Contemporary Issue in International Accounting Capital

Question: Discuss about theContemporary Issue in International Accountingfor Capital. Answer: Introduction: Today, countries trade with each other leading to flow of revenue and capital among them. International accounting standards have become a necessity to provide clarity and transparency between trading countries. International Financial Reporting Standards and Australian Accounting Standards are internationally accepted standards with country wise modifications. The paper opens with the necessities of international accounting systems keeping these two systems in light. Application of IFRS in some other economies has also been exemplified during the course of discussion followed by its role in international trade, investment and consumer satisfaction. The importance of IFRS to multinational companies has also been illustrated. The Australian Accounting Standard Board (AASB): According to Securities and Exchange Commission of the United States of America, the globalization of companies has given rise of flow of capital and revenue between countries (Sec.gov 2017). Today, the companies and individual investors invest abroad for capital appreciation. Hence, it has become important to have a set of common accounting standards to maintain transparency and liquidity in the accounting systems. The need for internationally maintained and followed standard of accounting has brought the accounting bodies in the world to come together and make new standard system of accounting. The Australian Accounting Standard Board (AASB) is the body that follows the Australian Securities and Investment Act 2001 and makes the accounting standard to be followed by the public and private companies in the country. The companies in Australia are required to follow Australian Accounting Standard according to the procedures laid down by the Common Wealth, state or local government bodies. The Certified Practising Accountants, Australia, the Institute of Chartered Accountants, Australia and the Institute of Public Accountants, Australia are under statutory compulsion to ensure that the companies following their systems of accounting comply with the Australian Accounting Standard (AAS) (Aasb.gov.au, 2017). International Financial Reporting Standards (IFRS): The Australian Financial Reporting Council directed Australian Accounting Standard Board to comply with the International Accounting Standard Board. The International Accounting Standard Board set down International Financial Reporting Standards (IFRS) which serves as the language of accounting in international business around the world. IFRS started as a method to standardize accounting in the European Union but spread to the rest of the world due to its applicability (Erdemoglu 2015). IFRS recognizes assets, liabilities, income and expenses, equity, contributions and distributions by owners and cash flow (Capkun and Collins 2016). The fair and transparent system of IFRS recognizes the organizations in the following ways: The system recognizes each organization as a going and continuous operating concern unless they are winded up. The system recognizes the items of assets, liabilities, expenses and so on if they suffice the definition and the criteria for their recognition. Each item is considered before accounting which allows grouping of items of similar nature together. This makes accounting more transparent and easier. IFRS requires the companies to at least present the financial statements once a year for financial review. This allows the review of the financial position of the company, ensures that IFRS norms have been adhered and accounting presentation has been done as per IAS 12. IFRS requires entities to present comparative statement for all the amounts of the previous periods. The statement should also have the narrative and description information to support the current financial figures. IFRS requires entities to follow the same standard procedure for accounting unless the entitys operation changes an item as per definition or there arises a necessity to change the accounting style. The Necessity of International Accounting Standard: The globalization of economies and the global expansion of companies into multiple countries have made it necessary to have a uniform accounting standard for all the countries. The IFRS came into being as a uniform accounting standard for the EU countries but has gained importance in most of the countries. This is due to the following reasons: Comparability: Today trades between countries have necessitated the governments to ensure that the companies with their domain follow a uniform accounting and reporting style. The Institute of Chartered Accountants, India, SEBI and Ministry of Corporate Affairs has made preparation of financial statements in IFRS mandatory. Reserve Bank of India has made IFRS a mandate of all banking accounts which has helped multinational companies including banks to expand into Indian market (Srivastava and Gupta 2014). Transparency: Transparency is a very important factor that makes international accounting mandatory. Investors can compare between companies before investing in the shares to study its stability and financial strength. A transparent system of accounting followed y all countries helps the stakeholders and the board of directors to make future strategies. Relevance: A uniform system of internationally recognised system of accounting helps a company to use its financial statements in multiple host countries. Multinational companies can use these financial statements to prove its strength while entering a new market. Common Wealth Bank based in Sydney is engaged in business in India, China, Indonesia, London and so on. Incorporation of IFRS in AAS has made it possible for the bank to operate in diverse markets conditions by following a uniform accounting and reporting system in all its locations (Commbank.com.au 2017). Reporting and strategy making: Multinational companies can report financial information from various locations to the management. The management, in turn can use the information to make business strategies for various market locations. Such strategies are particularly important in order to introduce a new product. For example, China is an important trading partner of Australia and was following its own accounting system. However, with the acceptance of IFRS, it became easier for Australia to measure the revenue from the Chinese market (Miao, X., 2016). Helps in international trade: Multinational companies operate in various economic through various modes like branches, FDI and franchisee. A universally system of accounting makes it possible for these companies to compare between different locations and review their performances. It also helps a company to measure the risk and profitability in several domestic markets and also diversify the risk over various markets. Multinational companies like PepsiCo and Microsoft operate in various countries like Taiwan, Singapore and the US. Acceptance of IFRS allows the companies to report the stocks, expenses, profits, sales and other accounting transactions in different countries in a transparent way for reporting and decision making (Schibuola 2014). Consumer and investors benefit: Countries can trade easily with other by applying IFRS which makes variety of goods and services available to the customers. Individual investors too can also study the financial statements of foreign companies before investing in their shares. Thus, an internationally accepted accounting standard boosts consumer satisfaction and investments which boost the world economy (Tong 2014). Conclusion: The above study shows that international accounting standards are very crucial for international trade. These standards form the base of accounting procedures of the countries and yet allow modifications considering the unique features of each economy. They also lead to investment and consumer satisfaction, thus boosting the global economy towards growth. References: Aasb.gov.au. (2017). Australian Accounting Standards Board (AASB) - Home. [online] Available at: https://www.aasb.gov.au/ [Accessed 1 Feb. 2017]. Capkun, V. and Collins, D.W., 2016. The Effects of IFRS Adoption on Observed Earnings Smoothing Properties: The Confounding Effects of Changes in Timely Gain and Loss Recognition. Commbank.com.au. (2017). Personal banking including accounts, credit cards and home loans - CommBank. [online] Available at: https://www.commbank.com.au [Accessed 1 Feb. 2017]. Erdemoglu, E., 2015.The Economic Analysis of the Internationalization of Financial Reporting Standards: IFRS Internationalization from a Law and Economics Perspective(Doctoral dissertation). Gelter, M. and Eroglu, Z.G.K., 2014. Whose Trojan Horse-The Dynamics of Resistance against IFRS.U. Pa. J. Int'l L.,36, p.89. Miao, X., 2016. Issues Affecting Convergence of National Accounting Standards with Ifrs in a Transitional Country: The Case of China.Academy of Accounting and Financial Studies Journal,20(2), p.142. Schibuola, M., 2014.Internationalization of the firm through MA(Bachelor's thesis, Universit Ca'Foscari Venezia). Sec.gov. (2017). International Accounting Standards. [online] Available at: https://www.sec.gov/rules/concept /34-42430. htm [Accessed 1 Feb. 2017]. Srivastava, A. and Gupta, P., 2014. Adoption and Implementation of IFRS in India: A Corporate Experience.IUP Journal of Accounting Research Audit Practices,13(4), p.7. Tong, T.L., 2014. A Review of IFRS 15 Revenue from Contracts with Customers.

The Analysis of the Peculiarities of the Cuban Special Period through the Discussion of the Ruins Main Character

The history of Cuba is full of challenges which are connected with the periods of revolutions and with the Cuban Special Period of the early 1990’s. The retrospective of these historical events is presented in many literary works in which different aspects of the issues are accentuated.Advertising We will write a custom essay sample on The Analysis of the Peculiarities of the Cuban Special Period through the Discussion of the Ruins’ Main Character specifically for you for only $16.05 $11/page Learn More Achy Obejas provided the readers with her own vision of the controversial situation in Cuba in 1990’s with the help of vivid depicting of the character of Usnavy, the protagonist of Obejas’ Ruins. Usnavy is described as a person whose suffering from the critical situation in the country depends on his inability to admit new life conditions and his impossibility to use compromises. He is used to live according his own old rules as the population of Cuba is also not ready to follow new capitalistic principles. The revolution of 1959 changed the life of Cubans greatly. They admitted it and it became the part of their lives. Achy Obejas left Cuba together with her parents at a very tender age, but the memories of Cuba kept her peeping into what life would have been without the revolution, and what life is with the coming of the revolution. Moreover, she considered not only significant social but also political aspects of the process: For the US Cuban writer and poet Achy Obejas, being Cuban in the United States has meant realizing and accepting that her parents’ anti-Communist politics as well as their decision to leave Cuba marked her early on as an exile (Mirabal 367). Achy Obejas in her Ruins offered an exact picture of the occurrences in the post- revolution era and in the Cuban Special Period when all the old ideals and principles of the Cuban society were ruined. That is why it is necessary to ex amine the peculiarities of portraying of the character of Usnavy from the point of new historicist criticism. It is important because according to Whitney, â€Å"how we understand the revolutionary process determines how we interpret revolutionary (or counter revolutionary) events† (Whitney 3). Why can the character of Usnavy be considered as the metaphor for the processes in Cuba during the Cuban Special Period? Achy Obejas depicted the Usnavy in Ruins as a middle-aged native Cuban who worked at a grocery. Thus, he was a typical representative of the Cuban society of that period. However, the main problem of Usnavy which is the source of his inner conflicts is his high principles and strong beliefs in the ideas of the revolution. We can state that Obejas uses the depiction of the character of Usnavy in order to tell the story of Cuba and represent the positions of that part of the Cuban population which supported the ideals of the revolution and was not ready to admit new co nditions. â€Å"For average Cubans, however, day to day social relations are already dominated by a kind of petty-capitalism in the legal and illegal market place, both within and outside the country† (Whitney 7).Advertising Looking for essay on american literature? Let's see if we can help you! Get your first paper with 15% OFF Learn More The tragedy of Usnavy is in the fact that he continued to live in the world of his illusions connected with the ideals of the revolution. He did not admit the situation when Cuba appeared to face the period of ruins. Most Cubans ‘calmly’ went about their daily businesses for a while, trying hard to live a normal life when all signs of normality had disappeared. People lost their jobs but they often tried to conduct themselves as if nothing had changed. Factories closed. The fact that the state continued to pay them helped soften – or at least delay – the blow. Food, cloths, and other basic necessitie s were severely rationed (Whitney 5). In her novel Obejas explains that the conditions of Usnavy’s life and the peculiarities of his reality were the result of his non-compromising standing on his principles. He preferred protecting his integrity to any other interest. In Ruins Usnavy is portrayed as the person who never shunted at every opportunity, he waited for his own turn and shared only that he could be allowed. Obejas has done a good job painting a vivid picture of poverty in Cuba. She also depicted those people who refused leaving the country, and those who were not very patriotic and could not bear the heat of remaining in Cuba at the height of the countries challenges. Usnavy did not understand those people who were ready to go to the USA in order to find normal conditions of life. How was it possible to live according to the principles of capitalism after the period of socialism? However, Usnavy discovered for himself these principles with the help of his lamp. Obe jas paints his love for the lamp as thus: In the damp and acrid tenement, the lamp was a vibrant African moon in a room that was by nature spectral. It was delicate and oversized in a place that demanded discretion and toughness – if it swayed, it might shatter against the concrete (Obejas 68). Usnavy’s faced the issues of capitalistic principles when he became to evaluate his lamp which could be those one of Tiffany. It could have some price. That is why he sold it. However, the image of the lamp followed him, and he became to look for in the houses which were destructed.Advertising We will write a custom essay sample on The Analysis of the Peculiarities of the Cuban Special Period through the Discussion of the Ruins’ Main Character specifically for you for only $16.05 $11/page Learn More Moreover, he became aware of the significance of dollars when the situation of his poverty grew to be critical. An interesting twist happened to him when his neighbor asked him to help drive an American. He was paid in dollars, and the life he lived with the dollars was not something he wanted to miss. He became to think of what he could sell to make more dollars, and no other ideas came to him than that of the lamp, justifying his action on the fact that the dollar was the only currency that at the moment can put food on a family table. Thus, many people in Cuba had to change their viewpoints because of the great necessity. Obejas’ use of the lamp in the novel can emphasize ‘the light’ which represents the socialism as the light which Usnavy and the Cuban people had. The coming across of new light represents the entrance of capitalism into the Cuban market, and finally the class formations that were created as the result of the increase of the meaning of the dollar. Whitney reported the entrance of the dollar in that period as following: At the same time foreign investment was encouraged. Spaniards, Mexi cans, Venezuelans, Brazilians, and Canadians started to invest in tourism, mining, and other industries (Whitney 7). In the situation of spreading of the principles of capitalism in Cuba the Cuban peso’s value was so poor that working people did not see the need living their poor lives in the country anymore. However, those who worked in some new and booming industries such tourism were those ones who lived quite successfully. In her work Achy Obejas accentuated that the USA, at some point in this struggle, had significant influence on the Cuban people as a nation. She discussed the idea that less patriotic citizens like she lived in the shadows of the American dream: After thirty-five years of revolution and scores of imported allied laundry detergent as well as the occasional domestic product—everybody still referred to the powdery stuff as fab, as if they couldn’t shake the long northern shadow even in matters as simple as that (Obejas 105).Advertising Looking for essay on american literature? Let's see if we can help you! Get your first paper with 15% OFF Learn More The distance between Cuba and the United State of America is roughly ninety miles. However, the difference in the political and social ways of the countries is great. The Cuban special Period was characterized by a lot of significant changes in the life of the country. â€Å"Along with the social and economic changes came an important political change† (Whitney 7). Many people were very frustrated by the situation in which they experienced themselves. Examining of the vivid author’s depiction of the character of Usnavy allows the readers to look into the situation in Cuba in the early 1990’s more deeply and to consider all its important details. Usnavy is one of those who suffered from great disillusions, from wrong idealism and from the obvious incapacity to play according to some new rules which were dictated by the modern situation in the society. He proved his position according to his principles of a real revolutionist. However, the Cuban Special Period pla yed a very significant role in the progress of the country in 1990’s. It can be considered as coming of the new age which developed rather dramatically. Thus, it had a number of its victims who suffered from new rules and principles greatly. In her novel Achy Obejas presented the unique character of Usnavy as the definite vivid metaphor for depicting of the critical situation in Cuba during the special period of the early 1990’s. The author succeeded in portraying of the peculiarities of the everyday life of the Cuban people who faced the challenging situation of numerous significant changes in the country which touched every sphere of their life and resulted in some controversial effects. Works Cited Mirabal, Nancy Raquel. â€Å"Ser de Aqui: Beyond the Cuban Exile Model†. Latino Studies 1 (2003): 366-382. Print. Obejas, Achy. Ruins. New York: Akashic Books, 2009. Whitney, Bob. â€Å"Is the Cuban Revolution Dead? An Historian’s Reflection†. Labor C apital and Society. 28.1 (April 30, 1995): 95. This essay on The Analysis of the Peculiarities of the Cuban Special Period through the Discussion of the Ruins’ Main Character was written and submitted by user Yesenia Mckay to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

History Research Topic - Bosnian Genocide free essay sample

By doing this research study I hope to improve my research skills which will be a great start before I go to university. I hope it will help me make my note-taking and reading better but also it will be an independent form of learning. My aim is to find out what actually happened in 1995 and to learn what I can about this part of history. The sources that I used were Internet and a book. At first I will do some general reading about the event and then I will focus more on my topic. Sources: http://www. history. om/topics/bosnian-genocide REVIEW OF THE PROCESS For my research topic I went to my local library but I couldn’t find any book which would contain information on my topic that I need. I found information that I wanted on the internet. However some sites were biased and unfair which meant that I had to compare a lot of different sites. We will write a custom essay sample on History Research Topic Bosnian Genocide or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Then I read all of my sources and I began to taking notes. It was so useful for me when I started to write my essay because I had the main information that I needed together in one place. At the beginning of my essay I found it hard to do, but later I knew how I want in to look like and what I want to say write. I wrote out a rough draft which was too short so I had to add more details about the event. ESSAY ! The word Genocide means killing or destroying members of an ethic group because of their race, nationality or religion. It is one of the worst crimes that people ever came across when thousands and millions of people were murdered. From 1992-1995 that was happening in Bosnia-Herzegovina. Bosnia is a country in south-eastern Europe that emerged after the break-up of Yugoslavia in 1980. The conflict between the three main ethnic groups in Bosnia, the Serbs, Croats, and Muslims, resulted in genocide committed by the Serbs against the Muslims in this country. After the First World War country was united with other Slav territories to form Yugoslavia. At the time, the population of Bosnia consisted of over 1,300,000 Serbs which were Orthodox Catholic Christians, million Muslim Bosnians and around 700,000 of Croats. They all were strong attached to this land by the historical and local claims. After the death of Josip Broz Tito, elections in 1990 brought nationalists to power in Slovenia, Macedonia and Croatia, which declared independence in 1991 and were recognised internationally. The Leader of Bosnia’s, Alija Izetbegovic called for independence too, and the country was recognised as independent by the USA and the EU in 1992. However, Bosnia’s Serbs weren’t happy because they wanted to be part of â€Å"Greater Serbia†. a Serbian named Slobodan Milosevic, a former Communist responded to Bosnian’s declaration of independence by attacking and bombarding the capital city, Sarajevo. Serbs shot down civilians in the streets, including over 3,500 children. In the period preceding the attack of Serbs, Bosnian army used the ‘safe area’ as a base to attack the Serbian population. Since April 1995, the Serbs took over the area around the Srebrenica, cutting off supplies and humanitarian aid. In May 1995 the United Nations decided not to increase the units to protect the ‘safe area’ in Bosnia. In July following year Serbs troops entered Srebrenica. They not only attacked the ‘Safe area’ but also attacked the U. N. peacekeepers as well. The Dutch soldiers had been taken prisoner by the Serbs and nobody did anything to help them. Serbs had already fought with Muslim soldiers in the other villages so it was easier for them to get in. It was the time of murder, torture and beating. They destroyed homes, workplaces and places of worship that were important for Muslims. Serbs separated civilians, putting the women and girls on buses to Bosnian-held territory. Some of them were treated very badly. They were raped and sexually assaulted while the men and boys between the age of twelve and ixty were killed immediately or they were sending to concentration camps. Up to 3,000, who tried to escape, were shot or decapitated in the fields. A third of the 5,200 refugees from Srebrenica were less than 5 years old. Finally on August 30, 1995, effective military intervention finally began as the U. S. led a massive North Atlantic Treaty Organization (NATO) bombing campaign in response to the killings at Srebrenica which last for thr ee weeks. Because Serbs stars to become weak, Milosevic agreed to enter the talks in Dayton, Ohio, USA in November 1995. In result, an agreement that ended the war was signed in December 1995. It divided Bosnia into a Croat-Muslim Federation and Republika Srpska. Srebrenica is considered the largest murder in Europe after the Second World War were over 8,000 people were killed in this bloody massacre. A NATO peace-keeping force was deployed which is still there, facing intractable social and administrative problems. Later, in 1996, election was held which produced a three-man presidency representing the main Bosnian groups. Srebrenica was re-inhabited but Serbia left huge internal displacement of population from which the people have not yet recovered. The tragedy of this place will forever haunt the history of the U. N, a massacre of people who believed that Un will help them and they will be safe. Evaluation of the sources http://www. history. com/topics/bosnian-genocide This website briefly explained the story of what happened in Bosnia. It contained enough information for me to be able to know the basic stuff about the event from the 1995. It was easy to read, language was clear and I could cross-check it with my other sources. The website had many links for some good articles about what genocide is which helped me a lot with my essay. www. nytimes. com This website gave me primary source information about Srebrenica Massacre. It contained articles from time when the war broke-out but also the period during the genocide (1992-1995). The articles showed the political side of the conflict and it was really interesting and instructive form me to learn something from a different point of view.

Lynx Essays - Lynx, Eurasian Lynx, Bobcat, Trapping, Kitten, Hare

Lynx Essays - Lynx, Eurasian Lynx, Bobcat, Trapping, Kitten, Hare Lynx Lynx by Cody White Academic Orientation Mr. Keown period 7 December 19, 1997 With a pounce and a hop the speedy lynx chases the bleached white hare through the bushes. Poof! The hare disappears into the shiny white powder. Then the sly lynx picks up the scent of the hare and pounces toward the small hairball. The sharp elongated claws dont dig in, and the hares long slender legs launch himself out of the hole and out of danger. The swift cat swings his claws around to hit the fast hare, but he hits the snow right under his back legs. The hare runs right between two willow trees and into a narrow opening which has a bunch of fallen willow trees. The hare has escaped from the lynx this one time, but the lynx will find other food. The lynx is a pale brown to brownish grey with black streaks on its neck, forehead, and on the back. It has a short tail, long tuffed ears, long slender legs, wide feet for control in the snow, and long very soft fur. The lynx will grow to be 30 to 40 inches long, and 24 to 28 inches high from feet to shoulders. They usually weight 15 to 45 pounds. When you see the lynx, at first sight, it looks gaunt and lanky, but it is really fast and muscular. The back legs are longer than the fore legs for better pouncing ability. From the front the lynx looks royal with its hair on its face coming out to two points (Myers 136). The lynx is closely related to the bobcat, which populates the north American region. The bobcat does not have big fluffy paws, or is not as big as the lynx in relative size. They have two different food varieties. The lynx eats hares ,and also may prey on small deer, dall sheep, grouse, mice. Rarely they feed on fish. On the other hand bobcats feed on grouse , fish, and other small rodents. Lynx chase and still hunt their prey. They chase hares or they stay up on cliffs and branches, and waiting to pounce on the animal as it goes by. The lynx ranges from Alaska, all the way across Canada. The lynx are usually found in climax forests and dense undercovers. They are usually found where hares are abundant. If there are no hares in the vicinity, they travel out into the tundra to find food. Lynx breed during March and April. The gestation period is 60 days long ( Myers 135) . They will have from 1- 4 kittens each year. They usually have dens, where they keep their kittens, in hollow trees or under a pile of brush. The kittens stay with the female until well into the next winter. The kittens dont open their eyes until 10 days after birth. They also only nurse for 3 to 4 months. When the population of the hares are up the litters of 2 to 4 kittens have a lot better chance to survive in the wilderness with their parents. When food is not abundant the female lynx might not have a litter at all that year or not until the hares have come back. Lynx usually are silent, but the males make a screeching noise to find a mate during breeding season. The weird thing about the lynx is when it is in a trap. It doesnt make a sound. It sits there calmly accepting its death. The Lynx are sly creatures that prowl at night to find their food. That is usually the reason why people dont see the lynx out in the wilderness a lot. The lynx are sensitive to bright light, because their eyes are made to see at night. Adult males usually hunt alone, not in packs like wolves.The females usually hunt with their family if the kittens are old enough to go along. The kits hunt with their mother and learn skills from her until they leave in the fallowing winter. The huge feet of the lynx give it superb agility in the snow. The lynx has been known to chase down slow clumsy fox that has slim and slender feet that dont give them any leverage on top of the snow. Trapping lynx

The Robustness of Authoritarianism in the Middle East Essay

The Robustness of Authoritarianism in the Middle East - Essay Example She begins with an analysis of the common explanations but then goes on to highlight the exceptional factors that hinder democracy. She cites examples and elaborates them to support her claims. In addition, she makes comparisons with the situation in other regions to make her claims more valid. She uses the exceptionalism comparative perspective to identify the real causes. Bellin starts with a citation of the Freedom House report on the level of democracy in different regions. While the number of free countries is doubling in other regions, the freedom house report indicated stagnation in the Middle East and North African region. She mentions the statistics as an anecdote to awaken the attention of her readers. Obviously, this report implies that something is definitely wrong in these countries. The author makes a supported claim that most countries in the region have failed to take the challenge of embarking on a journey towards democracy. She then mentions the obvious reasons that may be the cause of the stagnation. According to her, the obvious reasons do not offer valid explanations as to why the region does not make efforts towards democratization. These reasons include the existence of weak civil societies in the region that lack the impetus and capacity to advocate for democracy. In addition, labor unions in the region lack notable activity that can foster democracy. She also highlights the fact that the non-profit organizations in the region lack the appropriate grounding for them to participate in activities that can initiate a democratic transition. In elaboration, she mentions that since association life in the region is weak, the society lacks the capacity to exert pressure on the state to adopt a democratic setting. In addition, the state drives all economic projects of the countries through rental sources of income (Diamond 97-98). The state determines the level of employment as well as the rate of economic growth in the region. The people lack t he autonomy to create new economic ventures for themselves. Therefore, as long as they depend so much on the state, they cannot make demands from it. Increased poverty, illiteracy, and inequality limit the people from demanding democracy. As argued, these factors scare the few elite in society. The masses cannot commit to fighting for democracy as they have other pressing issues on the side. Next, she explains the claim that the Middle East and North Africa lack close proximity to democratic republics. Usually, analysts argue that close proximity to a democratic country offers demonstration effect. Some analysts claim that Islam is incompatible with democracy. Islam is prevalent in the Middle Eastern and North African countries and may be one of the reasons making it difficult for the people to embrace democracy. Bellin argues that the above circumstances are not preserves for the Middle Eastern and North African regions. The same factors exist in other regions that have shown remar kable progress towards democracy. She compares the situation in these regions with the realities in other regions. Her illustration of the progress in the sub-Saharan region despite the weak societies outweighs the claim that presence of a weak civil society hinders the Middle East society and North African countries from advancing towards democracy. On a different point, a high economic command from the state is not a factor that these

MULTINATIONAL CORP-EVOL & CUR ISSUE Movie Review - 2

MULTINATIONAL CORP-EVOL & CUR ISSUE - Movie Review Example As the financial crisis got worse, the Federal Reserve took unusual and unparalleled actions to re-establish financial stability. Unemployment rate continued to rise until mid-2003, as the United States economy was rebounding from a small recession in 2001. The Federal Reserve was worried that the economy would slide into recession so they kept the federal funds rate very low. The rate reached 1 percent by mid-2003 (Labonte and Makinen 9). As the economy began to expand and prices began to increase, the federal funds rate was increased to 5.25 percent by mid-2006. According to Labonte: It is now argued by some economists that the financial crisis was, at least in part, due to Federal Reserve policy to ensure that the then-ongoing expansion continued. In particular, critics now claim that the low short-term rates were kept too low for too long after the 2001 recession had ended, and this caused an increased demand for housing that resulted in a price bubble (Labonte and Makinen 9). The economy was more and more susceptible to changes in short-term interest rates largely due to the move to floating interest rate mortgages from fixed interest rate financing for housing. The Chairman of the Federal Reserve Benjamin Bernanke stated that the low home mortgage rates were largely caused by a glut in global savings. Bernanke went on the say that the Federal Reserve had little control over these savings due to constraints in the regulatory framework. The Federal Reserves later policy of tightening monetary policy was to burst the housing bubble, claim critics. The critics further suggest that lax lending standards, which were regulated by the Federal Reserve, also contributed to the crisis. The subsequent increase in bank leverage ratios meant that they could borrow more overnight and create collateralized debt obligation (subprime loans) in the securitization chain. When the housing bubble burst, it led to a

Value of Real Estate Loans Issued By Commercial Banks Essay

Value of Real Estate Loans Issued By Commercial Banks - Essay Example The onset of the new millennium brought many developments for the banking sector globally. As such, the increased knowledge about mortgages and advanced exposure to access of finances meant that commercial banking business was as competitive as it was enjoying demand. In the year 2005, the United States economy was experiencing increased interests in housing and property development. Besides, the commercial banks increased their lending incentives in a bid to acquire the largest customer base of the growing credit demand.   In the first quarter of 2005, the real estate loans for residential, commercial and farmland were 1.43%, 1.12%, and 1.70% respectively (Federalreserve.gov, 2015). The low-interest rates in comparison to those of the fourth quarter of 2004 acted as incentives for consumers who wanted to capitalize on the credit availability opportunity provided for by the low-interest rates. As depicted in Figure 1 below, the rates of exposure to loans for both Commercial Real Es tate (CRE) and Construction and Land Development (CLD) was gradually increasing, thereby approaching the peak in 2005.The loan incentives put in place by commercial banks encouraged borrowing for risky mortgages, which threatened to go up, as is always the case of property appreciation for assets in high demand. The first quarter of 2006 indicated the beginning of the gradual discrepancies in the interest rates, as the real estate loans for residential, commercial and farmland settled at 1.60%, 1.02%, and 1.53%.