Study into the Variable causing conflict in Nestle

Study into the Variable causing conflict in Nestle 1.0: INTRODUCTION TO NESTLE Nestle was founded in 1866 by Henri Nestle with headquarters in Vevey, Switzerland. It has employed around 250,000 people and has factories or operations in almost every country in the world. It is one of the worlds biggest food and Beverage Companies. The Companys priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives. 1.1: PURPOSE OF RESEARCH The study of the research is to find the variable which has leads towards conflicts in Nestle Organization. The main purpose of the research is, firstly, to identify the causes of conflicts in Nestle and, secondly, to manage conflicts in Nestle organization. This report will be helpful for students who want to conduct a research as well as the company improving or solving the problems. 1.2: BACK GROUND OF THE STUDY All of us experience some type of conflicts in our daily lives. Tensions, antagonisms, and frustrations always occur when people work together. There are disagreements, perhaps even fights, between employees and the supervisor or between co-workers. Aside from personality clashes, people simply have different viewpoints about the way things should be done. The main purpose of conducting the research is to find out the conflicts, and finding the ways to manage and solve them in an organisation. In this context we have got the opportunity to conduct our research on one of the top organizations (Nestle). 1.3: DEFINITION OF CONFLICT Conflict is defined as the state of discord caused by perceived or actual opposition of needs, interests and values. A conflict can be internal or external. The concept of conflict can help to explain many social aspects of life such as social disagreement, fights between individuals, groups, or organizations and conflict of interests. Conflict as taught for graduate and professional work in conflict resolution which is defined as when two or more parties, with perceived incompatible goals, seek to undermine each others goal-seeking capability. However, conflict can also occur in cooperative situations, in which two or more individuals or parties have consistent goals, because the manner in which individuals or party tries to reach their goal can still undermine the other individuals or party. 1.4: NATURE OF CONFLICT Conflict may constructively be viewed as resulting from differing belief systems, varied perspectives on the situation and values resulting from participants accumulated life experience and conditioning, differing interests and objectives. Effectively dealing with conflict requires the expression and management of participants varying interests, belief systems, perspectives and values. Through the integration of participants perspectives, belief systems, interests and values, conflict and conflict resolution play important roles in individual and social evolution and development. Conflict arises when one or more participants view the current system as not working. At least one party is adequately unhappy with the position, that they are willing to own the conflict and speak with the hope of being able to influence the situation to arrive at an improved condition. Conflict may be sight as a process we put ourselves through to attain a new condition and self definition. Through conflict we have opportunities to be artistically self-defining. If nothing else, conflict allows us in future to do things differently. Through the resolution of conflict, we can evolve and redefine ourselves, our community, our relationships our society and our world. 1.5: LEVELS OF CONFLICT 1.5.0: Inter divisional conflict Inter divisional conflicts exists between the perceiver and another individual within the organization. Although the other person does not need to be aware of the conflict, the perceiver of the conflict situation recognizes the present or future impact conflict can have on job performance. 1.5.1: Intra group conflict Intra group conflicts occur between perceiver and his or her immediate group within the organization. The immediate group can consist of work team, department or union. Whether fully or only superficially aware of the conflict issue, the perceiver realizes that the conflict can directly or indirectly affect job performance. 1.5.2: Inter group conflict It arises between the perceivers immediate group and another group within the organization. Again, the perceivers involvement may not be critical, but he or she must be aware of the situation and the potential impact the conflict can have on work performance. 1.5.3: Organizational conflict Organizational conflict is a state of disagreement caused by the actual or perceived opposition of needs, values and interests between people working together. 1.6: TYPES OF CONFLICT A conceptual conflict can rise into a verbal exchange or result in fighting.Conflict can exist at a variety of types. These are Community conflict Diplomatic conflict Emotional conflict Environmental resources conflict Group conflict Ideological conflict Interpersonal conflict Inter-societal conflict Intrapersonal conflict Organizational conflict Religious-based conflict and Workplace conflict . 1.7: CAUSES OF CONFLICTS 1.7.0: Authority relationship Authority Relationship conflicts occur because of the existence of strong pessimistic emotions, misperceptions or stereotypes, poor communication or miscommunication, or repetitive negative behaviors. Authority relationship problems often increase disputes and lead to an unnecessary rising spiral of destructive conflict. Supporting the secure and balanced expression of perspectives and emotions for acknowledgment (not agreement) is one effective approach to managing relational conflict. 1.7.1: Management style For any organization to be effectual and efficient in achieving its goals, the people in the organisation need to have a common vision of what they are determined to achieve, as well as clear objectives for each individual, group/ team and department. Management style also needs ways of recognizing and resolving conflict between people, so that conflict does not become so serious that collaboration becomes impossible. The management of any organisation needs to have ways of keeping conflict to a minimum and of solving problems caused by conflict, before conflict becomes a major obstruction to work. Management style helps to avoid conflict where probable and organizing to resolve conflict where it does happen, as rapidly and smoothly as possible. 1.7.2: Communication barriers: Conflict will be greater when barriers to communication exist. If parties are separated from each other physically or by time e.g.; the day shift versus the night shift-the opportunity for conflict is increased. To illustrate suppose a company employs only one plant supervisor, who works the day shift and leaves orders at the beginning of each week for the workers on the night shift. By the end of the week, how ever, these orders have been only partially carried out. The supervisor cannot figure out why. Obviously, the supervisor absence from the night shift has posed a communication barrier, which in turn causes decreased output. As Bryans, P, Cronin argued in 1984 that Space or time separations could promote isolated group interests rather than advance a common effort towards joint goals. 1.7.3: Personal factors 1.7.3.0: Behavioral The way emotional experience gets expressed which can be verbal or non-verbal and intentional or un-intentional. 1.7.3.1: Physiological Its defined as the bodily experience of emotion. The way emotions make us feel in comparison to our identity. 1.7.3.2: Cultural values Culture tells people who are a part of it, Which emotions ought to be expressed in particular situations and what emotions are to be felt. 1.7.3.3: Physical This escalation results from anger or frustration. 1.7.3.4: Verbal This escalation results from negative perceptions of the annoyers character. 1.8: WAYS OF ADRESSING CONFLICTS There are basically five ways of addressing conflicts which were identified by Thomas and Kilman in 1976. These are 1.8.0: Accommodation Ones party surrenders its own needs and wishes to accommodate the other party. 1.8.1: Avoidance Avoid conflict by ignoring it, changing the subject, etc. As an expedient means of dealing with very minor, non-recurring conflicts or Avoidance can be useful as a temporary measure to buy time. In many cases, conflict avoidance involves severing a relationship. 1.8.2: Collaboration Working together can find a mutually beneficial solution. Collaboration can also be inappropriate and time-intensive. When there is not enough respect, trust or communication among participants for collaboration to occur. 1.8.3: Compromise Finding a centre point where each party is partially satisfied. 1.8.4: Competition Take the ones point of view at the potential expense of another. It can be more useful when achieving the ones objectives outweighs ones concern for the relationship CHAPTER # 2 2.0: LITERATURE REVIEW Different researchers have published their reviews on conflicts in the organization. We are viewing two best reviews of the researchers articles. Mr. Philips in 1982 threw light on some of key conditions, which may lead to serious organizational conflicts; he gave his views in the book named as Community in Organization. According to M Phillips certain social relationships characterized various kinds of conflict behavior. Each one could occur in your work area. The more aware the managers are of these conflict settings, the better are the chances of correcting them and running a smooth operation. Mr. Philip identified communication as problem in his research. The causes of conflicts are structural factors, authority relationships, common resources, goal differences interdependence, jurisdictional ambiguities, specialization, status-inconsistencies, personal factors, communication, conflict management style, cultural differences, emotions, perception, personalities, skills and abilities, values and ethics. According to the researcher, possible solution; it is obvious that a perfect communication system is unlikely. But also per fection like rationality will not be achieved; organizations do have mechanism by which they can attempt the communication system as clear as they can. Philips also suggested that there are such devices available which can reduce the distortion and complications in communication process and suggested that communication recipients should be aware of the biases of the message senders and protect their own counter biases as protection devices. James M Leif John M Penrose in 1997 in the book Business Strategies Skills 5th Edition explained the nature of organizational conflicts identify the causes of conflicts i.e. Structural Factors, Common Resources , Goal Differences , Interdependence ,    Jurisdictional Ambiguities, Inconsistencies ,Personal Factors Communication barriers, Conflict management style ,Cultural differences ,Emotions Perception, Personalities, Skills and abilities, Values and Ethics, Behavioral and Physiological Cognitive. The researchers says that it is possible to avoid conflict by having mechanism such as voting to make decision without the disagreement of consensus. They also find that behavioral regulation fail to match the individual need of employee, conflict is bound to occur. In 1995 B R Siwal in his research Resolution Strategies to Conflict describes that conflict is a necessary and integral part of effective problem solving and realistic discussions. It is core sound of decision making because disagreement is the best vehicle for enlargement the perspective, discovering alternatives, and motivating creative interaction among each member. The effects of disagreement, though, depend on how it is administer by team members. Conflict can be integrative and constructive or it can be distributive and disruptive. When mismanagement occur, conflict can demolish team effectiveness, when handled well it can deeply enhance the quality of team work and make members sense proud of their work in the team. Training in the nature of conflict and the ways of managing it is an imperative need of all the people who participates in problem solving groups, such as those that make up work teams. The negative association of conflicts wants to be dispelled and substitute with more practical conceptions that made the justifiable distinction between disruptive and constructive conflict. When team members see that conflict can be a positive strength in conversation, they are better prepared to take up effective proposal attitudes and behaviors in trouble solving situations. Further more the differences between integrative and distributive conflict can help them learn how their own behavior contributes to the atmosphere of the team which they belong. Davor Dujak in 2008 describes in his research that in every organization conflict encounters on a daily basis. The conflict cannot be avoided but it is probable to mange them in a way that we identify them on time. It is essential to constantly track the organizational signals which position to their existence. If Organization does not respond accordingly, this can lead to the condition that conflict itself manages the organization. One of the more important determinants of productivity, performance and efficiency and finally the job satisfaction is also the conflict as an independent variable of organizational behavior. By systematic research of organizational behavior we want to make a positive influence on the dependents variables, but first we have to realize and get a good approaching to the individual elements of organizational behavior. In 2004 Melanie Lewis describes in her research that if conflict managed poorly or avoided, it can be very costly to an organization. If managed well, conflict presents an opportunity to uncover significance and promote a healthy work place. Many organizations are finding that their conflicts management systems have been good by financial investments, generating a healthy return. In additional they are recognizing the value of many less substantial benefits (lower turnover, increased efficiencies, improved morale and improve public relations). A precise four phased process assessment, design, implementation, operation and evaluation helps organizations design effective conflict management systems to gather the maximum benefit of conflict system. Moreover this four phased approach strongly encourages the team actually to seek to understand and incorporate the needs and interests of all affected constituency, and creates an environment in which the benefits of the system can be effecti vely communicated, implemented and administered. In 2010 De Dreu C.K describes in his research that conflict is a multidimensional with both relationship and task forms. Hence it is expected that if they change the managing type of conflicts, it will plays an important role in organizational performance. While if organization did not manage good, the conflict will plays a negative role. However the researcher discussed only two types of conflicts in his research namely affective and task conflict in order to play better role in organizational performance. After studying the reviews of different researchers, we will take help from different researches but our group decided that we will follow the research of M Philip because they dictate information about factors which are important for identifying conflicts and understanding the meaning of conflict and how it influences the organizations internal environment in solving problems. CHAPTER # 3 RESEARCH METHODOLOGY 3.0: Research type: The type of research that we are conducting is applied research because it is conducted for a particular organization. Applied research is practical applicability of research tools on a particular organizational situation. 3.1: data collection We will be collecting our data by using two sources which are as follows. 3.1.0: Primary data Our primary data is collected through conducting interviews and designed questionnaires from directors, managers and employees of Nestle. 3.1.1: Secondary data The secondary data is collected from past records of Nestle and books along with business articles to support our recommendations and suggestions. 3.2: Sample size During this survey we have taken responses from a Sample size of 30 which is further divided into two groups. We also conducted survey from 10 managers and 20 employees. The sampling type that we used is non random sampling technique because we want to get information from every third employee and manager of Nestle organization. Our survey is in questionnaire and interview form, so our questionnaires consist of open ended and close ended questions. We have conducted unstructured interviews, asked from the respondents to get more information. CHAPTER # 4 ANALYSIS 4.0: INTRODUCTION TO DATA ANALYSIS Data analysis is a practice in which the raw data is ordered and organized in order to extract useful information from it. The process of organizing and thinking about data is the key to understand what the data does and does not contain. There are varieties of ways in which people can approach data analysis, and it is infamously easy to manipulate data during the analysis phase to push certain conclusions. There are different methods for analyzing the data for example surveys, charts, frequency tables, graphs and personal observations etc. 4.1: ANALYSING FOR CORRECTION OF DATA We had conducted unstructured interviews for analyzing of questionnaires which we had made for collecting data from employees and managers to check whether the answers given by them are right or wrong. We had found no matches; the interview opposes the answers given by them in questionnaires. We have analyzed our data through frequency tables and bar charts. 4.2: FREQUENCY TABLE Frequency table is one of the important concepts in mathematical statistics and a good analyzing tool. A table divided into cells by category with counts for each category in each cell. It is a kind of display of a given data, in which the frequency of each data item is found. The frequency of a data item is the number of times it occurs in the data set. 4.3: BAR GRAPH A graph consisting of parallel, usually vertical bars or rectangles with lengths proportional to the frequency with which specified quantities occur in a set of data. A bar graph is a pictographic version of statistical data in which the independent variable can attain only certain discrete values. The dependent variable may be discrete or continuous. The most common form of bar graph is the vertical bar graph, also called a column graph. This type of display allows us to: Compare groups of data, and To make generalizations about the data quickly. 4.4: ANALYSIS OF QUESTIONNAIRES 4.4.0: FROM MANAGEMENT 1) More than the desired output of the employees make can be harmful to the organization?     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  a) YES b) NO Variables Codes Frequency Yes 01 9 No 02 1 Table: 4.4.0.0 Graph: 4.4.0.0 2) There is a free flow of communication among the employees:     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  a) YES b) NO Variables Codes Frequency Yes 01 10 No 02 0 Table: 4.4.0.1 Graph: 4.4.0.1 3) Employees are properly informed about decision taken?     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  a) YES b) NO Variables Codes Frequency Yes 01 7 No 02 3 Table: 4.4.0.2 Graph: 4.4.0.2 4) There is a consistency among the management policies:     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  a) YES b) NO Variables Codes Frequency Yes 01 8 No 02 2 Table: 4.4.0.3 Graph: 4.4.0.3 5) Key post should be through:     Ã‚  Ã‚  a)  Ã‚  Ã‚  Direct Appointment  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  b) Promotion Variables Codes Frequency Direct appointment 01 8 Promotion 02 2 Table: 4.4.0.4 Graph: 4.4.0.4 4.5.1: FROM EMPLOYEES 1) From how long have you been working in this organization?   6 months 1 year 3 years Or more than 3 years Variables Codes Frequency 6 months 01 4 1 year 02 2 3 years 03 10 Or more than 3 years 04 4 Table: 4.5.1.0 Graph: 4.5.1.0 2) What kind of boss do you like to work with?   Friendly Competent Leant Difficult Variables Codes Frequency Friendly 01 17 Competent 02 3 Leant 03 0 Difficult 04 0 Table: 4.5.1.1 Graph: 4.5.1.1 3) Which type of leaderships style do you like the most? Autocratic Democratic Variables Codes Frequency Autocratic 01 18 Democratic 02 2 Table: 4.5.1.2 Graph: 4.5.1.2 4) How does your management is doing the evaluation among the employees? Performance base Merit base Variables Codes Frequency Performance base 01 18 Merit base 02 2 Table: 4.5.1.3 Graph: 4.5.1.3 5) Which management level should be responsible for problems between employees? Choose any of the following Top level Middle level Lower level Variables Codes Frequency Top level 01 2 Middle level 02 17 Lower level 03 1 Table: 4.5.1.4 Graph: 4.5.1.4 Q6: How do you communicate the unforeseen problem with your manager or general manager?   Answer: Most of the respondents suggested that they like to meet the general managers directly for any unforeseen events. Q7: Do you think your organization should involve the employees in decision making? And why?   Answer: Most of employees consider that their managers are capable of taking right decisions and there is no need of involving employees. While few of them suggested that it can be a source of new and creative ideas. Q8: What can you suggest for a better management system?   Answer: Most of the employees have no idea about it. Few of them believe that friendly environment and better salaries can improve management system. 4.6: INTER ORGANISATIONAL CONFLICTS OF NESTLE The nature conflicts in Nestle found out through the unstructured interviews and through questionnaire with the directors the managers of NESTLE Peshawar are as follows: The first thing which found, was the lack of training given to the employees, managers said that in the organization, employees always have to work together in groups, and if some one feels that he/she cannot work within the group, then there is some problem with that employee, but at the same time managers said that it is the organizations responsibility to teach the employees how to work together in groups through proper training. They mentioned that without training the organizations might face serious types of irresolvable conflicts, which are definitely not fruitful to the organization. The second main reason mentioned by the manager of the company was the Selection Biases, manager said that selection biases may also lead to conflicts within the company, and these conflicts are normally personal as well. The manager said that if in cases the top management (directors) interferes in the process of hiring the employees, they might select the wrong person for the right job. On the other hand there may be serious conflicts going on between the managers the directors on the issues of authority and responsibility balance. Further if the manager takes big decisions like job confirmation salary decisions then, there may be conflicts, and these must be taken by the top management (directors). The manager of NESTLE also raised the point of communications problem. They believe that every information must be communicated from their tables. If in any case any employee bypasses the manger, there may be a conflict between them. Manager also said that there is no need of any employee who bypasses the manager to access to the top management (directors). Usually the organizations do have Coordinators who are directly answerable to the top management. He said that the manager will not be able to properly deal with him and conflicts between them will arise. The manager said that young unmarried employees usually indulge in office politics and make conflicts among the employees. According to him only married and experienced persons should be provided with the jobs. Racial problems also create conflicts among the employees. Bad attitude of the manager and arrogant nature of the boss is also one reason of conflicts. The manager said that effective person but highly cooperative person would be proffered in place of an efficient but uncooperative one. The managers presented the following ideas to prevent conflicts: Contractual Jobs Hire fire system. Authority to the managers Some of them had a bit different views. Director held the middle managements capabilities responsible for the conflicts within the organization. He also said that there is no relationship between the authority and reasonability with the conflicts. He proffered the autocratic style of management in the beginning, but it should be shifted to the democratic style in the later portions. Director said that although the centralized system slows down the process of working, but it will also decrease the conflicts between the employees. They said that, if you (Employee) have to be successful in the company, then you have to become a big YES SIR. One of the director also mentioned that horizontal conflicts are more common. Super seeded persons normally indulge in making conflicts. He said that super seeded persons should be terminated in place of super seeding them. Dress code can experience the anger from the employees due to Ethnic affiliations to some dresses. Directors were strongly in favor of Coordinator, they said that a coordinator channels the communication process between the manager and the top management. He also gave the following ideas to prevent the possible conflicts in the organizations: Promotions Clear line of Authority Not more than one employee from same Regional locations and same institutions/Universities. CHAPTER # 5 5.0: CONCLUSION The Organizational Conflicts is itself not a problem, but it is a serious symptom of some factors that are usually ignored while designing the organizational structures. From the literature review, taking samples (convenience) analysis of the data gathered. Some factors are identified that usually are the root cause of the conflicts. Some of these are: Ethnicity Personal Jealousy Arrogant behaviors (low temperament) Communication problems Due to the nature of the issue the responses from the top (Directors), middle (Managers) lower management (Employees) were totally contrary with each other. For this purpose structured questionnaires (covering both open ended and close ended questions) and unstructured interviews were conducted. That made the deductions possible by comparing the verbal and non verbal responses, rephrasing the same questions two-three times to check the consistency of the replies. The ethnic issue is the most important. Due to ethnicity no sampled branch has been successful in implementing the dress code yet. Even though, all the respondents favoured it. It is observed that employees belonging to KHYBER PUKHTUNKHWA are very low tempered. Their frequency of jobs switching is higher than others. It proves that they cannot work in teams and work with an arrogant manager. To conclude, who should be held responsible for conflicts, the manager is the key person who channels the communication whether upward or down ward. 5.1: RECOMMENDATIONS The current thinking should be for the maximum utilization of the companys resources and to push the power and decision making authority down the hierarchy of the organization. This can create more power and flexibility within the company as a whole. Good leaders should not have any problem in delegating power and responsibility. Disagreement with the supervisor should be encouraged as long as it leads to productive results. It is critical for the manager to get diverse work force to work well together and respect their differences. Diversity should be encouraged because it can help the organization in future to adapt to the changing global market. All problems can be prevented from happening and/or rectified, if the middle management (Manager) of the company justifies its position. Middle management plays an anchor role. Manager should be able to deal with all the employees who have different cultural backgrounds, personalities priorities. Hiring experienced and matured managers and providing them training could help the case. On job training of the employees. Open house discussions should be there at least one a month. While assigning the groups to the employees for tasks, it must be assured that all the groups are properly matched. REFERENCE B R Siwal, S 1995, Conflict Resolution Strategies, last viewed date 16 dec, 2010, http://www.scribd.com/doc/19166679/Conflict-Resolution Jacob.Bervich, S 1997, Conflict and Conflict Management in Organizations, last viewed date 12 dec, 2010, .http://docs.google.com/viewer?a=vq=cache:TTsjsLgfD18J:sunzi.lib.hku.hk/hkjo/view/50/5000214.pdf+identifying+organisational+conflict+researcheshl=enpid=blsrcid=ADGEEShq7znNgklQojLZtzDtIpb8Vgf4jN1of_M1wy-yd5fZI-LjOBI4Xj45YLByaD0y5A1_CVEsastRkbrrlGKmH-V1ZA De Dreu C.K, S 2010,

Charpy Impact Test Of Polypropylene At Various Temperatures

Charpy Impact Test Of Polypropylene At Various Temperatures This experiment examined the impact of polypropylene at various temperatures through the Charpy test. Three different forms of specimens including unnotched ones, blunt-notched and sharp-notched were tested to measure the impact energy. Results showed that low temperature resulted in the decrease of impact energy. These results have important implications for human designed applications concerning the toughness of polymers at different temperatures. The study of impact test has become an important aspect of toughness. Some progress has been made to understanding the mechanical characteristics of various polymers, especially toughness. Toughness, ability of a material to absorb energy and deform plastically before fracturing [1], is a concept most people have been accepted. It can be calculated by the areas under a stress-strain curve. Impact test, which describes the response of materials to a sudden high-speed force, can be divided into two different methods. One test method uses an instrument where a pendulum of known energy strikes a sample of defined size and shape. The other one test way uses an instrument where weights or others are allowed to fall freely through known heights on to specimens. [2] The first method mentioned above can be also separated from two kinds, which involve in cantilever (Izod) test and supported beam (Charpy) test. The illustrations of two tests are shown in Fig. 1.The distinct difference between the two methods is the fact that a specimen tested in the Izod is fixed in the horizontal direction instead of vertical direction tested in the Charpy. Fig.1 Izod and Charpy Impact Test (b) Charpy (a) Izod Temperature has an obvious influence in the behavior of polymers, such as tensile strength, shear stress, toughness, etc, because temperature affects the micro-structure of polymers. Among the changes, the inherent toughness is definitely dependent on temperature, structural orientation, stress concentration effects and rate of loading [3]. However, there have been few published reports directly addressing the problem of the effect on polypropylene at various temperatures. This experiment was to make clear of the relationship between the impact strength of polypropylene and temperature referenced in Charpy test. Experimental Equipment The equipment photograph is shown in Fig. 2 and the parameters of it are figured out in Table 1. Fig.2 Charpy impact test system Location: S.2.10 Table 1. Parametres of Charpy Impact Test Equipment Hammer Velocity Hammer Weight Hammer standard 2.9m/s 1.189kg ISO 2. Specimens A number of different rectangular-section standard polypropylene (PP) Charpy test samples including sharp notched, blunt notched and unnotched ones were tested at different temperature conditions. The different specimens are shown in Table 2. which also involves in the sizes (width and thickness) of the testing specimens. à ¢Ã¢â‚¬ ¦Ã‚  ,à ¢Ã¢â‚¬ ¦Ã‚ ¡,and à ¢Ã¢â‚¬ ¦Ã‚ ¢ in Table 2 are the four different dimensions separately. Table 2 Parameters of the specimens Room temperature Experimental Procedures: The specimens are divided into two parts, and one of the parts was put into the freezer before being tested. All of the data of an unnotched specimen at room temperature were input into the via keypad, and the sample was held onto the proper position of the equipment. A pendulum was raised to a specified height and then released when the equipment was started. Then the specimen was separated by the high-velocity pendulum. The impact energy was recorded in the Charpy impact test equipment. Steps 2 to 4 were repeated for each of the unnotched specimens to achieve a series of data. Steps 2 to 5 were repeated for all of the blunt-notched samples and then the sharp-notched samples. Steps 2 to 6 were repeated for the unnotched, the blunt-notched and the sharp-notched at -20à ¢Ã¢â‚¬Å¾Ã†â€™. Results and Discussion 1. Tabulate the individual values and average value of impact energy absorbed by the specimens for each test temperature. The individual data and average values of impact energy absorbed by the specimens for both two temperatures are listed in the two tables below. Table 3 illustrates the data at room temperature, and Table 4 exhibits the data at -20à ¢Ã¢â‚¬Å¾Ã†â€™. 2. Discuss the effect of temperature on impact energy for sharp notched, blunt notched and unnotched samples. Since the impact strength is dependent on the energy absorbed, a structure that is much easier to move will respond better to the impact [4].Therefore, the impact strength will increase with the increase of temperature and rubbery state has higher impact strength than glassy state. The higher the temperature is, the more severely the molecular chains will move. As a result, the impact energy is significantly lower at -20à ¢Ã¢â‚¬Å¾Ã†â€™ than that at room temperature. It can also be found in Table 4. 3. Analyze experimental error (a) When the parameters of specimens were measured, the apparatus error of vernier calipers could not be avoided. At the same time, the location of specimens was changeable, which was an operation error existed. (b) The sharp-notched samples were cut artificially, thus the factitious errors could not be ignored. (c) For the low temperature test, the frozen specimens were moved from a freezer to atmosphere, which might lead to the rising of temperature. As a result, the impact energy got a slight increase. (d) The errors of Charpy impact test equipment could not be ignored. Movement in the clamp and energy imparted to broken fragments might be the factors of the remaining energy of the pendulum and therefore the impact energy increased. [5] 4. Explain the cause of the whitening observed in some of the fractured samples. All kinds of the samples are listed in the Fig.3. Fig.3 The tested samples Through the observing of all different kinds of specimens, whitening is the most obvious in the unnotched samples. Many reasons listed lead to this phenomenon. Stress-whitening crazing usually can be observed for thermoplastics at levels of stress that below those required for large scale yielding. [6]When there is a sudden load to the sample, fracture crazes will be developed. Most of the time, it occurs in amorphous, brittle polymers and generally consist of an open network of polymer fibrils between 10 and 40nm in diameter, interspersed by void of about 10-20nm. [6] Conclusions After the experiment completed, many benefits of toughness and impact test have been listed below. There is a large variety of methods to measure impact energy of polymers and the most common used test is the Charpy test. With the decrease of temperature, the impact energy of same shaped specimens has a significant decline. The whitening of polymers is easier to be observed in the unnotched samples than that in sharp-notched and blunt-notched.

A Letter To Shakespeare :: essays research papers

A Letter to Shakespeare January 23, 1997 William Shakespeare Stratford upon Avon Dear Mr. Shakespeare Just recently, I have read what it probably your most highly acclaimed works, Romeo and Juliet. I must give you credit for doing some great work with it, being that there are many people who enjoy it tremendously, however, I have a few problems with your story. I guess the main point that I am trying to stress, is that your story, yet good, is written to be understood by people from many centuries ago. Much of the script is written in old English, and it is very hard to understand and comprehend for people living today. I know that the setting for the story is several centuries ago, but I think that you could make a more revised version of the story for people today to read. One part that really stuck out to me was the very famous "balcony scene". Much of the language here could use some revision. For example, when Juliet says, "Romeo, Romeo, where for art thou Romeo?", I think it would be much better if she simply said something to the affect of "Romeo, where are you?" since that is practically all she is saying. And at the end of the balcony scene, instead of Juliet saying "Parting is such sweet sorrow," although that is very dramatic, she could just say something like, "I wish you didn't have to go so soon." Another part that I noticed was in the scene where Mercutio was insulting Tybalt, right before they fought in the streets of Verona. Mercutio had called Tybalt "prince of cats" since Tybalt was an ordinary name for house cats at that time. I think that it would be all right to keep this part, however you might want to think about changing Tybalt's name to something that is more common for cats today like Felix or even better, Whiskers, however that might not be a suitable name for a normal person. I think that in making these changes in your story, that it would make it much easier to read for people today, and I think that it might make school students who have to read it, like it even more. You might even want to think about changing the names of the characters to something more modern, or even something just completely stupid so it would appeal to people even more. For example, you could change Romeo and Juliet to Cocaine Chris and Kitty or Josh The Trashman and Maud. I think that would capture the readers' attention much better than just a couple of 16th century A Letter To Shakespeare :: essays research papers A Letter to Shakespeare January 23, 1997 William Shakespeare Stratford upon Avon Dear Mr. Shakespeare Just recently, I have read what it probably your most highly acclaimed works, Romeo and Juliet. I must give you credit for doing some great work with it, being that there are many people who enjoy it tremendously, however, I have a few problems with your story. I guess the main point that I am trying to stress, is that your story, yet good, is written to be understood by people from many centuries ago. Much of the script is written in old English, and it is very hard to understand and comprehend for people living today. I know that the setting for the story is several centuries ago, but I think that you could make a more revised version of the story for people today to read. One part that really stuck out to me was the very famous "balcony scene". Much of the language here could use some revision. For example, when Juliet says, "Romeo, Romeo, where for art thou Romeo?", I think it would be much better if she simply said something to the affect of "Romeo, where are you?" since that is practically all she is saying. And at the end of the balcony scene, instead of Juliet saying "Parting is such sweet sorrow," although that is very dramatic, she could just say something like, "I wish you didn't have to go so soon." Another part that I noticed was in the scene where Mercutio was insulting Tybalt, right before they fought in the streets of Verona. Mercutio had called Tybalt "prince of cats" since Tybalt was an ordinary name for house cats at that time. I think that it would be all right to keep this part, however you might want to think about changing Tybalt's name to something that is more common for cats today like Felix or even better, Whiskers, however that might not be a suitable name for a normal person. I think that in making these changes in your story, that it would make it much easier to read for people today, and I think that it might make school students who have to read it, like it even more. You might even want to think about changing the names of the characters to something more modern, or even something just completely stupid so it would appeal to people even more. For example, you could change Romeo and Juliet to Cocaine Chris and Kitty or Josh The Trashman and Maud. I think that would capture the readers' attention much better than just a couple of 16th century

John as Role Model for Husbands in The Yellow Wallpaper -- The Yellow W

Modern day feminists' enjoy looking into the past to find examples of female oppression. This tactic is employed in the hopes of demonstrating that oppression of their sex by the evil male populous has been going on for decades. One such work that is cited by feminists to showcase just how terrible women were treated in the first part of the twentieth century is Charlotte Perkins Gilman's "The Yellow Wallpaper." Feminists' are quick to point out that the main character in this story is driven down the path of insanity by her uncaring husband. It is of their opinion that John, the main character's husband, consistently neglects her by keeping her locked away upstairs. Other feminists argue that the main character was not actually insane, rather, she was pushed into a temporary state of delirium as a result of the state of confinement that her husband subjected her to. These same feminists will say that John's consistent misdiagnosis of his wife's condition smacks of incompetence. It i s their theory that if the main character were a man during this same period of time, doctors would have treated the condition differently. In other words, men were not diagnosed with hysteria and bedridden for three months when they became depressed. As mentioned before, this is what some modern day feminists think. This is in stark contrast to the interpretation by us modern day realists. John was a good husband that cared deeply about his wife's condition. He is described at the beginning of the story as being "a physician in high standing" (The Norton Anthology, p. 658). This description alone offers deep insight into what kind of treatment his wife was receiving. It is hard to imagine that any woman who is married to an extremely prominent doct... ...he would have taken that golden opportunity to flee the so-called dungeon that her husband had created for her. It can only be assumed that she enjoyed the prison that she created for herself since she didn't flee at any moment of opportunity. In summary, John should be championed as a role model for all aspiring husbands. He consistently showed complete devotion and concern for his wife throughout the story. He did everything within his power to make sure that she would have an expedited recovery from her ailments. John bent over backwards to ensure that all of his wife's needs were taken care of. Leave it to modern day feminists to find harm in that.      Bibliography Gilman, Charlotte Perkins. "The Yellow Wallpaper". The Norton Anthology of American Literature, Ed. Nina Baym. Fifth Edition, Volume 2. W.W. Norton & Company, New York. 1998. P. 657-69.

The History of the American Education System: A look at the 1900s Essay

The History of the American Education System: A look at the 1900s The dawn of the 1900s brought with it progressive education. With a growing population due to an influx of immigrants, many cities decided to build more schools. Chicago was one such city. Before 1889, the city of Chicago had only five high schools. By 1990, the Chicago Board of Education had developed the Chicago Normal School, 15 high schools and 234 elementary schools. These schools provided not only education for students but also job opportunities for many individuals. This dramatic change opened up positions for 5,709 teachers (filled by 394 men and 5,315 women), who were paid about $325 per year. In 1990, there was a total of 255,861 students enrolled in public schools in Chicago. 244,962 of these were enrolled in elementary schools, 10,241 enrolled in high school, 497 in normal school and 188 in the school for the deaf. Average attendance that year was about 199,821. (School attendance officially became compulsory in every U.S. state in 1918.) In high schools, there was an average of 33.9 students per teacher. An average of 42.7 students per teacher characterized the elementary schools in the district. In June of 1990, 1,249 students graduated from Chicago public high schools. Maria Montessori opened the first Montessori school in 1907. She is credited as being a pioneer in the field of education for developing such tools as â€Å"classrooms without walls, manipulative learning materials, teaching toys and programmed instruction,† (Family Education 2004). In 1921, the National Education Association (together with the American Legion) sponsored the... ...virginia.edu/photo/education.html. Sandholtz, Judith Haymore. (2004). Teachers, Not Technicians: Rethinking Technical Expectations for Teachers. Teachers College Record. 106(3), 487-513. Retrieved April 21, 2004, from Academic Search/EBSCO database. Schugurensky, D. (March 2003). History of Education – Selected Moments of the 20th Century. Retrieved March 20, 2004 from http://fcis.oise.utoronto.ca/~daniel_schugurensky/assignment1/. Whitfield, Patricia. (2004). Teachers as â€Å"Healers†: 21st-Cenutry Possibility? Or Necessity? Multicultural Perspectives, 6(1), 43-51. Retrieved April 21, 2004, from Academic Search/EBSCO database. Whitley, Peggy. (2003, July) American Cultural History. Retrieved April 21, 2004 from http://kclibrary.nhmccd.edu/decade90.html

Regent Park

Chapter 7 Essay Q’s 1. ABC Corporation, a Canadian firm, wants to float a bond issue in the United Kingdom. Which choices does the company have? Discuss the main characteristics of each option. What do you recommend? Answer: ABC Corporation can issue foreign bonds (Bulldogs) or Eurobonds. Foreign bonds are bonds issued by a foreign borrower in a national market, in the national currency, and subject to the national securities regulations. Eurobonds are bonds sold in countries other the country that issued the denominating currency.Foreign bonds tend to be registered bonds and subject to the local regulations while Eurobonds tend to be bearer bonds. Generally, foreign bonds are more costly than Eurobonds. Therefore, Eurobonds are likely the better option. page: 157-158 2. A- Canada Inc. has issued a dual-currency bond that pays $555. 10 at maturity per SF1,000 of par value. The company’s cash flows are exclusively in Canadian dollars. a) What is the implicit $/SF exchang e rate at maturity? b) Will the company be better or worse off if the actual exchange rate at maturity is $0. 6123/SF? Answer: a) $555. 10/SF 1,000 = $ 0. 5551 b) The company will be better off.Page: 175, problem 3 3. ZZZ Corp. wants to issue zero-coupon bonds with a 10-year maturity. The implied yield to maturity on these bonds is 5% and ZZZ Corp. wants to raise $10,000,000. (Assume no transaction costs). How much money will ZZZ Corp. have to pay at maturity of the bond? Answer: 10,000,000 (1. 05)10 = $16,288,946. 27 4. Assume Bank of Montreal has two zero-coupon bonds outstanding, each for a face value $100,000,000. Bond A matures in 10 years and sells at a discount of 35% off face value and bond B matures in 20 years and sells at a discount of 60% off face value. Calculate the implied yield to maturity of each bond.Answer: Bond A: 650,000,000(1 + i)10 = 100,000,000 i = 4. 4% Bond B: 400,000,000(1 + i)20 = 100,000,000 i = 4. 67% 5. What happens to the present value of the bonds in 4. , if the implied yield to maturity increases by 1%? Answer: Bond A: 100,000,000/(1. 054)10 = 59,100,872. 35 The present value of the bond decreases by 65,000,000 59,100,872. 35 = 5,899,127. 65 Bond B: 100,000,000/(1. 0567)20 = 33,186,836. 18 The present value of the bond decreases by 40,000,000 33,186,836. 18 = 6,813,163. 82 Chapter 8 [Question] 1. Assume that Nestle shares are trading at SF 300 in Zurich and $ 51 in New York. Each share equals 4 ADRs.The current exchange rate is SF1. 5/$. In the absence of transaction costs, can you make an arbitrage profit? Answer: Yes. Buy one share in Zurich for SF 300 or $ 200 (300/1. 5), exchange to ADRs and sell the ADRs for 4*51 = $204; profit $4 [Question] 2. Assume that Nestle shares are trading at SF 300 in Zurich and $ 51 in New York. Each share equals 4 ADRs. The current exchange rate is SF1. 5/$. If transaction costs are $1 per ADR, can you make an arbitrage profit? Answer: No, transaction costs = potential profit Potential profit in the absence of transaction costs: Buy one share in Zurich for SF 300 or $ 200 (300/1. ), exchange to ADRs and sell the ADRs for 4*51 = $204; profit $4 [Question] 3. What factors go into the decision to cross-list on a foreign exchange? Answer: When deciding whether to cross-list shares on a foreign exchange, the firm has to consider the expected benefits and costs. The benefits may be: to establish a broader investor base for its stock, to establish name recognition in foreign capital markets, thus paving the way for the firm to source new equity and debt capital from investors in different markets, and to expose the firm’s name to a broader investor and consumer groups.The costs include: listing fees, reconciliation of the accounting standards of two countries, compliance with the regulations of the foreign exchange, and investor relations. page: 187. [Question] 4. Assume that Accor shares are trading at A$2. 5 in Sydney and $28 in New York. Each ADR equals 20 shares. The current exchange rate is A$1. 5/$. In the absence of transaction costs, can you make an arbitrage profit? Answer: Yes. Buy one ADR in New York for $28 (or A$42), exchange to shares and sell the shares for A$50; profit A$8 [Question] 5. Assume that Accor shares are trading at A$2. 5 in Sydney and $28 in New York.Each ADR equals 20 shares. The current exchange rate is A$1. 5/$. At what transaction cost per share would there be no profit opportunity? Answer: A$8/20 = A$0. 4 Buy one ADR in New York for $28 (or A$42), exchange to shares and sell the shares for A$50; profit A$8 less transaction cost of 20*. 4 = A$8; profit = 0 Chapter 9 – I don’t believe there will be anything from here tho Chapter 10 [Question] 1. The following information is given: Both parties want to engage in an interest rate swap. Assume that S Bank will arrange for an interest rate swap between X Company and Y Company for 0. % . Also, assume that X Company gets 2/3 of the interest savings available. a) Which company has a better credit rating? b) What is the quality spread differential? c) What is X Company’s preferred type of debt? What rate of interest does it pay on this debt after the swap? d) What is Y Company’s preferred type of debt? What rate of interest does it pay on this debt after the swap? e) Illustrate the cash flows from this swap. Assume that X Company pays LIBOR to S Bank. Answer: a) X Company b) QSD = 2 1. 3 = 0. 7 c) Floating LIBOR . 4 d) Fixed 6. 8% e) [Question] 2.The following information is given. ABC Inc. and XYZ Inc. have agreed to swap their debt payments so that each firm gets its preferred debt terms. They can arrange an interest rate swap through Big Bank. Big bank charges 0. 15% for its services. The remaining savings from the interest rate swap are equally shared by A and B. QSD: 1% . 25% = . 75%; after bank fees: . 75% . 15% = . 60% savings available a) Does ABC Inc. prefer fixed or floating rate debt? What rate does it pay on its p referred debt? b) Does XYZ Inc. prefer fixed or floating rate debt? What rate does it pay on its preferred debt? ) What are the total interest savings available in this interest rate swap? d) Which company has a better credit rating? Answer: a) ABC Inc. prefers floating and pays LIBOR + . 2 b) Interest Savings: 0. 6%. QSD bank fees = (6 5) (LIBOR + . 75 LIBOR + 0. 50) 0. 15 c) XYZ Inc. prefers fixed and pays 5. 7% d) Company ABC has a better credit rating [Question] 3. The following information is given. Boeing and Airbus have agreed to swap their debt payments so that each firm gets its preferred debt terms. Each firm will save the same amount in percentage terms. ) Does Boeing prefer fixed or floating rate debt? What rate does it pay on its preferred debt? b) Does Airbus prefer fixed or floating rate debt? What rate does it pay on its preferred debt? c) What are the total interest savings available in this interest rate swap? d) Which company has the advantage in fixed rate debt? Answer: a) Boeing prefers floating and pays LIBOR + 0. 05%. b) Airbus prefers fixed and pays 5. 5%. c) Interest Savings 0. 4%. d) Boeing has the advantage in fixed dollar debt. [Question] 4. ABC Corporation has entered into a 10-year interest rate swap with a swap bank. ABC Corp. ays the swap bank a fixed-rate of 6 percent annually on a notional amount of EUR100,000,000 and receives LIBOR – ? percent. What is the price of the swap on the seventh reset date, assuming that the fixed-rate at which ABC can borrow has decreased to 5%. Answer: PV of a hypothetical bond issue of EUR100,000,000 with three remaining 6 percent coupon payments at the new fixed rate of 5 percent is EUR100,000,000/1. 1576 = EUR86,385,625. 54 PV of the three coupon payments is: (6,000,000/1. 05) + (6,000,000/1. 1025) + (6,000,000/1. 1576) = EUR 16,339,488. 18 PV of the Bond and its coupon is = 102,725,113. 1 Therefore, the price of the swap = 100,000,000 102,725,113. 61 = 2,725,113. 61 [Question] 5. Canada Corporation enters into a 2-year interest rate swap with Bank A in which it agrees to pay the swap bank a fixed-rate of 5 percent annually on a notional amount of US$1,000,000 and receive LIBOR – 1 percent. Determine the price of the swap on the first reset date, assuming that the fixed-rate at which Canada Corporation can borrow has stayed unchanged. Answer: PV of a hypothetical bond issue of US$ 1,000,000 with one remaining 5 percent coupon payments at the fixed rate of 5 percent is US$1,000,000Therefore, the price of the swap = 1,000,000 1,000,000 = 0 Chapter 11 [Question] 1. A US investor bought shares in ABC Inc. on the Frankfurt Stock Exchange 2 years ago for EUR 10,000. The exchange rate at that time was EUR 1. 20/USD. Currently, the shares are worth EUR 11,000 and the exchange rate is EUR 0. 80/$. Calculate the investor’s annual percentage rate of return in terms of the U. S. dollars. Answer: The annual percentage rate of return is: 28. 45%. 2-year rate of ret urn = (11,000/0. 8 10,000/1. 2)/(10,000/1. 2) = 0. 65 (1 + r)2 = 1. 65 r = 0. 2845 [Question] 2. A US investor bought shares in ABC Inc. n the Frankfurt Stock Exchange 2 years ago for EUR 10,000. The exchange rate at that time was EUR 1. 20/USD. Currently, the shares are worth EUR 11,000 and the exchange rate is EUR 0. 80/$. The investor had sold EUR 10,000 (the principal investment amount at the same time that the stock was purchased) forward at the forward exchange rate of EUR 1. 15/$. What is the dollar rate of return? Assume that the unhedged portion of the investment is exchanged at the current exchange rate. Answer: The annual dollar rate of return is 9. 25%. 2-year rate of return = (10,000/1. 15 + 1,000/0. 8 10,000/1. )/(10,000/1. 2) = 0. 1935 (1 + r)2 = 1. 1935 r = 0. 0925 [Question] 3. In May 2003 when the exchange rate was Yen 110/$, Nissan Motor Company invested ? 1,100,000,000 in pure-discount U. S. bonds and liquidated the investment one year later when the exchange rat e was Yen 105/$. The Yen rate of return earned on this investment was 10%. a) Calculate the dollar amount that the bonds were sold at. b) Calculate the dollar rate of return of this investment. Answer: a) The dollar amount that the bonds were sold at is: $11,523,809. 0. 1 = (X*105 1,100,000,000)/1 ,100,000,000) b) The dollar rate of return is:15. 4%. (11,523,809 10,000,000)/10,000,000 = . 1524 [Question] 4. A Canadian investor buys shares in DaimlerChrysler on the New York Stock Exchange when the stock’s price and the exchange rate were US$ 40 and US$0. 70/C$ respectively. One year later the investor sells the shares for US$ 41 and the exchange rate is US$0. 80/$. a) Calculate the investor’s annual percentage rate of return in terms of the U. S. dollars. b) Calculate the investor’s annual percentage rate of return in Canadian dollars. Answer: a) Rate of return: (41 40)/40*100 = 2. 5% b) Purchase price in Canadian dollars = 40/. 70 = 57. 4 Selling price in Canadi an dollars = 41/. 80 = 51. 25 Therefore, the Canadian dollar rate of return is: R(C$) = [(51. 25 57. 14)/51. 25] 100 = 10. 313% Chapter 12 1. How can operating exposure be managed? Answer: The object of managing operating exposure is to stabilize cash flows when exchange rates are fluctuating. There are a number of ways in which operating exposure can be managed: (1) selecting low cost production sites (2) using a flexible sourcing policy (3) diversification of the market (4) product differentiation and R&D efforts (5) financial hedging page: 302-304 [Question] 2.Banff Inc. is headquartered in Calgary and produces high-end living room furniture. The firm has a subsidiary in Germany. The wooden frames of the sofas are made in Calgary by an independent contractor and then shipped to Germany. The German subsidiary then upholsters the sofas using Belgium fabrics. Each frame costs the subsidiary C$1,500. The materials and labour for the upholstery amount to euro 2,000 per sofa. Fixed ove rhead costs are euro 1,500,000 for the subsidiary. Banff Inc. expects to be able to sell 3,000 Sofas for 5,000 euros each. The firm can depreciate 1,000,000 euros per year.The German income tax rate is 40%. The current exchange rate is C$1. 5/euro. How would the operating cash flows (expressed in Canadian dollars) change if the exchange rate is C$1. 6/euro, all else equal? Answer: The operating income would increase by C$340,000. [Question] 3. Banff Inc. is headquartered in Calgary and produces high-end living room furniture. The firm has a subsidiary in Germany. The wooden frames of the sofas are made in Calgary by an independent contractor and then shipped to Germany. The German subsidiary then upholsters the sofas using Belgium fabrics.Each frame costs the subsidiary C$1,500. The materials and labour for the upholstery amount to euro 2,000 per sofa. Fixed overhead costs are euro 1,500,000 for the subsidiary. Banff Inc. expects to be able to sell 3,000 Sofas for 5,000 euros each. The firm can depreciate 1,000,000 euros per year. The German income tax rate is 40%. The current exchange rate is C$1. 5/euro. How would the operating cash flows (expressed in Canadian dollars) change if the exchange rate is C$1. 4/euro, all else equal? Answer: The operating income would decrease by C$ 340,000. [Question] 4. Banff Inc. s headquartered in Calgary and produces high-end living room furniture. The firm has a subsidiary in Germany. The wooden frames of the sofas are made in Calgary by an independent contractor and then shipped to Germany. The German subsidiary then upholsters the sofas using Belgium fabrics. Each frame costs the subsidiary C$1,500. The materials and labour for the upholstery amount to euro 2,000 per sofa. Fixed overhead costs are euro 1,500,000 for the subsidiary. Banff Inc. expects to be able to sell 3,000 Sofas for 5,000 euros each. The firm can depreciate 1,000,000 euros per year.The German income tax rate is 40%. The current exchange rate is C$1. 5/e uro. How would the operating cash flows (expressed in Canadian dollars) change if the exchange rate is C$1. 4/euro, the German inflation rate is 3% but the firm will not be able to raise the price for its products and due to new competition from the Russian market (with a more favorable exchange rate) unit sales drop to 2,500? Answer: The operating income would decrease by C$ 1,276,000. [Question] 5. ABC Inc. , a Canadian paper manufacturer, has a subsidiary in the United States which sources its wood from Canada.The US dollar depreciates rapidly. Discuss the likely competitive and conversion effects of the depreciation of the US dollar. Answer: The depreciation of the US dollar may alter the firm’s competitive position in the US market place. First of all, the input costs of the subsidiary in terms of US dollars are increasing. If the competitors source their raw materials in the United States, the competitive position of ABC Inc. ’s subsidiary will be eroded. The con version effect implies in this case that the US dollar operating cash flows will be translated into a lower Canadian dollar value. page: 297-298Chapter 13 1. Sonnenschein A. G. , a German retailer of solar panels just bought panels for US $ 100,000 to be paid in 120 days. As the financial manager, you are responsible for making a recommendation on the best hedging choice available to Sonnenschein A. G. You check with your banker and find out the following: The spot bid and ask rates are USD 1. 1001/EUR and USD 1. 0953/EUR respectively and the 120-day forward rates are EUR 0. 8850/USD and EUR 0. 8950/USD. Determine the net payables if Sonnenschein uses a forward hedge to manage its payables. Answer: US$ 100,000*0. 8950 = EUR 89,500 Question] 2. Pile-of-Bones Inc. , headquartered in Regina, just bought snowblowers for US $ 100,000 to be paid in 90 days. As the financial manager, you are responsible for making a recommendation on the best hedging choice available to Pile-of-Bones Inc. You check with your banker and find out the following: The current spot rate is C$ 1. 35/US$ and the 90-day forward rate is C$1. 36/US$. The interest rates are 5% in the United States and 6% in Canada. a) What are the net payables if Pile-of-Bones uses a forward hedge? b) What are the net payables if Pile-of-Bones uses a money market hedge? ) Which type of hedge should Pile-of-Bones use? Answer: a) 100,000*1. 36 = 136,000 b) 100,000/(1 + . 05/4) = 98,765. 43 98,765. 43*1. 35 = 133,333. 33 133,333. 33*(1 + . 025) = 136,666. 67 c) Pile-of-Bones should use forward hedge. [Question] 3. Soleil Inc. , a French manufacturer of sunscreen, has agreed to sell sunscreen to a Danish retailer for 2 million Danish kroner to be received in 180 days. The current spot rate is DKR5. 02/EUR and the 180-day forward rate is DKR5. 23/EUR. The current interest rates are 5% in Denmark and 4% in France. Should the firm use a forward hedge or a money market hedge?Explain. Answer: The net proceeds from a forw ard hedge are: 2,000,000/5. 23 = 382,409. 17 The net proceeds from a money market hedge are: 2,000,000/(1. 05) = 1,903,761. 90 1,903,761. 90/5. 02 = 379,434. 64 379,434. 64*1. 04 = EUR394,612. 02 Since the net proceeds from the money market hedge are higher than from a forward market hedge, Soleil should use the money market hedge. [Question] 4. Quebec Inc. , manufactures prefabricated houses in Quebec and sells them all over the world in local currencies. The firm has just received an order from China for renminbi 8,280,000 to be paid at delivery in 1 year.The Chinese renminbi is pegged to the US dollar at an exchange rate of 8. 28 per dollar. Does Quebec Inc have a transaction exposure? Explain. Answer: Quebec Inc is exposed to exchange rate risk. First of all, the Chinese government may choose to change the exchange rate at which the renminbi is pegged or drop the peg altogether within the next year. Even if the government does not intervene, Quebec Inc. is exposed to the US doll ar-Canadian dollar exchange rate since the renminbi is pegged to the US Dollar and not the Canadian dollar. [Question] 5. Fashion Shoes Inc. anufactures its shoes in Milano, Italy. The company just received an order from the United States for USD 1 million to be received in one year. The current spot rate is EUR 1 /USD and the 1 year forward rate is EUR 1. 01/USD. The current interest rates are 4% in the United States and 5% in Italy. A call option on the US dollar is available with a strike price of EUR 1. 01/USD and a premium of EUR 0. 03 and a put option is available with a strike price of EUR 1/USD and a premium of EUR 0. 025/USD. Determine the net proceeds from a forward hedge and an options hedge. Which option should Fashion Shoes use?Answer: Forward hedge: USD 1,000,000*1. 01 = EUR 1,010,000 Option hedge: Use the put option on the USD. Net proceeds from the options hedge: Strike price: USD 1,000,000*1 = EUR 1,000,000 Less premium in year 1 euros: 1,000,000*0. 025(1 + . 05) = 26,250 net proceeds: 1,000,000 26,250 = 973,750. The choice of the hedging strategy depends on exchange rate expectations. The option will provide a minimum of EUR 973,750 but if the dollar strengthens (i. e. the spot rate in one year is greater than EUR1. 03625/USD) the option will provide higher cash flows than the forward hedge.

Salem Trials: A Lesson from History

Salem was taken from the word, â€Å"Jerusalem†, seat of Christianity. This is where Christ trudged on and lived a holy life but became ironically symbolized in America by people become crazy. It has gained notoriety due to cruelty that pervaded in 1692 in that village in Massachusetts. â€Å"Time is the Mother of Truth and Truth the Daughter of Time† (Hale), scholars have studied documents surrounding that incident in Salem. The truth was told through documented events of those fateful days when those innocent people were tagged as ‘witches’. The people of Salem acted on suspicion without substantial bases for accusing one hundred fifty villagers of a crime that is ‘witchcraft’. They have admitted to a mistake that was horrible, became a controversy for ages, and a lesson for humanity. (Hale) Several factors influenced the villagers to act in such frenzy: politics, religion, and hysteria. For lack of a strong leader who can effectively give direction to the people’s thinking, the incident went out of hand. Even the leaders themselves were controlled by the situation, perhaps, due to hidden interests as well. P. S. Nissenbaum) Internal bickering in the community is not exceptional for it also occurs in other New England communities at that time. Add to it a weak institution that can handle the population. They were claiming to see an apparition of the witches at their beds. (P. B. Nissenbaum) Having them hanged will not make any difference using that argument. The devil can harm them in whatever form us ing their kind of thinking. It is incomprehensible how individuals can be united to wreak havoc upon other individuals. People of such ignorance have been put together to teach humanity how extremism and stupidity can cause such a tragedy. The lives of the people who were innocent of a crime that is witchcraft which was not proven enough were put to waste due to the cruelty that beset upon them. They had to suffer in jail and have to go through torture because their co-villagers were obsessed with the idea of a devil that is lurking around their lives and is causing an illness which they do not understand. They used the words: â€Å"fits†, â€Å"odd postures†, â€Å"foolish, ridiculous speeches†, â€Å"distempers†, etc. o describe what are being manifested by the victims of witchcraft as they said. (P. S. Nissenbaum) One was seen crawling on the floor during an attack. (P. S. Nissenbaum) The symptoms that were being manifested by the said victims of witchcraft could be epilepsy. This illness has always been associated with demonic possession which can not be cured. The stig ma that can be brought upon the individual experiencing this can be enormous that it is convenient to blame it on somebody performing witchcraft upon him/her experiencing it. This can be genetic and in Salem during that time, having fifteen children in a family was the average. It is not negligible to note that this disease could be running in families. Not to mention the hysteria that came with it. Children were manipulated by adults to say things or even their musings were interpreted to mean according to how they wanted it to mean. (P. S. Nissenbaum) The colonies of England included Massachusetts which was under the laws that govern these colonies. In England, witchcraft was a capital crime as declared in 1641. Chronology of Events Relating to the Salem Witchcraft Trials) Anyone suspecting of witchcraft activities were hanged by the stake. The colonial village of Salem was a staunch believer of the Bible. They took to the letter every bit of the Scriptures. They have become extremists that they have forgotten that ‘love’ was taught by Christ primarily. The ministers who were at a loss in governing the villagers conveniently blame witchcraf t as the culprit in the disunity eminent among the folks. Disputes led the villagers to falsely accuse innocent citizens in response to the hysteria that pervaded them. The early ministers who led them were also blinded by their desire for territory. It was a difficult time for this colonial town. Land was getting scarce while families were becoming big. They work very hard on their farms only to be obliterated by blights. (P. S. Nissenbaum) Children were not allowed to play: girls were taught to spin yarn and help in the household while the boys were brought by the men to help them to hunt. They did not have the opportunity to play as normal children would. These children were deprived of the happiness of childhood. It is not surprising if they would deliberately act out abnormal behavior because opportunities to play were rare. It is possible that acting out those eccentricities was a form of ‘play’ for these deprived children. Their sense of awe and wonder were suppressed by the adults. Their words were twisted by the older ones to serve their purpose. (P. B. Nissenbaum) They lived at a time when there were no other forms of entertainment but chores. It was also a time for New England to be established. Institutionalizing law and order was especially difficult in this part of the colony. Political disputes were prevailing in terms of who would minister the community. They were like a flock in need of a shepherd. But the shepherds who should be taking care of them also have vested interests. They carry within them their wants and needs. The chronology of events is very telling about man’s desire for power and control. The judicial system was used and manipulated according to the whims of the judges. (Chronology of Events Relating to the Salem Witchcraft Trials) The humble investigation of John Hale speaks of how erroneous the system is in handling the cases in Salem. With all humility he explained that what transpired in Salem was a lesson learned for humanity. Quoting from the Scriptures, he reiterated that the innocent must not suffer. (Hale) The evidence against them was obviously weak based on spectral evidence that Governor Phipps opposed. (Chronology of Events Relating to the Salem Witchcraft Trials) He was able to save lives due to be hanged in the Gallows. After fourteen years, one of the accusers, Ann Putnam, publicly apologizes for her actions in 1692. The event in 1692 was very unfortunate for the people in Salem. Hysteria emanated in that village due to numerous factors. One would see how religious extremism can drive people to do harm towards others which are contrary to the teachings of religion. Greed and desire for power can attribute to people’s insensitivity and delusions. It was formally admitted as a mistake by the government of Massachusetts in 1957 (Chronology of Events Relating to the Salem Witchcraft Trials) and a good reminder for everyone of the cruelty that occurred centuries ago. This is a lesson learned which must be avoided. It is important that judicial system must be respected by honoring facts; biases must be avoided; and the right to be represented must be observed. Law and order are present for people’s protection. These should not be used to cause harm to a nation’s citizens. Leaders appointed are also responsible of the people’s safety. They must safeguard the lives entrusted them. It is important for them to ensure that due process must be served in the courts. This incident must never happen again.