Comparing Satire in Babbitt by Sinclair Lewis and The Simpsons Essay

The Power of jeering in Babbitt and The Simpsons Sinclair Lewis used his writing to promote the enrichment of American association by attacking the weaknesses he perceived in his era. His most notable work, Babbitt, is a satire on the middle degree lifestyle and attitude of the 1920s. Lewis satiric style and voice is comparable to the modern television series The Simpsons, written by Matt Groening. Babbitt and The Simpsons contain legion(predicate) similarities in satirical writing, intro and commentary. Matt Groening satirizes many modern situations with his style and characterization in The Simpsons that be similar to the conditions in Babbitt. The Simpsons represent the pinnacle of how Lewis opinions are still alive in todays world. Lewis uses both the effects of direct and indirect satire. Lewis is a realistic satirist who, like many others, can ...utilize their vast firsthand knowledge of the material they tell and their sensitive ear for dialogue to s upport the illusion of reality (Feinburg 61). Lewis firsthand knowledge is seen with the use of the minister microphone Monday in Babbitt, which is a satirical poke at the minister Billie Sunday of his time which would be unknown to him unless he knew the current events of his era. Lewis first presents an obviously wild end idea through a foolish character, then has it refuted by an outside voice of reason, only to have the original character praise and present the idea until he in all probability fails or realizes his blunder (Feinburg 92). This type of interaction can be seen in Babbitt through a conversation in the midst of George and Myra. Babbitt begins by fend for his new found liberalism and denouncing the Good Citizens Leagu... ...to the greatest ongoing modern satire of our time (Whitbourn and Kim 1). The two shall never be bury as their sayings, Oh by gee, by gosh, by jingo, and Doh will continue to ring out of Americas middle class forever (Lewis 13). Works Cited Carlisle, Henry C., ed. American Satire in Prose and Verse. new-fashioned York random House, 1962. Feinburg, Leonard. Introduction to Satire. Ames, Iowa The Iowa State University Press, 1967. Groening, Matt. The Simpsons A Complete Guide to Our Favorite Family. Ed. Ray Richmond. New York HarperPerrenial, 1997. Kim, James, and Cade Whitbourn. The Simpsons. Matt Groening. 1998. School of Media and Communication. 23 Nov 2002. <http//mdcm.artsunsw.edu.au/Students98/WhitbournC/innovate1/creator.html>. Lewis, Sinclair. Babbitt. 1922. New York Signet Classic, 1998. Comparing Satire in Babbitt by Sinclair Lewis and The Simpsons EssayThe Power of Satire in Babbitt and The Simpsons Sinclair Lewis used his writing to promote the enrichment of American society by attacking the weaknesses he perceived in his era. His most notable work, Babbitt, is a satire on the middle class lifestyle and attitude of the 1920s. Lewis satirical style and voice is comparable to the modern television series The Simpsons, written by Matt Groening. Babbitt and The Simpsons contain numerous similarities in satirical writing, presentation and commentary. Matt Groening satirizes many modern situations with his style and characterization in The Simpsons that are similar to the conditions in Babbitt. The Simpsons represent the pinnacle of how Lewis opinions are still alive in todays world. Lewis uses both the effects of direct and indirect satire. Lewis is a realistic satirist who, like many others, can ...utilize their vast firsthand knowledge of the material they describe and their sensitive ear for dialogue to support the illusion of reality (Feinburg 61). Lewis firsthand knowledge is seen through the use of the minister Mike Monday in Babbitt, which is a satirical poke at the minister Billie Sunday of his time which would be unknown to him unless he knew the current events of his era. Lewis first presents an obviously dead end idea through a foolish character, then has it refuted by an outside voice of reason, only to have the original character praise and defend the idea until he likely fails or realizes his blunder (Feinburg 92). This type of interaction can be seen in Babbitt through a conversation between George and Myra. Babbitt begins by defending his new found liberalism and denouncing the Good Citizens Leagu... ...to the greatest ongoing modern satire of our time (Whitbourn and Kim 1). The two shall never be forgotten as their sayings, Oh by gee, by gosh, by jingo, and Doh will continue to ring out of Americas middle class forever (Lewis 13). Works Cited Carlisle, Henry C., ed. American Satire in Prose and Verse. New York Random House, 1962. Feinburg, Leonard. Introduction to Satire. Ames, Iowa The Iowa State University Press, 1967. Groening, Matt. The Simpsons A Complete Guide to Our Favorite Family. Ed. Ray Richmond. New York HarperPerrenial, 1997. Kim, James, and Cade Whitbourn. The Simpsons. Matt Groening. 1998. School of Media and Communication. 23 Nov 2002. <http//mdcm.artsunsw.edu.au/Students98/WhitbournC/innovate1/creator.html>. Lewis, Sinclair. Babbitt. 1922. New York Signet Classic, 1998.

Making Planned Giving Work For You :: essays research papers

Making Planned Giving Work For YouPlanned giving strategy tips for each organizationLawrence Henze,J.D.,Managing Director,Blackbaud AnalyticsGolden Age of Philanthropy Ameri send words will transfer at least $41 trillion between 1998-2052,according to a study 1 by theSocial Welfare Research Institute at Boston College.At least $6 trillion of that funding will bebequests to charity,according to authors Paul Schervish and John Havens,who wrote that agolden age of philanthropy is dawning.With so many philanthropic dollars up for grabs,nonpro &64257ts need to position themselves tocapture a share of the wealth.Research from the National Committee on Planned Giving 2 showsthat although 42 percent of Americans have wills,only just about nine percent have included charities.But once charities are included,they hold up97 percent said they had not revoked a charitableprovision.An additional 14 percent of those surveyed said they had considered including acharitable bequest in their wills in time though no nonpro &64257t has asked them to do so.This leavesa largely untapped market.About Planned GivingPlanned giving,once called deferred giving,refers to any charitable gift that requires muchthought and planning to execute than the average donation.Planned giving has traditionally beende &64257ned as the gift that an individual makes near the end of his or her lifetime.There are manykinds of mean gifts,from simple bequests in a will or an estate plan,to annuities,charitableremainder trusts,charitable lead trusts,pooled income,life insurance and life estates.Nonpro &64257ts often have trouble securing plan gifts.Why?The serve up generally boils down tofour basic factorstargeting the wrong prospects,sending the wrong appeal,asking too late andsoliciting planned gift prospects for major gifts instead so the organization can get the moneymore quickly.Many charities assume that their major gift donors will be their best prospects for planned gifts.When these solicitat ions fail,organizations are left with the impression that planned giving isjust not right for them.Other organizations send broad-based planned giving mailings to olderWhite PaperExecutive SummaryDeveloping a successful planned giving program can be a complex undertaking.But it is one that is well worth the trouble.Extensive research has shown that planned giving is about lifestyles and loyalty,not wealth.Many organizations still think theyhave to &64257nd the millionaires in their database to secure planned gifts.The trutheveryone in your annual fund program hasthe potential to be a planned giver.This means you have more control over the process than you think.Equipped with solidinformation and the right marketing strategy,your organization can build a successful planned giving program.

Criticism of William Shakespeares Romeo and Juliet Essay -- Romeo and

Criticism of Romeo and JulietIn Romeo and Juliet, love serves as the tragedy. According to critic Denton J. Snider, love, the sensation of the Family, in its excess destroys the Family though it be the origin and bond of the domestic institution, it now assails and annihilates that institution. The love of Romeo and Juliet for one another, not only destroys their families, but ultimately destroys them as well. Their love and devotion for one another causes them to rebel against the institution of family. All in all, love, which is the emotional ground of the Family, is here destroying the Family itself (Snider). Among the Capulet and Montague families, why does the persistent rebellion among the children endure? Supposedly, the feud is fueled solely by their parents strife however, it is clear that the children are brought into the picture and are victims of Veronas violent social climate. Shakespeare critic, Coppelia Kahn places furiousness on the parents lack of direct ion in their childrenInstead of providing social channels and moral guidance by which the energies of the youth can be rendered beneficial to themselves and society, the Montagues and the Capulets make weak gestures toward civil peace while participating emotionally in the feud as much as their children do. While they blend in to exercise authority over the younger generation in the streets, they wield selfishly and stubbornly in the home. As in Shakespeares England, Verona was a very(prenominal) patriarchal society, and women had little place there, but to tend to the home. Men must bear and fight for their family name, while women bear the children and see to the men. Kahn points out that Veronas daughters have, in effect, no adoles... ...w York. Copyright 1969.Reiff, Phillip. Politics and the Individual. Freud The Mind of the Moralist. www.english.upenn.edu/afilreis/502/rieff.html,. Chapter 7. 1959.Snider, Denton J. Romeo and Juliet, in his The Shakespeare Drama, a Commentary The Tragedies, Sigma Publishing Co., 1887, pp. 36-78. Reprinted in Shakespearean Criticism, Vol.5.Stone, Lawrence. The Family, Sex and Marriage in England 1500-1800. saucy York Harper and Row Publishers, 1977.Simpson, JA and ESC Weiner (prep by). Oxford English Dictionary Volume V, Second Edition.Clarendon Press. Oxford. Copyright 1989.U.S. Bureau of the Census. Current Population Reports, P20-515 Household and family characteristics March 1998 (Update) and earlier reports. www.census.gov/ universe of discourse/socdemo/hh-fam/htabHH-1.txt, and www.census.gov/population/socdemo/hh-fam/htabFM-1.txt.

The Road Essay -- Literary Analysis, McCarthy

In Cormac McCarthys novel The Road the man and the son refer to themselves as the good guys compared to the bad guys. While reading this book I was lead to believe that the boy is truly the only good guy left, because the man and every other character that I encountered in this book dowry some of the same qualities as the bad guys. The boy constantly begs his father to be sympathetic and charitable to the drifters that they encounter on the road, but the father usually refuses or either puts up an argument before finally giving into the boy, and handing over one or two cans of food to the stranger. Although the man is in endurance mode, he expresses no compassion for humanity and thitherfore represents the bad guys. They came upon him shuffling along the road before them, dragging one leg slightly and tenia from time to time to stand stooped and uncertain before setting out again.(McCarthy 49). They followed him a good ways but at his pace they were losing the sidere al day and finally he just sat down in the road and did not get up again.(McCarthy 49). He was burnt feeling as the country, his clothing scorched and black. single of his eyes was burnt shut and his hair was but a nitty wig of ash upon his blackened skull.(McCarthy 49, 50). What is wrong with the man? Hes been struck by lightning. Cant we alleviate him? Papa? No. We cant help him. The boy kept pulling at his coat. Papa? Stop it. Cant we help him Papa? No. We cant help him. Theres nothing to be done for him. They went on. The boy was crying He kept looking back. (McCarthy 50). I was agitated with the man during this part of the novel, because I feel that he should have at least stopped and checked on the fee... ...he thought it was salmon pink or about goodness. Things that hed no longer any way to think about at all. (McCarthy 129,130). The man still shows acts of kindness towards strangers here and there in hopes that the boy will not follow in his footsteps and give up fat e as well he wants the boy, as McCarthy states it, to happen to carry the fire. This book was very interesting and pleasurable to read, I found myself intimately connecting with the characters. In some ways I found myself walking in the mans shoes, not caring about humanity, and only protecting the one most precious to him (me). In some instances I also sided with the boy clinging to the hopes of a brighter world where there is still some purity in civilization. This novel The Road by Cormac McCarthy is a true masterpiece and I root on it to anyone looking for a phenomenal read.

Copper Mountain Essay -- Environmental Issues

Its a sunny October afternoon and Im listening to the picnic gently rustle the tree tops above me. I look down into the creek as I sit here munching on more or less cashews, and I see trout gliding effortlessly through the crystal-clear water. I revel in how incredibly lush the area isalthough its been a dry summertime the ground is still moist, plants are bright and colorful, and wildlife is abound. After I finish my snack and tuck my trash away into my backpack, I continue my hike up this parcel of land that is may soon become barren with towers of steel and wire draping the landscape. I wonder to myself what will become of these fish, or the fresh low-cal water that runs into the Reeder Reservoir, the source of Ashlands drinking water.According to the Environmental Protection Agency (EPA), travel area expansions are the most ecological damaging project that an area can undertake. In a plan revision for the White River National Forest in Colorado, regarding the Copper Mou ntain Ski Resort expansion, the EPA hammers that smirch home when they say that no other land management prescription on the Forest directly results in more catamenia-water depletion, wetland impacts, air pollution, permanent plant change, or permanent habitat loss more wetland impacts and stream depletions resulted from ski area expansion and improvement than from all other Forest management activities combined, including many direct and indirect impacts that are permanent (irreversible and irretrievable). Meanwhile, skier numbers nationally have only change magnitude just two percent since 1978(source). Which begs the question, why have ski area sizes more than doubled in acreage to the tune of 107%(source)? Mt. Ashlands future expansion surely isnt needed due t... ...ts past ontogenesis and expansion of the Copper Mountain ski area as major factor in the degradation of the watershed and local water quality. Impacts include increased peak flows, increased water temperature , increased erosion and sediment transport, and decrease flow due to snowmaking activities. The USDA has taken exhaustive steps to help reduce the damage caused by the expansion at a great financial cost to taxpayers. The USDA has had to redesign all stream crossings to allow for higher stream flows and to withstand expected floods. They also performed physical modifications of the stream patterns and stream geometry to improve long term stream health. Environmental ScorecardConcerned locals first brought trouble to the Environmental Scorecard in November of 2008 after an article published in the local newspaper, Ashland Daily Tidings, appeared.

Copper Mountain Essay -- Environmental Issues

Its a sunny October afternoon and Im listening to the breeze gently rustle the tree tops above me. I look down into the creek as I sit here munching on some cashews, and I see trout gliding effortlessly through the crystal-clear water. I revel in how incredibly lush the area isalthough its been a dry summer the ground is still moist, plants are bright and colorful, and wildlife is abound. After I finish my snack and tuck my trash away into my backpack, I continue my hike up this parcel of land that is may soon become needy with towers of steel and wire draping the landscape. I wonder to myself what will become of these fish, or the fresh clean water that runs into the Reeder Reservoir, the source of Ashlands drinking water.According to the environmental Protection Agency (EPA), ski area expansions are the most ecological damaging task that an area can undertake. In a plan alteration for the White River National Forest in Colorado, regarding the Copper Mountain Ski Resort expan sion, the EPA hammers that point home when they say that no other land guidance prescription on the Forest directly results in more swarm-water depletion, wetland impacts, air pollution, permanent vegetation change, or permanent habitat loss more wetland impacts and flow rate depletions resulted from ski area expansion and improvement than from all other Forest management activities combined, including many direct and indirect impacts that are permanent (irreversible and irretrievable). Meanwhile, skier numbers nationally have only increased just two percent since 1978(source). Which begs the question, why have ski area sizes more than doubled in acreage to the atmosphere of 107%(source)? Mt. Ashlands future expansion surely isnt needed due t... ...ts past development and expansion of the Copper Mountain ski area as major factor in the degradation of the watershed and local water quality. Impacts include increased peak flows, increased water temperature, increased erosion a nd repository transport, and decrease flow due to snowmaking activities. The USDA has taken exhaustive steps to help mitigate the damage caused by the expansion at a with child(p) financial cost to taxpayers. The USDA has had to redesign all stream crossings to allow for higher stream flows and to withstand expected floods. They also performed physical modifications of the stream patterns and stream geometry to improve long term stream health. Environmental ScorecardConcerned locals first brought attention to the Environmental Scorecard in November of 2008 after an article produce in the local newspaper, Ashland Daily Tidings, appeared.

Decision Making Across the Organization

The Martinez Company has decided to introduce a new bear witness of intersection and would like to rate the costs of manufacturing through not bad(p) intensifier and labor intensifier manufacturing methods to determine which of the two methods to employ. The comforts to be used in the valuation for capital intensive manufacturing are discipline materials at $5 per unit of measurement, direct labor at $6 per unit, a variable overhead of $3 per unit, and frozen(p) manufacturing costs of $2,508,000. The value for material, labor, and overhead are summed to find the total variable cost of $14.The labor intensive values are direct materials at $5.50 per unit, direct labor at $8 per unit, a variable overhead of $4. 50 per unit, and mend manufacturing costs of $1,538,000. The research department of Martinez recommended an introductory price unit sales price of $30. Incremental change expenses are estimated to be $502,000 one-yearly plus $2 for all(prenominal) unit sold regar dless of the method used to manufacture. majuscule Intensive To calculate capital intensive estimated break-even point in annual unit sales of the new harvest-home the persona boundary line per unit and role allowance per ratio are necessary.The equivalence for function valuation account per unit is Selling Price + variable quantity Cost, or $30 + $14, for a contribution margin per unit price of $16. The equation for contribution margin ration is ploughshare Margin per Unit / Selling Price, or $16/$30, for a contribution margin ratio of 53%. The break-even point in units is metric by dividing the frigid costs by the contribution margin per unit value, $2,508,000 / $16 = 156750 units as the break-even point. The fixed costs divided by the contribution margin ratio, $2,508,000 / 53% = $4,702,500 break-even point in dollars. Labor IntensiveTo calculate capital intensive estimated break-even point in annual unit sales of the new product the contribution margin per unit and contribution margin per ratio are necessary. The equation for contribution margin per unit is Selling Price + Variable Cost, or $30 + $18, for a contribution margin per unit price of $12. The equation for contribution margin ratio is Contribution Margin per Unit / Selling Price, or $12/$30, for a contribution margin ratio of 40%. The break-even point in units is calculated by dividing the fixed costs by the contribution margin per unit value, $1,538,000 / $12 = 128,167 units as the break-even point.The fixed costs divided by the contribution margin ratio, $1,538,000 / 40% = $3,845,000 break-even point in dollars. Unit Sales record of Indifference The volume of unit sales at which the Martinez Company would be indifferent between the two manufacturing methods is calculated as Sales = Variable Costs + frozen Costs + Net Income. The value for sales is equivalent to the sales price, $30, multiplied by the number of units sold. Variable costs of $14 for capital intensive and $18 for la bor intensive are also multiplied by the number of units sold.Fixed costs were provided at $2,508,000 for capital intensive and $1,538,000 for labor intensive. Net income is assumed to be $0. The equation values for 180,000 units under capital intensive manufacturing and 240,000 under labor intensive manufacturing is the volume of units for each method to equal sales of $2,880,000, the point at which the annual unit sales volume would be indifferent. Conclusion Evaluating the costs of manufacturing help management to practice crucial decisions about methods of manufacturing that will result in hit for the business.Evaluating the capital intensive manufacturing method versus the labor intensive method provides the values necessary to need business decisions. The circumstances in which the Martinez Company would employ a capital intensive manufacturing method for the new product, based on the numbers provided in the scenario, would be if the contribution margin and per unit cost we re cheaper than the labor intensive values. In this scenario, the labor intensive values offer a smaller break-even point value for units and dollars than the capital intensive method of manufacturing.Decision Making Across the OrganizationThe Martinez Company has decided to introduce a new product and would like to evaluate the costs of manufacturing through capital intensive and labor intensive manufacturing methods to determine which of the two methods to employ. The values to be used in the evaluation for capital intensive manufacturing are direct materials at $5 per unit, direct labor at $6 per unit, a variable overhead of $3 per unit, and fixed manufacturing costs of $2,508,000. The values for material, labor, and overhead are summed to find the total variable cost of $14.The labor intensive values are direct materials at $5.50 per unit, direct labor at $8 per unit, a variable overhead of $4.50 per unit, and fixed manufacturing costs of $1,538,000. The research department of M artinez recommended an introductory price unit sales price of $30. Incremental selling expenses are estimated to be $502,000 annually plus $2 for each unit sold regardless of the method used to manufacture. Capital IntensiveTo calculate capital intensive estimated break-even point in annual unit sales of the new product the contribution margin per unit and contribution margin per ratio are necessary. The equation for contribution margin per unit is Selling Price + Variable Cost, or $30 + $14, for a contribution margin per unit price of $16. The equation for contribution margin ration is Contribution Margin per Unit / Selling Price, or $16/$30, for a contribution margin ratio of 53%.The break-even point in units is calculated by dividing the fixed costs by the contribution margin per unit value, $2,508,000 / $16 = 156750 units as the break-even point. The fixed costs divided by the contribution margin ratio, $2,508,000 / 53% = $4,702,500 break-even point in dollars. Labor IntensiveTo calculate capital intensive estimated break-even point in annual unit sales of the new product the contribution margin per unit and contributionmargin per ratio are necessary. The equation for contribution margin per unit is Selling Price + Variable Cost, or $30 + $18, for a contribution margin per unit price of $12.The equation for contribution margin ratio is Contribution Margin per Unit / Selling Price, or $12/$30, for a contribution margin ratio of 40%. The break-even point in units is calculated by dividing the fixed costs by the contribution margin per unit value, $1,538,000 / $12 = 128,167 units as the break-even point. The fixed costs divided by the contribution margin ratio, $1,538,000 / 40% = $3,845,000 break-even point in dollars. Unit Sales Volume of IndifferenceThe volume of unit sales at which the Martinez Company would be indifferent between the two manufacturing methods is calculated as Sales = Variable Costs + Fixed Costs + Net Income. The value for sales is equiva lent to the sales price, $30, multiplied by the number of units sold. Variable costs of $14 for capital intensive and $18 for labor intensive are also multiplied by the number of units sold. Fixed costs were provided at $2,508,000 for capital intensive and $1,538,000 for labor intensive.Net income is assumed to be $0. The equation values for 180,000 units under capital intensive manufacturing and 240,000 under labor intensive manufacturing is the volume of units for each method to equal sales of $2,880,000, the point at which the annual unit sales volume would be indifferent.ConclusionEvaluating the costs of manufacturing help management to make crucial decisions about methods of manufacturing that will result in profit for the business. Evaluating the capital intensive manufacturing method versus the labor intensive method provides the values necessary to make business decisions.The circumstances in which the Martinez Company would employ a capital intensive manufacturing method fo r the new product, based on the numbers provided in the scenario, would be if the contribution margin and per unit cost were cheaper than the labor intensive values. In this scenario, the labor intensive values offer a smaller break-even point value for units and dollars than the capital intensive method of manufacturing.

Case Study of P&G (Marketing Issues)

Case 5 P&G - Company Background Porter and Gamble (P&G), founded in 1837, is one of the biggest consumer goods guild over the world. P&G sells shampoos, baby care products, medicine and food etc. It not all diversified the product range hardly excessively the product width. Therefore, P&G has several brands under one single category but aimed with different customer segments. P&G is withal renowned for its innovative and customer-oriented approaches. For example, it designed one kind of shampoo which is suitable for Japanese.With the competitive advantages above, P&G was developing with an appealing growth rate and became one of the prime 500 companies around the world. - Why entered $2 a day commercialize segment? In the past, P&G concentrated on medium and aid market segments. From the case, it was mentioned that P&G was too big to maintain a considerable growth rate within its existing target markets. It had to enter the shadow of pyramid, the 70% untouchable potentia l customers.Therefore, P&G targeted Chinese low end markets. In former(a) words, P&G wanted to absorb Chinese surviving in countryside or second tier cities who earned around $2 per day. - Marketing issues Following P&G customer-oriented traditions, the worldwide organization also put many efforts on the new target customers. It developed a series of marketing strategies as summarized. * Customer-oriented research P&G send employees to red-hot in the rural areas in order to learn approximately the actual living style of the residents.After that, P&G found that Chinese living in countryside concerned more about the functions and the price level of the products. Besides, P&G still had more challenges to face. Firstly, the distribution channels were dispersed and small in size. Secondly, about people in the rural areas even did not contain do how to use shampoo correctly since they did not have chance to access those modern consumer goods. Moreover, P&G had to spend time on build ing mutual trust relationship with Chinese local parties as Chinese culture highly emphasised the importance of Guanxi.To attack all these challenges, P&G changed the method of packaging and developed road shows instead of its traditions TV advertisements to promote. * Packaging and prices of the products Since the new target customers but earned around $2 a day, they could not afford the normal price of its consumer goods. To solve this problem, P&G modified the packages to be used only for once in order to make the price of the products affordable for the new potential customers. * Road Shows P&G used its own promotion teams to traverse the rural areas.It had its own transportation team which decorated with its posters so that people could see the advertisements whenever the cars passed by the villages. Besides, P&G held many activities which attract people to know more about the products. In the activities, the promoters showed how to use the products to the residents. In addi tion, free samples would be distributed in order to attract the residents to try the products. It seemed that the marketing strategies were simple to implement but indeed, it spent P&G several years before it gained significant market shares in the new market segments. - Strengths of the marketing strategies P&G was successfully using the localized strategies as well as customer-oriented approach. In my opinion, as the purchasing power of the bottom of pyramid was low, what they need was purely the basic functions of the products. Therefore, the caller must learn the new target customers very well. The company hired many local employees who definitely understand the environment and living styles.Moreover, such strategies could make its promotion going deeper in the markets. Thought the number of audiences of every road show is limited, those who actual attended would get free samples. Then, they would tell their friends or relativities about how useful the products are. The effect of word-of-mouth would occur. - Problems of the marketing strategies Everything has its down side. The marketing strategies P&G used were largely required time and resources. Such high investment funds was at risk.On the other hand, since P&G had a well-known image of premium class targeted, entering the low-end markets may lead confusion to its existing customers. In other words, there may lead some losses on original area of business. - Recommendations Although in the rural area, residents earned just around $2 a day. P&G should not continue on the same strategy to them. The economy of China is growing with a high rate. Therefore, people living in countryside are expected to earn much more than current situation.The purchasing power of these customers should increase considerably in the near future. With the help of R&D center in Beijing, I suggest that P&G should start to invent some products which can fit for the change of the targeted customers. On the other hand, to avoid the confusion of brand image, I suggest P&G to launch another sub-brand names which include all the product categories aimed at this market segments. (People earned $2 a day) Differentiated positioning product should have different brand names so that

Indian River and Its Tributeries Essay

The Lohit River has derived its name because of its vigorous nature and thus it is also called the river of blood. The lateritic soil of the river forms its surrounding demography. The river flows finished the Mishmi Hills, to meet the Siang at the head of the Brahmaputra valley. The Burhidihing River is one and only(a) of the study tributaries of the Brahmaputra River. The River Burhidihing menses at the speed of 103. 58m at Khowang. The waters fall from an elevation of 102. 11m. This river is highly prone to floods and the previous highest flood take aim was measured to be 103. 92m in1988.Damodar River-The Damodar River originates in the Palamau district of Jharkhand near Chandwa village. The origin of Damodar River is in the Chota Nagpur Plateau region of India. The river flows through the asserts of Jharkhand and westbound Bengal for nearly five hundred and 90 two kilometers and then merges with the Hooghly River, which is in the south west of Kolkata. The Damodar River has a number of tributaries and distributaries. They are Barakar, Konar, Guaia,Jamania, Usri, Bokaro, Haharo, Khadia and Bhera. The Barakar is the to the highest degree important and the only tributary of the Damodar River.This River arises near Padma in Hazaribagh district, flows through Jharkhand,and meets the Damodar River in Dishergarh in West Bengal. The river used to flow through Bengal in yesteryears, from west to east course and then it joined the Hooghly River at a sight near Kalna. Gradually, the river has changed its course and now most of the water in its lower reaches falls into the Mundeswari River. The Mundeswari River combines with other rivers and ultimately most of the water of the Damodar River flows into the Rupnarayan River. The residual water flows through the Damodar into the Hooghly, located at the south of Kolkata.Earlier the Damodar River was referred to as River of Sorrow in Bengal as it used to flood the Bardhaman, Hooghly, Howrah and Medinipur district s of West Bengal, which led to huge destruction of bearing and property. Even today the floods sometimes distress the lower Damodar Valley but the chaos it brought about in earlier years. However, after building the dams this flood factor has become a matter of history. Pollution of Damodar River is one of the grave concerns of the Bengal authorities. The Damodar is the most polluted river in India today due the several industries that have sprouted on its mineral-rich banks.There are too many ember-establish industries that are been build the Damodar valley. Other industries are mostly government-owned coal washeries, coke oven plants, which are the countrys major iron and steel plants and thermal power plants. Zinc, glass and cement plants also cover wide areas along the riverbanks. The overburden of mine effluents, fly ash, oil, toxic metals and coal dust caused the pollution. Defective mining practices, outdated processing practices and lack of proper maintenance were compound ed by corruption, inadequate pollution control and a secernate pollution control board that did nothing.The people living in the basin are slowly being poisoned because the Damodar and its tributaries is the only source of drinking water for most people living in the area. However, the governmental measures have brought significant changes in the status of the river for the past years. The geology of Damodar River indicate heavy metal concentrations at various zones of the river. At two sites in near mining areas, the coarser particles show similar or even higher heavy metal concentrations than the finer ones. Damodar Valley Corporation (DVC) is based on the Tenesse Valley Authority of the United States of America.This project benefits the states of West Bengal and Bihar. An important feature of this project is the 692 metres long and 11. 6 metres high barrage constructed across the Damodar at Durgapur. Panchet dam, Farakka Barrage, Tilaiya Dam and Konar Dam are the dams at River Damodar. The tributary of Damodar River is one of the most ferocious and voluminous rivers of Eastern India River Barakar, which begins near Padma in Hazaribagh district of Jharkhand and flows for 225 km across the northern part of the Chota Nagpur plateau.GANGA The gang River is held sacred by Hindus and is worshipped in its personified formas the Goddess Ganga. The Ganga and its tributaries drain a large and fertile basin with an area of about one million square kilometres. The gang up has a number of tributaries which are mentioned below Yamuna River Yamuna River, also known as the Jumna, is a major river of the northern India. Yamuna River has a add up length of about 1,376 km (855 mi). The Yamunas source is at the Yamunotri glacier near Banderpoonch peaks, in the Mussourie range of the lower Himalayas at an elevation of about 6387 meters above ocean level in district Uttarakashi.This river, flows in a southerly direction through the Himalayan foothills, onto the northern Ind ian plain, and a series of valleys for about 200Kms, along the Uttar Pradesh-Haryana state border. At this point, the Eastern and Western Yamuna canals are fed from the river. Son River One of the largest southern tributaries of the Ganges is the Son River of central India. The Son River originates in the state of Chhattisgarh in the east direction of the origin of Narmada River. It then flows in the north-northwest direction through Madhya Pradesh before turning in the east direction where it meets the Kaimur range.The river starts flowing in the parallel direction of the Kaimur range in the east-northeast direction through Uttar Pradesh and Bihar and joins the Ganges just above Patna, the capital of Bihar. Mahananda River The Mahananda River is a major confluent of the Ganges in eastern part of India. The river originates from the extreme north of West Bengal from thehills of Darjeeling. It then flows southwards through the fertile agricultural area I in Bihar and enters West Beng al. The river then flows in the southeast direction I in to Bangladesh.I Kosi River I Kosi River one of the main rivers in Bihar and a prominent tributary of the Ganges, originates in the Himalayas. Along with its tributaries, the Kosi River traverses along parts of Tibet, including the Mount Everest region and also one third of the eastern part of Nepal. The river has shifted its course from east to west about one hundred twenty kilometres in the last two hundred years. Gandak River Gandak is also known as the Kali Gandaki River and Narayani after the confluence with Trisuli in Nepal. Gandak River is a tributary of the Ganga or Ganges River.It is one of the major rivers in Nepal and India. It is a north bank tributary of the Ganga in India. It rises at 7620 m in Tibet near the Nepal border and overlooks the Dhaulagiri. It is distinguished for the indistinct gorge across which it flows and for a large hydroelectric installing in Nepal. This river also provides water for a major Ir rigation cum Hydroelectric power facility at the Indo-Nepal border at Valmikinagar. The river has a total catchment area of 46,300 sqkm out of which 7620 sqkm is located in India. The Gandaki River is mentioned in the ancient Indian epic Mahabharata.Ghaghara River Ghaghara River, also called the Gogra or Ghagra, Nepali Kauriala or Manchu or the Karnali, literally means holy water from the sacred mountain. The term Karnali also means Turquoise River and is a trans-boundary unceasing river that originates on the Tibetan plateau. The Karnali is called Kung-chiao Ho in Chinese. This river near Manasarowar cuts through the Himalayas in Nepal on its way to the convergence with the Sarda River at Brahmaghat in India where it forms the Ghaghara River. The Ghaghara River is a major left bank tributary of the Ganges.It is the longest and largest river in Nepal with a length of around 507 km and one of the largest affluent of the Ganges. Mahakali River River Mahakali flows between the border of Nepal and India. This river forms the westbound international border between Nepal and India and it originates from the Greater Himalayas at Kalapaani. The river flows down from a height of 3600 m, in the Pithoragarh District of Uttarakhand. Eventually, it joins with the Gori Ganga at Jauljibi area. This river again joins the Saryu River at Pancheshwar. The vicinity

A Good Essay Or Term Paper Essay

1. Answers the questionNo matter how interesting or well-written an probe, you will not be given any credit for your efforts unless it answers the question that was set. Your strain and evidence must be relevant to the question. This is the most important feature of what makes a satisfactory essay. It must deal with the subject or the topic(s) posed in the question rubric. Your answer should demonstrate that you have understood what the question is asking for, that you have grasped its key terms, and that you have followed all its instructions.2. Clear complex body partAn essay should be like a good piece of architecture built on firm foundations to carefully made plans. The points of your argument should be arranged in around structure which is logical and persuasive. If you are dealing with a number of issues, the relation between them should be clearly explained. The connections between each stage of your argument and the skipper question should be evident throughout the es say.3. Appropriate styleFor an academic essay the third soul (he, she, or it) rather than the first person (I) is a more preferable style. Occasional use of I may be acceptable if a personal opinion has been specifically requested. You should carry on your audience in mind. Try to imagine that you are addressing someone who is intelligent and reasonably, but not necessarily well-informed in the subject. Remember that your writing should be grammatically accurate. Poor punctuation and weak sentence construction will create a bad impression. Mixed tenses and metaphors should be avoided. Spelling mistakes should be corrected. 4. Arguments back up by evidenceEssays should not be just a series of unsupported assertions. You need to provide some evidence to support them either in the form of factual details, your own reasoning, or the arguments of others. In this latter case, you should always reveal the fact that you are using someone elses ideas. Provide attribution by using a syst em of footnotes or endnotes and accurate referencing. Never try to pass off other peoples written talking to asyour own. This is called plagiarism a form of intellectual dishonesty which is severely frowned upon in academic circles.5. Clarity of thoughtOne of the hallmarks of a good essay is that it demonstrates clarity of thought. This may be your ability to identify different issues and discuss them in a logical manner. It may mean organizing materials into a coherent structure for the essay. It could be showing that you are able to make important distinctions and insights. This may not come easily at first, but with practice it should be executable to gain greater clarity through discipline, selection, and planning.6. Evidence of wide reading and understandingEssays are frequently set to encourage and direct your reading in a subject. If you show that you have read widely and thoroughly understood the subject you are discussing, you will be demonstrating your competence. The best essays are often produced by people who have taken the trouble to acquaint themselves both with the principal set books and with secondary works of commentary and criticism as well. They will often show evidence of intellectual curiosity which has taken them beyond the bounds of what has been prescribed as a minimum.7. OriginalityAn essay will be rewarded with a good mark if it competently reviews all the well-known arguments in a subject and reaches a balanced conclusion. The highest grades however are often given deservedly to essays which exhibit something extra. This may be a demonstration of original ideas or an unusual, imaginative approach. Such essays usually stand out because of their freshness and the sense of intellectual upthrust they convey. But remember that you are not usually required to be original. Your tutor(s) will be perfectly satisfied if you simply answer their essay questions in a sensible and competent manner.

Avian Influenza Essay

Avian Influenza, also known as bird flu, is a zoonotic disorder with several different subtypes that affect most(prenominal)ly other birds, but few can be transmitted to human beings. The most prevalent avian influenza virus in humans is the highly pathogenic Avian Influenza A (H5N1) virus, which has caused over 380 confirmed cases in 15 countries (Rabinowitz, 2010). Majority of cases select been transmitted via bird-to-human, with rargon cases of human-to-human transmission.Continued painting to the virus not only poses the threat of ongoing morbidity and mortality, but also the threat of H5N1 being satisfactory to adapt and change allowing sustained human-to-human transmission. (Rabinowitz, 2010). Human exposure to H5N1 begins with the natural host for the virus, wild birds, which is then transmitted to domestic birds, and then finally reaching humans as a host. Starting with wild birds, most commonly waterfowl, the virus lives in the intestines and is shed through fecal matt er, saliva, and nasal secretions.Most wild birds are resistant to infections associated with avian influenza A. Wild birds are exposed to the virus when they come into contact with contaminated nasal, respiratory, or fecal material from infect birds, most commonly fecal to oral transmission (Korteweg & Gu, 2010). Transmission to domestic birds, mainly poultry, can occur with direct contact with infected birds or indirect exposure through contaminated dirt, cages, water, and feed. Domestic birds have little to no resistance to the virus and suffer serious wellness issues, often resulting in death (Influenza Viruses, 2005).In the case a human is infected with H5N1, transmission routes are either through direct contact or indirect contact. Direct contact consists of commonwealth holding, catching, hunting, or playing with unknowingly infected birds. Slaughtering, defeathering, processing and preparing poultry for consumption are other ways a psyche can be infected through direct con tact. Examples of indirect contact are touching contaminated surfaces and materials, swimming in or washing with contaminated water, living and working in areas with contaminated air, or ingesting the active virus in contaminated food (Rabinowitz, 2010).There is little evidence supporting human-to-human transmission and few cases have been confirmed. From what is known, advert and close contact with infected individuals are possible routes of transmission (Avian Influenza A, 2005). The potential for H5N1 to develop into a strain easily transmissible from person to person in a sustained matter poses as a threat for a possible pandemic infection (Influenza Viruses, 2005). Signs and symptoms associated with H5N1 are much like those of the to a great extent common seasonal flu virus fever, headache, sore throat, cough and rhinitis.Other symptoms include conjunctivitis, gastrointestinal complications, shortness of breath, lower respiratory problems, rhinorrhea, myalgia, diarrhea, leuko penia, lymphophenia, impaired liver function, renal impairment, and prolonged blood clotting (Apisarnthanarak, 2004). As of March 2011, over 530 confirmed human cases of H5N1 have been found in 15 countries since 2003 (WHO image 1), 85% occurring deep down Asian countries. Countries with the highest prevalence rates are Vietnam, Egypt, and Indonesia. Median age of those infected is 18 years old (Korteweg & Gu, 2010).A contributing behavioral factor associated with the disease being more prevalent in children and young adults is the age groups participation in the slaughter, defeathering and cooking of poultry (Smallman-Raynor & Cliff, 2008). H5N1 had not been seen in humans prior to 1997, first-class honours degree presenting itself in China. The virus was then seen again in humans in 2003, in Vietnam and again in China. By 2007, H5N1 had spread to Cambodia, Indonesia, Azerbaijan, Djibouti, Egypt, Iraq, Turkey, Laos, Myanmar, Nigeria and Pakistan (Smallman-Raynor & Cliff, 2008).Th e following public health organizations have been working closely together to track and control recent outbreaks World Health Organization (WHO), Organization for Animal Health (OIE), and Food and cultivation Organization (FAO) (Smallman-Raynor & Cliff, 2008). WHO has been prudent for providing recent data and statistics regarding H5N1 in humans. Avian Influenza is covered by GAR, WHOs Global Outbreak Alert and Response Network, which is responsible for monitoring and keeping surveillance on the disease. OIE is responsible for reporting recent data relating specifically o outbreaks of avian influenza in animals. FAO, working collaboratively with OIE and WHO, sets the mise en scene for national and regional strategies, policies, programs and projects designed to control and prevent the disease (Strategy and Policy) from spreading. According to a study by Smallman-Raynor and Cliff (2008), fatality rates for H5N1 are greater than 50% in observed cases, which is much higher than the common flu virus. The virus has spread to over fifty countries on three continents, being labeled as a panzootic disease (animal disease equivalent to a pandemic in humans).H5N1 first crossed species barriers to humans in 1997 and has extended its host grasp to several other mammals, causing severe disease and death. An approach to control the spread of this disease amongst birds has been culling of exposed birds, quarantine and disinfecting. However, Avian Influenza continues to spread overdue in part to migratory birds becoming infected (Smallman-Raynor & Cliff, 2008). The viruss ability to evolve poses as threat and is currently classified by WHO at Phase 3 of the global pandemic alert for influenza.

U.S.-China Trade

The reemergence of China as a great power is arguably the single to the highest degree important development in the post-Cold War world. The rapid scotch growth of the Peoples Republic of China ( chinaware) over the past decade, coupled with its high level of defense spending, make up stimulated lots interest as tumefy as trepidation among policy-makers and analysts across the world. Although the continued augmentation of Chinese power is non predetermined, the profound effects of Chinas suppuration lick cannot be underestimated.When analyzing a grounds trade expectations one(a) must also relegate into account the effects of diplomacy and bargaining, as Copeland suggests. A state can make some sparing, political and military concessions to pull its trading partners to relax trade restrictions, thus raising its expectations for time to come trade. If the price for a higher level of trade is seen to be reasonable, the state would be uncoerced to pay it, but if the price i s unacceptable because it would undermine the states internal stability or its external power position, there would be very little that the state could do to improve its trade expectations.If Chinese decision-makers expectations for early trade are high, they will be less likely to use force to deal with open disputes with neighboring countries. If, however, they have a negative view of their future trading environs, they will be likely to take measures, including military actions, to remove either obstacles that readiness forestall the pursuit of great-power status (Segal, 70). For the moment, Chinas expectations of future trade are by and large optimistic, but there is evidence of growing Chinese suspicion of a westward conspiracy to contain China which may alter Beijings future perceptions.To ensure that the rise of China will not cause regional and global instability, the extraneous world should seek to integrate China into the international community by pursuing policie s that will have a positive influence on Chinas anticipate value of trade. Since the late 1970s China has gradually emerged as a major(ip) trading nation in the world, and its economic and trade relations with close to countries have broadened considerably. Indeed, China has been actively involved in global economic activities, and is fully integrated into the Asia-Pacific economy.The PRC is now a member of most major international and regional economic organizations, including the sphere Bank, the International Monetary Fund, the Asian Development Bank, and APEC. (Segal, 70) From 1980 to 1997 the Chinese politics approved 162 impertinent financial institutions to develop ancestry in China. (Segal, 70) Over 200 of the worlds top 500 companies have now invested in the country. (Segal, 70) As a dissolvent, there has been a huge growth in Chinas extraneous trade over the past two decades. From 1978 to 1997 Chinas export grew from US$9. 8 billion to US$182. 7 billion, and its imp orts grew from US$10.9 billion to US$142. 4 billion. Between 1983 and 1997 actual foreign direct investing in China appendd from US$916 million to US$45. 3 billion(Segal, 70) In 1997, according to the World Trade Organization, China became one of the top 10 trading countries in the world. (Segal, 70) China has also earned from its involvement in a regional division of labour party and economic cooperation in East Asia. It is integrated into a number of sub-regional economic groupings or growth triangles such as the Hong Kong-Guangdong-Shenzhen triangle and the Northeast China-Korea-Japan triangle.In addition, China is about involved in the development of two new sub-regional groupings the Yellow Sea Economic Zone that includes Liaoning and Shandong provinces, Japan and South Korea and the Tumen River project that seeks to promote economic cooperation in the midst of China, Japan, North Korea, South Korea, Mongolia and Russia. (Rachman, 129) No doubt, Chinas integration into th e world economy has brought about much benefit to the country, but it has also increased Chinese vulnerability in a world of growing interdependence. Indeed, foreign direct investment has become the single most important source of foreign capital for the PRC.(Rachman, 132)It is estimated that foreign investment may now account for one-quarter of all Chinese exports. (Rachman, 132)In 1996 the inwardness value of foreign-funded incorruptibles import and export trade reached US$137. 1 billion accounting for 47% of the national total of foreign trade. (Rachman, 136)According to a Beijing Review report, 18 million people, about 10% of Chinas non-farming population, are employed by foreign-funded firms. The investment by these firms covers a whole range of areas that are vital to Chinese economic modernization, including al-Qaeda, energy, communication and high-tech projects.(Rachman, 143)The Chinese government has also relied heavily on foreign investment to develop the central and we stern regions of China that are still very poor. In 1996, for example, a total amount of USS 1. 34 billion of foreign government loans was utilized for 69 projects in these underdeveloped regions. In addition, 125 key projects in the PRC are supported by foreign government loans that include the construction of metropolitan underground railways, power plants, airports, telephone networks, and other large-scale development plans. (Rachman, 171)In the past decade China has increased its foreign borrowings substantially. Its total external debt is believed to have risen from US$24,000 million in 1987 to US$116,280 million in 1996. (Rachman, 183)Besides, many of Chinas put right projects, such as enterprise restructuring, infrastructure improvement, financial straighten, poverty reduction, human development and environmental protection, are currently supported by the World Bank. (Lieberthal, 36) Of all the major sectors of the Chinese economy, energy is in all likelihood the most cri tical one in terms of sustaining the PRCs modernization program.In this sector the character of foreign capital is becoming more significant. For example, a joint punt has been established at the Pingshao coal mine, and the construction of a power station in Guangxi Zhuang is financed entirely by foreign investment. In the areas of petroleum and natural gas, a great effort has also been made to attract foreign capital. By 1997, China had signed 126 contracts with 65 foreign oil companies. (Lieberthal, 36) Moreover, the progress of Chinese reform is dependent on the availability of advanced foreign technology and equipment.The contract value of Chinese technology imports amounted to US$159. 23 million in 1997. Indeed, merchandise technologies play an important part in major Chinese industries ranging from energy, electronics, computer software to telecommunications, information and other high-tech industries. (Lieberthal, 36) Clearly, Chinese leaders are alive(predicate) that th e success of Chinas economic modernization rests ultimately with its access to the global market and with inflows of external funding.If, for political or security reasons, the world were to reduce the level of economic interactions with or apply trade sanctions against China, it would have a devastating effect on Chinese economic development. For the moment, Chinas expectations of future trade with both its Asian neighbors and Western nations are by and large positive. In a speech to an academic symposium in Beijing, Chen Jian, a senior official of the Chinese Ministry of exotic Affairs, tell that the international situation has moved at a speed faster than expected in a direction favorable to China .The ongoing reform and opening up policies and the economic development in China are based on the judgement that world peace can be maintain and a new world war will not erupt for the near future. (Yahuda, 22) Similarly, Wu Yi, Minister of Foreign Trade and Economic Cooperation, has noted We are immersed in the irreversible general trend toward worldwide economic integration economic cooperation with various countries makes it easier than any time in the past to reach a viridity view, and can be carded out in a wider area and at a higher starting point.This in turn portends that possibility for successful cooperation is much greater in the future. (Yahuda, 22) This type of optimistic assessment of the future trading environment is echoed by many Chinese leaders, officials and scholars. (Yahuda, 56) Despite the recent financial rumpus in East and South East Asia, they believe that the economic dynamism in the Asia-Pacific will continue into the twenty-first century and that China will benefit from further economic growth and cooperation in the region.For example, citing the view of a Chicago professor and Nobel Prize winner, a Chinese commentator maintains that the prospects of most rapidly growing economic entities of East Asia are still bright. Even if the economy of these countries stops growing in the coming five years, it is argued, their average speed of economic increase in the next 25 years will surpass that of the world. (Yahuda, 101) In any case, Chinese leaders know that the potential market and business opportunities that the PRC can offer to the outside world are so attractive that no country would like to miss them.(Yahuda, 193) It is therefore unlikely that any countries would call for to sever trade relations with China in the near future. To bring on its expectations for future trade China has been and will be willing to make economic and political concessions when negotiating contracts and trade agreements with its trading partners. Thus, the outside world will have some leverage to steer China in a certain direction, and it should take the opportunity to encourage further economic reform, openness and trade liberalization in the country.As liberals rightly argue, economic liberalization will gradually lead to great er political liberalization and democratization in China that will, in turn, help preserve peace and stability in the Asia-Pacific region. However, the international community must be patient with the pace of change in China and more sensitive to Chinese security perceptions. This is not to say that the outside world should accede to any Chinese demands or policies.On the contrary, it should be prepared to raise its concern over particular Chinese policies, debate with China on issues of fundamental disagreement, and stand firm on matters of principle. For example, the outside world must not ignore human rights issues in China for the sake of short-term commercial benefits. Western countries should try to shake the Chinese government to improve its human rights record through dialogue and diplomatic channels rather than by economic coercion.They must recognize that the process of democratization in China will be a lengthy and thorny one, given the lack of democratic tradition in Ch inese history. An evolutionary path toward democracy is preferable to a violent change of regime in China that will be likely to produce an unstable and toothless government which would be incapable of handling the crises and upheavals associated with rapid political transformation in such a vast country. A chaotic China could not possibly pursue a rational and coherent policy toward other countries.In this regard, the warning of some liberal scholars of the linkages between democratic transition and war should be heeded. Whether the reemergence of China as a great power in the post-Cold War international system is caused by structural factors (as the realist argues) or by unit-level decisions (as the liberal suggests), the contend that China presents to the rest of world is formidable. The best way of abating the likelihood of military conflict between the great powers, as Copeland suggests, is to alter leaders perceptions of the future trading environment in which they operate.( Harris, 151) Chinas current expectations of future trade are, on the whole, positive, but there are growing suspicions among Chinese leaders and intellectuals of external forces seeking to contain China. Such a fear could magnify at a time when nationalistic sentiment is rising in Chinese society (Harris, 151) that might lead to low expectations of future trade. To ensure that Chinas rise will not cause regional and global instability, the outside world should pursue policies that would enhance Chinese decision-makers confidence in their future trading environment.This will not be a simple task due to Chinas innate distrust of other great powers as a result of its unpleasant encounters with Japan and Western powers in the nineteenth century. Given the complexity of Chinese domestic politics and enormous ideological and institutional constraints, China may not always respond to external efforts positively, (Harris, 151) but if Chinas trading partners hope to integrate the country int o the international community peacefully, they must do what they can to raise PRC leaders expectations for future trade.In the case of China, it has made some economic and political concessions to induce the outside world to trade with and invest in China. On most issues, Chinese leaders find the price of higher trade level reasonable and are willing to make compromise. The concept of one country, two systems, for example, was fundamentally formulated to assure the Western world that Chinas priority was economic development. In order to retain the confidence of foreign investors in Hong Kong, Chinese leaders have promised that the territorys capitalist system will remain unchanged for at least 50 years from 1997.(Harris, 151) Chinas decision to shelve temporarily the issue of sovereignty in the South China Sea also reflects its desire to maintain harmonious relations with the United States of America that are propitious for Chinas trading environment. Works Cited Gerald Segal, fix China into the international system, Survival 37(2), (Summer 2004), p. 70. Gideon Rachman, Containing China, The Washington Quarterly 19(1), (Winter 1995), p. 132. Hans J. Morgenthau, Politics Among Nations The Struggle for Power and Peace, revised 5th edition (New York Alfred A.Knopf, 1978), p. 29. Kenneth Lieberthal, A new China strategy, Foreign Affairs 74(6), (November/December 1995), p. 36. Michael Yahuda, How much has China learned about interdependence? , in David S. G. Goodman and Gerald Segal, eds. , China Rising Nationalism and Interdependence (London Routledge, 1997), p. 22. Stay back, China, The Economist, (16 March 1996), p. 15. Stuart Harris, Chinas role in the WTO and APEC, in Goodman and Segal, eds. , China Rising, p. 151.

Lease Financing

INTRODUCTION m unitarytary Services basic two(prenominal)y inculpate both those kinds of assistant leave behindd in monetary endpoints where the essential commodity is money. These service involve leasing, prosecute corrupt, consumer extension, investment banking, commercial banking, venture detonating device, insurance, credit rating, bill discounting, and mutual airplane propeller , stock broking, housing pay, vehicle pay, mortgages and car loans, factoring among other things. Various entities that provide these services be basically categorized into (a) Non patoising pay Companies b) Commercial Banks, and (c) Merchant Banks. pecuniary Services in India is too vast and varied too eng blocker evolved at one place and at one sequence. One of the important entities that offer financial services in India is Non-Banking pay Companies. These NBFCs registered with Reserve Bank of India mainly per sort neckcloth found services to the guest. shop miserly d services of NBFCs include leasing, never-never and other as present based services whereas fee based services of NBFCs include bill discounting, portfolio anxiety and other advisory services. choose FINANCING Leasing as financial service is a contractual pledge where the proprietor (lessor) of equipment communicates the right to make use of the equipment to the user (lessee) for an, agreed cessation of time in fork over for a term of a contract. At the end of the ingest gunpoint the plus reverts tail to the lessor unless on that point is a provision for the reincarnateal of the contract or thither is a provision for the transfers of proclaimership to the lessee. If there is either such provision for transfer of self-will, the deal is treated as hire barter for. in that respectfore, a involve could be generally defined as A contract where a comp any beingness the accepter (lessor) of an addition ( downstairstake asset) provides the asset for use by the less ee at a consideration ( lettings), either fixed or dependent on any variables, for a true period ( plight period), either fixed or flexible, with an sense that at the end of such period, the asset, subject to the embedded options of the involve, willing be either returned to the lessor or prone of as per the lessors instructions. HISTORY AND DEVELOPMENT OF LEASING The history of leasing dates suffer to 200BC when Sumerians take ind goods.Romans had developed a panoptic body law relating to claim for movable and im movable property. However the modern concept of leasing appe ard for the first time in 1877 when the Bell Telephone telephoner began renting telephones in USA. In 1832, Cottrell and Leonard ingestd academic caps, vainglorious and hoods. Subsequently, during 1930s the Railway Industry use leasing service for its rolling stock inevitably. In the post struggle period, the Ameri corporation Air Lines leased their jet engines for most of the new air crafts. This growing ignited conterminous popularity for the lease and generated festering of leasing industry.The concept of financial leasing was pioneered in India during 1973. The Firs Company was set up by the Chidambaram aggroup in 1973 in Madras. The follow downstairstook leasing of industrial equipment as its main activity. The Twentieth century Leasing Company trammel was established in 1979. By 1981, four finance companies joined the fray. The per variety showance of First Leasing Company limit and the Twentieth Century Leasing Company Limited motivated others to enter the leasing industry. In 1980s financial institutions make entry into leasing business.Industrial consultation and Investment crapper was the first all India financial institution to offer leasing in 1983. Entry of commercial banks into leasing was facilitated by an amendment of Banking Regulation Act, 1949. State Bank of India was the first commercial bank to set up a leasing subsidiary, SBI heavy(p) trade, i n October 1986. Can Bank Financial Services Ltd. , BOB Financial Service Ltd. , and PNB Financial Services Limited followed courting. Industrial pay Corporations Merchant Banking constituent started financial stickering leasing companies as well as equipment leasing and financial services. at that place was thus virtual explosion in the go of leasing companies rising to about 400 companies in 1990. In the subsequent years, the adverse trends in heavy(p) mart and other factors led to a situation where a trip from the institutional lessors there were hardly 20 to 25 private leasing companies who were active in the field. The total volume of leasing business companies was Rs. euchre0 cores in 1993 and it is expected to cross Rs. 10, 000 cores by March 1995. PARTIES OF LEASE FINANCING ELEMENTS IN LEASE STRUCTUREThis is an explanation of the elements in a lease the parties, asset, rentals, residue value, etc. This section would in uniform manner elaborate the unique features of a lease as different from a unvarying finance doing. 1. The transaction The transaction of lease of lease is generically an asset-renting transaction. What distinguishes a lease from a loan is that in the latter, what is lent out is money in a lease, what is lent out is the asset. 2. Parties to a lease There argon two parties to a lease the owner and the user, called the lessor and the lessee. The lessor is the person who owns the asset and gives it on lease.The lessee takes the asset on lease and uses it for the period of the lease. Any one can be a lessor, and any one can be a lessee, subject to usual conditions as to competence to contract, or property of properties. Ownership is no pre-condition for Technically, in erect to be a lessor, one does not fix to own the asset one has to have the right to use leasing the asset. Thus, a lessee can be a lessor for a sub-lessee, unless the p atomic number 18nt lessor has restricted the right to sub-lease. 3. The leased asset The subject of a lease is the asset, article or property to be leased.The asset whitethorn be anything an automobile, or aircraft, or machine, or consumer durable, or land, or construction, or a factory. Only actual assets can be leased one cannot contemp belated the leasing of the nonphysical assets, since one of the essential elements of a lease is handing everyplace of possession, a spacious with the right to use. Hence, intangible assets argon as sign-language(a), whereas tangible assets may be leased. The concept of leasing will have the following limitations 1. What cannot be owned cannot be leased. Thus, mankind resources cannot be leased.Leasing of immovable properties may have complications 2. While lease of movable properties can be affected by mere makey, immovable property is incapable of deliveries in physical sense. Most countries have specific laws relating to transactions in immovable properties if such law provides a particular procedure for a lease of immovable or real domain, such procedure should be complied with. For example, in Anglo-Saxon court-ordered systems (UK, Australia, India, Pakistan, etc. ), transactions in real estate are not binding unless they are accomplished by registered conveyance.This would apply to lease of land and buildings, and permanent attachments to land. 3. A lease is structurally a rental for the lease period with the understanding that the asset will be returned to the lessor after the period. Thus, the asset moldiness be capable of re-delivery it must be durable (at least during the lease period), identifiable and severable. countenanced asset is a necessary pre- condition The existence of the leased asset is an essential element of a lease transaction the asset must exist at the beginning of the lease, during the lease and at the end of the lease term.Non-existence of the asset, for whatever reason, will be fatal to the lease. 4. Lease period The term of lease, or lease period, is the period for whi ch the transcription of lease shall be in operation. As an essential element in a lease is redelivery of the asset by the lessee at the end of the lease period, it is necessary to have a certain period of lease. During this certain period, the lessee may be given a right of cancellation, and beyond this period, the lessee may be given a right of renewal, precisely essentially, a lease should not amount to a change that is, the asset being given permanently to the lessee.In financial leases, is greenness to differentiate between the primary election lease period and the alternate lease period. The former would be the period over which the lessor intends recovering his investment the latter intended to dispense with the lessee to exhaust a substantial part of the remaining asset value. The primary period is normally non-cancelable, and the tributary period is normally cancelable. 5. Lease rentals The lease rentals represent the consideration for the lease transaction. This is what the Lessee pays to the Lessor.If it is a financial lease transaction, the rentals will simply be the recovery of the lessors principal, and a certain rate of return on bang-up principal. In other words, the rentals can be seen as bundled principal re hire and interest. If it is an operate lease transaction, the rentals index include several elements depending upon the comprises and risks borne by the Lessor, such as * If the lessor is bearing any repairs, insurance, maintenance or operation Costs, them charges for such personify. Depreciation in the asset. * Interest on the lessors investment. * Servicing charges or packaging charges for providing a package of the above service. 6. Residual value Put simply, residual value misbegots the value of the leased equipment at the end of the lease term. If the lease contains a buyout option with the lessee, residual value would mostly mean the value at which a lessee will be allowed to buy the equipment.If there is no embedded l everaging option, residual value might mean the value that the lessee or more or lessone else assures will be the stripped value of the equipment at the end of the lease term. This is typical in quality of financial leases where the lessor cannot grant a buyout option to the lessee for the lessor to protect himself against asset-based risks, he would take an assured residual value commitment either from the lessee himself or from a third party, typically an insurance family.The residual value might also the value that the lessor assures to pay-back to the lessee in sideslip the lessee returns the asset to the lessor that is, it might be the value the lessor assures as the minimum value of the equipment. Such a lease, obviously an operating lease because the lessor is taking a risk on asset values, is a unspoiled payout lease, but the lessor agrees to refund the guaranteed value on the lessee returning the equipment at the end of the lease term. 7. End-of-term options The optio ns allowed to the lessee at the end of the primary lease period are called end-of-term options.Essentially, one, or more than, of the following options will be given to the lessee at the end of the lease term Option to buy (buyout option) at a bargain price or nominal value (typical in a hire- procure transaction), called bargain buyout option Option to buy at a fair market value or fixed, but substantial value Option to renew the lease at nominal rentals, called bargain renewal option Option to renew the lease at fair market rentals or substantial rentals Option to return the equipment In any lease, which option will be suitable depends on the nature of the lease transaction, as also the applicable regulations.For example, in a full payout financial lease, the lessor would have recovered the whole or substantially the whole of his investment during the primary lease period. Therefore, it is quite natural that the lessee should be allowed to exhaust the whole of the remaining valu e of the equipment. Regulation permitting, the lessor provide the lessee a bargain purchase option to allow the lessee to complete the purchase of the equipment. bribeout option may characterize the lease However, in many jurisdictions, it is the existence of such buyout option that demarcates between lease and as hire-purchase hire-purchase transaction.If the lessor is interested to body structure the lease as a lease and not hire-purchase, he would be advised not to provide any buyout option, but Instead, to allow the lessee to renew the lease to continue the use of the asset. In essence, a renewal option achieves the same purpose as a purchase, but the lessor retains his ownership as also his reversionary interest in the equipment. Fair market value options, either for purchase of equipment, or for renewal, are typical of operating leases, but are really speaking no more than assuring to the lessee a continued use of the equipment.If equipment has to be bought at its prevailing market value, it can be bought from the market kind of than from the lessor therefore, the fair market value option carries no value for the lessee. 8. Upfront recompenses Lessors may require one or more of the following upfront, that is, instant payments from a lessee Initial lease rental or initial hire or down payment Advance lease rental aegis deposit Initial fees Margins in leases are taken as initial rental The initial lease rent or initial hire (the word hire is more common in shell f hire-purchase transactions) is a surrogate for a margin or borrower contribution in discipline of loan transactions. Note that given the nature of a lease or hire-purchase as asset-renting transaction, it is not possible to expect a lessees contribution to asset cost as such. Hence, the down payment or first lease rent serves the purpose of a margin. Between rising slope lease rent and initial lease rent the difference is nevertheless technical. The whole of the initial lease rental is supposed to be appropriated to income on the date of its receipt, whereas advance rental is still an advance normally an advance against the go away a few(prenominal) rentals.Therefore, the advance rental will remain as a deposit with the lessor to be adjusted against the expire few rentals. Types of Lease balances Lease organizations are basically of two types. They are (a) Financial lease and (b) place lease. The other variations in lease agreements are (c) Sale and lease back (d) Leveraged leasing and (e) Direct leasing. FINANCIAL LEASE Long-term, non-cancellable lease contracts are known as financial leases. The essential point of financial lease agreement is that it contains a condition whereby the lessor agrees to transfer the title for the asset at the end of the lease period at a nominal cost.At lease it must give an option to the lessee to purchase the asset he has used at the exit of the lease. Under this lease the lessor recovers 90% of the fair value of the ass et as lease rentals and the lease period is 75% of the economical life of the asset. The lease agreement is irrevocable. Practically all the risks incidental expense to the asset ownership and all the benefits arising there from are transferred to the lessee who bears the cost of maintenance, insurance and repairs. Only title whole caboodle remain with the lessor. Financial lease is also known as ? apital lease. In India, financial leases are very popular with high-cost and high technology equipment OPERATING LEASE An operating lease stands in direct contrast to the financial lease in almost all aspects. This lease agreement gives to the lessee only a special(a) right to use the asset. The lessor is responsible for the upkeep and maintenance of the asset. The lessee is not given any uplift to purchase the asset at the end of the lease period. Normally the lease is for a short period and even so otherwise is revocable at a short notice.Mines, Computers hardware, trucks and autom obiles are found suitable for operating lease because the rate of obsolescence is very high in this kind of assets. DifferentiationBetweenOperatingleaseandFinancialLease BASIS FINANCIAL OPERATING Meaning Long-term, non-cancellable lease contracts are known as financial Leases. A Lease which is a short term one and one which does not cover the reusable life on an asset is called an operating lease. Form In this type of lease, money is provideby lessor and the asset is purchaseform remote The lessor is carrying on business of leasing and he holds such assets or is a manufacturing business of such asset leases its asset Maintenance The lessee undertakes the maintenanceof the asset, paying insurance premiumetc. In this type of lease, repairs and Maintenance is done by the lessor. Risk ofObsolescence In this types of lease, the lessee bearsthe risk obsolescence, so far as heUses the asset. In this types of lease, the lessor Bears the risk obsolescence during the period of the lease Period of Lease Period of lease whole useful life ofAsset. Period of lease for short time. Option to Buy Option to buy for lessee. Period of lease for shot time Accounting EntriesAccording to the internationalisticaccounting standard-17, an entry is make in the rest mainsheet of the lessee on both the side No entry is made in the balance sheet ofthe lessee under this type of lease,because lease is in the form of a hiredasset 3. Sale and Lease back It is a sub-part of finance lease.Under this, the owner of an asset sells the asset to a party (the buyer), who in turn leases back the same asset to the owner in consideration of lease rentals. However, under this arrangement, the assets are not physically transfer but it all happens in records only. This is nothing but a paper transaction. Sale and lease back transaction is suitable for those assets, which are not subjected dispraise but appreciation, say land. The advantage of this order is that the lessee can satisfy himsel f completely regarding the quality of the asset and after possession of the asset convert the sale into a lease arrangement.The sale and lease back transaction can be expressed with the champion of the following figure. ? The owner (Lessee) of the equipment sells it to a Leasing lodge (Lessor). ? The Lessor, leases the equipment back to the Lessee. ? Under this arrangement, the assets are not physically exchanged but it all happens in records only. ? The marketer assumes the position of a lessee and the buyer assumes the role of a lessor. ? The marketer gets the agreed selling price and the buyer gets the lease rentals. Two sets of cash flows occur The lessee receives cash immediately from the sale. ? The lessee agrees to make periodic lease payments, thereby retaining the use of the asset. 4. Leveraged Lease Under leveraged leasing arrangement, a third party is involved beside lessor and lessee. The lessor borrows a part of the purchase cost (say 80%) of the asset from the t hird party i. e. , loaner and the asset so purchased is held as security against the loan. The lender is paid off from the lease rentals directly by the lessee and the surplus after meeting the claims of the lender goes to the lessor.The lessor, the owner of the asset is entitled to depreciation allowance associated with the asset. ? 3 parties to the transaction. ? Lessor ( Equity investo ? Lender ? Lessee ? The Leasing order (Equity investor) ? buys the equipment, through substantial borrowing, and ? with full recourse to the Lessee and without recourse to it. ? The Lender obtains an fitting of the Lease and a first mortgage of the equipment. 5. Direct Lease ? Under direct leasing, a menage acquires the right to use an asset from the manufacturer directly. The ownership of the asset leased out remains with the manufacturer itself. ? Bipartite Lease Equipment supplier-cum-Lessor and Lessee. ? Tripartite Lease (Sales-aid-Lease) Equipment supplier, Lessor and Lessee. Single Inves tor Lease Only two parties Lessor and Lessee. Leasing company (Lessor) funds the entire investment, having appropriate mix of Equity-cum-Debt finance raised by the Lessor, is without recourse to the Lessee Risk Assessment of a Lessee The first step in structuring a lease is for the lessor to evaluate and then quantify the risk inherent in the lease.Risk go outs from the degree of credit worthiness of the lessee combined with the validatory and residual value of the equipment to be leased. In general if the lessor deems a lease risky, any of the following variables might be affected 1. Lease outcome increased with all other factors except payment amount remaining constant 2. Additional advance payments needful. 3. Security deposit required or increased. 4. Guaranteed residual required in lieu of a purchase option. 5. Lease term shortened. 6. Personal guarantee required. 7. Additional collateral beyond the leased equipment. . Increased late fees for delinquent rental payments (5 % if 10 days late plus18% interest for e. g. ) 9. Security interest obtained to facilitate repossession 10. solely insurable risk insured. Assignment of the risk inherent in a lease transaction is chiefly a credit Worthiness decision. Many lessors as well as bankers or other moneylenders base their evaluation of risk on the 10 Cs. They are ? Character ? Capacity ? Capital ? Credit ? Conditions ? Competition ? Collateral ? Cross-border ? Complexity ? Currency Lessor RequirementsOnce the lessor has assessed the risk and credit worthiness of the lessee and converted that into structuring variables, the lessor must pure tone to its remaining needs and then to the requirements of the lessee. Meeting the sometimes conflicting needs of the lessor and lessee represents the more difficult part of lease structuring. Sometimes a lessor will insist on structuring an operating lease in order to retain measure benefits while at the same time the lessee desires a capital lease so it too may av ail itself of the depreciation and tax benefits.Typical lessor requirements that might be at variance with lessee needs in lease structuring are ? A yield sufficient to meet the lessors after-tax weighted cost of capital ? accounting for the lease on the lessors books as a capital lease. ? tax revenue structure of the agreement as an operating lease to obtain tax benefits. ? a net lease rather than a full service lease ? Residual dependence- the lessor may want the equipment purchased by the lessee to avoid resale problems. On the other hand the lessor may want the equipment returned at the end of the lease due to its increased value.Advantages of LEASING to LESSEE There are several extolled advantages of acquiring capital assets on lease (1) Saving of capital Leasing covers the full cost of the equipment used in the business by providing 100% finance. The lessee is not to provide or pay any margin money as there is no down payment. In this way the saving in capital or financial re sources can be used for other cropive purposes e. g. purchase of inventories. (2) tractability and Convenience The lease agreement can be tailor- made in respect of lease period and lease rentals according to the convenience and requirements of all lessees. 3) Planning Cash Flows Leasing enables the lessee to plan its cash flows properly. The rentals can be paid out of the cash coming into the business from the use of the same assets. (4) Improvement In runniness Leasing enables the lessee to improve their liquidity position by adopting the sale and lease back technique. (5) Shifting of Risk of Obsolescence The lessee can shift the risk upon lessor by acquiring the use of asset rather than buying the asset. (6) Maintenance and specialised Services In case of special kind of lease arrangement, Lessee can avail specialized services of lessor for maintenance of asset leased.Although lessor charges higher rentals for providing such services, lessees overall administrative and service be are reduced because of specialized services of the lessor. (7)Off-The-Balance-Sheet-Financing Leasing provides off balance sheet financial view as for the lessee, in that the lease is put down neither as an asset nor as a liability. Disadvantages of LEASING to LESSEE (1) risqueer Cost The lease rental include a margin for the lessor as also the cost of risk of obsolescence, it is, thus regarded as a form of financing at higher cost. 2) Risk of being deprived the use of asset in case the leasing company winds up. (3) No Alteration In Asset Lessee cannot make changes in asset as per his requirement. (4) Penalties On Termination Of Lease The lessee has to pay penalties in case he has to terminate the lease before expiry o lease period. Advantages of LEASING to LESSOR (1) Higher profits The lessor can get higher profits by leasing the asset. (2) Tax Benefits The lessor being owner of asset can claim various tax benefits such as Depreciation. 3) cursorily Returns By leasing the asset, the Lessor can get quick returns than investing in other projects of long gestation period. Disadvantages of LEASING to LESSOR (1) High Risk of Obsolescence The lessor has to bear the risk of obsolescence as there are rapid technology changes. (2) Price take aim Changes In case of inflation, the prices of asset rises but the lease rentals remain fixed. (3) Long term Investment Leasing requires the long term investment in purchase of an asset, and takes long Time to cover the cost of that assetHire purchase financing Hire purchase is a popular financing mechanism especially in certain sectors of Indian business such as he automobile sector. In hire purchase financing, there are three parties the manufacturer, the hiree and the hirer. The hiree may be a manufacturer or a finance company. The manufacturer sells asset to the hiree who sells it to the hirer in exchange for the payment to be made over a specified period of time. A hire purchase agreement between the hirer and th e hiree involves the following Three conditions ?The owner of the asset (the hiree or the manufacturer) gives the Possession of the asset to the hirer with an understanding that the hirer will pay the agreed installments over a specified period of time. ? The ownership of the asset will transfer to the hirer on the payment of all installments. ? The hirer will have the option of terminating the agreement any time before the transfer of ownership of the asset. Thus for the hirer the hire purchase agreement is like a cancelable lease with a right to buy the asset.The hirer is required to show the hired asset on his balance sheet and is entitled to claim depreciation, although he does not own the asset until full payment has been made. The payment made by the hirer is divided into two parts interest charges and repayment of principal. The hirer thus gets tax relief on interest paid and not the entire payment. How does hire purchase work? When a customer buys goods on hire purchase ther e are three parties involved ? The customer who buys the goods ?The retail merchant who sells the goods The finance company who provides the finance You make the initial agreement with the customer. Once the security agreement has been signed you are likely to assign the agreement (including your security interest in the goods) to the finance company. The customer makes payments to the finance company. Whether the security interest will revert back to you will depend on the wrong and conditions of your agreement with the finance company. The normal tripartite hire purchase process between the bargainer, customer and the finance company is as follows ?When the business connection between the finance company and the dealer is first established a master agreement may be drawn up regulating the conditions upon which the finance company is watchful to consider the hire purchase transactions submitted by the dealer. ?After the customer has selected the goods he desires to acquire o n hire purchase, the dealer arranges for him to complete the schedule to a form of hire purchase agreement. The larger finance companies have theirown standard forms of printed agreement. In the schedule to the hire purchase agreement the dealer will go into the hirers name, address, occupation, and certain other details indicating his financial standing. It is also the dealer responsibility to inclose details about the price and the installments payable. ? The intending hirer is oft required to make a down payment as an indication of the customers financial reliability. The deposit or down payment is usually paid to the dealer at the time the proposal form is completed and is normally retained by him as a payment on account of the price to be paid to him by the finance company. The deposit having duly paid the dealer sends the appropriate set of documents to the finance company, requesting the company to purchase the designated goods from him. ?If the finance company decides to accept the transaction, the hire purchase agreement is signed by one of its officers and a duplicate dispatched to the hirer with instructions as to the mode of the installments. At the same time as a repeat is sent to the hirer, the finance company notifies the dealer that the proposal has been accepted and that it is in order for the dealer to deliver the goods, if he has not already done so. Upon notification of acceptance the dealer delivers the goods to thehirer and obtains the hirers trace to a form of delivery receipt constituting an acknowledgement by the hirer that he has received the goods in proper condition. ?The hirer makes payment of hire installment throughout the period of hire ? On goal of the hire term, the finance company issues to the dealer a completion certificate whereupon the hirer becomes the owner of the asset. draw features of Hire Purchase ? Repayment schedules are flexible. An Offer to Hire can be arranged with no deposit or an amount that suits yo u. ? Balloon payments at the end of the term can be arranged. ? Esanda owns the goods until the lowest payment is made, at which point you gain automatic ownership. ? the interest component of the rental and depreciation on the equipment are tax deductible, provided it is used to produce assessable income or the expense is necessarily incurred in carrying on a business. DIFFERENE BETWEEN Hirepurchase AND Leasefinancing Hirepurchase Leasefinancing 1. Depreciation-Hirerisentitledtoclaimdepreciation. 1. Depreciation-lesseeisnotentitledtoclaimdepreciation. 2. Payments-hirercanchargeonlyinterestportionofhirepurchasepaymentsasexpensesfortaxcomputation. 2. Payments-lesseecanchargetheentireleasepaymentsasexpensesfortaxcomputation. 3. Salvagevalue-Oncethehirerhaspaidallinstallmentshebecomestheowneroftheassetandcanclaimitssalvagevalue. 3. Salvagevalue-Lesseedoesnotbecometheownerofthe asset. Thereforehehasnoclaimovertheassetssalvagevalue. Principle of hire purchase 1. Consumer installment credit The ground for distinction here is whether the goods are producer goods or consumer goods. Finance provided to consumers for acquisition of consumer durables is called installment credit. Installment credit for consumers is usually wide in one of the following forms (a) Personal loan this is made directly by the bestow a dealer may introduce company through the consumer. The loan may be unsecured or secured. E. g. by a mortgage on the borrowers property. b) Hire purchase or conditional sale here funds are advanced for the acquisition of particular goods, which the customer take under a hire-purchase or conditional sale agreement, acquiring title on completion of payment. Where title is uncommunicative in this way the agreement usually used is a hire purchase agreement, though some companies use conditional sale agreements. Retail hire purchase agreements take three different forms videlicet ? Direct collection- the dealer sells the goods to the finance tolerate, which l ets them out on hire purchase to the customer.This is the most common form of installment financing and is known in the trade as direct collection because the installments are roll up under a hire-purchase agreement concluded direct between the finance house and the hirer, as opposed to an agreement between the dealer and the hirer which is later discounted under block-discounting agreement. Usually the finance house collects the installments itself from the hirer, and the dealer drops out of the transaction. Such transactions are called non-recourse for the dealer. ? Agency collection this is a variant of direct collection.As before the dealer sells goods to the finance company but in this case signs the agreement himself as covert agent for the finance company and as such agent collects installments on behalf of the company, usually in return for appropriate commission. Because the agreements are in behave handled in blocks, this form of hire purchase is also deceivingly refer red to as agency block discounting, though it is not a form of block discounting at all since there is no assignment of the agreement by the dealer to the finance company and the dealer is acting merely as an agent. Block discounting in this case the dealer enters into the hire purchase agreement direct with the customer and later discounts it to the finance company. Agreements are usually discounted in blocks at a time so it is called block discounting. Once the agreement is discounted the finance company becomes entitled to receive rentals from the hirer concerned but quite commonly, in order not to disturb the business relationship existing between the dealer and his customer, the dealer is made responsible for collecting the installments and remitting these to the finance company. c) Credit sale here the title passes to the customer from the outset. Again the agreement may be with the finance house from the beginning or it may be entered into between the dealer and customer di rect and later assigned by the dealer to the finance house. (d) letting the renting of internal goods is fast developing as a form of installment credit. It is increasingly the practice and to a very larger extent in the U. S. , of finance houses to enter direct into rental agreements relating to domestic goods. DOCCUMENTS IN HIRE PURCHASEAll the parties must sign a hire purchase agreement and the agreement, among other things, must specify the date when the hiring commences, the number of installments, the amount of to each one installment, the time for the payment of each installment, the description of the goods and where the goods are unploughed. Note that the agreement must be in writing. An oral agreement is not a valid hire purchase agreement. Benefits of Hire Purchase ? Retention of cash flow ? Regular Payments ? Existing credit lines preserved ? Cost of acquisition spread overtime ? Repayment schedules can be structured to suit your cash flow. You can obtain the use of goods for minimal cash outlay, so working capital is not significantly affected. ? You may be able to make use of the taxation benefits of hiring. The Hire Purchase Agreement When you buy goods on hire purchase, you and the seller sign a written agreement. ? How many agreements will be made ? How often to pay ? The amount to pay ? When to pay ? Where to pay ? The name and address of the seller Other information in the hire purchase agreement ? What happens if payment is not made as agreed ? The right to repossess goods if one fails to make payments on time ?Ones obligation to keep the goods safe and in good order ? How to return the goods if one cannot pay. This information may be in the fine print on the back of the agreement. If any of this information is missing from the agreement one may not be liable for some of the cost of credit. The agreement cannot be enforced until the required information has been supplied. Lease Financing in Bangladesh Bangladesh is a developing ground , but the national calamity and presidencyal unrest sluggish the industrial growth as well as economic growth of the country.In spites of all these hindrance the growth of leasing companies is a significant indication of our bright prospects. Lease financing was first introduced in Bangladesh in the primeval 1980s. Industrial schooling Leasing Company of Bangladesh Ltd. (IDLC), the first leasing company of the country, was established in 1986 under the regulatory framework of BANGLADESH BANK. It was a joint venture of the Industrial Promotion and cultivation Company of Bangladesh Ltd. (IPDC), foreign Finance Corporation, and Korea Development Leasing Corporation.Another leasing firm, the UNITED LEASING COMPANY Ltd. started its operations in 1989. The number of leasing companies grew quickly after 1994 and by the year 2000, rose to16. The leasing business became competitive with the increase in the number of companies and wider distribution of their market share. There are, how ever, 6 other companies conducting leasing business in the country, although they do not use the word leasing in their names. In terms of money value, the leasing business in Bangladesh increased from Tk 41. 44 million in 1988 to Tk 3. 6 meg in 2000. The leasing companies now operating in the country are Industrial Development Leasing Company of Bangladesh, joined Leasing Company, GSP Finance Company (Bangladesh), Uttara Finance and Investments, Bay Leasing and Investment, Phoenix Leasing Company, Prime Finance and Investment, International Leasing and Financial Services, sexual union Capital, Vanik Bangladesh, Peoples Leasing and Financial Services, Bangladesh Industrial Finance Company, UAE-Bangladesh Investment Company, Bangladesh Finance and Investment Company, and First Lease International.Lease financing, as unionised in Bangladesh, proceeds with the following objectives (a) to assist the increment and promotion of productive enterprise by providing equipment lease financ ing and related services (b) to assist in balancing, modernization, replacement and expansion of existing enterprises (c) to extend financial support to small and medium scale enterprises (d) to provide finance for various agriculture equipment and (e) To activate the capital market byOperating as managers to the issue, underwriters, or portfolio managers. The functions of a lease business include lease financing, short-term financing, house building financing, and merchant banking and corporate financing. In this last group of functions, the leasing business in Bangladesh moved away from regular leasing activities and is now involved in stock-market related activities such as issue management, underwriting, trust management, private placement, portfolio management, and mutual fund operation.Broad capital market operations of the lease financing institutions include bridge financing, corporate counseling, mergers and acquisition, capital restructuring, financial engineering, and lea se syndication. Prominent among the sectors of the economy that now receive lease financing services are textiles, apparels and accessories, transport, construction and engineering, paper and printing, pharmaceuticals, food and beverage, chemicals, agro-based industries, telecommunications, and leather and leather products.Commercial banks and development finance institutions (DFIs) have been the traditional lending institutions in Bangladesh. In fact, the concept of lease financing is a relatively new one in the country. Initially, leasing companies had to adopt the role of educators to make Bangladeshi entrepreneurs aware of the benefits of leasing. However, as DFIs demonstrated vile recovery and fund recycling performances, leasing got the opportunity to develop as an alternative source of funding.A few other factors also resultd to development of the leasing business in the country. For example, the commercial banks have been keener in providing trade financing and FOREIGN EX CHANGE dealings rather than long-term loans because of the risks involved and their longer gestation period. The selection of lease proposals is relatively free from smart pressure and is subject to a quality level appraisal. Under lease agreements in the private sector, projects are sanctioned and implemented expeditiously, resulting in benefits in time and cost savings.Private leasing companies also attract clients by providing relatively better services. The down payments in leasing are not high and the gestation period is low. Also, in case of lease financing, incidental costs incurred in the process of import clearing, installation, and commercial production are capitalized, which substantially reduce the initial investment. Leasing companies, however, face some problems in conducting their business in the country. The relatively slow growth of the demand side compared to the fast growth of the lease business is one such problem.This leads many leasing companies to operate in partial capacity. The culture of loan default that prevails in the country is also a deterrent. Leasing companies often find it difficult to raise funds through short- or long-term borrowing from money and capital markets. They are hard pressed to deal with the financial assets because of the present laws of the country, which are also not in full enforceable. Leasing business is gaining increased importance in the economy of Bangladesh with its gradual transformation from an agrarian to industrial one.The government periodically revises the trade and industrial policy to create a liberal business environment both for domestic and foreign investment. Increased investment in the energy sector as well as in power, transport, telecommunications, water and sanitation, and safe disposal of wastes is expected to bring further opportunities for leasing industries. The traditional sources of funds of our country in the financial market are the Commercial Banks, DFIs and the stock exchang e. But these sources are not sufficient to feelingively meet the growing demand of capital investments for industrialization of the country.And the backdrop of such scenario, leasing companies came forward in the 80s to serving as an alternative source of financing. At present there are 11 leasing companies operating there business. The name of the leasing companies 1. Industrial Development Leasing Company of Bangladesh Ltd. IDLC 2. United Leasing Company 3. Uttara Finance & Investment company Ltd. 4. Phonenix Leasing Company Ltd 5. Bay leasing & Investment Ltd. 6. International Leasing & Finance Company Ltd. 7. GSP Finance company (BD) Ltd. 8. Prime Finance & Investment Ltd. 9. Vonike 0. Prime Bank Ltd. COMPANIES AT A GLANCE IDLC Industrial Development Leasing Company of Bangladesh modified is established in 1985 as a joint venture public Limited Company with the multinational collaboration of International Development Finance Institution ,Commercial Banks, Insurance Company a nd Foreign Leasing Corporation. During the past xiv years of its operation, IDLC has played a catalytic role in providing alternative source of term and capital asset financing to the private sector.IDLCs primary focus has been in the area of 3-5 year term financial leasing with particular emphasis on balancing, modernization, replacement and expansion (BMRE) of existing units. With its pioneering vision IDLC has not only established lease financing as an efficient and quality financial service but also laid the foundation for the creation of ten other leasing companies. Today lease financing has grown to be an industry of Taka 3. 5 billion per annum.IDLC and its institutional shareholders have upheld their commitment towards the development of the financial service sector by offering high quality service to local entrepreneurs. To ensure steady and long term growth as well as to sharpen its competitive edge in a changing and challenging business environment. Short-term Finance wh ich have broadened its customer base and are expected to contribute significantly to IDLCs growth and profitability. IDLC established its first branch office in Chittagong in 1990. In January 1993, the company offered its shares to the public.In terms of market capitalization, it is ranked among the top 20 listed companies in both capital of Bangladesh and Chittagong neckcloth Exchange. Services offered by IDLC Lease Financing IDLC provides lease financing for all types of manufacturing and service equipment including vehicle, computer and medical checkup equipment to all the major industrial and service sector. Short Term Finance With an objective to provide settlement to working capital problems, STF Unit provides different financial services to clients.Emphasis is given to identifying clients actual need and in providing customized service to cater them. House Financing IDLC extends loan facilities to Individuals for purchase of apartments, Business houses professionals for pu rchase of commercial homes (office space chamber display center etc. ) Bangladesh Finance and Investment Company Limited (BFICL) A non-banking finance company incorporated in Bangladesh on 10 May 1999 as a public trammel company. It began business on 15 February 2000. Its authorized and paid up capital are Tk 500 million and Tk 23 million respectively.The capital is divided into ordinary shares of Tk 100 each. Major business objectives of the company are carrying out direct trade, term and working capital financing, equity participation, housing finance, fund management,financial and industrial counseling and merchant banking activities of all types. Main sectors in which the company has targeted to lease and invest are transport, galvanizing and electronic goods (including computers), leather, textile, printing, marine vehicles and equipment, steel and engineering, fishing boats and trawlers, medical equipment and small scale industries.BFICL purchases property in its own name a nd pays 60% to 70% of the total price of a particular property to its supplier. After accumulating and adding all other elevant/ incidental costs with the original purchase price such as transportation, insurance premium, and costs related to letter of credit, and the rent or profit/income margin, the company determines the lease price of the property. Then it signs lease contracts with the lessee, generally for two to four years, and hands over the properties to him for use.The lease contracts require security or collateral from the lessee in various forms. Lease installments, payable generally on a monthly basis, are laid on the basis of the lease price of properties and other relevant factors. Lease contracts are renewed each year. On the expiry of the lease periods/contracts, the lessee can gain the ownership of the leased property/equipment upon payment of 5% of the transfer value of the equipment as salvage value of the property. Alternatively, the ownership and physical poss ession of the property goes back to the lessor.BFICL provides lease facilities against one or more of the following securities (a) bank guarantee/insurance guarantee (b) advantageously AM-HIFC Ahsania-Malyasia haj Investment and Finance Company Limited (AM-HIFC) is a sharia-based non-bank financial institution licenced by Bangladesh Bank under the Financial Institution Act 1993. The company follows the model of Malaysias pilgrims fund and management institution, popularly known as Tabung Hajj which focuses on mobilizing savings from would-be pilgrims who intend to perform Hajj in the Holy Land.It invests its excess fund in Sharia-based activities. As a Sharia-based financial institution, adherence to Sharia is of paramount importance to us and this is embodied in out Vision and Mission statement. Bangladesh Industrial Finance Company Bangladesh Industrial Finance Company Limited (BIFC) is a joint venture Leasing and Financing Company, promoted by a group of Foreign and Local Spon sors. Incorporated as a Public Limited Company in August 1996 and icensed by Bangladesh Bank as a Non-Bank Financial Institution in February 1998, BIFC has been adaptation innovative, customized, prompt and cost effective financial solutions to the socio-economic growth of the country. Delta Brac Housing Finance Delta Brac Housing Finance Corporation Ltd. (DBH) is the pioneer, the largest and the specialist Housing Finance Institution in the private sector of the country. After commencing operation in the early 1997, the company has registered commendable growth in creating home ownership among more than 7,500 families in Dhaka and other major cities of the country.At the same time, the company has been playing an active role in promoting the real estate sector to the large cross sections of prospective clients who had but yet unfulfilled dream of owning a sweet-flavored home. Fareast Finance Investment Limited Fareast Finance Investment Limited-a leasing and financing company s tarted its business in the early 2002 to serve its clients with high ethical standards and accountability. Fareast believes that each of its activities must provide satisfaction to its customers and will start supercharge for them.Financial Management Reform Programme FMRP is a five-year programme jointly financed by the UK Department for International Development (DFID) and the Royal Netherlands Embassy (RNE), and executed by the Ministry of Finance, Government of Bangladesh. Grameen Bank Grameen Bank (GB) has reversed conventional banking practice by removing the need for collateral and created a banking system based on mutual trust, accountability, participation and creativity.GB provides credit to the poorest of the poor in rural Bangladesh, without any collateral. At GB, credit is a cost effective weapon to adjure poverty and it serves as a catalyst in the overall development of socio-economic conditions of the poor who have been kept outside the banking orbit on the ground t hat they are poor and hence not bankable. Professor Muhammad Yunus, the demote of Grameen Bank and its Managing Director, reasoned that if financial resources an be made available to the poor people on terms and conditions that are appropriate and reasonable, these millions of small people with their millions of small pursuits can add up to create the biggest development wonder. GSP Finance Company GSP Finance Company (Bangladesh) Limited (GSPB) was incorporated in Dhaka, Bangladesh on 29th October 1995 with the recorder of Joint Stock Companies and Firms. It started its commercial operation from 17th April 1996 under licence granted by Bangladesh Bank (Central Bank) in accordance with the Financial Institutions Act of 1993. IDCOLInfrastructure Development Company Limited IDCOLs mission is to promote economic development in Bangladesh by encouraging private sector investment in infrastructure projects. IDLC of Bangladesh Ltd IDLC is a multiproduct financial institution, establish ed in 1985 with the collaboration of reputed international development agencies such as Korean Development Leasing Corporation (KDLC), South Korea, Kookmin Bank, South Korea, International Finance Corporation (IFC) of the World Bank Group, Aga Khan computer storage for Economic Development (AKFED), German Investment and Development Company (DEG).Leasing, initiated by IDLC, today, plays a vital role in the mid term financing of industrial and service enterprises. Over the years, IDLC has served the diverse needs of its customers with product offerings ranging from Home Loans for Individuals to Factoring and Work Order Financing for small and medium enterprises (SMEs) and services such as Lease Financing, Syndication, Corporate Advisory, Bridge Financing, Underwriting, Issue Management, Private Placement of Stocks and Debt Instruments for Corporate Customers. IIDFCIndustrial and Infrastructure Development Finance Company (IIDFC) Limited is a Development Financial Institution, promote d by wide array of financial institutions like ten commercial banks, from both the public and private sectors, three insurance companies and Investment Corporation of Bangladesh (ICB). trades union Capital Limited UNION CAPITAL LIMITED is one of the largest investment banks and fastest growing financial institutions in Bangladesh. Previously, it was known as fluid Bangladesh which had its origins and businesses rooted in Hong Kong.Out of the local office of the erstwhile Peregrine Capital Limited of Hong Kong, Union Capital Limited, Dhaka emerged in early 1998 as a Bangladesh-based company led by a group of the foremost entrepreneurs of the country. Union Capital, within a short braces of time, has proved its worth as a most forward-working vigorous organization achieving success with its wide international network and strong local base Leasing Law in Bangladesh Leasing is an asset renting activity, and is therefore, governed by common law. The Contracts Act 1872 applies to contr acts of leases.Sections 148 to 171 of the Contracts Act cover provisions relating to bailment. As these provisions are identical to those applicable under English law, the chapter devoted to general law of leasing adequately covers the law in Bangladesh as well. It may be noted that the general law of contracts is limited to bailments of goods. Goods include movable property only immovable property is not covered by common law. As it the common feature of all Anglo-Saxon good systems, transactions in immovable properties are covered by a separate system of laws.Taxation of Leases in Bangladesh The taxation system in Bangladesh has been a subject matter of criticism over a last few years. The system is characterized by a large number of incentives, tax holidays and concessions as a result of which the share of corporate taxation to total tax collection by the Govt. has come down drastically over the past few years. Taxes on corporate profits, of both domestically and foreign owned companies amounts peanut as a 0. 5% of GDP in Bangladesh, compared with more than 6% in developed nations. The main reason cited for this low contribution is the tax incentives granted by the Govt. Which are very liberal as compared to its counterpart countries. It is probably with tax reform in view that the Govt carried out certain reforms in depreciation laws in Budget 1998-99. Among other provisions, the important change that would have a far reaching effect on leasing companies is the change in