US shifts its focus on Asia-Pacific region, China competes with all emerging powers for energy resources and markets for finished products apart from a big time engagement in infrastructure development. India’s growth, though not as spectacular as China, its capitalist interests are ambitious to extend their commercial reach. The pursuit for economic growth has superseded previous outlook of Indian foreign policy which has provided drive to the commercial ventures in newer avenues. Africa, as portrayed by ex Prime Minister Manmohan Singh as ‘a major growth pole of the world[4]’, can be viewed for new investment sites, export markets and capital accumulation for Indian-based interests[5]. The launch of Export-Import Bank of India (EXIM) as part of its â€Å"Focus Africa† initiative can be regarded as a stepping stone towards upsurge in economic activity[6]. The project initially targeted Ethiopia, Kenya and Mauritius with extension of lines of credit i n support of goods export to these countries. Engagement is the buzz word for today’s world and involves many dimensions, to include politics, trade and commerce, security, infrastructure, capacity and capability building etc. India continues to deploy troops in Peace keeping missions in Sudan as well as Democratic Republic of Congo under UN flag apart from provision of expert advice as part of defence cooperation to many countries such as Nigeria, Zambia, Lesotho and Botswana in development and transformation of their militaries. The western analysts have propounded many theories with respect to nature of Indian engagement with Africa; some see it as a supplier of investment and aid donor whereas others narrate ‘benign and nuanced approach; while it lacks in foreign reserves to compete with Chinese cheque book diplomacy and futility of economic munificence alone. Ian Taylor in his paper titled India’s rise in Africa questions if â€Å"India is a scrambler or a development partner†, a self interested actor bent on exploitation or one that aspires to some level of mutual benefit[7]. Amidst these analyses the most pertinent factor which needs to be seen is how African leaders seek to leverage Indian engagements. Thus politics comes to fore, which has two related dimensions, the competitive pursuit of private interests, and the determination of public policy. Observing the priority of African elites to accelerate efforts to improve the conditions, develop institutions and enabling infrastructure for overall growth, a discussed/researched approach for symbiotic relationship holds the key to any engagement. While addressing its national interests in the area, a holistic study of all possible areas of mutually beneficial engagements will add to focussed betterment of the region at large. The mutually beneficial engagements should allow a lasting impact in polity as well as common public of sub Saharan Africa that their true interests and future lie with India. The skilled yet jobless youth of India can find meaningful engagements in these countries contributing to th eir capacities while earning goodwill, friendship and favourable environment for enhanced engagements. The study seeks to analyse existing engagements of India with sub Saharan Africa in fields like economy, military, education etc. with examination of feasibilities to enhance the same, as the opportunities, which emerge in contemporary times in the backdrop of highly competitive world may not arrive/ relent in times to come. The study has been organised into various chapters as under:- (a)Chapter I: India’s Africa Policy in Contemporary Times. (b)Chapter II: India-Africa Security Cooperation and its Evolution. (c)Chapter III: Economic Situation in Sub Saharan Africa. (d)Chapter IV: India’s Initiatives in Sub Saharan Africa. (e)Chapter V: Indian Diaspora and its Contribution. (f)Chapter VI: Way Ahead. CHAPTER I INDIA’S AFRICA POLICY IN CONTEMPORARY TIMES Post independence, seventeen years of Nehruvian era witnessed non-alignment as the corner stone of India’s foreign policy. This was adopted primarily as a visionary policy based on idealism. The geography as well as fragile economic conditions acted as material reasons for following a policy of non alignment, which certain academicians view as a safe path to seek cooperation of big powers and prevent any power bloc from turning hostile, apart from Nehru’s strong conviction against balance of power, military alliances and rush to exhibit military power. India became extremely inward looking during Cold war era as it was marred by its domestic problems. Persistent levels of poverty, rising corruption and poor governance during 1970’s and 1980’s along with tumultuous neighbourhood tied India to sub-regional and national issues, overlooking African Continent as being irrelevant to its National interests. Post cold war the policy mandarins in Delhi were compelled to reshape its foreign policy, taking into account the new impulses of global arena. In addition, India’s growth rates have averaged at around 6% per annum since 1990’s, after taking off in 1980’s[8]. India’s pro-business strategy followed by liberalisation in early 1990’s along with refocus of Indian Companies to fresh markets and investment opportunities in regions having large Indian diasporas resulted in consolidation of old ties. Impressive growth rates allowed India to address its internal problems and fine tune its foreign policy with economic ambitions. After a detailed arrangement to send envoys to sub Saharan countries during 1996-97 as a mark of reaffirmation of India’s assurance to strengthening cooperation with these countries in a spirit of south-south partnership[9], the Government of India increased its involvement with African states further in 2003. This was followed with announcement of Indian Development Initiative. India is in drastic need of finding new suppliers of energy and other primary resources. For India to become a global power it must grow above 8 percent annually for at least two decades. The assured availability of energy will be a key factor. India despite its domestic production of oil and natural gas will still incrementally require additional resources of energy. India’s hydrocarbon import dependency has been predicted to rise from current 70 percent to almost 92 percent by 2030[10]. As true to any Nation, the continued growth of India depends on availability of raw materials for industrial production and energy sources to support industries. As per reports till 2009, India imported 70% of its oil requirements and provided heavy subsidies on domestic prices, leading to double digit inflation figures after being under 6%[11] for 13 years. India’s Africa policy has laid emphasis on expansion and diversification of supply sources and to that end Indian national oil co mpanies have purchased equity stakes in overseas oil and gas fields to ensure reserves and provide a boost to production capability. These include fields in Africa, Southeast Asia South, America and Caspian Sea region. Despite these efforts the majority imports arrive from Middle east where Indian companies struggle for direct access or investments[12]. The tilt in relations of immediate neighbours of India towards China, tensions with Pakistan, competition with China and demonstration of African partners as all weather friends during world wide sanctions post nuclear tests were the major motivators for India to reformulate its foreign policy. While India is seeking to be a more dominant power and credibility in global scene, it is increasingly relying on Southern backing. Objectives of Indian National interests appear to be fulfilled through newly identified means of â€Å"Aid†. On one hand India rejected foreign aid from most of its donors in 2003 to draw attention of world order to its self sufficiency in tackling its internal problems of poverty, corruption etc. and on the other hand to reflect its role as a new donor. India initiated its development assistance way beyond its immediate neighbours along with scaling up of diplomatic initiatives within Africa, increasing the number of Indian embassies in the continent. It a lso covered the regional divisions of Africa by creating three joint secretaries[13]. Historical and ideological linkages between India and African countries have been important factor, too.1950s witnessed south-south cooperation as a platform for struggle by former colonies for independence and greater autonomy. Bandung conference of 1955 brought together 29 Asian countries with Africa to promote cultural and economic cooperation in Asian-African region. Mutual interest and respect for national sovereignty was the basis of this conference. NAM came to being in 1961 and Group of 77 in 1964, which were viewed as anti hegemonic. India and China championed these movements and have been in competition to lead the representation of Southern states, since then. While China provided military assistance for liberation movements, India was assisted in anti- apartheid struggles in Zimbabwe and South Africa. Ideals of Mahatma Gandhi were integral to India’s foreign policy, who has been quoted to have said that â€Å"ideas and services will be drivers of commerce between India and Africa unlike Western exploiters busy in trading manufactured goods against raw materials†. This resulted in emergence of India’s philosophy of developmental assistance to Africa which culminated in creation of ITEC programme[14]. This placed training and capacity building ahead of financial assistance. During Delhi declaration of India-Africa Forum Summit in 2008 Prime Minister Manmohan Singh, announced that: â€Å"The time has come to create a new architecture for our engagement in the 21st Century. We visualise a partnership that is anchored in the fundamental principles of equality, mutual respect and mutual benefit. Working together, the two billion people of India and Africa can set an example of fruitful cooperation in the developing world†[15]. The Indian policy makers identified the pre conditions of Western donors which was attached for a long time on any aid without aligning it with the aspect of developing the productive ‘supply side’ of economies. A model of developmental assistance with minimal conditions and respect for the national sovereignty worked out by Indian policy makers appeared to be more acceptable and less imposing. A new body for governing India’s outgoing development assistance, called development Partnership Administration (DPA) has been set up under the Economic Relations Division of MEA, which is just short of an â€Å"aid† agency. It is mandated to streamline administrative issues of entire process apart from assessing the effectiveness of credit lines that India is extending to its partners.[16] It primarily allowed African states to set terms of agreement and overall purpose of aid. In 2009, Paul Kagame, president of Rwanda, announced his desire that:- â€Å"All would benefit if the world focused on increasing investment in Africa, and if Rwanda and the rest of the continent worked to establish more equitable international partnerships. A trade relationship built on this new approach would be more helpful in reaching what should be our common goal: sustainable development, mutual prosperity and respect†[17] Value and Sector based distribution of Lines of Credit   Source: Indian Development Cooperation Research at Centre for Policy Research India’s security concerns and contribution into stability of African security are also related issues with an aim to secure its National interests. Owing to deteriorating conditions of piracy at sea on West Africa and existent threat off the coast of African horn, there lies an opportunity to exercise its well espoused maritime doctrine published in 2004 and revised in 2009[18]. India’s experience in UN peace keeping missions especially in Africa has its origin in contributions to ensure stability of the region. There exists a framework for defence cooperation in the form of training teams to evolve better training programmes for the countries it is engaged with. India’s naval presence is largely restricted to anti piracy in the gulf region, but there exists a wider scope for enhanced engagement in operations as well as training with a broader aim of addressing strategically important Indian Ocean rim. Analysis What emerges from the study of evolution of India’s foreign policy with respect to Africa, is that the main drivers of India’s relations with Africa present a tricky mix of strategic, economic and political factors based on national interests of India with complex set of internally diverse actors and historically stated policy of non alignment generally understood as non interference, thus providing enough space for the other partners to have a say in engagements. In effect, India has sought to develop and pursue a strategic partnership simultaneously maintaining bilateral policy objectives. African relations are suggestive of being a conduit to India’s wider international objectives with a focus on improving trade as well as political conditions not only for itself but also developing nations at large employing its economic and political muscle. As part of revisionist approach India has pushed hard for reconfiguration of some of the institutions of global govern ance. African nations have been observed as useful allies in such ventures, as almost all of them have backed India in its bid for permanent seat in UN Security Council. The critics of the subject have highlighted certain specific issues with respect to hidden intent of India, incoherent policies, pitfalls in thought process by way of over reliance on nostalgia of Nehruvian era and over stretched MEA with limited staff to address a huge area and lack of decentralised agency to ensure correct and transparent implementation policies on ground. A relatively ad-hoc system of overseeing various policy issues have led to significant gaps in implementation of identified thematic areas. Though India’s private sector actors drive numerous commerce related agendas, businesses haven’t progressed based on the regional strengths against the backdrop of fragile security conditions. Issues of poor infrastructure, lack of access to finance for small traders and limited logistic support act as impediments that need to be addressed to harness unprecedented opportunities that emerge for Indian companies. The experts also point at pitfalls in public-privat e economic diplomacy approach to Africa largely due to poor coordination, lack of long term vision and enthusiasm to pursue apart from poor market intelligence. Despite provision of Lines of Credit commitments, in consonance with the principle of mutually beneficial development cooperation, engagement on economic affairs also should seek enhanced role and integration of Confederation of Indian industries, with pan-African mechanisms such as NEPAD (The New Partnership for Africa’s Development), AU (African Union) and AfDB (African Development Bank Group). As more and more oil imports are planned from traditional oil producing countries in Africa, security strategies need to be put into place in greater details. Countries like Nigeria which are one amongst the largest oil suppliers to India from Africa face internal as well as external security crisis. While groups like Boko Haram pose threats closer home to various oil producing infrastructure, emerging piracy in the west coast of Africa pose threat at sea. The scrounge of piracy has been addressed in a very limited manner by certain groupings like Economic community of West African States(ECOWAS), India’s capabilities in defence and familiarity with wide ranging security concerns can empower ECOWAS to address insecurity caused by rising piracy on the region. India needs to consider initiating economic diplomatic strategy including maritime defence cooperation and innovative infrastructural financing mechanism aimed to benefit local development in gas and oil producing countrie s in Africa while securing imports that could assist in India’s need for fuel. To sum up the analysis it is felt that India has tremendous potential and value to stimulate development and economic growth across Africa, but it has lacked to articulate a coherent Africa Policy which appeals Africans. In addition, more clarity needs to be brought into the actual agencies dealing with India’s development cooperation to Africa along with a vibrant spokesperson who clarifies any ambiguities which are perceived in daily discourse of business. A greater coordination of Indian private sector with African regional and continental governance frame works rather than bilateral engagements will bring better prospects. [1] Beri R, ‘India’s Africa policy in the post-Cold War era: an assessment’, Strategic Analysis 27: 2, 2003, p 216–32 [2] Noury V, ‘Trade levels grow by 400% in five years’, African Business, Jan. 2012, p. 35. [3] Peter FM Mc Ewwan and Sutcliffe Robert B, ‘The Study of Africa’, p 13. [4] Times of India, 24 May 2011. [5] Agrawal S, Emerging donors in international development assistance: the India case (Ottawa: International Development Research Centre, Partnership and Business Development Division, 2007), p.7 [6] Noury Valerie, ‘Trade levels grow by 400% in five years’, African Business, Jan 2012, Issue 382, p. 35. [7] Corkin L and Naidu S, ‘China and India in Africa: an introduction’, Review of African Political Economy 35: 1,2008, pp. 115–116. [8] Jenkins Edwards, 2006:2007 [9] En.wikipedia.org/wiki/Foreign_relations_of_India#Africa, accessed on 03 Nov 2014. [10] Gupta Ranjit, Special Commentary, India and Gulf: Looking beyond Energy, Islam and the Diaspora, www.ipcs.org, accessed on 03 Nov 2014. [11] Mc Carthy Tom, Assessing China and India’s New Role in Africa, www.e-ir.info /2011/07/26, accessed on 03 Nov 2014 [12] Independent Statistics and Analysis by US Energy Information Administration, www.eia.gov/countries/cab.cfm?fips=in , accessed on 03 Nov 2014 [13] Mc Carthy Tom, Assessing China and India’s New Role in Africa, www.e-ir.info /2011/07/26, accessed on 03 Nov 2014 [14] 50 years of ITEC, www.mea.gov.in / uploads/PublicationDocs/24148_Revised_50yrs_of ITEC_brochure.pdf, accessed on 03 Nov 2014 [15] www.idsa.in, 9 April 2008, accessed on 04 Nov 2014 [16] www.thehindu.com/opinion/op-ed/aid-from-india-coming-to-a-country-near-you/article 3859607.ece , accessed on 04 Nov 2014. [17] www.paulkagame.com/speeches_main_3.php, accessed on 04 Nov 2014 [18] Indian Maritime Doctrine release (release ID: 52223), Indian MoD, 28 August 2009, pib.nic.in /newsite/erelease.aspx?relid=52223, accessed 04 Nov 2014 ; News article titled â€Å"Maritime doctrine makes subtle changes in principles of war†, published in THE HINDU, on 30 Aug 2009, accessed on 04 Nov 2014 www.thehindu.com/todays-paper/tp-national/maritime-doctrine-makes-subtle-changes-in-principle-of-war/article216179.ece