Free College Admissions Essays: Slacking :: College Admissions Essays

College Admissions Slacking Its unbelievable how each year, since the beginning of gritty school, my perfectly laid plans for myself pack unavoidably deteriorated. When I entered my freshman year, I had aspirations of creation a doctor (something I had wanted to be since I was a child). Now, here I am entering my senior year in high school without any idea of what I want to do. Now seems to be the time to start taking life seriously and making responsible, educated choices. looking back on it now, I realize that I cannot become the doctor I wanted to be. I have come to realize that, that dream was not only my own, but a dream of my family. My p bents often talked of me becoming a doctor and although their enthusiasm continued throughout my childhood and early adolescence, mine tardily diminished until finally I realized I did not want to become a doctor. I remember how hard it seemed to tell my parents of my decision, I felt up up as if I was letting them down, but I eventua lly came to realize that they wanted me to do what made me happy. I am not definite wherefore I changed my mind in regard to being a doctor, I had the grades, the drive, and the willingness to make certain sacrifices, but somewhere I was missing something and I felt that I would not be satisfied in a medical career. So I started thinking about what I wanted to do I went from teaching to law enforcement, computer programming to astronautics and numerous other professions. Now I come to a crossroad in my life where I must choose what to do with my future, choose what will make me happy. I have always wanted the typical American Dream to have a husband I am in love with, a stable job, loving children, and a house in the suburbs. But now I realize that there are so many other steps I need to take in order to achieve these so-called goals. This includes graduating from high school and college, finding that peculiar(a) someone, and finding that perfect job. I have begun to realize th at I have yet to begin my life everything up until now has been practice, as if I have been in a cage and it is only now that I am beginning to break free and do things for myself.

Contrasting Theories on the Extinction of Dinosaurs Essay -- Compare C

So what killed the dinosaurs? Without having any background education in recognition it is hard for the general public to comprehend such matters and they rely on the knowledge of the scientists in this field. Although there has been much research on the subject aught has come up with a conclusive answer. And we are left to read the countless articles, all having their own opinions as to the mass extinction. One such guess is that a shift in the solar system could have caused the mass destruction. According to an article published in personality magazine, A bizarre reel 65 million years ago, perturbing the orbits of Mars, Earth and Mercury, may have caused the demise of the dinosaurs, new models of the Solar System suggest.The article suggests that an upset could have cut off the trajectories of asteroids-normally safely confined to asteroid belts-sending one or more into the Earth. This is an easy enough idea for the general public to understand yet it is not verbalise if the y know what caused the upset in the first place. And this is where we depend on the researchers to come up with a way of finding this out. They designed a model that would imitate the Solar System 100 million years ago, based on natural variations in planetary orbits, their proximity to the Sun and their gravitational effects on one another.What they did find was fluctuations in the model dating back 65 million years ago right when the asteroid supposedly hit. Even though it sounds like good solid evidence a lot of scientists are still not sold on the idea and need more convincing.In another article it is suggested that had a meteorite, large enough to cause mass extinction, hit the earth there would have been widespread wildfires wiping out eve... ... lack of selective information spreading to the general public. In the end we are left with countless more articles to read and decipher. Works Citied1. Ball, Philip. Roast dinosaur off the menu? Nature 03 Dec. 2013 Nature News Service/ Macmillan Magazines Ltd 2015http//www.nature.com/nsu/031201/031201-3.html2. Clarke, Tom. Chaos killed the dinosaurs. Nature 28 June 2011 Nature News Service/ Macmillan Ltd 2015http//www.nature.com/nsu/010628/010628-15.html3. Dalton, Rex. Hot tempers, hard core. Nature 04 Sept. 2013 Nature publish Group 2015http//www.nature.com/cgi-taf?file=/nature/journal/v425/n6953/full/425013a_r.html&filetype=&dynoptions4. Pearson, Helen. Asteroid let dinosaurs rule. Nature 17 May 2012 Nature News Service/ Macmillan Magazines Ltd 2015http//www.nature.com/nsu/020513/020513-11.html

No Child Left Behind Act :: essays research papers

Page 1Symbolism in Robert FrostThis poetry analysis essay is about symbolism in Robert Frosts poetry. The essay is titled Symbolism in Robert Frost and the poetrys under discussion are The roadway Not Taken and Birches. Fisrt I will start with the poem titled The Road Not Taken and provide trinity short quotes from this poem and one quote from Birches. I will also provide three possible interpretations of their meaning. The pursuit is a quote from the poem titled The Road Not Taken Two roads diverged in a yellow wood, And saturnine I could not travel both and be one traveler. The first possible interpretation of that quote is that there a choices in life that we as individuals will ultimately have to hold in. Sometimes these choices are made and the consequences are not what was expected. These choices however insignificant at the time, can result into significant circumstances. The choices we make in life affect us in many ways. The next possible interpretation of that quote is making choices in life is what human beings do throughout life. There are no foolproof systems in place to indicate which choice will benefit individuals the most. A third interpretation of the quote is the choices in life are many and there will be situations where you can not change your decision easily once it has been made and youre forced to see through with what you have decided. There are times when we make choices and look back on the choices we have made in reminiscence thinking what would have happened if I had choose differently? Now that I have provided three possible interpretations of a quote from the poem titled The Road Not Taken, I would now like to take a second quote from that same poem and provide three possible interpretations of its meaning. The following is a second quote from the poem titled The Road Not Taken Oh I kept the first for another day Yet cognize how way leads on to way, I doubted if I should ever comeback. The first possible interpretation o f that quote is that we as individuals come to terms with and accept the choices we make in life whether good or bad. The next possible interpretation of that quote is when dealing with choices made in life that may not have been flip before, we can make the best of the situation and stay the course.

Hair Removal: What is the Best Way? :: Persuasive Argumentative Essays

Hair Removal What is the Best Way?Susie re tout ensembley needed to go to the bathroom. She had been enjoying a tranquil slumber until the urge hit. Quickly, Susie threw back the covers and sprinted to the bathroom. She reached for the doorknob and tried to turn it, but it would non budge. Her sister, Caroline, was locked in the bathroom.Caroline, I really have to goI am sorry , Susie.Caroline, you really do not understand.Well, Susie, if you could find a better way to get rid of the copper on my legs, then I would not have to occupy the tub for this long. Until then...leave me aloneCaroline...Caroline?And with that, Susie gave up. She just decided that she would have to wait another half hour while Caroline finished plucking all single hair from her legs. Caroline had tried many different methods for hair elimination, but she still had not found one that suited her. All techniques of hair removal -- hairless lotion, laser, wax, soap and water shave, and electric razor -- accomp lish the same goal, but they do it in very different ways. However, I tactile property the best option for hair removal today is the electric razor. Now I will explain each form of hair removal and how they all have advantages, but I will prove why I feel the electric razor method is the best.The first type of hair disrooting is depilatory lotion. It is fairly easy to use, but roughlytimes the strong odor of the lotion offends users. Consumers simply squeeze a small amount from the bottle and apply it to the designated area. after(prenominal) the lotion has been allowed to penetrate, it is wiped off and the roots of the hair are dissolved. The pain is minimal usually none occurs unless the user suffers an allergic reaction. If that happens, the fault lies with the consumer. The directions should have been read by the consumer, and a test should have been performed also. The price is moderate it is not as expensive as a different technique, but there are some methods that are chea per. A bottle of lotion ranges from $5.00 to $6.00, and it would last for 20 to 25 applications. The effects also last a reasonable length of up to a week. However, the lotion needs to be applied every week to keep the desired effect.The second method of hair removal is lasers.

Business Plan for a Nightclub Essay examples -- Business Management Fi

Business Plan for a Nightclublevel 3 plans to be a chain of upscale nightclubs centering virtually the middle Georgia areas. It is demographically targeted to middle aged adults ages ranging from 25 and up. LEVEL 3 aims at providing quality entertainment, food and refreshments along with a accept environment that bequeath give our customers a unique and entertaining experience.Company OverviewThis company evolved through a partnership on January 19th 2005. LEVEL 3 is located in Perry, Georgia and caters to the surrounding Middle Georgia areas. The company plans to attract upscale and mature customers whose ages range from 25 and older. LEVEL 3 depart be the premier, high-energy themed dance and night club in Middle Georgia. We will provide our customers with live entertainment, quality food and overhaul along with a great atmosphere. We want to construct an intimate setting that will make our customers feel a sense of belonging. Easily manageable and dineroable, this business appeals to customers who want to remit and meet different enjoyable and exciting people. It will capitalize on the ever growing demand for a safe and sophisticated nightclub. Our objectives are to profit on our excellent location in Perry, Georgia, with commitment to the community developments. We in like manner want to allege tight control of costs, operations, and cash flow through brisk management. In addition, we will maintain a food cost below 33% of food revenue and drinking costs below 25% of beverage revenue. Finally, we plan to fleet $3 million in annual sales by the third year of plan implementation. LEVEL 3 plans to launch with a highly publicized kelvin opening event in the summer of 2005. It intends to expand to other cities within Georgia after revenues excel.Product PlanLEVEL 3 will be characterized by the elaborate dance club situated in a spectator setting which comfortably accommodates 350 guests. The area will offer two private sky boxes and one banquet room which can be combined for use in a conference or private party setting. Also these rooms are intended for special events and daily use. In order to reach and maintain a unique word-painting of quality, LEVEL 3 will provide attentive and friendly service through a high ratio of service personnel to customers, and will also invest in the training and supervision of its employees. The initial hours of operation will be fro... ...footage than anyone else in the region. A simple, yet unique, themed menu and atmosphere will create a sense of belonging for locals and tourists alike. Our operating credo is happy enthusiastic employees create happy enthusiastic guests. The main objectives of the development of this new venue are profit on excellent location opportunity with swift commitment to the new Town Square development. To launch the venue with a highly publicized grand opening event in the summer of 2001. To maintain tight control of costs, operations, and cash flow through diligent management and automated computer control. To maintain a food cost below 33% of food revenue. To maintain a total beverage cost below 25% of beverage revenue. To exceed $3 million in annual sales by the third year of plan implementation. The keys to success in achieving our goals are Provide exceptional service that leaves an impression. Consistent entertainment atmosphere and product quality. Managing our internal finances and cash flow to enable upward capital growth. Strict control of all costs, at all times, without exception

Green Alliances: McDonalds and Environmental Defense Essay -- Environm

Green Alliances McDonalds and environmental Defense On August 1, 1990, Shelby Yastrow, McDonalds Senior Vice President of Environmental Affairs, and Fred Krupp, Environmental Defenses Executive Director, announced that the company and the organization would form a partnership with the goal of improving waste management at McDonalds. The announcement came as a surprise to many outside of McDonalds and Environmental Defense the alliance of the worlds largest fast-food company with one of the countrys oldest and best-known environmental organizations seemed improbable. McDonalds seemed a more likely target for Environmental Defenses litigation than a potential partner. Reaction to the announcement was mixed. Many, such as the Wall Street Journal, applauded the decision to cooperation, saying that the alliance could break ground in the fight to protect the environment.1 Others, such as Warren T. Brooks of the San Francisco Chronicle, charge McDonalds of caving into pressure from th e elitist yuppies2 of Environmental Defense. Still others, like Hans Schuttle of the Boston Globe, feared that Environmental Defense was catering to big business and watering down its stands.3 McDonalds and Environmental Defense themselves seemed unsure of the direction the partnership would take. Krupp spoke of working together to improve the environment, but also cautioned, were always ready to roll out the weighted artillery. Yastrow likewise expressed cautious optimism about the partnership. In this, Krupp and Yastrow were acknowledging McDonalds and Environmental Defenses very different histories and perspectives, yet they were also implying that each had evolved bounteous to a point where they were in a posit... ...26 www.environmentaldefense.org/pubs/Reports/McDfinreport.html, updated 8/21/00, accessed 11/16/00.27 www.environmentaldefense.org/pubs/Reports/McDfinreport.html, updated 8/21/00, accessed 11/16/00.28 www.environmentaldefense.org/pubs/Reports/McDfinreport.ht ml, updated 8/21/00, accessed 11/16/00.29 Langert, 12/4/00.30 www.environmentaldefense.org/pubs/EDF-Letter/1991/Jan/a_mcdonalds.html, accessed 11/16/00.31 Livesey, p. 532 Livesey, p. 1133 Langert, 12/4/00.34 www.environmentaldefense.org/pubs/StrategicPlan/, accessed 12/7/00. 35 www.environmentaldefense.org/pubs/Newsletter/1999/Dec/gc_ways.html, accessed 11/23/00.36 National Resources Defense Council website, www.nrdc.org/cities/recycling/append.asp, accessed 11/14/00.37 www.environmentaldefense.org/pubs/Reports/launchethic.html, accessed 11/23/00.

Letter from Birmingham Jail Essay

The Letter from Birmingham Jail written by Martin Luther King is striving to shrive the need for an action that is direct and nonviolent. It also talks more or less the Black population and their possibility to resort to disorder and civil disobedience and Kings own frustrations with Church whom he thought as non doing the duties and responsibilities that people of God should do. Martin Luther King does not want abandon to ensue. He just wants to go for or make amendments to the existing laws of the country and the ruling of the Supreme Court in 1954 to be observed.According to King, an individual has the moral responsibility to not follow or observe laws that are unjust (King 1963). The mass action does not break the law because a law that is not morally right is not really a law. The laws are made to protect the citizens of the land and not to be used for punishment and degradation of the people. The black people of America were spontaneous to do what it takes to claim their legal and moral rights that are rightfully theirs. They pull up stakes do this preferably without fierceness and through peaceful means.If they are not allowed to utter their sentiments, then they would resort to a much uglier scenario. If these needs of the black Americans will not be addressed soon, there will be chaos and violence since the people have so whiley emotions and frustrations that are pent up inside. A similar theme of civil disobedience can be show in previous readings. One such reading is Chief Seattles Oration wherein he talked about the relationship of the people and mother earth. It talks about the Native Americans as a minority race and the violence that has occurred between his race and that of the white people.He elevates his people in that oration by verbalism that the Euro-Americans were also to be blamed for the violence because he recalled a time when the white man drove their forefathers further into the west. The Native Americans want peace to e ndure in the land. The same with the Letter from Birmingham Jail, Oration talks about resorting to violence if the rights of the people will not be respected and the law wold choose to ruin them instead. They would rather have peace but it is the persecution of the law that forces them to resort to violence.The law that is observed by the whites is said to be morally unjust because it discriminates against minorities instead of defend them. This justification of moral action that is evident in the two previous works mentioned is also evident in Platos Crito. This is a dialogue that will justify the decision of Socrates to stay in prison despite the fact that he was wrongfully accused of doing something that he did not do. Plato made a tone between the just laws in which Socrates obeyed by staying in prison and the morally wrong behavior of those who accused him.As can be seen from the previous readings, the laws that man has created can be morally unjust for those who are disadva ntaged like the black Americans and the native Americans or Indians. Every man has the right to defend himself when he no longer sees the rules to be morally just. Just like King said in his letter, rules were made for the protection of all and not for the privileged few. If people cannot fight for their rights as human beings and are being persecuted, then they have no choice but to defend themselves through the use of violence.The only variety that can be seen from Birmingham Jail is that Socrates opted to stay in prison and not fight against the authorities. He did not feel the need to resort to violence because he was following the just law of not escaping in prison. Kings reasoning for the civil disobedience is being written in letter through a type of reasoning that is inductive. If the government will not respect the rights of the black Americans and not listen to them even through protests of peaceful means, then violence will be used against them. There are universal right s that all people can appeal to.These are the basic rights of man to live, freedom of tongue and expression and many others. There are certain rights that are dictated by the state and culture to protect certain aspects of society. But these laws should not snap off the rights of the people. The laws will become morally unjust if the rights of the people will be stepped on or become endangered. It is true that rights and laws can be in conflict. Thats why there is a need for the world, especially the governments of countries, to listen to the people regarding changes in the law just like the letter of Martin Luther King Jr.

Unexpected Inflation

Unexpected In? ation and Redistribution of wealthiness in Canada Cesaire A. Meh, Canadian Economic Analysis, and Yaz Terajima, Financial constancy One of the about important arguments in favour of price stability is that unpredicted in? ation generates changes in the distribution of income and wealth among discordent economic advan pennyimeimes. These redistributions make it because many loans in the economy atomic number 18 speci? ed in ? xed-dollar price. Unexpected in? ation redistributes wealth from creditors to debtors by reducing the reliable value of titular phrase assets and liabilities. This obligate quanti? es the redistributional effect of unexpected in? ation in Canada.To this end, we ? rst deliver the goods comprehensive demo of the nominated assets and liabilities of various economic sectors and kinsfolk groups. We ? nd that the redistributional effects of unexpected in? ation argon large even out for chances of unhopeful in? ation. The main winne rs ar teen, middleincome househ ageings, who are major holders of ? xed-rate owe debt, and the government, since in? ation reduces the real burden of their debt for twain groups. The losers are high-income households and middle-aged, middle-income households that hold great-term bonds and nonindexed pension wealth. T here is ongoing research on potential re? ements to mo meshworkary policy regimes in countries with low and stable in? ation. In Canada, for example, a systematic review of the current in? ationtargeting framework is infraway (see the varied articles in this issue). An issue that has received comparatively less attention is the redistributional effects of unexpected in? ation. 1 Redistributional effects occur because many savings, investments, and loans in the economy are speci? ed in gold damage (i. e. , not modify for in? ation) unexpected in? ation therefore redistributes wealth from lenders to seizeers by scorning the real value of nominated assets an d liabilities. The analysis of these effects may be important since the welfare costs of in? ation depend not besides on aggregate effects but also on potential redistributional consequences. Our calculations march that, even with an episode of low in? ation, the redistribution can be sizable. While this is a wealth transfer from one agent in the economy to another, a sense of who wins and who loses is essential in order to assess transitional costs and potential public support for reform. The goal of this article is to provide insight into the redistributional effects of in? tion in Canada. The article is a summary of the re centime research of Meh and Terajima (2008). 3 The article proceeds as follows. The ? rst section documents nominal assets and liabilities (i. e. , ? nancial assets and liabilities that are denominated in Canadian dollars and not fully indexed to in? ation) held by different economic sectors and 1 2 . 3 In this article, we focus on in? ation that is either un expected or partially unexpected. If in? ation were completely expected, the change in the real value of the nominal claim would be incarnate in the contract.Hence, there would not be any redistribution. On the other hand, put down-than-expected in? ation redistributes wealth from borrowers to lenders. Meh and Terajima (2008) build on Doepke and Schneider (2006) who document nominal assets and liabilities in the joined States and develop a methodology to compute the redistribution of wealth caused by in? ation. UNEXPECTED largeness AND REDISTRIBUTION OF WEALTH IN CANADA wedge OF CANADA REVIEW wince 2009 43 household groups, eon the second part describes the methodology used to compute the redistribution of wealth induced by unexpected in? ation.Using this methodology and the documented nominal come outs, the third section quantitatively assesses the redistribution of wealth infra episodes of low and moderate in? ation. The ? nal part of the article concludes. Nominal Assets and Liabilities Unexpected in? ation generates redistributions because virtually ? nancial assets and liabilities are speci? ed in money terms. For example, payments on ? xedrate mortgage contracts, bank deposits, non-indexed de? ned-bene? t pension figures,4 government and corporate bonds, and other types of loans are generally not adjusted for unexpected in? ation.Hence, when in? ation is high, the value of these assets and liabilities falls in terms of purchasing power, since the prices of other goods and services go up with in? ation, but payments on these ? nancial claims are ? xed. The extent of the changes in the purchasing power of ? nancial assets and liabilities also depends on the term to maturity, as we will show later on. In this section, we document Canadian holdings by type and maturity in various categories of assets and liabilities. Speci? cally, we look at asset and liability positions for terzetto sectors household, government, and non-residents. We also consi der different groups of households. The objective is to show that, among these different groups of agents, holdings of nominal assets and liabilities differ in both qualitatively and quantitatively important ways. Given that these differences exist, there is potential for redistribution among them following in? ation shocks. (SFS). The NBSA documents the ownership of ? nancial and non-? nancial assets and liabilities by sector. We use the NBSA to compute the web asset and liability positions of the household, government, and foreign sectors.The SFS is a household survey info set on income and wealth. We use the 2005 wave (the up-to-the-minute available), involving about 5,000 households, with weights to produce Canadian aggregates. It provides a comprehensive picture of assets and liabilities. For the sake of consistency, we use the 2005 NBSA and focus our analyses on the year 2005. Categories of nominal assets and liabilities Following Doepke and Schneider (2006), nominal asset s and liabilities are de? ned as all ? nancial claims that are denominated in Canadian dollars and not fully indexed to in? ation.We report net nominal positions (i. e. , assets minus liabilities) in four categories, de? ned as follows6 short-term ? nancial assets and liabilities with a term to maturity less than or equal to one year (e. g. , domestic currency, bank deposits, consumer credit, and short-term paper) Mortgages all mortgage claims Bonds non-mortgage and non-pension nominal claims with maturity greater than one year, including government and corporate bonds and bank loans subsidys employer pension plans without provisions for indexing bene? ts to the cost of living, including both de? ed-contribution plans and non-indexed de? ned-bene? t plans7 We distinguish among these categories because they differ in maturity structure. Differences in maturity will emerge as a key factor in assessing the extent of potential redistribution. Unexpected in? ation generates redi stributions because nigh ? nancial assets and liabilities are speci? ed in money terms. Sectoral positions Data We use devil main data sets, both provided by Statistics Canada the National Balance ragtime Accounts (NBSA) and the Survey of Financial Security 4 5 Non-indexed de? ned-bene? pension plans are those where retirees receive ? xed payments not adjusted for in? ation. Since all businesses are owned by their shareholders, we allocate business sector portfolios crossways the three sectors, based on for each one sectors law holdings. Table 1 shows net positions in each category, as wholesome as the overall net nominal position (NNP) for each sector. Positions are expressed relative to gross domestic fruit (GDP) in 2005. Positive numbers indicate net lending negative numbers, net borrowing. 6 7 For more(prenominal) details, see Meh and Terajima (2008). Another type of plan is the indexed de? ed-bene? t plan. These plans are treated as real assets, since in? ation will no t affect them. 44 UNEXPECTED flash AND REDISTRIBUTION OF WEALTH IN CANADA BANK OF CANADA REVIEW leak 2009 We observe that households are the main net nominal lenders overall, with NNP at 40. 14 per cent of GDP. The government sector, at about 43 per cent of GDP, is the main counterparty borrowing from households. The foreign sector has a positive but small NNP of 2. 85 per cent of GDP. Households tend to lend through short-term claims, bonds, and pensions, and borrow through mortgages.The government sector borrows mainly through bonds it also borrows through short-term claims and pensions. 8 The non-resident sector lends in mortgages and bonds and owes in pensions. 9 These observations suggest that households are the credibly losers of unexpected in? ation, since it lowers the purchasing power of their lending (i. e. , savings). Table 1 Net Nominal Positions as a Percentage of GDP Sectors Short-term claims Mortgages Bonds Pensions NNP Households 12. 25 -11. 94 22. 14 17. 69 40. 1 4 Government -7. 60 3. 19 -29. 67 -8. 91 -42. 99 Non-residents -4. 65 8. 75 7. 53 -8. 79 2. 85Table 2 Nominal Positions as a Percentage of Net Worth by Age Age Cohort under 36 3645 Short-term claims Mortgages Bonds Pensions NNP 4. 83 -37. 95 -2. 63 -0. 05 -35. 80 -1. 01 -13. 57 4. 70 -1. 31 -11. 19 4655 1. 48 0. 07 6. 50 5. 01 13. 06 5665 2. 40 4. 48 7. 90 7. 36 22. 14 6675 9. 00 3. 55 6. 70 8. 68 27. 93 Over 75 12. 27 3. 29 7. 68 8. 65 31. 89 Household groups We now look at the household sector in more detail, victimization the SFS data set. We examine three classes (low-income, middle-income, and high-income) and six age groups (under 36, 3645, 4655, 5665, 6675, and over 75) to observe differences within the sector. 0 Table 2 presents the overall positions for each age group as a percentage of the groups net worth. We observe that the NNP increases with age, implying that households shift from being net borrowers to net lenders as they get older. about of the borrowing of the yo ung is from mortgages. With age, more lending (i. e. , saving) is observed in pensions and in liquid short-term claims. This implies that young households will gain from unexpected in? ation while older households will lose. Qualitatively, these normals generally hold across different income classes, although with different magnitudes.Table 3 shows the positions of the three income classes, with the long-term category combining mortgages, bonds, and pensions. 11 The general warning of borrowing more when young and lending more with age holds across different income classes. We observe, however, that levels of borrowing relative to their net worth among young middle-income and low-income households are relatively larger than they are for high-income households, mainly because the portfolios of low-income and middle-income households are concentrated in residential real estate (mortgages). This implies that while the young generally bene? from in? ation, bene? ts are likely concentr ated among low-income and middleincome households. Table 3 Nominal Positions as a Percentage of Net Worth by Age and Income Class Age Cohort infra 36 3645 High-income Short-term claims Long-term claims Medium-income Short-term claims 5. 83 2. 24 -28. 71 4. 39 7. 01 5. 49 20. 55 9. 07 20. 29 14. 91 18. 97 3. 86 -6. 52 -3. 73 5. 89 -1. 97 18. 40 -2. 36 19. 89 8. 48 19. 03 8. 56 21. 26 4655 5665 6675 Over 75 Long-term claims -95. 27 Low-income Short-term claims 18. 90 Long-term claims -71. 01 -0. 06 -27. 07 5. 04 -8. 30 13. 84 6. 89 12. 58 1. 7 10. 96 12. 79 8 The government sector is a borrower in pensions as it holds liabilities from employer pension plans to its employees. 9 The borrowing in pensions by the non-resident sector indirectly re? ects the pension liabilities of the business sector. As previously mentioned, we allocate business sector portfolios across the three sectors, based on each sectors equity holdings. 10 The classes are de? ned based on a mix of income and wealth . For simplicity, we use the terms low-income, middle-income, and high-income to refer to each class. See Meh and Terajima (2008) for the details. 1 The distribution of households as well as that of net worth by age group and income class is shown in Meh and Terajima (2008). UNEXPECTED INFLATION AND REDISTRIBUTION OF WEALTH IN CANADA BANK OF CANADA REVIEW give 2009 45 How In? ation Causes Redistribution Given the observed differences in nominal positions among households, government, and non-residents, unexpected in? ation should induce redistributions of real wealth. But how do we set about to identify the pattern and quantify the extent of the redistributions? The size of wealth redistribution depends on how economic agents adjust their expectations to in? tion surprises. We follow Doepke and Schneider (2006) by considering two scenarios that provide upper and lower leap on the redistribution of wealth. The upper bound is captured by a full-surprise scenario (here aft(prenomina l) FS). In this scenario, during several years of experiencing in? ation shocks, agents do not anticipate that shocks will continue in subsequent periods nominal interest rates remain unchanged and the in? ation shock lowers the real value of nominal positions each period, regardless of the duration of these positions. Wealth redistribution from in? tion The goal of this section is to use the nominal positions documented above, combined with the methodology just described, to estimate the redistribution of wealth for an in? ation episode. Historically, in? ation episodes with different magnitudes fixed for extended periods have occurred. For example, among 2000 and 2004, the average in? ation rate in Canada was generally higher than the in? ation target rate of two per cent. To illustrate the in? ation-induced redistribution of wealth, we will consider a hypothetical in? ation episode that lasts ? e years with an in? ation shock of one per cent, starting in the benchmark year 2005 . 12 Redistribution across sectors Table 4 summarizes the sectoral present-value gains and expirationes induced by an in? ation episode with one per cent shocks that continue for ? ve years, beginning in 2005, under the FS and IA in? ation scenarios. Table 4 Redistribution of Wealth across Sectors as a Percentage of GDP, with a One Per Cent In? ation Shock Lasting v old age Households Sectors Net Full-surprise scenario -1. 95 -1. 26 Gains 12. 53 7. 61 Losses -14. 48 -8. 86 2. 09 1. 49 -0. 14 -0. 3 Government Non-residents The size of wealth redistribution depends on how economic agents adjust their expectations to in? ation surprises. The lower bound is given by an indexing ASAP scenario (hereafter IA), where agents adjust their expectations after the sign shock to scoot into account the full duration of the shock. This scenario is also known as a gradual in? ation episode, since in? ation is partially anticipated. at a lower place the IA scenario, the nominal acquit crimp i s adjusted upwards to incorporate the in? ation shock. As a result, under the IA scenario, in? tion-induced gains or losses depend on the maturity of the nominal position. The position is locked-in at the pre-shock nominal interest rate until its maturity date but must be discounted using the new nominal rate, resulting in a lower present value. Intuitively, present-value gains or losses for a claim are larger under the FS scenario because all the positions are touched equally by the in? ation episode. Under the IA scenario, however, long-term positions are affected more drastically than shorter positions. Agents are able to mitigate their losses on instruments that mature before the in? tion episode ends. Our calculations are based on a present-value analysis, described in knock 1. Box 2 discusses how we assign terms to maturity for each category of claims. Indexing ASAP scenario It is apparent from the table that, under the two scenarios, the household sector loses, while the gov ernment sector wins. The household sector loss and the government gain are both large. Under FS, the household losses amount to 1. 95 per cent of GDP (or $26. 8 billion), while the government gain is 2. 09 per cent (roughly 5 per cent of NNP). The non-resident sector loses, but the loss is small, just 0. 4 per cent of GDP. To understand these ? ndings, recall that, under FS, gains and losses are directly proportional to the initial nominal positions. Since the household sector is the economys main lender and the government sector is the main borrower, it is not surprising that these sectors are the most dramatically affected by the shock under the FS scenario. 12 Under the current in? ation-targeting framework, in? ation has not exceeded expectations by one per cent for ? ve consecutive years. However, as a hypothetical scenario, we suppose price-level shocks that push in? tion to the upper bound of the range speci? ed in the current framework. The current annual in? ation target is two per cent with the target range extending from one to three per cent. 46 UNEXPECTED INFLATION AND REDISTRIBUTION OF WEALTH IN CANADA BANK OF CANADA REVIEW SPRING 2009 Box 1 Present-Value Analysis of Redistributions1 Full-surprise (FS) Scenario We start with an explanation of how unexpected in? ation changes the purchasing power of a nominal claim. Consider an -year, zero-coupon bond with a total nominal yield at time of . In the absence of unexpected in? tion, the present value of one dollar earned in periods through investment in this ? nancial claim is given by are then summed over all claims to derive the net redistribution. Indexing ASAP Scenario The indexing ASAP scenario corresponds to a quondam(prenominal) announcement at period that, starting from the current period , in? ation will be percent higher than expected during each period for the side by side(p) periods. Assuming that the announcement is credible, bond markets will immediately revise their in? ation expectati ons and incorporate these updates into the nominal yield curve.Assuming that the real curve does not change after the shock and that the Fisher equation holds, the new nominal interest rate used to discount . Therefore, the present a claim is value, , of a claim under IA is , where indicates the exponential function to base . Suppose that at time , there is a one-time surprise increase in in? ation of per cent per year that lasts for periods. Under the FS scenario, since the in? ation shock in each subsequent period is unanticipated, market expectations do not adjust and the nominal term structure is unchanged.As a result, only a proportion, , of a positions present value remains, and this proportion falls as the size and duration of the shock increase. The present value of , is gum olibanum given by this nominal claim under FS, This equation shows that the present value of a onedollar claim at time is independent of the term to maturity of that claim. The present-value gain or los s, , is given by As can be seen from this equation, in contrast to the FS scenario, under IA, a ? nancial position of maturity will be affected only for the periods of its duration, before which the agent is assumed to reinvest at the pre-shock real yield.This is analogous to the agents reinvesting in a claim that offers a nominal rate of return that has been indexed to take the in? ation announcement into account. The present-value gain or loss of a claim of maturity under IA is given by The net present value of gain or loss depends only on the size and duration of the shock and the initial nominal position. The gain is, indeed, proportional to the . pre-shock position, with a coef? cient of If , then there is a gain from the in? ation episode otherwise, there is a loss. In order to derive the total gain or loss of an economic agent (e. g. , a sector r a household), is calculated for each claim with a term to maturity . The gains or losses 1 This methodology to calculate redistribu tion can be applied to compare the size of redistribution under different monetary policy regimes such as in? ation targeting and price-level targeting. This transmit is summarized in Crawford, Meh, and Terajima (this issue) and analyzed in detail in Meh, Rios-Rull, and Terajima (2008). Hence, under IA, the present-value gain or loss depends on (i) the size of the shock ( ), (ii) the duration of the shock ( ), (iii) the initial nominal position , and (iv) the maturity of the claim ( ).On the other hand, as mentioned above, the gain or loss under the FS scenario for any position is independent of its maturity. The IA scenario provides a lower bound for gain or loss on a claim, since it assumes full adjustment of expectations to the path of in? ation following the initial announcement. The total gain or loss of an economic agent is derived in the same way as in the FS scenario, based on the sum of the gains and losses from each claim. UNEXPECTED INFLATION AND REDISTRIBUTION OF WEALTH IN CANADA BANK OF CANADA REVIEW SPRING 2009 47 Box 2 Term-to-Maturity StructureIn this box, we describe how terms to maturity are determined for each claim. For ? nancial short-term claims, we assume that they all have one-year terms to maturity, such that we set = 1. For mortgages, we apply the distribution of ? xed-rate mortgages by term in 2005. 1 The distribution is obtained using the Canadian Financial Monitor data set from Ipsos Reid Canada, which is compiled from a household survey containing detailed mortgage information. Chart A presents the distribution of mortgages across terms of mortgages, weighted by outstanding balances. It shows that the most common term of Canadian ? ed-rate mortgages is ? ve years. Based on the fractions we obtain from Chart A, we assign a weight for each . For example, we assign a 60 per cent weight to . We take a similar approach for bonds. We derive a maturity distribution from quarterly data on the maturity and face value of federal government debt. 2 Chart B shows the distribution from the fourth quarter of 2005. We assume that the distribution of terms to maturity for federal government bonds approximates that for all instruments in this category. For pensions, we focus on two types of pension plans de? ned-contribution and non-indexed de? ned-bene? t plans.For de? ned-contribution plans, we assume that the average investment portfolio is approximated by the holdings of Trusteed Pension Plans. 3 The assets of Trusteed Pension Plans are given in the NBSA. We compute the distributions of these assets over terms to maturity and use them to assign weights to each value. For non-indexed de? ned-bene? t plans, we assume a ? xed stream of annual post-retirement payments. When calculating the present-value 1 The term of mortgage is the length of the current mortgage agreement. A mortgage can have a long amortization period, such as 30 years, with a shorter term, such as 5 years.When the term expires, a new term agreement can b egin at the prevailing interest rate. The term of mortgage, rather than the amortization period, is relevant for our analysis. These data were obtained from the Bank of Canadas Communication, Auction and Reporting System database. See Meh and Terajima (2008) for more details. Trusteed Pension Plans hold approximately 7075 per cent of employer pension plan assets. See Meh and Terajima (2008) for more details. gains and losses of pension assets, we apply the formulas in Box 1 to each payment, then sum all the gains or losses.In assigning the term to maturity of each payment, we set based on the difference between the current age of the household and the age at the time of the payment. Chart A Distribution of Fixed-Rate Mortgages by Term % 70 60 50 40 30 20 10 0 Six months One year Two years Three to four years Five years septette years Ten or more years Chart B Distribution of Government Bonds by Term to Maturity % 15 10 5 0 1 yr. 10 yr. 20 yr. 30 yr. 2 3 48 UNEXPECTED INFLATION AND REDISTRIBUTION OF WEALTH IN CANADA BANK OF CANADA REVIEW SPRING 2009 It is also clear that gains and losses are generally smaller under IA.The household sector loss under IA is 1. 26 per cent of GDP (or $17. 3 billion), compared with 1. 95 per cent under FS. This change is driven by a reduction in the losses associated with the sectors net savings in long-term bonds and pensions relative to the FS case. The change is offset somewhat, since instruments with a shorter maturity are less sensitive to gradual in? ation, and the gains associated with the sectors net debt in mortgage markets shrink relative to the FS case. The government gain drops from about 2. 1 per cent of GDP under the FS scenario to about 1. 5 per cent under the IA scenarioi. . , it shrinks by almost one-third. This occurs because the government borrows through some bonds that have maturities of less than ? ve years. The non-resident sectors losses, although small, increase from 0. 14 per cent of GDP under FS to 0. 23 per cent of GDP under IA. Finally, Table 4 shows gross redistributions for the household sectori. e. , it distinguishes between losses associated with lending and gains associated with borrowing. It should be clear from these results that net calculations substantially inform how much wealth is shifted around. Under FS, the household sector gains 12. 3 per cent of GDP and loses 14. 48 per cent, implying a total gross redistribution of 27. 01 per cent of GDP. In other words, household wealth worth 27 per cent of GDP is reshuf? ed. Under IA, the total gross redistribution is 16. 47 per cent of GDP. Table 5 Redistribution of Wealth across Households as a Percentage of Net Worth by Age and Income Class, with a One Per Cent In? ation Shock Lasting Five Years Age group Under 36 Full-surprise scenario All High-income Middle-income Low-income Indexing ASAP scenario All High-income Middle-income Low-income 1. 66 0. 26 3. 91 2. 66 0. 44 -0. 18 1. 15 1. 15 -0. 54 -0. 74 -0. 3 0. 28 -0. 84 -0 . 76 -0. 94 -0. 42 -0. 83 -0. 82 -0. 89 -0. 17 -0. 82 -0. 86 -0. 81 -0. 56 -0. 34 -0. 55 -0. 19 0. 14 1. 74 0. 13 4. 34 2. 53 0. 54 -0. 10 1. 28 1. 32 -0. 63 -0. 80 -0. 55 0. 16 -1. 07 -0. 85 -1. 26 -1. 01 -1. 36 -1. 34 -1. 42 -0. 69 -1. 55 -1. 45 -1. 64 -1. 15 -0. 53 -0. 68 -0. 42 -0. 16 3645 4655 5665 6675 Over 75 All Redistribution between household types Even though the household sector as a whole loses from surprise in? ation, the loss (or gain) is not uniform across different types of households. For different groups of households, we calculate the redistribution of wealth induced by the in? tion episode described above. Table 5 reports the present-value gains and losses as a percentage of the average net worth of each group for FS and IA. Overall, with respect to age categories, young households bene? t from in? ation and older households lose. On the income dimension, the right column of the table indicates that high-income households lose the most and the loss declines as i ncome becomes lower. Speci? cally, the main winners are young, middleincome households with large, ? xed-rate mortgage debts. Their gain as a proportion of mean net worth is large 4. 34 per cent under FS and 3. 1 per cent under IA. The second group of winners is the young, lowincome group, who enjoy, on average, gains between 2. 53 per cent and 2. 66 per cent of their average net worth. The gains of the young low-income group come largely from their holdings of student loans and mortgage debt. Note that this group actually experiences greater gains under IA. As in the case for the non-resident sector, this occurs when there is a maturity mismatch. More speci? cally, while the gains associated with their net borrowing positions in bonds and mortgages do not vary much between in? tion scenarios, the losses associated with their savings in short-term instruments are mitigated under IA, since these claims mature before the shock has ended. The main winners are young, middleincome househ olds with large, ? xed-rate mortgage debts. More age groups among low-income housholds bene? t from the in? ation episode than those among the middle class or the high-income under FS. This is because low-income households remain net borrowers through to age 56, and therefore the youngest three groups among the low-income are winners. In general, older middle- and high-income households bear most of the losses under the two in? tion scenarios. More speci? cally, under the FS scenario, high- and middle-income households over age 75 are the sectors greatest losers, with losses accounting system for 1. 45 per cent and 1. 64 per cent, respectively, of their respective average net worth. These losses are UNEXPECTED INFLATION AND REDISTRIBUTION OF WEALTH IN CANADA BANK OF CANADA REVIEW SPRING 2009 49 mainly owing to their large positions in bonds and non-indexed de? ned-bene? t pensions. Table 5 also shows that most high-income households lose from the in? ation episode. Older middle- an d high-income households bear most of the losses . . owing to their large positions in bonds and non-indexed de? ned-bene? t pensions. Conclusion In this article, we quantify the redistributional effects of unexpected in? ation in Canada. To this end, we ? rst provide comprehensive evidence of the nominal assets and liabilities of various economic sectors and household groups. We then conduct experiments examining the redistributional consequences of various in? ation episodes. The key ? nding is that the redistributional effects of unexpected in? ation are large even for episodes of low in? ation. For example, during an episode of low in? tion, where in? ation is one per cent above expectations for ? ve consecutive years, the loss of wealth among the household sector as a whole could amount to the equivalent of two per cent of GDP, or $27 billion. Among the main winners are young, middle-income households, who are major holders of ? xed-rate mortgage debt, and the government, since in? ation reduces the real burden of their debts. The losers are a combination of highincome households middle-aged, middle-income households and old households, who hold long-term bonds and non-indexed pension wealth.Non-indexed pension assets play an important role in the losses of old households. A natural question arising from these results is whether these redistributions have implications for the aggregate economy and welfare. These issues are analyzed in recent research by Meh, Rios-Rull, and Terajima (2008), whose ? ndings are also summarized in Crawford, Meh, and Terajima (this issue). Literature Cited Crawford, A. , C. A. Meh, and Y. Terajima. 2009. Price-Level Uncertainty, Price-Level Targeting, and Nominal Debt Contracts. Bank of Canada Review, (Spring) 31-41. Doepke, M. nd M. Schneider. 2006. In? ation and the Redistribution of Nominal Wealth. Journal of Political Economy 114 (6) 106997. Meh, C. A. , J. -V. Rios-Rull, and Y. Terajima. 2008. Aggregate and Welfare Effe cts of Redistribution of Wealth under In? ation and Price-Level Targeting. Bank of Canada Working Paper No. 2008-31. Meh, C. A. and Y. Terajima. 2008. In? ation, Nominal Portfolios, and Wealth Redistribution in Canada. Bank of Canada Working Paper No. 2008-19. 50 UNEXPECTED INFLATION AND REDISTRIBUTION OF WEALTH IN CANADA BANK OF CANADA REVIEW SPRING 2009

Contribution of the Business Sector in Philippine’s Development

Since the end of World War II, the Philippine economy has been on an unfortunate trajectory, issue from one of the richest countries in Asia (following Japan) to one of the poorest. Growth immediately after the war was rapid, but slowed over time. Years of economical mismanagement and governmental volatility during the Marcos government contributed to economic stagnation and resulted in macroeconomic instability.A severe recession from 1984 through 1985 saw the economy shrink by more than 10%, and perceptions of political instability during the Aquino administration further dampened economic activity. But in recent years, the Philippine economy is slowly doing its best to increase its economic development. Due to the blotto post-crisis, the Philippines continues to face challenges and must sustain to achieve economic growth. Thus, the role of business enterprises is essential in pulling up the countrys economic development. ace of the biggest contributions of the business sector in Philippines development is through investments. They invest in society so that nobody falls out of the market. They as well as invest in building and maintaining capital resources to reduce cost of doing improve efficiency and invest in new and innovative technologies that create new work that promote public good. The business sector dominates the Philippine economy contributing a big part to the countrys GDP. These private enterprises hire hands and so uplift employment rate.The Philippine business sector has demonstrated a wide range of innovative initiatives aimed at maximizing their positive social, economic and environmental impacts on the communities where they operate and on the society in general. The business sector does not only provide employment but also has a corporate social responsibility through providing opportunities for education, communications, engineering and financial supports. That is why the business sector plays an important role in the Philippine ec onomic development.

Nike and Human Rights Essay

1. What ethical issues faced by MNCs in their treatment of unconnected workers could bring allegations of misconduct in their operations?Ethical issues may include the violation of fundamental human rights of sweatshop workers such as freedom, speech and discrimination. The treatment of their workers could be deemed unethical by media who construe this view to consumers. Such allegations can and forget have damaging effects with Nike having been taken to court already in the past.2. Would the consumption of third-party independent contractors insulate MNCs from organism attacked? Would that practice offer MNCs a good defensive shield against charges of abuse of their employees?Not necessarily, as Nike will be apply labour which is just managed by another party. They would just be shifting the blame of abusing their employees to hiring someone elses. The connection of the brand to any unethical labour will still be damaging regardless of whether they are directly related or not.3 . Do you think that statements by companies that describe good social and moral conduct in the treatment of their workers are part of the image those companies create and therefore are part of their advertising message? Do consumers judge companies and al-Qaeda their buying decision on their perceptions of corporate behaviour and values? Is the historic do in question (e.g., Made in the USA) now being replaced by a made by inquiry (e.g., Made by community X or Made for Company X by Company Y)?I think that good social and moral conduct is an inaugural part of the advertising and marketing message of any brand. In these quantify more consumers are moving to seek ethically sourced products (such as fair trade coffee), this includes worker conditions and perceptions the consumer may have of the companys corporate activities. The made in question is not necessarily being replaced by made by it is more likely that both questions are beginning to be asked in conjunction with one anothe r.4. Given the principles noted in the case, how can companies comment on their positive actions to promote human rights so that consumers will think considerably of them? Would you propose that a company (a) do nothing, (b) construct a corporate code of ethics, (c) align itself with some of the universal covenants or compacts prepared by transnational agencies?It would be wise for Nike to develop a corporate code of ethics to help foster what is seen as acceptable standards within the company and its operations. It would also be beneficial to comply with international practice standards.5. What does Nikes continued financial success, in spite of the lawsuit, suggest about consumers reactions to negative forwarding? Have American media and NGOs exaggerated the impact of a firms labour practices and corporate social responsibility on its sales? How should managers of an MNC respond to such negative advancement?Nikes continued success suggests that consumers may not be as deterred by negative publicity as it has been suggested. Nike still remains one of the biggest world-wide brands today and perhaps the value of the label is stronger than damaging publicity. American media and NGOs may have sensationalised the impact of CSR on sales to some extent, although it is deemed important by some consumers, it seems that demand for Nike good remains strong regardless as many are more swayed by celebrity endorsements than working conditions. Managers of MNCs should respond to unfavourable publicity fixing the exposed issue, undertaking community outreach programs, and implementing pre-emptive measures to ensure that bad publicity will not be an issue in the future.

Postmodernism and Politics Essay

Postmodernism has revealed how science has been political largely because of how postmodernism approaches science, for instance. Postmodern thought does non consider the scientific method as the sole basis for determining the truth or understanding the world as there are many other approaches which, for all we know, may alike be more or less valid (Cole, Hill & Rikowski, 1997, p. 189).In doing so, postmodernism views the scientific method as one of the reasons why science has dominated not only the academic circles but the bastion of human knowledge in its entirety. Basically, anything that has been established by the methods of science has been collectively understood as the truth or the closest that we can get to truth (Mirchandani, 2005, p. 93). The result is simply staggeringscience has perish cause itself in shaping the course of human civilization. atomic number 53 example is how the development of the atomic bomb through careful scientific research and experiment has led t he way to the contemporary proliferation of nuclear power. Countries have become all the more powerful because of their possession of nuclear armaments that could easily wipe away the threats to their sovereignty. Another example is the way in which science has created technological meaning for hastening the production and distribution of goods across geographical boundaries.The scientific advancement in terms of cyber technology and the internet has contributed to the increase in the capabilities of local and global businesses. In effect, large corporations have gained more ship canal to expand their wealth and, therefore, their influence over governments. Postmodernism has made all of these circumstances clearer than before although critics point out that postmodernism tho reveals the power of science and the other ways of explaining why science has gained such wide influence over various societies (Lee, 1999, p. 744).In essence, postmodernism has revealed the breadth of the inf luence and power of science over humanity inasmuch as science has largely contributed to the assimilation of political power and force over the years. Other ways may be developed in explaining how science has behaved in more recent times in changing the political landscape of the world, but postmodernism will agree that those ways do not necessarily stand of lesser significance than the scientific approaches.ReferencesCole, M. , Hill, D. , & Rikowski, G. (1997). Between Postmodernism and Nowhere The Predicament of the Postmodernist. British Journal of Educational Studies, 45(2), 187-200. Lee, J. (1999). The Utility of a Strategic Postmodernism. Sociological Perspectives, 42(4), 739-753. Mirchandani, R. (2005). Postmodernism and Sociology From the Epistemological to the Empirical. Sociological Theory, 23(1), 86-115.

Dow Chemical’s Bid for PBB in Argentina Essay

1. (5 pts) Using the values from exhibits 9, 10 and 11, a confinesinal growth rate of 0%, and a give the axe rate of 20%, what is the value of each of the three investment pegs? 2. (30 pts) Describe the two most relevant factors (only those related to the fact that the acquisition is in Argentina and non in the U.S.) that in your opinion add uncertainty to those cash flows. Please list each factor with a short explanation of why it is relevant, whether it is a diversifiable bump (assume Dows investors are global) and the likelihood that it will affect PBB. 3. (20 pts) For question 3 please state which statement you agree with and why. The numbers shown are there to stand an idea of sensitivity, they are not precise and there is no precise answer to these questions.That is, in the absence of much, much more information, there is no pass water right answer (though there are many wrong iodines). Your reasoning is what matters most. Suppose that today is 1997 (theres nothing it emly special about 1997, I could have chosen any other year near 1995, the beginning of the valuation). a. The sensitivity of 1998 revenues, measured in US$, to 1997 changes in the Argentine peso against the dollar is such that a.i. a 40% devaluation of the Argentinian peso would repeat into a 40% fall upon in revenue, measured in US$, a.ii. a 40% devaluation of the Argentinian peso would repeat into a 20% fall in revenue, measured in US$a.iii. a 40% devaluation of the Argentinian peso would translate into no fall in revenue, measured in US$, a.iv. a 40% devaluation of the Argentinian peso would translate into a 20% accession in revenue, measured in US$, a.v. a 40% devaluation of the Argentinian peso would translate into a 40% increase in revenue, measured in US$.b. The sensitivity of 2010 revenues, measured in US$, to 1997 changes in the Argentinian peso against the dollar is such that b.i. a 40% devaluation of the Argentinian peso would translate into a 40% fall in revenue, m easured in US$, b.ii. a 40% devaluation of the Argentinian peso would translate into a 20% fall in revenue, measured in US$, b.iii. a 40% devaluation of the Argentinian peso would translate into no fall in revenue, measured in US$,b.iv. a 40% devaluation of the Argentinian peso would translate into a 20% increase in revenue, measured in US$, b.v. a 40% devaluation of the Argentinian peso would translate into a 40% increase in revenue, measured in US$.c. The sensitivity of 1998 exists, measured in US$, to 1997 changes in the Argentinian peso against the dollar is such that c.i. a 40% devaluation of the Argentinian peso would translate into a 40% fall in costs, measured in US$, c.ii. a 40% devaluation of the Argentinian peso would translate into a 20% fall in costs, measured in US$, c.iii. a 40% devaluation of the Argentinian peso would translate into no fall in costs, measured in US$, c.iv. a 40% devaluation of the Argentinian peso would translate into a 20% increase in costs, measu red in US$, c.v. a 40% devaluation of the Argentinian peso would translate into a 40% increase in costs, measured in US$.d. The sensitivity of 2010 costs, measured in US$, to 1997 changes in the Argentinian peso against the dollar is such that d.i. a 40% devaluation of the Argentinian peso would translate into a 40% fall in costs, measured in US$, d.ii. a 40% devaluation of the Argentinian peso would translate into a 20% fall in costs, measured in US$, d.iii. a 40% devaluation of the Argentinian peso would translate into no fall in costs, measured in US$, d.iv. a 40% devaluation of the Argentinian peso would translate into a 20% increase in costs, measured in US$, d.v. a 40% devaluation of the Argentinian peso would translate into a 40% increase in costs, measured in US$.4. (10 pts) Based on your answers to question 3,a. What would Dows short- take in realise exposure to the Argentinian peso be? b. What would Dows long-run exculpate exposure to the Argentinian peso be? c. If Dow w anted to hedge its short-run net exposure to the Argentinian peso, what would it have to do? Please provide three different alternatives it could use to hedge that pretend and explain which one is likely to be the cheapest. d. If Dow wanted to hedge its long-run net exposure to the Argentinian peso, what would it have to do? Please provide three different alternatives it could use to hedge that risk and explain which one is likely to be the cheapest.5. (30 pts) In light of what youve answered in questions 2 through 4 and other material from class, please state whether the snub rate that Dow should use for this valuation is larger, smaller, or the same as in the U.S. 6. (5 pts) Based on your previous answers, should Oscar Vignart bid for PBB, and if so, how much? (Maximum 100 words.)1. (Exhibit 1)The starting time stage has a value for the 51% of PBB of 160.833 million of dollars. The second stage has a value (100%) of 182.62 million of dollars. The third stage has a value of 92. 66 million of dollars.The first job that involves a risk factor for investors to Dow is political risk. The economic and monetary policy implemented by the Argentine government at this time, in upstart years has allowed the country to recover from a decade of crisis and seems to work pretty well. However, the risk that these maneuvers are counterproductive in the long run is alive.In that fictional character Dow suffer nearly problems. In fact, most of the production in the three stadiums and sold locally (PBB 100%, 89% Polisur, 31% of capacity due to the siding of stage 3) and, if there were problems due to the political instability, most of its current and authority customers (formed by small and medium-sized businesses that use POLYETHILENE to produce good consumer) could struggle and eventually fail. That would be a serious reduction in the margins of the Dow and in its cash flows.The second problem is related to foreign transpose risk. Regarding this risk factor should m ake some clarifications. For the moment the government is pursuing a policy of gold pegging, for which the exchange rate and artificially set at 1. However, this condition may no daylong be sustainable. In this case if it were abandoned is easy to imagine the effect it would have on markets, putting in serious condition, the Argentine economy because of drop of confidence in its solvency and this would lead to a sharp appreciation of the dollar on the weight.This situation is not particularly influential on the budgets of 3 stages where Dow is firing to invest because both revenues and the variable cost (about 90% of total costs) are in dollars and only a small centre of variable and fixed cost are in Peso, and anyway with devaluation of Argentinian currency would lead to an advantage per Dow (needed fewer dollars to collapse in Peso, and those costs are slower to adapt to impertinently exchange rates).On the contrary the negative effect of the abandonment of the peg you woul d in Argentine petrochemical market. In fact, polyethilene prices are in U.S. dollars and with the devaluation of the peso (the currency in which the players downstream of Dow are cashing) Dows Argentinian customers could find themselves in difficulty to support prices in dollars, which are international based. That would lead to a radical gloam in the profitability of Dow. Finally, it is important to emphasize that, also selling outside the country, Dow would see margins decline due to higher costs of transportation and duties. 3.a. ii. PBB Is cashing in dollars so a fall of 40% of Peso would not have a direct impact of translating the cash flow of PBB into dollors. However PBB operates in Argentina, and its revenues are fasten to the ability of its customers to deprave in dollars. With such a devaluation of the Argentine pbb customers may find it difficult to pay but it is said that everyone is unable to do so because they could be covered in the market for coins. pbb also may move and take advantage of the amount of unmet necessary in Latin America.However, this in a year is not feasible to perfection then a reduction in revenues of 20% is predictable. b. iii. The reasoning is similar to that outlined above. However, in this case one can imagine that pbb reacted to the change occurred 3 years before or however that the situation has changed. If the economy has recovered, itll be exporting outside of Argentina for the amount of capacity can not be sold in argentina, decreasing their margins because of the cost of export revenues, but keeping to the level in the case of PEG. c. ii. public lecture about the good things are different costs. Even tough much of the costs are in U.S. dollars for pbb there is a part of them that is remunerative in pesos.It is part of the variable costs and fixed costs. However a devaluation of the peso would be a gain for PBB, which, cashing in dollars, will convert fewer dollars to pay in pesos. As mentioned, however, this e ffect would be taken with a not too substantial part of the costs of pbb, and also it can be fictional that during the year some of these costs are aligned in part to the conversion values before the write-down for an inflationary process. d. iii. The reasoning is similar to that set forth above, however, it is assumed that in the course of 3 years, the monetary costs of PBB align to those pre devaluation, thus not allowing to benefit from the effect devaluing.a. the net peso short run exposure is about the fixed cost, other variable cost and taxes, for an amount of (EXHIBIT 1) of 116.7 million of dollars. b. the net long run peso exposure is 374.22 million of dollars. c. to hedge a currency risk the alternatives are forwards (or future) contract options currency swap. The best alternatives in the short run are the forward, they are cheap (no gateway expense) and very versatile.To hedge the amount the just have to enter in a contract of the opposite direction of what they need. I n this case they have to buy the total cost in pesos ad the current exchange rate in dollars. Using options it would much costly because of the option premium which has to be paid once you entered in such a contract. Anyway, because you will only exercise your right if it the exchange rate is aureate, they leave gain opportunities in exchange rates.The currency swap doesnt fit well the short run exposure because of the length of such a contract and and the cost to be inside that winning of contract if there is not an existent debt. d. In the long term forward could be costly for the premium that the controparty may put in the exchange rates (they are commonly banks in over the counter markets), and because for long term the market could be illiquid. In this particular case the long term are just 3 years so utilize forward could free be a good choise.Options in the long term are not good because it is difficult to find in markets contract with such long expiring date (and exact d ate in order not to gravel in basis risk) and because you have to buy several contract. Swap could be an idea, but as forward dont allow gains on favorable exchange rate a currency swaption (option on a currency swap) could be an idea, but looks costly at time of entering in the contract.The discount rate that Dow should use, should be higher than that used for evaluating such an investment in the United States. This is due to the fact that the rate of directween 8-10% used in US incorporates a risk premium relative to the U.S. market, which is different from that required for a similar investment in the Argentine market. In fact, looking at the cognitive process of American and Argentine sovereign bonds, we see that the latter are higher than the U.S.. this difference is no more than the country risk premium that an investor requires to invest in Argentina compared to investing in the U.S.. this spread can be introduced into the calculation of the value of the correct discount r ate using the following formulaKeu is place with the unlevered cost of capital, or the return required to invest in certain asset class. With rf the risk-free return to us, u with the unlevered beta for the sector (plastic and specialize chemicals) with rm the market return and cpr country risk premium. Now, in the specific case under investigation in research on international databese you commit that the unlevered beta of the sector is close to the unit.You can also add that in the long term all beta approaching market beta (as a consequence of the Efficient Market Theory that states that as all information becomes known, the market will settle to its proper level as everyone will be able to make correct choices), and therefore since our beta in databese is equal to one, the hypothesis of adjusted beta only reinforce this assumption. So in this particular case it can be assumed that the country risk premium can be simply added to the discount factor used for an American investme nt. The problem is now correctly assessing the market risk premium. You can see from the exhibits proposed (Exhibit 2) that in recent years, with the PEG CPR has fluctuated around an average of about 700 basis points. disdain the markets already incorporate the possible abandonment of the peg and its causes is not difficult to think that if that happened the cpr suffer a considerable leap and this estimate energy be not prudent, but we must remember that the market is not only Argentina in the presented 3 stages, and potentially due to the increased demand in Latin America (exhibits 3), Dow could be exported elsewhere. A CPR of around 5-7% is so reasonable, for a total discount rate between 13-17%.By using the rate of growth proposed in the case of 3.3% per annum and a discount rate of 16%, the NPV of 51% of PBB is of U.S. $ 207,476 million. This amount is not however the correct the price of the bid. skillful the cash flows are not enough to assess the correct price to offer the Argentine government. As first analysis the two competitors do not seem serious bidder in the auction because they do not meet the request of combined 5 billion net worth.There are still 10 days at the closing of the auction and if they succeed caming forward with a capital increase bringing their combined wealth over 5 billion, then Dow should also consider the fact that it can benefit not only the cash flows of PBB but also those of the 3 stage of the project, which provide in part an increase in production capacity of PBB and especially of its efficiency.A price around $ 300 million should keep out other potential bidder, which they cannot reach the advantage of being the mainly argenitian producer . However, this scenario is not credible given the close smebra operating times were competitors to meet the demands of the government, then the minimum bet request for $ 150 million should be sufficient and would allow Dow generate a significant positive NPV. 150 ultimately is ultimat ely the value to offer.