Friday, January 31, 2020

Welfare Effects of a Tariff Essay Example for Free

Welfare Effects of a Tariff Essay Free trade necessarily works to the advantage of domestic consumers boosting their choice of goods and services, the quality as well as reduced prices while protectionism is considered by some to be disruptive and harmful to the efficiency of international trade besides harming consumer interests, but even so, trade has never been and may never be free. While free trade has various advantages; protectionism too has a few if not helpful, necessary benefits to a country, Feenstra Taylor (2007). These benefits are hardly set in stone and depend on manifold factors which are equally variable and thus determining the true effect of a tariff requires a case by case assessment of the effects. This essay will asses the common reasons for the use of tariffs and presents the general welfare implications of the tariff on both small countries as well as large countries. Background Tariffs are the most commonly applied ways of protectionism in trade so much so that the WTO was founded in part to create a frame work to allow countries to negotiate a reduction in tariffs in trade. A tariff refers to customs, tributes, tolls or duties, or a schedule of them, imposed by governments on merchandise imported or exported as it crosses international borders. As such every country has a separate system of tariffs as well as regulations and tariffs may take one or more of the following forms; revenue tariff, specific tariffs, protective, ad valorem tariffs as well as protective tariffs each, according to their nature or differing objectives, Pugel Peter Lindert ( 2000). Revenue tariffs are imposed by governments not to bar importation but raise revenues and are mostly imposed on goods or services with inelastic import demand. On the contrary, protective tariffs are imposed by governments to keep out imports and thusly they are set as high as can be possible to render their domestic prices uncompetitive while protective tariffs aim at reducing imports enabling local production to compete with imports. Other classifications of tariffs are based on the nature of taxes and their administration and these in clued ad valorem tariffs which are imposed as a proportion of the value of imports while specific tariffs are simply imposed on imported goods and services according to their amounts in volume, weight or number and not their values. Intuitively, the reasons for the imposition of tariffs vary from protection of infant industries in less developed countries so they can mature and compete favorably with others to other protection of jobs in developed countries, Kraus (2000). In protection of fledge ling industries commonly touted as import substitution practiced by developing countries, tariffs are imposed on goods or services with local production that the country wishes to encourage growth. This would effectively raise the domestic prices of imports thusly rendering domestic products competitive on price terms and shields them from being edged out of the market through predatory pricing which will foster maturity of those industries and facilitate the transformation of less developed economies from agricultural to industrial economies. Tariffs are as well imposed to protect domestic jobs by shielding domestic industries from foreign competition. Lack of regulations, cheap labor, deplorable working conditions and export subsidies in foreign countries would make their exports more competitive price wise and to the disadvantage of local industries who must cut costs by laying off staff. This is well evidenced with the Chinese exports to the United States and European Union and the attendant controversy. Consumer protection is often another motive for imposition of tariffs aimed at stopping goods and services that the government deems harmful to its population. In addition, countries impose tariffs on goods and services that are seen as crucial to the national security. In this, regard defense industries enjoy special treatment as they are deemed important for the interests of a nation; a good example of this includes the protection of aircraft manufacturing industries Boeing and Air Bus in the United States and Europe respectively, Yarbrough Yarbrough (1991). Tariffs have as well been used as political instruments from the days of Alexander Hamilton in protecting infant industries which used tariffs on the back of which a new nation to the 21st century America imposing tariffs on imports from politically incorrect countries. Tariffs may as well be imposed on a country’s goods if their trading partners consider them as employing unfair practices for instance export subsidies. Retaliation can as well be used to achieve a number of political ends by countries. Welfare effects of a Tariff Small Country The welfare analysis begins with the case with a small country, not geographically but one whose import policies have no considerable impact on the international terms of trade, Bowen et al (1998). The analysis is a partial equilibrium analysis considering the market for a single good or service, this assumes that the market is relatively small to have a considerable effect on other markets and thusly it is safe to ignore those interactions. In addition, the model assumes that the tariff is in fact the only one imposed or one of only a few and thusly would not be appropriate in the analysis of welfare impacts involving the implementation of numerous tariffs as would be the case in a trade round. Consider the diagram below. Fig A The diagram shows the respective demand as well as supply curves of an imported good inside a country. The world prices represented as PW are assumed to be below the domestic prices shown in the diagram as by the direction arrow. Under autarky the quantity demanded from domestic production of good X is equal to the quantity indicated by the direction arrow between Stm and Dtm. When an autarky opens up to international trade, the domestic prices tumble to Pw so that there is an excess demand of good X in the country represented by Dft of which on Sft would be supplied by domestic producers at the prevailing world prices and as per the demand and supply curves. The consumer surplus in the country is given by the area above the world supply curve Pw but below the domestic demand curve, Pugel Peter Lindert (2000). . When a specific tariff t is imposed on good X, the world prices Pw would not be affected since a country’s imports are relatively small to have any considerable effect on the world prices and demanded quantity, instead, a tariff would have the impact of raising domestic prices by the amount of the tariff to reach Pw+t. The rise in domestic prices would induce local producers to step up their production to Stm since below this level domestic production is more efficient than foreign production. Thusly the producer surplus would rise by the area shown in the diagram by A, thus this represents a gain by domestic producers due to increased prices and a rise in production resulting from the imposition.

Wednesday, January 22, 2020

Underground Railroad :: essays research papers

One Way Trip to Freedom One hot day in 1850, a man named Jeb staggered out of the woods, looked about him to get his bearings, and plunged down a lane toward the river. He only had a few moments of freedom before he heard the baying of hounds. He splashed up to his knees in the shallow stream and wade. The dogs tried desperately to pick up the scent but the water had destroyed it. He had no time to waste. All he could think of was the North Star. That was his hope. That was where his freedom lay. (Flight to Freedom, Henrietta Buckmaster.) The Underground Railroad was a desire for all slaves. They would use the Underground Railroad when they were fed up with working for their owners to escape for freedom. The Underground Railroad is a part of my history. It has always interested me so I decided to look deeper into the history, the influential people, and the actual journey of the Underground Railroad.   Ã‚  Ã‚  Ã‚  Ã‚  Slavery had lain like a terrible sore on our country for two hundred years. Many were ashamed of it. Slave smuggling had became so profitable that the master of a slave ship could permit nine slaves out of ten to die from neglect and still lose no money. Humane men were deeply shock. They protested, and then they did more than protest they helped the Negro. The Black Africans who were enslaved fought against it from the start. Men like Thomas Jefferson, preparing the Declaration of Independence and the Constitution tried to have slavery outlawed. To abolish slavery meant to abolish profits which were astronomical, profits which were shared North and South. But to not abolish slavery struck at some of the deepest principles of Americans. For the next sixty years-until the crash of the Civil War- no issue was as important as slavery. It divided homes, it spoke for the conscience, it made political parties, it challenged religion, and it turned men into brutes and in to heroes. It created the Underground Railroad. The first slave who helped a fellow slave to escape drove the spike in this invisible railroad. The unknown first fugitive, the softly stepping men and women who dared the dangers of swamps and mountains and of cold and rain, the outstretched hands of friends, the disguises, the courage, the gunshots along the border, and a long invisible â€Å"train† which chugged so silently and sent up such invisible smoke- all these proved in the end irresistible.

Tuesday, January 14, 2020

Discipline in the Classroom Essay

â€Å"You’re nothing but a wuss. Your mama ain’t here to help you now so why don’t you stand and fight me like a man†¦. That’s right, saying nothing is going to make the situation better. You gonna go cry to Mrs. Wilson about it now? † This type of harassment in the classroom distracts the students from their main objective-to learn. Disciplinary problems in the classroom interrupt the atmosphere of the classroom, a place where learning takes precedent above all else. A tense environment detracts from learning and everyone loses. Mrs. Wilson got upset, the other school children endured constant harassment, and the children responsible for this harassment got lost in the system. Although experts cite many responses, multicultural education remains an answer that benefits both the teacher and all of the students. Disciplinary problems not only disrupt the serenity of the classroom, but if left untreated, manifest into societal problems. Violence grows as America’s answer to any problem. This trend has been growing steadily in our nation’s classrooms, and recent incidences like that of Columbine High School remind us that angry children become everyone’s problem if no one reaches out to them. cal1966, please do not redistribute this work. We work very hard to create this website, and we trust our visitors to respect it for the good of other students. Please, do not circulate this work elsewhere on the internet. Anybody found doing so will be permanently banned. Detention, suspension, and expulsion remain popular methods for dealing with discipline, but these methods serve only to remove rather than to solve the problem. Multicultural education stimulates the children to incorporate their own life experiences into what they learn and makes them active participants in their own learning process. Multicultural education serves to help bridge gaps between different classes, races, and genders. Not a seemingly easy task, drastic measures are imperative when the future of our country rests on the futures of our children. Take an eighth grade classroom located in a rural district with only three middle schools servicing the entire county. Mark and Jake, two white boys, constantly disrupted Mrs. Wilson’s Social Studies class. The situation distracted the teacher from her lesson plan, meaning that the other children’s learning fell behind their peers. Also, Mark and Jake jeopardized their own academic careers and threaten to become societal menaces. If left untreated their problems might develop into larger societal ills that hurt members of the population at large through their abuse of welfare or filling up the jails. Previously detention failed to help Mark and Jake correct their behavior, but Mrs. Wilson felt that the rest of the class should not suffer because of two members of the class. Disciplinary problems usually stem from some deeper anxiety that the children are facing. Mark’s parents work in an assembly line of a car manufacturer and net $40,000/year combined. They work long hours and spend little time with Mark after school. He takes the school bus to and from school, and he lives in a poor area of town where the houses are run down. Neither of his parents finished formal high school, although they both received GED’s. He has several younger siblings that look up to him as an example, but education is not stressed in his family. This hypothesis from studentcentral. o. uk Part of his disciplinary problem could be that he resents the fact that the state requires him to go to school. Mark sees that his parents struggle to get by, but no connection between improving his situation and education in his mind exists. People who succeed in class and come from upper-middle class backgrounds receive the brunt of his harassment. He feels resentment towards these students because he feels that he tries hard but society and good fortune still shun him. Jake’s parents come from working class backgrounds, and he lives in an area that is close to Mark’s house. His parents experienced marital problems lately. They fight constantly, and his one younger sister also experienced problems in school. His father graduated from technical school and works as a mechanic in a local garage, and his mother works at Kroger. His disciplinary problems relate to the fact that his parents fight a lot and offer to get into screaming matches. With so much tension in his home he feels the need to lash out at someone, and conveniently finds other students to harass-students who he already resents because of their higher social status. His disciplinary problems started about the time that his parents started having problems. However, his parents failed to communicate their problems on to Mrs. Wilson, so she understands little about the reason for Jake’s disciplinary problems. cofb fbr sefbfbw orfb fbk infb fofb fb. Mrs. Wilson, a 35-year old white teacher, became exasperated because Mark and Jake refused to respond to what she viewed as adequate attempts to reach them. They reserve their harassment for children who identify with the pper-middle class or excel in schoolwork. Because she experienced no contact with either set of parents, she remained unaware of the home problems that contribute to Mark and Jake’s frustration with the school system. Her training also left her unprepared to deal with types of children who shrink away from contact with other people. The boys consistently under-perform in all their subjects. Although they received extra help in the past, they refused to take an active inter est in learning, and instead tried to disrupt class time. Mrs. Wilson gave them extra help by working with them during class, and also assigned group partners to them, but the hostility the boys exhibited towards their partners made the working environment tense. They also disrespected Mrs. Wilson, and she felt like she lost all control because they refused to listen to anything she said. They removed themselves from the social scene of the school and appeared to not trust anyone but themselves. The harassment of other students needs to stop because everyone suffers in this situation. All the students fail to get to as much information as other classes with no disciplinary problems. These students will then experience a disadvantage next year when they compete against students from other classes. Also, Mark and Jake acted out and created this disturbance in class for some reason. If Mrs. Wilson fails reach them then their class disturbances might turn into societal disturbances. The importance of the situation remains for all involved to receive some help. This hypothesis from studentcentral. co. uk Mark and Jake’s harassment needs to stop for the benefit of all involved. Multicultural education ensures that every child receives a proper education and an equal chance of success later in life. Like a runaway effect, the problems snowball setting students back and preventing them from attaining success in schools and jobs. In a multicultural setting ideally all the students express their individual voices in the class and its pedagogy. Multicultural education address typical disciplinary problems because the themes that of the process builds around active thinking by the students themselves about the world around them. Multicultural education helps remedy this situation, because everyone’s culture needs to gain acknowledgement by the teacher. However, since limited diversity exists in the classroom, Mrs. Wilson tries to incorporate other cultures as well to make all her students more accepting and understanding of everyone’s lifestyle. Although the classrooms contain relatively new textbooks, they should be discussed critically in class so that the students feel like active participants in their own education. Mark and Jake may be acting out because they feel a lack of control over their own education and their situation in life. Mrs. Wilson realized she had failed to stimulate stimulating them enough, and so they act out to try to grab attention. Rather punish these students, Mrs. Wilson tries to understand their motives and then to try to help them in whatever way the teacher deems possible. This hypothesis from studentcentral. co. uk Nieto writes, â€Å"all teachers can become role models for all students as long as they are understanding, caring, and informed. One way in which teachers can build substantial relationships with students is by offering help to those who do not seek their aid† (331). Mark and Jake try to get attention by lashing out. Mrs. Wilson must dig deeper than usual to get at the root of the problem if she wants to help them. Mrs. Wilson reaches her students through multicultural education. Her determination to reach students who have been labeled as â€Å"problem children† determines the rest of their scholastic careers. For her first step, Mrs. Wilson reevaluates whether her accusations about the children’s behavior warrants concern. Her actions could stem from her preconceived notions of lower, working class families since the children causing the disturbance are poorly dressed and do not have the best hygiene. If Mrs. Wilson holds any bias then she needs to address her own personal bias so that the children do not suffer from her one-sidedness. coce cer sececew orce cek ince foce ce! Once Mrs. Wilson ascertains that these children pose a serious disturbance in her classroom, then her objective reworks itself into new inventive ways. The benefits of conventional negative reinforcement seem to not pose any threat to Mark and Jake, so perhaps she can try positive reinforcement. Also, if she practices what Nieto outlined as a multicultural classroom (p. 05) then she creates an environment where the children feel comfortable approaching her. Perhaps by gaining their confidence she then determines the root of their discipline problems. Before implementing multicultural education, Mrs. Wilson first identifies the reason for Mark and Jake’s outbreaks in class. Until now she treated them as regular problem children, but since none of the conventional disciplinary methods worked, she needs to sort out the root of the problem. Their problems at home cause their harassment of their peers. However, since the parents fail to return phone calls, Mrs. Wilson writes them and requests that they come in for a parent/teacher conference. If this measure fails to get the parents to school, then she plans to go visit them in their home. Because the parents are usually busy, there do not often communicate with the school. If the school approaches the parents in a non-threating manner, then perhaps the parents shed some light on their sons’ behavior problems. With more parental involvement, the boys feel more pressured to shape up. The home environment remains difficult to overcome, especially without the parents’ help. However, Mrs. Wilson needs to make the effort to at least try to contact them so that she has more input to correctly identify the reason Mark and Jake are acting out. Nieto writes â€Å"teachers can encourage parents to give their children jobs at home, and then support them when they do† (328). Maybe if Mark and Jake feel more important at home then they lose the urge to act out at school. Another method Mrs. Wilson employs to draw in outside resources for her classroom involves meeting with Mark and Jake’s other teachers. Outside input also influences learning because if she experienced disciplinary problems in her class the boys probably act out in all of their classes. By calling a meeting with everyone involved, the teachers might be able to trace commonalties between all of the disciplinary outbreaks. If they see what sets the boys off then they prevent cause of the harassment, or at least create an opportunity to talk to the boys about their behavior. If the teachers pinpoint the cause of the boy’s disciplinary problems within the classroom, then they know how to solve the problem more effectively. A reason for their frustration within the classroom stems from the fact that Mark and Jake feel left out of the education process. If Mrs. Wilson’s teaching style revolves around lectures they become bored and act out because of their boredom. The difficulty lies in making students pay attention in the classroom if their families devalue education at home. The teaching style induces no stimulation for them to want to learn. By using multicultural education, Mrs. Wilson aims to instill a love of learning in the students. Perhaps if Mrs. Wilson incorporates other methods of learning like hands on learning, group projects, or presentations by students for the rest of the class then she receives more positive behavior from all her students. If she can relate the student’s life and how education increases knowledge, then she makes not only Mark and Jake realize the importance of education in their lives but the importance of education to all of her students’ lives. Mrs. Wilson tries to incorporate other multicultural ideas in her lesson plan in order to accommodate the behavior of Mark and Jake. When they cover the holocaust she shows them Schindler’s List to illustrate its impact on the Jewish people. Movies help show history in vivid detail, and the brutality of the film helps bring this terrible period in history to light. This helps her students realize that other people endure suffering, and by showing them a real example of suffering they might feel more compassion for others. She also shows that other groups have suffered more than her students. The suffering that their class endures pales in comparison to the plights of other ethnicities. When Mark and Jake see the brutality of war and the horrible consequences of fighting, they realize other methods for solving their internal conflicts exist. Mrs. Wilson also engages the students in a unique manner that tries to draw their attention onto examples that shape our modern day world. Examples that relate to the student’s lives impact students more forcefully instead of assigning them reading and expecting them to pick up all the material. By relating the assignments in class to their every day lives she shows them examples of how education better their own situation. The learning becomes much more personal and effects them more. Mrs. Wilson also changes the structure of her class. If she includes more history about the working class and their importance in situations like the Industrial Revolution, then she makes all the students from working class backgrounds feel more important and a sense of pride in their heritage. Nieto writes that teachers can â€Å"use the experiences and understandings her students bring to class rather than an exotic or irrelevant curriculum† (338). She needs to uphold and validate their culture because Mark and Jake feel like their culture contains no importance and that could be a reason for their lashing out. The punishments that the boys get assigned could take a more inventive twist in order to quelch their behavior. If assigned community service Mark and Jake see that many others in their community undergo more hardship then their families. Nieto also writes â€Å"opportunities for after-school work or community service can be provided in much more substantial ways than they currently are† (328). The boys gain a perspective on their own problems by comparing them to others less fortunate. Such epiphanies might improve their behavior in the classroom. Multicultural education starts in the classroom but affects a wide array of social problems. Discipline, if left untreated, expands into larger social ills, where the perpetrators leech off of everyone. The plague on society takes the form of welfare and jails where taxpayers bear the responsibility for those who refuse to help themselves. This societal failure can be avoided by trying to reach these children earlier in their academic careers so that they experience success later in life. Multicultural education remains the best way to retain those borderline students who otherwise get lost in the system. Mrs. Wilson employs many methods to try to reach Mark and Jake before they lose complete interest in school. First she tries to determine the root of the problem so that she knows the exact problem she is dealing with. Talking to the parents and other teachers gives a more comprehensive view to the situation. Once the boys’ frustration surfaces, Mrs. Wilson incorporates different teaching aspects into her lesson plan. Engaging the students makes them more interested in their education and lessens their tendency to act out. Relating the real world to their own lives makes them more involved members of society. Mark and Jake symbolize children whose problems generally run deeper than most teachers suspect. Multicultural education helps make these boys and all of the students in the classroom more productive members of society. If the boys stay off welfare then our tax dollars go towards improving other facets of life. The boys also become taxpayers who contribute to the solution rather than the problem. Without some intervention, children like Mark and Jake plague American society and benefit no one, including themselves. Hatred makes a disastrous problem that needs to be solved immediately, and multicultural education is one answer to that problem.

Monday, January 6, 2020

How to Calculate Activation Energy

Activation energy is the amount of energy that needs to be supplied in order for a chemical reaction to proceed. The example problem below demonstrates how to determine the activation energy of a reaction from reaction rate constants at different temperatures. Activation Energy Problem A second-order reaction was observed. The  reaction rate constant at three degrees Celsius was found to be 8.9 x 10-3 L/mol and 7.1 x 10-2 L/mol at 35 degrees Celsius. What is the activation energy of this reaction? Solution The  activation energy can be determined using the equation:ln(k2/k1) Ea/R x (1/T1 - 1/T2)whereEa the activation energy of the reaction in J/molR the ideal  gas constant 8.3145 J/K ·molT1 and T2 absolute temperatures (in Kelvin)k1 and k2 the reaction rate constants at T1 and T2 Step 1: Convert temperatures from degrees Celsius to KelvinT degrees Celsius 273.15T1 3 273.15T1 276.15 KT2 35 273.15T2 308.15 Kelvin Step 2 - Find Ealn(k2/k1) Ea/R x (1/T1 - 1/T2)ln(7.1 x 10-2/8.9 x 10-3) Ea/8.3145 J/K ·mol x (1/276.15 K - 1/308.15 K)ln(7.98) Ea/8.3145 J/K ·mol x 3.76 x 10-4 K-12.077 Ea(4.52 x 10-5 mol/J)Ea 4.59 x 104 J/molor in kJ/mol, (divide by 1000)Ea 45.9 kJ/mol Answer: The activation energy for this reaction is 4.59 x 104 J/mol or 45.9 kJ/mol. How to Use a Graph to Find Activation Energy Another way to calculate the activation energy of a reaction is to graph ln k (the rate constant) versus 1/T (the inverse of the temperature in Kelvin). The plot will form a straight line expressed by the equation: m - Ea/R where m is the slope of the line, Ea is the activation energy, and R is the ideal gas constant of 8.314 J/mol-K. If you took temperature measurements in Celsius or Fahrenheit, remember to convert them to Kelvin before calculating 1/T and plotting the graph. If you were to make a plot of the energy of the reaction versus the reaction coordinate, the difference between the energy of the reactants and the products would be ΔH, while the excess energy (the part of the curve above that of the products) would be the activation energy. Keep in mind, while most reaction rates increase with temperature, there are some cases where the rate of reaction decreases with temperature. These reactions have negative activation energy. So, while you should expect activation energy to be a positive number, be aware that its possible for it to be negative as well. Who Discovered Activation Energy? Swedish scientist Svante Arrhenius proposed the term activation energy in 1880 to define the minimum energy needed for a set of chemical reactants to interact and form products. In a diagram, activation energy is graphed as the height of an energy barrier between two minimum points of potential energy. The minimum points are the energies of the stable reactants and products. Even exothermic reactions, such as burning a candle, require energy input. In the case of combustion, a lit match or extreme heat starts the reaction. From there, the heat evolved from the reaction supplies the energy to make it self-sustaining.

Sunday, December 29, 2019

Grant s Tom Smith And His Incredible Bread Machine

America is accurately described in R.W. Grant’s â€Å"Tom Smith and His Incredible Bread Machine†. This thesis is supported by three contentions. First, the poem effectively describes the expansion of American government. Second, â€Å"Tom Smith and His Incredible Bread Machine† precisely chronicles the flow of the economy in America. Finally, R.W. Grant’s influential poem outlines a shift in American values. First, the poem effectively describes the expansion of American government. When the founding fathers created the United States Constitution in 1787, they devised a document that established America’s national government, created the country’s fundamental laws, and, ultimately, guaranteed basic rights for citizens. The carefully constructed Constitution provided an important balance between the governing styles of the controlling British monarchy and the weak, relaxed, and unauthoritative Articles of Confederation. The Constitution provi ded three branches known as the legislative branch, executive branch, and judicial branch; this critical balance of powers prevented the federal government from exercising control outside of its respective boundaries. The implemented confines commendably restricted American government. The Progressive Era (1890-1920) was a period of dramatic political reform. During those thirty years the government—at the federal, state, and local level—grew in scope, power, and activism. The reason for such growth was, according to George Brown Tindall andShow MoreRelatedDeveloping Management Skills404131 Words   |  1617 Pagesbuilt-in pretests and posttests, focus on what you need to learn and to review in order to succeed. Visit www.mymanagementlab.com to learn more. DEVELOPING MANAGEMENT SKILLS EIGHTH EDITION David A. Whetten BRIGHAM YOUNG UNIVERSITY Kim S. 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Saturday, December 21, 2019

The Role of Squealer in Animal Farm Essay - 1657 Words

The first time we see Squealer is when some of the other animals question the consumption of milk and apples by the pigs. This point in the book is significant because it is the first time the pigs are seen to be giving themselves better quality food than the rest of the animals. Squealer is described in the book as a brilliant talker and persuasive. He is excitable and confuses the others with his skipping motions and whisking tail. These actions take the focus away from what he is actually saying. Squealer begins his explanation by using the word comrades. The use of this word leads the animals to believe he is talking to them as an equal; this would make the animals more likely to believe what he is saying because the animals†¦show more content†¦He goes on to imply that all animals should appreciate the sacrifice Napoleon has made in becoming their leader. He explains leadership is not a pleasure, rather it is a Deep and heavy responsibility. The syntax Squealer uses is familiar to the animals that are used to wading in deep mud doing heavy duty work. Squealer knows the other animals are not very intelligent so these words would impress the others as they know they could not carry out such a task. Squealer can be seen here exploiting one of the animals biggest flaws: their lack of intelligence and their inability to see through his shroud manipulation. He is ensuring that none of the other animals would want to be a leader. Squealer explains that Napoleon would be happy letting the other animals make their own decisions if he thought they would make the right ones following Snowball for example, would not be the right decision as far as the other pigs are concerned. The animals are lulled into a false sense of security that the pigs will look after them. This would further increase their trust in what Squealer is saying to them. However, one of the animals say Snowball was a brave pig. Squealer goes on to explain Loyalty and obedie nce are more important. This would condition theShow MoreRelatedSquealers Influence on the Outcome of Animal Farm by George Orwell628 Words   |  3 PagesTo what extent does Squealer influence the outcome of the revolution in Animal Farm? â€Å"A lie that is half-truth is the darkest of all lies†, this quote by the poet Alfred Tennyson was supremely important to relate to the role of Squealer in Animal Farm. Squealer was the an allegorical figure who spreads all of Napoleon’s propaganda, including using demonstrations, which was parallel to Pravda, the official newspaper of Soviet Union. In Animal Farm, Squealer was known for his friendly, disarmingRead MoreThe Role of Propaganda in Animal Farm1255 Words   |  6 PagesRole of Propaganda in Animal Farm The novel, Animal Farm, is a well-known allegory written by George Orwell. 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Friday, December 13, 2019

Organic food sector Free Essays

string(45) " to natural or naturally obtained materials\." This document is an information report providing a micro and macro environmental analysis of the organic industry. It gives specific attention to the European and German market and to the retail industry in particular. A brief introduction, also focusing on the reasons and criteria for the selection of such sector, will be followed by an assessment of the aspects at the micro and macro level that affect the players operating in it. We will write a custom essay sample on Organic food sector or any similar topic only for you Order Now To facilitate the analysis I will pretend that the writer of the following report is a manager operating in the broader food industry. Since we operate in the food retail industry, both nationally (Germany) and on the European level, I suggest, as sales director of this company, to consider entering the organic branch, since it has been growing steadily in the last 2 decades. Organic farming can be regarded as method of production that gives particular attention to environmental protection and animal welfare, thus avoiding the adoption of synthetic chemical means and the production of genetically modified organisms. The industry is highly regulated, requiring producers to acquire special certification to sell goods as organic within given borders. The market has been growing steadily, as suggested above, and is still doing so despite the economic and financial crisis; it grew globally by more than 25 per cent since the start of the global crisis between 2008 and 2011. According to the latest data (Fill and ‘FOAM, 2013), 37. Million hectares of agricultural land are nowadays organic (they were 11 million only in 1999) and 1. 8 million producers world-wide are reported (from 252 thousand in 2000). The global sales have also seen a dramatic increase, climbing by almost 200% in the last 10 years. Although this industry accounts only for 1-2% of the total food production globally, almost 10% of the total food sales share is covered by it. Fig 1 . Organic agricultural land by region, 1999-2010 Despite the number of producers and retailers, as I will elucidate later in this report, has been increasing year after year in order to cover the high demand for this kind of rodents (mostly driven by concerns about private health on one hand and the global environment on the other), I believe there are still good opportunities for ambitious firms to enter – at any point of the supply chain – this relatively new and steadily expanding market. . Macro environmental analysis The environment where firms operate includes several forces that affect their activity, from the acquisition of resources, through the process of transformation of such input, and finally to the creation of an output. The more external forces (general or contextual, such as political, cultural, social and legal) are the ones influencing the rim in a more general way, as opposed to the operational ones, which affect the business on a daily basis (Ian and Christ, 2006). In this part I will refer to the external range of influences and observe how these can have an impact on the organic industry. As said, the focus will be on the European market and on Germany, which represents the biggest player in the E area and the second largest globally. Selection of factors To carry out this task I have asked my team of analysts to perform a Pestle analysis, which takes into account political, economic, socio-cultural, technological, legal and environmental aspects. It is usually performed by almost every major and minor organization in order to get an overview of the whole scenario of a particular industry or branches of it. Of course the elements considered vary in importance based on the industry and the goods involved. In the organic sector’s case, the socio-cultural, political and legal aspects are particularly crucial and the report will give a particular attention to these; in addition, other factors not (directly) included in Pestle but that it is important to mention when analyzing this particular industry, are the demographic and regulatory ones. Environmental issues also represent a major concern. 2. 1 Specific macro-factor analysis 2. 1. 1 Political factors These basically represent to what extent the government (local, national or supra- national) intervenes in a particular industry. Demand for bio products and the growing popularity of organic farming within Europe has fostered the development and implementation – through the European Commission, The EX. Council and the EX. Parliament – of official rules, programmed and plans. This level of action is closely related to the regulatory one, which will be more thoroughly addressed in the section following this one. The most relevant document to mention in this part is the â€Å"European action plan for organic food and farming†, which comprises 21 initiatives in order to develop the market and get better standards by increasing transparency, reliability, efficacy and consumers’ trust. Also at the national level many governments have been providing their plans and policies in order to support the growth and efficiency of the organic industry. In Germany, for instance, the range of governmental assistance in the last decade has increased significantly both through the Federal Government and the Leander; the measures are directed both to organic agriculture and to the whole supply chain (Nibbler and Kenneth, 2007). Environmental objectives, as well as the opportunity for rural development, are the main goals of the government’s financial, legal and regulatory support for operators dealing in this industry. 2. 1. 2 Legal and regulatory factors The political intervention in the industry is, as discussed, very present and fundamental for its growth. Although it might benefit the overall sector, the high level of laws and regulations represent nonetheless a potential barrier for new entrants. In 2009 the EX. introduced new regulations regarding the production, control and babbling of organic goods. These put an ever bigger attention to environmental, animal and consumer protection and health. For instance, food can be sold as organic only if 95% of its ingredients derive from organic agriculture and processing. Closed cycles (using internal resources) are favored to open cycles; external resources should be limited to natural or naturally obtained materials. You read "Organic food sector" in category "Food" Only in exceptional cases, thoroughly evaluated by the European Commission, chemical synthetic resources may be allowed if other suitable alternatives are not available. 2. 1. 3 Economic factors Europe has, according to the Research Institute of Organic Agriculture, 25% of the world’s organic farmland, but it represents almost half of the global revenue within organic industry (the American market is still the world’s largest). Sales of organic products were approximately 21. 5 billion Euros in 2011 (Fill, 2013). The largest market for organic products is Germany, with almost 7 billion Euros (Nielsen and Braun, 2013), followed by the I-J (3 billion Euros), France and Italy (both 2 billion Euros). Fig 2. Sales growth of German market in 2012 The German market grew by 6% in 2012 up to 7. 04 billion Euros, showing a stable Roth and representing 3. 9% of the entire food market; the increase in the previous year had been even higher (9%), influenced by several food scandals that drove more and more consumers from conventional food to bio products. Fig 3. Sales growth from 2000 to 2012 Fig 4. Organic food sales in Germany (2012) 2. 1. 4 Socio-cultural factors (and demographic ones) A growing number of people are nowadays more informed, health- and environment- conscious than ever; they are thus willing to spend more on healthy natural foods, since there is widespread public belief that organic food is much safer, more atrocious, and environmental friendlier than conventional food. In any case it is important to note that â€Å"regardless of whether any measurable health benefits exist from consumption of organic produce, the public perception of health gains associated with organic produce is undoubtedly influenced by statements that are not (yet) able to be supported by scientific evidence. † (Givens, 2008). Demography also plays a very important role in an increasingly aging Europe; in Germany (one of the countries with the lowest birth rate), the typical heavy consumer of this kind of rodents is in his mid ass (thus belonging to the generation of the forerunners of the ecological movement in this country) and with a good income level. Young consumers, such as students and entry level workers, tend to opt for more affordable options. The market is slowly opening to 30+ customers, mostly young professionals fond of a healthy and dynamic life-style. . Micro environmental analysis This section of the report will mainly focus on Porter’s â€Å"5 forces analysis†, concentrating the analysis on those factors that can more directly influence the daily activities of a firm operating in the organic industry, affecting its ability to satisfy its customers and make a profit. As the producers’ scenario is particularly fragmented, the study will give particular attention to the German retail industry and often assume the perspective of the five largest specialist retail chains operating in it. Three forces relate to ‘horizontal’ competition, such as the threat of substitute products or services, the threat of established rivals, and the threat of new entrants; the two remaining forces represent ‘vertical’ competition: the bargaining power of suppliers and the one of customers. . 1 Threat of established rivals (intensity of competitive rivalry) In Germany organic products are sold as follows: 35% in traditional supermarkets (around 40. 00 shops) 23% in specialist shops (around 2000 shops; there are 17 organic supermarket chains, the 5 biggest are Lunar, Vital, Den’s Bio, Basic and Redford). 19% in discounts supermarkets (more than 10. 000 shops) Fig 5. Number of specialized organic outlets in Germany (2008) It is therefore clear that, despite being this sector quite young, the number of actors operating in it is very high; this great level of rivalry determines a high threat to profits. It is furthermore important to note that these operators vary consistently in cost structures and have different levels of exit barriers; bigger, traditional retailers/ wholesalers (such as Metro, Rowe and Deeds) have an advantage in terms of economies of scale, although they will have to face stronger exit barriers, considering the amount of their investments. According to recent research (Bifocal, 2010), the further development of the specialized organic market sector will see a decrease in terms of market share in favor of traditional supermarkets; nevertheless, the overall turnover will increase. This is mainly due to the fact that specialized retailers can provide a wider range of products, a more regular supply, competent staff and the availability of non-foods items as well. 3. 2 Threat of new entrants The highest threat is represented by traditional supermarkets with re-branding strategies towards the organic sector, since completely new entrants would face and be discouraged by very strong entry barriers in terms of capital requirements, economies of scale, amount of regulations, experience curve and access to key inputs. The resulting threat to profits can therefore be regarded as medium. 3. Threat of substitute products There are not many direct substitutes for organic food and as long as a large portion of the public will be convinced that it is safer, healthier, more nutritious and even tastier than conventional one, its higher prices will be Justified and the branch will maintain if not increase the market share. Nonetheless, local farmers’ markets provide a good alternative for individuals fond of food with no pesticides and with a low environmental impact; even so, their prices are not rarely higher than the ones offered in supermarkets (even if specialized) and their presence on the territory is ere scarce. There are some products and services that could be listed as indirect substitutes, since they also help satisfy the desire of a healthier and CEO-friendly life- style. Fitness centers, wellness programs and sustainable tourism are Just some of these. Despite this, it is important to stress the fact that nutrition is usually regarded as the most crucial factor when it comes to choices taken by consumers in order to improve their personal health and reduce the negative effects on the environment. The resulting level of threat to profits from substitute products can again be regarded as medium. 3. Bargaining power of buyers Consumers’ power in this industry is mostly influenced by the following factors: Price sensitivity Buyers are ready to spend more than on conventional food provided that this is justified by higher levels of quality, freshness, taste and the certainty (provided by certificates and labels) that the production and packaging of goods respect specific standards and norms. Despite this general observation, discount supermarkets have been lately offering similar products to the one displayed in specialized chains for sensibly lower prices, alerting customers that a similar quality can be obtained also or half of the usual price. Price sensitivity is therefore increasing. Information availability This kind of consumer is usually extremely educated and informed and consequently expects a high level of transparency, as well as being well aware of the different alternatives available in order to satisfy his demand. Degree of dependency upon existing channels of distribution Buyers have been increasingly attracted by the offers displayed in the Internet through more or less specialized organic e-shops. This could represent a potential threat (as well as an opportunity for further investment), although most consumers till rely on traditional channels, offering, among other services, the availability of competent and specialized staff. Availability of substitute products See above The resulting level of threat from this force can be regarded as medium to high. 3. 5 Bargaining power of suppliers Contrarily to the US market, where suppliers are extremely concentrated (with local farmers often signing contracts with big corporations) and represent the real dominant power in the organic industry, in Europe they are still very fragmented. They do not represent a big threat for the retail industry. It is furthermore not likely for suppliers to tend towards forward vertical integration. The resulting level of threat from this force can be regarded as low to medium The above mentioned observations can be summarized in the following table, which underlines the micro environmental factors within the organic (retail) industry and their level of threat. Fig 6. Porter’s five forces summary 4. Further relevant specific market issues: recent developments in the target market Researchers Budded and Ham (2011) observe that the traditional parameters necessary to define the usual buyer of organic products (e. . Level of income and education, age, as indicated above), have almost completely lost their previous importance in the last few years; the authors have thus come to the conclusion that marketing campaigns should concentrate on health-orientated specific needs, underlining the naturalness of goods and their lacking of chemically produced ingredients. How to cite Organic food sector, Essays