College Is a Waste of Time and Money Essay

1. Affluence- Abundance of money, property and other material goods Permissive- Habitually or characteristically accepting or tolerant of something, as social behavior or linguistic usage, which others might disapprove or forbid Elitist- A person having, thought to have, or professing superior intellect or talent, power, wealth, or membership in the upper echelons of society 2. The time and money put into college are not balanced with the return rate. * Society has developed an unspoken standard that college is the best fit for upcoming adults and for them to achieve the highest education possible. But in fact, most students do not want to be there because they do not want to learn. * â€Å"no more than 25 percent of their students are turned on by classwork†¦up to 30% are in college reluctantly† * College has failed at its expectations and promises to give opportunities to students that most bargained for. * There is already a surplus of adult workers in the economy with more experience than the out-of-college student. Even with a degree in hand, graduated students do not have the upper hand over the experienced adults. * College education fails to ready students for the real because liberal arts is a religion rather than a preparation. * â€Å"A liberal-arts education is supposed to provide you with a value system, a standard, a set of ideas, not a job.† 3. College is an over-rated system that does not give out what a student gives in. 4. Based on the author’s logic, I do agree with the author’s argument. Although she uses a small amount of specific evidence, she reasons well and thoroughly. As society has developed, it has pushed for everyone to obtain the highest education possible, which most students aren’t prepared for nor will they continue with their degree. The world simply cannot go round with a population full of highly educated people.

Intergumentary System

Integumentary System Laszlo Vass, Ed. D. Version 42-0280-00-01 Lab Report Assistant This document is not meant to be a substitute for a formal laboratory report. The Lab Report Assistant is simply a summary of the experiment’s questions, diagrams if needed, and data tables that should be addressed in a formal lab report. The intent is to facilitate students’ writing of lab reports by providing this information in an editable file which can be sent to an instructor. Purpose: What is the purpose of this exercise? The purpose of this exercise in to learn about structures and functions of the skin.Is there any safety concerns associated with this exercise? If so, list what they are and what precautions should be taken. As always take precautions when handling the microscope and slides and always have a clean safe work area. Exercise 1: Structures of the Skin Observations Before beginning, set up a data table similar to this Data Table 1. Fill in the names of the numbered st ructures. Skin Diagram (National Library of Medicine at http://nih. nlm. gov) Data Table 1: Structures of Skin| Item| Name| 1. | Hair shaft | 2. | Arrector pili muscle | 3. Sebaceous gland | 4. | Hair follicle | 5. | Sweat gland | 6. | Pacinian corpuscle | 7. | Subcutis (hypodermis) | 8. | Dermis | 9. | Epidermis | 10. | Sensory nerve ending | 11. | Dermal papilla | 12. | Sweat pore | Questions A. How does the skin tan when exposed to ultraviolet light? When ultraviolet light penetrates skin it begins to break down DNA causing the body to produce melanin. The melanin makes the body become darker or tanner and when the body is darker the more protected it is from the sun and sunburn. B. Describe the functions of the epidermis.The epidermis is the outermost layer that has keratinized squamous epithelium and the dermis. The epidermis has a bunch of different cells which allow it to perform many different functions. The keratinocytes produce keratin that produce fibrous protein that giv es skin protective properties while the melanocytes produce melanin to protect deeper cells from ultraviolet radiation and allows the skin to tan. Merkel cells from sensitive touch receptors on nerve endings and langerhans’ cells are involved in the immune response of the skin. Stratum basale constantly go through cell division to produce million of new skin daily. Stratum spinosum has think bundles of protein and stratum granulosum contain lipids that provide waterproofing for the skin. The stratum lucidum is a layer of flattened keratinocytes are only found in thick skin. Stratum corneum is the outer layer of the epidermis made of squished and flattened layers of dead keratinocytes. C. Describe the functions of the sweat glands. Sweat glands are controlled by sympathetic nervous system and regulate body temperature.When the body becomes to hot they secrete water to the skin surface and the heat is removed by evaporation. D. Compare the structure of the epidermis to that of the dermis. The epidermis consists of several different types of cells while the dermis canonists of dense, irregular connective tissue. E. Fill in the following table by either inserting the name of the structure/cell or by giving its function(s): Structure/Cell| Function(s)| melanocytes| Makes a pigment for tanning| Langerhans cells| Small and involved in the immune response| Merkel cells | Found on nerve endings|Stratum lucidum| Provides protection, thick found of palms a soles makes skin waterproof | Reticular layer | The blood supply here provides radiational cooling for the body| Exercise 2: Microscopic Structure of the Skin Observations Sketch and label your keratinized stratified squamous epithelium slide in the space below. Be sure to label all of the structures in the epidermis and dermis you were able to find: Questions A. Compare your slide to the photomicrograph example in the lab Procedure. How are they the same and how are they different?Propose a reason why you would see several differences between different slides of skin. B. What is keratin? Is fibrous protein that gives the skin its protective properties? C. Why is skin keratinized? Keratinized cells give skin a tough protective barrier. After a cell is born it begins to make protein called keratin that they store inside them. As the cells grow they build up with this protein until their so full they die forming a tough layer of packets of keratin. Exercise 3: Clinical Conditions of the Skin Questions A. What are the three types of skin cancer?Squamous cell carcinoma, basal cell carcinoma, and melanoma B. Which type of skin cancer is easily treatable? Basal cell carcinoma C. Explain why melanoma is so dangerous. Melanoma can spread to other areas of the body. D. What factors can cause acne? Acne is caused when sebum isn’t able to pass through the hair follicle. This causes cells from the lining of the follicle to shed to fast and clump together clogging up the follicle’s openi ng so sebum cannot get through. E. What is a common myth about the cause of acne?Eating chocolate, greasy food or dirty skin F. What are some treatments for acne? Dermatologists use a medication that reduces clumps of cells in the follicles, oil production, bacteria, and inflammation. Depending on the case of the acne the doctor may prescribe a topical medication or an oral medication. G. Describe the signs of first, second and third degree burns. First- affects only the outer layer, epidermis. Second- damage the epidermis and the dermis Third- involve damage or complete destruction to the fullest depth of the skin and underlying tissue. H. What are the principle effects of aging on the skin?

Artificial Heart Research: an Historical Perspective

Artificial Heart Research: An Historical Perspective (Rayan R. Joshi Third-year paper Food and Drug Law Advisor: Peter Barton Hutt) Good reasons for artificial hearts: * There are not enough heart donors (â€Å"Each year, about 30,000patients are deemed eligible candidates for heart transplantation. However, only a small fraction of this group, numbering about 2000, actually winds up receiving donor hearts. Given the current figures, it is unlikely that the supply of donor hearts will increase enough to render all transplantation a viable means of combating end-stage heart disease on a macro level. ) Public opinions * Dr. Cooley believed that focusing the public's attention on the technology's future potential would have a positive effect on the field of research as a whole.* However, Cooley had grossly miscalculated in the realm of public opinion * Confronted with the gruesome images of a suffering human patient, society at large began to regard the entire held of artificial heart technology as â€Å"more monstrous than miraculous,† and research efforts in this area were quelled to a substantial degree. Nevertheless, given the state of the economy in the 80’s, and the aversion towards this area of research held by many members of society, the Jarvik team ( a team working on designing a artificial heart) was strapped for much needed funding. * The extremely large amount of media coverage provided to the Clark operation proved to be a double-edged sword for researchers in this area.While the press' love affair with Clark's story initially focused public attention on the amazing potential benefits of heart research, the vivid and disturbing images of Clark's suffering after his operation shifted public opinion squarely in the opposite direction. Commentators who had once championed the efforts of ambitious heart surgeons now openly questioned whether it was appropriate for human physicians to be â€Å"playing God† in this area. If society we re to somehow lose interest in the potential benefits of MCSS technology, then researchers in this area would lose access to the public and private funding that they desperately need in order to ensure continued advancement. * The scientific import of the heart, combined with its cultural significance, renders heart research a particularly sensitive area in which to pursue the betterment of society. Nevertheless, pioneers with the courage to plow forward in this field over the last half century have saved countless lives as a result of their unwavering efforts.One thing, however, remains clear. If society is ever to reap the full rewards offered by MCSS technology, it will have to recalibrate its attitudes regarding the field in a more open-minded direction, one that hinges less on short term success, and more on long-term progress. Heroic patients like Barney Clark have accepted this challenge. Time will tell if society at large is capable of doing the same. There are two main bran ches of heart technology. Partial Artificial hearts: Partial devices supplement patients' natural heart function, assisting those patients whose organs, while somewhat viable, are incapable of functioning adequately on their own Total artificial hearts: ( we should focus on this !! ) * Total artificial hearts (TAH), on the other hand, are devices that actually replace patients' natural hearts. Such devices are designed for situations in which natural organs are so damaged that even supplementation via a partial device isn't enough to produce sufficient circulatory function.Collectively, partial and total artificial heart devices are classified as mechanical circulatory support systems (MCSS). 3 ways these technologies help 1 First, devices can serve asâ€Å"bridges† to transplant, allowing patients' conditions to stabilize while they await the delivery of donorhearts. 2 Second, partial devices can be used, either temporarily or permanently, to allow a patient's natural heart to rest and recover following periods of distress. 3 Finally, TAH devices can potentially serve as permanent replacements for those patients whose natural hearts are too damaged to permit recovery through alternative means.Replacement TAH devices represent the cutting edge of technology in this field. Rules and regulations * Artificial heart technology is subject to FDA regulation under the Federal Food, Drug, and Cosmetic Act of 1938 (Act†). * The Medical Device Amendments of 1976 (Amendments†) to the Act establish three regula- * tory classes for medical devices, ased on the degree of control necessary to assure that the various types of * devices are safe and e ective. † * Artificial heart devices are considered part of Class III, and are thus subject to the heaviest possible regulation. A Class III device is defied in the Amendments as one that supports or sustains human life or is of substantial importance in preventing impairment of human health or presents a potential, unreasonable risk of illness or injury. * Class III medical devices may not be marketed by firms until the FDA has approved a pre-market approval (PMA) application under Section 515 of the Act. Dr. Michael E. DeBakey- a prominent surgeon at the Baylor College of Medicine in Houston * His research interests led him to form a team whose purpose was to explore the feasibility of building an artificial device that could replace the natural human heart.The history of total artificial hearts 60’s * The development of total artificial heart technology can be traced to the early 1960's. * Indeed, by 1965, * a federal artificial heart program had been created, and its enabling legislation asserted that the program's * The visions of Cooley and Liotta came to fruition on April 4, 1969. That day, Cooley implanted an artificial heart into the chest cavity of 47 year old Haskell Karp of Skokie, Illinois, a printing estimator with a long history of heart related problems. Karp died from an infection and related complications shortly after having the operation* In response to the relative failure of the Karp experiment, stunted for more than a decade. 70’s * by 1971, Dr. DeBakey himself became convinced that existing total artificial heart technology could not overcome the hurdles intrinsic within the human body. DeBakey was primarily concerned with two major problems. * First, scientists had to develop a power source that could be totally implantable, in order to reduce the risk of infection that was created by tethering artificial devices to external sources through skin penetrating pumps. Second, researchers had to discover and refine a non-clotting surface for the parts of the pump that actually came into contact with blood. Otherwise, the associated risk of stroke in patients would remain too high to warrant use of the technology. DeBakey ultimately determined that his time was better spent pursuing alternative avenues of heart research, asser ting â€Å"I decided to stop putting my energies and efforts into a total artificial heart. † 80’s *In the early 1980's a new figure named Dr. Robert Jarvik embarked on the quest for a well-functioning total artificial heart. The Jarvik-7 ( his design of a artificial heart) was a total heart that completely replaced the natural organ within the body's chest cavity * On December 2, 1982, a patient, Barney Clark received a Jarvik-7 implant in Salt Lake City. * Barney Clark was able to survive 112 days with the device however it came with a lot of complications. His blood kept clotting as it went through the heart which caused several strokes. * The artificial heart also had technological malfunctioning * The Jarvik-7 was implanted in a second patient, 53 year-old William Schroeder, at the Humana Heart Institute in Louisville, Kentucky. Schroeder actually survived on the device for 18 months.* Like Clark, however, Schroeder was plagued by multiple strokes, infections, and hemorrhages throughout the course of his treatment. * When asked directly for his opinion about the Jarvik-7, Schroeder made a horrible gesture, like he'd like to kill it or strangle it. * After Schroeder's death, public sentiment against artificial heart research reached alarming levels. * In response, FDA effectively revoked the IDE granted to the Jarvik-7 program. * Most researchers now became convinced, as DeBakey had a decade earlier, that the quest for an effective total rtificial heart was simply a fruitless endeavor. * . As a result of these forces, researchers and surgeons now began to bolster their efforts at finding alternative ways to combat heart disease 90’s * As doctors becamemore adept at using anticoagulant drugs to reduce the risk of stroke associated with these transplants, the success rate of the device continued to improve. * Indeed, since 1993, 147 patients have been supported by Jarvik's original artificial heart, and 88 of these patients ultimately su rvived till their scheduled organ transplantsThe non-pulsatile LVAD * Dr. Richard Wampler, began to develop a non-pulsatile LVAD. Wampler was convinced that the body might not necessarily need a pulse to function effectively. This belief in â€Å"continuous flow† pumps was rooted in his observations of how blood actually functions within the human body. * After 1988. Indeed, over 100 patients who could not utilize standard LVAD systems were saved by this technology. Notes mechanical circulatory support systems (MCSS) Total artificial hearts (TAH) the American Heart AssociationLVAD = left ventricular assist device â€Å"bridge to recovery. â€Å"= using partial artificial hearts you can help the patient stay alive while waiting for a donor. And in some cases an LVAD device can even â€Å"cure† the heart so that it can beat on its own, and does not need a donor. AbioCor Implantable Replacement Heart: This device is a fully implantable prosthetic system, intended as a d estination therapy for patients whose natural hearts are severely damaged due to conditions involving coronary heart disease or some form of congestive end-stage heart failure

Stress Implications for College Students Research Paper

Stress Implications for College Students - Research Paper Example However, this generation has adopted certain ineffective and unconstructive methods to overcome stress and consequently stays more troubled (Bland et al. 362). As a result of majority of students being troubled and stressed out, it raises concern as to what underlying root sources are involved and what solutions shall work best to combat these causes. I believe that the college students of this generation suffer largely from stress because of financial issues, transitional difficulties and technicalities of burdensome study courses. Therefore, after conducting comprehensive research and studying various pieces of literature, this paper has been prepared to identify and analyze most common and major reasons that have exposed college students to stress and anxiety. Masses around the globe have suffered from recessionary downfall and inflationary pressures. Inflation has caused an increase in costs of living and competition, resulting in stressful circumstances for students joining coll ege. The added expenditure of tuition fees, purchase of books and other supplementary necessities covers a substantial proportion of any household income. Consequently, families suffer from liquidity difficulties and students get tensed about their financial burdens being borne by their caretakers. Moreover, if students approach the college trust for financial aid, then it creates a stressful burden of liability that must be eventually repaid and settled by them. In fact, â€Å"62% of students say that over the past three months financial worries have had some/a lot of impact on the stress the experience in their daily life† (MtvU 2). Students, who are already facing increased expectations and demands for academic performances from their families and mentors, also have to go through additional stressful factors pertaining to college studies, including regular tuition fees, study material expenses, hostel or alternate residing arrangements, traveling and entertainment expenses and other miscellaneous outflows that come part and parcel with college life (May & Stephen 264).  

Coursework Management (Discussion Questions) Example | Topics and Well Written Essays - 750 words

Management (Discussion Questions) - Coursework Example The Mexican American Residents in Texas became U.S citizens following the precedent in Hernandez case. They were not initially treated as equals of Anglo citizens. 4. The Anglos, who settled in Texas, held stereotypes about the Mexican-Americans. They called them ‘wetback,' ‘greasers,' and ‘pepper belly.' They viewed them as being illegal with prejudices emanating from racial backgrounds. 5. The segregation of the Mexican Americans differed with that of the African-Americans in the African Americans were recognized by the law while the Mexican Americans were not. African Americans could, therefore, be represented on a jury while Mexican Americans could not. 6. About 750,000 Mexican American men served in the World War II. Their experience in the war changes the Mexican American view of themselves in that they saw themselves as people with a unique identity. As a result, they developed patriotism through which they fought for their rights. 7. The scandal concerning Private Felix Longoria pertains to the discovery of the remains of his body in Philippines where he had been killed on a volunteer mission during the World War II. The director of the funeral home where the remains of Felix was to be buried refused access to the chapel because previous disturbances by the Mexican Americans. That symbolized racial segregation. The controversy was ended through a committee of the members of Texas House of Representatives that investigated the matter.

AIG Insurance Essay Example | Topics and Well Written Essays - 750 words - 11

AIG Insurance - Essay Example According to the paper despite the institutional void, the American Insurance Group was the first to gain a license to operate insurance products. Though the company had to endure seventeen long years in the wait, the breakthrough came when AIG had already owned twelve subsidiaries in China allowing it to apply for an insurance license. The group had access to the Chinese market through its subsidiaries and by getting licenses to sell various insurance products in multiple cities, AUIG was able to break into the institutional void of the Chinese market. The manner in which AIG tailored its products to suit the Chinese market was another way in which the company ensured that its preciously procured licenses were not wasted away. The institutional void in the Chinese market was filled not only by AIG but later on by the Italian insurance giant too. However, AIG had the benefit of being the first in the market. The framework developed by Khanna regarding strategic policies and planning of an insurance company provides set guidelines that can be adopted by firms entering newer markets. The emphasis of companies should be to develop global policies and strategic standards in homogenous markets. However, the Chinese market was not comparable to any previous market that AIG had operated in – the key was to use Khanna’s framework and adopt the insurance products in order to suit the Chinese market. This study outlines that AIG transformed its products to suit the Chinese markets by introducing new marketing techniques and promoting its insurance products in a way that appealed to the Chinese population. It is obvious that there was no lying on part of AIG, however, the emphasis of the marketing program was to project the life insurance policies as savings schemes so that the Chinese market would pay attention to the products. The FSA’s developed by AIG in the markets provided it the advantage that it needed in the Chinese market.

Healing Hospitals Essay Example | Topics and Well Written Essays - 1000 words

Healing Hospitals - Essay Example Hence this suggests that those medical institutions which follow the concept of the healing hospital will be tagged on the principle of Golden Thread that is a symbol of faith, conviction and reliance upon the Almighty (Chapman & Chapman, 2004).   It is a common phenomenon for every medical center which aims to promote the model of a healing hospital all over the globe must provide and calm, peaceful and a quite internal environment to the patients. This would let them feel tranquility and harmony and assist in their fast recovery. Harmonious environment plays a great role for the sufferer as most part of their recovery takes place when their body is in sleep or hibernating peacefully. Thus it suggests the fact that not only proper medicines, staff, latest technologies and equipments make a good hospital but it’s the factor of concern, peace and tranquility that make up the hospital a healing one. Components of a Healing Hospital There are three basic key components of a hea ling hospital which are as follows: The assimilation of work layout and advancement It is one of the most important components of the healing hospital and plays a vital role in the scenario. ... By the adoption of such an obliging policy patients would feel loved, cared and concerned by the doctors and other hospital staff members which would lend a side hand to them for their fast recovery. A remedial substantial environment This component considers the fact that not only the doctors are responsible for the care and treatment of the patients but also it is essential for the other staff members of the hospital to connect with their families and relatives as caregivers. It has been proven widely that if the hospitals manage to establish an environment with compassion, love, care, concern, adore, empathy etc then the patients would depict a faster recovery from their pain, stress and illness. Hence it would also lead the family members of the patients to support the patient in a healthy and lovable environment where they are assured that their loved ones would be treated as home (Gaut et al, 1994). A background of fundamental affectionate heeds It is basically establishment of a radical loving care environment and this philosophy was initially proposed by Erie Chapman long time ago. This accounts for the fact that such a culture must be enforced in the healing hospital in which each staff member must be known as in why they have become part of this sacred industry and what their ultimate objectives in serving the humanity are. It endorses the recovery of patients by means of a holistic loom that not only caters to the patients need but also takes care of their divine and poignant needs as well. The challenges of creating a healing environment in light of the barriers and complexities of the hospital environment Although the establishment of a healing hospital seems an easy task however it is not a piece of cake. It requires a long tenure and excessive

Read instruction below; Research Paper Example | Topics and Well Written Essays - 750 words

Read instruction below; - Research Paper Example Starbucks has the most recognizable brand in coffee industry business and that the experience they provide to their customers is irreplaceable makes the main strengths harnessed to be successful (Lussier, 131). The other strengths are sound, visionary, and capable leadership of Howard Shultz leading Starbucks to greater success and growth from its beginning to be a global leading it is currently. Owing to the Starbucks experience, the company has loyal customers who are willing to pay premium prices for the company’s coffee increasing the profit margins and revenues for the firm. Starbucks also has the soundest financial statements in the speciality coffee industry and is a respected employer having been named among Fortune Top 100 Companies to work for due to the offer of medical insurance, fair remuneration, as well as good working conditions. Starbucks has developed a strong ethical culture and values, and this is well depicted in the mission statement. Other strengths are ability to developing and innovating new products, and customers are guaranteed of getting high quality taste at Starbucks (Lussier, 131). The main weakness at Starbucks is the inability to control the prices of coffee globally. Starbuck’s businesses are affected by fluctuation in coffee prices that occurs due to changes in global demand and supply, as well as weather conditions and climate affecting the profits and revenues of Starbucks. Starbucks cannot be able to change the prices of coffee hence is the main weakness at Starbucks. The second weakness is pricing of Starbucks coffee in Chin with the belief that it is highly priced loosing the market share in the region to McCafe. The other weakness has been a loss in the customer experience from the high rate of expansion experienced at Starbucks. Negative publicity on the health implications of consuming coffee, high fat content, and high calories in the products offered

Social Psy Essay Example | Topics and Well Written Essays - 1000 words

Social Psy - Essay Example The author will discuss a personal experience, the use by peers of alcohol and later drugs, that resulted in the author breaking free of conformist pressures and emerging stronger and more independent in the author’s social world. Too often, it would seem, individuals progress through life without careful reflection. People would appear to take individual changes for granted while simultaneously remaining oblivious to the events that contribute to or otherwise cause those changes. People sometimes claim feelings of powerlessness and impotence when living their lives, they feel unable to truly control their destiny, and life in many ways begins to feel somewhat random and meaningless. This personal position paper will argue, however, that life is not so random or unpredictable. More specifically, this paper will suggest that individual self-reflection, as it pertains to an individual’s interaction with different groups in the social world, can not only explain to some extant how different behaviors and performances become manifest but also how individuals may begin to control their behavior and destiny to a greater degree. As an initial matter, it is important to note that social psychology is concerned with how individuals fit into or otherwise interact with a social world. The social world concept, however is not monolithic; quite the contrary there are several social spheres, of different social worlds in which an individual does and may interact. The questions posed often relate to how an individual engages in self-perception, how individuals are influenced, as an individual relates and interacts with others in different social circumstances and settings. Generally speaking, therefore, a particular social world may be considered conceptually as the relationship and interaction of individual minds, particular

Social Policy and Its Changes due to Economic and Historical Factors Assignment

Social Policy and Its Changes due to Economic and Historical Factors - Assignment Example The overall requirements for the older people may change considering the fact that they have higher human needs. Since the social policy has more to do with how the policies and procedures are designed to improve the life of the individuals and how their needs are fulfilled therefore older people occupy a relatively special position in the overall process of social policymaking. However, despite such significance, social policy and provision for the old people have kept on changing due to different factors. Two of the most important factors are the historical factors and the economic factors which relatively reshaped the way social policy has been designed over the period of time. As discussed above, the social policy refers to the guidelines, principles, procedures as well as legislation required to be made to make living as conducive. This also, therefore, requires that the rules and regulations should be prepared in such a manner which can foster and encourage such conducive living for the citizens of the country. This, therefore, has to be related to how the government responds to the different challenges and make policy and provision to ensure as to how the overall welfare of the persons can be improved. Governments including of UK and Ireland every year budget and spend money on the social policy spending which requires the government to actually spend the money on the welfare of the citizens in a relatively different manner. It is important to understand that the given the political and economic conditions of a country, the overall spending for the purpose of social policy keep on changing and there are countries which even spend one-third of their total GDP on the social policy spending. Such emphasis on the spending for the social policy purposes, therefore, gives it one of the most important policy parts of the overall policy of the government.  

Customer Care Article Example | Topics and Well Written Essays - 1500 words

Customer Care - Article Example Management must always ensure that staff members are motivated. The empowerment of employees has been delineated from different perspectives, but generally means the process of making it possible for the employees to have input and control over their roles and responsibilities. It is also the ability of sharing ideas, suggestions about the daily running of the organization. Research proves that employees, who are empowered, are often empowered, conscientious and committed to the performance of the organization. They usually care about the future missions, vision, objectives and long term goals of the firm. The discussion in this paper will focus on the importance of empowering customer service employees. The customer service management is one of the central points that dictate the performance of the company. A repeated business is only possible if the customers are treated well and given reason to do business with the organization again. Some of the importance of empowering customer service employees includes; It is proved that when customer service employees are satisfied, it is likely that they will embrace their job. The satisfaction of the employees will enhance the performance of the staff members, ensure their retention and adopt superb customer skills when handling organizations clients. Satisfied employees will feel that they are part of the organization and that they are important to the daily operations of the company. Satisfactions of the employees will make them feel comfortable and confident in their daily routines. The sense of pride when associating with the organization can be easily sensed. Given that customer service employees are the face of the company, the impression they give to the customers will impact customer-company relationship. Poor services from the team will drive the customers away. Therefore a high retention

Gmos and Organic Food Essay Example for Free

Gmos and Organic Food Essay Why spend more money on organic food? Why are GMO products lasting longer? These are commonly asked questions which will be explained. By the definition of GMO products, they encompass alimentary products grown from seeds that have been genetically altered. Organic products are those that are grown under the traditional way, without any intervention of Bio-engineering, and also without the usage of chemicals, known as pesticides. The Author, Michael Pollan in both, â€Å"Omnivore’s Dilemma† and â€Å"In Defense of Food† makes an extensive and detailed analyzation of the production of food now days. The big corporations (farms) are now known as manufacturing factories; where practically all the elements of their production process are strictly controlled. This highly technological system reduces the nutritional value of their products and in many cases their flavor as well, but it guarantees high volumes and longer shelf life of the products. An example of a food that would be known as a GMO would be tomatoes, which would be less healthy and again it wouldn’t taste the same as an organic one. Organic products are grown by small farmers according to old farming techniques. These products do not need the addition of micronutrients like GMOs; they maintain all the nutritional values and the original taste. Unfortunately, small farmers can not satisfy the demand that the market needs, let alone, the prices are higher. For example, if you were to sell organic tomatoes, you would have to need to sell them locally. If a company such as organic valley were to be ship organic products from California to New York, with them having shorter expiration date, they would end up going bad. It would be hard for everyone to have the budget to buy and eat organic food; even expensive restaurants don’t use organic food. So, what is better? Feeding a large growing population with GMO products; or to go back to square one, and run the risk of not having enough supply and have the prices skyrocket. At the end of the day, people will eat more GMO food for not everyone has money to buy organic food.

Child Protection Enquiry UK | Policy and History

Child Protection Enquiry UK | Policy and History The purpose of the essay is to discuss and explain the child protection enquiry, its process, purpose legislation and critical issues. An accompanying leaflet has been designed to highlight the Child Protection enquiry taking into account age, diversity, oppression and anti-discriminatory practices incorporated. The age group focused on the leaflet is Young Persons aged 11-19. In addition, a commentary to justify the rationale for the design, content and structure will be carried out. Finally, an evaluation of how the issues discussed in the leaflet and essay have contributed to learning and relevance to future practice. The focus of the new millennium according to DfES (2005) is safeguarding and promoting the welfare of the child which by definition is the process of protecting children from abuse or neglect, preventing impairment of their health and development, and ensuring they are growing up in circumstances consistent with the provision of safe and effective care which is undertaken so as to enable children to have optimum life chances and enter adulthood successfully (DfES 2005a, p11). Wilson and James (2007) citing Working together to safeguard children (HM Government 2005a p 19 Para. 1.19) define child protection as the activity which is undertaken to protect specific children who are suffering or at risk of suffering significant harm. In her view Gil (1970) considers that Child abuse consists of anything which individuals, institutions or processes do or fail to do which directly harms children or damages their prospects of safe, healthy development into adulthood. This definition was adapted by the National Commission of Inquiry into the Prevention of Child Abuse. Bentovim (1998) sustain that there is strong association between significant harm and insecure attachments, citing Carlson et al (1989) who found out that more than 80% of significantly harmed infants had disorganised attachments compared to less than 20% in a non maltreated comparison group. Jones et al 1999 further supports that all disturbances in case of child maltreatment are linked to the relationship with parents own experiences. Attachment difficulties are associated with parental childhood experiences of Abuse and Deprivation, Parental Personality Difficulties as well as Functional Illnesses such as Depression. It is important to identify parent child attachment difficulties to make sound intervention where there is evidence in literature that persisting Parent/ Child attachment combined with evidence of psychological maltreatment on follow up is a consistent finding. Additionally Wilczynski (1997) cited in Wilson and James (2007) ascertain that the most consequence of child maltreatment is death which indicates the necessity for early intervention to prevent the deaths of young children. It was estimated in 2003 that in the UK that the occurance of maltreatment leading to death is nine per 1 million children and as high as 24 per 1 million in USA. UNICEF (2003). The main perpetrators in most cases it was revealed were biological parents and the most affected age group was children under five years particularly babies under one year, (Brown and Lynch (1995), UNICEF (2003). This suggested that there is need to predict , prevent and protect children from birth, Axford and Bullock (2005) and the Assessment of children and families (DOH et al 2000, Brown et al 2006). As a necessity to prevent deaths and severe consequences intervention should take into account the family structure and normally comes in after a fatal consequence or maltreatment has alr eady occurred. Protective factors need to be put in place as a deterent to raising family standards, resilience to social and environmental stress Brown and Herbert (1997). Essentially it is through assessment that the needs of such children are identified that the needs of such children are identified as the starting point of intervention. Assessment as defined by Wilson and James (2007) is identifying the needs of children at risk of encountering significant harm so as to put in place safeguarding measures that will promote their welfare and wellbeing. Reder et al (1993), Munro (1999) and Buckley (2003) cited in Howarth (2005b) observed that in cases of maltreatment effective assessment is essential as the basis to inform meaningful planning/ intervention which will promote better outcomes for children and families. This depends on professional knowledge, skills and ability to engage in multi-disciplinary team work, the child and the family to identify family needs. Additionally practitioners need to be aware of challenges and factors that can distort assessment such as perception of abuse, their values and beliefs and the application of theory to pra ctice. Parton (1991) cited in Scourfield (2003) argue that one of the most contested social issue is child protection. The main reason being that the state is seen to intervene with families so as to protect vulnerable children, at the same time giving respect to the family unit structure. This has raised public scrutiny with concerns that the state has not intervened enough to protect children or social workers have been accused to negligent and not having identified significant harm. On the other hand they are accused to have intervened too much and unnecessarily impacting on families. Typical examples highlighting the controversy are (the inquiries into the deaths of Jasmine Beckford, Kimberly carlile, Ricky Nearve, Victoria Climbe and baby P. On the other hand too much intervention was cited in child abuse investigations in Cleveland 1987, Pooch dale and Orkney) just to name a few Scourfield (2003). These contradictions and dilemmas are believed to originate from the increasing recognition that child abuse is socially constructed. This is dependent on different commentators perspectives of abuse and harm. Obviously this perspective will raise the argument whether the intervention to be carried is supportive or authoritative and reactive. Munro (2002) believes abuse is ways of treating a child in a harmful and morally wrong manner that impacts on their socio-psycho wellbeing. In trying to define abuse variations from different socio-economic and cultural backgrounds/values is to be considered. However article 19 of the 1989 United Nations Convention on the Rights of the Child (UNCRC) agreed on an International formulation to condemn child abuse. This defined abuse as all forms of physical or mental violence, injury or abuse, neglect or negligent treatment, maltreatment or exploitation including sexual abuse. Furthermore it is important to acknowledge the British national commissi on of inquiry into the prevention of child abuse which broadened its scope outside the family. They hold that child abuse consists of anything which individuals, institutions, or processes to or fail to do which directly or indirectly harms children or damages their prospects of safe and healthy development into adulthood National Commission, (1996:2). All the above definitions mention harm as a result of actions, omissions or exploitation. As mentioned earlier individual societies in conjunction with their legal systems supply more detailed definitions and guidelines. The UK society through the department of health and social security 1988 categorised the following specifications as guidelines and standards. These are physical abuse, emotional abuse, sexual abuse and neglect. Explain these or not see word count? Munro (2002). The Children Act (1989) was set up as a measure to encourage partnership working between families and the state. It also encouraged the provision of family support to reduce the risk of severe consequences resulting in coercive state intervention. Prevention was expanded from simply to prevent children coming into care but to focus on providing services that helped and promoted families to up bring their children within their families Munro (2007). According to the Act family preservation is paramount and fundamental as well as partnership working with parents. Nevertheless it is not always the case that some parents who are neglectful and abusive sometimes see or have no capacity to constructively and systematically engage with social service intervention which try to help them. Some it is suggested become hostile, aggressive and abusive clearly not entertaining any advise or any interference with their family life. With such a contest going on the child will continue to be affected and further significant harm may occur during this contest. As said earlier social workers need to be aware of such parents and situations and act accordingly in this case in the best interest of the child who will be the focal point Bell and Wilson (2003). In the early 1990s a number of cases involving organised and institutional abuse were revealed which were outside the family context. The most prominent one being the Orkney incident in which children were taken into care following allegations of organised sexual abuse. The court hearing dismissed the case after five weeks leading the children to be returned home. Media coverage concluded injustice on caring parents fighting injustice inflicted by intolerant inconsistent social workers. This enquiry led to the selling up of regulations and procedures for dealing with organised abuse Bell (1999). Messages from research (1995) published and summarised the functioning of the child welfare system. It revealed cumulative effect of adverse publicity and policy changes that pinpointed professionals especially social workers as prioritising abuse concerns over other types of referrals. There was a division between child protection and child abuse and revealed an emphasis on tackling immediat e risks to the child and ignoring the wider social and psychological needs. There was a call to refocus of child protection in a holistic child in need context not just protection from abuse. Messages from Research (1995). (Bell 1999, Thoburn, Lewis and Shemmings 1995) revealed that the emotional impact of investigation on families whether guilty or innocent is traumatic and intrusive. Professionals need to be aware of this impact on families and seek to minimise it. The death of Victoria Climbe was a shocking event that revealed abuse and inconsistencies within professionals who had seen her. A public inquiry led by Lord Lamming (2003) also revealed that the voice of the child was ignored despite so many professionals being involved. Laming Report (2003). Gough (1997) assets that research revealed that not too often children are ignored as a active participants either as a source of knowledge/ information about their family situation/ circumstances or a reliable source of opinion on what needs to be done. Laming Report (2003). Contrary to this shortcoming one of the Childrens Act 1989 is to respect the childrens views and wishes about key decisions affecting their lives. The Act guarantees that childrens wishes and feelings must be taken into account in any matter that affects or involve them be it in court hearings, reviews and conferences. This also applies to Looked after children by local authorities, they have greater rights and voice on th e quality and care they receive. Coby (2006) The death of Victoria Climbe prompted the safeguarding agenda and policy Every Child Matters: Change for the Children Treasury (2003). The agenda proposed a radical transformation of both the organisation and culture of practice from a reactive service for a few to a more pro-active approach where all childrens needs are identified addressed at grass roots level before escalating to major serious problems. Innovative ideas such as the integrated childrens services would be essential tools. The every child matters agenda highlighted 5 outcomes for children i.e. are healthy, staying safe, enjoy contribution, and achieve economic wellbeing. Every Child Matters (2003). Working together to safeguard children DFES (2006b) highlighted the new arrangements to be implemented by different agencies to promote inter-agency co-operation to safeguarding and respond to the concerns that a child might be at risk of significant harm. The child protection policy and practice begins when a concern has been raised that a child may be at risk of abuse through neglect, physical, emotional, sexual harm. A number of sources could raise such a concern ranging from NSPCC, police, social services, a parent, neighbours, health worker, or nurse or teacher from school/nursery. It might be the case that some concerns are made anonymously or malicious. At times some anonymous concerns turn out to be true and this call that they are treated seriously. As soon as any concern is raised Social services will act as soon as possible Buckley (2003). The first response at the early stage is to make enquiries about the family concerned with other agencies linked to it such as schools, hospitals, GP, nursery or health services by carrying out an initial assessment following LSCB procedures. Initial assessment as defined by the Framework for the Assessment of Children in need and their families (DH 2000) is a brief assessment of each chil d referred to social services with a request for services to be provided. If the core assessment concludes that a child is in need of further support they will be classified as a child in need as defined by Section 17 of the Childrens Act 1989. The section mentions that it is the duty of the local authority to provide services to safeguard and promote the childs welfare and needs. If no harm is suffered the case is closed. If need be that the child needs to be seen by a S/W or police this is usually done within 24 hours after the allegation has been reported. When these initial enquiries are complete a decision is made as to whether there is need to pursue the matter or no further action required it is the duty of social workers to inform parents of any developments as soon as possible. Information such as the source of the allegation will be given to parents as long as it does not put the investigation into jeopardy or put anyone at risk. If for instance the allegation came from an institutional source like nursery, hospital or school it will be revealed . Members of the public names or identities are not revealed. During questioning or inquiries if it becomes necessary to ask a child/ the victim parents may be allowed to be present or may not be allowed if they are the perpetrators mainly or for any other reason. Depending on circumstances, Social Worker will work with both parents and child but in the best interest of the child. This is the time when parents can explain their views, concerns and what actions to be taken to address the concerns. Parents are also interviewed with their language if they dont speak English an interpreter will be available by social worker. If the need be the child may be seen by a doctor or paediatrician to ascertain what happened, treat the injuries or to seek clarity on injuries. Parents need to give permission for this if they refuse a court order will be sought for permission to have a medical examination. If a parent does not agree with proceedings they may seek legal advice. If a child is old enough to understand they may agree to be examined themselves if it is proved that they are old enough to, make such a judgement. All this is dependent on how well a child understands what is happening Merrick (1996). The medical examination is dependent on the nature of alleged abuse. It is important for the doctor to have a full understanding of the childs health and development. The examination forms part of the enquiry process as it is a way of gathering evidence and preserve any evidence to understand the abuse. The examination will reassure the parent and child that they will recover. The child may have preferences of who conducts the exam and who should be present. Social worker will also accompany or be present. If the results of the examination convince social workers that injuries were accidental not abuse no further action is taken. If the results conclude that there is likely to be significant harm or abuse further enquiries will be carried out. This may also involve enquiries regarding other family members so as to ensure that no harm has happened to them. A video recording interview may follow conducted by Social Worker and police if maybe they want to sue. This will also help if pol ice want to pursue criminal proceedings. This is done by trained officers who specialise in these procedures. It may be the case that the police need to remove the child from parents care to safeguard their protection and welfare. All necessary arrangements will be made in line with the intention of keeping the child within their family. If necessary Social Services may call a child protection conference if there is evidence of significant harm. Parents are invited and all the professionals involved with the child as well. These include social workers, police officers, doctors and other people interested in the welfare of the child. If the child is classified as having suffered or at risk of significant harm a strategy discussion meeting is pursued. A meeting consisting of all professionals from relevant agencies will meet to decide whether to proceed with a section 47 inquiry under the Children Act 1989. Under section 47 the Local Authority will investigate the case of a child in their area. Serious case review is conducted by the Local Safeguarding Children Board when a child dies or seriously injured, abused or neglected. This is an inter agency forum set up by Local Authorities to define and agree how best professional groups co-operate to safeguard children and also to ensure good outcomes for children are in place and achieved . Working Together to Safeguard Children Guidance (2010) Buckley (2003) identifies Child protection conference as a meeting arranged by social services if people are worried about a childs Safety. Child Protection Conference is carried out to decide whether a child is still at risk of continuous significant harm. The purpose of child protection conference is to bring under one roof all concerned and interested parties who are key to the welfare /wellbeing of the child. These include care professionals, medical professionals, lawyers, police, teachers and nursery practitioners. An independent child protection advisor chairs the conference and will meet the parents before the conference to explain all procedures and objectives of the meeting. Previously it was observed before the conference was introduced that the Child Protection system was regarded as inefficient and lacking since all stakeholders were not united and did not communicate effectively amongst themselves exposing a child to further harm and creating opportunity for further har m by not addressing potential risks or communicating concerns. All professionals who attend the conference are required to evaluate the welfare of the child, determine if there is potential danger and decide whether to put the child on the protection register. Care professionals will also decide course of action, such as upholding legal proceedings or criminal investigation if a decision to put the child on the protection register. A child protection plan is designed to control future proceedings regarding safety/welfare of child. The plan will highlight roles within the inter agency and enhance productive communication between individual agencies. After three months a further meeting is held to review and monitor progress. Every six months review child protection conferences are carried out. If any concerns or any of the elements in the plan are not working well they can be altered. There will also be discussion on every conference whether your child needs to remain on the Child Pr otection register. Access to file, confidentiality and complaints procedures will be adhered to. A number of legislation is relevant to the Child Protection agenda. The Childrens Act 1989 believes Children are generally best looked after within the family, with both parents playing a full and without resorting to legal proceedings. The welfare of the child is significant and their wishes should be taken into account seriously. The act seeks where possible to protect children within their families. A number of provisions were designed to improve the family and home environment to protect children. Inter communication between multi disciplinary agencies was encouraged to indentify/ address risks to a child/children so as to safeguard and protect children. Sections 17. 27 and 47 (cite) the Childrens Act 2004 highlights the need for increased accountability, integrated planning, multi- disciplinary planning and delivery of services and above all providing for children with special needs. The Human Rights Act 1998 embraces the European Convention on human Rights into UK law. Although it does not specifically mention children because they are treated as persons in the eyes of the law just as adults. The adoption and Childrens Act 2002 amends the Childrens Act 1989 by recognising the definition of harm to include witnessing domestic violence. Following Victoria Climbes death at the age of eight Lord Laming was asked to conduct an inquiry to establish whether a new legislation was needed or any other recommendations to improve the Child Protection in England. As a response keeping child safe report (Dfes 2003) and the Every Child Matters Green Paper DEFS (2003) which later became Childrens Act (2004). The Childrens Act (2004) does not add/ subtract anything from Childerens Act 1989 instead it sets out an approach to integrate services to children so that every child matters meets the five outcomes: being safe, healthy, achieve, enjoy, make a positive contribution and achieve economic wellbeing. The Childrens Act further places a duty to Local Authorities to appoint childrens Commissioner for England who is accountable for the delivery of service. Local authorities and their partners (police, health services and the youth justice system) have a duty to co-operate in promoting the wellbeing of children and young people and to make necessary arrangements to promote childrens welfare and wellbeing. As required in the lay out working together to safeguard children statutory guidance, non statutory ( area in protecting committees are replaced by the new local safeguarding children bears. They are trusted with further functions of reviewing and investigating (section 14) which they use to review all child deaths in their area. It also revises legislation regarding physical punishment by making it an offence to hit a child to an extent of causing mental harm on the skin (section 58) which repeats the defence provided to parents on reasonable chastisement of the children and Young P ersons Act 1993. The 2006 Children and Adoption Act enforces contact / contact orders when separated parents are in dispute giving more flexible powers to facilitate contact. As recommended in the Care Matters White Paper (Dfes 2007) the children and Young Persons Act is expected to give and provide high quality care and services for children in care and places a duty on registrars to notify local safeguarding board on all deaths Daniel and Ivatts (1998). The Borders, Citizenship and Immigration Act 2009 requires UK Border Agency to recognise and promote safedguarding childrens welfare section 55 in line with other public organisations that have contact with children. The apprenticeships,skills, children and Leaarning Act 2009 requires two local lay community members sitting on each local safeguarding children board. Some of the provisions in the Act have been targeted for repealing by the coalition government including the duty on schools to promote the wellbeing of children and the requirement to set up childrens trust and draw up children and Young Peoples plans (Dfe 2010) There is also legislation that has been set up to protect children by monitoring adults who pose a risk,creating offences which they can be charged and stopping them from working with children. These are the sex offenders Act 1997, Sexual Offences Act 2003, Female Genital Mutilation Act 2003, Domestic Violence , Crime and Victims Act 2004 guidance on offences against children,the serious organisational crime and police Act 2005, the Safeguarding Vulnerable Groups Act 2006 after the death of Holly and Jessica. The forced marriages Act Civil Protection 2007 and the Criminal Justice and Immigration Act 2008. Out of all the legislation it is important to mention that they do not cover the minimum age at which a child may be left alone and how old a baby sitter should be. Having explored the child protection system and legislation it is important to address one of the critical debates in the topic which is: Does child protection work in all communities especially the ethnic minority and disabled groups? Most recent research carried out has revealed so far some of the issues which are far reaching as shortcomings. It has been suggested that new research shold explore the family structures and values on how different ethnic minority groups slip into situations requiring child protection. Highly focused studies are neede to focus and understand how some practices and beliefs in specific minority groups such as genital mutilation or the racial abuses of mixed heritage children brought up in white families. Qualitative studies into attitudes towards sexuality in different cultural and faith groups. Maybe the time limits regulating initial assessment s into culturally sensitive work re impacting on complex work to be properly carried out (such as refugee fa milies) The courts , conbferences and social work practice must be aware and pay attention to the needs of ethnic minoritoies . If these are addressed then the child protection system will be ethnically tolerant and culturally competent in the best of the chid and as hood practice. Thoburn et al (2006). Disabled children are more still likely to be abused and neglected because they rely on institutions which have a history of failing over the past decades. The institutions either lack the resources, capacity and transparency in addressing abuse/neglect and also inefficient procedures to guarantee disclosure to assist disabled children to overcome the communication barrier especially on abuse. Worse still there is more vulnerability to children whose parents are disabled. There is more likelihood of them being taken into care on the grounds of neglect than those children whose parents are not disabled. Organisations and local authorities need more structures in place and transparency to help vulnerable children and families to be able to communicate and express their worries, fears and anxieties Corby (2006). LEAFLET COMMENTARY 500 WORDS NEGLECT AND EMOTIONAL ABUSE. WHY THIS AREA? It has been a neglected area since the death of Maria Colwell Professionals focused on physical and sexual abuse. This meant the neglect and emotionally abused children and their families were not adequately represented thus getting limited resources and being filtered out of the Child protection system. When the Childrens Act 1989 was introduced it tried to address these issues and further went on to introduce registrations in the neglect/ emotional abuse category. This commitment is of great significance to practitioners whose objective is to tackle any form of child maltreatment as resources became available. Development of Identity as a Blogger | Proposal Development of Identity as a Blogger | Proposal Piyas Roy FORMATION AND TRANSFORMATION OF BLOGGER AS AN IDENTITY IN BANGLADESH INTRODUCTION General Overview As first evolved, the idea of being a blogger, always been counted as someone being technologically advanced, as long as a socially aware person with a good knowledge on contemporary reality with a good sense of expression through different forms of text. The identity of a blogger in the early days was so influential that, creative thinkers having least knowledge on blogging got huge interest over it and started to introduce themselves as a blogger, instead of just a creative fellow or a writer or anything else. But a single incident took place in the year of 2013 has drastically changed the scenario. Peoples of Bangladesh, where the country’s population is Muslim majority, started treating the bloggers in a generalized way as Islam hater atheists in general. Not only the disparity in ideology, but the situation turned so awful that holding the religious agenda, incidences like assassination of bloggers started taking place in the history of Bangladesh. In this study, I will t ry to find the formation and reformation of blogger, as an identity in Bangladesh thorough its impact on socio-religious ideology and how the ideology of freethinker bloggers get perceived by the members of different stakeholders. Background of the Study Being introduced in the year or 1996, the initial use of VSAT and dial-up based internet brought first change in Bangladeshi computing with the world wide web while the cyber space gathering was mostly based on yahoo groups (Sabir, 2015). On the other hand Justin Hall’s created the first ever blog in the internet history opened a new dimension which has been categorized and titled by Weblog by online diarist Jorn Barger in December 1997. As the technology got improved Blogger introduced the first ever free blogging platform in August 1999 which was a revolution for the blogger community, though that blogging was in an individualistic manner for each blogger to writing blog post separately onto their own platform (Thompson, 2006). For Bangladeshi bloggers the first revolutionary attempt was somewhereinblog.net which started the community Bengali blogging platform from 15 December of 2005. Bloggers of which platform later on diversified in some other platforms like amarblog.com, sachalayatan.com, mukto-mona.com and so on, turning blogging as a trend for the people of new generation. The trend of blogging turned so popular that some mainstream newspapers online version and online newspapers like the Daily Prothom Alo, introduced blogging facility as a scope of citizen journalists for inviting bloggers to become voice for the voiceless citizens. The first generation bloggers have not bounded within the lines of blogs only, but also widened their blogging in social network platforms also, mostly in Facebook. In February 6 2013, The International Crimes Tribunal-2 sentenced Jamaat-e-Islami leader Abdul Quader Mollah to life in prison for his against humanity role during the liberation war of Bangladesh. To raise voice against that unfair verdict Bloggers and Activist Network initiated the protest by organizing a human chain in front of the National Museum, which ignited the huge nationalist movement of Shahbagh, demanding the death penalty of war criminals or Liberation war of 1971. When the rebellion movement was at its pick, a blogger and one of the initiator of Shahbagh movement Ahmed Rajib Haidar, was found dead by stabbing on February 15 near his house. From investigation, it was found that Rajib was threatened by some Islamic Fundamentalists for his involvement with Shahbagh movement and his online activities in against of Islamic sentiment. That particular assassination has started the series of killing in Bangladesh, targeting the bloggers and online activists. The next victim was another blogger Mamun Hossain, who has been hacked to death in Dhaka with the same acquisition of spreading hate speeches in against of Islamic religious sentiment. Another private university student and online activist Ashraful Islam also found dead in his flat in Savar, having a deep cut injury in throat. Islamic fundamentalists got accused for this case also. Some of those attacks got failed, such as in case of blogger Asif Mohiuddin, later who has to leave country and started living in United Kingdom, as provided Asylum by the government for his life threat in Bangladesh. In March 2013, in a meeting with Prime Minister’s Office Allama Muhammad Mahbub Alam, Editor of Dainik Al Ihsan accompanied with a group of Islamic fundamentalists suggested repentance (‘tauba’) for the bloggers who are accused of making offensive statements against Islam and its Prophet Hazrat Muhammad (PBUH) enclosing a list of 84 bloggers acting in that objectionable norms and a request to the government to shut down all those blog sites including somewhereinblog.net, amarblog.com, mukto-mona.com, sachalayaton.com and some others which are severely used by claimed atheists for spreading anti Islamic ideology, according to their claim. It was also found that the series or killing was miraculously following that list of 84 provided by Islamist leaders. That series killing has got an update this year on February 26, by the brutal assassination of freethinker, founder for Muktomona blog and science writer Avijit Roy near Ekushey Book Fair. Avijit’s wife and another blogger Rafida Ahmed Bonya got severely wounded during that same attack after recovering has to leave country and fly back to USA alone, from where those two came to Bangladesh to visit this year’s book fair few days ago. Prime suspect Farabi Shafiur Rahman got arrested by law enforcement agencies few days later, as he was accused for threatening Avijit over social networks for last few years d ue to his pro thinking and writings. On the contrary a miscreant cyber group Ansarullah Bengali Team claims their success in murdering Blogger Avijit through their Twitter Account. Here is not the end. Till date the latest incident took place with blogger Washiqur Rahman, on March 30 in Dhaka for the same acquisition of anti Islamist writing and practicing atheism in public sphere. Analyzing the total series of killing, the acquisition comes in front referring the bloggers and online activists being atheist and anti Islamist. Basically that identity of bloggers was used as an effective weapon by the Jamaat-e-Islami to divert the attention of people from the revolutionary demand of punishing the war criminals of 1971 with maximum penalty. On the contrary either the bloggers are being threatened of killing, leaving the country for securing their life, or started leading a new life leaving the unforgotten blogger identity aside, for the sake of security. Operational Definition Blog The word blog is a shortened form of the word Weblog, which refers to some websites, easily counted as the digital version of diary, where the publisher write posts in regular basis with identical date stamps for the posts for each days separately. Though firstly blog writing was and individual task for each blogger, later on community blogging platforms like forums or community blog sites evolved with the feature of all the bloggers to gather in a single space so share their thoughts and to place opinion on each other’s ideas. Blogger In general, the people who writes blog regularly, is known as blogger. But in case of Bangladeshi people someone who has the authority to write something over cyberspace either in blogs or in social media platforms, be counted as blogger. Research Question Throughout this research, I will try to find out the possible answers for the following questions: How the identity of blogger in different blog sites is formulated in Bangladesh? How the ideological warfare between bloggers in real space has been provoked by that of the virtual space? How the ideology of blogger has been perceived by different stakeholders/groups? Research Objectives After the successful completion of this study we will be able To understand the building blocks of blogger identity in Bangladesh and its changing form as time passes due to several socio-religious factors. To know how stakeholders from different classes of the society perceive the concept of blogging and the ideology the bloggers promote. To understand the view of blogger community members regarding the current trend of blogging and online activity in Bangladesh. To have a clear scenario of blogging in Bangladesh and to assume its future trend. Rationale of the project For last two years the issue of bloggers has been emerged with high importance. In one side, group of miscreants backed by the fundamentalist are constantly threatening the bloggers to stop their activities against the religious believe. On the contrary, in spite of having the fear of death in front, the bloggers are continuing their activities using different blog sites even in Facebook as platform. To take a control over it, government introduced The Information and Communication Technology Act, 2006, having a very few impact on the bloggers activity. On the contrary the series death incidents of the bloggers turned the government’s role under fire on ensuring citizen’s life security. More specifically the after the brutal death of Avijit Roy, a Bangladeshi American blogger and write known for pioneering Bengali freethinkers has put Bangladeshi law and order system under question in the international periphery. As long as the bloggers, the involved Islamic fundamental forces can be perceived having related to the international Islamic terrorist movement, which can also be a threat to Bangladesh’s global image and its diplomatic relation with other countries. So undoubtedly the issue regarding bloggers is a highly emerged one among the contemporary Bangladeshi social issues. Significance of the Research Till date, some blogs post, articles have been worked on bloggers’ identity formation and reformation in Bangladesh, in a scattered manner in different platforms from online publications, social media to newspapers. But no academic research has been done yet on such important topic. I hope this research can focus on the subjected topic immensely to have a better idea about the bloggers identity issues along with the ideological warfare of virtual world, impacting on the rage of fundamentalist in against of blogger community as a whole. Scopes and Limitations General purpose To determine the way how different stakeholders perceive the identity of a blogger, how that identity can come across evolution influenced by social factors and finally how the identity of virtual space can impact in real world. Subject matter Blogger identity, ideological clash with fundamentalism and its acceptance and denial in different categories of stakeholders in the society. Limitation of study This research will focus on the identity formation of only the Bangladeshi bloggers. Bloggers from other countries will not be accountable in this research. Also in different social issues bloggers often got involved in creating public opinion and awareness, even getting opposing with the governmental or any other influential forces. But all the ideological conflict issue will not be covered in this research. Instead of only bloggers ideological clash with the fundamentalist Islamic force, their ideological warfare will be counted as the matter to discuss about throughout this research work. Population or universe Bloggers and online activists playing the role of acting force of fundamentalist movement, Stakeholders from different phase of society. Locale of the study Bloggers and associated different stakeholders originated in Bangladesh. Period of the study: From the historical point from where journey of community blogging started its journey to 2016. Bibliography Sabir, S. A. (2015, February 04). History Evolution of Bangladesh Internet. Retrieved April 19, 2015, from Bangladesh Network Operators Group: http://www.bdnog.org/v2/conference_paper/Bangaldesh-Internet.pdf Thompson, C. (2006, February 20). The Early Years: A Timeline of How Blogging All Began. Retrieved April 19, 2015, from NYMag: http://nymag.com/news/media/15971/

Comparative Analysis of Forwards and Futures Contracts

Comparative Analysis of Forwards and Futures Contracts A Mauritian Perspective Abstract This research compares the OTC derivatives market with the exchange-traded derivatives market. Forwards contracts have been used as a representative for OTC markets and Futures for organised exchanges and the costs and benefits of each one have been analysed. This research has been done being with regard to the GBOT setting up in Mauritius. Forwards are frequently used contracts relative to others, in Mauritius. Hence, it is assumed that if the users have to shift to the GBOT, they will use futures contracts as a substitute for forwards since both have similar characteristics except that futures are more sophisticated than forwards. A survey has been done on the top one hundred and twenty companies in Mauritius out of which, only 70 have responded. The questionnaire aimed at determining the current derivatives position in Mauritius and a glance at the perception of the financial officers with respect to GBOT. Even though they believe that GBOT will benefit the country, they are unwilling to enter the market; while most of the respondents are unaware of GBOT and uncertain about the futures market and trade mechanism. Unexpectedly, it was found that some firms use futures for risk management. The results have been used to conclude whether it is viable for Mauritius to introduce an exchange and what measures can be taken to ensure that GBOT is successful. With respect to this research, it seems that the Mauritian market is not ready yet, to conceive this new development in its financial system but there are some measures that can be adopted to combat the inhibitors and there are much lessons to be learned from the record of derivatives mismanagement. List of Abbreviations AML Air Mauritius Company Limited CDS Central Depository and Settlement Company Limited CBOT Chicago Board of Trade CME Chicago Mercantile Exchange CFTC Commodity Futures Trading Commission EFP Exchange of Futures for Physical FSC Financial Services Commission FX Foreign Exchange GBOT Global Board Of Trade HSBC Hongkong and Shanghai Banking Corporation Limited MTM Mark-To-Market OTC Over-The-Counter SEM Stock Exchange of Mauritius STC State Trading Corporation S0 Spot price today ST Spot price at maturity USA United States of America 1.1 Introduction The presence of derivatives market has undoubtedly improved national productivity growth and standards of living. Alan Greenspan (Chairman of the US Federal Reserve System, 2005) Derivatives have gained prominence in the past few decades and are today a vital element in finance. Although they are the latest addition to the financial world, they have been witnessing a high rate of success. They have undergone constant innovation and active trade, notwithstanding the fact that they have led to a more complex form of hedging. Electronic trading and settlement facility has revolutionised the global financial and commodity markets by attracting international investors and increasing liquidity. 1.2 Background Theory 1.2.1 Hedging Hedging is a form of insurance that uses derivatives to absorb financial risk by locking in a price for a particular good. Its essence pertains to the uncertainties associated in prices of goods. Since prices of goods cannot be predicted with certainty, people speculate. Gol (1980) states that when everyone expects a price rise, all opinions seem to converge over a price rise, such that, if speculators enter the futures market, they would also be buyers rather than sellers and their buying activity may further aggravate the price rise. Speculation helps in effective risk management but sometimes backfires; for instance, many airlines speculated a rise in fuel prices and hedged their exposure with derivatives. Unfortunately, the financial crisis 2007-2008 caused fuel prices to decrease considerably in the spot market, but the airlines had the obligation to honour their derivative contracts at relatively higher prices. 1.2.2 Derivatives market Derivatives are financial instruments that derive their value from one or more underlying assets such as stocks, bonds, currencies, interest rates, commodities and market indices; for example, an oil futures contract derives its value from the price of oil- oil being the underlying asset. Derivatives are used extensively in financial and non-financial institutions. Forward contracts are the basic derivatives that stemmed from the goods market, and have thereupon paved the way for other derivatives. Some goods traded through derivatives are base metals, precious metals, agricultural products, energy products, foreign currencies, interest rate, and stock indices among others. Other includes contracts based on carbon, commodity indices, credit, fertilizer, housing, inflation, and weather. Source: Futures Industry Magazine 2009 For this research, commodities, assets, and goods are used interchangeably, irrespective of whether they are used in the financial, commodities or foreign exchange markets. 1.2.3 Types of derivatives There are two distinct groups of derivative instruments: forward-based products and option-based products. Forward-based products are termed linear derivatives as they offer a linear payoff and include futures, forwards, and swaps. Conversely, option-based products are non-linear derivatives since they offer a non-linear payoff and include puts, calls, caps, floors, and collars. Other derivatives, such as options on futures, swaptions, and forward caps, combine the features of both forward and option contracts. Derivatives trade in over-the-counter (OTC) markets or in organised exchanges. OTC trading occurs among a few dealers via phone or electronic messages. OTC contracts are mutual agreements made through private negotiations and transacted outside a trading platform. However, some OTC derivatives are cleared via exchanges (e.g. in the Chicago Mercantile Exchange). Swaps, forwards, and customised options are OTC contracts. Exchange-traded derivatives are standardised in terms of quantity and quality (the amount and quality of the good is fixed) and negotiation is not possible. Organised exchanges employ both open outcry system and electronic order matching systems and share similar purposes to securities exchanges. They design the contract terms and operate a clearinghouse, which acts as a guarantor, settles all contracts, and regulates trading. Large securities firms and commercial banks act as derivatives dealers. Futures and standardised options are traded on exchanges. 1.2.4 Players The three broad categories of traders in the derivatives market are hedgers, speculators, and arbitrageurs. Hedgers use derivatives to reduce the risks that they face from adverse movements in prices of goods while speculators take a position to realise gains with a relatively small initial outlay. Arbitrageurs enter the market to realise gains without risking their own capital. Conclusively, hedgers transfer their risk to speculators and arbitrageurs and thus, boost liquidity on the market. 1.3 Objective of Study A well-regulated organised derivatives market encourages a sustainable financial development and increases savings and investment in the long-run, thereby promoting economic growth. However, the concern is how and when to discern the time for its implementation in small economies. This dissertation aims at analysing the benefits and drawbacks of using forwards and futures contracts. Forwards contracts can be used by minority users, without major procedures and regulation. Contrarily, futures require significant concern and assistance of the government to support and ensure a good operating system. The research is carried out with regard to the commodities market being set up in Mauritius. Forwards laid the groundwork for futures, hence, both are treated simultaneously throughout this study. Futures (exchange-traded) are enhanced forms of forwards (OTC) but differing somewhat in the way they are traded. The costs and benefits of the two instruments are analysed and compared. This will indicate whether it is viable for Mauritius to introduce a derivatives exchange and suggests the measures that can be adopted to ensure that its objectives are attained. Swaps and options are excluded from the study because they operate differently and due to word constraint. Forwards and futures are relatively simpler and typically alike, thus, rendering comparison easier. 1.4 Overview of Remaining Chapters Chapter 2 deals with the literature review while Chapter 3 is an overview of the derivatives market in Mauritius. Chapter 4 covers the research methodology section. Chapter 5 presents the analysis and findings of the research, followed by Chapter 6, which concludes this study and includes some recommendations. chapter two: literature review 2.1 Importance of Derivatives Market Several factors such as size, leverage, asset-liability duration, and taxes amongst others, affect the hedging decision of a firm. The Miller and Modigliani theory posits that hedging is fruitless in perfect financial markets. In reality though, markets are imperfect and hedging alters a firms value by influencing its investment decisions. Bessembinder (1991) distinguishes that hedging corporate risk with forward contracts increases firms value by reducing incentives to under-invest. He also advocates that large institutions are more likely to use derivatives due to informational economies of scale. Likewise, Haushalter (2000) finds a positive correlation between hedging decision and total assets and characterises it as the economies of scale in information and transaction costs of hedging. Hedging also enables a firm to negotiate with its customers, creditors, and managers, which improves contract terms. A research on African countries suggests that volatile international capital flows have the tendency to destabilise shallow markets and precipitate a crisis if there is a change in investors appetite and urges adoption of stronger domestic policies and local derivatives markets for financial risk management purposes (Adelegan, 2009). Hedging is a zero-sum game; one does not gain from trade unless another faces a loss. The gain to the buyer will be exactly equal to the loss to the seller of the forward contract, whilst the gain to the seller will be exactly equal to the loss to the buyer. Hieronymus (1971) defines hedging as taking a position in a futures market that is equal in size and opposite to a predetermined position in the cash market. Hence, a loss in one market is offset by a gain in the other market. This principle works since cash prices and futures prices of a commodity are expected to converge as the contract reaches expiry. Anderson and Danthine ( 1981) define a pure hedge term equal to the risk-minimising futures position corresponding to a predetermined cash position. A hedger, thus, uses the possibilities offered by futures markets to minimise his risk. 2.2 Forwards Market A forward contract is a bilateral binding agreement to buy or sell a specific quantity and quality of an asset, at a pre-determined price and pre-determined future time. Normally, contracts specifying settlement in excess of 30 days after the trade date are forward contracts. Forwards are the first and simplest derivatives that sprouted in the sixteenth century in the agricultural markets, wherein they were used primarily to resist adverse price movements. Dong and Liu (2005) advocate that the equilibrium forward reduces commodity price risk; the buyer and seller will transact at the price specified in the contract, whatever the price of the underlying asset in the spot market at maturity. A forward agreement is somewhat like a legal contract, customised with respect to the needs of the particular buyers and sellers, obligating delivery of the underlying asset under the conditions specified in the contract. The buyers and sellers negotiate over the contract terms. Anderson and Danthine (1981) claim that, in the forwards market, speculators are assumed to be risk-neutral, bidding competitively to exercise arbitrage opportunities. 2.2.1 Benefits of Forward Contracts 2.2.1.1 Risk Management Typically, a forward contract alleviates financial risks, thereby protecting traders. There is no initial investment in the forwards market since cash changes hand only on settlement of the contract at maturity. This causes less volatility in cash transactions, rendering cash flows easy to manage. 2.2.1.2 Settlement Facility Cases wherein the seller defaults for some reason, contracts may be mutually settled in cash. Duffie (1989) finds that in practice, only a small fraction of forward positions are actually delivered while most are closed out before delivery by a cash settlement. Sometimes, initial traders are able to transfer their contracts to someone willing to take their obligation. Per se, it offers a certain degree of flexibility. 2.2.1.3 Trade Linkages and other benefits Forwards allows negotiation on the contracting terms, which benefits traders, builds up trust, and strengthens trade links between parties. Wolak (2007) analyses an electricity company and concludes that forward contracts reduce the cost of production as well as its volatility, and increase pro?t. Likewise, Dong and Liu (2005) show that forward contracts in non-storable goods benefit both producers and suppliers. 2.2.2 Costs of Forward Contracts 2.2.2.1 Counterparty Default Risk Forward contracts mitigate financial risks but give rise to counterparty risk (risk of default), which is one of the prominent risks in OTC derivatives. Counterparty risk can cause huge losses. 2.2.2.2 Transaction Costs In order to ensure guaranteed deals, parties with good credit ratings should be identified, which is a very costly task. Nevertheless, these firms do have a possibility to default for reasons such as insolvency or bankruptcy. An ideal illustration is the collapse of the Lehman Brothers investment bank that has created the biggest turmoil in the worlds history; following which, more concern has shifted to the OTC market. 2.2.2.3 Legal procedures Once the terms and conditions of the contract are accepted, they must be adhered to otherwise legal procedures may entail. Forwards market is an unorganised form of trade with no ability to deal with conflicts other than seeking legal recourse that may be too costly. Influential and wealthy parties only may recourse to such practices. Besides, it causes damage to the dealers reputation. 2.2.2.4 Liquidity and Transparency issues There is no possibility of closing out or reversing a forward contract. Thus, forwards lack flexibility and liquidity and forward delivery is not guaranteed in the absence of a regulator. Additionally, since the contract involves only two entities, there is reduced transparency and possibility of mispricing the goods since not all the forces are at work. 2.2.2.5 Market Power and Bargaining Power Market power and bargaining power affect the capacity for negotiation along with the forward equilibrium price. As such, small investors with lesser power may suffer. Dong and Liu (2005) show that the forward equilibrium moves in favour of the participant with high market power, such that he gains from the contract. However, when negotiation costs are very high, both producers and buyers face a loss regardless of market power and use forward contracts for risk management rather than for gains. 2.2.2.6 Informational Inefficiency A study by Mahenc and Meunier ( 1983) stipulates that there is no proper information dissemination in the forward market but under conditions of imperfect information, forward trading indirectly creates efficiency in the spot market. The necessity to deal with the shortcomings of forward contracts led to the emergence of the futures market. 2.3 Futures Market A futures contract is an agreement between two parties to buy or sell a fixed amount of an asset at a pre-decided price and date. In this respect, futures share the same characteristics as forwards; for instance, they help buyers and sellers with long term planning by locking in a price. However, futures are more sophisticated than forwards. Financial futures were traded on shares of the Dutch East India Company in the seventeenth century, but modern futures markets originated in Japanese rice futures, which were traded in Osaka in the eighteenth century. Futures emerged with the grading system, which purported to ensure that at maturity, the quality of goods delivered was as specified in the contract, which eventually led to standardisation of futures contracts. Futures are standardised contracts in respect of quantity, quality, delivery date, and location. They trade on organised exchanges, which are responsible for setting the quantity, quality of the underlying asset in the contract. Moreover, the exchange sets the terms and conditions of the contract, which are non-negotiable by the traders. All investors are treated equally; small investors are also able to hedge without difficulty. 2.3.1 Structure of the Futures Market Futures exchanges share the same purpose as securities exchanges. They usually have an integrated clearinghouse for clearing and settlement facility. Brokers, who are also members of the exchange, are responsible to match the buy and sell orders without buyers meeting sellers and vice-versa. Only members are allowed to trade on the platform, thus, a non-member wishing to deal in futures, should trade through a broker. The exchange connects buyers and sellers worldwide, communicates and keeps parties joint and ensures compliance with the terms and conditions of the contracts. Exchanges use open outcry in pits or electronic order matching systems or some use both, such as The Chicago Mercantile Exchange. Some authors argue that the open outcry system is more liquid and transparent than the automated system. Traders need to deposit a margin with the exchange prior to trade. The demand for margin (a percentage of the value of the contract) is referred as collateral or as a good faith deposit (Gay, Hunter, and Kolb 1986). All traders are required to have a minimum stated sum of money in their accounts. Contracts are settled on a daily basis: the mark-to-market system (MTM) which affects the contract price. If price of contract increases on a particular day, the holder makes a profit, which he can withdraw from his account, whereas if price decreases, he makes a loss and the amount is deducted from his account. As such, he is required to deposit a margin, referred as a call margin, to replenish his account to the threshold level, known as the variation margining system. Futures contract protect the value of inventories and partly finances the cost of storage since the future price of a commodity is dependent upon its cost of carry (Future price = cash price +cost of carry). This helps to improve marketing policies, financial planning, and long-term forecasting of prices. If ST is expected to be higher than current S0, then the current futures price will be set at a high level relative to the current S0. Likewise, if ST is expected to be lower at maturity, current futures price is set low. 2.3.2 Benefits of Futures Contracts Fundamentally, futures market confers two main purposes: price discovery and price risk management. The market provides protection against default, manipulation, and abuse. 2.3.2.1 Risk Management and Settlement Guarantee Moser (1998) reckons that futures contracts counteract default risk and protect traders through a set of rules. Firstly, standardisation protects traders as it ensures that the quality of the goods delivered is as specified in the contract. Moreover, the exchange can order its members to produce their financial accounts for inspection if their solvency is doubted. In 1873, the CBOT decided to expel any member who refused to abide by this rule (Andreas 1894). The margining and MTM system also contribute to curtail counterparty default risk as traders are called to supplement their account for the losses incurred on their contracts within 24hours; failure to do so causes their positions to be liquidated. There is a settlement guarantee in case of default while a tight regulation ensures that manipulation and abuse is virtually absent. 2.3.2.2 Price Discovery Futures market is transparent; pricing of commodities are fair and manipulations very difficult. Electronic trading on the exchange platform pools together all forces affecting the price of a commodity, leading to price discovery mechanism, which improves efficiency and lowers costs. Technology renders the exchange highly competitive since the market reacts very fast; prices and transactions are monitored constantly while information is captured continuously and incorporated in the intrinsic value of a good. Telser and Higinbotham (1977) concur that, futures market pools trade from diverse area into a central market, thereby increasing the heterogeneity of potential transactions. They proclaim that futures are liquid as transaction occurs readily at mutually acceptable prices and that homogenisation and clarity of the terms and conditions boost liquidity. 2.3.2.3 Liquidity One need not possess the underlying asset to sell futures while one may not be in need of a commodity to buy futures. Speculators and arbitrageurs enter the futures market without possessing or the intention of buying the commodity. Thus, the transfer of risks to different players in the market increases liquidity and maintains the equilibrium in demand and supply. Telser and Higinbotham (1977) statistically demonstrate that as the number of traders in the market increases, the market clearing prices become normal. Futures can be squared-off (reverse a position) without negotiation, thus making delivery non-mandatory. Positions can also be rolled-over. If period for hedge is later than the expiry date of the current futures contract, the hedger can rollover the hedge position by closing the existing position in a futures contract and simultaneously taking a new position in another futures contract with a latter expiry date. 2.3.2.4 Transactional and Informational Efficiency Futures market increases the informational efficiency of cash market and promotes import and export competitiveness. Cox (1976) empirically demonstrates that futures trading increases traders information about forces affecting supply and demand. His analysis rejects the claim that futures trading impose costs on producers, consumers, and others who handle the physical commodity. Additionally, evidences from more fully informed traders suggest that futures trade increases efficiency in spot markets. 2.3.2.5 Increase Export Competitiveness When entering forward contracts, exporters do not, usually, possess the entire stocks for export. Futures market enables them to hedge their projected purchase, until they have to buy in the physical market for exporting. Taking a position in the futures market will help to offset the gain/loss in the physical market; that is, at maturity the net loss/gain in futures market offsets the gain/loss in the physical market. Thus, exporters can accept contracts with longer duration and increase their competitiveness. 2.3.2.6 Offsetting gains and losses in the physical market Futures market also allows a hedger to take a position in the futures market opposite to the position he takes in an over-the-counter market. Such a transaction is termed: exchange of futures for physical (EFP). The OTC and futures positions should be for the same underlying assets or at least similar in terms of value and quantity. This results in the flexibility of customising the physical market with respect to the needs of traders, parallel to the OTC market and at the same time enjoying settlement guarantee in an exchange. Usually, margin requirements for EFP transactions are lower. EFP may seem appealing but is inefficient in fair pricing. Exchange Officials apprehend that EFPs would harm the futures market by reducing volume and liquidity and inhibit fair price discovery. 2.3.2.7 Diversification of portfolios Futures on commodities serve to diversify portfolios, since they are less volatile than financial securities. Bodie and Rosansky (1980) report an average excess return of 9.5% per annum for an equally weighted portfolio of commodity futures between 1950 and 1976. Their analysis reveals that equities are riskier than commodity futures. Furthermore, total return of the equally weighted commodity futures was negatively correlated with the return on long-term bonds, suggesting that commodity futures are effective in diversifying equity and bond portfolios. The benefits of diversification from commodity futures tend to be larger for longer holding. A similar analysis carried out by Gorton and Rouwenhorst (2005) confirms that commodity futures returns have been effective in providing diversification of both stock and bond portfolios. Weiser (2003), on the other hand, contends that commodity futures returns vary with the stage of the business cycle. He finds that commodity futures usually perform well in the early stages of a recession while stock returns are generally disappointing and in later stages of recessions, commodity returns fall while equities perform well. 2.3.3 Costs of Futures Contracts 2.3.3.1 Complexity Despite appealing benefits, futures contracts inherit some costs and the prime one is the complexity of handling them. Futures were generated to deal with the limitations of forwards but, in so doing, they brought a more complex form of hedging. Proper knowledge of the market is crucial; otherwise, hedgers may face unwanted losses. 2.3.3.2 Basis Risk Basis risk (the difference between spot and futures price) is inbuilt in futures market. Hedge positions are usually not perfect due to this difference. Working (1962) emphasises that the existence of basis risk prevents the elimination of all risks. Brorsen (1995) finds that changes in basis can cause forwards to be cheapest in some periods and futures to be cheapest in others. Therefore, the benefits of hedging can be enjoyed when the market is well understood. Advanced futures concepts about hedge positions, hedge ratios, and types of hedges should also be mastered as they benefit hedgers differently in different markets. 2.3.3.3 Mark-to-Market System (MTM)-cash drain out The transaction costs involved, such as, initial margin and variation margin in the MTM system freezes up working capital that could have yielded interest. Furthermore, the margin call should be paid before next opening of the market- a very short delay. These daily settlements make transactions volatile and cash flows cumbersome to maintain. Margin costs and brokerage commission discourage some investors, especially small traders, to enter the market. Williams (1986, 1987) shows that risk-neutral firms will hedge if transaction costs are lower in the futures market than in the cash market. Moreover, instances of dual trading exist, whereby brokers trade on behalf of their clients to earn a commission, without improving the customers position. 2.3.3.4 Large Number of Participants needed Futures contracts fail for lack of interest by market participants, that is, a low trading volume. Telser and Higinbotham (1977) statistically demonstrate that the benefit of an organised market is an increasing function of the number of potential participants and hence, an increasing function of the turnover of the potential participants in that market. They conclude that an organised futures market survive only if it is perfectly competitive, which is achieved when there are many participants. If the open interest (number of contracts outstanding) in the futures market declines, the volume of trade falls relative to the open interest. The commission and the margin are raised consequently. They even assert that there is a cost to the emergence and survival of an organised exchange. 2.3.3.5 Standardisation issues Standardised nature of contracts may cause over-hedging or under-hedging. For example, a contract specifies  £1000 to be sold while a hedger may need only  £800. Therefore, he over-hedges by  £200. Conversely, say a hedger needs  £1100, he under-hedges by  £100. 2.3.3.6 Uninformed Investors Increase Volatility Uninformed investors may increase price volatility in the futures market. If the market is inefficient in information, futures prices become biased predictors of future spot prices and causes cash prices and future prices to diverge rather than converge. Usually, futures contracts with longer maturity are closer to spot prices since time is required to assimilate unanticipated shocks. However, Kaminsky and Manmohan (1990) suggest that it is impractical to make any generalisations about the short-term and long-term horizons in commodity futures market. They find that for longer periods several markets are not fully efficient. In addition, Chernenko et al. (2004) study a wide range of futures and forward rates from financial markets and conclude that forward and futures prices are not generally pure measures of market expectations; per se, they may not be an efficient forecast of the future prices of assets. 2.3.3.7 Losses Faced By Investors Other studies indicate that large scale, professional speculators can profitably forecast commodity prices, but small traders cannot. Stewart (1949) considers futures-trading accounts for small-scale speculators and discovers that they face huge losses. Moreover, Houthakker (1957) and Rockwell (1967) find that large speculators earned profits and small speculators incurred losses for a particular set of data. Similarly, Working (1931) estimated that speculators in wheat futures, incurred losses. Empirical research shows that, for cattle and wheat producers, futures markets have lower transaction costs than forward contracts, while for small firms like farmers, the contracting costs might be higher because of opportunity cost of time in learning about futures, setting up a brokerage account, and managing margin calls. It would be unnecessary for small groups of traders, well acquainted with each other to transact among themselves than use futures. 2.3 Derivatives Mishaps The history of derivatives has witnessed some spectacular losses in the derivatives markets, which includes losses made by both financial (e.g. Amaranth hedge fund, Barings Bank) and non-financial institutions (e.g. Orange country, Shell, Metallgesellschaft). The Metallgesellschaft (MG) is a German oil company, which used futures to hedge its exposure in its early 1990s. MG hedged its position with long positions in short-dated futures contracts that were rolled forward. However, the price of oil fell and then came the margin requirements, which caused short-term cash flow pressures. Members of MG claimed that these were short-term cash outflows and in the long-run, there would be a cash inflow. However, this led to a serious issue as huge cash was drained out of the system. Consequently, MG executives closed out all their hedged positions. Therefore, one lesson to be learned is to be alert at all ti