Child Trafficking Essay

A child is a young human being who is not yet an adult. It also defines trafficking as an act of buying and selling things illegally. So, child trafficking is an inhuman act where children are being used unjustly as objects of business transaction. Boys and girls are involved but girls are mostly involved as victims. They are taken from their parents by the trafficker who with deceitful words promises the girl’s parent’s heaven and earth for instance that she will send them to school or that she has a business in abroad like a saloon where the girls can work for few months and establish theirs. Parents who are living in the villages are the ones they use to go to, because most of them are unable to afford both material and financial needs of all their children. Such parents have no alternative than giving out their childchildren who maybe in their teens to the lady who pretended to be good. Despite all these government can still work on this heavily by the following: Firstly, government should declare free education in every school that is the school owned by the government maybe to the secondary school level. By so doing, parents will not have the excuse of giving out their children to someone else to take care of them. Secondly, government should see to duly paying of workers’ salaries at the end of each month and not leaving them empty handed at the end of the month because they need money to solve the problems facing them in the family and also to prevent them from exposing their children to those heartless human beings that use children illegally to make money. The last but not the least is that the parliamentary arm of government should sit together with the support of the president, make laws for children against abuse and intimidation. Also the judiciary arm should be strict in punishing anybody found exhibiting the act of child trafficking

North Country

The North Country deals with the problem of sexual harassment faced by women workers in steel mine in northern Minnesota. The sexual harassment is not just by their male co-workers, but by the whole community that consists of the mine workers and their families. In doing so, it emphasizes a key fact such acts of gender-prejudice is not perpetrated by men alone, but are perpetrated by the society as a whole. Centuries of marginalization of women are viciously rationalized by one simple sentence by Sissy Spacek's character, â€Å"kids are your purpose, and the father brings home the money†. Josey Aimes, played by Charlize Theron, flees an abusive relationship, with two kids in tow, to move in with her parents. She tries out odd-jobs before somebody mentions that she could make six times as much by working in the steel mine. Her father, who has worked in the mine for the majority of his life, is not pleased with Josey's decision for him women just don't do such things. To start off, she is subjected to a far more intrusive medical exam than one would expect. Then, the torture begins; few outrageous acts passed off as fun, some explicit comments, actions, and some implicit gestures. All aimed at sending one message, women have no business doing a man's job. The women respond to these circumstances with whatever means accessible to them. But most of the recourses are fruitless, and taking a tremendous step might put their jobs at risk. The movie deals with the different facets of this problem in the most convincing of ways. The filmmakers are very ambitious in diving into the depths of this problem. This ambition almost derails the movie in the final act. While any woman in the present day could tell her own story of how sexual discrimination still exists, the world into which Josie entered was so abusive that one could only imagine it happening in a prison (Denny Wayman and Hal Conklin). For the women of this Minnesota mine, every day turned out to be an emotional and physical lockdown: feces smeared on the women’s lockers, direct rape attempts on the job, and continual jeers from the male miners made daily life a death sentence. The part of women in the workplace was a world of difference only 30 years ago. The TV images of Lucile Ball as the ditzy housewife who always deferred to her husband’s proficient ability to be the â€Å"bread winner† have given way to CSI Miami images of woman prosecutors extremely solving mystery cases week after week. What is most significant is that we never take for granted the sacrifice that was made. Unless we teach each new generation regarding the freedoms we have gained, we are always in danger of caving into our most sinful nature of greed, avarice, fear, and pride. REFERENCE Denny Wayman and Hal Conklin. North Country Stars – Profound.   

Video games may make children fat

Children have been gaining weight excessively over the last 20 years. In 1980 6.5% of the children aged 6 to 11 were obese, but by 1994 that number had climbed to 11.3%. Currently over 30% of children are overweight, while 17% are considered obese (Parker-Pope, 2008). What has caused this epidemic like increase in child obesity? There are many proposed causes that have been linked to child obesity. However, if we examine children’s lifestyles over the last 25 years it appears that video games may be the primary contributing factor to the increase in weight and obesity rates amongst children When video games were first introduced to family households they were considered just another form of entertainment for children, not unlike radios, record players, or televisions. However, video games have evolved into media traps that promote sedentary lifestyles. Children now sit glued for hours to video screens rather than performing physical activities. In a study researchers from the University Hospital of Zurich present a strong association between playing video games and obesity in school-aged Swiss children (Edell, 2004). Their research supported the notion that when children are preoccupied with playing video games, they are not performing physical activity consistent with a healthy lifestyle. Playing video games is a sedentary activity that has a direct affect on weight gain in children. Some believe that video games have little impact on child obesity rates because children today are more aware and independent than previous generations. As a result, children are more conscious of their lives and are able to make healthy choices regarding exercise and video game playing. However, video games have developed from simple pixels and basic animation to the advanced life like games we see today. The advances in technology have made it difficult for children to stay away from video games, and some researchers believe it has psychological and addictive qualities. These powerful qualities make it difficult for children to monitor the amount of time they spend playing video games. In addition, children may also find it difficult to pull themselves away from video games in exchange for healthier physical activities. Dr. Mark Griffiths of Nottingham Trent University, an expert on video game addiction, believes that the games of the 21st century may be more psychologically rewarding then the games of the early 1980s (BBC news, 2000). Subsequently, children may not feel fulfilled until they reach the next level of the game, or beat a high score. The addictive qualities of video games were revealed in a recent study of children in their early teens. The study revealed that one third played video games daily, and 7% played for at least 30 hours a week (BBC news, 2000). Video games are able to capture children’s minds and start the path to poor health at extremely young ages. Dr. Griffiths suggests that children as early as the age of seven are drawn to video games. The strong addictive qualities of video games may prevent a child from exercising and being active even if they wanted to. It may be easy to argue that the television is the culprit for overweight children. However, televisions have been in North American households for over 65 years, but the increase in child obesity has occurred within the previous 25 years. Televisions have remained relatively unchanged, but the video game has mutated into an interactive child magnet. Children are able to play on line, play with multiple players, and interact with gamers globally. Today’s video games are also portable, recordable, and are easily rented. In addition, video game advertising is focused at luring and capturing a child’s impressionable mind. Some studies corroborate the findings that video games, not television, are associated with overweight children. Researchers at the University of Texas surveyed almost 3000 children and found that children who played video games were more likely to be overweight than children who only watched television and didn’t play video games (Levin, 2004). Al though, televisions have made some technological advancements it appears the attraction to video games may have lead to the weight increase in children. It was not long ago when children’s laughter echoed from playgrounds and the announcement of â€Å"car† was heard from children racing to clear hockey nets from neighbourhood streets. Rather than playing on the streets and schoolyards children now lock themselves indoors playing video games. Some suggest that it is the lack of programs and green space that prevent children from being active. However, physical fitness, health, and sport have never been so accessible. Private enterprise and governments have joined forces realizing the importance of moving children from behind the video screen to the field. In addition, building developers work with city planners to ensure that housing designs represent communities with playgrounds and schools rather than concrete mazes. An excellent example of the private sector promoting fitness rather than video gaming is the Canadian Tire Jump Start Initiative (City of Hamilton, 2005). This private program, like many others, encourages fitness by providing children and youth with access to sports and recreation. In addition, government programs such as the provincially funded Communities in Action Fund provide after school programs and sport clinics to youth. The possibility of physical activity is all around us, but video games have made it difficult for children to see outside their locked doors. Of course, it may be easy to blame the fast food industry for the weight increase in children. Fast food restaurants have been in our communities prior to the 1950s, while the most recognizable fast food restaurant, McDonalds, has been in business since 1960. However, the weight increase appears to be steadily increasing within the previous 25 years; consistent with the introduction of video games rather than hamburgers. Interestingly, fast food restaurants have gone through enormous strides to provide healthy menu alternatives such as: soups, salads, lean sandwiches, fruits, and juices. Burger King for example, offers products for children that are consistent with healthy dietary choices, limiting calories, fats, and sugar in their children’s menu (Bissonnette, 2007). Blaming the restaurant industry for the weight increase may appear obvious, but upon a closer inspection it seems restaurants have done more to promote healthy weight in children than the video game industry. Most of the research measures any correlation between increases in video game playing compared to increases in weight. What would happen if video game playing was reduced? Recent research at the University of Buffalo measured the effects of limiting video game playing (University of Buffalo, 2008). The university experiment was conducted over a 2 year period and revealed that when children restricted their video game playing by an average of 17.5 hours per week they lowered their body mass index significantly. In other words, they lost weight. In summary, this topic will initiate many theories and possibilities, but there is no arguing that children’s weights have been steadily increasing over the last 20 years. When we examine children’s lifestyles and habits it appears video games may be the primary contributing factor for the weight increase. Reference http://news.bbc.co.uk/1/hi/uk/1036088.stm http://www.healthcentral.com/drdean/408/60891.html http://www.buffalo.edu/news/9197

The 2011 earthquake in Japan Essay Example | Topics and Well Written Essays - 1250 words

The 2011 earthquake in Japan - Essay Example The 2011 Earthquake in Japan. Cause of the Earthquake. In March11, 2011, a destructive earthquake measuring 9.0 on the Richter scale struck Japan. The epicenter of the quake was near the East coast of Honshu, which was at a depth of 24.4 kilometers. According to Aislinn (2011), the movement along the two main plate boundaries caused the earthquake. Honshu Island is situated at the junction of three continental plates, the Pacific, Philippine, and Eurasian Sea plates. Earthquakes are generated by the tectonic plates that build up the surface of earth through bending, snagging, or breaking of these plates as they move past one another. Alexandra notes that thrust faulting caused the March 2011 earthquake; in thrust faulting, rocks positioned in the lower layer of the earth’s crust get pushed above the overlying layers. These faults occurred on or near the interface plate boundary between the North America and Pacific plates (Alexandra, 2011). This occurred near or along the boun dary where the Pacific Plate moves under Japan. The rate of convergence in the Pacific Plate’s border near Japan is much higher than in other zones. The Pacific plate thrusts beneath Japan at the Japan Trench, and plunges to the west underneath Eurasia; these plates are rocky and they creep past each other at a slow rate. The Pacific plate moves at a velocity of 3.2 inches per year westwards towards the North America plate. As the two plates shift past one another, they release seismic pressure and energy which cause earthquakes (Aislinn, 2011). Japan is situated in a place known as the Ring of Fire; this place experiences most active volcanoes. The Pacific Basin, which holds Japan, has oceanic trenches and experiences volcanoes around it. These volcanoes and oceanic trenches contribute to occurrence of earthquakes in Japan. Damages of the Earthquake. Alexandra (2011) notes that earthquakes that occur under the sea floor unleash tsunamis; these tsunamis are more devastating t han the earthquake itself. Violent movement of the earth’s crust displaces enormous quantities of water; these waves are known as tsunamis. Massive fires, generated by the earthquake, were blazing out of control leading to death, injuries, and the destruction of property. The quake left hundreds of people injured, dead or missing; it killed over 9,000 people. Tsunami wave destroyed power lines and swept homes, cars, ships, boats, trains, and massive islands of debris out to the ocean. Over four million buildings in Tokyo and its suburbs had no power after the quake. Reports indicated cases of landslides and collapse of buildings in several locations along the 2,100 kilometer stretch of coastline. Muddy water waves flowed over farmland near Sendai carrying buildings. Burst of gas pipes led to burning of houses and destruction of properties. Runways of the Sendai airport became inundated with trucks, buses, cars, and thick mud. Debris blocked the roads, and the communications s ystems, including the destruction of telephone lines. There was the suspension of train services in Tokyo and northeastern Japan, which serves around ten million people a day. The quake destroyed nuclear facilities located north of Tokyo. The government of Japan estimated the damage of the quake at $309 billion which was much higher compared to damage caused by the Hurricane Katrina in America. Effects of the Earthquak

WK 3 Final Project Matrix Essay Example | Topics and Well Written Essays - 250 words

WK 3 Final Project Matrix - Essay Example ich can be offered in classrooms by specialized teaches, early intervention specifically by parents via use of direct and brief commands and positive attention to the behavior of the child (Rosenberg et al, 2007). This is a condition that exhibits an inability for learning unexplainable by sensory, intellectual, or health factors, inability to sustain, even build, relationships with teachers or peers, inappropriate feelings or behaviors in normal circumstances, and a tendency for the development of fears or physical symptoms associated with learning institutions (Rosenberg et al, 2007). There are two types of classification systems: clinically and statistically derived. Statistical system uses the individual’s level of difference in frequency and rate as compared to their normative samples extracted from the same population as the subject, while clinical systems utilize diagnostic and descriptive criteria associated with communication and physical disorders (Rosenberg et al, 2007). Behavioral characteristics include increased aggression such as abusive, violent, and destructive behavior, breaking of rules wt the belief that boundaries are not applicable to them, non-compliance with requests or instructions which disrupts social and academic development, social withdrawal including excessive solitary play, low verbalization rates and infrequent interaction with peers, anxiety of a severe kind and depression (Rosenberg et al, 2007). The prevalence of this disorder in the US accounts for approximately 0.73%. African Americans are 1.7% more likely to suffer from it than Native Americans are. Sufferers are also more likely to come from poor, single parent households, more likely to be boys, and are more likely to change schools often (Rosenberg et al, 2007). These include service delivery, for example, individualization, support, and monitoring, early intervention that includes developing programs with developmental timing, program intensity, direct instruction

Shopster Case Study Example | Topics and Well Written Essays - 250 words

Shopster - Case Study Example The retailers make this business to be what it is. They form the customer base, thus making the business to be vibrant. The customer base is the single most important entity in the business. Thus, retailers sustain the business by shopping for products online, hence boosting the capital base of the business. Retailers also help in reaching other customers who with time get to know this online business entity. The strength of this business entity is that it does not face a lot of competition from other businesses. This makes it capitalize on sales in the absence of other business entities. The business also uses less capital to operate, thus being able to maximize on profits. The business should be able to perfect their businesses through proper and serious marketing. Through marketing, the business becomes well known thus it does not struggle to have customers come on board. Branding should also be done to make the business more unique and versatile. This should not only be on the products, but also on the online

Political Science - Politics in Quebec (Canada) Research Paper

Political Science - Politics in Quebec (Canada) - Research Paper Example Cultural globalization refers to the emergence of a combination of values and beliefs even across the world. Globalization is associated with a clash of ideas, lifestyles, and identities, as well as enhanced interdependence within the international community. The amplification of international migration and advancement of technology has led to an increased ethnic and cultural diversification of societies. Canada hosts a constantly increasingly number of immigrants, majority of who originate in cultural1 environments that do not share similar values with the host society (Di Sciulo 2011, p. 28).1 The pressure of globalization on language and culture has triggered a remarkable range of research and analysis. This is certainly true in Canada where scholars and policy makers have long been anxious on the impact of globalization on local culture and language. The problem has aroused keen interest, especially owing to Canada’s geographical and cultural proximity to the U.S., the world’s biggest exporter of cultural products, as well as Canada’s internal division of twin population, French and English. Of recent, issues 2of globalization, ethnicity, and politics of identity have been dominant in Canada, especially in the region of Quebec. Most inhabitants of Quebec have raised concerns on the effects that cultural homogenization could have on Quebec’s distinct culture and language (Fletcher 1998, p. 360). 2 Most Quebeckers are fearful that increased globalization will lead to language loss or language shift together with their cherished cultural heritage. Language shift in this case refers to circumstances in which speech communities witness gradual displacement of a certain language by another. The language question in Quebec has constantly aroused mixed feelings of anxiety and passion enveloping maintenance of cultural and linguistic diversity. Language

Plato's design systems that reduce the apparent irregularities in the Essay - 2

Plato's design systems that reduce the apparent irregularities in the motions of the planets to regular motions in perfectly regular cicles - Essay Example But it is very difficult to let go of traditional beliefs and very often people cannot recognize anything that is not correct scientifically or morally. â€Å"In The Sleepwalkers, Koestler traced what he thought to be the mainstream of the development of science through exquisitely researched and written biographies of some of sciences leading figures.† (Adler) Plato writes in his book ‘Republic’ that stars form a section of the ‘visible world’ which it not real or actual world. While being very beautiful they are a ‘copy of the real world’. For Plato real world is the ‘world of ideas’. He would rather study the stars in abstract than find about their rotation and revolution. Only by paying full attention to the intellectual can we in actual understand and capture the essence of astronomy. Plato was a very prominent scientist till the last years of twelfth century. But he lost to Aristotle for two hundred years. Plato did make a comeback but both these scientists complemented each other. For Plato change goes hand in hand with deterioration and he describes the creation as â€Å" story of the successiveemergence ofeven lower and less worth forms of life†¦Ã¢â‚¬ the ladder which he climbs down starts from god to ‘the world of reality’ which is made up of ‘perfect form and ideas’. Then comes ‘the world of appearance’ that is a pale reproduction of the real world. Plato believes in the philosophy of decline and devolution rather than that of growth by ascent. To judge whether Platois sarcastic or is to be believed word for word or symbolically is very difficult. Plato hated change and looked down upon the idea of evolution and changeability. The middle ages echoed this along with its simultaneous desire for everlasting and unchanging flawlessness. The author is very critical of Plato and his view seems like a tunnel vision phenomena, but he feels that this is ‘what he came to mean to a long row of future generations- the one sided

Operations And Supply Chain Management Essay Example | Topics and Well Written Essays - 1500 words

Operations And Supply Chain Management - Essay Example Sydney is one of the most famous metropolitan, multi-ethnic, and cosmopolitan cities in Australia that comes under the location in the southeast portion of Australia. Moreover, it is considered one of the largest cities in Australia with a population of more than four million residents, which has also been popular for being a vivacious, dynamic, and lively city. It is a very diverse city with respect to its population where people of Australian, English, Scottish, Irish, and Chinese heritage are the usual inhabitants. Moreover, people from various other countries such as United Kingdom, Italy, New Zealand, Philippines and few other are also migrated and live as the natives of Sydney.The topography of Sydney, Australia reveals the truth that locality comes under the surrounding by several national parks, coastal regions that incorporate rivers, bays, and beaches. Furthermore, it has also involved itself in sports activities and events and hosted quite a few out of them. The climatic c onditions of Sydney demonstrate the fact that it usually has a moderate and self-controlled climate with warm summers and mild winters; however, the city experiences the rainfall all over the year (Robinson & Bachman, 2000).One of the leading and vital reasons to open up the chain of hypermarket in Sydney is due to the reason that it has come under-recognition in the world rankings for its economic innovations. Moreover, Sydney contributes a huge proportion of the total GDP of the country. According to the statistics, Sydney has also gained the reputation as a worldwide center for commerce, arts, culture, music, and quite a few other aspects. Sydney has become a hub for the multinational corporations and top organizations including banks and shopping malls. Moreover, Sydney has become a place with major worldwide brand name labels (Australian Bureau of Statistics, 2000). Therefore, it can come to the conclusion that the cream of the crop people is mainly the residents of Sydney. According to the information and facts of Sydney, it is significantly one of the most expensive cities in the world with a very high cost of living. However, this is one of the crucial reasons

Assessments instead of online discussions and seminar Essay

Assessments instead of online discussions and seminar - Essay Example The purpose of an industry analysis is to assist an industry’s management to create and maintain a competitive advantage that helps a company to prosper in the market. Industry analysis needs to understand the structure of an industry and its attractiveness because it determines the profitability of a business (Hill and Jones, 2010:41). The level of industry profitability is not random but it rather has a systematic influence of the Industry’s structure, which eventually determines the entry and exit barrier. This paper will analyze the industry analysis applied to different industries in European markets (1) - Industry Analysis Analysis of five forces using UK Airline industry as our case study Porter arguers that there are five forces that determines an industry’s competitiveness that may change over time as the industry conditions change. These forces are entry threats, rivalry from existing competitors, threat of substitution, bargaining power of suppliers an d the bargaining power of buyers (Porter, 2008:6). This paper will outline the five forces that the European airline industry put into practice. Competitive rivalry (European airline industry) Competitive rivalry will be the first force to analyze. The purpose of competitive rivalry is to assess the rate of competition within an industry (Porter, 2008:29). Airline industry’s is among the prominent industries globally that exist in an intensive competitive market. In Europe, the top three airlines are Air France, Lufthansa, KLM and British Airways. These airline companies compete against each other for the same customers through prices, technology, in-flight entertainment customer service and other services (Rothkopf, 2009:213). Entrants’ threat New entrants invade the existing market and bring competition and changes in the market environment. The cause of new entrants is the profitability in certain industries, which in turn attracts other businesses who intend to joi n the industry (Porter, 2008:7). European air industry has improved tremendously which has led to attraction to new entrants; however, the cost of entry is becoming higher. The required capital for an airline entering the industry is quite expensive. Competitive substitute The products and services provided in a particular industry usually have the same substitutes elsewhere. This substitute products and services pose a threat because they limit the ability of a firm and their prices (Porter, 2008:25). In our case, the main substitutes that offer other forms of transport are road, rail and marine. The distances between European destinations are relatively small, and people prefer other transport services. More so, the substitute means of transport tend to be cheaper than air transport. Additionally, environmental factors affect air travel because customers tend to see the environmental impacts of air travel as crucial disadvantage. These factors pose threats to the British airways i n the business market. Supplier bargaining power Bargaining power is the ability to influence setting of prices because it assesses the ease of suppliers to hike prices (Porter, 2008:26). Suppliers can influence the profitability of a firm by exerting pressure for both higher and lower prices. The airline industry have little control over the rising fuel prices because there is no alternative source of fuel so far hence leading to the strength of supplier power (Porter,

Annotated Bibliography Example | Topics and Well Written Essays - 500 words

Annotated Bibliography Example The discriminatory HR policies caused conflict between the two groups, eventually reducing the productivity, whereas favorable policies that encouraged friendly interactions between the local workers and the expatriates, such as buddy systems, greatly enhanced the relationship between the two groups and provided the expatriates with the necessary emotional support in a new country. The reading also reveals that unequal treatment of different groups of workers caused discord, and this feeling of inequality is dependant more on cultural factors and role in decision making rather than differences in pay packages. Practical Implications: The reading implicated that many cross-cultural differences that are usually ignored while making policies, have a significant effect on expatriate-local relationships such as cultural conflicts between two different groups that speak the same language. The reading strongly suggests that significant attention should be paid to the local staff while dealing with expatriates and that the opinions of the local staff are ignored by most of the current HR policies. The reading also points out the importance of considering the social and people skills of the candidates while selecting employees for offshore missions. Value to Reader: The main objective of the reading is to note the need of updating the current expatriate policies. Nowadays, most of the local workforce for the western companies has the same skill levels as the expatriates and any measure of them being treated unequally by the management will have a negative impact on the motivation of the staff and hence the productivity of the company. The local staff needs to be treated more as an asset as they are more knowledgeable regarding the culture of their home country and possess contacts that could help the parent companies. Additionally, local employees need to be prepared for the incoming expatriates as favorable interactions,

Tyranny of Teams Essay Example for Free

Tyranny of Teams Essay Some alternative perspectives on team behaviour elucidate the ways in which the prevailing paradigm ultimately hinders groups and tyrannizes the individual team member mdash; by camouflaging coercion and conflict with the appearance of consultation and cohesion. Examination of the limits and effects of the ideology provide the basis for an alternative understanding of the strengths, constraints and complexities of group work. Introduction Teams in various forms have become ubiquitous ways of working. As task forces, committees, work groups and quality circles, they are used to provide leadership, accomplish research, maximize creativity and operationalize structural flexibility (Peters and Waterman 1982; Payne The 1988) . prescriptions of much contemporary management thinking are based on a dominant ideology of teamwork. While teams have been narrowly construed as a tool of the Organization Development Model, the ideology is much more pervasive. Teams are embraced as tools of diverse models of organizational reform from organization development (Dunphy 1976) to work restructuring (Poza and Markus 1980), from quality management to industrial democracy and from corporate culture and Japanese management approaches to complex contingency prescriptions. 611 Beliefs about the benefits of teams occupy a central and unquestioned place in organizational reform. It is all the more surprising that, despite some differences in context, the team ideology has been espoused with such consistency. The hegemony of this ideology has been supported by researchers who offer the ’team’ as a tantalizingly simple solution to some of the intracDownloaded from http://oss. sagepub. com at Massey University Library on June 28, 2010 612 problems of organizational life. Teams appear to satisfy everything individual needs (for sociability, self-actualization, participative management), organizational needs (for productivity, organizational development, effectiveness) and even society’s needs for alleviating the malaise of alienation and other by-products of modern industrial society (Johnson and Johnson 1987). However, do work groups deserve the status they have acquired as multipurpose panaceas for organizational problems? As has been powerfully argued in organizational analysis (Burrell and Morgan 1979; Astley and Van de Ven 1983; Reed 1985; Alvesson 1987), the dominance of a particular paradigm has substantial costs in the institutionalization of table at once: mechanisms of control. The purpose of this article is to scrutinize the ideological basis of the prevailing team paradigm. Four sets of assumptions which underpin the ideology are identified: 1. Narrowly conceived definitions of work groups and group work are based on the assumption that mature teams are task-oriented, and have successfully minimized corruption by other group impulses. 2. It is an individual motivation formula and a ’unitary view’ of organizations which assumes confluence, not conflict, between individual, group and organizational goals (Burrell and Morgan 1979: 204). 3. Simplistic views of the superiority of participative leaders are held. 4. The views are also held that power, conflict and emotion are subversive forces which divert groups from work. Research from some alternative critical, psychoanalytic and other perspectives is used to suggest some areas in which the paradigm requires overhaul. A premise of this paper is that teams can contribute to getting work of all kinds done, but not when their application is informed by a narrow framework that nurtures inappropriate expectations. Further, and more critically, the team ideology embraced by these assumptions tyrannizes because, under the banner of benefits to all, teams are frequently used to camouflage coercion under the pretence of maintaining cohesion; conceal conflict under the guise of consensus; convert conformity into a semblance of creativity; give unilateral decisions a co-determinist seal of approval; delay action in the supposed interests of consultation; legitimize lack of leadership; and disguise expedient arguments and personal agendas. Definitions of Teams and Group Work theorists have defined a ’team’ as a distinctive class of which is more task-oriented than other groups, and which has a set group, of obvious rules and rewards for its members (Adair 1986). According to this view, high-performing teams substitute collective goals and an inter- Management Downloaded from http://oss. sagepub. com at Massey University Library on June 28, 2010 613 est in the task at hand for individual agendas and inter-personal conflicts. Group theorists have noted the parallels between therapeutic groups and other types of work groups (Foulkes 1964: 110). However, the emphasis of team ideology on the task-orientation of teams has tended to idealize and resist recognizing that groups with a task still experience anti-task behaviour, and indeed have much in common with other types of groups. Seeking to understand both individual and group work, researchers have, on the whole, been dogged by the search for discrete or measurable outputs of work. Work has many forms. Some definitions of individual ’performance’ and ’effectiveness’ in administrative and managerial (Likert 1967; Sorenson 1971) with creativity and innovation in research or scientific contexts (Gordon 1961; Sch6n 1963), yet such experimental measures often seem to bear little resemblance to individual experiences of work (Terkel 1974) . Efforts to define group work by researchers in the team ideology tradition have produced a range of measures referring either to the output or to the quality of group process.

The History Of Parenting Programmes Children And Young People Essay

The History Of Parenting Programmes Children And Young People Essay Education is a giant step forward to achieving sustainability. Education for sustainable development encompasses the three areas: the environment, society and the economy (Pace, 2010). ESD is meant to inculcate ideals and values about key sustainable issues such as poverty reduction, environment protection, human rights, democracy, and so on. The basic concept of ESD entails helping people to develop the right attitude and knowledge to facilitate decision-making and create a better future for themselves and others (UNESCO, 2011). In this regard, Parenting Programmes might help to orient both parents and children towards this new mind set. Contrary to popular belief, education begins at home. This is why parents should be the primary targets. Parsons (1959), states that the family is bounded by two irreducible functions which are the primary socialization of children and stabilization of adult personalities (Haralambos and Holborn, 2007). The quality of education a child receives will therefore be a determining factor to the type of adult he will develop into (Morawska et al, 2011). Dealing with a child is no easy task. However, very often parents tend to forget that the parent-child relationship is a two-way street. As a matter of fact, many parents lack the proper coping and communication skills to deal with conflict situations. There are several organizations, also known as Parenting Programmes, to assist parents to cope with emotional, behavioural and social problems in their children (Morawska et al, 2011). Research has indicated that children are very likely to face impaired educational development, adult mental health problems and even entry to crime, due to long-term consequences of these problems (Lindsay et al, 2008). Evidence indicates that Parenting Programmes have indeed contributed towards helping adults to better integrate their roles as parents. Some examples of these parenting programmes are the Incredible Years, Triple P and Strengthening Families, Strengthening Communities among others. The Parenting Early Intervention Pathfinder (PEIP) has shown great interest in the matter and funded 150 local authorities in England to deliver Parenting Programmes (Lindsay et al, 2008). The Incredible Years Programme in the USA dealt mostly with parents with children having conduct problems. The Triple P in Australia was based on a five-level intervention basis and was more beneficial for parents having mental health problems and relationship problems, therefore with children at risk. Home interventions were frequently required. Strengthening Families, Strengthening Communities was mainly designed for minority ethnic groups. Consequently, evidence indicated an increase in the level of activity, decrease in negative discipline and enhanced communication between parents and children (Lindsay et al, 2008). Education for Sustainable Development aims at creating better citizens of tomorrow. Parents, therefore, as primary agents of socialization should be able to grasp the concept of ESD, so that they can in turn pass it on to their children. However, this would be more effective if children were taught to adopt sustainable lifestyle since birth itself. Problem Statement Parenting programmes, termed as Ecoles des Parents in Mauritius, is a rather new concept. However, there are many existing policies and laws put into place by the Government to provide security and welfare for the children, and also Ministries such as The Ministry of Gender Equality, Child Development and Family Welfare and The Ministry of Education and Human Resources. There are many alarming issues that led to considering the need for such a programme. Firstly, the family, as an institution, doesnt stand as firmly as it did before, and with the increase in divorce rates, children often find themselves being brought up in broken homes. Moreover, degradation of family values has accentuated, and that adults are lesser involved in family activities but instead focus more on themselves. Juvenile Delinquency is yet another serious problem which is on the rise. This ranges from thefts, physical violence, and drug addiction to even rape. It is very common in households today, to see both parents working, sometimes even doing extra hours hence leaving a minimum amount of time to carry out family activities or simply have a conversation with the kids. Youngsters are nowadays lost in a virtual world, where social networks are the only means to communicate with what they call friends. Eventually, social life suffers and teenagers become virtual beings where face-to-face interactions are becoming more and more scarce. It is very important for parents to foster good relationships with their children. But parents cannot hope to do this when the child has already reached 16. This process starts right when the child is born. With so many problems on the rise, namely anti-social behaviour, juvenile delinquency, crime rate, teenage pregnancy, drug and alcohol abuse, we cant help but wonder: Have parents somehow failed to fulfill their roles? A pilot project was set up at La Valette, Bambous, which is actually a reconstituted village. Parents who attended the program were from poor regions of the island. The project Ecole des Parents was launched in October 2010 under the supervision of the Ministry of Gender Equality, Child Development and Family (Anon, 2010), and is focused towards helping parents to develop the necessary coping and communication skills to deal with their children and also to encourage group discussion between parents. Since the program has been introduced only recently, it is very difficult to get proper feedback about its effectiveness. Aims and Objectives Aims The aim of this study is to assess how the programme Ecole des Parents enhances the lifestyle of its participants and promotes sustainable development within the locality through education. Objectives The objectives of the study are listed below: To produce a comprehensive literature Review To assess how government promotes sustainable development through education To determine the need for parenting programmes To assess how Ecole des Parents has changed the lives of the participants To evaluate how Ecole des Parents eventually benefits the community To recommend measures which could improved the sustainability of the programme Research questions: What are the measures taken by the government to inculcate a sustainable lifestyle? Are parents failing to fulfil their roles? How far has the programme influenced family lives? What are the impacts of such programmes in the area where it has been implemented? What are the limitations of the programme and how we can tackle them? Flow of dissertation: Chapter 2: Literature Review In chapter 2, we will firstly be reviewing sociological perspectives on parenting support and education; we will then move on to an overview about existing parenting programmes and its effectiveness. We will then look at sustainable development and the importance given to education in achieving sustainability. Finally we will look at the Mauritian context, how and why Ecole des Parents was introduced. Chapter 3: Methodology In this chapter, we will identify what method can be best used to conduct our study, what are the variables which need to be taken into account while designing our questionnaire. We will elaborate about our sampling method and how data will be collected. Chapter 4: Results Discussion This chapter will include the analysis of our findings and a comprehensive discussion about the results obtained. Chapter 5: Conclusion and Recommendations Finally, we will conclude by summarising our findings and provide recommendations on how the programme can be improved. 2.0 Literature Review Sociological perspectives In order to explain the parent-child relationship, various theories have been used. Research has been conducted by dominant perspectives like social learning theory, attachment theory and parenting styles to understand parenting and the parent-child relationship (OConnor and Scott, 2007). The social learning theory is one of the most important models of the relationship between parents and children. Many theorists have used the social learning model in the way social conditions of parents may lead to poor child rearing. Robert Wahler (1965) conducted a programme which took into consideration the specific needs of lone mothers; he concluded that these mothers were more unpleasant with their children when others rejected them. A childs experience shapes his behaviour directly or indirectly. If the child is getting reward for his action, such as parental attention, he is most likely to repeat the behaviour while if the child is being punished, he is less likely to do the behaviour again. Attachment theorists have established parenting relationships according to ethology, cognitive psychology and control systems. John Bowlby was interested on detecting the nature, impact and function of the childs affiliation to his parent. This theory also focuses on important issues such as how far the relationship protects the child against harm and provides an emotional security. Baumrind studied four typologies linked with the outcome of children: authoritative, authoritarian, permissive and neglectful. Authoritative parents have children who were more decent and clever; those parents who were authoritarian, permissive and disengaged had lower results while authoritarian parents had the worst outcomes of the four child rearing types. As such, having an insight of what have been said by sociologists and psychologists about the influence of parental support on the education of their children will enable us to analyse how parenting programmes really enhance relationship between parents and children; family life; education success or failure and also their influence on society. In the next part we will be discussing about parenting programmes and its various aspects. Parenting Programmes Parenting is not a new concept, as many might believe. Society has had concerns about family life and childrens upbringing for very long. Unfortunately the realities of life at home, between parents and children, are not quite how we expect them to be. Parenting is undeniably an asset to shaping tomorrows adults, and through school the child is expected to grasp the concept of parenting and thus become model parents of the next generation (Jenkinson, 1995). The idea of School Parenting or Parenting Programs as it is known worldwide, might be the answer to the chaotic situation between parents and children. We should firstly circle the facts that led to considering the need for such a program. The generation gap has been increasing due to several factors over the years. To start with, the family, as an institution, doesnt stand as firmly as it did before. With the increase in divorce rates, children often find themselves being brought up in broken homes (Smith, 1970 1990). Moreover, U.S. Census data, shows that degradation of family values have accentuated since 1960, and that adults are lesser involved in family activities but instead focus more on themselves, leaving children to fend for themselves (Popenoe, 1993). Another serious issue to be considered is that of Juvenile Delinquency. Due to weak social relations, youngsters nowadays are more vulnerable to temptation. Statistical analysis reveals that the rate of crime among youngsters has increased ranging from theft, drug addiction to physical violence. However, sociologists believe that, these form part of the process of growing up and that such behaviours fade when adulthood is reached, for most. More importantly, it should be noted that, children who have received appropriate parental guidance, are less prone to engaging in such damaging activities (World Youth Report, 2003). With the advent of industrialization, both mothers and fathers have rushed to the big cities for jobs, supposedly for the betterment of the family and to secure the childrens future. Consequently, squeezing in between jobs and spending quality time with the kids have become a major challenge (Moen, 1989). The number of internet users, as at December 2011, was estimated to be 2, 267, 233, 742 (Internet World Stats, 2011). The internet, however, not only brought about positive changes to our lives, but also threats to our well-being. One such target nowadays is teenagers, who seem to associate more importance to virtual life than real life itself. Social networking sites are a means for youngsters to re-invent themselves by broadening their contacts. On the hand, research indicated narcissistic tendencies, health problems such as anxiety and depression, and alienation from social life through overuse of social networks. Parents are therefore advised to engage in as much social activities as possible with their children. They need to encourage dialogue and also monitor the teenagers ventures on social networking sites, so as not to create virtual teenagers (Rosen, 2011). A Childs socialization is crucial to determining what kind of individual he/she will eventually develop into. The socialization process is a means for the child to internalize appropriate norms, values and behaviours inculcated by the agents of socialization, namely the parents (Haralambos and Holborn, 2007). Therefore, parents as key agents should be given some kind of training so as to better understand what is really in the childs interest. After all, the relationship goes both ways, where mutual understanding is the core to establishing fruitful interactions for both parties. Types of parenting programmes Parenting Programs are one such incentive, where the central aim is to help parents gain insight to potential behavioural and emotional difficulties that children encounter (Morawska, et al, 2010). The Triple P-Positive Parenting Program is one such program, which starts with providing relevant information about parenting to parents, who are willing to cooperate. The Triple P-Positive Program operates on a five level basis, and comprises of parents of new born babies to 16 year old teens. Level 1 consists of helping parents to detect minor behavioural problems, and is directed towards promoting the childs development. Level 2 is mostly for parents with specific concerns about their child and they usually seek advice on how to tackle the problem. Level 3, is no different from level 2, but simply incorporates practice and self-evaluation sessions to deal with the problem in a more effective way. Level 4, however, gather parents whose children have more severe behaviour issues and may require health professionals. And finally level 5 includes home visits and intensive family interventions which are specific depending on the situation, for e.g. conflict between parents themselves, involving cases of depression (Sanders, et al, 2003). The Triple P-Positive Program also demands that parents abide by a set of principles. To start with, children need to feel safe and free to explore, experiment and play. Under no circumstance should parents hamper the healthy, natural development of a child. As primary agents of socialization, parents should educate their children and also be open for questions and dialogue. Discipline is important and punishment should have a limit. Parents should establish rules but should also consider childrens opinion. Parents should allow children the freedom to choose their own path to fulfil their dreams, rather than imposing their desires and expectations. Finally parents should respect themselves, and foster good communication with one another, so as to create a stable and healthy home (Sanders, et al, 2003). Other types of Parenting Programs include the Incredible Years and the Strengthening families strengthening communities Programs. The Incredible Years Program comprises of parents with children from 0 to 8 years. Like the Triple P program, Incredible Years help parents to gain better understanding of childrens behavioural problems. However, this program tackles the situation by encouraging parents to foster good relationships with one another, and by dealing with their own issues (Geoff Lindsay et al, 2011). The Strengthening Families Strengthening Communities (SFSC), most particularly deals with small ethnic groups, but still the primary concern being helping parents develop effective coping skills. However, the program also covers the cultural and spiritual aspects of society, for example engaging in community activities, following traditions, etc (Geoff Lindsay et al, 2011). Parenting Programs are alternatives geared towards helping parents develop effective coping and communication skills. Parents are also more aware of childrens side of the story, and thus can look for collective solutions to misunderstandings through dialogue. These may seem to be quite simple, but the truth is many adults do not know their roles as parents, and how to tackle conflicts. This is where Parenting Programs come into the picture. Thus, having proved the importance of such programmes to family, children and society, we will now look at the role the state plays in promoting parenting programs. The role of the state One of the main aims of the government is undoubtedly the safety of the citizens. The state should cater for the physical safety of children and social crime prevention, i.e. ways to promote adequate child rearing and decrease the risk delinquency in children. It may be considered right to link it to aspects of communitarians as a reinforced community and family relations help to form a safety network that a society deprived of its ties cannot offer. Safety of the citizens is probably the governments most important responsibility; however an economically stable and balanced community is also of high importance. Here providing education and welfare benefits, easing work and acting to support the family unit as an economic system are involved. Leaving the protective measures behind, other impacts on our expectations of the role of government should be taken into consideration. One of the most important is the Christohumanistic tradition that has guided the state and welfare organizations since years. Societies depend on shared values. Shared values are passed on through children. Values wont be passed on from one generation to the next unless they are reinforced by the parent child relationship. So parenting is a public as well as intensely private act. Hence societys interest is in the parent-child relationship. Families are crucial to the survival and development of shared values. (Straw, 2000) The governments contribution to supporting a rights perspective is obvious in its introduction of the European Convention on Human Rights into UK law. There has been an effort to attain sexual parity at work furthermore there has been the promotion of a childs perspective by setting up the Children and Young Peoples Unit and effort to improve children participation in the service development. Societal trends have shifted the state beyond preserving physical and financial safety to human centred, charitable caring and most importantly an increasingly modified and rights orientated relationship with families. Nowadays both parents and government are facing problems of having to regulate morality while having to abide an era of democratized relationships. Review of parenting programmes According to a study, by Roger Grimshaw and Christine McGuire (1998), group-based parenting programmes had a low public profile. Many parents found it interesting however they found it difficult to attend. Some thought that attending such a programme would mean being a bad parent. Those who were willing participate wished to go on a programme before their child turned 3 years old (Grimshaw and McGuire, 1998). Around half of the parents who attended rated the advice helpful while the rest found it less interesting and an eighth found that it was not a good thing. Those parents who attended the parenting schooling were quite happy with it. Concerning the style of the programme, parents found it important that the leader should be a parent. Instead of being told about what to do, they wanted to have options from which they could choose. Both parents and organizations thought that programmes should lead to: benefits arising from group support, for instance a supportive network of friends; a better relationship with the children; greater information on issues such as child health and development; and emotional benefits. The managers who set up the programmes and the coordinator had some common aims. However, managers were more prone to distinguish strategic objectives for the courses, for instance community development. Coordinators were more likely to get involved in the aims that had impacts on individual participants, like a rise in confidence. Children who were interviewed had lucid perception of the responsibilities that parents had in protecting, guiding and instilling discipline in them. Effectiveness of parenting programmes Parent education helps to improve caring and positive child rearing which is crucial in creating a good atmosphere for children. The risk of child abuse is more when parents do not possess the necessary abilities, back up and knowledge of child development. School parenting helps to increase the knowledge of parents on the development of children, to guide them in developing parenting abilities and make them familiar with the difficulties involved with child rearing. Parenting programmes takes place at different levels. For instance, community awareness strategies operate at the primary level; group training sessions and one-on-one programmes such as the triple P-Positive Parenting Programme operate at the secondary or tertiary level. However, all parenting programmes serve to increase parental knowledge and decrease stress. Parental schooling helps to reach these results by training parents behavioural management skills, ways to solve problems, and personal adaptation abilities. Parenting programmes are important aspects of dealing with families which are at risk. Recent audits evaluated that progress has been made in areas like preventing child maltreatment. Factors limiting the effectiveness of parent education There are various factors that can limit the effectiveness of parenting programmes. Parenting beliefs often unconscious are difficult to change; parents may make us of same ways of parenting even if they have come across new skills. Furthermore, courses which are not intensive do not have the desired impact on both children and parents. Parents who have psychological problems or a drug or alcohol addiction may have difficulties to grasp new skills and build better relationships; the parents own development needs may be an obstacle in being able to participate fully in the programme (Holzer et al., 2006). Cultural values, negative experiences with social service providers, language barriers, time commitment, scheduling issues, travel, and general lack of interest may reduce participation in parent education programs. Parental depression, drug or alcohol addiction, low level of education, domestic violence, marital conflict, remarriage, harsh punishment on children may decrease the effectiveness of parenting programmes. Moreover, parents with low education and low income are less likely to believe that the can control their childrens development. Also, parents that are hassled about their environment, for example violent neighbours may be less prone to gain from parent schooling (Solutions for America, n.d.). Limitations of parenting programmes Although parenting programmes have proved to be an effective measure to help adults become better parents and ensure a better inclusion of children in society, they have several limitations. One of the major disadvantages of parenting programmes is that it is discriminating in nature, for instance for a programme which is aiming at ensuring the welfare of the family, the children and society in general; research have shown that while delivering the course to families in risky groups the programmes are excluding families from other background who are facing difficult issues with their children (Lindsay et al., 2011). The second drawback, concerns ethnicity, some researches conducted in the United Kingdom have shown that attendance to parenting programmes vary greatly depending on the ethnicity of the parents (Patel et al., 2011). For example, the study conducted by Patel et al (2002) showed that out of eighty participants, 37.5% were white British, 18.8% were Pakistani, Asian and black British accounted each for 10% and other minority groups accounted for less than 10% each. Thirdly, the high level of drop out from the programmes is another limitation. According to Lindsay et al. (2011), there are 17%-19% of participants who quit the programme due to socioeconomic issue or other problems. Therefore, the programmes need to take into account motivational factors which will stimulate candidate to pursue the course till the end. Parenting programmes and sustainable development All parenting programs do one thing in common, that is, improving the lifestyle of its citizens by providing the right skills to the people in order to shapes the future of the youths and improves their quality of life. From this perspective, we can clearly see that the aim of parenting programmes is closely linked to the four pillars of sustainable development. For instance, by providing parents the required tools to become better guides for their children and improving their relationship, such programs are ensuring that the latter will become good citizens for the welfare of society. Secondly, parenting programmes enables the moulding of future wealth producers by ensuring that future generations have the required environment to grow up as respectable and responsible adults. Thirdly, through such programmes both children and parents learn to respect people different from them that is, from other culture, religion and so on; they also learn to be respectful towards their environment and manage resources accordingly for a better lifestyle. Sustainable development Sustainable development is a concept which has become popular during the 1970s and has been defined in various ways but the most recognised definition is from the Brundtland Report, (World Commission on Environment and Development, 1987) stating Sustainable Development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.. This definition highlights that when setting up new policies, governments need to take into account features such as, resources available, respect them and work towards protecting them so as to ensure that future generations could also benefit from them. The terms sustainability and sustainable development is sometimes used interchangeably and although they seem vague in nature, they in fact consist of three main components, namely economic prosperity, social justice and environmental protection (GoodPlanet.info, 2008). The economics aspect involves the creation of employment, increasing production, income and wealth for everyone; and using new technologies to attain these objectives. The social component means that everyone should have access to justice, healthcare, participation in social activities, education and so on. Finally, the environmental component comprises good resource management and conservation (The Encyclopedia of Earth, 2011). Since the year 2000s, culture has been added as a fourth pillar to sustainability. With globalisation, the world has become a global village, as such for development to occur; governments need to take into consideration cultural diversity. In addition, cultural sustainability also implies the protection of cultural values, arts and heritage (Nurse, 2006). Below is a picture illustrating the four pillars of sustainable development and what are their aims (Just Focus, 2009). Source: Just Focus, 2010, available at http://www.justfocus.org.nz/tag/education-and-training/ The concern about sustainable development started in 1962 with the publication of the book Silent Spring by Rachel Carson which provided an insight of the relationships between the environment, the economy and the social well-being of people (International Institute for Sustainable Development, 2002). However, sustainable development is said to have started with the declaration of human right in 1948 as it promoted universal rights for freedom of speech, belief and movement (Pesqueux, 2009). In addition, it is only in the 1970s that the concept gain popularity, with the focus being mainly on the environmental component due to the increase awareness about the depletion of our resources due to the growth of human population. This lead the creation of several movements such as Green Peace or Chipko movement in India; it lead to the organisation of several major conferences such as the United Nations Conference on Environment and Development in Rio de Janeiro in 1992, also known as the E arth Summit or the World Summit on Sustainable Development in Johannesburg in 2002 (Sustainable Development in Government, 2011). Several agreements were reached during the Earth Summit, under the Agenda 21, pertaining to programmes leading to sustainable development in the twenty-first century (One World, 2012). Since then, awareness about our resources has been on the rise resulting in the emergence of new managerial concepts and responsible business practices, for example Corporate Social Responsibility which was adopted by business after the Enron case but also with changes in legislation. Furthermore, in line with the Rio summit, the Millennium Summit in 2000 lead leaders around the world to adopt the United Nations Millennium Declaration which consist of eight diverse goals, including eradication of poverty; universal primary education; combat HIV/AIDS among others, to be achieved by 2015 (The Encyclopedia of Earth, 2011). Therefore, it can be seen that sustainability can achieved through better health, alleviation of poverty or access to education; this leads us to the United Nations Decade of Education for Sustainable Development which was proclaimed in 2002 as a programme which promote education as an indispensable element for achieving sustainable development (DESD, 2002). Education for sustainable development As said above, the Decade of Education for Sustainable Development, 2005-2014 was launched in 2002 by the United Nations. It is a programme which is under the supervision of the UNESCO and whose target is to provide quality education for all, inculcate values, beliefs and behaviour for a better and sustainable future (DESD, n.d). However, the concept of using education to achieve sustainability was introduced much before, for instance as Pace (2010) mentioned, during the Tbilisi Conference in 1977, environmental education was proposed as a framework for sustainability. Both frameworks are quite similar except that the environmental education was more focus on the preservation of our resources whereas the DESD is a global approach aiming at achieving various issues such as alleviating poverty or disaster risk reduction (UNESCO, n.d.). At the Rio

Currency Risk Management in Indian Banks

Currency Risk Management in Indian Banks EXECUTIVE SUMMARY The objective of the project is to study the attitude of Indian corporates towards currency risk management and the problems faced by the companies dealing with their currency exposure which occur as a result of exports or imports or both. The study has also included the problems faced by the banks, the authorised dealers of foreign exchange in India, in managing their forex (foreign exchange) market operation as it has large implication on the corporate currency exposure. Indian corporates have an attitude of staying away from the currency market. Companies consider hedging as unwanted cost centres. Periods of exchange rate stability bred complacency. Importers are confident that the Central banks shall intervene to halt any rupee decline where a exporters are of the view that rupee has always been over rated and that there is no way that it shall appreciate from the present value. These reason keep them away from hedging their exposures. Companies which are involved in hedging, go the conservative and orthodox way to hedge their exposure. Not a single company surveyed, take financial derivatives other than forward contracts as tool for hedging their exposure. This is mainly because of lack of awareness and experience. Many of the companies feel that the importance of currency risk management will increase, in coming years but very few of them are making themselves ready to face the situation. Banks that act as facilitators are also suffering from acute problems. Public sector banks, which control 75% of Indian forex market, have always been under staffed and governed by bureaucratic rules. The market for derivatives other than forward contracts is very shallow. Many of the banks reason it out to be as a result of corporate reluctance and lack of information and technology. Most of the banks in public sector do not merge the forex and money operation and they do not treat their forex operation as a separate profit centre. This bred inefficiency in their working which has affected the corporate sector. The corporates have been recommended to look strategically into their exposure and take prudent decision in hedging. This decision should be backed by professional treasurers, an efficient back office and good forecasting techniques. They have been asked to go in for various other derivatives that are flexible and cost effective. The banking sector has been recommended to recruit specialised personnel for the job with latest technology to deal in the market. They should start providing variety of other derivatives to the industry. They should also merge their money market and forex operation and treat is as a separate profit centre. These all measures will definitely make the forex market deep and vibrant, which will make the work easier for corporates in dealing with the currency exposure. 1. INTRODUCTION â€Å"We have to sleep with one eye open† Managing director of an Indian company with investments in Indonesia. This was in reference to the Indonesian rupiah crash which followed the nearly 100 percent, Thai currency plunge after the bahts free float last July with the Indonesian currency in downward spiral and interest rates shooting northwards, Indian companies with investment in South-east Asia are in the midst of the maelstrom and are desperately scrambling to get a grip of this unprecedented situation even as they wonder: what next? If only they could have got the wind of the disaster things would have been bit different for them. The spate of Southeast Asian currency plunge has sent warning signals to the developing economies to set their level in order to face crisis. Companies have to set their house in order and give a micro as well as macro look at the currency exposure which they are facing. With increase in volume of business in external sector, companies should make themselves tuned to the dynamics of foreign exchange (currency) market. 1.1 Currency RISK MANAGEMENT An asset or a liability or an expected future cash flow stream (whether certain or not) is said to be afflicted with currency risk when currency movement changes (for better or for worse) the home currency value. There is always a possibility of the exchange rate changing between the home and foreign currencies, interest rate differentials widening and inflationary effects amounting, to an adverse reaction for the expected cash flows . The concept of currency risk also emanates when an investor is planning to diversity his portfolio internationally to improve the risk- return trade off by taking advantage of the relative correlation among risks on assets of different countries. This involves investing in a variety of currencies whose relative values may fluctuate , it involves taking currency risks. The foreign exchange market is psychological in nature. A large number of transactions are speculative in nature which depends upon expectations of a large number of participants. People tend to hitch their expectations to one fundamental. For example, they might look at the money supply in the USA. The logic is that an increase in money supply will result in : Þ An increase in inflation Þ FED squeezing money Þ Interest rate rising Þ Dollar becoming more attractive for holding. But this event of money supply could also lead to a different series of outcomes an shown by the following logic. According to fisherman equation, Nominal rate = Real rate + Inflation rate. An increase in inflation would mean the interest rates would be higher. Higher interest rates on bond and equity prices would make them less lucrative and thus lead to a bearish effect. There would be a selling pressure on the dollar and hence the exchange rates would tend to move against the dollar. Dealings in foreign exchange market is said to be around $ 1000 billion each day. Out of this sizeable chunk of more than 75% is on speculative basis. And this speculation has been pointed out as major cause of the south Asian turmoil. Since the mid 1970s a potent mix of fast-interlocking market and a revolution in information technology has increased the speed, frequency and magnitude of price changes in the financial markets, which, in turn have multiplied both opportunity and risk for the CFO. Not, surprisingly, in the developed markets, much innovative energy has been devoted to devising instruments and mechanisms that enable CFO to survive this turbulence. While creative financial engineering has opened the floodgates for a deluge of products, two broad classes of risk management have evolved. The first deploys a natural hedge to manage exposure to risk. Typically, this means explicitly factoring in risk perceptions when choosing the components of the financing mix. Or, to neutralise exposures in a particular market, a natural hedge could involve taking a counter position in another market. The second class of tools however creates a synthetic hedge by utilising specific financial instruments. Notably, derivatives. 1.2 Problems in Indian foreign exchange market Our foreign exchange market suffers from several constraints. i) There are a lot of ceilings on open positions and gaps and hence there is a virtual absence of market making and position trading. ii) There is prohibition of initiating transactions in the cross currency in the overseas market. iii) Besides the forward contracts, there is no free access to the other products like futures, swaps, etc. The market lacks the required liquidity and depth for the derivatives to be economically viable. 2. Literature review 2.1 THE NATURE OF EXPOSURE AND RISK The value of a firms assets, liabilities and operating income vary continually in response to changes in economic and financial variables such as exchange rates, interest rates, inflation rates, relative prices and so forth. The impact of every financial decision on the value of the firm is uncertain and various options can be evaluated in terms of their risk return characteristics. The nature of uncertainty can be illustrated by a number of commonly encountered situations. An appreciation of the value of a foreign currency (or equivalently, a depreciation of the domestic currency)., increases the domestic currency value of a firms assets and liabilities denominated in the foreign currency receivable and payables, bank deposits and loans etc. It will also change domestic currency cash flows from exports and imports. An increase in interest rates reduces the market value of a portfolio of fixed rate bonds and may increase the cash outflow on account of interest payments. Acceleration in the rate of inflation may increase the value of unsold stocks, the revenue from future sales as well as the future costs of production. Thus the firm is â€Å"exposed† to uncertain changes in a number of variables in its environment. Let us begin with the definition of foreign exchange exposure. Foreign exchange (Currency) exposure is the sensitivity of the real value of a firms assets, liabilities or operating income, expressed in its functional currency, to unanticipated changes in exchange rates. Note the following important points about this definition. Values of assets, liabilities or operating income are to be denominated in the functional currency of the firm. This is the primary currency of the firm and in which its financial statements are published. For most firms it is the domestic currency of their country. Exposure is defined with respect to the real values i.e. values adjusted for inflation. While theoretically this is the correct way of assessing exposure, in practice due to the difficulty of dealing with an uncertain inflation rate this adjustment is often ignored i.e. exposure is estimated with reference to changes in nominal values. The definition stresses that only unanticipated changes in exchange rates are to be considered. The reason is that markets will have already made an allowance for anticipated changes in exchange rates. For instance, an exporter invoicing a foreign buyer in the buyer currency into the price. A lender will adjust the rate of interest charged on the loan to incorporate an allowance for the expected depreciation. From an operational point of view, the question is how do we separate a given change in exchange rate into its anticipated and unanticipated components since only the actual change is observable? One possible answer is to use the forward exchange rate as the exchange rate expected by the â€Å"market† to rule at the time the forward contract matures. Thus suppose that the price of a pound sterling in terms of rupees for immediate delivery (the called spot rate) is Rs. 60.000 while the one months forward rate is Rs. 60.20. We can say that the anticipated depreciation of th e rupee is 20 paise per pound in one month. If a month later, the spot rate turns out to be Rs. 60.30 there has been an unanticipated depreciation of 10 paise per pound. In contrast to exposure which is a measure of the response of value to exchange rate changes, foreign exchange risk is defined as. The variance of the real domestic currency value of assets, liabilities or operating income attribute to unanticipated changes in exchange rates. In other words, risk is a measure of the extent of variability in the values of assets etc. due to unanticipated changes in exchanges rates. 2.2 Classification of Foreign Exchange Exposure and Risk Three types of foreign exchange exposure and risk can be distinguished depending upon the nature of the exposed item and the purpose of exposure estimation. These are as follows. Transaction Exposure: This is a measure of the sensitivity of the home currency value of assets and liabilities which are denominated in foreign currency, to unanticipated changes in exchange rates, when the assets or liabilities are liquidated. Transaction exposure can arise in three ways: * A currency has to be converted in order to make or received payment for good s and services. * A currency has to be converted to repay a loan or make an interest payment (or, conversely, receive a repayment or an interest payments) or. * A currency has to be converted to make a dividend payment. Suppose a firm receives an export order. It fixes a price, manufactures the product, makes the shipment and gives 90 days credit to the buyer who will pay in his currency. A company has acquired a foreign currency receivable, which will be liquidated before the next balance sheet date. The exposure affects cash flows during the current accounting period. If the foreign currency has appreciated between the day the receivable was booked on the day the payment was received, the company makes exchange gain which may have tax implications. In a similar fashion, interest payments and principal repayments due during the accounting period create transaction exposure. Transaction risk can be defined as a measure of uncertainty y in the value of assets and liabilities when they are liquidated. Translation Exposure: Also called accounting Exposure is the exposure on assets and liabilities appearing in the balance sheet but yet to be liquidated. Translation risk is the related measure of variability. The key difference between transaction and translation exposure is that the former involves actual movement of cash while the latter has no direct effect on cash flows. (This is true only if there are no tax effects arising out of translation gains and losses). Translation exposure arises when a parent multinational company is required to consolidate a foreign subsidiarys statements from its functional currency into the parents home currency. Thus suppose an Indian company has a U.K subsidiary. At the beginning of the parents financial year the subsidiary has real estate, inventories and cash valued at pound 1,000,000, pound 200,000 pound 150,000 respectively. The spot rate is Rs. 60 per pound sterling. By the close of the financial year, these have changed to pound 1,200,000, pound 205000 and pound 160,000 respectively. However during the year, there has been a drastic depreciation of the pound to Rs. 56. If the parent is required to translate the subsidiarys balance sheet from pound sterling into rupees at the current exchange rate, it has â€Å"suffered† a translation loss. Note that no cash movement is involved since the subsidiary is not to be liquidated. Also note that there must have been a translation gain on the subsidiarys liabilities. There is broad agreement among theorists that translation losses and gains are only notional accounting losses and gains. The actual numbers will differ according to the accounting practices followed and depending upon the tax laws, there may or may not be tax implications and therefore real gains or losses. Accountants and corporate treasurers however do not fully accept this view. They argue that even though no cash losses or gains are involved, translation does affect the published financial statements and hence may affect market valuation of the parent companys stock. Whether investors indeed suffer from â€Å"translation illusion† is an empirical question. Some evidence from studies of the valuation of American multinationals seems to indicate that investors are quite aware of the notional character of these losses and gains and discount them in valuing the stock. for Indian multinational, translation exposure is a relatively less important consideration since the law doe s not require translation and consolidation of foreign subsidiaries financial statement s with those of the parent companies. Operating Exposure: Unanticipated exchange rate changes not only affect assets and liabilities but also have significant impact on future cash flows from operations. Operating Exposure is a measure of the sensitivity of future cash flow and profits of a firm to unanticipated exchange rate changes. Consider a firm that is involved in producing goods for export and or import substitutes. It may also import a part of its raw materials, components etc. A change in exchange rate (s) gives rise to a number of concerns for such a firm. 1. What will be the effect on sales volume if prices are maintained? If prices are changed? Should prices be changed? For instance, a firm exporting to a foreign market might benefit from reducing its foreign currency price to the foreign customers following an appreciation of the foreign currency. A firm that produces import substitutes may contemplate an increase in it domestic currency price to its domestic customers without hurting its sales. 2. Since a part of the inputs are imported, material costs will increase following a depreciation of the home currency. 3. Labour costs may also increase if cost of living increases and wages have to be raised. 4. Interest costs on working capital may rise if in response to depreciation the authorities resort to monetary tightening. In general, an exchange rate change will affect both future revenues as well as operating costs and hence the operating income. As we will see later, the net effect depends upon the complex interaction of exchange rate changes, relative inflation rates at home and abroad, price elasticities of export and import demand and supply and so forth. Operating exposure and the related risk are extremely difficult to analyse, estimate and hedge against. 2.3 THE INDIAN FOREX MARKET Indian foreign exchange market as compared with their American and European counterparts is till in its infants. The post liberalisation period has witnessed many exchange controls been lifted and introduction of few â€Å"hedging† tools like cross currency option, Range forwards, currency swaps etc. which provide a degree of flexibility to corporates in using the forex markets effectively. The Rupee has been made fully convertible on current account accepting the article VIII status laid down by IMF. This step has seen increased volume of trade in the Indian forex market. Tarapore committee has put the proposal for capital account convertibility. It proposes to deregulate the foreign exchange by year 2002 in three phases. 2.4 PRESENT STATUS Exchange control in India is administered by the Reserve Bank of India, which is empowered by the Foreign exchange regulation Act. The figure shows the players involved in the foreign exchange market from administrative point of view. Foreign Exchange Regulation Act, 1973 Govt. of India Reserve Bank of India Foreign Exchange Dealers Association of India Authorised Dealers Authorised Money Changers Full Fledged Restricted Administration of Foreign Exchange in India. The foreign exchange market in India functions with a three-tier structure which includes (1) Reserve Bank of India, at the apex level, (ii) authorised dealers/money changers conducting foreign exchange trading activities, and (iii) customers which include exporters/importer, corporates and other foreign exchange earners like NRIs etc. The market is highly influenced by State Bank of India and Reserve Bank of India because of their Sheer Size. The RBI constantly intervenes to keep the rupee from appreciating and is responsible for highly liquid spot market as it is a last resort buyer of dollars. The forward market in India is fairly liquid and quotes are easily available up to six months. The RBI prohibits any international speculative access to rupee. 2.5 SIZE AND DEPTH OF THE MARKET The daily turnover in the Indian Foreign exchange market is over US $400 million that is dominated by dealings in dollars. The foreign exchange reserve of $30 million provides the market with enough liquidity. 2.6 INDIAN EXCHANGE CONTROLS Exchange Controls refer to the regulation, restrictions, guidelines that a country issues with respect to foreign exchange transactions. In the absence of any exchange control one would expect to do anything with the foreign exchange reserves that the company has-convert to any other currency, speculate, buy or sell option, freely export foreign exchange etc. etc. In India, forward contract is the single largest product which the companies employ as a tool to manage their foreign exchange risks, though the cost has changed over the period of time. Before LERMS (liberalised exchange rate management system) importers rushed to book forward contracts expecting a devaluation of Re against US$. The cost was as high as 18% in Feb.92. The cost of the forward premium came down sharply reflecting a more stable foreign exchange markets. The Indian exchange market do not provide frequent quotations for ore than 6 months so for any long term forward cover rollover of the contract after every 6 months is needed. Rollover means cancellation of the old contract and re-booking of 6-month forward contract. Under this, care should be taken to cancel the old contract and re-book the next at the time when the cost of rebooking is least i.e. forward dollar is relatively cheap. Further, in December 1994, RBI has allowed the corporates to bet on the third currency movement even if one does not have an underlying transaction exposure in the â€Å"third currency†. This means that a corporate with an underlying exposure in Dollar-Re can bet on the Dm-Dollar rate and book a forward contract for Dm against Re and on the maturity may change Dm to Dollar at the spot rate. This has been allowed as Indian Re has been pegged with US$ and there has not been many fluctuations on which the companies could speculate. There can be other ways to take advantage of this RBI circular. Consider an importer with $ payable after 6 months. He may buy $ forward against Yen (third currency) and after 6 months may buy Yen against Rupee at the spot rate. This position may be taken if the company expects Yen to depreciate against the Dollar within these 6 months. Nevertheless the speculative attempts to earn profits may also backfire to give losses if the exchange rate moves in the opposite direction. RBI has also made it obligatory upon the banks, which extend the third currency cover, to maintain â€Å"initial† and â€Å"variation† margins before offering such a facility. This has been done to avoid any default risk. Another peculiar feature of ‘The Indian Exchange Control is that the â€Å"hedging† can be put through in case of transaction and translation exposures only. Economic exposures cannot be hedged. Cross Currency option was introduced on 1st Jan. 1994, under which companies could enter option contract for hedging non-dollar exposure against dollar. As for now Rupee option does not exist in India. Essar Gujarat has been one of the innovative corporates who discovered this new concept and has benefited considerably by writing option in Dm- Dollar in Jan 1994. Indian Exchange controls do not allow cancellation of cross currency options in parts and once the option is cancelled it cannot be re-booked, unlike forwards. In the overseas markets minimum lot traded is $ 3m whereas Indian corporate by for lesser amount, this increases the premium paid by them for the option. Recently, ANZ Grindlay has offered to arrange a loan of $ 50m to Ranbaxy by making effective use of call and put options to defend both the parties against unfavourable movements in exchange rates. Cross currency forward cover for importers who have taken $ loan for their imports but receive goods invoiced in say a Dm. They can enter forward cover for the delivery of Dm against the currency of loan i.e. -$. This is the cross currency forward cover. Some of the foreign Exchange controls are that export of foreign currency is not permitted, unless it has special RBI permission. â€Å"Exchange controls also they list the permitted currencyâ€Å" and a method of payment as approved by RBI for translation across the countries. It also contains guidelines relating to â€Å" Foreign currency assets† covering permission as for repatriation of capital profits dividends etc. Exchange controls also allow FC to be retained up 50% (in case of EOU EPZ units) and 25% (in case of ordinary exporters with banks in Indian and also abroad under EEFC a/c and FCA a/c. Exchange controls also state under-invoicing and over-invoicing of exports as a crime attracting penal provisions. Further, all sale proceeds in FC should come into the country within 180 days. RBI permission is required for any extension beyond 180 days. In case of failure to get RBIs nod, the tax and other export incentives are not provided to the exporters. Further, exchange controls give details and guidelines for different accounts for NRI and foreign investors such as Ordinary Non- Resident Rupee a/c, Non-Resident External; Rupee a/c FCNR (B) a/c etc. Introduction of complex hedging tools like futures, options is still a long way to go, Recently, the government lifted the ban on futures, option trading in equity (stocks) after 40 years, This could be regarded as a step ahead to come closer to introduction of more complex tools in the currency markets in India. In the near future Standard Chartered plans to introduce rupee-based derivatives in India subject to the clearance and approval by exchange controls, with many companies now making use of different tools effectively, the Indian foreign exchange markets are moving ahead towards more relaxations and towards making the foreign exchange markets more vibrant and versatile, IDBI is one of the most active user of financial derivatives in Indian market. It made considerable savings over the last two year by using the entire range of products available in Indian forex markets. 2.7 FINANCIAL DERIVATIVES USED IN INDIAN MARKET A derivative instrument is commonly defined as one whose price is derived from an underlying quantity that could be an interest or an exchange rate (in this case exchange rate) we refer to derivatives of money and foreign exchange market prices as â€Å"financial derivatives†. The history of using financial derivatives to hedge foreign exchange exposures by corporates in India is fairly recent. Early 90s witnessed few foreign currency call options written by some Indian corporates. The limited use and general lack of interest in the available instruments can be explained by the fact that dependence on external sources of funding was very limited and the external sector wasnt really developed. But after liberalisation and current account convertibility, the whole scenario has changed. Risk management has under gone a paradigm shift, new financial derivatives have been allowed in the market to provide for exposures arising out of increased business activity in the external sector. We shall discuss the various hedging tools is operative. 2.7.1 FORWARD CONTRACTS The Definition: A forward contract is simply an agreement to buy or sell foreign exchange at a stipulated rate at a specified time in the future. It is a contract calling for settlement beyond the spot date. The time frame can vary from a few days to many years. Instrument: A forward contract locks you to a particular exchange rate, thereby insulating the CFO from exchange rate fluctuations. In India, the forward contract has been the most popular instrument employed by corporates to cover their exposures, and thereby, offset a known future cash outflow. Forward contracts are usually available only for periods up to 12 months. Forward premiums are governed purely by demand and supply, which provide corporates with arbitrage opportunities. The premiums in this market are quoted till the last working day of the month. Internationally, the forward premiums or discounts reflect the prevailing interest rate differentials. Arbitrage opportunities are therefore limited. As a rule, a currency with a higher interest rate trades at a discount to a currency with a lower interest state. Since there is a forward market available for longer periods, the forward cover for foreign exchange exposures can stretch up to five years. The premiums or discounts are quoted on a month-to-month basis. That is, from the spot date to exactly one month, or two months, or even a year. AN EXAMPLE.A corporate has to make a payment of US $I million on March 31, 1998. They can book a forward contract today, and fix the exchange rate at which he will make the payment. Assuming that the dollar-rupee spot rate is Rs 36.40, and the forward premium on the dollar for delivery on March31. 1998, is Rs 0.30 the effective exchange rate for the remittance becomes Rs 36.70 (36,40+30). The Regulations: In March 1992, in order to provide operational freedom to corporates, the unrestricted booking and cancellation of forward contracts, for all genuine exposures, whether trade-related or not, was permitted. In January 1997, the RBI allowed the banks to quote rupee forward premiums for more than six months. This has resulted in the development of a local forward market for up to one year. However, as the link between the local money market and the foreign exchange markets is not strong, and as prices and determined by demand and supply, activity in the long -term forward market has been limited. 2.7.2 FORWARD TO FORWARD CONTRACTS The Definition: A forward -to-forward contract is a swap transaction that involves the simultaneous sale and purchase of one currency for another, where both transactions are forward contracts. It allows the company to take advantage of the forward premium without locking on to the spot rate. The Instrument: A forward-to-forward contract is a perfect tool for corporates that want to take advantage of the opposite movements in the spot and the forward markets. By locking in the forward premium at a high or low level now, CFOs can defer locking on to the spot rate to the future when they consider the spot rate to be moving in their favour. However, a forward-to forward contract can have serious cash-flow implications for a corporate. Before booking a forward-to forward contract a CFO should carefully examine his cash flow position bearing in mind the immediate loss that he would make if the spot rate did not move in his favour. The Example. An exporter believes that forward premiums are high, and will move down before the end of December 1997. Also he expects the spot rate to depreciate in the next few months. Then, the optimal strategy would be to lock in the high forward premium now, and defer the spot rate to a future date. So, he opts for a forward-to forward contract for end December. 1997, to end March of 1998. Paying a premium of say a Rs 0.64 By entering into such a contract the exporter has the opportunity to lock on to the spot rate any time till December 31, 1997. Alternatively, if the three-month premium between end-December and end-March moves below the Rs 0.64 level he can cancel the contract and book his profits. Forward -to-forward contracts The SCenario Company A is due to receive the payment for goods exported three months earlier. Currently, three-month forward premiums are high, but Company A expects the sport rate to depreciate further. The Instrument The forward-to-forward pay-off matrix DS>EF DS>EF Lack in the Current Premium By Purchasing A Forward-To-Forward Contact EF>SF Better Than Simple Forward, But Worse Than Uncovered Strategy Optimal Strategy Choose The Spot Rate Within A Stipulated Time-Period, Thus Determining Effective Forward Rate SF>EF Worst Strategy Better than Uncovered Strategy, At the end of the months, Convert Export Proceeds to Rupee at the Effective Forward Rate SF : Simple Forward Rate EF: Forward-to-Forwar