Defaulted Sukuk And Bonds In Malaysian Capital Market Finance Essay - Free Essay Example

Sample details Pages: 11 Words: 3201 Downloads: 3 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? What are the basic characteristics or features of defaulted sukuk and bonds in Malaysian Capital Market and is there any difference between the characteristics? Question No. 2: Don’t waste time! Our writers will create an original "Defaulted Sukuk And Bonds In Malaysian Capital Market Finance Essay" essay for you Create order Is the financial performance of Sukuk different from the fixed income securities? Question No. 3: Why did the issuers of defaulted sukuk and bonds failed to pay their obligations? Question No. 4: Research Objectives The first objective of this research is to do a comparative study of all defaulted or D rated or suspended sukuk and bonds in the Malaysian market by comparing the characteristics (see Annexure-1) of both types of issuers. The purpose for this comparative study is: to identify why these corporations failed to pay, which sukuk structure defaulted the most in Malaysia and identify the reasons behind it. The author is of the opinion that there may not be any concerns with the approved sukuk structures but there might be other practical characteristics within issuer or company that may be the cause of these defaults. Second objective of this dissertation is to explore the relationship between all the defaulted sukuk and bonds in the Malaysian market by comparing the financial performance of the issuers of these sukuk/bonds to see if there are any differences between the health of the issuers or merely nomenclature, a simple change of name from bond to sukuk. The basic objectives and requirements in structuring a bond or a sukuk transaction are to fulfill the funding needs of an organization. Investors in these transactions are usually concerned with the financial health of the issuers. The health of any corporation can be measured through the analysis of its financial performance. A study of defaulted sukuk and bonds may shed light on meeting both organizational and investor needs. Data Source To achieve above-mentioned objectives, the author will focus on the secondary data available in published papers, books, magazine articles and databases available on Islamic finance, sukuk and bonds via the Internet. The researcher will consider both quantitative and qualitative study to achieve these objectives. The quantitative data will be collected from financial statements of defaulted issuers and SC, IFIS and BPAM websites. These databases give extensive information on Islamic capital markets. The BPAM database is especially designed to cover the bond market in Malaysia, housing all the basic information regarding the bond or sukuk issue available today. The IFIS database is a specialized Islamic finance database; this will be used to compare the Malaysian sukuk market with other issuers in the world. The quantitative data will help the researcher to collect data regarding financial performance and growth of the sukuk and bond issues in Malaysia and compare it with sukuk issued internationally. Qualitative research will help in understanding the approved structures, issues, challenges and criticism regarding these sukuk. Sample Specification This study is mainly on the performance of Sukuk and Bonds in Malaysian capital Market. The sample in this study focuses mainly on all the D Rated or suspended sukuk and bonds in Malaysian market from 1990 till May 2010. A total of 64 issuers of sukuk and bonds were rated D by the rating agencies or were suspended due to non-payment of their obligations. This sample is further subdivided into two categories, first category is of Bond issuers where the total 33 number of bond issuers came in this category and second category is of sukuk issuers where the total 31 number of sukuk issuers came in this category. The list of all the sukuk and bonds in the sample is given in the table 2. Research Methodology This paper is mainly focused to compare the characteristics of defaulted sukuk and bonds issuers in Malaysia. The main purpose of doing this comparative analysis is to understand the theoretical and practical difference between sukuk and bonds. Two different research methodologies will be adopted to compare the characteristics. These methodologies will compare the qualitative and quantitative characteristics of both types of issuers. Theoretically both sukuk and bonds are different from each other which lead to the difference of performance of issuers. There is no difference between generating funds through issuance of sukuk or bonds it is merely a name of contract, the actual difference is between the purpose of raising funds and the intention of both investors and issuers. Parties involved in issuance of bonds have completely different expectations than the parties involved in issuance of sukuk. The ultimate goal of both the contract is definitely the earning money however the difference is the sharing and holding the responsibility. Following are the two comparative studies to be conducted to understand the difference in characteristics of sukuk and bonds. Comparison of Qualitative characteristics The first comparative study will be conducted on the qualitative characteristics of issuers of D Rated and suspended sukuk and bonds. The research is expected to identify and discuss the qualitative characteristics and to understand the reasons and impact of these characteristics. The comparison will be done on the following characteristics. Term of Issuance Underlying Contract Asset/Equity Ratio Amount of Total Issue to Equity Fixed Assets/Total Assets Ratio Utilization of Funds Collateral/Lien Listed or Non Listed Company Initial Ratings Current Status (Redeemed or Outstanding) Subsidiary/SPV Comparison Quantitative characteristics The main purpose of issuing the sukuk and bonds is to fulfill the financial needs of an institution. This paper will compare the financial performance of all D rated and suspended sukuk issuers with bonds issuers (corporate issues) in Malaysian Capital Market. Financial performance of these sukuk and bonds issuers will be compared with respect to broad categories of financial ratios: coverage, gearing, liquidity, profitability and turnover. The author believes that sukuk and bonds are entirely different in nature and due to their underlying contracts, there should be a substantial difference in their financial performance. These differences will be elaborated upon in detail throughout the dissertation. This financial performance of sukuk and bonds will be analyzed by comparing parametric and non-parametric test of equality of both the samples. The parametric test like Mean and median; and nonparametric test like Wilcoxon/Mann-Whitney ranked test will be used to estimate the equality of different financial ratios of sukuk and bonds. Motivation for choosing the variables The main objective of running any institution or firm is to achieve some predetermined benchmark, and for running any business the main objective is to make it profitable. Profitability of any organization can be maximized by utilizing the best mix of available resources. These resources are basically assets of an organization and the claims against these assets in terms of liabilities and owners equity. Owners equity is not always sufficient for the growth of any firm and these firms have to rely on the external resources. The funding needs can be short term or long term depending on the nature of the project under consideration. Theoretically bonds are always considered debt financing and always come under the umbrella of liabilities; however sukuk is depending on the underlying contract. If it is musharaka, mudaraba financing it is considered equity financing, if it is murabaha or BBA it is treated under liabilities. The main object of issuing both sukuk and bonds is enhancing the profitability of the organization with the best mix of available resources. The comparative analysis is done of the following important financial ratios. Investors can estimate the credit worthiness of a company by analyzing and understanding the effect of these ratios. Financial ratios under observation Following financial ratios are considered as critical for analyzing the performance of any company. In this section we will try to define the concept of financial ratios under discussion and their significance in decision making from investor point of view. Interest coverage ratio (ICov) Operating cashvflow interest coverage ratio (OCFIC) Total gearing (TG) Total Liabilities to Total Assets (TLTA) Cash Ratio (CSHR) Current Ratio (Cr) Interest costs (IC) Profit before Tax Margin (PBTM) Total Asset Turnover (TAT) Non-Current Asset Turnover (NCAT) Interest coverage ratio (ICov) Interest coverage is a ratio to determine how comfortably a company can pay its financing cost on outstanding debt. The interest coverage ratio is computed by dividing a companys earnings before interest and taxes (EBIT) of one period by the companys  interest expenses  of the same period:    Interest Coverage Ratio The lower the ratio, the  more the company is burdened by debt costs. When interest coverage ratio is 1.5  or below,  the ability of firm to meet interest expenses may be questionable. An interest coverage ratio of less than1 indicates  the firm is not generating adequate revenues to satisfy financing costs. The coverage characteristic of the ratio specifies how many times the interest expenses could be paid from available earnings. A company that withstands earnings well above its interest requirements is in an excellent situation to weather possible financial storms. However a firm that barely manages its financing costs can easily suffer bankruptcy for even single month. Operating Cash flow interest coverage (OCFIC) Operating cash flow interest coverage ratio (OCFIC), measures the capacity of a company to generate cash flow from its operations to pay its financing costs. Companies with positive cash flow generate more cash flows than required to pay its interest costs. There are two other resources to generate the cash flows, i.e. investment or financing activities. However the companies with healthy cash flows generated from its operations are considered safe. Companies with poor cash flows from operation have to rely either on disposal of some of its investments or they have to rely on external source of financing to meet its obligations. Formula for OCFIC is OCFIC = Net Cash generated from operational activities/ Financing Costs Total Gearing (TG) What Does  Gearing  Mean? An analysis  ratio of a companys level of long-term debt  compared to  its equity financing. Gearing is expressed in percentage form. Companies with high gearing (more long-term liabilities than shareholder  equity) are considered speculative. Gearing is simply how company finances its business; it is through debt or outside financing or through equity financing. Total Gearing = (Total liabilities + Contingent Liabilities)/ (Shareholders Equity + Minority Interest) Debt financing is not always free, increase in gearing will increase the cost of financing and will reduce the PBTM. Total Liabilities to Total Asset Ratio (TLTA) Total Liabilities to Total Asset Ratio measures the firms financial risk which will help to understand how much of the companys assets are been financed by external financing. Total liabilities include both Current and Non-Current liabilities and then divided by the companys total assets. TLTA = (Current Liabilities + Non-Current Liabilities) /Total Assets This ratio is very simple to calculate with a broad impact of companys performance. The ratio is actually the percentage of how much assets are funded by external financing. The lower the ratio of the company the more are the assets financed by equity. Cash Ratio (CSHR) The cash ratio specifies the cash portion of current assets which includes the cash, cash equivalents or invested funds. Cash ratio provides the capability of a company to meet its current assets with highly liquid assets. It is value  of  cash  and  marketable securities  divided by current. Cash Ratio = (Cash + Cash Equivalents) / Current Liabilities Cash ratio (CSHR) is also called the most conservative ratio of all liquidity ratios. CSHR is indicator of a companys ability to meet its current liabilities that need immediate payments. It is noticed from the analysis of both the samples that there are some companies whose current ratio was very healthy but they defaulted. One of major reason for their default is very small portion of cash and cash equivalents. Current Ratio (Cr) Current Ratio is a liquidity  ratio that measures  a companys ability to pay short-term obligations.  If the Current ratio of a company is more than 1.0 which means companys short term assets exceed its short term liabilities and the firm can meet its short term obligation. Short-term obligations mean payments to be done in a year or less. The Current Ratio formula is: Current Ratio    Also known as liquidity ratio, cash asset ratio and cash ratio. Interest costs Ratio (IC) IC is the total expense incurred on the entire credit financing from external sources. Interest costs or financing costs have both positive and negative impact on the PBTM. It depends on the proportion of interest cost on the revenues. Companies with conservative approach of taking external financing have very small proportion of interest cost. However at the same time their revenues are proportionally very small which gives smaller PBTM than the companies with mixed financing. Interest Cost = Interest cost/ Revenues Profit before Tax Margin (PBTM) The dependent variable in our model is PBTM. The bottom line of every business activity is profitability which is considered as the main motivation of every business transaction. Managers use different tools and resources to enhance the profitability of the business. PBTM is considered as bottom line of all the financial ratios. PBTM is the ratio of net income before taxes to net sales. PBTM = (PBT/ Revenues) It is dependent of how the resources are utilized which includes proper utilization of assets (Current and Noncurrent), Managing financial resources (Debt and Equity) and cost (Interest and others) are managed. Total Asset Turnover (TAT) The  total  asset  turnover  helps in determining the relationship between available resources of a company and revenues generated with those assets. Essentially, TAT is used to make sure that the company is realizing a sufficient return on the investment made. Periodic calculation of the  TAT can help a company to identify and built new processes and procedures which can be helpful to increase the return. The practice of calculating the  TAT  is simply to generate the better revenues while making the best use of available company resources. Total Asset Turnover ratio = Revenue / Total Assets PBTM and Non-Current Asset Turnover Ratio (NCAT) Non-current Ratio (NCAT) or Fixed asset ratio is the ratio of net revenues to fixed assets. NCAT ratio measures a companys capability to generate net revenues from Non-current asset investments like; property, plant and equipment. A higher NCAT ratio shows the company has been efficient in utilizing fixed assets investments to generate revenues. NAT = Revenues/ Fixed Assets Companies with better NAT ratio can better manage their long term borrowing than the companies with more emphasis on current assets investments. It is very important for a firm to invest in its fixed asset to generate the long term cash-flows which is necessary to meet long term obligations. Testable hypothesis Following hypothesis were tested in our analysis in this paper. Testing the equality of Means: Testing the equality of Medians: Testing the equality of Variances: The null hypothesis Ho designed here show that there is no significant difference between two test groups and the alternate hypothesis designed here to justify the difference between the two groups. Above hypothesis were tested on 95% confidence level and the test is said to be two tailed or non-directional. Test of Equality of financial Ratios This paper will determine the differences of distributions across populations or we will focus on the differences of two distribution-characteristics: First on moment or mean and second on central moment or Variance. These are the two characteristics, which describe the location and spread of distribution. F-test We will start with the testing for equality of variances (F-test) because the equality of variances is a common assumption in mean equality T-test. F-test is used to test if the variances of two populations are equal. F test can be a one-tailed or two-tailed test. The two-tailed version tests against the alternative that the variances are not equal. The one-tailed version only tests in one direction of the sample. That is the variance from the first population is either greater than () or less than (), but not both, the variance of second population. The significance of the F-ratio is obtained by referring to a table of the F distribution, using degree of freedom {df1, df2}, where df1 and df2 are the degrees of freedom from the regression mean square and residual mean square. How to reject or accept F-test (for overall significance) ÃÆ'Ã… ½Ãƒâ€šÃ‚ ±=0.05 Decision: Reject Ho if the f-stat falls in the rejection area (p values Ho: ÃÆ'Ã… ½Ãƒâ€šÃ‚ ±=.05) T-Test: The two-series t-test is used to indicate if two sample means are equal. A common use of this t-test is to analyze the performance of new procedure or treatment to a current procedure or treatment. The hypotheses to compare the means of two independent samples are: (Means are equal) (Means are not equal)   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚      The test statistic is a students t-test with N2 degrees of freedom (df), where N is the total number of observations. A low pvalue gives evidence to reject the null hypothesis against the alternative. In other words we can write that, there is evidence that the means are not equal. Decision: Reject the null hypothesis if the test statistics for each sample falls in the rejection region (p values .05) Wilcoxon-Mann-Whitney test (WMW) Wilcoxon signed rank test (WMW)  is used to test whether the median of a symmetric population is 0 or not. First, the data are ranked without looking to sign of each observation. Second, the sign of the each observation is attached to its corresponding rank. Finally, the one sample z statistic (standard error of the mean /mean) is calculated from the signed ranks. For all small samples under observations, the statistic is compared to likely results and if each rank was equally likely to have a +or -sign affixed. For large samples, the z- statistic is compared to percentiles of the standard normal distribution. The  Wilcoxon rank sum test  (also known as the  Wilcoxon-Mann-Whitney test)[1]is used to test whether two samples are taken from the same population. It is appropriate if the likely alternative is that the two populations are moved with respect to each other. The test is performed by ranking the combined data set, dividing the ranks into two sets according the group membership of the original observations, and calculating a two sample z statistic, using the pooled variance estimate. For large samples, the statistic is compared to percentiles of the standard normal distribution. For small samples, the statistic is compared to what would result if the data were combined into a single data set and assigned at random to two groups having the same number of observations as the original samples. Skewness and Kurtosis[2] A basic task in many statistical studies is to characterize the location and variability of a set of a data. Further the data is classified into skewness and kurtosis. Skewness is an indicator of symmetry, or more precisely we can say the lack of symmetry. A data set under observation is called symmetric if it looks the same to the both sides of the center point. Kurtosis is an indicator of the data whether it is peaked or flat as compare to a normal distribution. That is, data sets with high kurtosis tend to have a distinct peak near the mean, decline rather rapidly, and have heavy tails. Data sets with low kurtosis tend to have a flat top near the mean rather than a sharp peak. A uniform distribution would be the extreme case.

The Human Rights Act 1998 Essay - 1967 Words

Human Rights Act 1998 The Human Rights Act 1998 sets out the rights and freedoms of every citizen in the United Kingdom. The HRA has three main effects, the first one is that it incorporates set out in the European Convention of Human Rights into British law. Therefore if someone in the UK were to breech your Human Rights you would be able to deal with this through the British court instead of the European Court of Human Rights in France, which is what people had to do previously if their human rights were breeched. This means in Britain in requires everyone (schools, police, courts, local authorities and hospitals) carrying out public functions to respect and protect their own and others human rights. These rights are called Convention Rights. For the Human Rights Act to work it means all public bodies have to work with government, the public can do this by respecting the rights and the government will put the laws in place so that others respect your human rights too. For example, everyone has the right to life and this doesn’t only rely on the government to make sure you receive this right, but it also depends on those around you not to harm you in any way, this is why the government has put in laws to try and stop people from harming you so that you get that basic right. Human Rights Timeline: †¢ Universal Declaration on Human Rights 1948 UDHR came into force on the 10th December 1948 †¢ European Convention on Human Rights 1950 ECHR came into force on the 3rdShow MoreRelatedHuman Rights Act 1998 ( Hra )3755 Words   |  16 PagesSection C: 8 Before the Human Rights Act 1998 (HRA) coming into force, the UK subscribed to a ‘weak’ judicial review. However, the Act has brought a drastic change into the practice of judicial review in the UK. In this essay, I shall argue that with the new powers conferred to the courts under sections 3 and 4 (ss 3 and 4) of the HRA, they have developed a mechanism which allows the court to communicate with Parliament through their interpretations although the practice of judicial review remainsRead MoreSignificance of Section 3 and 4 of the Human Rights Act 19981312 Words   |  5 PagesThe power to strike down Acts of Parliament is defined as the power to declare legislation invalid because it is unconstitutional. This paper will critically assess sections 3 and 4 of the HRA 1998 by defining them, reviewing case law surrounding their use, and by evaluating the powers that they give to the judiciary. By doing so, it will demonstrate that section 3 gives judges powers that are no t significantly different from the power to strike down Acts of Parliament, whereas section 4 does notRead MoreThe Between The Uk Parliament And The Human Rights Act 1998 ( Hra ) On Sovereignty1030 Words   |  5 PagesParliamentary Sovereignty is, as Dicey coined â€Å"the right to make or unmake any law whatever†¦ [with] no person or body†¦ having a right to override or set aside the legislation of Parliament.† Immediately, we see a contradiction between the UK Parliament and the Human Rights Act 1998 (HRA) on sovereignty. The issues David Cameron puts forward in his speech have all attracted much attention from a Human Rights perspective. More and more the European Courts of Human Rights (ECHR) are becoming an integral part ofRead MoreThe Extent to Which the Human Rights Act of 1998 Strengthened the Rule of Law in the U.K. Constitution2570 Words   |  11 PagesThe Extent to Which the Human Rights Act of 1998 Strengthened the Rule of Law in the U.K. Constitut ion The Human Rights Act 1998 (HRA), an Act introduced to give effect to rights from the European Convention on Human Rights (ECHR) in domestic legislation. Its introduction has affected many legal areas; especially the conceptions of the rule of law and their place in the UK constitution. To understand the effect of the HRA, it is first necessary to establish the initial statusRead MoreHuman Rights Act of 1998681 Words   |  3 PagesConvention on Human Rights exists to guarantee legal protection to fundamental rights. It will examine how rights are protected in law and the way the UK approaches the protection of these rights. Explanation will be made of the way that the UK addresses the implementation of the rights in the English legal system. Issues such as conflicting rights and legal limitations will also be considered. An evaluation will be made of whether or not The Human Rights Act 1998 protects the fundamental rights of UKRead MoreThe Human Rights Act 19981486 Words   |  6 Pages The Human Rights Act 1998 The Human Rights Act 1998 was fully enforced in 2000 and describes further effect to freedoms and rights that are entitled under the ECHR (the European Convention on Human Rights) (Ward, Wragg Walker 2011, p. 146). The constitutional framework of the United Kingdom implies that the Human Rights Act 1998 is not ‘embedded’ in the same way as the human rights papers that are adopted by many nations in the world. Nonetheless, it is argued that any attempt to amend or repealRead MoreHuman Right Act, 1998766 Words   |  4 Pagescommunities which are not mainstream, often face additional challenges and barriers in escaping the domestic violence they are experiencing. Religion plays a vital role in that factor. Everybody has the right to worship whichever way they want to worship. Human Right Act, 1998. Vulnerable people have the right to privacy and protection from harm. Invasion of privacy is also an issue in residential homes where some staff members do not knock before en tering a resident’s room. Network of support- When anRead MoreThe Human Rights Act 19981355 Words   |  6 PagesThis is applicable to public authorities in the regard that it is fair, just and reasonable to impose a duty upon them as they act for the collective welfare of society. Newtown Council is a local government authority exercising public function; it is therefore susceptible to liability. Furthermore, it is important to note that the introduction of the Human Rights Act 1998 has affected the law of negligence, a breach of duty that results in damage to the claimant. This area of law has shown to beRead MoreThe Human Rights Act 19981470 Words   |  6 PagesThe Human Rights Act 1998 sets out fundamental rights for everyone within the UK. This incorporates the rights in which were set out in the European Convention on Human Rights, meaning if a persons’ rights are breached, the case can be brought to UK court rather than seeking justice from the European Court of Human Rights located in Franc e. In practice, this ensures all new laws are compatible with the Human Rights. The European Court of Human Rights; which focuses on humanities basic necessitiesRead MoreThe Human Rights Act 1998914 Words   |  4 Pagesimplications in regards to this study and the relevance to this particular case. The Human Rights Act 1998 according to Wild and Weinstein (2013-p217) came into force on the 2nd of October 2010. It seeks to protect the rights of all European nations. (LIST ALL RIGHTS IF YOU HAVE THE WORD COUNT) The Equality Act 2006 according to personnel today (2006) was firstly to establish the Commission for Equality and Human Rights, this is applicable to discrimination on grounds of beliefs and religions in the

Operating in Violent Areas Free Essays

Yes, I think companies should feel free to do business all over the world, as long as they keep to the local law and regulations. Companies are the ones with the money, if all the companies stay away from violent countries or areas, then the local people will never have a better life. Unless the violent stops, but in most countries the violence will go on for many years (like Rwanda). We will write a custom essay sample on Operating in Violent Areas or any similar topic only for you Order Now There are a lot of companies which are making big money in violent areas. The most money is made in sectors like intelligence gathering, investigations in local companies and security. And a lot of constructing companies are making big money in Iran and Afghanistan, that is logical because a great deal of western governments are investing a lot of money in rebuilding those countries. Even the mining industry are booming in those countries, because bigger companies want to buy out. Some economists are saying that taking risk in violent countries can bring you from the second place to the market leading position. So for those companies it is worth taking the risk. As the writer of the ‘Point Yes’ (from the handout) said: ‘Some industry don’t have the luxury of avoiding the violent countries, take the petroleum industry’. If you take a look at the world most dangerous countries you see that Iraq and Colombia are both in the top 10. But they are rich of oil. So companies as Shell and BP will going to invest there, even putting the risk of the employees at risk. Companies are responsible for their employees, if they want to send current workers to those violent areas, they should inform them about the situations and risks. Of course there are limits because your employees are not militaries, so where the fight is at the highest point (like the beginning of the invasion of the middle east), you should not place your factory in the middle of the two fronts. In my opinion the writer of ‘Point No’ is using the reason ‘The people who are willing to work there, are not ideal for working’, because he is afraid that his company won’t be making profit there. I think as soon as a company is noticing a way to make a lot of profit without breaking any regulations it will invest. Let’s take Iraq for example, the need for private security is very high, so security companies can make a lot of money there. The only risk is that most of the people haven’t got that much experience in working in high risk countries. So having trained experience is good for your company. Your employees will be saver and can handle the mental pressure. Another way is to train local people, who are used to the situation, for your company. But local people can also be a problem, let’s take a look at Somalia because the warlords are chancing all the time, it is very hard to do business there. Every warlord has its own rules and regulations, in some cases they just make up the rules because that suits them better. When that occurs your company has a problem. But most of the time they want ‘protection’ money for your employees. So a form of blackmailing. But many companies have a ‘escape plan’, as soon as the political situation changes the wrong way, they pack their bags and jump on the plain. But if a company doesn’t want to take that much risk, they should analyse their options. Follow local news and polls or they can ask the help of commercial risk-assessment services, they can be of great value. Not only fire-arms can be dangerous for companies, even though it is threat, so is the economic condition of a country. If you want to invest in a country but the economy is collapsing (like the Greek did), than I would not go there, unless you work for example in the oil industry. Because even if the local people can’t afford it anymore, you can always export it to your own country. It is the same if you are already located there. My opinion, companies should operate in risky countries if they have a feeling of creating benefits from it, as long as the employees are not forced to go there. But they should always take in to account that a lot of violent countries are not stable, so make sure you are prepared for when something bad happens. To make sure you won’t go bankrupted it is wise to spread your risk by not only depending on that one country. How to cite Operating in Violent Areas, Papers

Operating in Violent Areas Free Essays

Yes, I think companies should feel free to do business all over the world, as long as they keep to the local law and regulations. Companies are the ones with the money, if all the companies stay away from violent countries or areas, then the local people will never have a better life. Unless the violent stops, but in most countries the violence will go on for many years (like Rwanda). We will write a custom essay sample on Operating in Violent Areas or any similar topic only for you Order Now There are a lot of companies which are making big money in violent areas. The most money is made in sectors like intelligence gathering, investigations in local companies and security. And a lot of constructing companies are making big money in Iran and Afghanistan, that is logical because a great deal of western governments are investing a lot of money in rebuilding those countries. Even the mining industry are booming in those countries, because bigger companies want to buy out. Some economists are saying that taking risk in violent countries can bring you from the second place to the market leading position. So for those companies it is worth taking the risk. As the writer of the ‘Point Yes’ (from the handout) said: ‘Some industry don’t have the luxury of avoiding the violent countries, take the petroleum industry’. If you take a look at the world most dangerous countries you see that Iraq and Colombia are both in the top 10. But they are rich of oil. So companies as Shell and BP will going to invest there, even putting the risk of the employees at risk. Companies are responsible for their employees, if they want to send current workers to those violent areas, they should inform them about the situations and risks. Of course there are limits because your employees are not militaries, so where the fight is at the highest point (like the beginning of the invasion of the middle east), you should not place your factory in the middle of the two fronts. In my opinion the writer of ‘Point No’ is using the reason ‘The people who are willing to work there, are not ideal for working’, because he is afraid that his company won’t be making profit there. I think as soon as a company is noticing a way to make a lot of profit without breaking any regulations it will invest. Let’s take Iraq for example, the need for private security is very high, so security companies can make a lot of money there. The only risk is that most of the people haven’t got that much experience in working in high risk countries. So having trained experience is good for your company. Your employees will be saver and can handle the mental pressure. Another way is to train local people, who are used to the situation, for your company. But local people can also be a problem, let’s take a look at Somalia because the warlords are chancing all the time, it is very hard to do business there. Every warlord has its own rules and regulations, in some cases they just make up the rules because that suits them better. When that occurs your company has a problem. But most of the time they want ‘protection’ money for your employees. So a form of blackmailing. But many companies have a ‘escape plan’, as soon as the political situation changes the wrong way, they pack their bags and jump on the plain. But if a company doesn’t want to take that much risk, they should analyse their options. Follow local news and polls or they can ask the help of commercial risk-assessment services, they can be of great value. Not only fire-arms can be dangerous for companies, even though it is threat, so is the economic condition of a country. If you want to invest in a country but the economy is collapsing (like the Greek did), than I would not go there, unless you work for example in the oil industry. Because even if the local people can’t afford it anymore, you can always export it to your own country. It is the same if you are already located there. My opinion, companies should operate in risky countries if they have a feeling of creating benefits from it, as long as the employees are not forced to go there. But they should always take in to account that a lot of violent countries are not stable, so make sure you are prepared for when something bad happens. To make sure you won’t go bankrupted it is wise to spread your risk by not only depending on that one country. How to cite Operating in Violent Areas, Papers

Middle Range Theory in Nursing Essay Example For Students

Middle Range Theory in Nursing Essay Needless to say, any profession may be defined as credible only in case it has the potential to develop a theoretical background to address the needs of society. Nevertheless, nursing is built mainly on the applicability of practical skills in health care rather than theoretical studies. Therefore, to make sure that the nurses occupy a dominant place in the health care industry and society rather than subordinate, it is crucial to understand the importance of the mentioned theories and increase the overall importance of research in the industry of health care. Outline1 What is  the middle range theory?2 Why do middle-range theories matter?3 Some types of middle range theory  in nursing3.1 Theories of uncertainty3.2 Theory of meaning3.3 Theory of self-transcendence3.4 Theory of cultural marginality4 Conclusion What is  the middle range theory? Middle range theory  presents  interconnected ideas related to the actual practice of nursing. This set includes a number of theoretical studies needed for the nurses to their professional development.   As far as the enhancement of these theories is concerned, they develop at the point where practice and pure middle range theories  overlap in health care. One should understand that particular theories are an inevitable part of the discipline’s structure to enhance its position in society. Approximately twenty years ago, the development of the particular theories became relatively common in nursing.   Besides, in comparison to other theoretical studies, they are more limited.   Therefore, middle range theory  in nursing addresses  the sufficient knowledge of this discipline and assist in expanding and clarifying particular phenomena in society related to the overall industry of health care. Why do middle-range theories matter? The autonomy of practitioners. First, the nurses would be much more autonomous when a number of practices are conceptualized with the help of particular theories. Hence, the role of the practitioners in society will also be enhanced. The extensive research in nursing. Middle-range theories in nursing have already become the basis needed for nursing practice and research. When the authority of Nursing as a discipline is enhanced in society, the gap between nursing practice and science due to particular theories will be finally narrowed. These days, there exists the concept of â€Å"praxis† in health care used to refer to the important combination of theory-research practice that exists in the patient-nurse encounter. The development of strong practice. It would be anticipated that with the development of innovative practices that take place in modern society and the system of health care, a number of nurses applying theory will grow. Therefore, theory-guided practice will contribute not only to the development of nursing but also will improve the quality of care provided by the nurses and the patient’s wellness. Some types of middle range theory  in nursing Theories of uncertainty We will write a custom essay on Middle Range Theory in Nursing specifically for you for only $16.38 $13.9/page Order now These particular theories were created to address the possible uncertainty that may occur. The theory presumes that uncertainty is an inevitable part of any illness situation, which is always unpredictable and may be influenced by a number of events in society. Also, the theory explains how the patients subjectively interpret their illness and relate it to possible treatments and outcomes. Theory of meaning This type assists the nurses in discovering meaning for the patients facing a number of life challenges. Many professionals in the sphere of healthcare use this particular theory in society, first of all, to understand the nature of a number of life stresses, one’s behavior and way of thinking when life-changing events take place, and the concept of human suffering. The application of this theory has also evolved from the individual level to groups and to the well-being of a whole society. .u489d1e470e85784378d00daac80f1565 , .u489d1e470e85784378d00daac80f1565 .postImageUrl , .u489d1e470e85784378d00daac80f1565 .centered-text-area { min-height: 80px; position: relative; } .u489d1e470e85784378d00daac80f1565 , .u489d1e470e85784378d00daac80f1565:hover , .u489d1e470e85784378d00daac80f1565:visited , .u489d1e470e85784378d00daac80f1565:active { border:0!important; } .u489d1e470e85784378d00daac80f1565 .clearfix:after { content: ""; display: table; clear: both; } .u489d1e470e85784378d00daac80f1565 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u489d1e470e85784378d00daac80f1565:active , .u489d1e470e85784378d00daac80f1565:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u489d1e470e85784378d00daac80f1565 .centered-text-area { width: 100%; position: relative ; } .u489d1e470e85784378d00daac80f1565 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u489d1e470e85784378d00daac80f1565 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u489d1e470e85784378d00daac80f1565 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u489d1e470e85784378d00daac80f1565:hover .ctaButton { background-color: #34495E!important; } .u489d1e470e85784378d00daac80f1565 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u489d1e470e85784378d00daac80f1565 .u489d1e470e85784378d00daac80f1565-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u489d1e470e85784378d00daac80f1565:after { content: ""; display: block; clear: both; } READ: Salvador Dali: The Conqest Of The Irrational EssayTheory of self-transcendence The primary goal of this particular theory is to create an important framework needed for practice to promote well-being among the patients during a number of difficult life situations, especially when people face loss or life-limiting health issues. Therefore, these particular theories deepen one’s understanding of the patients’ psychology and help the nurses to deal with a number of issues. Theory of cultural marginality It goes without saying that with the increased level of globalization, a number of patients who are immigrants in a particular country continue to increase. At the same time, the chances that a culture conflict will occur also become stronger. Being caught between cultures, a patient faces a number of impacts on his or her health. The essence of the theory of cultural marginality is to give an important answer to the question how the practitioners may ease one’s experience in a new society to minimize the occurrence of culture conflict. The theory underlines not only the difficulties a person faces living between cultures, but also tries to find the link between the challenges in a new society and immigrant well-being. Therefore, it has direct relevance to real-world practice and research, especially when a culture conflict takes place. Conclusion Therefore, it is crucial for the nursing profession to continue the research on a number of middle-range theories and their place in society. Reconsidering the model developed during the concept building process, a number of middle range theories  create logical backgrounds for the practitioners interested in studying the psychology of the patients when they face different issues, including culture conflicts. Particular middle range theories guide day-to-day practice and scholarly research needed in nursing.   The coexistence of various types of theories in nursing show logical relationships between the studies and applies them directly to practice. Besides, the particular theories discussed above and many other theories that were not mentioned provide consistent information needed to develop a deepened realizing of research in nursing in society. Therefore, middle range theories  present new opportunities for expanding nursing through the coexistence of research and theory, ad dressing possible culture conflicts, and identifying many other problems of health care.