Sickle Cell Disease: Causes, Effects and Treatment

Sickle Cell Disease: Causes, Effects and Treatment Abstract Sickle cell disease is a genetically inherited hematological (blood) disorder that results from a mutation in the beta globin gene that is responsible for the development of hemoglobin. Hemoglobin is the protein that delivers oxygen to the red blood cells throughout the body. In the disease, a mutated variant of normal hemoglobin generates an abnormal structure of the cells, leading to the development of symptoms. Sickle cell anemia and beta thalassemia are two common types of sickle diseases that are discussed in this review. The symptoms, complications, and therapies are also highlighted in the context of the pathophysiology of the disease. Sickle Cell Disease: An Overview Sickle cell disease is a genetically inherited blood disorder and it is characterized by an abnormal structure or production of hemoglobin. Hemoglobin is the protein in red blood cells that transports oxygen to cells throughout the body (National Institutes of Health, 2014). The disease results from a mutation in the beta globin gene causing a class of sickle diseases, such as sickle cell anemia and beta thalassemia (Thein, 2008). Together, they are often referred to as the beta hemoglobinopathies and present a range in disease severity (Thein, 2008). Beta globin is a protein that produces hemoglobin and the gene mutation in both diseases produces abnormal variants of hemoglobin in the blood. This results in either a predominance of abnormal hemoglobin molecules in red blood cells or an absence of normal hemoglobin, and thus, normal red blood cells (Edwards et al., 2005). There are a number of available therapies that manage sickle cell disease and the only curative treatment is hema topoietic cell transplantation. Pathophysiology of Sickle Cell Disease The National Institutes of Health reports that sickle cell disease is the most common inherited blood disorder in the United States and it affects 70,000 to 80,000 Americans (National Institutes of Health, 2014). It is estimated to occur in 1 in 500 African Americans and 1 in 1,000 to 1,400 Hispanic Americans (National Institutes of Health, 2014). The disease affects 30 million people worldwide and it is most common among people who have ancestors from Africa, Mediterranean countries, the Arabian Peninsula, India, parts of South America, Central America and the Caribbean (Khoury, Musallam, Mroueh, Abboud, 2011; National Institutes of Health, 2014). As it is an inherited disease, the sickle gene is presumed to have a genetic advantage in which it protects from the development of malaria infection (Stuart Nagel, 2004). There are many types of sickle diseases, such as sickle cell anemia and beta thalassemia. Sickle cell anemia is considered the most commonly occurring type of sickle c ell disease (National Institutes of Health, 2014). In sickle cell anemia, hemoglobin S replaces both beta-globin and the sixth amino acid is changed from glutamic acid to valine (National Institutes of Health, 2014; Rees Gibson, 2011). Sickle cell trait is not considered a disease and it is found in approximately 1 in 10 African Americans (Edwards et al., 2005). When both parents have the sickle cell trait, there is a one in four chance with each pregnancy that the child will have sickle cell anemia (Edwards, et al., 2005). Today, many health organizations offer newborn screenings that can determine if a child has either the disease or trait (National Institutes of Health, 2014). The development of the disease occurs due to the polymerization of deoxygenated hemoglobin S (Chirico Pialoux, 2012). The polymer formation modifies the normal red blood cell disc shape into a rigid, irregular-shaped, unstable cell and causes intravascular hemolysis, or rupture of the cells, to release hemoglobin into the plasma of the blood (Chirico Pialoux, 2012). The repeated polymerization leads to sticky blood cells (blood cell adhesion), obstruction of blood vessels (vasocclusion), and restriction of blood supply to tissues and organs in the body (ischemia) (Chirico Pialoux, 2012). Additionally, the endothelium and leukocyte, or white blood cells, are also found to play a role in disease mechanisms. Studies have found a connection between the endothelium, a thin layer of cells that line the interior surface of blood vessels, and sickled red blood cells (Stuart Nagel, 2004). The red blood cell receptors that are associated with cell adhesion are present in increased numbers on sickled immature red blood cells and mature sickle cells compared to normal red blood cells (Stuart Nagel, 2004). This finding demonstrates a structure-function abnormal activity that leads to coagulation on cell surfaces, leading to anemia (Stuart Nagel, 2004). Like cell adhesion, leukocytes have an impact in disease activity. White blood cells are found to be at an increased baseline in sickle cell disease, which serves as an independent risk factor for pulmonary and cardiac complications (Stuart Nagel, 2004). The size of the white blood cell, its rigidity, and adhesive characteristics are implicated in microvascular blood flow, vascular inflammation, and vasocclusion (Stuart Nagel, 2004). Clinical Symptoms of Sickle Cell Disease The clinical manifestation of sickle cell disease can lead to inflammatory responses and may result in acute chest syndrome, pulmonary hypertension, and stroke (Chirico Pialoux, 2012). People with sickle cell disease may also encounter several physical complications, such as delayed growth, fatigue, headaches, and cerebral vascular damage (Edwards et al., 2005). Acute chest syndrome is considered the second most common cause of hospital admissions and a leading cause of death in patients with sickle cell disease (Khoury, Musallam, Mroueh, Abboud, 2011). It involves the presence of a pulmonary infiltrate on a chest X-ray and the symptoms may include chest pain, a temperature of more than 38.5 degrees Celsius (101.3 degrees Fahrenheit), tachypnea (rapid breathing), wheezing or cough ((Khoury, Musallam, Mroueh, Abboud, 2011). The symptoms at clinical presentation vary with age as wheezing, cough, and fever are common in children 10 years or younger (Khoury, Musallam, Mroueh, Abboud, 2011). Pain in the arms and legs and shortness of breath are more commonly presented in adults with the disease (Khoury, Musallam, Mroueh, Abboud, 2011). It is believed that there are three mechanisms involved in acute lung injuries, which include infection, fat embolization (clotting) from bone marrow, and sequestration of sickled red blood cells (Khoury, Musallam, Mroueh, Abboud, 2011). People with sickle cell disease have an increased risk for developing infections, particularly pneumonia. Treatment for acute chest syndrome is primarily supportive and includes supplemental oxygen to keep the saturation above 92% (Khoury, Musallam, Mroueh, Abboud, 2011). Pain is considered the most frequent complication associated with the disease and acute chest syndrome stimulates this crisis (Edwards et al., 2005; Khoury, Musallam, Mroueh, Abboud, 2011). Repeated episodes of acute chest syndrome predispose patients to chronic pulmonary disease, such as pulmonary hypertension (Stuart Nagel , 2004). The occurrence of asthma is also associated with the increased incidence of acute chest syndrome, which is considered a comorbid condition found in people with sickle cell disease (Khoury, Musallam, Mroueh, Abboud, 2011). Beta Thalassemia Beta thalassemia is a common genetic blood disease that reduces hemoglobin production (National Institutes of Health, 2014). The hemoglobin gene mutation results in an unusually low level of beta-globin (National Institutes of Health, 2014). There are different levels of thalassemia based on the number of copies of beta thalassemia alleles or different copies of the same gene (Thein, 2008). The variety in alleles impacts the deficit in beta globin production, which, in turn, impacts disease severity (Thein, 2008). Carriers, for example, who have inherited a single copy of the beta thalassemia allele are clinically asymptomatic and may demonstrate mild anemia (Thein, 2008). Unlike a globin imbalance that is found in sickle cell anemia, variants of beta chains are broken down and result in ineffective red blood cell production in beta thalassemia (Thein, 2008). Physical complications involve cardiac and bone disease, bilirubin metabolism, and iron metabolism. Such symptoms may include jaundice and a predisposition to gallstones (Thein, 2008). Treatment for Sickle Cell Disease Several complications may emerge from sickle cell disease, whether it is in sickle cell anemia or in beta thalassemia. The purpose of therapies for sickle cell disease is to prevent and treat complications (Inati, Chabtini, Mounayar, Taher, 2009). The treatment of sickle cell disease is best achieved by decreasing the amount of hemoglobin S through the prevention of its production (Inati, Chabtini, Mounayar, Taher, 2009). People with severe sickle cell disease are treated with three validated therapies: hydroxyurea, transfusion and chelation therapy, and a hematopoietic or stem cell transplant (Inati, Chabtini, Mounayar, Taher, 2009). Hydroxyurea has been shown to be an effective form of treatment for children and adults with the disease. It has been demonstrated to reduce pain and acute chest syndromes, and it decreases the frequency of hospitalizations and the need for transfusions. This therapy has also been found to play a role in stroke prevention (Inati, Chabtini, Mounayar, Taher, 2009). At a molecular level, hydroxyurea reduces the adhesion of sickle red cells to endothelial cells. It also modulates endothelial cell activation and nitric oxide generation (Inati, Chabtini, Mounayar, Taher, 2009). Nitric oxide has been found to affect acute and chronic complications of sickle cell disease (Stuart Nagel, 2004). Nitric oxide, on a normal functioning level, induces relaxation of smooth muscle and dilation of blood vessels. In sickle cell disease, the bioavailability of nitric oxide is impaired, resulting in an imbalance between endothelial production and consumption (Stuart Nagel, 2004). The lungs are most affected by a reduction of nitric oxide and tend to constrict, which predisposes an individual to acute chest syndrome (Stuart Nagel, 2004). No adverse effects have been thus far reported on the usage of hydroxyurea and any toxicity is typically reversible (Inati, Chabtini, Mounayar, Taher, 2009). Transfusion therapy is currently considered a standard of care treatment for primary and secondary stroke prevention in children with sickle cell disease (Inati, Chabtini, Mounayar, Taher, 2009). It is used for short and long term management, preventing a first stroke in high-risk children as well as preventing against a recurrent stroke (Inati, Chabtini, Mounayar, Taher, 2009). Transfusions are also used for chronic and severe pain or in cases when patients with acute chest syndrome do not respond to hydroxyurea (Inati, Chabtini, Mounayar, Taher, 2009). Chelation therapy is used for patients who experience iron overload. Iron overload is a serious and inevitable outcome from receiving regular transfusion therapy (Inati, Chabtini, Mounayar, Taher, 2009). Unless treated, iron overload may result in severe organ damage and other life threatening complications and this treatment mediates this by removing excess metals from the body (Inati, Chabtini, Mounayar, Taher, 2009). While hydroxyurea, tranfusions, and chelation therapy aim to prevent and treat complications, they do not cure sickle cell disease (Inati, Chabtini, Mounayar, Taher, 2009). The currently available curative treatment is a stem cell transplant. A transplant is indicated in those patients who experience complications, such as recurrent severe pain, acute chest syndrome, and stroke (Inati, Chabtini, Mounayar, Taher, 2009). Only one-third of affected children meet the criteria for a stem cell transplant as it is an aggressive and serious procedure (Inati, Chabtini, Mounayar, Taher, 2009). The goal of a stem cell transplant is to replace the host’s marrow with normal cells, resulting in a new immune system (Stuart Nagel, 2004). Studies on stem cell transplant as a curative option for patients with severe sickle cell disease are demonstrating mean overall survival and event-free survival rates between 95 and 85% (Inati, Chabtini, Mounayar, Taher, 2009). Significant advancements have been made for pediatric patients who have beta thalassemia and were treated with a stem cell transplant. Over the last three decades, disease-free survival rates have exceeded 80% in patients who received transplants from biologically compatible family donors (Mehta Faulkner, 2013). Sickle cell disease is a genetically inherited blood disorder that is primarily diagnosed in people who have ancestors from Africa, Mediterranean countries, the Arabian Peninsula, India, parts of South America, Central America and the Caribbean (Khoury, Musallam, Mroueh, Abboud, 2011; National Institutes of Health, 2014). The disease results by a mutation in the gene that creates beta globin, which is the protein that is responsible for producing hemoglobin. Hemoglobin is the protein in red blood cells that transports oxygen to the body’s organs and tissues. When the mutation occurs, a hemoglobin variant is produced, resulting in a structural and functional change in the red blood cells. Several physical complications emerge in both children and adults who have the disease. These may include, but not limited to, pain, acute chest syndrome, cerebral and vascular damage (Edwards et al., 2005). There are three primary therapies for managing and/or treating the disease. These inc lude the drug, hydroxyurea, transfusion and chelation therapy, and hematopoietic cell transplantation (Inati, Chabtini, Mounayar, Taher, 2009). More research is underway in the development of additional treatment options, such as gene therapy and clinical trials are exploring this possibility. References Chirico, E. N., Pialoux, V. (2012). Role of oxidative stress in the pathogenesis of sickle cell disease. International Union of Biochemistry and Molecular Biology Life, 64 (1), 72-80. Edwards, C. L., Scales, M. T., Loughlin, C., Bennett, G. G., Harris-Peterson, S., De Castro, L. M., Whitworth, E., Abrams, M., Feliu, M., Johnson, S., Wood, M., Harrison, O., Killough, A. (2005). A brief review of the pathophysiology, associated pain, and psychosocial issues in sickle cell disease. International Journal of Behavioral Medicine, 12 (3), 171-179. Inati, A., Chabtini, L., Mounayar, M., Taher, A. (2009). Current understanding in the management of sickle cell disease. Hemoglobin, 33 (S1), S107-S115. Khoury, R. A., Musallam, K. M., Mroueh, S., Abboud, M. R. (2011). Pulmonary complications of sickle cell disease. Hemoglobin, 35 (5-6), 625-635. Mehta, P. A., Faulkner, L. B. (2013). Hematopoietic cell transplantation for thalassemia: a global perspective BMT tandem meeting 2013. Biology of Blood and Marrow Transplantation, 19, S70-S73. National Institutes of Health (2014). Genetics home reference: beta thalassemia. U.S. Department of Health and Human Services, Retrieved from http://www.ghr.nlm.nih.gov/condition/beta-thalassemia. National Institutes of Health (2014). Genetics home reference: sickle cell disease. U.S. Department of Health and Human Services, Retrieved from www.ghr.nlm.nih.gov/condition/sickle-cell-disease. Rees, D. C., Gibson, J. S. (2011). Biomarker in sickle cell disease. British Journal of Haematology, 156, 433-445. Stuart, M. J., Nagel, R. L. (2004). Sickle-cell disease. Lancet, 364, 1343-1360. Thein, S. L. (2008). Genetic modifiers of the ÃŽ ²-haemoglobinopathies. British Journal of Haematology, 141, 357-366.

IMF World Bank And Chinas Role Global Governance Politics Essay

IMF World Bank And Chinas Role Global Governance Politics Essay This study will explain how these international organizations are changing and why there are differences in how the two organizations (IMF World Bank) are developing. Constructivist approach to the study of international organizations as actors, it is argued that an understanding of international organizations as bureaucracies with varying degrees of autonomy will contribute to a deeper understanding of their behavior. There are three central International Organizations (IOs) involved in regulating and coordinating the global economy; the International Monetary Fund (IMF or the Fund), the World Bank, and the World Trade Organization (WTO). But I am only going to discuss the role of IMF, World Bank and Chinas role in Global Governance. Since the end of the Second World War, when most of todays more important IOs were created the environment in which these organizations operate has undergone some significant changes impacting on the roles they are to fulfill and the expectations place d on them. The larger process of globalization has generally meant more work for IOs, more states joining, and expansion into new areas previously considered domestic issues. So, the idea is that in new era organizations like IMF and World Bank have become more important in governing the global economy. So, the IOs can be seen as part of an international system where such organizations act as intervening variables in international affairs but also influence the interests of states, in a mutually constituting environment.  [1]   In creating an IO, states also necessarily grant some level of autonomy in order for the organization to work effectively.  [2]  Naturally some states will have more influence in an organization than others but an IO needs to find a balance between the interests of its members and the organizations interests in promoting its mission and continued existence. The roles of the IMF and the World Bank have changed since their creation and the dismantling of the Bretton Woods system in the 1970s. The increased importance of these organizations has meant different things for the organizations and they have developed their own unique way, yet they are still involved in the larger task of regulating the global economy. In some ways these organizations now also have a greater involvement in the domestic policies of the states. Those for example need to lend money or want to be part of the global trade regime. Importantly their membership numbers have also increased greatly since the end of the Cold War. However, if these organizations are perceive as being in the business of performing tasks that impinge on the sovereignty of states, in some ways fulfilling a governance function at the international level then we arguably need to look closer on how they are accountable to member states (shareholders) and people affected by their policies (Stakeholders). This becomes even more important since it is clear that often the states mostly affected by their policies. Developing countries, are the states with little input in these IOs, to an extent by design, have a degree of autonomy in developing solutions for problems and agenda setting  [3]  . The study of IOs in international relations takes place against a background of theoretical disagreement between rationalists and constructivists. From mainstream international relations perspectives, which are rationalist in character, IOs traditionally have not been seen as relevant actors in the international arena. IOs are primarily seen as tools for states with no independent interests and no relevant autonomy. At best from a neo-liberal perspective you could say that the existence of IOs can have a pacifying impact on state behavior increasing the likelihood of international cooperation. Rationalist theories are focused primarily on states and why states create IOs in the first place. State interest in rationalist theories is largely seen as predetermined while in a constructivist view more emphasis is placed on the importance of changing norms and ideas. Constructivists argue those ideas, principles and an actors perceived identity influence behavior  [4]  . International Organizations as Agents of Change IOs are designed to facilitate state cooperation but often also to uphold a given set of rules, norms and practices. These norms and rules are of course designed by states and are subject to change if states wish it. One state alone however will have a hard time bringing about significant changes. Cooperation and reciprocal treatment is usually necessary to reach some form of consensus on what norms should prevail. IOs can here also be seen as important facilitators of change as they develop new solutions and policies, within general borders of what is acceptable to their principals. In this view state interests can be seen as derived from both the domestic level and the international level where numerous actors more or less important and involved in shaping and reshaping internationally held norms and rules. IOs are sites of interaction where such norms are shaped, but not exclusively by the states as experts and staff are also highly involved. When an organization has become more e stablished it can be seen as an actor in itself, working to promote tasks delegated to it. In the process of doing this the organization needs to solve problems and develop solutions that can be acceptable to member-states and other clients. So, IOs are generally treated as something positive and are seen to promote peace and international cooperation. The fact that IOs often have a liberal orientation, promoting issues like human rights and free trade adds to the positive view of IOs. A view of IOs as bureaucracies however provides insight into how IOs can sometimes fail due to internal dysfunction  [5]  . In addition IOs have traditionally not been famous for their democratic organization and transparency. Treating them as bureaucracies could provide insights into their legitimacy and how they change to improve their legitimacy in the face of increasing criticism. Four characteristics of modern bureaucracies relevant to understanding IOs as actors are organizational hierarchy, continuity, impersonality and expertise  [6]  . The impersonal character of bureaucracies means that there is a focus on rules that contribute to the image of bureaucratic organizations as impartial and depoliticized. Ideally, as pointed out by rationalists, IOs could be seen as impartial organizations administrating and carrying out the will of their members. This is a view that IOs themselves are often happy to promote  [7]  . Bureaucratic culture is a concept that is useful in understanding why organizations choose one solution over another or why they develop in a certain way. Bureaucratic rules are an integral part of this. Rules and guiding principles will be specific to an organization depending on its area of expertise. Rules will reflect underlying norms and principles and define how the organization interprets problems. They can be both explicit, like operating procedures internal to the organization, and implicit rules and norms guiding staff as to how an issue should be approached. Barnett and Finnemore pointed out some effects of bureaucratic rules that can be of interest  [8]  . Internal rules prescribe how an organization interprets problems so that the organization can respond to issues in an effective manner. Rules, often produced by the organization, also define how other actors should behave. Such rules, as part of the bureaucratic culture of an IO, also influence how staff interprets the world around them and how new problems are dealt with. A further argument is that such rules also contributes to a classification of issues in a way that fits the organization that then influences how others understand those issues, thus having a constitutive effect. For example rules on trade are defined at the WTO which then serves as a standard for others. The World Bank develops solutions to problems of poverty and development which prescribe future action by themselves and others. Rules and principles at an organization are also constitutive of the organization s identity in that they define what the values of the organization are. In addition to this, a contribution to bureaucratic culture at IOs, are their different areas of expertise and what kind of people work there. The IEIs are economically oriented organizations working within the areas of international trade, development and poverty alleviation, and financial issues. Traditionally, although this is changing slowly, these organizations have been staffed primarily with individuals educated and experienced within these fields. While this is quite natural it also contributes to what can be called epistemic communities in these organizations. This can have both positive as well as negative effects. It is positive in that it contributes to effectiveness and expertise, but it also limits critical and alternative input. It may lead to dysfunctional behavior because of unwillingness to take in alternative ideas and information  [9]  . The bureaucratic culture thus informs how staff und erstands and interprets problems, as well as what problems they see. This also suggests that IOs may develop their interests over time as long as it is within the general frames of the original mission. Interpretation is necessary from the beginning as IOs are often given broad mission goals like promoting financial stability which the then has to be turned into a manageable set of goals  [10]  . Authority and Autonomy As bureaucracies IOs also have authority  [11]  . The fact that they have been delegated their responsibility by states is central but there are different dimensions to IOs authority as well. Their bureaucratic character as well as other characteristics of IOs contributes to their independent authority and also to autonomy. IOs autonomy is an issue that has been discussed in trying to account for what has been called mission creep in IOs. One way of explaining autonomous IO behavior and such mission creep that fits within the rationalist perspective, is by focusing on the distribution of information between an agent and its principals  [12]  . It can be argued that IOs have access to more information than their principals which they then use to further their own interest. Despite this IOs may have an informational advantage in certain issue areas that they may, but not necessarily will, use. But important point here is that; why would IOs have diverging interests from that of their members? As suggested above, seeing IOs as bureaucracies provide us with insights as to why IOs may develop their interests. IOs often have normative goals that they try to advance. Member-states would however in the rationalist view have a central role in defining the mission and underlying norms. For example the creation of conditionality on loans and the promotion of increased transparency in member-states by the IMF and the World Bank have produced both resistance from some states and support from other states. States of course have mechanisms to keep IOs in check, primarily by having representatives at the organization  [13]  . Evaluation mechanisms at IOs also serve the function of keeping states informed. While states may have an interest in limiting transparency at IOs in some cases, increased transparency could also be seen as a positive development to improve state control of the organization and accountability of the organization towards member-states. In being bureaucracies, IOs have a rational-legal character, they are authorities because they have been delegated this authority but also because of their bureaucratic organization and expertise. The IMF is seen as the guarantor for international financial stability, the World Bank as a central IO working for development. IOs are often perceived as promoting the general welfare of their members, which they have to balance against particular interests of member-states. These sources of authority contribute to IOs being authorities in themselves and also consequently contribute to their autonomy. IOs are not of course autonomous or nor can they likely be entirely autonomous. Analysis of the Discussion There are various perspectives on IOs, and how we should understand them as actors? The arguments reflect that IOs are relevant actors, and although they are set up by states and states as their principals can have a degree of autonomy in them. This does not mean that IOs should be considered independent actors or they are making up their own interests as they go. IOs will likely have different degrees of autonomy depending on the original design by states for their functioning, but autonomy can also come from other sources. Like organizations expertise and informational advantage can contribute to autonomy in some cases. The expansion of the IEIs in the light of globalization has lead some to argue that these organizations constitute an elitist system of governance unaccountable to both member-states and people affected by their policies. This simplified picture is not really helpful in understanding the roles that the IEIs play in the international political economy or the environm ent in which they operate. In many ways the IEIs have been successful in pursuing their missions of trade and financial liberalization  [14]  . They have been able to adapt to a changing environment and find new issues to deal with as others have become less important. They have also persisted through various crises and have been central in solving problems. This reflects a concern over how these organizations are accountable to both shareholders and stakeholders and the character of the developing system of global economic governance. Legitimacy of this system should base on output oriented logic. In this way its effectiveness will matter the most. Furthermore, the inclusion of stakeholders in decision-making could play a prominent role. The International Monetary Fund The IMF as an organization has developed significantly from its creation reflecting the changing needs of member-states and developments in the world economy. The IMF has expanded over the years and has become increasingly engaged in prescribing economic policy for states in a way that was not originally intended  [15]  . The IMF since the 1980s increasingly deals with the domestic economies of states that want to draw from the Funds resources and prescribe economic policy through conditionality requirements on loans to developing countries. The IMF is an expert bureaucratic organization and an authority on international financial issues. To be perceived as an impartial and expert organization is important for the IMF to retain its legitimacy and importance. From the beginning the IMF has had a liberal ideological orientation to promote free movement of capital and contribute to economic growth. That the organization has been primarily staffed with economists in turn also affect how problems are interpreted and what kind of solutions are developed  [16]  . The staff of IMF need to interpret the mission given, identifies problems, and develops solutions that are likely to be successful while being sensitive to the interests of member states. The World Bank The World Bank of today has changed significantly from its origin both in its organization and in the policies it promotes. The Bank, like the IMF, has conditions attached to most of its loans and has moved further into previously domestic issues in order to pursue its mission of poverty alleviation and development. Originally the World Bank consisted of only one institution, the International Bank for Reconstruction and Development (IBRD). With time a number of auxiliary organizations were created; the International Financial Corporation (IFC) in 1956; the International Development Association (IDA) in 1960; the International Centre for the Settlement of Investment Disputes (ICSID) in 1966; and the Multilateral Investment Guarantee Agency (MIGA) in 1988. These together form the World Bank Group, while the IBRD and IDA are usually referred to as just the World Bank or simply the Bank. Unlike the IMF the Bank (IBRD) provides project specific long-term loans, but also development polic y loans to support institutional and policy change in borrowing countries. Although now strongly influenced by similar economic ideals as the IMF, the Bank has previously promoted and supported various development models  [17]  . In the 1980-90s the Bank became more engaged in issues of institutional and policy change in borrowing countries  [18]  . The organization has continuously been a target for criticism by NGOs and various other critics. But the World Bank has however changed more quickly and in slightly different ways than the IMF in response to legitimacy critique. How to Share Responsibility Before going further in the discussion of global governance, we need to understand the concept of power first. Following could be the important factors to determine a states power: geographical extension, population and military capacity etc. Considering this, and in order to achieve a democratic sharing of responsibilities on the principle of one person one vote. Now is the time when US and EU should really recognize the shift of economic power, energy power and of GDP power to Asia and other emerging economies. After the rise of China, US and EU should think about the other powers in developing countries. The world is progressing day by day and world powers should realize this change. As world is shifting very quickly and many countries are approaching them for forcing them to play their neutral role for the betterment of the world. The US and EU need to think of making IMF and World Bank more open and give representation to the developing countries of the world. If they are not going to act wisely, then there is possibility that other growing countries get frustrated soon and try to create their own multilateral institutions like IMF and World Bank. They could change the situation by giving up from their longstanding monopolies for appointing heads for the IMF and World Bank. (Traditionally Europe names IMF Director General and the US the h ead of the WB). EU and US should adopt the global changing economic reality and give up the leadership of World Bank and IMF for their own good  [19]  . Chinas Role in Global Governance China is rapidly integrating into the international system, but still a new player in global governance while the EU and its member states have rich experience in global governance. General literature on Chinas growing international importance is abundant; but there is still only a limited understanding of the motivations, targets and limitations driving Chinas participation in global governance. According to the literature there are four global governance arenas as key research areas, namely climate change, energy, trade, and development because they are global issues of particular concern for both Europe and China. It is most important to consider that mutual understanding and dialogue are indispensable tools for constructing global governance structures for the world. Since the onset of the financial crisis there have been suggestions to form a Group of Two (G-2) consisting of the United States and China. This proposal is based on the facts that China is the largest creditor of the US, the US is Chinas biggest export destination, and the strong interdependence of their two economies provides a foundation for joint action that can shape the global economy. This thinking is tempting when the Group of Eight is seen as reflecting an outdated balance of power and the Group of 20 is considered too diluted to respond to global challenges. Yet a G-2 would give a false assumption about stronger global governance and China would probably not deliver in such a format. We can say it like this [The] steady and fast growth of Chinas economy is in itself an important contribution to global financial stability. Or look at the closing statement of the National Peoples Congress: We have prepared enough backup firepower to deal with potential greater difficulties, a nd new stimulus packages, if necessary, will be launched.  [20]   Some Chinese are flattered by the suggestion of a G-2. It suggests China is a global power. But on the other hand Chinese realize that they are not yet ready for this. It could have another dimension and that it could be a potential trap for China that could expose it on the world stage. China is active in international reform with focus on internal growth and active foreign policy in financial and monetary matters. China is on the center court of international decision-making to protect a system of economic globalization that has provided China with many benefits. That is reflected in diplomatic efforts undertaken with regard to financial reform and the International Monetary Fund, as well as floating suggestions regarding a new reserve currency. Chinas foreign policy is still deeply rooted in non-interference and at its best conflict-avoidance. The US-China relationship is one of the most important bilateral relationships. There is need for tight coordination between the US and Chi na. Yet, to turn that into a G-2 will create an illusion of global governance that will not deliver on its promise. Is China Prepared for Global Leadership? Few years ago, some in the West warned of Chinas coming collapse but now, almost all hopes for global economic recovery are pinned on China, the only major economy still enjoying growth during the current global financial crisis. China has long sought to make others believe that it is one of the greatest countries on the planet. But China is not yet ready to take the leaders role, as it is a revisionist rather than revolutionary state. Chinas effective response enhances its image as the savior of a struggling global economy. Therefore, its proposals for the international economic order have attracted attention. President Hu Jintao became the star of the London Summit. Zhou Xiaochuan, governor of Chinas central bank, also won world wide fame for his suggested new international reserve currency, managed by the International Monetary Fund (IMF), to replace the US dollar. Chinas new offer of a loan to the IMF was also considered a step toward raising its voice in the international financ ial institutions (IFIs)  [21]  . Although China undoubtedly wields significant economic and political influence, its society contains the fundamental weaknesses of an underdeveloped country. It still has far to go to be a global leader in quantity and quality. With its domestic focus, Chinas government does not think it is time to take primary responsibility for global prosperity and stability. But China can still be more active in global governance and the G20 is an appropriate forum for China to exert its influence on global issues. Chinas rising power enhances the effectiveness of the G20 because a stronger China will improve the power balance in the group, as well as its legitimacy. Here there is no need to deny the differences between the advanced and emerging economies. The developed world is always willing to forget how countries became developed. For instance, developed countries claim that developing countries are stealing their intellectual property and that all countr ies need the strictest regulations to protect their intellectual property, overlooking the fact that they have control of most of it and that they were also imitating and copying during their development process. These differences, as well as Chinas power, help to ensure that the G20 will be a democratic and balanced forum for countries in various stages of development to revise the existing global economic system. Critical Analysis of Chinas Position for Global Governance China has brought forward ideas on the reform of the international institutions. But it is not trying to overturn the existing system and does not yet have its own blueprint for future global governance. It is trying only to reform some deficiencies that conflict with its own interests and values, as China is not yet in a position to take on the responsibility to lead. Moreover, China has enjoyed unprecedented growth under the current system. With regard to global economic governance, it will take into account the interests and requests of developing countries and reduce the control of industrialized countries. China also shares many common interests with the developed world. Cooperation rather than confrontation will help China achieve its goal of revising the international economic order. Because China has benefited much from its WTO membership, and the economic downturn has demonstrated that the Chinese economy still depends heavily on foreign demand, China needs to take a more ag gressive and accommodating stance in the coming negotiations, for instance, by offering more radical market-opening commitments in services and agriculture. On sustainable development, however, China is more defensive. The United States and the European Union have proposed a carbon tariff, which China strongly opposes. For China, this proposal ignores the differences between developed and developing countries for the historical responsibility of climate change, as well as regarding their present levels of development. Here, China again has a strong sense of identity as a developing country. Although it is excited by its acceptance as a major world power, China is not yet prepared to take a leading role in assuming responsibility for global prosperity. In terms of its economic and political development, it is still a developing country. China has therefore neither the capability nor the willingness to establish a new international system to replace the existing one. China, rather, us es the current system, while trying to change parts of it to sustain its own interests. This rising China is revisionist rather than revolutionary, and will help the recovery of the global economy and the reform of international economic order. Globally, I think China should actively participate in global governance constructive. From a longer-term perspective, China should participate in many global issues such as climate change and food security, and offer suggestions with vision. The world power shift has been happening in a peaceful way, without wars. But in reshaping international economic and financial territories, trade wars and protectionism are threats China and other countries must face. China is rapidly integrating into the international system, but still a new player in global governance while the EU and its member states have rich experience in global governance. While general literature on Chinas growing international importance is abundant, there is still only a limit ed understanding of the motivations, targets and limitations driving Chinas participation in global governance. The rise of China will undoubtedly be one of the great dramas of the twenty-first century. Chinas extraordinary economic growth and active diplomacy are already transforming East Asia, and future decades will see even greater increases in Chinese power and influence. But exactly how this drama will play out is an open question. Will China overthrow the existing order or become a part of it? And what, if anything, can the United States do to maintain its position as China rises? Conclusion The size and rapid growth of China, together with its increasing assertiveness, represent a challenge to the established global order. The dynamics and the future impacts of these power shifts for global governance and Chinas rise will create tensions varies according to the ways in which the basic interests of China and Western countries clash. Correspondingly, China has been playing a responsible, cooperative and constructive role in many areas. We can find contributions from China at nearly every big global or regional occasion. But meanwhile, Chinas domestic economic measures have helped create opportunities for other countries. In this way, the stimulus package has been designed and implemented in a balanced way. China is against trade protectionism and actively participating in redesigning international financial institutions. And the efforts are gradually delivering results. We can say China, as a growing power, is playing its role well. It is a suggestion that China should wo rk more aggressively to establish partnerships with international organizations such as the International Monetary Fund and World Bank. On the other hand some states will have more influence in an organization than others but an IO needs to find a balance between the interests of its members and the organizations interests in promoting its mission and continued existence. The US and EU need to think of making IMF and World Bank more open and give representation to the developing countries of the world. Chinas new activism should be encouraged as part of its transformation into a responsible stakeholder. A strengthened partnership and contribution from China can, in turn, boost its role and performance globally. At the same time, Chinas partnership with the United States is very important. The bilateral partnership is the key to the success of Chinas role on the global stage. The Western countries are losing power, and we have to admit the US has been severely affected by the financi al crisis. However, the US is still a robust society. Its high-tech industry is still leading its economy. Furthermore, economic cooperation between the US and China is much needed but world governance is still about more than economics.

New Internet Marketing Landscape Essay -- essays research papers

The internet is changing marketing not to mention the world. "The number of internet users worldwide is expected to reach almost 1.4 billion by 2007" according to Armstrong & Kotler (2007) p. 26. The internet is also changing the ways that companies are conducting their marketing. A great example of a company that has been transformed by the new digital age is Melendi Photography (wwww.melendiphotography.com), owned and operated by my dear uncle Luis Melendi and his wife Maria, located in Key Largo, Florida. Originally a mom & pop photography company, it has now been revolutionized by the internet and telecommunications in the past 10 years. They?re main source of marketing came from local newspapers. When they first opened there storefront in 1975, they concentrated on locals and local businesses as their own means of business. Business was steady, but in a small community like Key Largo, Florida, at times business could be very slow. After analyzing and planning a new marketing tactic, they decided it would just be better to close. The year that they decided to close their photography company was the year when the internet took a nose-dive. Many dot-com companies were going out of business, but shortly after the dot-com revolution began to get stronger, and it came back with a vengeance. In 2000 with the revolution of the internet, they created a website, a virtual gallery, a virtual spot on the World Wide Web (WWW) where customers- not only from their small Florida community could view their portraits, but statewide, nationwide and worldwide, in a last ditch attempt to keep their small photography studio alive. They designed an effective website. Melendi Photography took a chance, on something they new very little of.... ...as available on the Melendi?s new site, which they could only offer in there storefront location originally. They really began to see a difference in profits. In addition, using the internet in their photography business, the Melendi?s have been able to offer greater product access and selection. Conducting business in the traditional form is still habitual, but as technology is ever-changing, business will eventually need to keep up with technology and the changes in the environmental factors and understand that with the coming of the digital-age, every aspect of a business is affected, including marketing. References Kilby, Nathalie (2007). Get connected to affiliates. Journal Marketing Week Volume 30 Issue 12. p35-36 Armstrong G. & Kotler P. (2007) Marketing: An Introduction 8E Upper Saddle River, NJ Pearson Prentice Hall Publishers

Physics of Superconductors Essay -- physics superconductor

As most people know (or don't know, whichever is the case) the component of an electrical circuit that causes energy loss is called "resistance," which can be defined as a materials opposition to current being passed through it. Usually, this resistance results in the production of heat, sound, or another form of energy. In many cases, this transformation of energy is useful in such applications as toasters, heaters, and light bulbs. Even though it is a useful property, resistance often gets in the way of performance in such cases as high voltage transmission wires, electric motor output, and other cases where internal system energy losses are unwanted. This is where the phenomenon of superconducting materials comes into play and may present the solution to this energy loss problem. Superconductors are materials that display zero resistance under certain conditions. These conditions are called the "critical temperature" and "critical field," denoted Tc and Hc respectively. The Tc is the highest temperature state the material can attain and remain superconductive. The Hc is the highest magnetic field the material can be exposed to before reverting to its normal magnetic state. Within the substances currently known to superconduct, there is a divide between what has come to be called type I and type II superconductors. Type I are composed of pure substances, usually metals, and type II are composite compounds, usually some sort of ceramic. Additional differences between type I and type II exist, mainly that type II display superconducting qualities at much higher temperatures and can remain superconductive in the presence of much higher magnetic fields. While type I have Tc's that hover just a few degrees from absolute zero, t... ...e the track and is propelled by the magnetic forces caused by the induced currents. Another use of superconductors is in Magnetic Resonance Imaging, or MRI, in which the superconductor helps in creating a non-invasive method of looking at a persons brain activity. Yet another area where superconductors would be especially helpful is in the power and electronics industry where power losses arise from a systems internal resistance. If a power generator was constructed with superconducting components the efficiency of the motor would be greatly increased. The electronics industry would benefit from faster switching times, smaller components, and greater circuit efficiency. The world of superconductors is expanding at a tremendous rate. As the uses and possibilities for their use become more apparent, our society might see them more and more in everyday life.

Risk and Return Analyis and Portfolio Management of Indian Automobile Companies

PSG INSTITUTE OF MANAGEMENT FINANCIAL SYSTEMS A PROJECT REPORT On RISK AND RETURN ANALYSIS & PORTFOLIO MANAGEMENT Of INDIAN AUTOMOBILE COMPANIES Submitted by, G. Abirami(9UTB02) M. Kamalam(9UTB13) N. Nirupa(9UTB18) P. Srilakshmi(9UTB32) INDEX CONTENTS PAGE NO. Acknowledgement Statement of Problem Introduction: Industry overview Company profiles Objectives Scope & Limitations Literature Review Research Methodology Analysis & Interpretation Findings Suggestions Conclusion Bibliography (i) (ii) 1 1 3 13 13 14 18 20 33 36 37 38 ACKNOWLEDGEMENT First of all we thank the Almighty for having bestowed upon us the sufficient potential with which we are able to complete whatever work we undertake successfully. We feel a heart full of gratitude to our Director Mr. R. Nandagopal for encouraging us regarding all our curricular activities which take place at PSGIM. We also extend our thanks to our co-ordinator Mrs. V. Srividhya for being a constant support throughout and keeping us guided along the right path always. We also wish to thank our teacher for Financial and Management Accounting Mr. P. Varadharajan for having given us this opportunity in taking up this project and for his constant support and guidance throughout the course of the project. We also like to thank our parents who have carved a bright future for us by placing us in such a spectacular and prestigious institution where we could see ourselves as what and as whom we dream to become. May be the last but not the least people to thank are our friends. Thanks is a word not to be shared among friendship but it should be felt for the presence of their soulful support throughout our life. (i) STATEMENT OF PROBLEM Automotive Industry has significantly increased its contribution to overall industrial growth in the country. By 2030 India will be the third largest car market in the world after China and Japan. This coupled by the purchasing power of the ultra rich makes India a top destination for manufacturers of luxury cars Investment by foreign companies in automobiles implies a bright future for the auto industry India. This will lead to the creation of jobs, and a wider range for consumers to choose from. It will also give Indian companies a chance to compete globally for clients. This will greatly benefit the auto component and ancillary industry that will get access to the latest technology and manufacturing practices. According to Commerce Minister Kamal Nath, India is an attractive destination for global auto giants like BMW, General Motors, Ford and Hyundai who were setting base in India, despite the absence of specific trade agreements. Current Scenario On the cost front of Indian automobile industry, OEMs are eyeing India in a big way, investing to source products and components at significant discounts to home market. Overview By 2010, India is expected to witness over Rs 30,000 crore of investment. Maruti Udyog has set up the second car with an investment of Rs 6,500 crore. Hyundai will bring in more than Rs 3,800 crore to India. Tata Motors will be investing Rs 2,000 crore in its small car project. General Motors will be investing Rs 100 crore and Ford about Rs 350 crore. Ashok Leyland and Tata Motors have each announced over Rs 1,000 crore of investment. (ii) ________________________________________ ________________________________________ INTRODUCTION In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that Indian automobile industry will achieve mass motorization status by 2014. Industry Overview: Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile Industry of India has come a long way. During its early stages the auto industry was overlooked by the then Government and the policies were also not favourable. The liberalization policy and various tax reliefs by the Govt. of India in recent years have made remarkable impacts on Indian Automobile Industry. Indian auto industry, which is currently growing at the pace of around 18 % per annum, has become a hot destination for global auto players like Volvo, General Motors and Ford. A well developed transportation system plays a key role in the development of an economy, and India is no exception to it. With the growth of transportation system the Automotive Industry of India is also growing at rapid speed, occupying an important place on the ‘canvas' of Indian economy. Today Indian automotive industry is fully capable of producing various kinds of vehicles and can be divided into 03 broad categories : Cars, two-wheelers and heavy vehicles. Snippets: The first automobile in India rolled in 1897 in Bombay. India is being recognized as potential emerging auto market. Foreign players are adding to their investments in Indian auto industry. Within two-wheelers, motorcycles contribute 80% of the segment size. Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%). Tata Motors dominates over 60% of the Indian commercial vehicle market. 2/3rd of auto component production is consumed directly by OEMs. India is the largest three-wheeler market in the world. India is the largest two-wheeler manufacturer in the world. India is the second largest tractor manufacturer in the world. India is the fifth largest commercial vehicle manufacturer in the world. The number one global motorcycle manufacturer is in India. India is the fourth largest car market in Asia – recently crossed the 1 million mark. 1 Segment Knowhow: Among the two-wheeler segment, motorcycles have major share in the market. Hero Honda contributes 50% motorcycles to the market. In it Honda holds 46% share in scooter and TVS makes 82% of the mopeds in the country. 40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40% of the market share. Among the passenger transport, Bajaj is the leader by making 68% of the three-wheelers. Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in passenger cars and is a complete monopoly in multipurpose vehicles. In utility vehicles Mahindra holds 42% share. In commercial vehicle, Tata Motors dominates the market with more than 60% share. Tata Motors is also the world's fifth largest medium & heavy commercial vehicle manufacturer. 2 COMPANY PROFILES ASHOK LEYLAND In 1948, The Company was incorporated on 7th September, at Chennai. The Company Manufacture Comet chassis and Leyland `Tiger' and `Titan' Chassis and Leyland diesel engines. In 1955, the name of the Company was changed from Ashok Motors Ltd. , to AshokLeyland Ltd. in July. Ashok Leyland Motors Ltd. , are the associates Of the company In 2006, Ashok Leyland gets ISO/TS 16949 corporate certification In 2010, Ashok Leyland, the flagship company of Hinduja group, unveiled the Country’s first electric plug-in CNG hybrid bus, HYBUS, at the Delhi Auto show. Company Background Name Auto LCVs/HCVs House Name Hindujas Group Year of Incorporation 1948 Board of Directors: R J Shahaney Chairman / Chair Person D J Balaji Rao Director Ramachandran R Nai Director Shardul S Shroff Director V Sumantran Director Vinod K Dasari Whole Time Director J N Amrolia Executive Director S Balasubramanian Executive Director R R G Menon Executive Director M Nataraj Executive Director Rajive Saharia Executive Director 3 EICHER MOTORS In 1982, The company was incorporated on 14th October, and the Certificate of commencement of business was obtained on 28th March, 1983. It was promoted in the joint sector by Eicher Goodearth Ltd. Mitsubishi Corporation, Japan, Mitsubishi Motors Corporation Japan and Madhya Pradesh Audyogik Vikas Nigam Ltd. In 2005, Eicher Motors entered into definitive agreements with TMTL on May 27, In 2006, Eicher Motors Ltd (EML) on Feb 20, announced Mr. Siddhartha Lal as its new Managing Director designate. Eicher joins hands with Wipro to source hydraulic kits In 2007, Eicher Motors Ltd has informed that the Board of Directors of the Company in its meeting held on October 22, 2007 approved appointment of Mr. Rajesh Arora as Company Secretary as well as Compliance Officer of the Company. Company Background: Industry Name Auto LCVs/HCVs House Name Eicher Group Year of Incorporation 1982 Board of Directors: S Sandilya Chairman / Chair Person Priya Brat Director Prateek Jalan Director Siddhartha Lal Managing Director & CEO 4 ESCORTS In 1947, After partition the registered office of the Company was shifted from Lahore to New Delhi. The name of the Company was changed from Escorts (Agents) Pvt. Ltd. , to Escorts Ltd. upon its conversion into a Public company. In 2005, Escorts win . 5-m tractor order from Ghana Escorts Ltd has acquired its Polish joint venture partner, Farmtrac Tractors Europe Escorts' US subsidiary teams up with SAME Deutz-Fahr Italia In 2006, Escort India is set to manufacture tractors in Bangladesh through a Joint venture with the Nitol-Niloy group. Company Background Name Auto Tractors House Name Nand Year of Incorporation 1944 Board of Directors: Rajan NandaChairman and Managing director M G K MenonDirector P S PritamDirector Nikhil NandaJoint Managing Director 5 HERO HONDA In 1984, The Company was incorporated on 19th January, at New Delhi. The Company Manufacture motor cycles up to 100 cc capacity. The Company Was promoted by Hero Cycles (P) Ltd. (HCPL). In 2005, New product launches widen HHML's product portfolio Two-wheeler major Hero Honda on October 5 announced launch of its First scooter ‘Pleasure' Hero Honda rolls out 150-cc motorcycle Achiever. In 2006, Hero Honda announced the launch of two new variants the new ‘Glamour' and ‘Passion Plus' limited edition. In 2007, Hero Honda Motors Ltd. has appointed Mr. Yutaka Kudo as Director and Whole-time Director of the Company in the category of Executive Director w. e. f. April 1, 2007. Company Background: Industry Name Auto 2 & 3 Wheelers House Name Hero Year of Incorporation 1984 Board of Directors: Toshiaki Nakagawa Joint Managing Director Masahiro Takedagawa Non Executive Director Pawan Munjal Managing Director and CEO Takashi Nagai Non Executive Director Pradeep Dinodia Non. Exe. Independent Director 6 HMT In 1953, The Company was incorporated in Bangalore. The Company was converted into a Public Limited Company on May 13, 1977. The main objects of the Company is Manufacturing of the Machine tools, metal forming presses and press brakes, pressure die, casting machines and automatic plastic injection molding machines, automatic plastic injection molding machines. In 1998, HMT International Ltd, a wholly-owned subsidiary of HMT, has bagged a Rs. 3-crore order for setting up an Entrepreneur Technical Development Centre (ETDC) at Dakar in Senegal. In 2010, HMT Ltd has informed that Shri Harbhajan Singh has been appointed as Part-time Official Director on the Board of the Company with Effect from January 11, 2010 Company Background: Industry Name Auto Tractors House Name Public Sector Year of Incorporation 1953. Board of Directors: Rajiv BansalDirector S G SridharDirector (Operations) S BehuriaDirector Sourabh ChandraDirector K KipgenDirector Prakash SharanExecutive Director Harbhajan SinghPart Time Official Director 7 MARUTI SUZUKI In 2000, The Company was awarded the Highest Exporter Award in New Delhi. ICRA has assigned `LAAA' rating to the Rs. 200-crore Long-term non-convertible debenture program and `A1+' rating to the Rs. 100-crore commercial paper program of the company. In 2002, The government on May 14, 2002 set into motion big-ticket disinvestment in 2002-03 by announcing a two-stage process to exit from Maruti Udyog Ltd, a joint venture with Suzuki Motor Company. In 2007, Maruti Udyog Limited has informed that Mr. Tsuneo Kobayashi, a Non-executive director, has been appointed as Whole-time Director designated as Senior Joint Managing Director. The Board of Directors in their meeting held on 22nd January, 2007 has approved the above. UTI Bank and Maruti have joined hands for giving car finance. Company Background: Industry Name Auto Cars & Jeeps House Name MNC Associate Year of Incorporation 1981 Board of Directors: R C BhargavaChairman / Chair Person Amal GanguliDirector Keiichi AsaiDirector Osamu SuzukiDirector Davinder Singh BrarDirector 8 TATA MOTORS Tata Motors Limited is India's largest automobile company, with consolidated revenues of Rs. 70,938. 85 crores (USD 14 billion) in 2008-09. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer. The company's 24,000 employees are guided by the vision to be â€Å"best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics. Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. Company Background Industry Name Auto LCVs/HCVs House Name Tata Group Collaborative Year Of Incorporation 1945 Board of Directors: Ratan N TataChairman / Chair Person N A SoonawalaDirector R Gopalakri shnanDirector S M PaliaDirector S BhargavaDirector V K JairathDirector 9 TVS MOTORS TVS has been at the forefront in bringing a revolution in the way personal commutation was happening, way back in the 1980s. Beginning with launching a simple, easy-to-use moped for the middle class in India in the 1980s to launching 7 new bikes in a single day (first time in the history of the automotive industry in the world), TVS has often taken the unbeaten path to innovation. The Group's principal activity is to manufacture and sell motor cycles and components. The Group operates in two segments: Automotive Vehicles and Automotive Components. Automotive Vehicles include motorcycles, mopeds, ungeared scooters and three wheelers. The products of the Group include TVS Apache, TVS Scooty, TVS Fiero, TVS Super XL, TVS Victor, TVS Centra, TVS Star etc. It's plants are located at Hosur, Tamil Nadu , Mysore, Karnataka and Solan, Himachal Pradesh. Company Background Industry Name Auto 2 & 3 Wheelers House Name TVS Group Year of Incorporation 1982 Board of Directors: Venu Srinivasan Chairman and Managing director T Kannan Director K S Bajpai Director Prince Asirvatham Director 10 MAHINDRA AND MAHINDRA: Mahindra embarked on its journey in 1945 by assembling the Willys Jeep in India and is now a US $6. 3 billion Indian multinational. It employs over 1,00,000 people across the globe and enjoys a leadership position in utility vehicles, tractors and information technology, with a significant and growing presence in financial services, tourism, infrastructure development, trade and logistics. The Mahindra Group today is an embodiment of global excellence and enjoys a strong corporate brand image. Mahindra is the only Indian company among the top tractor brands in the world and has made an entry in the two-wheeler segment, which will see the company emerge as a full-range player with a presence in almost every segment of the automobile industry. The Mahindra Group expanded its IT portfolio when Tech Mahindra acquired the leading global business and information technology services company, Satyam Computer Services. The company is now known as Mahindra Satyam. Mahindra's Farm Equipment Sector is the proud recipient of the Japan Quality Medal, the only tractor company worldwide to be bestowed this honour. It also holds the distinction of being the only tractor company worldwide to win the Deming Prize. The US based Reputation Institute recently ranked Mahindra among the top 10 Indian companies in its Global 200: The World's Best Corporate Reputations list. Mahindra is also one of the few Indian companies to receive an A+ GRI checked rating for its first Sustainability Report for the year 2007-08. Company Background: Industry Name Auto -Cars & Jeeps House Name M & M Year of Incorporation 1945 Board of Directors: Keshub Mahindra Chairman / Chair Person Deepak S Parekh Director M M Murugappan Director A S Ganguly Director Anupam Puri Director 11 BAJAJ AUTO Bajaj Auto Ltd. is the largest exporter of two and three wheelers. With Kawasaki Heavy Industries of Japan, Bajaj manufactures state-of-the-art range of two-wheelers. The brand, Pulsar is continually dominating the Indian motorcycle market in the premium segment. Its Discover DTSi is also a successful bike on Indian roads. 2010 – Bajaj Auto launched a 135 cc Pulsar, priced at Rs 51,000, pushing the Pulsar brand into the mass segment. Company Background: Founder Jamnalal Bajaj Year of Establishment 1926 Industry Automotive 2 & 3 Wheelers Business Group The Bajaj Dominant presence in Sri Lanka, Bangladesh, Columbia, Guatemala, Peru, Egypt, Iran and Indonesia. Joint Venture Kawasaki Heavy Industries of Japan Board of Directors: Rahul Bajaj Chairman / Chair Person Rajiv Bajaj Managing Director D S Mehta Director Shekhar Bajaj Director J N Godrej Director Suman Kirloskar Director 12 ________________________________________ ________________________________________ OBJECTIVES Primary Objective: Construction of optimal portfolio using Sharpe Index Model To analyze the risk and return of Indian automobile companies. Secondary Objectives: To understand the Sharpe's Portfolio Selection Model over the Standardized Index Portfolio called Market portfolio in respect of stock market perations in India. It also involves the estimation of Beta for each potential asset; these estimations are obtained based on past data and using statistical methods in order to obtain future Beta. To understand the current scenario of Indian automobile industry. SCOPE & LIMITATIONS Scope: To get overview outline about the selected Indian automobile company, their performance comparison, market share, potential and their volatility. Serves as a source of information for investors in identifying the risk averse and risk seeking shares (more return and less risk)of selected automobile industry. To get insight about the application of Sharpe index model in risk and return analysis of portfolio management. Limitations 1. Only selected industries in Indian automobile sector. 2. The data obtained and collected are only approximate and not more accurate. 3. Market fluctuations in share price of the selected industries. 4. Application of Sharpie index model alone. 13 ________________________________________ ________________________________________ LITERATURE REVIEW â€Å"The Accounting Review†: Elgers, Pieter T. Murray, Dennis ( Apr 1982) published that a measure of investment risk-the systematic risk of the Sharpe-Linter capital asset pricing model (CAPM)-is now widely employed. The relationship between beta estimates and various accounting risk measures (ARMs) have been extensively studied by accounting researchers, but results have led to different inferences about the usefulness of ARMs. The impact of the choice of market index on inferences concerning the usefulness o f ARMs in explaining and predicting beta is investigated. The association of ARMs and beta tests are always joint tests. Beta reflects the expected co variation between the returns of a given security and those of the market portfolio of all risky capital assets. The market portfolio, however, is not observable. Empirical evidence showed: 1. that the stability of beta estimates over time are quite sensitive to the market index employed, 2. that the ability of ARMs to explain differences among betas for a cross-section of firms is highest when the betas are estimated using the CRSP equal-weighted index, and 3. that the ability of ARMs to improve upon market-based forecasts of beta depends upon the choice of market index and the error metric employed. The Journal of Finance†: Kwan, Clarence C. Y (Dec 1984) published that a simple common algorithm that is applicable to 7 models is suggested for optimal portfolio selection disallowing short sales of risky securities. The 7 models considered are: 1. Sharpe's (1963) single index model, 2. Cohen and Pogue's (1967) multi-index models in diagonal and cova riance forms, 3. Two multi-index models with orthogonal indexes, and 4. Two constant correlation models. The proposed algorithm successfully bypasses the requirement of explicitly ranking securities that is essential in previous research on the topic. Because of this feature, the algorithm is especially useful for the 2 multi-index models with orthogonal indexes where there are problems in establishing a ranking criterion. An illustrative example is provided showing the results of all the iterative steps. It is demonstrated in a simulation study performed on the 5 models with multiple groups that the procedure involved in the search for optimality requires only small numbers of simple iterative steps. Thus, the method can enhance the usefulness of these index models and constant correlation models in portfolio analysis. The Journal of Portfolio Management†: Gressis, N. , Vlahos, G. , Phillipatos, G. C. (Spring 1984) published that the recent establishment of stock index futures markets has opened up a variety of new investment opportunities that should improve the performance of both secondary markets and individual investor portfolios. Trading in stock index futures has been proposed as an effective hedge against investment risk. A technique based on the capital asset pricing model (CAPM) framework is here developed to identify the profit opportunities of stock index futures trading. With this technique, the systematic risk of a stock index futures contract can be identified for the investor buying on margin, along with the abnormal returns that can be expected from the contract and its equilibrium price. The technique is demonstrated in application to the Standard & Poor's 500 Index futures. It is shown that the risk of a stock index futures contract declines with the length of the investment horizon. However, the degree of abnormal performance and the deviation of the equilibrium price of the contract from the market price increases with time to maturity. The Journal of Portfolio Management†: French, Dan W. , Henderson, Glenn V (Winter 1985) published that the investment portfolio performance measures based on the capital asset pricing model are examined under ideal conditions that work around the problems that their critics have discovered. These problems include Miss specified independent variables, omitted variables, errors in variables, and unstable p arameters, all of which are basically beta problems. A database is constructed by simulating 60 portfolios or security return series, each containing 3 random variants having their own distribution. Regression analysis results show that winners cannot be distinguished from random performers, and that winners cannot even be labelled as such unless they are remarkably successful. If random noise is the only contaminating factor in performance evaluation, then the 4 currently popular performance measures rank in an internally consistent fashion and rank portfolio performance correctly â€Å"The Journal of Portfolio Management†: Peters (Summer 1985) published that Evidence is presented suggesting that early mispricing of stock index futures was due to market inefficiencies, but that the markets have become more efficient over time. This growing efficiency is the result of more experienced traders and the increasing availability of accurate valuation models. This evidence is derived from a test of market efficiency done using a cost-of-carry valuation model. The test is limited to the Standard & Poor's 500 and the New York Stock Exchange Composite indexes. The theoretical value for each future contract over the period June 1982-December 1983 is computed using data from CE/ICD's ANALYSTICS database. Results indicate that both index futures markets have become more efficient with time. If it is assumed that investors are rational and that expectations of the index value are not considered in valuation, it can further be assumed that dividend stream estimation is the major source of market inefficiency. Portfolio managers can now use index futures for hedging with greater confidence. 15 â€Å"The Journal of multinational financial management†: Javier Estrada and Ana Paula Serra (July 2005) published that the proper identification of the risk variables that explain the cross-section of returns in emerging markets has many and far-reaching implications for both companies and investors. We examine this risk–return relationship by focusing on three families of models, over 25 years of data, and over 1600 companies in 30 countries. We perform a statistical analysis that seeks to identify the variables that should be incorporated into the calculation of required returns on equity, and an economic analysis that seeks to determine the variables that produce the most profitable portfolio strategies. We find rather weak statistical results that prevent us from strongly recommending a given family to estimate required returns on equity. And we find somewhat stronger economic results that show that a variable belonging to our downside risk family, the global downside beta, is the one that has the largest impact on returns when portfolios are rebalanced every 5 years. â€Å"University of Mannheim – Department of Business Administration and Finance† : Alen Nosic (March 6, 2007), published that the determinants of investors' risk taking behavior. We find that investors' risk taking behaviour is affected by their subjective risk attitude and by the risk and return of an investment alternative. Our results also suggest hat consistent with previous findings in the literature objective or historical return and volatility of a stock are not as good predictors of risk taking behavior as subjective risk and return measures. Moreover, we illustrate that overconfidence or more precisely miscalibration has an impact on risk behavior as predicted by theoretical models. However, our results regarding the effect of var ious determinants on risk taking behavior heavily depends on the domain the respective determinant is elicited. We interpret this as an indication for extended domain specificity. In particular with the Markets of Financial Instruments Directive (MiFID) coming into effect we believe practitioners could improve on their investment advising process by incorporating some of the determinants we argue to influence investment behavior. † European Journal of Operational Research†: Xiang Li, Zhongfeng Qin, Samarjit Kar (April 1, 2010) published Numerous empirical studies show that portfolio returns are asymmetric, and investors would prefer a portfolio return with larger degree of asymmetry when the mean value and variance are same. In order to measure the asymmetry of fuzzy portfolio return, a concept of skewness is defined as the third central moment in this paper, and its mathematical properties are studied. As an extension of the fuzzy mean-variance model, a mean-variance-skewness model is presented and the corresponding variations are also considered. In order to solve the proposed models, a genetic algorithm integrating fuzzy simulation is designed. Finally, several numerical examples are given to illustrate the modeling idea and the effectiveness of the proposed algorithm. Banking and Finance†: Cheol S Eun, Jinso Lee (April 2010) published that the risk-return characteristics of our sample of 17 developed stock markets of the world have converged significantly toward each other during our study period 1974-2007, and (ii) that this international convergence in risk-return characteristics is driven mainly by the declining ‘country effect', rather than the rising ‘industry effect', suggesti ng that the convergence is associated with international market integration. Specifically, we first ompute the risk-return distance among international stock markets based on the Euclidean distance and find that the distance thus computed has been decreasing significantly over time, implying a mean-variance convergence. In particular, the average risk-return distance has decreased by about 50% over our sample period. We also document that the risk-return characteristics of our sample of 14 emerging markets have been converging rapidly toward those of developed markets in recent years. This development notwithstanding, emerging markets still remain as a distinct asset class. Lastly, we show that the convergence in risk-return characteristics has exerted a negative impact on the efficiency of international investment during our sample period. â€Å"Journal of investment management†, Lisa R Goldberg, Michael Y Hayes (first quarter 2010) published that a practical and effective extension of portfolio risk management and construction best practices to account for extreme events. The central element of the extension is (expected) shortfall, which is the expected loss given that a value-at-risk limit is breached. Shortfall is the most basic measure of extreme risk, and unlike volatility and value at risk, it probes the tails of portfolio return and profit/loss distributions. Consequently, shortfall is (in principle) a guide to allocating reserve capital. Since it is a convex measure, shortfall can (again, in principle) be used as an optimization constraint either alone or in combination with volatility. In principle becomes in practice only if shortfall can be forecast accurately. A recent body of research uses factor models to generate robust, empirically accurate shortfall forecasts that can be analyzed with standard risk management tools such as betas, risk budgets and factor correlations. An important insight is that a long history of returns to risk factors can inform short-horizon shortfall forecasts in a meaningful way. 17 ________________________________________ ________________________________________ RESEARCH METHODOLOGY Sources of data: We selected the companies based on the market capitalisation and for this we referred money control. om from where we sorted out the top ten automobile companies in India based on the market capitalisation value given as of March 1, 2010. Then the opening and closing stock price of the top ten automobile companies for the previous five financial years (2005-2006, 2006-2007, 2007-2008, 2008-2009, 2009-2010) was downloaded from NSE website(nseindia. com). The overall index return price was also downloaded from the same website for the same period. Top ten automobile industries selected based on market capitalisation are: Company nameMarket Capitalisation(Rs. Crore) Tata Motors43,388. 97 Maruti Suzuki 42,705. 24 Hero Honda38,218. 19 Tech Mahindra31,398. 74 Bajaj Auto 27,698. 93 Ashok Leyland 7,183. 83 HMT 6,307. 10 TVS Motor 1,800. 58 Eicher Motors 1,685. 52 Escorts 1,387. 46 Market capitalization (often market cap) is a measurement of the size of a business enterprise (corporation) equal to the share price times the number of shares outstanding of a public company. As owning stock represents ownership of the company, including all its equity, capitalization could represent the public opinion of a company's net worth and is a determining factor in stock valuation. Tools used: We used certain formulae to study on the risk and return of the companies and the portfolio management based on the Sharpe – Index model. The calculations were done in a spread sheet to make it easier. The formulae of the elements used in the spread sheet are as follows: Sum of Individual Stock returns – Ri and Market return – Rm. 18 Stock return – Y and Market return – X: = ((Today’s price – Yesterday’s price) / Yesterday’s price)*100. Mean of stock return – Y? , Mean of market return – X?. Y? = (sum of Y)/ total number of days X? = (sum of X)/ total number of days Standard deviation of Stock return – ? , Standard deviation of market return – ? x. Correlation = Covariance/(? y * ? x) Risk factor ? = Covariance *(? y / ? x) Return indicator ? = Y? – ? (X? ). Unsystematic risk – ? ei?. Cut off point Ci: n Ci = ? m? * ? ((Ri-Rf)? )/ ? ei? ) i =1 n 1 + ? m? * ? ( / ? ei? ) i=1 where , ? m = market variance. Z value = Zi/ ? _(i=1)^n-Zi where, Zi = ? /? ei? ( Ri-Rf)/? – Ci X value = Zi / Z. Tables and bar graphs are drawn for average values of important parameters like ? , ? x, ? y, X? , Y? , for each company for all five years. Outcomes are represented diagramaticaly) A table for all companies’ cut-off point, Z value, X value is also drawn. Population & Sample size: There was a total of about 16 automobile companies registered in NSE website out of which we selected top 10 companies based on the market capitalisation as mentioned before. Total population in NSE = 16. Sample size = 10. (Specific yrs. 2005-2010) 19 ________________________________________ ________________________________________ ANALYSIS AND INTERPRETATION Ashok Leyland Interpretation: Average Stock return Y? is largest during the year 2009(approximately 0. 6) and lowest during the year 2008 (approx. -0. 4). Risk factor ? is more during the year 2010 and low during the years 2006, â €™07, ’08. Highest deviation is seen in the year 2008 and least is seen in 2005. 20 Eicher Motors Interpretation: The company experiences the highest average stock return during the year 2009 (approx. 0. 5) and the lowest during the year 2010(approx. -0. 25). Risk factor ? is below 1 for all the years except 2010. But the average value for the five years stays below 1. Highest deviation is seen in the year 2008 and least deviation one is seen in 2005. 21 Escorts Interpretation: The company has a highest stock return in 2009 and less stock return in 2008. Average stock return is very low which is near to 0. 053. ?eta value is high in the year 2005 and low in the year 2009 and all the beta values are above 1. Deviation is seen high in 2008 and less in 2010. 22 Hero Honda Interpretation: Beta value is seen to be above 1 during the years 2007 & 2010. Average beta value of the company is seen to be below 1. Stock return is high during the year 2009 and negative during the years 2006 & 2007. Deviation is high in the year 2008. 23 HMT Interpretation: The company has a good stock return during the years 2005 and 2010 and negative during the year 2008. The deviation is very much high for the company here. Average deviation of 4. 5 is seen here. Average beta value is more than 1. 24 Maruti Suzuki Interpretation: Stock return is highest during the year 2009 and less during 2008. Beta value is less than 1 after 2007 and more than 1 before 2007. Deviation is large during 2008. 25 Tata motors Interpretation: Stock return is high in the year 2009 and has gone negative in the previous year. Beta value is less 1 from 2007 and >1 in 2005 & 2006. The deviation is more in 2009 and 2008. 26 TVS Motors Interpretation: Stock return high in 2009and very low in 2008. Beta value is less than 1 in all cases than in 2006. Deviation is supposed to be high in 2009. 27 Tech Mahindra Interpretation: The stock return is very high during the year 2006 and very less(negative) during the year 2008. Deviation is almost high for all the years. Average beta value is < 1. 28 Bajaj Auto Interpretation: The company has shown a good stock return of positive value during the years 2009 & 2010. Beta value is less than 1 for all the years. Deviation is high during the year 2008. 9 Table- Summary of Calculations Market return vs. Individual stock return Figure – 1 30 Comparison of Unsystematic risk and cut off points Figure – 2 Systematic Risk Figure – 3 31 Interpretation from Summary of Calculations: Table Figure – 1: HMT has the highest stock return and is greater the market return(about 170) Second comes the Maruti Suzuki followed by Hero honda. (about 150) TVS Motors has the lowest stock return of all the 10 companies and is less than the market return. (about 70) Figure – 2: Unsystematic risk is high for HMT (approx 19) and second Escorts. (approx 18) Hero Honda has the lowest unsystematic risk. (approx 5) Bajaj Auto has the highest cut off point whereas Ashok Leyland has the lowest cut off point. Figure – 3: Escorts has highest systematic risk (approx. 1. 36) HMT has the second higher risk value(approx. 1. 09) Bajaj Auto has the lowest risk value (approx. 0. 65) 32 ________________________________________ ________________________________________ FINDINGS Ashok Leyland: The ? value gives us a stock’s risk profile. Here we can take the average beta value and interpret and comment on the overall risk for the five years taken by the concern. Average beta value = 1 which means it is neither stable nor unstable. It is a neutral share and is expected to follow the market. From the table when we look at the ? value its average value is . 01233 which means that the minimum riskless return is 1. 23%. The company’s earnings from stock investment has reduced in the year 2010. We get a positive correlation value which implies that a 0. 5% in the market return will affect a company’s stock return by 0. 5% in the same direction. Eicher Motors: The company’s earnings from stock investment has reduced in the year 2010 from 2009. Here ? he company expects less volatility and less risk and therefore less returns. These are called defensive shares and will generally experience smaller than average gains in a rising market, will generally experience smaller than average falls in a declining market. From the table the average ? value 0. i6691. The minimum risk free return is 16. 69%. Mahindra is having high risk free rate so it is safe to hold this stock. Correlation value = 0. 44% 0. 44% of change in market return affects the stock return by 0. 44% in the same direction. Bajaj Auto: The return on stock investments is good during 2009 & 2010 when compared to the year 2008. Since beta value < 1. The company expects a stability, less risk and less returns. These are called defensive shares and will generally experience smaller than average gains in a rising market, will generally experience smaller than average falls in a declining market. Alpha From the table the average ? value 0. 24715. The minimum risk free return is 24. 715%. Bajaj is having the highest risk free retun in all the ten companies so it is very safe to invest. Correlation value = 0. 46% 0. 46% change in Rm = 0. 46% change in Ri in the same direction. 35 Summary of calculation: HMT is having high stock return because they are using stock investments efficiently in the business The low cut-off point is good which implies less payback. Ashok Leyland has minimum payback whereas Bajaj has maximum payback. Escorts involves in high risky projects expecting more returns rather Bajaj is not involving in risky projects. SUGGESTIONS Hero Honda is having low risk and high return. So it is good for the investors to invest in this company. (for investors) HMT is taking high risk and provides decent returns. So next to Herohonda, HMT is a good company to invest. (for investors) Bajaj is having a low return at a medium risk so the company have to indulge in risky projects to get good returns in the future. (for company) HMT and Escorts have high unsystematic risk, so they can go for product diversification to reduce the unsystematic risk. (for company) (Product diversification helps the companies to reduce the unsystematic risk because even if they lose in one of the products they can make up their revenues by some other product) Cut off point is the point at which the required rate of return is worth the expense. If it is high then that company is going to take a long time to repay its initial investment. In our case Ashok Leyland will be able to recover the money invested in the project as soon as possible than others. Ashok Leyland might serve as the best company to invest to get their investment back whatever the return may be. Based on the stock return, risk and the cut off point, Herohonda is a good company to invest because they have an optimum return at an optimum risk level. TVS motors has a high cut off point, less stock return at a high risk. They can reduce their risk level, because it might involve large sum of investment. 36 ________________________________________ ________________________________________ CONCLUSION According to our findings we suggest that Hero Honda is the best Automobile company in India to invest and the investment can range up to 42% as per our analysis. Although India has been much discussed in recent years, and has been the recipient of major foreign investment in its automotive industry, it has in many ways not received the attention of the world’s other major developing country, China – but this is about to change. With the world’s second largest and fastest-growing population, there is no denying India’s potential in both economic and population terms and the effect it will have on the auto industry in the years to come. The country is already off to a good start, with a well-developed components industry and a production level of one million four-wheeled vehicles a year, plus a further five million two- and three-wheelers. India also has substantial strength in mass production techniques and is particularly well served in the fields of research and development and software design. Therefore, as always, the question is when will expansion occur and to what level? The implications, market drivers and scope of a future massive Indian vehicle market are covered in the India Strategic Market Profile, a brand-new forecast of Indian automotive and related activity to 2020. 37 BIBLIOGRAPHY Robert A. Strong, year, Portfolio Management, 82-85,123-131. Jeff Madura, 2009, Finance Markets and Institutions, 243-283. Dr. G. Ramesh Babu, 2007, Portfolio Management Including Security Analysis, 577-647. www. nseindia. com www. moneycontrol. com www. springerlink. com www. proquest. com www. sciencedirect. com www. jstor. org www. informaworld. com 38

Is Eco-tourism the way forward for countries such as Ecuador?

The Republic of Ecuador is located on the Western Hemisphere, on the northeastern corner of South America. The neighbouring countries are: Colombia in the North and Peru in the South. Ecuador is one of the smallest countries in Latin America (roughly same size as Britain). Despite its size, Ecuador offers great variety of places to visit, many different cultures, and many activities to enjoy such as nature tours, mountain climbing above 6000 meters, paragliding, white water rafting, or scuba diving. Ecuador overall has a population of 11 million people, with an annual population growth rate of 3%. Ecuador formerly is a developing nation, evidence that can be used to establish this is for starters the GNP level is depleted being $3,000 (2001), when compared to a country such as USA $36,300 (2001) or UK $24,700 (2001) it shows that Ecuador is a developing country. The diagram on the next page shows the GNP level through the years passed for Ecuador. Other aspects that show that Ecuador is a developing are the birth rate and the infant mortality rate. The infant mortality rate of Ecuador reaches up to 30.69% in comparison to United Kingdom's infant mortality rate, which is 5.78%. This already shows that there are much more babies dieing per 1000 live births in Ecuador than UK, which then leads to showing that there are more diseases and unhygienic living conditions. The life expectance of Ecuador initially is 69.54 for males and 74.90 for females, saying that, the life expectance in UK a developed country is 74.73 for males and 80.15 for females. There are over 50 % of Ecuadorians living in poor conditions. All these factors prove that Ecuador is still a developing country. Being a LEDC, Ecuador has many concerns for convalescing living conditions and improving the economy. Therefore Ecuador's main concern is money. The most comfortable way is TOURISM, there are however other ways for getting money such as labour work, but since Ecuador has beautiful sceneries and plenty of attractions tourism will be the fastest and the easiest way of bringing in money into the country. Earning more money would help the country improve the economy which then can improve and create jobs for the unemployed, it will also help build more schools and hospitals which would help the country on the whole and generally improve amenities. Commercial Tourism Many LEDC's promote tourism for money. Tourism is a huge industry that can support many different types of jobs. This would be beneficial for the people who are unemployed, they can take up jobs such as shopkeepers in fairs in order for tourists to buy souvenirs, and other jobs can include cleaners. Tourism generates â€Å"easy money† as tourists will be coming to see your culture and your traditions and also enjoy the many facilities such as sight seeing or enjoying themselves on beaches. It basically does not include much hard work for the indigenous people. Since tourism is one of the fastest growing industries in the world, more and more people are spending more money on tourism each year, travelling abroad etc. Many countries such as Jamaica, Kenya or India are all starting to invest and become familiar with tourism. Most of the LEDC's are becoming increasingly popular with tourists coming to see different cultures or to relax and enjoy the wildlife, which are only to be found in LEDC's. Ecuador is the perfect place for tourists interested in the outdoors and nature activities. Fine colonial architecture, rain forest trips, Inca treasures and the Andes are among Ecuador's top attractions. The main reason people will go to Ecuador for a holiday is that it is â€Å"a land of contrasts you will never forget, Ecuador is divided by nature, yet solidly held together by a common cultural heritage. It is a four-in-one deal offering an awesome wealth of cultural and natural diversity; trek through the Andes, swim along a tropical coast, and explore the mysteries of the jungle and the Galapagos Islands, all in one trip!† Tourism not only provides many different jobs, but it also helps areas that are particularly spoilt to start to improve and develop. Money is invested into the local areas; services are improved such as hospitals and schools. From tourism the local transport system improves tremendously, which would benefit the local indigenous people and also tourists. As you can see, this (commercial) type of tourism can help a country economically and also help the indigenous people. While â€Å"Commercial tourism† looks to be perfect in all ways, it also has many disadvantages, some of which discourage LEDC's to take on commercial tourism. These disadvantages include social problems, for instance when western tourists offend local people or various religious groups within the society because of their style of dress or even when their behaviour seems different it discourages these local people to stop working with tourism. There can also be environmental problems, when natural environments and landscapes are damaged; from tourists for example coastal areas and seaside resorts are completely altered from rubbish from the tourists. Rivers and seas are increasingly polluted from the tourists throwing things such as wrappers and rubbish, which again effects the environment negatively. Mainly the government would be in favour for this type of tourism but only to an extent. Other wise the indigenous and the more environmental friendly people would be against this type of tourism. The main risks commercial tourism and also any other type of tourism is that a country may not be as â€Å"popular† as time passes, it will become less interesting to holiday makers and with the same leisure activities each year, it would start to become boring to people. From all the disadvantages LEDC's are being discouraged constantly from the fear of their natural environment being destroyed by tourists. Therefore more and more LEDC's have started to familiarise them selves with another type of tourism, ECO-TOURISM. Eco-Tourism Eco-tourism comes from a concern about the natural ecosystems of places and from a concern that the local ways of life and the environment or wildlife can be damaged or destroyed by commercial tourism. As commercial tourism has extensive negative effects on the beaches, local cultures and the environment, the idea of developing eco-tourism is to encourage smaller scale developments with visitor coming and staying with the indigenous people and learning about the environment. This type of tourism also supports the idea that holidaymakers will spend time learning about the wildlife and the environment. It can also include bird watching and sight seeing. The main scheme of eco-tourism is to make tourism less damaging and more in tune with the environment. The main obvious advantage of eco-tourism is that it helps the environment enormously and also the wildlife. The other advantage of eco-tourism is that the money made would go straight to the actual indigenous population by small groups performing in front of tourists or acting like guides. The Quicha people are able to use their expert knowledge of the plants and animals of the forest as the basis of tours, which again will bring money straight to the people them selves. It is also an advantage as it would make the indigenous people more self-dependent and this would mean they would work for themselves. In contrast to commercial tourism where the local people have to take up jobs such as cleaners in order to get money and sometimes they are not being paid fairly. The profits that are earned from the eco-tourism are invested to improve the community and public issues such as schools and hospitals or health centres. This type o tourism also makes the people feel they are in the commun ity and they are working together, â€Å"it makes the community stronger† There would also be less crime because most of the crime came from children stealing things of the tourists in commercial tourism, but since the indigenous people are more intact with the eco-tourists there would be less crime. While being many advantages, there are also a few disadvantages. But none of which include environmental or social issues but instead include economical issues. These economical issues would include the lack of tourists interested actually in eco-tourism. Again most people would rather spend their money to go abroad to places where they can relax on beaches, enjoy parades and basically leave their troubles behind, there would not be that many people interested in learning about the environment and the wildlife, and because of the lack of tourists going to the eco-tourism countries there would be a lack of jobs and more people unemployed since most of the indigenous people will be depending on the tourists so they could give tours. The other main disadvantage apart from the lack of tourists is that the country will just be depending on the tourism and when that starts to decrease, the country as a whole will start to be more and more less developed. Views of the local people Different people in the village would be thinking different things. The main thing on there minds will be to be in favour of eco-tourism as they will not be up for commercial tourism as that can damage the rainforest, some people even believe that commercial tourism could not bring enough jobs and if it does it would be jobs such as cutting down tree's which is against the culture and traditions. The village leader wants the village to stay together and prosper. However he is completely against commercial tourism. This is because the last time that tourist had come into the village they had paid the villagers little money and also they did not respect the villagers in a proper manner. The village leader is also not sure about the eco-tourism scheme, as he is worried it would have the same effect as commercial tourism, which was poor. Local development worker in contrast to the village leader believes that eco-tourism is the right way forward. The local development worker has helped villages around the area and has seen it work; therefore she believes that eco-tourism will work in this village. As you can see we can understand why different people will differ in their views for or against eco-tourism, for instance the village only wants the village to grow and develop through, he does not understand the facts of what eco-tourism can do because of the fear of what he had suffered when the tourist exploited their village and did not respect any of the villagers. On the other hand the local development worker believe that the village can develop very easily if they allow eco-tourism, her main argument against the village leader could be that she has seen other villages develop through eco-tourism and it can happen to this village as well. Evaluation After analysing both commercial and eco-tourism, I have found many advantages and disadvantages of both. Commercial tourism will destroy the land and the wildlife will get hurt and the indigenous people are sometimes not respected. On the other hand commercial tourism does bring more money into the country not necessarily straight to the local people and also more people are interested in commercial tourism. However the eco-tourism protects the wildlife and keeps the land clean and unpolluted. It also helps the indigenous people feel they are dependent and part of a strong community, but eco-tourism having the environmental and social advantages, it has a flaw, there is an economical disadvantage which is, it brings in less money and in most cases most tourists would go to a commercial tourism country as it would be more pleasurable. The final question really is â€Å"Is eco-tourism the way forward for countries such as Ecuador?† After going through all the advantages and disadvantages and what the indigenous people think, my answer would be, yes eco-tourism is the way forward for countries such as Ecuador. I have decided this because, it helps the environment without destroying it, it does not hurt the wildlife in anyway, and it also brings in a reasonable amount of money straight to the indigenous people. However these all are very important factors on why I have chosen eco-tourism, but there is one more imperative factor which I think is vital, it is that the Quichua tribe are happy with it, they believe eco-tourism is the way forward, it does not destroy their environment and the wildlife are safe and the Quichua people are satisfied in occupying jobs such as tour guides. The main argument I would believe which is against eco-tourism is the economical problem; people believe that eco-tourism will bring in less money than commercial tourism. However the way I see it, I believe that every industry when it starts of in the beginning has less people, in spite of this there are small groups going to countries that follow the eco-tourism scheme and slowly that group will be expanding as people will be telling others about their holiday and slowly the eco-tourism industry will begin to rise.