Using a simple supply and demand framework, analyse the potential Essay

Using a simple supply and demand framework, analyse the potential factors that impact on the price of crude oil in both the short- and long-run - Essay Example Obviously, from the graphical illustration, more is supplied while prices are higher than when they are low. Looking at the demand curve, on the other hand, while prices are high at p1, then quantity demanded is low at Q1. This is unlike the case where prices are lower at p2*, at which the quantity demanded rises to Q2. (investopedia.com, 2011) Some of demand factors as well as supply may have an impact in the short-term while others will be experienced over the long-term. The latest oil price shock has been majorly attached to the demand factors as the driving force especially between the year 2004 and 2008. (Hamilton, 2008) In the short-run there are two experiences that are evident; higher demand levels and an inelastic supply curve. This in turn causes a price upsurge as far as oil is concerned. The reasoning behind this is that as demand escalates, a decline in the stocks of oil is experienced worldwide, in all main oil refineries in the globe. The prices of oil are then forced upwards. This gives a message to the suppliers of oil in the globe to grow their production. However, a hindrance arises since it is not possible to make some extra stock supplies in the short-run. Thus, there will be an escalation of prices as demand shifts against an inelastic supply in the short-run. As one can observe from the following graph, in the short-run some factors of supply can be varied and this leads to an increase in quantity of oil supplied. However, some of the factors that can lead to a further increase are not varied in the short-run, which causes a totally inelastic supply curve at a given point. For a better illustration to this theory, the graph below is of great essence; Demand of oil may shift (increase) from D1 to D2 and then to D3. At the same time, prices may remain at P1 due to the fact that there is enough supply until a certain point where

METR Homework 2 Assignment Example | Topics and Well Written Essays - 500 words

METR Homework 2 - Assignment Example Precipitation can fall as rain, hail, snow or sleet. Once precipitation reaches the group, it forms surface water which often ends up in springs, lakes, rivers, ocean, sea and even underground water. Low, thick clouds reflect solar radiation thus cool the surface of the Earth. High, thin clouds transmit incoming solar radiation. They also entrap some of the outgoing infrared radiation released by the Earth and emit it back downward (Hobbs 67). This warms the earth surface. Ocean, sea and lake surfaces and rain forests have low albedos; they reflect only a small percentage of the suns energy. Deserts, ice, and clouds, however, have high albedos; they reflect a large percentage of the suns energy. Low or high albedo may result into either high or low temperature in an area. The greenhouse effect often produced by greenhouse gases is also brought about by clouds which absorb long wavelength (infrared) radiation from the surface of the earth radiating some of it back down. Additionally the re-radiation of infrared radiation from the Earths surface may simply reflect it back to the surface. This essentially is the electromagnetic radiation of the earth surface which affects the local temperature of an area. Cloud greenhouse forcing effect can cause temperatures of an area to increase. Its negative causes the opposite. Aerosol serve as nuclei for cloud formation, the diagram above shows basic outlook of the processes involved in the production, growth, and eventual removal of atmospheric aerosol particles. Aerosols act as Cloud Condensation Nuclei, cloud droplets are formed through this nucleus. Aerosols also affect the quality of clouds. Studies have shown that high amounts of aerosols in the clouds will cause more than normal droplets in the clouds. Regions in North and South America have high citrus clouds. Reflection, absorption and transmission of cirrus clouds layers in the near infrared wavelength and the visible have been reported by a number of

Alternative Medicines: Homeopathy, Acupuncture, Aromatherapy, Chiroprac

An ancient Chinese proverb proclaims, "Nature, time and patience are the three great doctors". Nowadays more and more people choose to be treated by methods that are not based on Western systematic techniques that are the knowledge and practice of medicine which is usual in the West. These methods are known as â€Å"Alternative medicine†, which consists of homeopathy, acupuncture, aromatherapy, chiropractic medicine and others. Chinese medicine is also gaining popularity among people. The alternative way of treatment has verified its efficiency and is methodically founded, but, unfortunately, has its little disadvantages and needs a scientific base. For that reason, the alternative medicine is not generally available in all countries, and people have to pay for their individual treatment. Whereas some people consider it an ambiguity and do not dare try it because they consider it might be quite dangerous or insecure, some others just think about it as nonsense and pay little o r no attention to it. People who feel anxious or doubtful of it claim that if non-traditional medicine had really worked, then appropriate doctors would have used it. Nevertheless, since the early 1980s, the alternative medicine has become increasingly popular, and although it is not officially accepted by the medical base, some doctors do accept that such methods can be effective in treating some types of illnesses. Moreover, usual medicine has its boundaries, since some illnesses are untreatable and some others which are caused by mental troubles cannot be cured by its methods (Kowalski, 1998). In distinction, an alternative way of treatment can be efficient in various circumstances and there is a common approval that its methods can be valuable and advant... ...http://elibrary.ru/item.asp?id=2749982 Epiro, E. & Walsh, N., (1997). â€Å"Alternative Medicine–Part Two: Mind Body Medicine–Expanding Health Model†. Patient Care 15 Sept. 1997: 127-145. Retrieved: February 13, 2011, from: http://www.oppap.com/subjects/health-and-medicine-of-the-middle-ages-page6.html Furman, B., (1997). â€Å"Trendy Traditional Medicine for a Modern Age.† San Diego Business Journal 10 Mar. 1997: A7-8. Retrieved: February 13, 2011, from: www.oppapers.com/subjects/diego-rod/ Krizmanic, J., (1995). â€Å"The Best of Both Worlds† Vegetarian Times Nov. 1995: 96-101. Retrieved: February 13, 2011, from: www.findarticles.com/p/articles/mi_m0820/ Kowalski, K., (1998). Alternative Medicine Is It For You? Springfield, New Jersey: Enslow Publishers. Retrieved: February 14, 2011, from: http://biography.jrank.org/pages/553/Kowalski-Kathiann-M-1955-Writings.html

The Pentangle Essay -- Literary Analysis, Gawain, The Green Knight

In the anonymous poem Sir Gawain and the Green Knight, the character of Sir Gawain is portrayed as the imperfect hero. His flaws create interest and intrigue. Such qualities of imperfection cannot be found in the symbol of the pentangle, which he displays on his shield. This contrast between character and symbol is exposed a number of times throughout the poem allowing human qualities to emerge from Gawain’s knightly portrayal. The expectations the pentangle presents proves too much for Gawain as he falls victim to black magic, strays from God, is seduced by an adulterous woman, and ultimately breaks the chivalric code by lying to the Green Knight. The pentangle, also called the â€Å"endless knot,† (630) is a five-pointed star enclosed in a circle, worn as an amulet to â€Å"avert evil from or bring fortune to the wearer† (Talisman, OED). Writer Eliphas Levi says that when the pentangle is pointing up it represents spiritual dominance over the material. Presented the other way, the physical world rules over the spiritual -often associated with dark magic (Pentagram, Wikipedia). This parallel foreshadows the trickery played on Sir Gawain by the Green Knight. The Green Knight challenges Gawain to a â€Å"Christmas game† (283) in an attempt to humble Gawain, tempting him with worldly pleasures and proving that even the greatest of knights are not perfect. Upon finding the Green Chapel, Gawain suggests that â€Å"Here might / The devil himself be seen / †¦at black midnight† (2186-8). Comparing the Green Knight to the devil proves accurate because at the end of the play, the Green Knight confess es that â€Å"the count of your kisses and your conduct too, / And the wooing of my wife—it was all my scheme!† (2360-1). Describing the midnight as â€Å"black† (... ...ain as an imperfect hero makes him an interesting character and allows the reader to see his human qualities emerge in a moralistic story. The tension between two sides of a character trait is represented through contrast with the perfection of the pentangle symbol. God and material possession, fidelity and seduction, and knight and human are all parallel to the two interconnecting triangles depicted in the pentangle. It is impossible to have one without the other. The interconnectedness of our senses, our bodies, our spirituality, our love and emotions, and our personality create a pentangle, binded by a circle: life. The pentangle perhaps places too high an expectation on perfection and does not allow room for human flaws. Such flaws lead to the downfall of Sir Gawain because he was unable to live up to the expectations of the symbol displayed on his shield.

Maya Angelou: Interpretation of Poetry

Maya Angelou Dr. Maya Angelou, born April 24, 1928, was a phenomenal poet, memoirist, novelist, educator, dramatist, producer, actress, historian, filmmaker, and civil rights activist known as one of the greatest voices of renaissance. She experienced harsh racial discrimination throughout her lifetime, and yet in the midst of her trials she never loses self-respect or confidence. Through her powerful delivery of words she dually embodies her captivating personality and demeanor. Altogether, her works are representations of who she is and what she believes in.Sandra Cookson is the author of an article featured in World Literature Today, published by the University of Oklahoma, who does a wonderful job of illuminating Angelou's impactful messages that lie within her poem â€Å"Still I Rise†. In addition, Kelly Holland Cecil, a student who attended University of North Carolina in 1998, conducted a thorough analysis on many of Angelou's Poems. Cecil provides a door of understandi ng as she analytically goes into depth on explaining Dr. Angelou's poem, â€Å"Phenomenal Woman†.Through careful study and analysis of Angelou's poetry followed by research obtained from research an understanding of who she was and the message she was trying to get across may be developed. To begin with, Angelou believes that being â€Å"phenomenal† does not come from the beauty that is accepted from others but from one's genuine uniqueness. The persona in â€Å"Phenomenal Woman,† portrays a strong, proud woman of modesty and humility which is undoubtedly Angelou. She displays this in the first line of the poem, when she says â€Å"Pretty women wonder where my secret lies. The auditor purposely separates herself from the â€Å"in-crowd†, which in this case is â€Å"pretty women. † Thus, suggesting that she does not even consider herself as attractive. Then, in line 2 she reassures the auditor of her disposition when she writes â€Å"I'm not cute or built to suit a fashion model's size. † After initially reading these first two lines, it is possible for them to be mistaken for insecurities, but as one reads further, it is clear that Angelou is not ashamed of her individuality but indeed exuberantly modest.It's in the reach of my arms The span of my hips, The stride of my step, The curl of my lips. I'm a woman Phenomenally. Phenomenal woman, That's me. After reading the lines above, there is no doubt that the she does not view herself as a woman with model beauty, but, in her perspective, a phenomenal woman. Looking at lines 1-4 above, rather than the traditional looks that are generally accepted from men of female models, she illuminates the less noticeable features of her body that make her unique in a special way.Although an exact number was unmentioned, she specifically refers to her height in line 3 above. Angelou was an imposing woman standing at about six feet tall(Cecil 1998). This is yet another display of Ange lou's character proving that she is proud of the physical features she has that make her inimitable. Furthermore, the Angelou uses repetition which according to Cecil â€Å"helps give the poem a flow and makes it seem more familiar and lyrical. † The person repeats the following lines at the end of each stanza: I'm a woman Phenomenally Phenomenal womanThat's me. Due to Angelou's history of musicality she incorporates this style of repetition just as a hook or chorus to a song. She does in such a manner that almost forces the auditor to say it with her and eventually acknowledge that she is not a â€Å"pretty woman†, but â€Å"a phenomenal woman/ phenomenally†. According to Cecil, This may have been influenced by her career as a dancer and as a Broadway actress. Furthermore, Cookson quotes that, â€Å"The musical currents of blues and jazz, the rhythm of rap songs, and the language of the Bible mingle in her poems. Through the creativity of similes and imagery i n Angelou's poem â€Å"Still I Rise† she is able to paint a picture of herself that reveals her as a strong woman of color by displaying her level of determination and perseverance to overcome racial discrimination. In the first stanza of this particular poem, she has an attitude that exemplifies her strong-willed character as she refers to the many things that she has encountered throughout her lifetime. In line 4 of the poem she declares that despite her circumstance â€Å"still† like the â€Å"dust† of the ground she shall rise.Thus, proving statements made by Cookson when she writes â€Å"†¦ The language of the bible mingle in her poems†. Biblically speaking, God made mankind through the dust of the ground, so in essence Angelou is using imagery to show that just as God made man rise from dust, no matter what force is against her she can still rise up and be triumphant. By taking the lyrics of Angelou's poem into consideration, one may notice tha t she expresses herself in a way that corresponds to the harsh discrimination she endured.In the words of Cookson, Still I rise is â€Å"a poem about the survival of black women despite every kind of humiliation†¦ America has subjected them since the days of slavery†(800). With this statement in mind, there should be no question of the auditor in her poem, as it seems to be the predominating white race in America. In the following lines Angelou reveals her strength to tolerate discrimination: You may shoot me with your words, You may cut me with your eyes, You may kill me with your hatefulness, But still, like air, I'll rise.Angelou's takes this as an opportunity to convey her feelings towards the discrimination She has endured. In the above stanza, she illuminates that she has been â€Å"hated on†, â€Å"looked down upon†, and â€Å"spoken to harshly† because of her color. But, she doesn't allow herself to be broken by the circumstances she faces. I n any event, she â€Å"rises†. By venting on Angelou's poetry analytically, one can see that her character symbolizes a woman who is strong, tolerant, modest, and perseverant in the face of adversity. In her poem â€Å"Still I Rise† she goes on to say â€Å"I am the dream and the hope of the slave†.This is Angelou bold stating that where others have failed, she has prospered because of her perseverance and commitment to herself to be who she is—â€Å"A Phenomenal Woman, Phenomenally†. Works Cited Cecil, Kelly Holland. Maya Angelou -1928. 1998. 20 4 2012 . Cookson, Sandra. World Literature Today. Vol. Vol. 69. Autumn: World Literature Today, 1995. Penguin Creative. Dr. Maya Angelou, The Official Website . 2012 . .

The Stolen Generation

The stolen generation †¦. The degradation and the sheer brutality of the act of physically separating a mother from her children is a deep assault on our senses and on our most elemental humanity†¦. The stolen generation is the name given to the generation of aboriginal and Torres strait islander children that were removed from their families and placed into institutions where they were forced to forget their aboriginality. These children were then given a poor education and were sent into the homes of white Australians to be servants or labourers. The government and churches around Australia had an ignorant and uneducated view about the native aboriginals and how they chose to live. They thought that aboriginal families lived poor and unrewarding lives; they believed they were doing the right thing and were helping the children by removing them from their homes and families. They believed that aboriginal people were bad parents and that the women did not look after their children. No records were kept of the children that were taken and siblings were deliberately separated, today many people do not know where or if they have brothers or sisters out there. This had destroyed families and torn them apart. They were forced to go through the unimaginable and were treated as slaves. You and me, we were not direct causes of this. This was our ancestors. A generation before we were born. We had not yet even existed when this was happening all over Australian yet it took all these years for an apology to be given to the people of the stolen generation On the 13th of February 2008 the prime minister Kevin Rudd apologised on behalf of all of Australia for the way that the people of the stolen generation were treated. This is what he said: â€Å"We apologise especially for the removal of Aboriginal and Torres Strait Islander children from their families, their communities and their country. â€Å"For the pain, suffering and hurt of these Stolen Generations, their descendants and for their families left behind, we say sorry. â€Å"To the mothers and the fathers, the brothers and the sisters, for the breaking up of families and communities, we say sorry. â€Å"And for the indignity and degradation thus inflicted on a proud people and a proud culture, we say sorry. â€Å" The Stolen Generation Explain the Stolen Generation (when did it occur/who was responsible and why government officials believed they were justified in taking these actions). The Stolen Generation was a very lonely and depressing time for the indigenous people of Australia. It lasted an overwhelming 60 years in which an estimated 100 000 aboriginal and Torres Strait Islander children were forcibly removed from their families and land to be raised in homes or adopted by white families. This Policy was designed to ‘breed out’ Indigenous people until there was none left. These children became known as the ‘Stolen Generations’.The forced removal of these Indigenous children became an official government policy from 1909 to 1969. However these acts of removing Indigenous children from their homes occurred before and after these dates. The Aborigines Protection Board (APB) managed this removal policy; Governments, Churches and welfare bodies all took part in this operation. The Governm ent gave the APB the power to forcibly remove Indigenous children without parental consent and without a court order in 1909. Children were to be fixated to an institution or mission dormitory, fostered or adopted.The Government under the White Australia and Assimilation Policies tried to encourage Aboriginal and Torres Strait Islander people who were not of pure blood to become incorporated into the broader community of white Australian’s so that eventually there would be no Indigenous people left. At the current time the white Australians thought they were superior to the Indigenous people and that they were doing them a favour by giving them an education and clothing them, even though they only educated them to a certain extent so that they could work as labourers or servants.Children were extracted from their Indigenous culture so they could be brought up white and ‘taught’ to reject their Aboriginality. These children were distributed to institutions and fro m roughly the 1950’s were also allocated to white families. The APB only educated the Aboriginal children so that they could become labourers or servants, so their education was very poor. They did not educate them to a satisfactory ‘white’ standard because the white people could stay in power and hold the higher positions in society.The Aboriginal girls that were forcibly removed from their families were sent to homes and facilities authorized by the Board to be trained in domestic service. The white people did not understand or respect the Aboriginal people or their way of life, this also meant that the people who supported the policy thought they were doing the ‘right thing’. Some of these people also believed the aboriginal people lived impecunious and unrewarding lives and that the institutions they were placed in would be a more appropriate environment in which the Aboriginal people could better themselves.The white people thought the Aborigina ls were stupid and had no tools or houses and could not provide for themselves. When in-fact they were just so blind to the fact that the Aboriginal culture was based off living as one with the earth and the white people couldn’t perceive and accept their way of life. The dominant, bigoted racist views that were part of the white society and government at the time also meant that people believed that Aboriginal people were bad parents and that the Aboriginal women did not feed or look after their children accordingly.They didn’t realize that the Indigenous people lived of the land and used the nuts and plants for medicine, they only took what they needed from the land. They were not greedy, unlike white people who harvested massive crops and wore fancy clothing. So the white people took it upon themselves to try and exterminate the aborigines by breeding them with white people until there was none left. No one really knows how many Indigenous people were taken from the ir homes and lands, because most records of this tragic time have been lost or destroyed.Countless parents never saw their children who were stolen from them, siblings were prepensely separated from each other and most never saw each other again. To this day many Aboriginal people do not know who their relatives are or have been unable to track them down due to this appalling and shameful policy Australia enforced in an attempt to assimilate the Aboriginal population during 1909-1996, meaning that even today there are Aboriginal people as young as their late 40’s and 50’s who are members of the Stolen Generation. ) Discuss the varying experiences members of the stolen generation had; including where they were taken and the conditions in which they lived. Experiences throughout the stolen generation vary quite allot, especially gender wise, generally the men found it difficult and tried to escape from where they were sent. On the other hand the women generally had lots of fond memories although it was very difficult at the time because they were separated from their parents at a very young age.Depending on wether you were female or male, you would be taken to different locations, the women were often taken to farms as servants and waiters, the men were normally taken to institutions where they would be trained to become labourers. Both genders were at first taken to missions that were usually religious based. At these missions they would be taught how to speak and dress like a white person. Once they were of a satisfactory standard, they would be placed in different locations, women as maids, servants and cooks and the men as stockmen, labourers or other tedious jobs.Even though they had jobs, the Aboriginal workers would not get paid. If they were lucky they would be left in their country ( their land/are they called home), this was very important to them because their country was part of their life. In the Aboriginal community they believe that being on country is a nurturing experience for them, in other words if they look after their country, the country will look after them. Its their duty to look after the land, and when they are separated from it, they cannot do this, which brings them great suffering and pain.From the point in which they were taken and separated from their family, friends and country, they were not permitted to speak their own language and could only speak English, if they did speak their own language they were severely punished. They had to dress and behave like white people. They were displaced, their whole culture was stripped from them, they were put into a situation on a cultural level to survive, and were totally at the mercy of the white people.My Grandfather is an Anthropologist (Gary Watson) and has spent the last 8 years in Western Australia working with the Wadjarri Yamatji tribe. In the Wadjarri language Yamatji roughly translates to Aboriginal. One of his friends from the tribe is a memb er of the stolen generation and gave my grandfather some examples of the cultural displacement he went through; when he was first taken from his land and family he had a girlfriend, and he would constantly escape from the institution to go and see her.They would always come and take him back, he could not understand why they would want to keep him from her. He was severely punished every time he escaped but he continued to escape to go and see her. Another experience he told my grandfather was when they told him to sleep inside the house, for him this was absurd. why would he sleep inside, he had never slept inside his whole life. To this day he hates sleeping inside, even in a little tin shed when they’re out in the bush.Allot of the Aboriginals couldn’t and still cant understand why the white people would want to take them away and confine them and tell them not to be themselves. All these experiences have left a lasting impression, to this day these experiences affe ct the members of the stolen generation. Lots of the men get very angry when u bring the topic up, more so because they were done wrongly just because they were black. Bibliography Reference Material My Grandfather is an Anthropologist (Gary Watson)Spent last 8 years in Western Australia working with the Wadjarri Yamatji tribe.Horton, David, The Encyclopaedia of Aboriginal Australia, Aboriginal Studies Press, Volume 1, 1994 The World Book Encyclopaedia, World Book, North Michigan, Volume 1, 2005 The Australian Encyclopaedia, Australian Geographic Society, Sydney, Volume 1, 1988 History Books Barwick, John and Jennifer, Aboriginal Australia, Heinemann, Melbourne, 2009 Bird, Carmel (ed), The Stolen Generation, Random House, Sydney, 1998 Internet Source http://reconciliaction. org. au The Stolen Generation The stolen generation †¦. The degradation and the sheer brutality of the act of physically separating a mother from her children is a deep assault on our senses and on our most elemental humanity†¦. The stolen generation is the name given to the generation of aboriginal and Torres strait islander children that were removed from their families and placed into institutions where they were forced to forget their aboriginality. These children were then given a poor education and were sent into the homes of white Australians to be servants or labourers. The government and churches around Australia had an ignorant and uneducated view about the native aboriginals and how they chose to live. They thought that aboriginal families lived poor and unrewarding lives; they believed they were doing the right thing and were helping the children by removing them from their homes and families. They believed that aboriginal people were bad parents and that the women did not look after their children. No records were kept of the children that were taken and siblings were deliberately separated, today many people do not know where or if they have brothers or sisters out there. This had destroyed families and torn them apart. They were forced to go through the unimaginable and were treated as slaves. You and me, we were not direct causes of this. This was our ancestors. A generation before we were born. We had not yet even existed when this was happening all over Australian yet it took all these years for an apology to be given to the people of the stolen generation On the 13th of February 2008 the prime minister Kevin Rudd apologised on behalf of all of Australia for the way that the people of the stolen generation were treated. This is what he said: â€Å"We apologise especially for the removal of Aboriginal and Torres Strait Islander children from their families, their communities and their country. â€Å"For the pain, suffering and hurt of these Stolen Generations, their descendants and for their families left behind, we say sorry. â€Å"To the mothers and the fathers, the brothers and the sisters, for the breaking up of families and communities, we say sorry. â€Å"And for the indignity and degradation thus inflicted on a proud people and a proud culture, we say sorry. â€Å"

Disadvantages to Nestl S.A. for Applying International Trade - Free Essay Example

Sample details Pages: 5 Words: 1412 Downloads: 1 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? Disadvantages to NestlÃÆ' © S.A. for Applying International Trade Financial Risk NestlÃÆ' © S.A. is a Swiss multinational (MNC) food and beverage company. Due to the fact that using international trade in its business, any major event occur in the financial markets will affects its liquidities or liabilities such as currency fluctuation, interest rate, derivatives, and/or hedging, pension funding obligations/retirement benefits, banking/commercial credit, cost of capital). NestlÃÆ' © S.A. is exposed to several financial risks such as interest rate risk, foreign exchange risk Interest rate risk is defined as the risk in changes of the value in financial assets, liabilities and derivatives result from the fluctuations of interest rates. For most of the MNC companies, interest payments may become major cost incurred in their business. For instance, interest cost will increase 10% if an interest rate (5%) increase only 0.5%. Increased in interest cos t will directly affect the cash flow and profitability of the particular MNC company. NestlÃÆ' © S.A. holds a lot of financial assets, liabilities and derivatives which are sensitive to the changes of interest rate. Changes of the interest rates will negatively affect the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s financial position and also the operation of the whole company. According to Boland (n.d.), every MNC company will receive or make payment in foreign currencies every day. Thus, that company will always bears with the negative implication of exchange rate fluctuation due to some political or economic reasons. Fluctuated exchange rate will affect the value of existing assets or liabilities which denominated in term of foreign currency. Lastly, a business will become less competitive in the competitive market and result in a loss of sales and revenue. Foreign exchange risk is refer to a MNC company exposure to the fluctuated exchange rate and thus the value of investment. It is due to the reason of changes in currencyà ¢Ã¢â€š ¬Ã¢â€ž ¢s exchange rate (Sargeant, n.d.). Foreign exchange markets are volatile and are constantly alter. These alteration will affect every business which has receipts and/or payments in a foreign currency. In the other word, these receipts or payments will alter every day depending on the exchange rate. Fluctuate exchange risk is also the risk for those companies unable to forecast finances accordingly. According to Rahnema (1990), NestlÃÆ' © S.A. has factories in 86 countries which owns around 430 factories and employs more than 200,000 people around the world. The company is the world largest buyers of cocoa, sugar, cereals and many other commodities. Thus, it is important to ensure the future supply of its inputs and outputs at a predetermined price level. Any changes in the exchange and interest rates will affect the long term supply and demand of firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s products. NestlÃÆ' © S.A. is subject to currency fluctuations in terms of its transactions and translation of its financial statements. NestlÃÆ' © S.A. uses short-term hedging for trading activities. If Guarantor refuses to believe in those actions, NestlÃÆ' © S.A. will use similar interest cover ratios to alleviate such translation exposure. However, its financial condition will negatively affected if those actions fail or the currency fluctuate. Political Risk Investing in different countries whose political power can be alter over time will lead to occurrence of few risks toward those MNC companies. Governments could discriminatorily change laws, regulations or contracts governing an investment. According to Sargeant (n.d.), Political risk occurs during the time that a country changed its policy unexpectedly and that changes will negatively affect operation of the MNC company. Those policies may include trade barriers which limit international trade. Even though most of the MNC companies had applied free-trade agre ements, profits and overall success of a MNC company may also affect by the different laws in different countries. Those companies may experience uncertain revenues. In addition, other groups in host country will also take part in the political and economic decisions which will indirectly affect the operation of MNC companies. They will try to force host country government or MNC companies to conform to their view. For instance, a Beijing-based non-profit Institute of Public and Environment Affairs has generated a name list consisted 70 MNC companies which violated Chinaà ¢Ã¢â€š ¬Ã¢â€ž ¢s environmental laws. NestlÃÆ' © S.A. is one of the company stated (Gillespie Hennessey, 2010). Political decisions can influence NestlÃÆ' © S.A. for the good and the bad. For instance, those decisions able help to create or reduce demand for particular products and services. If the host countryà ¢Ã¢â€š ¬Ã¢â€ž ¢s government decides to increase taxes, consumption of that particular prod uct and sales will decrease, vice versa. Thus, business decisions are affected by political decisions. Besides, changes of president or prime minister of one country will lead to changes of the nationà ¢Ã¢â€š ¬Ã¢â€ž ¢s law which will affect the business activities. According to Mulier (2014), Swiss companies need to bind with à ¢Ã¢â€š ¬Ã…“fat catà ¢Ã¢â€š ¬Ã‚  rules which lead the country become more uncertainty. These rules require binding shareholder votes on the pay of executive and board members. Other than that, the Swiss government also setting some limitations on matter of hiring the staff from foreign countries within the next three years in year 2014. Chief Executive Officer of NestlÃÆ' © S.A., Paul Bulcke had mentioned that those limitations will negatively affect NestlÃÆ' © S.A. plans to employ about 350 employees at a new Nespresso coffee-capsule factory in Swiss. The workers works in NestlÃÆ' © S.A. in Swiss were come from more than 90 countries. Too mu ch restrictions and lengthy waiting time will affect the operation of NestlÃÆ' © S.A. Besides, board members are required electing annually and a shareholder vote can pick the chairman directly will lead to the happening of some negative consequence. This will increase the power of non-Swiss shareholders who own more than 50% of NestlÃÆ' © S.A. stock. Transform the power to shareholders will lead to a short term prospective which is obeying NestlÃÆ' © S.A. objectives. NestlÃÆ' © Zimbabwe has been operating in Zimbabwe for 55 years through good and bad time. The company target Zimbabwe as a main market in the Southern African region. In 2009, the company shut down its factory in Harare temporarily due to the reason that being interfered and harassed by local authorities (government officials and police) unannounced. This incident was happen after the company rejected to take milk supplies from Gushungo Dairy Estate which was not under contract by the company. This f arm was taken over by President Robert Mugabes family as part of his controversial land reform program. This program had targeted mainly the properties of white farmers. Nestle stopped purchasing milk supplies from Gushungo Dairy Estate after received international criticism because agreed to use the farm as a supplier earlier. This incident had affected the company operation and thus the financial position. Relationship between Nestle and President Robert Mugabeà ¢Ã¢â€š ¬Ã¢â€ž ¢s government become difficult and affect the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s business and operation in Zimbabwe. The future of Nestle in Zimbabwe become more uncertain (à ¢Ã¢â€š ¬Ã…“Nestle Reopens Zimbabwe Factory,à ¢Ã¢â€š ¬Ã‚  2010). In the earlier of 2010, government of Zimbabwe was enacted an indigenization law. According to the indigenization law, any foreign company with assets valued at more than $500,000 (SFr453, 000) must sell 51% of the share to indigenous Zimbabweans. Nestle Zimbabwe was forced to sell 51% of share to the local people. In 2011, NestlÃÆ' © be deemed by government had not met the legal deadline to sell majority shareholdings to locals. The company will face some serious consequences such as the risk of losing license to operate in Zimbabwe. Despite Nestle claimed that they had discussed with the local authorities, this indigenization policy is still an intimidation for the company. This intimidation needed to be settled to ensure that the company able to operate in Zimbabwe more certain (Ornelas, 2011). References Boland, P. J. (n.d.). Risks Involved in International Trade Finance: A Bankers Perspective. Retrieved February 24, 2015, from https://fita.org/aotm/0399.html Gillespie, K., Hennessey, D. (2010). Global Marketing (3rd ed.). Boston: Cengage Learning. Mulier, T. (2014). Nestleà ¢Ã¢â€š ¬Ã¢â€ž ¢s Brabeck Says New Swiss Rules Are Challenge for Business. Retrieved February 22, 2015, from https://www.bloomberg.com/news/articles/2014-04-10 /nestle-s-brabeck-says-new-swiss-rules-are-challenge-for-business Nestle Reopens Zimbabwe Factory. (2010). Retrieved February 28, 2015, from https://edition.cnn.com/2010/WORLD/africa/01/05/zimbabwe.nestle.factory/ Ornelas, A. (2011). Zimbabwe Puts Food Giant NestlÃÆ' © On The Ropes. Retrieved February 28, 2015, from https://www.swissinfo.ch/eng/zimbabwe-puts-food-giant-nestl%C3%A9-on-the-ropes/31283060 Rahnema, A. (1990). An Overview Of Exchange And Interest Rate Risk Management. Retrieved February 28, 2015, from https://www.iese.edu/research/pdfs/DI-0178-E.pdf Sargeant, N. (n.d.). What Risks Do Organizations Face When Engaging In International Finance Activities. Retrieved February 28, 2015, from https://www.investopedia.com/ask/answers/06/internationalfinancerisks.asp Don’t waste time! Our writers will create an original "Disadvantages to Nestl S.A. for Applying International Trade" essay for you Create order

Christian Music