Modernisation of Trade Regulations and Policy

Question: Discuss about the Modernisation of Trade Regulations and Policy. Answer: Introduction The objective of this study is to analyse the historical development and controlling power of Organisation of the Petroleum Exporting countries (OPEC) in oil supply. OPEC is the cartel of major oil producing countries such as Saudi Arabia, United Arab Emirates, Algeria, Angola, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar and Venezuela. They act as a monopolist in the global oil market (Colgan, 2014). However, appearance of USA as a supplier of petroleum oil in the global market has reduced the monopoly power of OPEC significantly. This essay critically analyses rise and fall of OPEC power and market share over the years. History of the development of OPEC OPEC was founded during 1961 by five oil producing developing countries. Due to having monopoly power in the oil market, OPEC has the power to control oil price by altering supply of petroleum oil in the global market. Kilian Murphy (2014) mentioned that, in recent fall of crude oil price in global market, OPEC has important role. Emergence of other oil suppliers in the market has reduced the monopoly power of OPEC in the oil market. Hence, weakness of OPEC to control supply and demand factors made it behaving differently that what market expected. Saudi Arabia is an important member of OPEC. In the view of DiChristopher (2016), Saudi Arabia has significant share in oil supply in world market. In the face of falling price of oil in the world market, Saudi Arabia refused to reduce the supply of oil and manipulating the price. Acquiring power compared to other OPEC members was the main motive as viewed by the market analysts. The argument of Saudi Arabia was that it would not bear the burden of oil production cut alone, when the members are not ready to production cut. The rationale behind this decision is that production cut may increase the oil price and Saudi Arabia may lose the market share (Goldwyn, 2015). As stated by Mirchi et al. (2012), OPEC members played no significant role production or pricing of crude oil since oil discovery on Middle East. After formation of OPEC, most of the global oil demand was met by OPEC. With the increase in market power, the six Gulf members announced an increase in light crude oil price from $3.65 to $5.119 and further to $11.651 during same year (Fattouh, 2015). After 1980s, OPEC started to face competitive pressure due to increase in non-OPEC supply. The non-OPEC countries like Soviet union, Mexico and North Sea set their own price. As a result, share of OPEC in total oil production globally has reduced from 52% in 1973 to less than30% during 1985 (theweek.co.uk, 2016). It indicates that entry of other oil producing country in the market has reduced the market share of the OPEC. Fall in market share reduces the power of price determination in the international crude oil market. Causes of decreasing share of OPEC During 2004 Vienna convention, OPECs oil minister faced several issues regarding market dynamics. OPEC is facing lower demand for crude oil due to availability of alternative renewable resources supplied by other countries. Therefore, OPEC has been suffering from the policy dilemma that how the oil producers having large upfront investment capacities, should react to the market dynamics. There has been policy dilemma regarding short term or long term development. High oil price has predominantly remained in the market due to long positions of the market speculators. Policy dilemma, structural problem and, several supply side bottlenecks affected the profitability of OPEC countries. Colgan (2014) argued that Japan has important role in decrease in oil demand from OPEC. Japan was an important importer of oil from the OPEC countries. However, overtime demand from Japan for gasoline oil has been decreased significantly. Figure 1: Decrease in oil demand from OPEC globally (Source: Fattouh, 2015) Among the OPEC member countries, Saudi Arabia played an impotent role to administer supply and pricing. Net back pricing system was adopted by Saudi Arabia resulted in price collapse during 1986. After 1986, the current market related oil pricing started in the competitive dynamics. Kilian Murphy (2014) cited that political rivalries among the OPEC member countries have been detrimental in fulfilling agreements regarding production cut and price stabilisation policy. Success of the cartel depends on the collaborative decision making. Among the member countries, Saudi Arabia is the rising power has limited the power of OPEC. Figure 2: Oil production of Saudi Arabia (Source: Fattouh, 2015) Saudi Arabia has recently decided to cut oil prices for exporting oil to the Asian countries violating the commitment to OPEC. In the view of Mirchi et al. (2012), the motive behind this decision is to grab market share from the regional rival Iran. However, Faucon (2016) argued that OPEC is likely to regain its power due to shrinking output in US and investment cut in many new projects. These two effects can reduce global oil supply less than its demand in 2017. Conclusion OPEC follows the role of cartel, whose objective is to hold the market power to supply crude oil and determining prices. Before 1980, most of the countries relied on OPEC for importing oil. Hence, OPEC had a monopoly power in the market to control demand and supply in the market. However, discovery of oil field in the non OPEC countries has reduced the share of OPEC in global market. Decision dilemma, rivalry among the member countries, lack of investment are the major causes of falling share of OPEC. Moreover, Saudi Arabias reluctance to respond market situation such as price volatility as per commitment to OPEC has negative influence on the regulatory power of OPEC. References Colgan, J. D. (2014). The emperor has no clothes: The limits of OPEC in the global oil market.International Organization,68(03), 599-632. DiChristopher, T. (2016). Saudi oil price cuts fly in the face of deal to limit OPEC output. CNBC. Retrieved 9 November 2016, from https://www.cnbc.com/2016/10/06/saudi-oil-price-cuts-fly-in-the-face-of-deal-to-limit-opec-output.html Fattouh, B. (2015). Current Oil Market Dynamics and the Role of OPEC. oxfordenergy.org. Retrieved 9 November 2016, from https://www.oxfordenergy.org/wpcms/wp-content/uploads/2015/01/Current-Oil-Market-Dynamics-and-the-Role-of-OPEC-Reflections-on-Robert-Mabros-Work.pdf Faucon, B. (2016). OPEC Sees Rival Oil Production Declining as Markets Rebalance. WSJ. Retrieved 9 November 2016, from https://www.wsj.com/articles/opec-sees-rival-oil-production-declining-as-markets-rebalance-1463135728 Goldwyn, D. (2015). Heres Why Saudi Arabia Has Let Oil Prices Falland Why They Could Revive by Years End. Atlantic Council. Retrieved 14 November 2016, from https://www.atlanticcouncil.org/blogs/new-atlanticist/heres-why-saudi-arabia-has-let-oil-prices-fall-and-why-they-could-revive-by-years-end Kilian, L., Murphy, D. P. (2014). The role of inventories and speculative trading in the global market for crude oil.Journal of Applied Econometrics,29(3), 454-478. Mirchi, A., Hadian, S., Madani, K., Rouhani, O. M., Rouhani, A. M. (2012). World energy balance outlook and OPEC production capacity: implications for global oil security.Energies,5(8), 2626-2651. theweek.co.uk. (2016) Will the oil price return to $26 if Opec deal fails?. (2016). Retrieved 9 November 2016, from https://www.theweek.co.uk/oil-price/60838/oil-price-rebounds-after-worst-trading-week-in-11-months

Strategic Management and Project Selection

Introduction Many companies globally find it necessary to engage in substantial financial ventures. The companies, however, have to make a choice between different competing projects that they wish to undertake. That is the reason why they have to employ the concept of project selection to evaluate the most profitable project in the long-run.Advertising We will write a custom report sample on Strategic Management and Project Selection specifically for you for only $16.05 $11/page Learn More A company should calculate discounted-cash-flows that the company is expecting from the project in the long-run. These cash flows should be compared with the cost. A project’s lifetime has an end. Therefore, long-run may be long or short. Project selection is a detailed process that tries to find and define the best project that a company should undertake. The characters that a project should have include a budget, timeline and objectives it sets out to achieve . Many managers face challenges when defining projects and scholars have set out the three as the defining factors (Wiley Media, 2010). How to Select a Project Before selecting a project, the company should consider a number of factors. These factors may or may not apply to the company’s situation, but they are universally recommended for consideration. These include: financial factors, personnel factors, production factors, marketing and administrative factors. These factors delve deep into the impact that the project in question will have to the company’s internal and external environment. After looking into these factors, the company goes on to select the project. This is done by engaging models that are favorable to project selection. Models should however be realistic and people should be the ultimate decision makers, not models.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More According to scholars, these models should portray some characteristics such as easy computerization, should be realistic, flexible, not too costly and easy to use and understand. These will make it easy for the employees to have easy time when working on the project. It will also make it easy for the selectors to easily convey reports to management, who may not have the technical knowledge it entails. Some of the most applicable models include: discounted cash flow method, net present value analysis and profitability indices. These, however, look at the financial bit of the projects, although the most important, the company employs other simulation models to ascertain other implication like environmental impact. Other companies have developed steps through which they analyze and critically select projects based on all the above mentioned factors (Wiley Media, 2010). Risk Analysis and Simulation A project can not be entered into without looking into the amount of risk that a company is entering into. It should therefore, engage in risk assessment that is comprehensive. These include profits and costs, environmental implications and employee adaptation span. If the project has too much risk associated with it is not adopted. A company, in case it has to choose between alternatives, goes for the less risky alternative. Other factors that the company in question should consider include technological dimension of the project, the availability of necessary resources, if it is possible to partner with another company and the level of synergy that the project has in relation with other important projects.Advertising We will write a custom report sample on Strategic Management and Project Selection specifically for you for only $16.05 $11/page Learn More Strategic Project Management This is critically sensitive area of project appraisal. It looks at the viability of a project in the company’s competitive arena. A sound proje ct should have competitive advantage both in the short and long run. If a company’s business focus and project evaluation want to incorporate new products in the market in the market, it is incumbent upon the project that it wishes to undertake to enable it to do that before the rest. For example: laying internet cables in East Africa. The company’s went to partner with companies that they thought should deliver the cable earlier than the rest so as to position themselves in the market and gain competitive advantage. It is also incumbent upon mangers of a project to know whether it is actually a project or not (Wiley Media, 2010). Project management also looks at all the aspects of a project and is the central point from which many decisions are made. Initially, the company through its research and development department carries out an entailed study concerning the project. This research is meant to give insight into many areas of the project. It also indentifies resou rces needed, the deadline of the project and value addition to the company. Every project is broken down in stages such as initiation, execution monitoring and control and lastly closure. This is meant to make sure that there is little hustle when it comes to the execution by laying down the process (Wiley Media, 2010). Project management also looks at the control systems that will govern the whole project. These define the parameters that the company will have to guard against in the whole process. It should set out the rules and regulations. This will entail the leadership of the whole project.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The leaders who are indentified will be answerable to the company management and will prepare reports for them. The members and the technical bench will be the ones involved with the ground work. However, their actions cannot exceed the mandate it sets out to achieve. Conclusion Any project that a company sets out to achieve, should be preceded by a detailed evaluation stage. Afterwards, the company looks at the viability of the project from the many parameters the company wants the project to be helpful. Close monitoring is not exceptional and finally review of the project after conclusion. All these processes are under the management of a project that is set up after its commencement. Success of a project is important, hence the need for careful planning in its offset (Wiley Media, 2010). Reference Wiley Media. (2010). Strategic Management and Project Selection. Retrieved from http://media.wiley.com/product_data/excerpt/79/04717153/0471715379-2.pdf This report on Strategic Management and Project Selection was written and submitted by user Saige Mcfadden to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Argumentative Essay Sample on Homeschooling

Argumentative Essay Sample on HomeschoolingIn this Argumentative Essay Sample on Homeschooling, you will find some essential points that you should know and not to forget. As a parent, it is really crucial for you to be aware of all of these because you are the one who will be dealing with their development as a child.You will get to know that all these topics, like debate, logic, statistics, and some of the basic methods that are involved in these are just a few of the basics that you will learn. These are just some of the important things that you need to know. You can also try out different topics in this essay so that you can take your chances of learning about different kinds of things.One thing that you need to make sure of is that you can be practical and if possible, it will be beneficial for you because you can help them in their development in learning. Learning from your experience and making use of what you have learnt are also very much necessary. You can also find many things that you can try to use in your essay. You just need to put your mind to it and find a resource that you think can help you out.When it comes to making your essay more interesting, you can try using some of the bolded words that will help you bring out the significance of the essay. This is how you can make your essay more interesting.The Argumentative Essay Sample on Homeschooling is one of the best essays that you can try when it comes to improving your knowledge about homeschooling. You can start by reading and thinking about the topic. Make sure that you are familiar with the subject so that you can make some important points.You need to think about the parts of the essay before you even start. You need to know how to start it so that it can be able to get started right. Make sure that you have covered all the topics that you have been taught and that they are explained in an interesting way.After you have read about the subject and made notes about some of the important points, then you can try to brainstorm on how you can present this information. This is how you can easily gain points.After you have written and tried to copy the essay, then you need to remember that you should not forget the important points in the essay. You need to leave room for improvement and improve in this essay too. Always remember that you will be carrying this essay throughout your whole life and you need to make the best of it.

Lab 3 essays

Lab 3 essays 1. Of the tools described, I feel that the Executive Support System (ESS) is the best tool for managers today. Not only does it have speech recognition which simplifies typing commands, but it also has expert systems which are self-learning and help aid in decision making. Also packaged in ESS is executive support software, which helps customize databases to fit executives specific needs. 2. The six characteristics of useful information are as follows: significance, reliability, consistency, timeliness, comprehensibility and action-oriented impact. 3. Calendar management software virtually eliminates the multiple phone calls required to schedule meetings; instead, meetings for ten individuals can be scheduled as quickly as a meeting for two people. The best advantage of this software is that anyone can be authorized to view the managers calendar, always seeing the same version. The least liked feature of this software is that some calendar systems dont provide full support for scheduling, which means it might not be used. 4. PDAs are much better than paper and pencil because they come with a vast amount of features that help make working easier. They include calendars, address books, to-do lists, electronic notebooks and more. The major advantage is information can be located easily by keying in a word and allowing the computer to locate it. When you think about it, there really isnt any disadvantages when it comes to PDAs because they can do just about anything you need them to do. 5. I strongly agree that video will be an integral part of the business day in the future. It will allow a business to hold meetings over television where everyone can see everyone even if they are in different states or countries. It will cut down on business travel dramatically, allowing managers to stay closer to their company to make sure business runs smoothly. 6. When it comes to teleconferencing, I feel ...

A Look At The Dualism Concept Between The Body And Soul As Depicted In Meditations On First Philosophy By Rene Descartes

A Look At The Dualism Concept Between The Body And Soul As Depicted In Meditations On First Philosophy By Rene Descartes Body and Soul Rene Descartes presents in his Meditations on First Philosophy the idea of dualism, the belief that the body and the soul exist separately from each other. Physical human bodies are composed of cells, tissue, blood, organs, skin, a brain and the like. From the brain, humans have thought. The mental capacity to think is what creates human personality and allows humans to reason and form ideas. The question of whether or not the body and soul are separated or not is a vital philosophical question, especially to Descartes as he grapples with meditation and the feeling that nothing is real or certain. This leads him to question his own existence and who he is. In this paper, I will argue against Descartes’s belief on dualism as the body requires the soul to live. The soul and body are tied together in order to grant humans the ability to exist, create goals to chase after and grow as individuals. The main argument is that the body and soul are individual forms. Descartes presents three main premises. The first premise of this argument begins with Descartes stating â€Å"if I convinced myself of something then I certainly existed†¦I am, I exist† (Descartes 110). This pertains to the soul and that if a human is capable of thought, they exist. Even if a person is unsure of their actual existence, it does not matter as long as they themselves believe they are alive and existing. This leads into the second premise where it is discussed whether humans are being deceived by God over their existence. Descartes argues that if even if God, or some creator, is deceiving us, if we think we exist we do. However, if God is the perfect creator of the universe it would makes sense that He gave his creation souls and a sound existence. The third premise describes the body and soul separately, showing how the two are different. Descartes labels the body as simply being our physical self, that has hands, feet and a solid figure. He writes how the soul has features like sense perception and the ability to fabricate thoughts. The body and soul are presented as being unique from each other, thus the concept of dualism is confirmed. These premises come together to shape the conclusion that confirm duality and that the body and soul are apart from one another. I agree with Descartes’s first premise on the grounds that if we think we exist, we do. It is impossible to definitively find out if everything is a faà §ade or if humans truly do exist in a real universe. But due to the fact that humans are alive and can think, it is presumed that humans do exist, at least to a certain extent. I also agree with his third premise on the body and soul being different. The soul is not something that is visible but rather an abstract concept used to describe what governs the body and allows humans to speak, think and act. However, I do not agree with his overall notion of duality. Descartes presents his argument without sufficient evidence but rather relies on his own opinion. Typically, a body without a soul cannot be called an existing being. The body might be alive but with no soul there is no person, no identity or personality. Similarly, without a physical body the soul cannot exist. If there is no body there is no person to speak of. Upon birth and death, the body and soul arrive and leave together, leading to the conclusion that they are linked together and rejecting dualism.

Reflection of knowledge Acquired in Cross-cultural Management Assignment

Reflection of knowledge Acquired in Cross-cultural Management - Assignment Example From this discussion it is clear that managers that operate in their countries too often find themselves in conditions where they have to interact with clients, suppliers or employees originating from different countries with varying cultural practices and beliefs. Above these challenges, the modern organizations are increasingly consisting of people from diverse cultural backgrounds, making them multicultural organizations. It is therefore not enough to only seek and acquire traditional knowledge or training, but it is essential to be equipped with knowledge of surviving through cross-cultural organization systems. Managers therefore need the complex skills of operating through the multicultural settings of organizations to succeed internationally.This study discusses that every life aspect gets influenced by culture and this is dictated by the perspective someone adopts to view the   world and give direction to what is ethically tolerable in terms of behaviour. The definition of culture can be broadly said to be mutual interpretations, shared values or motives, identities and beliefs and, these factors are the outcomes of shared by members of a society and are passed over across generations. Society is a distinguishing factor that denotes a communal mind training of people mind from other people of a diverse class.  Today, managers are confronted with an array of cultural challenges with the increased international businesses across borders and diversified workforce emanating from different backgrounds.

FINANCIAL REPORTING REPORT Essay Example | Topics and Well Written Essays - 1000 words

FINANCIAL REPORTING REPORT - Essay Example The year under review for this assignment is 2005. During the year 2005, Tesco has been able to generate a revenue target of 37.070 Billion pounds.(www.tescocorporate.com). The reason that we have chosen such a high turnover company is the fact that because of its size and significance in the UK economy, we believe its accounting policies and practices will reflect it therefore we have chosen this. Accounting standards require that they should be consistently applied and practiced. (Deliotte, 2008). Accounting Policies adapted by Tesco are according to the both international and national standards of accounting prevalent at the time. Tesco has prepared its accounting statements on Historical cost convention however there are some changes with respect to the Transitional disclosure requirements under FRS 17. Revenue recognitiation policy is as per the standards and whereas the stocks are valued at lowers of the cost or net realizable value. Fixed assets are recognized at the cost with depreciation being recorded at the straight line basis with clear segmentation of depreciation rates. Goodwill is amortized and capitalized according to the prevalent standards whereas fixed assets and goodwill are also under review for impairment under FRS 11. Segment reporting is one of the important accounting information for the investors especially within the context of international businesses. The increasing trends of businesses to have segments working all over the world and even within the country require that the information shall be contained in the financial statements according to the prevalent accounting standards. The value the segmental reporting carries to the shareholders is very important because it provide investors the necessary look into the performance of the various segments of the company. Since the company is a collection of various departments and segments and a synergic coherence of these segments creates success for the