Unit 9 P4 Free Essays

Unit 9:exploring creative product promotion P4: explain the reasons behind the choice of media in a successful promotional campaign. Brandon Baumgart IBS 1c P4 Version 3 30 may 2012 Mrs. Daymond From mouth-to-mouth to TV and Internet. We will write a custom essay sample on Unit 9 P4 or any similar topic only for you Order Now In 1886 when coca cola started they didn’t had TVs, radios and Internet to tell people they have invented something new. So everything was from mouth-to-mouth, through the flyers, the newspapers or big wall paintings on high buildings. Later they could add the radio in this list. And that status they still have but how do they do that now a day? They do that most through the TV will al the happy people who drink Coke and with the happy and bright colours and their slogan: OPEN HAPPINESS. Why one the TV and Internet and not on the radio for example? Because if you hear a commercial on the radio you only HEAR and not see the commercial but on TV you SEE and HEAR the commercial and because of that you want a Coke. The number one reason is that almost everybody has now a day a TV, a computer and a smartphone with internet, so Cola has to go with their time and now they have a general site about all the different kinds of beverage the have, they also have a Coca Cola web shop, a Cola diet site, a Cola goes green site and many more. All these sites are for people want to know more about Coca Cola or buy their stuff. Coca-Cola uses direct marketing in many ways. First, the company partners with various restaurants, movie theatres, etc. to carry its product. Unit 9: exploring creative product promotion P5: design a promotional campaign for a given product/service to meet the needs of a given campaign/creative brief @ Fair trade Max Havelaar products Brandon Baumgart IBS 1c P5 Version 1 27 January ‘12 Mrs. Daymond Table of contents 1. Introduction 2. Campaign brief 3. Creative brief 4. Budget and time lining 5. Mood board 6. Conclusion Introduction In this task you design a promotional campaign for a given product/service to meet the needs of a given campaign/creative brief @ Fair trade Max Havelaar. Fairtrade since 1988 Max Havelaar Foundation was founded in 1988 by Nico Roozen and Frans van der Hoff in response to an urgent call of coffee farmers in Mexico. â€Å"Aid is good, but a fair price for our coffee is better. Then we don’t need to hold or hand,† they argued. With a fair price for coffee beans, small farmers take matters into their own hands. I hope you will learn as much I will with typing this report. Campaign brief Background to the proposed campaign The Max Havelaar Foundation grants since 1988 in the Netherlands, a hallmark of coffee at a fair price for producers in the market. The initiative was developed in consultation between Mexican coffee farmers and a Dutch aid organization. The organization is further supported by ICCO, an interchurch organization for development. The initiative was copied: Max Havelaar is now also the name of the only independent fair trade label for foods whose producers in Latin America, Africa and Southeast Asia by buying a higher price than the world price is paid. On top producers receive a premium as an extra. The name comes from the book Max Havelaar (1860) by Multatuli, which injustice is made of coffee farmers in the former Dutch East Indies. The mark guarantees that organizations of small farmers or plantations in developing countries receive a fair price for their products. Although the mark, partly because of his name, especially evokes associations with coffee, it is also found in ice cream, tea, chocolate, honey, cocoa, fruit juice, rice, wine, beer, sugar and fruit. Include the make â€Å"Oke†, under that name bananas, oranges, pineapples and mangoes sold, may Fairtrade / Max Havelaar label. In addition there are other brands such as Ben Jerry’s (ice world 100% fairtrade), Verkade, Swiss Noir (chocolate), Penotti (chocolate spread) and Fair Trade Original (an array of products). There are also several supermarkets (such as Albert Heijn â€Å"Pure and Honest† and Lidl â€Å"Fair Globe†) that choose to sell fruit to sell under their own brand of course Fairtrade / Max Havelaar label. In January 2010, the supermarket chain PLUS the largest commitment to fair trade made. From this date all bananas Plus sells Fairtrade / Max Havelaar certified. In 2011, the SPAR supermarket organizations and ALERT followed suit. The foundation itself is acting in any of these products, it provides only the label that guarantees a fair trade. In 2004, 3% of the Dutch coffee and 2% of the Belgian coffee certified under the Max Havelaar label. In many countries there are foundations that same goal and same working method. The Max Havelaar label is now (2009) in some 23 countries and used products come from some 55 countries. Of these, approximately a half million farmers directly (and workers) benefit. These organizations have joined the international Fairtrade Labelling Organizations (FLO). The Fairtrade mark (the international version of the Max Havelaar label), with 2006 revenue growth of 40%, the largest increase was in the United States where coffee sales quadrupled. In January 2006, the Max Havelaar label a big campaign in the Netherlands to focus on products with its brand to establish. The advertising slogan â€Å"no discount, but advantage,† with a wink referring to the price war between the Dutch supermarkets, wanted the label to highlight that the products are more expensive, but that a portion of the proceeds benefit the producers them. we are going to do it big than in 2006. We want more people to be aware about the prodcuts they buy. We are going to show in our commercials small movies about were their â€Å"cheap† coffee comes from and where our coffee comes from. Also we are making a FaceBook page and a Twitter page to keep them updated. Objectives To increase awareness of the product through advertising from 36% to 46% by the end of the year 2012. And that more people buy our products. Target markets Is everybody who does the grocery and â€Å"anyone who knowingly lives and want to meet others with the same respect that you take yourself expect from others†. Product/service specification Nowadays you can find the Max Havelaar Fairtrade Mark not only coffee but a wide range of products such as chocolate, fruit, wine, tea, spices and even on ice and peanut butter. Also adorns the label on products such as cotton bath towels, blankets, shirts and curtains and flowers. The Max Havelaar Fairtrade Mark is the only standard that the ‘Triple P’ of sustainable development – People, Planet and Profit – completely covers. Through a guaranteed fair price creates the label space for both economic development and environmental improvement and social progress. Fairtrade system that makes it a unique model with the highest standard for sustainable development. People The identity of the Max Havelaar label is primarily associated with social justice. Respect for human rights and labor standards, according to the Charter and Conventions of the United Nations, are the starting point. But social progress is not as the basis for prosperity and ecological health is destroyed. Planet Farmers realize that is why many organizations turn to organic farming. Part of the products with the Max Havelaar Fairtrade Mark also has an organic label. But the Max Havelaar label itself represents a healthy environment. Dealing with soil, water, air and biodiversity in Fairtrade bound by rules. Basic standards to be met as a condition for certification. The system also offers guidelines for further improvement. Profit And the financial area, because that’s not without. The space created by a fair reward for goods supplied. Through better trading conditions to improve poor farmers Fairtrade gradually their living standards. They have tools at hand to invest in their operations and their environmental performance, with organic certification often represents the pinnacle. Fairtrade in the third P belongs right there. He suggests farmers are able to trust the future to work on sustainable development. Creative brief Background/introduction We are Cherry Redâ„ ¢, one of the most efficient advertising agencies. Established in 1991 we strive to offer the greatest service possible putting the client at the centre of business. Target markets Is everybody who does the grocery and â€Å"anyone who knowingly lives and want to meet others with the same respect that you take yourself expect from others†. Women respond most favourably to social responsibility messages. Design marketing materials aimed at women. The age group 25-34 respond more favourably to socially responsible messaging. People identify with fair wages and employee treatment. Wealthy people and people who buy gifts often tend to do it online and in boutiques. A great website, product reviews, and well-trained sales people will help you sell. Promotional/advertising objectives Create consumers demand and awareness for the Fair trade products Max Havelaar: proud to be fair. Promotional/advertising proposition That the products they buy must stay fair too the farmers and for the customers. Support Fair trade * Empowerment * Poverty * Conservation * Social improvement * Clean environment * Development * Transparency * Co-operation These points will make a better world. Tone of voice Serious, friendly, â€Å"green†, everyday and FAIR. Mandatory inclusions Max Havelaar fair trade logo, Max Havelaar website, available at the better supermarket. Budget and timing Promotional Design s For Campaign| Costs| Logo DesignEmail DesignPostersLeaflet DesignNewspaper Advert DesignWebsite DesignCommercial on TV| â‚ ¬50. 00â‚ ¬160. 00 â‚ ¬395,48 (25 needed at â‚ ¬15,82 each)â‚ ¬140 (2000 needed at 7p each)â‚ ¬900â‚ ¬300 paid for the yearâ‚ ¬ 11. 00| Maximum Budget Of: ? 15. 000,00| Total Cost: ? 12. 945,48| We want the ad’s come out in the holiday period because people will give and buy more in this season because it stands for togetherness, joy, giving and caring for fellow creature. Conclusion This was a very interesting task. Now I know more about how too make a simple promotional campaign. And also know more about Max Havelaar Fairtrade products. Such as that Max Havelaar is not a brand. Max Havelaar Foundation is part of an international umbrella: Fairtrade Labelling Organizations (FLO). I hope you have leared as much as I have. How to cite Unit 9 P4, Papers

Trade Infrastructure and Economic Development

Question: Discuss about the Trade Infrastructure and Economic Development. Answer: Introduction: The demand for oil is usually inelastic. Therefore, an increase in the price of oil is good news for the exporters since their revenue will increase significantly. However, the importers will have to carry the burden associated with the hiked prices. The effects arising from an increase in the global oil prices are enormous since oil is the major world traded commodity(Ajakaiye Oyejide 2012, p. 56). The prices of oil indirectly impact costs such as manufacturing, heating, and transportation. As the prices of oil increases, the costs of producing goods in an economy also rises and hence leading to a reduction in the aggregate supply(Boyes Melvin 2012, p. 85). A decline in the aggregate supply will eventually lead to a drop in the Gross Domestic Product. An increase in the oil prices will increase the costs associated with the production of goods and services in an economy. This situation will result in a reduction in the aggregate supply. On the graph one above, a decline in the aggregate supply is shown by the shift of AS curve from SRAS1 to SRAS2. A shift of the curve towards left results in a reduction in the GDP as demonstrated by the movement from Y2 to Y1. Increase in the global oil prices will result in cost-push inflation in the importing nation. The rising cost of production is known to reduce the profit margins of the companies. In an endeavor to maintain their profit margins, the firms will pass over the burden associated with increased production costs to the consumers through higher prices. This scenario will result in cost-push inflation. On the graph one above, this trend is shown by the movement of price level from P1 to P2. A hike in international oil prices overstretches the government revenue. The government has to get more money to cater for increased oil imports. The increase in the cost of undertaking business resulting from higher oil prices can also increase unemployment levels in the economy. With higher unemployment levels, the government will be required to make more stimulus payments and additional unemployment benefits. Moreover, government revenue collected from taxes will decline due to an increase in unemployment rates(Carlin Soskice 2014, p. 65). The budget deficit will widen forcing the government to resort to borrowing to accomplish its operations. As a result, public sector borrowing will increase significantly. An increase in the global oil prices increases the import expenditure depicting that a lot of money is going outside the country. In the event the countrys export gains are declining or stagnant, then enormous trade deficits can occur(Frank Bernanke 2011, p. 64). As the import expenditure increases, the balance of payment deficit will also widen. A Cut in the Personal Rate of Income Tax When a government reduces the personal income tax, the disposable income of the citizens will increase. As a result, the individuals will consume more causing an increase in the aggregate demand(Goodwin 2014, p. 87). On the graph two below, this change is shown by the shift in the AD curve from AD1 to AD2. As the aggregate demand curve shifts, the Gross Domestic Product increases, that is, movement from Y1 to Y2. A cut in the personal rate of income tax will result in demand-pull inflation. An increase in the disposable income means that the individuals have more money to spent on consumption. The demand for products will increase while the supply remains constant and hence an increase in the prices(Hubbard O'Brien 2013, p. 74). On the graph two above, this trend is shown by the movement of prices from P1 to P2. Taxes are primary sources of income for government revenue. Usually, the government taxes its citizen to get funds for running the country and provision of public services(Nils Gottfries; Palgrave Macmillan. 2013, p. 51). Therefore, a cut in personal income tax will mean that the revenue of the government declines significantly. The government will increase the borrowing to fill the gap. Reduced personal income tax leads to higher consumer spending as the disposable income will be high. The government may relax trade barriers to allow more imports to meet the rising demand. This scenario deteriorates the current account and hence an increase in the balance of payment deficit. When the government purchases public and private bonds, there will be more money in the economy. The high amount of money in circulation will increase both investments and consumption resulting in an increase in the aggregate demand. On the graph above, this effect is shown by the shift of AD curve towards the right. The GDP will grow to Y2 nearing the potential GDP. As the aggregate demand shifts towards the right, the prices of services and goods in the economy will also increase, that is, movement from P1 to P2. Therefore, the when the government buys the bonds, there will more money in circulation causing inflation. Public Sector Borrowing The intention of government buying the private and public bonds is to increase money in the economy. Therefore, we anticipate that during this period the government will not borrow and hence a decline in the public borrowing. The purchase of bonds by the government will avail more money in the economy thus increasing consumer consumption. The levels of imports in the country will increase to cater for the rising demand. Since a lot of money will be going outside the country, the trade deficit of the country will worsen. Infrastructure development is a major factor influencing the economic progress of many countries in the world. When the government increases its expenditure on the infrastructure, there will be a favorable environment for conducting businesses. For instance, improved road, air, and railway transport, as well as sufficient supply of affordable electricity lead to drop in the costs of transacting business in the country(Sikdar 2011, p. 45). Improved transport indicates that there will be a smooth movement of goods and services and hence improvement in productivity. On the graph four below, this trend is demonstrated by the shift in the aggregate supply curve rightward from SRAS1 to SRAS2. As the AS curve shifts, there will be an increase in the Gross Domestic Product, that is, movement from Y1 and Y2. Improvement in the infrastructure of the country is known to reduce the cost of doing business. For example, faster and safer movement of raw material to the industries and finished goods to the market minimizes both resources and time used by companies. Moreover, sufficient supply of electricity makes power affordable to the firms. On the graph 4, a reduction in the overall prices of commodities is shown by the movement of price level from P2 to P1. Public Sector Borrowing Constructive infrastructural development requires a significant amount of resources. Roads, electricity, rails, bridges, and airports need massive investments. The government will resort to internal and external borrowing to secure the funds for developing the infrastructure. As a result, an increase in public infrastructure spending will lead to an increase in public sector borrowing. Most prosperous countries in the world have better infrastructure in place to facilitate business operations. Good infrastructure attracts massive foreign direct investments thus boosting employment levels and economic growth and development(Sikdar 2011, p. 57). There will be an expansion in exports and a reduction in imports as most of the goods will be manufactured locally. Therefore, the balance of trade will improve. Economic event GDP Inflation Public sector borrowing Balance of trade An increase in the global oil prices Decrease Increase Increase Deteriorate A cut in the personal rate of income tax Increase Increase Increase Deteriorate An increase in the purchase of public and private bonds by the Central Bank Increase Increase Decrease Deteriorate An increase in public infrastructure spending increase Decrease Increase improve Bibliography Ajakaiye, DOI Oyejide, TA 2012, Trade infrastructure and economic development, Routledge, London ; New York. Boyes, WJ Melvin, M 2012, Macroeconomics, South Western, Mason, OH. Carlin, W Soskice, DW 2014, Macroeconomics: Institutions, Instability, and the Financial System, Oxford University Press, Oxford. Frank, RH Bernanke, BS 2011, Principles of macroeconomics, McGraw-Hill Irwin, New York, N.Y. Goodwin, NR,NJA,HJ 2014, Macroeconomics in context. , M.E. Sharpe, Armonk, New York. Hubbard, RG O'Brien, AP 2013, Macroeconomics, Pearson, Boston ; Montreal. Nils Gottfries; Palgrave Macmillan. 2013, Macroeconomics, Palgrave Macmillan, Basingstoke ; New York. Sikdar, S 2011, Principles of macroeconomics , Oxford University Press, New Delhi.

Heart Of Darkness By Conrad Essays (1308 words) - Congo Free State

Heart Of Darkness By Conrad Joseph Conrad writes what seems to be a simple story about a man in search of an ivory hunter. Look deeper into the jungle, the core of Heart Of Darkness , where Conrad hides the meanings and symbolisms that shape this story. Conrad has been accused of being a racist because of the way he portrays the natives in this story. It is a controversy that continues even today. It can be argued that because of the way he depicts the natives, they cannot be an essential part of, Heart of Darkness. However, read between the lines, it is obvious that the story would not be shaped the way it is if the natives were not involved. The natives in a sense create Kurtz. They are his people and his followers: Suddenly round the corner of the house a group of men appeared, as though they had come up from the ground. They waded waist-deep in the grass in a compact body bearing an improvised stretcher in there midst. Instantly in the emptiness of the landscape a cry arose whose shrillness pierced the still airAnd is if by enchantment streams of human beings - of naked human beings - with spears in their hands, with bows, with shields, with wild glances and savage movements, were poured into the clearing by the dark-faced and pensive forest. (). The first time Marlow meets Kurtz is in this scene. It shows Kurtz not only depends on the natives for physical support but also for protection. Conrad's portrayal of the natives as human beings with wild glances and savage movements is ironic because Conrad does not think they have the right to be put on the same level as the white man even though Kurtz could not exist without them. The natives are Kurtzs followers and worship him like a god and yet they are seen as only a part of the jungle that is dark and undiscovered. One scene in Heart of Darkness, which unquestionably shows the lack of respect the natives are given, is when Marlow is at the Company Station on his way to the Congo. He describes the natives as ants which are decomposers. Marlow is describing the natives as creatures that do nothing but break down and destroy the land. When Marlow tries to get away from this scene of natives he steps into a gloomy circle of some InfernoBlack shapes crouched, lay, sat between the trees, leaning against the trunks, clinging to the earth, half coming out, half effaced within the dim light, in all the attitudes of pain, abandonment, and despairThey were dying slowlythey were nothing earthly now, nothing but black shadows of disease and starvation lying confusedly in the greenish gloom, (Conrad, pgs.1968-1969). Marlow characterizes the natives as unearthly creatures that have been abandoned from society. It has been accepted that they do not deserve to live like regular human beings. They must live in abandonment and despair because they are criminals. Marlow depicts them as slowly rising out of the earth as if they were horrid creatures that only come out in the darkness because no one can bear to see them in the daytime. Marlow also describes the natives as bundles of acute angles sat with their legs drawn upone of these creatures rose to his hands and knees and went off on all-fours towards the river to drink. He lapped out of his hand, then sat up in the sun light crossing his shins in front of him, and after a time let his woolly head fall on his breastbone, (Conrad, pg. 1969). This is utter degradation of a human being. At this point, one does not even see the natives as human anymore. They have been described not only as acute angles but also as dogs that lap up their water on all fours. How more degrading can one be to a race of people? The one distinguishable native in Heart of Darkness is the helmsman. Although, he is not important enough to be given a name, he is given a title, which is a step above his comrades. He is an athletic black belonging to some coast tribeHe sported

Free Essays on Histoy Of American Mafia

THE HISTORY OF THE AMERICAN MAFIA Throughout history, crime has existed in many different forms and has been committed by not only individuals, but by groups as well. Crime is something that knows no boundaries; it exists in all cultures, is committed by all races, and has existed in all time periods. Crime exists as a part of the economic institution and is a lifestyle for many people. Crime also exists in both organized and un organized forms. Since the early 1900's, "organized" crime has existed in the United States. The following will show where, when, and why the Mafia came to the United States, who organized it in the United States, and how it differed from its origins in the European mafia. By showing this you will see how this specific type of organized crime has In the ninth century, Arab forces occupied Sicily. The native Sicilians were oppressed and took refuge in the surrounding hills. The Sicilians formed a secret society to unite the natives against the Arab and Norman invaders. This secret society was called Mafia after the Arabic word for refuge. The society's intentions were to create a sense of family based on ancestry and Sicilian heritage. In the 1700's, pictures of a black hand were distributed to the wealthy. This was an unspoken request for an amount of money in return for protection. If the money was not paid, the recipients could expect violence such as kidnappings, bombings, and murder. By the nineteenth century, this society grew larger and more criminally oriented. In 1876, Mafia Don Rafael Palizzolo, ran for political office in Sicily. He forced the voters to vote for him under gunpoint. After being elected into office, he promoted Mafia Don Crispi as Prime Minister. Together the two put Sicily under government control an d funneled government funds to the society known as the Mafia. In the 1800's, New Orleans was the largest Mafia site in the United States. It was while investigating the murder of a... Free Essays on Histoy Of American Mafia Free Essays on Histoy Of American Mafia THE HISTORY OF THE AMERICAN MAFIA Throughout history, crime has existed in many different forms and has been committed by not only individuals, but by groups as well. Crime is something that knows no boundaries; it exists in all cultures, is committed by all races, and has existed in all time periods. Crime exists as a part of the economic institution and is a lifestyle for many people. Crime also exists in both organized and un organized forms. Since the early 1900's, "organized" crime has existed in the United States. The following will show where, when, and why the Mafia came to the United States, who organized it in the United States, and how it differed from its origins in the European mafia. By showing this you will see how this specific type of organized crime has In the ninth century, Arab forces occupied Sicily. The native Sicilians were oppressed and took refuge in the surrounding hills. The Sicilians formed a secret society to unite the natives against the Arab and Norman invaders. This secret society was called Mafia after the Arabic word for refuge. The society's intentions were to create a sense of family based on ancestry and Sicilian heritage. In the 1700's, pictures of a black hand were distributed to the wealthy. This was an unspoken request for an amount of money in return for protection. If the money was not paid, the recipients could expect violence such as kidnappings, bombings, and murder. By the nineteenth century, this society grew larger and more criminally oriented. In 1876, Mafia Don Rafael Palizzolo, ran for political office in Sicily. He forced the voters to vote for him under gunpoint. After being elected into office, he promoted Mafia Don Crispi as Prime Minister. Together the two put Sicily under government control an d funneled government funds to the society known as the Mafia. In the 1800's, New Orleans was the largest Mafia site in the United States. It was while investigating the murder of a...

Death and Dying Essay Example | Topics and Well Written Essays - 500 words

Death and Dying - Essay Example Despite medical practitioners charged with the responsibility of acting for the interests of the patients, they ought to respect their rights (Dowbiggin, 2007). It is extremely hard to predict, but clinicians ought to shun using their predictive skills but rely more on clinical plans (Dowbiggin, 2007). However, there are signs that when a person is dying exhibit and include, A person’s wish for a good death normally emanates from the failure of any possible cure (Dowbiggin, 2007). Therefore, it is essential that I consider the patient’s personal meaning, which is decidedly essential besides: Clinicians caring for the dying normally seek necessary self-care even out of the medical field, which will enable them nurture their gifts (Dowbiggin, 2007). This is because the strategy of detachment will not offer them a lasting solution owing to humanity’s emotional consciousness. I will plan before such that everything that requires my attention is already settled. In addition, I will also prepare my family and relatives so that my departure from this physical world will not bring a grieve burden to them (Dowbiggin, 2007). Primarily, this is by ensuring that I have settled all issues regarding both spiritual and emotional issues that will leave them with hope. Hence, they will take death as a temporary thing where we will reunite again in heaven and rejoice

Answers of questions of cases Assignment Example | Topics and Well Written Essays - 2500 words

Answers of questions of cases - Assignment Example The interpretation of this Article, therefore, includes both full and partial ratification and, therefore, the Pact is now in force. The effects of State K’s statement in the instrument of ratification imply that, although the State has ratified the Pact, it has reservations on the implementation of articles 2 and 3 of the Pact. In essence, State K is bound by all the other articles in the Pact save for article 2 and 3. It is, therefore, noteworthy that State K will not make racketeering a criminal offence for everyone in the state as stipulated by Article 2 of the Pact. Additionally, State K will not be under any obligation to either prosecute or extradite to a State which requests it, any person found within its territory whom there is reasonable cause to suspect of having committed acts of racketeering under Article 3 of the Pact. State L s letter may not have any significant effect on State Ks ratification of the Pact. This is because treaty ratification is a matter that i s solely decided by a State. Another state whether a party to or not to the Pact or treaty cannot compel another State on whether to ratify a Pact or the manner it should ratify such Pact. Consequently, L, s letter requiring withdrawal of the statement contained in State K’s instrument of ratification is only considered the opinion of State L and cannot affect State K, s ratification of the pact unless State L withdraws it ratification. 2) In this regard, two approaches to the recognition of a state oppose each other. There is a believe that the appropriate existence of a state in the international perspective will only become complete when the State is legally recognized by other States. There is also the contrary perspective that disagrees. As a result, there are two theories that focus on the recognition of the state, and they are the constitutive and declaratory theories. The constitutive theory provides that there is no automatic recognition of a body as a state. The the ory provides that a state is considered as a state when it is recognized as a state. Accordingly, other states have substantial discretion to recognize or not to recognize a state. Additionally, the new state only exists upon recognition by those other states. In this regard, a state is, and converts to an international being exclusively through recognition. The legal existence of new States gets its recognition from the will of other states already established. According to this theory, it is, therefore, noteworthy that a state cannot be considered as a proper subject in the international perspective unless it is recognized and approved by other states. On the other hand, the declaratory theory looks at the alleged state’s allegation of its sovereignty inside the territory it entirely controls to decide if it can access the international level. The declaratory theory is the opposite of the constitutive theory and holds that recognition is of little importance since states ha ve limited or no discretion in the determination of whether an entity is a state. The status of statehood according to this theory is based on facts and not state discretion. The foreign ministers statement can be interpreted as accurate according to the later theory that does not lay emphasis on recognition. There is the widespread argument that recognition is irrelevant for the existence of a state. In light of this, the attitude that is to be adopted by the British government is one that

Banking regulation and risk Essay Example | Topics and Well Written Essays - 1500 words

Banking regulation and risk - Essay Example The gravity of the problem is underscored by the length and the damage wrought by the slump, which some economists called as a recession and financial shock. In the effort of prevention, it is crucial to identify the causes of the financial crisis. Understanding the Slump Technically, it was the collapse of the American subprime lending market that has caused the crisis. But from its manifestation in the year 2007 towards its end in the latter part of 2009, the crisis proved to be an amalgamation of problems that facilitated and aggravated the crisis sparked by the subprime lending market crash. The consensus is that global macro-economic imbalances and financial innovation, which aggravated the excessive credit and liquidity expansion, combined with the failures in regulation, supervision and corporate governance collectively led to the financial crisis that has acquired global proportions. (UK Parliament, p. 7) The specifics of the causes of the financial crisis reveal a multi-face ted financial problem that, unfortunately, all boiled down to the matter of faulty and ineffective financial policymaking, regulation and supervision. For instance, central banks erred in keeping inflation in historic lows because it led to the ease by which credits were made available. Then financial institutions, in their greed to achieve higher returns, took more and more risks by introducing increasingly complex financial products which eventual taxed the long-term stability of financial institutions. September 2008 saw the peak of the crisis as ten large financial institutions failed or nearly failed, triggering a financial panic and resulted in the large contraction of the global economy. (Financial Crisis Inquiry Commission 2011, p. 417) In the early part of 2011, much of the world are still reeling from the financial crunch either recovering, rebuilding or are still in its clutches . The United States is still currently struggling, barely posting positive growth. The legacy of the 2008 financial crisis is undeniable, the current global financial system - its risk-based regulatory framework lacks a kind of efficiency and authority to check each and every element of the financial crisis as we watch them happen helplessly. This should already prompt us to questions existing frameworks and conventions such as the Basel II and the existing risk-based regulatory framework that govern the world financial systems. The Problem with Basel II The second installment to the Basel Accords, Basel II is a compendium of recommendations on banking laws and regulations drafted and implemented by the Basel Committee on Banking Supervision. Basel II is supposed to be a mechanism that would prevent crisis such as what was experienced in 2008 from happening. The idea is to setup an international standard or best practices benchmarks that financial regulators could use in their policy- and decision-making. The standard is anchored on the establishment of risk and capital mana gement requirements that would supposedly force banks to maintain capital reserves according to the risks that a financial institution is exposed to as a result of its banking practices. The problem, wrote Padmalatha (2011), is that Basel II is a quantum leap from Basel I and that those tasked to implement and promote its standards were not ready and skilled, making Basel II problematic for regulators and banks themselves. An important argument is the Basel Committees own admission that risk based capital requirements - a fundamental element of Basel II - could inevitably lead to procyclicality, typified by how banks lend more due to an upbeat economy. Padmalatha stressed that "when business cycles take a downturn, banks downgrade the borrowers due to increased likelihood