Quantitative Easing After the Financial Crisis

Quantitative Easing After the Financial Crisis Jose Nunez The global financial crisis started in August 2007 and lasted to 2009, which was the collapse of the subprime mortgage market (lenders with higher interest rates demand, and borrowers that can repay their loans) that led to a huge amount of losses to financial institutions in that time. The crisis led to one of the worst markets in the past 50 years. The impact it had on the economy was severe, it lead to a downward growth for U.S. companies, and an increase of uncertainty for the U.S. economy. The causes of the 2007- 2009 financial crisis were: financial innovation in mortgage markets, agency problems in the mortgage markets, and the role of asymmetric information in the credit rating process. There weren’t as many innovations back then, so before the year 2000 only credit worthy borrowers could get mortgages unlike others that didn’t have good credit. After advances in technology and new statistical techniques, that led to better evaluations on credit risk for a new risky loan to be made. FICO was developed by the Fair Isaac Corporation, which just predicted the outcome of how likely it was for a borrower to default on their loans and not pay the loan back. By lowering the cost of transactions, newer technology was able to bundle smaller loans that were similar to mortgages into debt securities. With these factors the banks were able to give out subprime mortgages to borrowers with less than good credit scores. Also, there were agency problems in the market, the brokers who made the loans usually did not make an effort to see whether the people taking the loans could actually pay the loans back, in other words they just gave out the loans to almost complete strangers that they knew very little about and they did not have the same interest as the investors had; once the broker earned his or her commission from the loan he or she did not care about the whether the borrowers paid or did not pay the loan off. Credit rating agencies were also a factor because of their asymmetric information; they were telling clients how to structure financial instruments at the time they rated the products so different information was being passed from firms to the borrowers. The effects it had on the U.S. economy were; housing prices went down, many subprime borrowers were finding that their mortgages were going underwater meaning that the house value was falling below the amount of the mortgage. Many homeowners just walked away from their homes giving the keys back to the lenders because the prices were going down. The default on mortgages rose tremendously, which led to many foreclosures. Value of mortgages backed securities and CDOs went down as well, and left the value of those assets to banks and financial institutions. Many of the well-known firms from had to be sold off to other larger companies for less than what they once worth and others had to file for bankruptcy. With all the things that happen in 2007-2009 in the economy, the crisis did not lead to a depression because of the actions of the Federal Reserve and government bailouts of the financial institutions but many call it a â€Å"great recession† instead. The economic recovery has been slow because people are now scared to invest their money in the markets and do not what to take on other risks, jobs are going overseas, inflation is rising, and economies of other countries are going down as well. Michael Farr said in an article from the Huffington â€Å"Corporate managers are just doing what works. Following the financial crisis, investors are not in the mood to take big risks. They would rather have the certainty that comes with higher dividend payments and increased stock buybacks†. When the economy is about to slip into a recession or depression the government uses a tactic called quantitative easing. Quantitative easing is when the central bank makes purchases from the market to bring down the interest rates so more people can have money in their pockets to spend and invest in the market. Federal Reserve gives the financial institutions money so they can lend out to the consumers and increase liquidity. Some of the down sides of quantitative easing are that it can cause inflation to increase due to being a certain amount of goods that are being sold when the money supply of the consumers has increased, and another is that instead of the banks lending out the money that was meant to be loaned out to people or companies was being kept by the banks instead. This strategy of the government in our last financial crisis was not really affective because the banks kept the money for reserve instead of lending it out the people and companies to increase liquidity and s pending. Many articles have been saying that the government has ended QE but according to an article by Terry Burnham  on pbs.org argues, By all accounts, the  Federal Reserve ended its bond buying program, known as quantitative easing, at its policy meeting at the end of last month. Over six years, the central bank bought $4.5 trillion worth of mortgage-backed securities and Treasury bonds. But since the beginning of this year, the Fed has been gradually drawing down its purchases by $10 billion a month to now, zero. It’s not that simple, though, says economist  Terry Burnham. The Fed is continuing what he calls â€Å"Stealth QE,† or the purchase ofmorebonds with the interest the Fed earns on the bonds it has already purchased. In order to stop that, he writes, the Fed would need to shrink its balance sheet by the amount of interest that it earns. Deleverage is when banks start to lose capital so they fall back on loaning money to others. They try to reduce the debt they have by selling their assets. Losses on their loans they gave out begin to drop in value which drops the net worth of the banks and financial institutions. Tejvan Pettinger said â€Å"To reduce debts people sell off assets to gain liquidity. Selling assets causes fall in the price of shares and house prices. Falling house prices cause lower consumer spending, negative equity and more losses for banks.† With less capital the banks and financial institutions have, the more risky they look towards others causing lender-savers to take out their funds. The decrease in funds will mean fewer loans to produce investments. Deleverage hurts the economy for those reasons. Globalization is when different countries trade with each other things such as products, ideas, aspects of their cultures, and other subject matters. Globalization has been increasing and has been getting easier due to the fact of newer and more advanced technology that has been invented till today to help us communicate with each other and transport product from one place to another. With globalization the cost of goods that we are buying that are coming from different parts of the world are low, compared to if we were to make them here because, it cost less for others to make it in their own country. Also the variety of goods within a country will increase because maybe we can’t produce certain goods here like other countries are able too. With globalization we have free trade, promoting jobs, keeping cost of goods low in the economy, and it’s making business more competitive thus stimulating the economy. Globalization also has a negative impact on the economy, that i s jobs are being moved over seas and outsourcing jobs to other places in the worked. The rich will continue to get richer and people looking for jobs will have to take on new jobs for less money because companies are moving out of the country. Both inflation and deflation can have a negative impact in the economy if inflation and deflation rises are severe. Inflation means the prices of goods and services are going up, lowering the purchasing power of the people and lowering the value of the dollar. A certain amount of inflation can also mean that we have a healthy economy because prices of goods and services will continue to go up. Deflation is the opposite of inflation, so instead of the rising prices of goods and services the prices are falling. When deflation is happening people tend to save more money and spend less because the value of the dollar is increasing. By not spending more the demand for goods and services drops and unemployment increases because not many people want to buy things. Deflation can be caused by a decrease in spending by the government, and people. There are also pages that say QE can also lead to deflation. The Wall Street Journal said â€Å"Nearly a decade after Japan’s central bank fi rst experimented with the policy, the country remains mired in deflation, a general decline in wages and prices that has crippled its economy.† Moderate levels of both inflation and deflation are normal have little effect on the economy. Works Cited Burnham, Terry. â€Å"So you thought quantitative easing was over? Think again† PBS News Hour. 24 November 2014. Farr, Michael. â€Å"What Is Causing the Drag?† The Huffington Post, 21 November 2014. Mishkin, S. Frederic. â€Å"The Economics of Money, Banking, and Financial Markets Tenth Edition.† Colombia College. Pearson, 2013. Print. Pettinger, Tejvan. â€Å"Paradox of Deleveraging.† Economics Help, 6 May 2009. WashingtonsBlog. â€Å"Why QE May Lead to DEFLATION In the Long Run.† Washington’s Blog. 18 November 2014.

Mcdonalds And Computer Systems Information Technology Essay

Mcdonalds And Computer Systems Information Technology Essay McDonalds is one of the fast growing and wide available fast food chain of the world. It has developed a global recognition a competitive advantage all over the world. Technology is the new paradigm of assessing a business performance and success. In our discussion, we will discuss that how McDonalds is able to manage its computer systems. In the start, we will discuss the major component, subcomponents and performance requirements of computer systems. Then we will discuss the operating systems and suggest a compatible operating system to be used with an organization. Thirdly, there will be a discussion about how can we design a computer system keeping in view the end user requirements and organizational goals. Finally, we will test our designed computer system for example, it is properly designed or note keeping view the organizational goals, functional fitness and health and safety of end users. Introduction: As we all know that McDonalds is one of the most growing fast food chains of the world. It has a very diverse system of operations and management. Today due to the recent advancements in technology, McDonalds has developed such a computer and information technology system to manage its operations which has now become a core competence for McDonalds against its competitors. Technology can be a great competitive advantage against competitors if it is used efficiently and correctly. In our discussion, we will try to view technology and computers as a part of operations strategically. First of all, we will investigate the computer systems of McDonalds. Outcome 1: Investigation of Computer Systems P1: Machine components or sub systems appropriate to given task: If we see the operations of McDonalds, then we can easily analyze that due to wide spread and diversity of McDonalds operations, we need a complicated, complex and flexible internal computer database system. This system is needed in such a way that all the departments such as Marketing, Finance and Human Resources should record their operations and data in one database system for integrity and convenience. Talking about the sub systems, we need to develop such a strong subsystem to develop a strong integration in operations but with customer convenience and satisfaction. In terms of machine components, we need CPUs, Display Monitors, Networking Designs and Operating System Software. On the customer side, we need to develop a convenient system to make customer experience better and to increase our sales. Due to the dramatic increase in internet and web users, it could be a powerful strategy to go online for selling merchandise. Unfortunately, McDonalds has not developed such a system yet to deliver goods to customers. They have developed a system of placing orders on phone in which goods like burgers are delivered directly to consumers. Finally, we should develop such a computer system which could provide us convenience, integration and better experience for customers. P2: Evaluation of the Performance of Selected System: The system above we have suggested for McDonalds has a large number of advantages which are as follows: Integrity and Reliability Speed of Operations Enhancement of Customer Experience Control and Audit And the main disadvantages could be: Complexity of Operations Higher Costs But if we evaluate the advantages and disadvantages of selected system then we can see that advantages are more than disadvantages. The advantages of an enhanced computer system may easily overcome the costs of adopting such a system. If we see McDonalds, they have already installed the complete system as we discussed above, but there is small discrepancy that they are not yet online to sell their products. If they add this thing in their strategy, it would be a source of competitive advantage. The reason for is that mostly the online shoppers are à ¢Ã¢â€š ¬Ã…“Youngstersà ¢Ã¢â€š ¬Ã‚  and these youngsters are the most frequent buyers of fast food than the population of other ages. (Associated Press, 2004) (Meena Kumari Rajani, M. S. Chandio, 2004) Outcome 2: Investigation of Operating System P3: Functions and features of different types of operating systems: The different kinds of operating systems are Windows, Acorn Computers, Amiga, Apollo Computers, and Apple etc. The selection of a operating system purely depends on its efficiency, known quality and its compatibility with the organization systems. The different categories of operating systems are: technology, ownership, usage, working state and licensing etc. Microsoft is one the most extensively and widely used operating system in the business world. We think McDonalds being a fast food chain must adopt Microsoft as its operating system due to its known quality, compatibility and integrity. The basic features and functions of Microsoft windows are: Most Widely Used Integrity and Reliability Speed of Operations Another important function of windows is that it is mostly compatible with latest World Wide Web. There is some news about the compatibility issues of other operating systems. Another important function of windows is that it provides more network storage than any other operating system. Most of the computer systems are designed only for Microsoft and it works easily with the older computers. P4: How to customize operating systems: There is a large number of operating software which can be used to customize our operating systems. For example for customizing windows we can use Microsoft word, excel, works etc. For Mac, there is also much software for customization. If we analyze the operations of McDonalds, then by adopting windows, we can customize this operating system and it can be made flexible to use. For writing reports about daily sales or new recruits, we can use Microsoft word. Similarly, for financial reporting, we can use Microsoft Excel. For enterprise resource planning there are a large number of options available. For example, we can use SAP for as an ERP system for McDonalds. For Customer Invoicing, we can again use Microsoft word or Microsoft excel. This customization has also an advantage for us because the numbers of windows users are much more in world than Mac or other operating system users. The McDonalds is operating through franchising system in almost all the countries of the world (McDonalds Official Website, 2007). There are a different operating systems being used in different franchises of McDonalds. It could become a problem and inconvenience to control operations. We think McDonalds, should develop a single operating system and a world wide database to better manage and control it s operations. Outcome 3: Designing a Computer System P5: investigation and identification of the key components for a computer system for a particular user: The key components required for an individual totally depends on the usage and responsibility of a particular user. We can take an example, for example at the front desk needs a complete Central processing unit plus some accessories such as printers for printing invoices. Similarly the accounts department needs to have almost all computer accessories and components because they need to do financial recording and reporting. Similarly the marketing managers need laptops because they to analyze the consumers taste and habits. The higher management needs some extra system software to monitor the activities of the organization. Now will try to develop and investigate the key components for a marketing manager at McDonalds. A marketing manager needs to travel to different areas for making strategies about market segmentation and product positioning. Moreover, McDonalds is also operating in a whole world with diverse cultures and tastes. It has to face the challenges of different cultures and marketing managers need some research work to be done. Thirdly, they need to manage and direct their subordinates. Also, marketing managers need to communicate with the higher level management. Keeping all the function in mind, a marketing manager needs a LAPTOP with wireless internet connectivity for convenience and flexibility. Laptop is helpful because it will not affect the works of a manager while he is shifting places or travelling. Secondly, through internet connectivity, it can guide and manage subordinates through emails. P6: Complete computer system to suit a given task: Let us elaborate more on designing a special computer system for a special task. We will take human resources for McDonalds for our point of attention. McDonalds is a global organization and it operates is different parts of the world. Due to its operations in diverse parts of the world, it needs to hires from local countries to lower its cost and better operations. Human Resources Department of McDonalds has to face different kind of challenges to meet this objective. For example, interviewing candidates from different parts of the world is nothing more but a challenge. They need a computer system with complete components plus accessories such as printers and faxes etc. They also need internet connectivity. This will help them to interview candidates from different parts of the world and their efficient screening. Moreover, they can email candidates or can communicate with them online through internet connectivity. Moreover, they can publish their reports using Microsoft word or excel. They also need projectors and video conferencing to train their employees and subordinates. A proper internal database system must be designed to develop integration and convenience of operations. For example, Human resources department can access personnel information through anywhere in the world. This can help them in efficient personnel planning and employee database. Today, McDonalds is using the Human Resources Information system for this purpose. It is easy for the operation managers again to send reports to the human resources department for internet connectivity. Moreover, employees can easily report back to human resources department in all their organizational problems. Outcome 4: Testing the Computer System P7: Planning that check system hardware and software components using standard techniques: We can adopt systems development lifecycle for managing and checking the computer components just like McDonalds does. We can divide this checking and audit in three sections: Initiation phase, Planning Phase, Designing Phase. In the initiation phase, we can firstly assess the strategic business objectives and can have useful insights about our business. This step involves strategic business objectives and technology goals, expected benefits from adopting a computer system, expected and potential organizational changes, and business regulations and laws. Then we can move to the functional requirements and checks such as end user requirements, information and internal security requisitions, operating systems compatibility and adoption, and internal or external interface requirements. Thirdly, Project management and risk management must be considered. Finally, while selecting a computer system, alternative solutions must be considered. In the Planning phase, we need to plan about the rules and regulations and compatibility of technology with the organizational culture. In this phase, we can check and plan that if a computer system is compatible with the organizational culture or not? Secondly, based on the roles and controls of end user, we can analyze the functional fit of particular computer hardware or software requirement and availability. In the design phase, we can design or REDESIGN a computer system after considering the organizational requirements and end users convenience and efficiency. In our example of McDonalds, we can easily analyze that although McDonalds has a good computer system and management but a lot more needs to be done to avoid any future threat from competition. (www.ffiec.gov, 2009) P8: User Documentation for Computer System: User documentation is the process of discussing and experimenting during a project or in an organization. This system is really important to implement. It includes goals, theories, roles, method, mechanics, and benefits. Goals involve the target assigned to each user in documentation. Well in case of computer sytem, it is the target of a user which he has to achieve using a system. For example, in the example of McDonalds, a sales officer need to properly use computer systems to reach potential sales. Theories involve the purpose or organizational objectives and visions. Users should work under the theories of organization. While roles, method, mechanics and benefits are all associated with user and all these things are important. (Pacific Northwest Software Quality Conference, 1991) P9: Security Policy for the System: The Computer system can be secured by installing proper antivirus software like Norton Antivirus. Proper internet security applications software must be used to prevent the systems from any threats. Moreover, the email monitoring or screen capturing of emails is also practiced by some organizations but it can give rise to a large number of ethical issues like the privacy of employees. Moreover proper firewalls can also be installing to overcome this issue. All these practices are adopted by McDonalds. P10: Health and Safety Requirements of Systems: Proper measures should also be taken while implementing a system. For example, sitting long time against computers can damage the eyesight end users. So proper rays blocking screen must been used with display monitors to prevent employees from the threats of eyesight. McDonalds is doing well in this area by offering its employees a proper balance between work and home. (McDonalds Official Website, 2009) Conclusion: From the discussion above, we can see that McDonalds is a global organization and it has developed a strong computer and information technology system in its operations but there are also some defects in it. All the things we discussed above are important for having a powerful and successful computer system. For a Global Organization like McDonalds, A proper consideration and attention must be paid to I.T Section to meet global challenges.

Paradise Lost Essay -- Analysis, Milton

The seat of faith resides in the will of the individual and not in the leaning to our own reasoning, for reasoning is the freedom of choosing what one accepts as one’s will. In considering the will was created and one cannot accuse the potter or the clay, Milton writes to this reasoning, as â€Å"thir own revolt,† whereas the clay of humankind is sufficient and justly pliable for use as a vessel of obedience or disobedience (3.117). The difficulty of this acceptance of obedience or disobedience is inherent in the natural unwillingness in acknowledging that we are at the disposal of another being, even God. One theme of Paradise Lost is humankind’s disobedience to a Creator, a Creator that claims control over its creation. When a single living thing which God has made escapes beyond the Creator’s control this is in essence an eradicating of the Creator God. A Creator who would create a creature who the Creator would or could not control its creation is not a sovereign God. For who would not hold someone responsible for manufacturing something that could not be controlled and consider it immoral to do so? To think that God created a universe that he has somehow abdicated to its own devices is to accredit immorality to the Creator. Since the nucleus of Milton’s epic poem is to â€Å"justifie the wayes of God† to his creation, these ‘arguments’ are set in theological Miltonesque terms in his words (1. 26). Milton’s terms and words in Paradise Lost relate the view of God to man and Milton’s view to the reader. Views viewed in theological terms that have blazed many wandering paths through the centuries to knot up imperfect men to explain perfect God. To justify the ways of God is a well-trodden path, but there is more to only one path. For if... ...o tensions. Paul the apostle wrote by the same Spirit that Milton claimed that the Potter has the power over the clay and by the riches of God’s mercy he shall show mercy upon who he wants to show mercy. Theologians of history, Augustine, Wyclif, Luther, Zwingli, Calvin and others all held this doctrine of predestination and taught it with vigor. With vigor predestination stands in Scripture and the challenge for Milton was to demonstrate the Father is reasonable, but at the same time God is the Almighty. So where does Milton’s views stand in relation to a perfect God? As others before "of Providence, Foreknowledge, Will and Fate, Fixt Fate, free will, foreknowledge absolute," in the Apostle Paul’s reply "O man, who art thou that repliest against God? Shall the thing formed say to him that formed it, why hast thou made me thus" (2.559,560- Romans 9:20 K.J.V.)?

Characters as Portrayed Through Themes and Images in The English Patien

Characters as Portrayed Through Themes and Images in The English Patient       While the four main characters of The English Patient are extremely powerful, and important to the reader's understanding of the story, they cannot stand alone without the patterns of imagery, symbolism and metaphor which underpin the text, and offer a complexity which extends beyond the literal level. These patterns reveal information about each character, and provide significant links between characters and ideas which lead to a greater understanding of the novel. Likewise, the plot would have little impact upon the reader were the novel not so densely coloured with these patterns of imagery, symbol and metaphor; amongst which skin, hands, mapping and the elements are particularly important.    A metaphorical idea which resonates throughout the novel, and is present in all of the characters (particularly the English patient and Caravaggio) is the concept of man as a sort of communal Book, whereby every aspect of his life, and his relationships with others are "mapped" onto him. This also operates literally, through the obvious markings of scars on the English patient, and in Caravaggio's case, the loss of both thumbs.    ...his black body, beginning at his destroyed feet... ahove the shins the burns are worst. Beyond purple. Bone.    This description of the English patient's body is gruesome and confronting; it addresses the theme of pain, the construction of identity, and of course the physical evidence of his tortured past, which the reader learns more about as this imagery develops. It is almost as if his body is a landscape; a war zone onto which all evidence of suffering is mapped.    Imagery... ...o mirror the horrors of the wa rin which these four people are involved. The themes explored through the elements in particular, are complex and contradictory, just as the elements are themselves. Sometimes harsh, sometimes cleansing, and almost always painful, these elements shape the characters and plot, and reside in much of the imagery explored in the novel. The techniques of symbolism, metaphor and imagery develop the novel's themes of love, war, suffering and identity, which inform a reading of the novel which would not be as powerful through use of characters and plot alone. The subtlety and eloquence through which these themes are explored really inspire thought and reflection in the reader, which in turn credits a more complex understanding of the novel.    Work Cited Ondaatje, Michael. The English Patient. London: Pan Books, 1993   

How to Brief a Case Using the “IRAC” Method

Located in an upscale neighborhood, then perhaps it could argue that its failure to provide security patrols is reasonable. If the business is located in a crime-ridden area, When briefing a case, your goal is to reduce the information from the case into a format that will provide you with a helpful reference in class and for review.Most importantly, by â€Å"briefing† a case, you will grasp the problem the court faced (the issue); the relevant law the court used to solve it (the rule); how the court applied the rule to the facts (the application or â€Å"analysis†); and the outcome (the conclusion). You will then be ready to not only discuss the case, but to compare and contrast it to other cases involving a similar issue.Before attempting to â€Å"brief† a case, read the case at least once. Follow the â€Å"IRAC† method in briefing cases: Facts*Write a brief summary of the facts as the court found them to be. Eliminate facts that are not relevant to the court’s analysis. For example, a business’s street address is probably not relevant to the court’s decision of the issue of whether the business that sold a defective product is liable for the resulting injuries to the plaintiff. However, suppose a customer who was assaulted as she left its store is suing the business.The customer claims that her injuries were the reasonably foreseeable result of the business’s failure to provide security patrols. If the business is then perhaps the customer is right. Instead of including the street address in the case brief, you may want to simply describe the type of neighborhood in which it is located. (Note: the time of day would be another relevant factor in this case, among others).Procedural History*What court authored the opinion: The United States Supreme Court? The California Court of Appeal? The Ninth Circuit Court of Appeals? (Hint: Check under the title of the case: The Court and year of the decision will be given). If a trial court issued the decision, is it based on a trial, or motion for summary judgment, etc.? If an appellate court issued the decision, how did the lower courts decide the case?IssueWhat is the question presented to the court? Usually, only one issue will be discussed, but sometimes there will be more. What are the parties fighting about, and what are they asking the court to decide? For example, in the case of the assaulted customer, the issue for a trial court to decide might be whether the business had a duty to the customer to provide security patrols.The answer to the question will help to ultimately determine * This applies to case briefs only, and not exams. Use the IRAC method in answering exams: Issue/Rule/Analysis/Conclusion. whether the business is liable for negligently failing to provide security patrols: whether the defendant owed plaintiff a duty of care, and what that duty of care is, are key issues in negligence claims.Rule(s):Determine what the relev ant rules of law are that the court uses to make its decision. These rules will be identified and discussed by the court. For example, in the case of the assaulted customer, the relevant rule of law is that a property owner’s duty to prevent harm to invitees is determined by balancing the foreseeability of the harm against the burden of preventive measures.There may be more than one relevant rule of law to a case: for example, in a negligence case in which the defendant argues that the plaintiff assumed the risk of harm, the relevant rules of law could be the elements of negligence, and the definition of â€Å"assumption of risk† as a defense. Don’t just simply list the cause of action, such as â€Å"negligence† as a rule of law: What rule must the court apply to the facts to determine the outcome?Application/Analysis:This may be the most important portion of the brief. The court will have examined the facts in light of the rule, and probably considered a ll â€Å"sides† and arguments presented to it. How courts apply the rule to the facts and analyze the case must be understood in order to properly predict outcomes in future cases involving the same issue. What does the court consider to be a relevant fact given the rule of law?How does the court interpret the rule: for example, does the court consider monetary costs of providing security patrols in weighing the burden of preventive measures? Does the court imply that if a business is in a dangerous area, then it should be willing to bear a higher cost for security? Resist the temptation to merely repeat what the court said in analyzing the facts: what does it mean to you? Summarize the court’s rationale in your own words. If you encounter a word that you do not know, use a dictionary to find its meaning.ConclusionWhat was the final outcome of the case? In one or two sentences, state the court’s ultimate finding. For example, the business did not owe the assault ed customer a duty to provide security patrols.

Seoul Urbanization

The population of the metropolis increases because people from rural areas and overseas migrate to the urban areas in large numbers, averaging 7. 6 per cent per year (United Nations Population Division, 2001). Increasing of population in many big cities may causes serious problems even in advanced countries. Seoul, the capital city of South Korea, which more than 11 millions of population, has grown rapidly into a metropolis since the end of Korean War (Kim, 2005). Over population in Seoul creates many problems such as traffic congestion and lack of housing.This essay will discuss about two issues caused by increasing number of population in the city. The first is traffic congestion in Seoul and policies to decline this problem and the second is lack of housing and solution by the government. Traffic congestion is one of the most serious problems in Seoul because of a large number of vehicles in the city (Asianinfo. org, 2000). The increasing number of population in an urban area pro duces a plentiful number of passenger cars on the road. Approximately amount of cars is 2. 8 million (Mok, 2007).In Seoul, the statistic shows that one out of three citizens has a car (Zhang, 2010). This situation brings a big pressure to the traffic in the city. The congestion issue causes a distress of travel to metropolitans. Due to this serious problem, the Seoul metropolitan government has created the key measures to solve the traffic congestion. The first measure is to reform the metropolitan transportation system. There are many kinds of transportation in Seoul such as bus, subway and taxi. Under the revolution and reform of transport system, the government has developed bus services according to route demands.In addition, the extension of subways and establishment of exclusive median bus lane make easier and cheaper for passengers to transfer between buses and subways (Jin, 2005). The other measures are policies and encouraging drivers to reduce traffic volume. For example, the government’s measure which encouraging drivers to avoid using of private vehicles for one day of the five-day working week and Seoul Car Free Day campaign which the parking lots of public organization are compulsory closed and drive people to use public transport (Mok, 2007).The government is also searching for a new measure to address the issue of traffic congestion and benefit the megacity’s residents (Cohen, 2009). Apart from traffic congestion, lack of housing is also an important issue caused by population growth in Seoul. Since the end of the Korean War, the nation has focused on increasing only the output within industry (Seoulsouthkorea. jimdo. com, n. d. ) This is the reason for encouraging many people to move into urban centers. A lack of housing for the majority of the new residents has been resulted by rapid urbanization.This is one product of rapid urban development. The influx of population increases need for housing infrastructure. For example, durin g the last few years there have been approximately twice as many households as houses. Those who can find no houses must become squatters and construct shanties and this cause emergence of slum areas in Seoul. The government has an urban development activity with the purpose to clear and relocate squatters from parks and green zones to the outskirts of the city.The measure of Seoul’s government is to allocate houses for the residents which named as Citizen Apartment Building Program (Lee, 2000). Under this program, the government constructs low-rise apartment buildings for squatters and low-income groups. The apartments are intended to be cheap to build and buy. In addition, the government produces low-interest loans that make buyers purchase more easily. In conclusion, urbanization in Seoul began at the end of war. With a rapid growth of the city, Seoul is one of the largest cities in the world with a large amount of population.It can be seen from above examples that increas ing number of population in Seoul causes serious problems such as traffic congestion and lack of housing. However, the government has attempted to address the problems with logical plans and policies.

Coffee and Starbucks Executives Essay

Starbucks developed continuously and rapidly after Howard Schultz bought it. It was entered in â€Å"Fortune 500 companies† in March 2003. Because of the saturation of the market, Starbucks can not only relied on the American market, but also had to venture abroad and paid close attention to the growth of subsidiaries. During the expansion, Starbucks stuck to its basic principles and innovated constantly to cater to the taste of the native. Although Starbucks was operated successfully, it also experienced losses in many countries and faced many challenges and risk. It is essential for MNCs to choose the right mode of entry in any markets and make structural changes to motivate strategic changes, even mature MNCs, which can transfer some risk. Starbucks decided to use three strategies to enter into the international markets-licensing, wholly owned subsidiaries and joint ventures. Every strategy has its advantages and disadvantages, so managers of Starbucks need to consider carefully before entering other countries. Starbucks makes the different ways to enter in the markets according to the different situations of countries. For instance, Canada is close to America so the cultures and the habit of drinking coffee are close too. Starbucks chooses wholly owned subsidiary type to enter Canadian market. Some Asian countries such as Japan and Hong Kong, China, Starbucks selects joint ventures to get in these countries because their taste of coffee is different from American’s. Moreover, the strategic adjustment of Starbucks was to cover over an area in new stores. That can not only assist to disperse consumers and reduce their waiting time, but also decrease the costs and increase revenues. It also innovated some new products and cooperated with local companies. Culture, government, environment and the condition of Starbucks, all these can affect the choice of strategy. In short, before choosing strategy, managers of Starbucks ought to analyze the SWOT of Starbucks, the key environmental factors and how will this strategy influence the development of the company. Starbucks went international because it wanted to seek new international markets and opportunities of growth. Starbucks did many good management and analysis of risk before entering into different markets. It further researched the prospect of the products in other countries’ markets. Then it tried to sell in the local fashionable shops and was operated by expert managers from Seattle. Starbucks persisted in keeping their No Smoking principle and broad floor area, which attracted many Japanese women. That is a successful alliance that through using its own resources and cooperating with Sazaby, it understood the Japanese habits of drinking coffee drinks and introduced new products. Starbucks realized that young people in Asian countries were interested in the western way of life so it seized that mentality and attracted them successfully. Starbucks adjusted constantly to adapt the cultures of the host countries. For example, it offered meat buns and curry puffs to Asian countries because Asians like eating some food when drinking coffee. It is popular that the best coffee around the world is in Europe. However, Starbucks executives thought that coffees in Europe now is not as great as in the late 1990s so stores were opened quickly and bravely in Europe. The romantic atmosphere, No Smoking environment and self-help service mode of operation were the main reasons that attracted the young. Also, Starbucks provided an independent region for Middle East ladies because of its distinct culture. From the above examples, it seems that Starbucks considered completely. It did internal analysis to use its key success factors to help the company make full use of the opportunities abroad. It also analyzed the culture and environmental risk of the local markets. Starbucks faced many challenges and risk in the international operation. Firstly, the unstable political environment of the Middle East is one of the problems for Starbucks. The close relationship between America and Israel made Arab students boycott American services and goods. This is the political risk to Starbucks. Secondly, Starbucks faced crisis from non-governmental organizations. They asked Starbucks to afford the authentication of coffee beans to insure the production of coffee beans was proceeded under a certain social and financial condition. This is the environmental risk. Thirdly, Starbucks has country risk that the economic recession in some countries made the sales and revenues dropped sharply. Fourthly, Starbucks faced drastic industrial competition, high costs of developing business and resistance from customers who objected to globalization, especially in Europe. This is the strategic risk. Fifthly, complex joint ventures and application license agreement, lack of well-trained employees and appropriate store address, all of these made Starbucks hard to gain more profit and control the costs of international operation. This is the operational risk. Starbucks try to reduce the risk in many methods. First and foremost, Starbucks decided to offer new products to control the costs of international operation. Then, it announced to slow down the pace of expansion and close the defective stores. Also, Starbucks should reconsider the entry strategy and keep a watchful eye on price. The most important is to be careful to the international environment because there are many factors can affect the Starbucks’ decision-making. Starbucks recombined its structure and changed its strategy with its internationalization.