American Dream Essay

Another prop used to represent the truth is the flowers. This makes the ending of ‘Death of a Salesman’ effective because when Happy and Biff come home after leaving their dad alone in the restaurant they were meant to eat in but instead left with some girls, Happy comes home with some flowers for his mother, Linda. Linda knocks the flowers out of Happy’s hands out of anger. Linda starts to clean up the mess she has made then realises she has cleaned up enough of her sons messes â€Å"Pick up this stuff, I’m not you maid† Linda says. Then the stage direction says â€Å"Happy turns his back to her in refusal. Biff slowly moves over and gets down on his knees, picking up the flowers† which explains another failure of the ‘American Dream’. I think this proves the difference between the two brothers and how Biff kneels indicating that he can accept the truth and knows that he can’t achieve the ‘American Dream’ whereas Happy is more stubborn like Willy into believing the dream so Miller intends he is destined to go in the same direction as Willy, which is another failure of the ‘American Dream’. Another failure of the ‘American Dream’ is that Happy follows in his father’s footsteps after he knows what happened to him which led to his suicide which makes the ending of the play effective because this play about Willy could repeat it self but would be about Happy. Happy in a way is brainwashed into thinking that he can reach the ‘American Dream’ easily because Willy said you just need to be well-liked and masculine when he was younger. Happy is trapped in his own world creating the same tragedy which has already been lived by his father Willy Loman. It also makes the ending of the play effective because Happy still believes in this ‘dream’ when it might not even be real as he doesn’t know anyone who has achieved it. On a materialistic basis, Willy has worked all his life to realize the ‘American Dream’ but still fails to do that which makes the ending effective. Willy purchases some seeds for his garden and begins to plant them late at night which is another prop which represents the truth. I think Miller’s intention here was to show the audience that he is close to his suicide but realises that he needs to leave something real and living behind for his family to remember him by. We also know that Willy is close to his suicide because he is planting the seeds at the wrong time of the day, which again I think Miller’s target here was to give more clues to the audience that Willy was very serious about committing suicide soon. I also think that the seeds that Willy plants are symbolic in a way to another failure of the ‘American Dream’ because this was Willy’s desire to grow big and tall ironically just like the plant eventually would. At the end of the play Willy is talking to Ben while he is planting the seeds. He talks about how big his funeral will be before he is even dead making the end of the play effective because he’s dreaming about depressing things that will happen after his death for example what his funeral would be like. To be more specific how many people there would be from all over America. This is another failure of the ‘American Dream’ because Willy shows that he has definitely given up on this dream that he had talked about all his life implying that he is going to kill himself. He is selling himself off and valuing himself and he acts as if he is making a business deal with himself. He also talks about how much money Biff will get and that he will be in front of Bernard again in terms of money. Bernard was their neighbour who was a clever boy and went to the same school as Biff and Happy. But back then, in the past Willy influenced his sons to just concentrate on being popular so they could accomplish the ‘American Dream’ as soon as possible which is a failure of the ‘American Dream’ because there is a lack of personality from both Biff and Happy. The stage directions are another significance in the play to represent the failures of the ‘American Dream’. At the very end of the play it mentions that the hard towers of the apartment buildings rise into sharp focus. I think Miller illustrates that even though Willy has now gone forever and is dead, the things that Willy hated the most will still be there and the society will move on which is a failure to achieving the ‘American Dream’ because he has given up on himself and letting society win over him. In the video each time Willy went back into the past it was always set in the garden where it was bright. The contrast of colours between the clothes that were worn were the colours of the American flag. But in the past the colours were bright colours of red blue and white whereas in the present the clothes worn were more faded and dull colours. I think the costumes designer’s purpose here was to show the difference between the present and the past. I also think that the costume designer used bright colours in the past to illustrate that there was more hope for Biff and Happy to achieve the ‘American Dream’ back then. I believe that the audience might respond to the faded colours of clothes worn in the present meaning that the clothes were old, demonstrating that the family could not afford to buy new clothes and other luxuries and this reflects a failure of the ‘American Dream’ in the film. The ending of the play is effective because it’s a tragedy how Willy still believes in the ‘American Dream’ after all he has been through and all the lies he has made up to accomplish this dream. There are many failures of the ‘American Dream’ which makes the ending of ‘Death of a Salesman’ effective because all these failures are revealed at the end of the play. Overall I think that Arthur Miller makes ‘Death of a Salesman’ an effective ending in terms of presenting the failures of the ‘American Dream’ by revealing the truth at the end of the play. The ending of the play is appropriate because it unravels all the unknowns throughout the play explaining why things happened and reasons why Willy, Biff and Happy had failed the ‘American Dream’ .

Life of Pi write-up Essay

Life of Pi shows that we are entering a virtual age as Pi, a selfish murderer, is portrayed as a hero throughout the movie. In the beginning of the movie, Pi is portrayed as a smart, virtuous man – there is an emphasis on his strong faith in God, his love for his family and his knowledge of animals. However, later in the movie, Pi brutally murders a hyena after his family’s ship sank and manipulates the tiger that he was left with to do whatever he pleases. Although Pi faced anxiety because he was alone on a lifeboat with a tiger and with despair from thinking that he would die, these circumstances are not to blame for Pi’s awful behavior. Pi has the freedom to make his own decisions and is able to express his emotions in whichever way he wants, making him fully responsible for the course of his actions. Once Pi is rescued, the whole world starts to see him as a hero for his survival, however they do not process all of his wrongdoings. To make matters worse, the journalists that Pi spoke with after he was rescued do not even use the first story that he shares with them – the one involving human beings – because they claimed it was too gruesome, bringing Pi to replace human beings with animals in his second story. This also represents a virtual age because it sends the idea that wrongful actions are okay when they are presented using animals rather than human beings – truly showing the selfishness and carelessness of society. In conclusion, Pi’s inhumane actions are not acknowledged by the public, and furthermore Pi is being rewarded for his wrongdoings. In Life of Pi, storyteller Pi Patel explains the firsthand account of his adventures. When his family’s zoo business fails in India, they embark on a sea voyage to begin a new life – however, one night aboard their ship in the middle of the ocean, a deadly storm hits, leaving Pi trapped in a lifeboat with several zoo animals. After several brutal incidents, including Pi murdering a hyena, Pi is then left to fend for himself in the company of a Bengal tiger. At the end of the movie, when Pi is rescued and questioned by journalists, he tells them two different stories about his journey: one involving human beings and one involving animals, leaving the journalists to publish the story involving animals. Kierkegaard’s philosophy relates to this story because even though Pi is very religious, he is aware that he is free to put his wellbeing before God. While being stuck on a lifeboat with vicious animals, Pi does whatever he can in order to survive – even if that involves taking part in murder and manipulation. Pi chooses to murder a hyena because this animal killed his mother and would eventually kill him, as well as Pi chooses to hunt fish in order for the tiger to survive and to save himself from being eaten. Pi also had to state dominance and mark his territory in the lifeboat, in order to prevent the tiger from hurting him. Pi is therefore the perfect example of putting the individual before God in Kierkegaard’s philosophy because he believes in God, yet he continues to live his own life with freedom as he makes rational decisions. Pi is also aware of the aggressiveness in his decisions, and continuously apologizes to God for all that he has done. By doing this, Pi gains strength and heals through God, as this is also a part of Kierkegaard’s philosophy.

Constitutional Law Essay Example | Topics and Well Written Essays - 1500 words - 1

Constitutional Law - Essay Example The juvenile was sent by his father to live with the paternal grandparents in South Carolina. The hospitals in the state did not have any Paxil, so they opted for an alternative drug, Zoloft. Zoloft is also an antidepressant. The accused experienced extreme side effects as a result of drug substitution. In addition, the doctors decided to double the dosage in an effort to reduce the side effects (State v Pittman). On the day he committed the offense, the defendant was punished by his grandfather. He resented the punishment and took the decision to kill both grandparents. He used their shotgun to kill. He shot them and burnt the house using candles and paper. He consequently stole the family dog, $33 and left the house in his grandparents’ car. The trial court also heard that he was apprehended some counties away from the scene of the crime and claimed that the death of his grandparents was a result of burglary. The defendant attorneys argued that the accused ought not to have been tried as an adult due to health and mental issues. The defense attorneys argued that the Pittman was under duress from a mental condition. The claim is grounded on the fact that prior to the crime, the convict had a depression problem. Pittman was under antidepressant drugs at the time he committed the crime. South Carolina state law does not have an age limit that differentiates a juvenile trial and an adult trial. The trial court in South Carolina determined that the defendant could be tried as an adult. The prosecution showed that it was indeed the defendant that committed the crime using a shotgun. The court also heard the happenings prior to the attack and after the attack. The prosecutor proved that the offense was carefully choreographed, thus warranting an adult trial. However, the defense team is adamant that although Pittman committed the crime, he was a juvenile under depression. The accused was also under new medication that negatively impacted on his mental

MANAGING PLAN ASSIGNMENT Term Paper Example | Topics and Well Written Essays - 3500 words

MANAGING PLAN ASSIGNMENT - Term Paper Example Then in 2009, Nokia and Blackberry launched new online application stores. Presently, the mobile application spaces are available across all the platforms through a global basis. As per industry research done by Getjar the whole number of application downloads grew at 92%, CAGR to an approximate 50 billion downloads per year by 2012. This is mainly due to the growing number of users being engaged and becoming active application users. In this study marketing strategy of an mobile apps has been developed considering different environmental factors, extent market competitiveness and company’s internal and external factors. Product analysis The mobile Application market is a rapidly growing market. These applications are simple programs that can be downloaded easily. Now the usage of mobile applications on smart phone devices is enhanced. Different mobile applications are also used by the renowned restaurant chains for their integrated services and promotional purpose. It helps t hem to stay ahead in the competitive market. The new APP product is â€Å"Easy Food†. It is going to launch in the U.S. market. Mobile marketing includes the process of using mobile medium to communicate marketing information with the customers. That means it will provide easier access to get information about the location, menus, and promotional deals of the restaurant. Customers can order their food with this application directly or by using the Facebook pages or other online sites of â€Å"Easy food†. It is a user-friendly application. It offers the details of past orders, location and timing of restaurant, and also individual information about the restaurant. Best dish of the restaurant with feedback from other customers are also mentioned here. The competitors of this product are Chow Now, Tabbed Out, Dinner Connection, Uncorked, Go Pago and Belly. However, the product is now in an introductory stage, but its user-friendly application and innovative ideas will hel p it to capture the market in near future. External environmental Analysis External environmental analysis of the product will be done through Porter’s five force analysis and PESTEL analysis. Porters five force analysis Industry rivalry: There are several applications for restaurant can be found in the industry. Chow Now, Tabbed out, Dinner connection, Uncorked, Go Pago and Belly have already good presence and popularity in the market. As a result a good the customer base has also been created by these brands. However the users of these applications are mainly the youths who always had an urge to try something new. So in the starting it may go slow, but with the help of the unique applications, it can easily grab the market. Bargaining power of consumers: Most of the customers are the smart phone users. Eventually they can consider as tech savvy and financially well sound. The numbers of smart phone users are increasing as different mobile companies are started launching the ir own product. It will help â€Å"Easy food† to grab the customers. Bargaining power of suppliers: Here, the suppliers are considered as the software engineers. Uniqueness of the application will make it more appealing to the consumers. Deep knowledge over the subject and the enthusiasm to innovate something new will make the application stand among the competitors. Moreover it is not about onetime expenses the site needs continuous up gradation. Threats of substitutes:

Batch and Real-Time Processing Assignment Example | Topics and Well Written Essays - 500 words

Batch and Real-Time Processing - Assignment Example sic variation between the two is that batch processing involves ‘batches’ whereas real-time processing involves single input (Bernstein, & Newcomer, 2009). In this case, batch processing is preferred. The preference of batch processing lies on its simplicity over real-time processing. With batch processing, data sets are collected and integrated to form a single input. As such, it becomes easy to control the input to achieve the desired output. Batch processing entails the input, processing, and output. Therefore, similar data sets are processed as one data set to achieve an output. The figure below represents a hypothetical batch processing transaction. As evident in Figure 1, electricity consumption rates are summed up into one data set and processed to produce electricity bills. On the contrary, a real-time processing would process individual electricity consumption rates and produce respective electricity bills. As such, the difference is evident. The batch processing system requires inputs to be queued for a set time or quantity before they are processed whereas the real-time processing system requires a continuous cycle of input-process-output. A batch processing system is applicable in a payroll system that involves end-of-cycle processing. Similar to electricity bills, a payroll system is active at set intervals (weekly or monthly). It is prudent to employ batch processing as it collects working hours and integrates them into a single batch at the end of the interval to produce pay slips for employees. It would be time consuming to employ real-time processing where an end-of-cycle processing is required. A batch processing system is efficient for a payroll system. The figure below represents the application of batch processing system in an end-of-cycle processing A batch processing system is applicable in a stock management system. The core advantage of the batch processing system is that it is automated; hence, minimal human interaction. Stock

Winner-Take-All Economy Essay Example | Topics and Well Written Essays - 1000 words

Winner-Take-All Economy - Essay Example This has been fueled by capital gains such as dividend and investment income, the shares have increased significantly from 9 percent to 23.5 percent (Hacker & Pierson 16). The more exclusive the group the group, the more stratospheric the gains have been.  This has been fueled by capital gains such as dividend and investment income, the shares have increased significantly from 9 percent to 23.5 percent (Hacker & Pierson 16). The more exclusive the group the group, the more stratospheric the gains have been.  Gains Have Been SustainedThe income tax statistic reveals that the move of income towards the top has been sustained, and it increases steadily since around 1980. The ever increasing national income shares captured by the richest Americans are a long-term trend which is obviously not related to either the shifting partisan occupation of the White House or business cycle (Hacker & Pierson   17). The rapid increase in a number of shares captured by the richest Americans occur red during the drives on the stock market that occurred between 1980 and 2000.  Gains Have Resulted in Few Trickle-Down Benefits for the Non-rich The average income of the poorest American households increased by 6 percent, while the middle quintiles of households increased by 21 percent. This research study took inflation and government benefits and taxes into account (Hacker & Pierson 17). Most of the richest Americans gain from the struggle and sweat of the middle class and poorest Americans.

Small scale Project Essay Example | Topics and Well Written Essays - 2500 words

Small scale Project - Essay Example Many researchers have proposed the sole solution to be based on proper management of the students’ times regarding the attendance of their classes and taking their assignments promptly and accurately. It is not easy however to control the students’ behavior in a university context (Cierno, Kilpatrick, Resnick, Saunders, & Best, 1996) given the large number of students and the uncaring nature of most of the university lecturers. The entire process therefore lies in the students themselves to ensure that they uplift their performances by properly managing their time and events while at school. This research paper will examine and address the factors that are important to the University of East London undergraduates to help them to learn effectively on their courses. This research will be conducted by using two primary qualitative data searching methods namely; the use of questionnaires and interviews. An accurate sample size will be computed from the entire university pop ulation to act as a representation for the generalization of findings for accuracy purposes. Data analysis will be conducted both qualitatively and quantitatively to allow for generalization of the generated findings to the entire student population. Research methodology Sampling criteria The entire student population is too big to be studied in totality calling for the use of just a section of the population. However, accurate sample size has to be designed in order to clean the data of biases of time and personal preferences. In line with this, accurate sampling techniques will be employed in this research in order to come up with a more representative result from the findings. Yamane formula will be employed in coming up with the most convenient and representative sample size. The formula provides a confidence level of 95%, (Bell, 1995). The method of proportional allocation will be used to allocate samples to strata. This method ensures that the sizes of samples from different s trata are proportional to the size of the strata. From the Yamane formula, Where, n= sample size N= population size e=level of precision Using the formula above, a total of 40 students will be extracted from the total population to be included in the sample frame for this research. The 40 students will be acquired by stratifying the students according to their grades based on their current years of study. The samples will be selected from each stratum by using simple random sampling method. This will ensure that a proper criterion is followed in selecting the sample string for the entire population. According to Carter & Thomas, (1997), random sampling techniques help in eliminating personal and time biases hence the main idea behind its choice. The entire population which is to be studied in this research, all students from the University of East London is very big and cannot be reached adequately using the primary data collection methods that would be employed in th

London, New York and Tokyo as Global Cities Research Paper

London, New York and Tokyo as Global Cities - Research Paper Example Founded by the Romans, London stands on River Thames and has acted as a key settlement spot for almost two millennia (Beaverstock 114). New York City, located in New York State in the Northeastern expanse of the United States, is the state’s and nation’s most populous city. Courtesy of New York City, New York State is presently the United States’ largest and busiest immigration gateway. Japan’s capital city, Tokyo, is also the world’s largest metropolitan area and among Japan’s 47 prefectures. Ancient history suggests that Tokyo was a fishing village in the 15th century, but has evolved through being a cultural, religious and military stronghold to its present economic giant status. Presently, Tokyo is home to the Imperial Family of Japan and the government’s headquarters. In the context of â€Å"global cities†, London, New York and Tokyo lead the world, and are classified as Alpha++ cities. Alpha++ cities are the most globally integrated cities with other. In this perspective, global cities form critical nodes in the worldwide economic framework (U.S. Census Bureau 96). The first part of this paper will provide a brief historical background and overall economic profile of the three cities. Then, it will examine the details of size and diversity of the population and labor migration of the three cities. ... In 1176, a new stone bridge replaced the wooden one built by the Romans. During the reign of Edward III, London became a true capital (Beaverstock 121). Economic Profile Presently, finance remains the largest industry in London, with financial exports contributing largely to the balance payments of the United Kingdom. This makes it a key economic and commercial center for multiple interests on the international business platform, ranking fifth among the world’s largest city economies. In 2012, its Gross Domestic Product (GDP) was estimated at slightly above $ 731 billion. Per capita GDP for the same year was at $51,798 (U.S. Census Bureau 78). With its economic profile, London as a city has been generating about 20 percent of the entire United Kingdom’s GDP for the past decade, while the metropolitan area on its own generates 30 percent. As per statistics at the beginning of 2013, with over 841,000 businesses in the private sector, London had the highest number business es than all other regions and countries in the United Kingdom. Out of the private sector businesses, 30 percent are collectively in the professional, technical, scientific and construction industries, forming a significant part of the small and medium enterprises (SMEs). The major business districts are, in ascending order, Lambeth & Southwark, Canary Wharf, Camden & Islington, Westminster and The City, where economic activities range from accountancy to legal, real estate, architecture and government operations (Scheltema & Westerhuijs 69). Size and Diversity of the Population Between the 16th and 19th centuries, London’s population grew from 50,000 to 900,000 in spite of unhealthy

Germany’s Violations of the Versailles Treaty Essay Example for Free

Germany’s Violations of the Versailles Treaty Essay Adolf Hitler rose to power after Germany was defeated in the First World War. There are a number of things that led Germany to be defeated in the war. For example, the British and French armies kept on advancing against Germany, the joining of the United States in the war which affected Germany greatly, the economy of Germany had already collapsed and people were starving and finally there were a lot of divisions in the army which rendered the army dis-united. After Germany was defeated in the First World War the victorious nations met in Paris where they agreed on various things and how they would deal with Germany. Under this treaty, Germany was given some conditions which it was expected to comply. For example, its army size was to be reduced to 100000 men, to accept to be responsible for the war outbreak and therefore to pay for damages that were caused by the war. These were called reparations and were to be divided amongst the victorious nations which included: Britain, French, Belgium and Italy. Hitler believed that if his army was not divided then, he could not have been defeated. He thought Germany was defeated because it was betrayed by the army but not because it was defeated by the Allies. Because of these reasons he violated the Versailles treaty by re arming. In this essay, I am going to discuss on the relationship between Germany’s aggression and her weapons or how arming his army led to the Second World War. Hitler was the leader of the Nazi party. He became a chancellor of Germany in 1933 and in 1934 he became its leader. He remained in power from that time until he committed suicide in 1945. Hitler used his oratorical skills, charisma and propagandas in putting hope to the population of Germany that had been traumatized by the war. Hitler started building up his army again increasing its size more than it was agreed. He revived the economy and also refused to accept that he was solely responsible for the First World War. He accepted only when he was promised another war by British and France. Those nations thought that by Germany paying the reparations, they could reverse their economic statuses which had been destroyed by the war but Germany refused to pay. The treaty of Versailles was signed on 28th June 1919 in the palace of Versailles near Paris. The victorious or the allied powers forced two Germans to accept the terms on behalf of the Germany. This treaty refused Germany to join the League of Nations. The territories it had conquered were taken by the allies and then shared amongst them. Germany was not allowed to have submarine and air force. The navy was to have only six war ships. Its army was limited to only 100000 men. Also Rhineland –an area of 50 miles wide was declared no man’s land or a buffer zone and Germany was not allowed to place its army there (Hoover A. J. ,1994) This treaty backfired because instead of making the world a better and safer place, it caused more problems and helped Hitler to ascend to power. Germany was not happy with those terms. They complained against its army size that it was vulnerable to attacks. It refused to pay the reparations giving the reason that its economy had been destroyed by the war, it was also bitter because it lost a tenth of its land to the victorious nations. Other nations even smaller than Germany were given free determination as opposed to Germany. The German in other states were not allowed to unite for example, the Australian Germans. They felt they were not to be blamed for the Russia was responsible. They also hated it because they were not allowed to be in the conference. This treaty created a political atmosphere for they blamed everything that went sour to the treaty and the lost war. Also whenever Hitler violated the Versailles treaty he shouted that ‘Germans have refused or want no more. He stated to them openly that he would do away with the oppressive treaty of Versailles. He promised to rearm and unite all Germans who were in other smaller nations. Germany was technical keeping to the terms but in real sense he was not. Hitler violated this treaty in many ways. For example in 1925 under the Locarno treaty he agreed that he would not cross the area bordering France, Belgium and the demilitarized Rhine land but on 7th March1936, Hitler violated this treaty by marching on to Rhineland. Britain and France complained but neither of them took action. In 1932 at a conference at Lausanne, Germany France and Britain signed a treaty to cancel the reparations that Germany was supposed to pay the allied powers. In 1935 Hitler introduced a compulsory military conscription thus mobilizing his army. These included the new navy and air force. Also in 1935 in appeasing Germany who had already started rearming himself, the treaty was violated again by allowing Germany to have submarines. This happened when Germany and Britain signed Anglo Germany Naval Agreement. In 1936, Hitler took the demilitarized territories especially in the Rhineland. In 1938, 12th March Germany entered Austria after gaining a lot mass support. On the following day, he conquered Austria and it became part of Germany. In 1938 Hitler wanted to break war unless he was allowed to take Sudetenland which was on its border. Also in the same year on September 29 the allied powers allowed Germany to take The Sedeten land and on 29th September 1938 they allowed Germany to move ahead but on condition that he would maintain world peace. At first Czechoslovakia refused but it was pressurized to accept that. In 1939 Hitler violated this treaty and occupied Czech province and Slovakia became independent. Later Hungary invaded and Czechoslovakia ceased to exist. In 1939 Hitler made demands on Poland because he wanted the Danzig province and be given a route for accessing it through the Polish Corridor. Since the time Hitler started to violate the treaty, the allies were trying to appease Germany but it proved that Germany’s desires were insatiable. Whenever he was allowed to take a section of its former colonies it insisted on all of it. When it gave an ultimatum to attack Poland, another war was promised by the allies to Germany and when he refused to bow down, he was attacked and the second war broke out in September 1939. There was a relationship between the way Hitler armed himself and the way he resulted to be aggressive. The more he equipped his army the more he became aggressive because he thought he would attack and defeat other nations. In his 2001 book Breuer says that Hitler armed himself more than before in terms of research and development. He even trained new crew members in the U-boat business. Something that was contrary to the treaty. The Germany’s military which had so many limitations after the First World War started developing new and most efficient tactics. They started using tanks and aircraft for the ground warfare. Germany also learned about more advanced ideas from British military scholars. In 1929 a German infantry officer was given the task of administering the German-Russian school which was located in Kazan. Its goal was to train Germans on how to operate tanks in Russia. Hitler was militarily creative and wanted the future war to be a totally different from the First World War (Breuer W. B. , 2001) It can be said that Hitler was sorely responsible for starting the war of 1939 because immediately he became the Chancellor of Germany in 1933 he began building up his army secretly. He also started compulsory army conscription. All these moves were against the Versailles treaty and although the allies were aware of this, they tried to appease Hitler so that he could help them fight against the spread of communism which had proved to be a big threat to them. They thought that by making Germany stronger, it would check the spread of communism. This policy of appeasement continued until Germany went as too far as to attack Poland (Weinberg G. , 1994) Hitler felt that he was fully prepared for the war because of the loyalty he received from his people plus the outstanding army he had built. He had a very potent army and his air force had become second to none in the whole world. He prepared his army with the new war strategy called blitzkrieg (lightning war) where by heavy ground armies were established and many war aircrafts accompanied these men who were highly mobile. This was a new strategy which had never been seen before. He believed that he was a great power in Europe and thus there was a need to strengthen his army. That is why in 1933 he ordered war planes to be increased to one thousand and army barracks were built. He even quit the Geneva conference after his plan of having his army to re-arm to the level of French or French to his level was refused. For the next two years his military might expand in secret and by 1935 march, he felt that he was prepared enough to arm his Nazi army publicly thus violating the Versailles treaty. As time went by, Germany had 300,000 army men and 2,500 war planes in Luftwaffe and Wehrmacht respectively. He ordered the army to be comprised of 550,000 men. In 1936, he repossessed the Rhineland, in 1938 he annexed Austria and in 1938 he demanded to be allowed to occupy Sudeten land at Munich. In 1939 he took over Bohemia and Monrovia and then made strident move to acquire back his territory –Danzig at the Polish Corridor. The attack he made on Poland is what led to the Second World War outbreak. To conclude this essay, we can say that Hitler idea of building up his army made him to feel that he was ready to face any other nation that appeared to be a threat to him. He assumed that no other nation especially the allied powers would dare attack him and that is why he went ahead to reclaim all the territories that had been taken from him and were now being administered by the victorious powers like France and Britain. If the Versailles treaty was not violated, perhaps then there could not have been a second world war. Reference: 1) Breurer W. B. ,( 2001) Deception of World War II, New York: John Wiley and Sons Inc 2) Hoover A. J. , God (1999) Britain and Hitler in World War II: the view of the British clergy, 1939-1945. Praeger publishers. 3) Weinberg G. L, (1994) A World at Arms: A global history of World War II, Cabridge, Cabridge University Press.

Managing in a Global Economy Essay Example for Free

Managing in a Global Economy Essay Hollister Co. is an American lifestyle brand by Abercrombie Fitch Co. The company was launched by July, 2000. It is headquarter at New Albany, Ohio. Till 2012, Hollister already has 571 stores in the world [Appendix 1]. Like its parent company, Hollister sells casual apparel which include knit layers, tanks , graphic tees, polo shirt, plaid, classic, sweaters, hoodies, outwear, jeans, pants shorts, skirts, dresses, sweatpants, and yoga; and the accessories which include totes, belts, socks, and fragrance. The concept was originally designed to attract consumers aged 14–18, at a lower price than the parent brand through its California-style inspired image and casual wear. Goods are available in-store and through the companys online store. It was ranked as the second most preferred clothing brand of US teens on a long list of actual West Coast companies in 2008 by Piper Jaffray. (Hollister official website, 2012) According to Abercrombie Fitch’s latest 10-k form, Hollister’s net sales in 2011 and 2010 are $2,022,002,000 and $1,552,814,000, separately. There is 30% increase of net sales from 2010 to 2011. Based on the data, we can figure out that Hollister’s net sales are almost two times to its parent company. Foreign Markets Expanding Motivation The motivations for Hollister to expand in foreign markets will be defined as two categories. First of all, Abercrombie Fitch wants to get rid of its lower sales in U.S market and earn profit from outside expansion. Abercrombie began to launch its expansion plan outside the USA since 2007, driven at least in part by a weakening of its domestic market. For the quarter ended July 28, Abercrombie reported a profit was dropped by nearly 52%. According to media reports, more than 135 of its American stores have been closed since 2010 and there will be 180 closures in the following year. However, based on Abercrombie Fitch’s 10-k form, the net sales of international stores are increased steadily. The company therefore has high hopes for the European and Asian markets, where its expansion is being pushed forward. (WSJ, 2012) Hollister, as one of its subsidiaries, plays a crucial role in the expansion plan because it has good performance with higher net sales and large numbers of sh op. Another reason for Abercrombie Fitch is Asia apparel market is keep growing. Asia’s fashion and apparel market will continue to grow at a healthy clip through 2011-2015. The reason why we focus on Asia area is because as forecast last year, clothing demand in Asia is higher than the demand in Western Europe and North America in 2011 [Appendix 2]. â€Å"Many economists predict that demand will be driven by rising personal disposable income levels and an increased focus on fashion apparel, especially in the main cities.† Said by Carrie Yu. As we known, many foreign apparel brands are already present in Asia, and they will spread steadily. Here we have a figure to show the market demand growth in different Asia countries [Appendix 3]. After analysis the data and GDP per person at purchasing-power parity [Appendix 4], we choose three countries-Japan, Singapore and Hong Kong-that are good for Hollister to expand in. Three Study Countries: Singapore, Japan and Hong Kong Japan Our first choice is Japan. Here we have two reasons to support our idea. First of all, it goes without saying that Japan is one of the most potential countries in Asia. For years, Japan has been Asias richest and most powerful economy. It was the first Asian economy to industrialize, and the emerging Asian tigers—Hong Kong, Singapore, South Korea. There are three advantages for Japan to become a good expansion country. Firstly, the economy of Japan is the third largest national economy in the world after the United States and the Peoples Republic of China and is the worlds second largest developed economy (Oced library, 2010). According to the International Monetary Fund, the countrys per capita GDP was at $34,739 or the 25th highest in 2011. Besides, according to Wipo resources, Japan is the worlds 3rd largest automobile manufacturing country, has the largest electronics goods industry, and is often ranked among the worlds most innovative countries leading several measures of global patent filings. Summing up all these data, we can figure out that Japan is a growing market. Strength The strength for Japan is it got the high purchasing power. According to Appendix 5, the GNI of Japan is 45180 US dollar in 2011, while GNI of US is 48450. However, it doesn’t mean that the purchasing power of Japanese is lower than America citizen. The consumer spending is enormously high in Japan. Spending is an important role of consumers. Consumer spending plays a significantly economic factor since it usually coincides with the overall consumer confidence in a nation’s economy. High consumer confidence indicators usually relate to higher levels of consumer spending in the economic market. Consumer confidence provides governments and businesses with an analysis on consumer perception. (EconomicsHelp, 2011) From CIA factbook, we can figure out that Japanese is the third country which got higher purchasing power parity toward to Asia area, besides China and India. Moreover, The Japanese are very loyal to foreign prestigious fashion brands such as Louis Vuitton and Gucci. The sales of these companies have been growing steadily with support from young consumers. As a subsidiary of Abercrombie Fitch, Hollister must play a leading role in fashion trends if we focus on marketing promotion. Weakness The main weakness for Japan divided by two parts. Obviously, the first weakness is the unpredicted geography phenomenon. Everybody knows that Japanese business have got a tough time by tsunami and earthquake in recently years. These two disasters are having large negative economic effects on Japan since it is a major role in global supply chain and as a producer of final products. Based on this fact, we think Japan is not a good place to set up facility in order to produce clothes. Second of all, According to Reuters (2011), Japans new government faces a dilemma over how to keep its campaign promises while reining in huge debt, a fragile economy that could slip back into recession, and strains in ties with close security ally the United States. Thusly, we think Japan will not be an appropriate country because it got unstable political risk. Opportunity No doubly that Japan is the core of fashion in Asia area. It is famous by its creativity and design toward to the whole world. As a result, as an apparel company, Japanese market has potential opportunity to be entered. According to Japanese fashion market report (2011), here we have two advantages to prove that Japan is a country full of fashion. 1. Japan is a critical fashionable country because it holds many fashion events annually. Thusly, Japanese consumers are sensitive to trend cycles in the international fashion market because there are so many brands enter into Japan market every year. 2. They are significantly influenced by Fashion Magazines. Although technology is developed these years, magazine is still playing an important role in Japanese teenagers’ life, like Mina, Rays, Vivi and etc. So if Hollister invest in Japan, focusing on magazine will be a good choice for this company when they doing marketing promotion. Threat Everything has two sides. Since Japanese fashion market is full of opportunity, it is also highly competitive. According to Imported Luxury Brands Market in Japan: Key Research Findings 2011, imported luxury brands market in 2010 is estimated at 831.4 billion yen, 92.9 % of the size in previous year. This data means that there are many companies already in the market. The number of competitors in Japan is huge. According to Appendix 6, 24% market is owned by US brands. After doing research, we known that Hollister’s main competitors, Gap and American eagle outfitters, have already entered Japanese market. What’s more, even though they are owned by the same company, Abercrombie Fitch, probably another biggest competitor, entered Japanese market since 2009. [Appendix 7] In a conclusion, although Japan got higher purchasing power and fashion opportunity, it is still not an appropriate country to be entered because of the political risk and high competition. Singapore Singapore is located in southeastern Asia at the southern tip of the Malay Peninsula; the city-state of Singapore consists of a main island and some 60 islets. The country has a population of 4,740,737 in which the capital and major cities occupy 3,654,103 people according to the data last year. Although the country seems not as large as many other countries, Singapore’s gross domestic product was $326.8 billion and its per capita GDP of 61,103.36 US dollars in 2011 estimates is comparable to that of leading Western European nations, and its high standard of living and strong trading links have secured its position as one of ASEAN’s leaders (Global Road Warrior, 2012). Strengths 1) Outstanding tax system.When Japan cuts its corporate tax rate this Sunday, the U.S. will have worlds highest tax rate on business income. The following chart has shown the data. (Figure Source: Isidore (2012), CNNMoney) However, Singapore’s corporate income tax rate is low which in a flat of 17% since 2010. It is often cited as the leading example of countries to reduce corporate income tax rates and introduce various tax incentives to attract and keep global investments. Since January 1, 2003, Singapore has adopted a single-tier corporate income tax system, which means there is no double-taxation for stakeholders. Tax paid by a company on its chargeable income is the final tax and all dividends paid by a company to its shareholders are exempt from further taxation (Janus, 2012). Two of Singapore’s unique advantages are its low effective personal and corporate tax rates. Personal income tax has a tier system that starts from just 0% and goes up to 20% for income above $320,000. Similarly, effective corporate tax rate for Singapore private limited companies for profits up to $300, 000 is 8.5% and capped at a flat rate of 17% for profits above $300, 000 (Janus, 2012). What’s more, there are no dividend or capital gains taxes in Singapore. 2) High purchasing power.The GDP per Capita, in Singapore, when adjusted by Purchasing Power Parity is equivalent to 278 percent of the worlds average. Consumer Spending in Singapore increased to 27,485.40 in May of 2012 from 27,467.20 in February of 2012. Historically, from 1975 until 2012, Singapore Consumer Spending averaged 12,752.67 reaching an all time high of 27,485.40 in May of 2012 and a record low of 3,553.90 in February of 1975 (Trading Economics, 2012). 3) Exchange rate Labor cost.The USDSGD spot exchange rate depreciated 0.0194 or 1.56 percent during the last 30 days. According to Janus (2012), The Singapore dollar has been consistently appreciating against major currencies. It also got about $260 billion based on average exchange rates or $252 billion based on year-end currency rates last year. Historically, from 1980 until 2012, Singapore Labor Costs averaged 96.00 reaching an all time high of 129.93 in February of 2009 and a record low of 57.37 in May of 1980. These data are all lower than Hong Kong and Japan’s (Trading Economics, 2012). 4) Political stability.Singapore is rated No.1 as the most politically stable country in Asia (Janus, 2012). 5) English is main language.Singapore has a 10-year compulsory education program commencing at the age of 7 years. English is the first language and the medium of instruction in schools (Global Road Warrior, 2012). This means almost 100 percent of People in Singapore speak and understand English well, which would bring much easier communication for Hollister to enter into the country, especially to the communication within the management level of Singaporean while doing business. 6) Quick and easy registration. It only takes about 1-2 days to incorporate a company in Singapore, with the government providing assistance along the way (Janus, 2012). As the easiest place to do business in the world, Singapore company registration is a quick and easy process, which involves just two procedures that can be completed online within 24 hours for a retail outlet. A Singapore subsidiary can be wholly owned by a foreign company and is considered a separate legal entity from the parent company. Also, a Singapore subsidiary is generally treated as a local resident company and therefore is entitled to tax benefits available to local companies (Janus, 2012). Weakness 1) If you want to set up a limited liability company (LLC), there are two conditions that are required: it must have two agents acting on its behalf in the country; and one of them must be a Singapore resident, a native Singaporean, or someone who has a Singapore employment pass. 2) Singapore is among the most expensive in the world, as the cost of living here is very high. 3) Hollister has to hire Singapore resident and qualified Singapore auditors to do the business accountings to work with government. Opportunities 1) Singapore is one of the world’s famous shopping paradises. Its central business district has a lot of upscale shopping square: from the latest fashion clothes, jewelry, watches, perfume, cosmetics to the sports goods and daily necessities etc. Singapore’s retail sector has done well in 2010 and well into this year on the back of the tourism sector’s robust performance and in spite of a slowing economy in recent months. According to the latest retail sales index released by the Singapore Department of Statistics, Singapore’s retail sales excluding automobiles increased 7.4% year-on-year in August 2011(Janus, 2012). Hollister, as the subsidiary brand under Abercrombie Fitch, has very large opportunity to get benefits from opening retail stores in the country. 2) Singapore is also ranked the No. 1 in tourism so there is the potential to do business. Threats Fashion is a highly competitive industry worldwide, but Asia stands out for its stylish and practical design. Although Hollister is also a very famous American brand under AF, it still faces strong competition from Asiatic fashion. Since Singapore emerges as global fashion apparel hub with large amounts of upscale shopping squares, the opportunity to open shops in this fashionable country could also become a big threat. Hong Kong Hong Kong is a Chinese special administrative region situated in eastern Asia, with a 455-mile coastline on the South China Sea and a 19-mile border with China. Hong Kong’s population is 95 percent Chinese, with the majority coming from neighboring Guangdong province or within Hong Kong itself. The population was about 7,122,508 in 2011. Cantonese and English are the two official languages. Hong Kong’s free-market economy was vulnerable to the global economic crisis of 2008, but its increasing integration with China helped it to quickly recover (Global Road Warrior, 2012). The GDP in Hong Kong was worth 243.67 billion US dollars in 2011, which roughly equivalent to 0.39 percent of the world economy (Trading Economics, 2012). Strengths 1) Well located.Hong Kong is located at the heart of Asia, alongside many of the region’s most exciting business market such as Guangzhou, Taipei, Manila, and Bangkok etc. And it is the gateway to Mainland China. 2) Free trade port.Easy government policies for foreign fashion brands. Hong Kong is known for its free port status and easy customs procedures. Duty is paid on very few products. 3) Tax-friendly economies.Hong Kong’s profit tax is capped at 16.5 percent according to the 2011 study, and there are no capital gains and dividends taxes (InvestHK, 2012). Weakness 1) Most of good locations have already occupied by large local fashion chains or early entering foreign fashion brands. 2) After the global financial crisis in 2008, the economies of Hong Kong still need to recover. 3) Hong Kong has the lowest GDP in 2011 compared to Singapore and Japan. Opportunities 1) There are large fashion-hungry population in the Hong Kong market, especially many people from Mainland China love to go shopping in Hong Kong. 2) Some foreign retailers are successful in the Hong Kong retail market. In addition, Abercrombie Fitch was prepared entering into the country, which would in a sense lay a good foundation to its subsidiary, Hollister. Threats 1) Competition with Many local fashion brands, such as GIORDANO, BALENO, Bossini, Esprit and so on. And what is worsening is that these local brands all offer very cheap prices. 2) Many other foreign fashion competitors: Hong Kong shopping malls are creating space for Swedish brand Monki and U.S brands Gap, Forever 21 and American eagle. Others like HM, Zara, Mango and Japanese brand Uniqlo have already established outlets in the city (Thondup and Tsang, n.d.). After reviewing the strength, weakness, opportunity, and weakness in the three countries, we chose to expand business into Singapore. We strongly recommend Hollister Co. to invest in Singapore where is a stable and strong economic, and a low risk country in political change. Singapore Marketing Singapore is an island country. The land area is 714.3 Square kilometers. The population in 2011 is 5,260,000. The population density in 2011 is 7,257 per Square kilometers. Shenton Way is the fourth largest financial center, the adjacent Keppel port is one of the worlds busiest ports. According to Singapores economic structure, the manufacturing sector accounted for 25%, the construction industry accounted for 5%, wholesale and retail trade accounted for 16%, transportation and telecommunications accounted for 11%, the financial services industry accounted for 12%, business services accounted for 12%, the hotel and catering industry accounts for 3%, the other accounts for 16%. Due to it is a small country, shopping is considered a kind of sport in Singapore. The government draw up a lot of plans on developing their shopping market. For one thing, many shopping malls almost per square mile are located in Singapore. Orchard Road, one of the famous shopping streets, is a 2.2 km long st reet and it is a retail and entertainment centre in Singapore. Orchard Road also contains a large number of high-end restaurants, coffee chain, nightclubs and hotels. There are many famous building and variety of retail store as well as there is large number of luxurious products with well-known brand. There’s practically a shopping sale of sorts all year round in Singapore, with the most notable one being the Great Singapore Sale. On the other hand, it’s a year-round shopping paradise. You only need to take a walk down Singapore’s iconic shopping districts to find out what’s in store for you. The best time to visit is during its annual eight-week Great Singapore Sale, when all kinds of discounts and deals pop up island-wide from late May through July. Great Singapore Sale 2012 will be held for 8 weeks from Friday, 25 May 2012 to Sunday, 22 July 2012. The Great Singapore Sale 2012 has been timed to coincide with the peak travel seasons to enable visitors to enjoy the fantastic deals all around. During the Great Singapore Sale 2012, you can enjoy up to 70% discount for everything on sale, anywhere in Singapore. From posh shopping centres in Marina Bay and Orchard to small stores in the suburbs, you will find fabulous deals for clothes, gadgets, beauty treatments, spa, attractions, and even food! (Great Singapore Sale, 2012) Furthermore, Singapore set large variety shopping malls to meet the different requirement of various groups. The ethnic shopping enclaves in Singapore include Little India and Chinatown – both are tourist attractions in their own right, steeped in ethnic colors and flavors. (Singapore Shopping Madness, Yong Shu Hoong) For instance, Chinatown mainly offers authentic Chinese products including tea, herbs, medicines, foodstuffs, silks, cheongsams, handicrafts, household items and antiques. Finally, Singapore duty free shopping prices at all three terminals are competitive with most places in Asia. The slippery greenback means rates are fluctuating constantly. Pick up a 50ml Dior j’adore eau de toilette for around S$96 (US$76), Chanel Alure EDP 50ml at S$112 (US$89). (Singapore Shopping Madness, Yong Shu Hoong) Human Resource Management ââ€"†Human Resources Management Practice Due to the explosive growth of the Asian economies over the past two decades, considerable attention has been focused on the human resource management (HRM) practices of Asian businesses. Cultural diversity of workforce in modern business organizations against the backdrop of globalization has attracted the attention of many researchers and analysts. By the 21st century, Singapore has developed into advanced and high-income economies, specializing in areas of competitive advantage. As one of the four little dragons in Asia, Singapore can be an interesting subject to study and it is also important for MNCs to understand Singapore’s advantages and disadvantages of its human resources management practice. Hollister Co. is an American lifestyle brand by AF Corporation. The concept was at a lower price point than the parent brand through its SoCal-inspired image and casual wear. Hollister Co. could take some advantages of Singapore’s human resources management practice to expand its business in Singapore. According to a demographic survey, as of 2011, the population of Singapore is 5.18 million people, of whom 3.25 million (63%) are citizens while the rest (37%) are permanent residents or foreign workers. The government is considering capping these workers, although it is recognized that they are crucial to the countrys economy, as foreign workers make up 80% of the construction industry and up to 50% in the service industry. (Building and Construction Authority, April 2011) Singapore is a multicultural country with a majority population of Chinese (74 percent), with substantial Malay (13 percent) and Indian minorities (9.2 percent). The country has four official languages consisting of Mandarin, Malay, Tamil and English. English is the main working language and is the mandatory first language in all schools in Singapore. Most Singapores Chinese derived from southern China, especially in Fujian, Guangdong and Hainan, of which 40 percent is Fujian, the followed is Chaoshan, Cantonese, Hakka, Hainan and Fuzhou. To developing human resource management practice for Hollister Co., we should understand Singapore’s basic Human Resource Management (HRM). Hollister Co. is categorized as a service business while Singapore is a country which workforces are highly related to services sectors. In addition, considering the features of Singapore’s location, demography and other fields, its human resources is consisted of Western and Asian features. We will focus on Singapore’s HRM style and features of workforces to develop the human resources management practice for Hollister. ââ€"†Human Resources Management Style Leadership and the Workforce in Singapore is a survey that evaluated by the Singapore Human Resources Institute. Data were obtained from 192 respondents who were engaged in a wide variety of Singaporean industries. A total of 68 per cent of the respondents are HRM practitioners. Many of the respondents are supervisors reporting to senior management such as CEOs and managing directors. (Chart 1) All the data shows that globalization has had its impact on Singapore in a much more pronounced way. Singapore has been reputed for very advanced HRM practices both at the national and the international levels. In addition, Singapore has been especially known for its international HRM practices in a small city state. On the other hand, Singapore didn’t focus on manufacturing; it is a city state with a greater focus on financial services and other services instead, such as banking and insurance. Moreover, Singapore has a similar diversity culture of shopping centers manned by equally culturally diverse workforce. (Malikanrs, 2010) Singaporean enhances on performance record and job experiences, appropriate training and seniority when considering promoting its employees. Singapore has no set patterns of recruitment for either the entry level or middle level positions due to affecting by the Western model. However, Hofstede (1984) found that the national culture of Singapore is high in power distance. In high power distance cultures, superiors and subordinates treat each other as unequal. Singapore is also called a â€Å"nanny state’ in which people are supposed to do exactly what they are told. The mixed unique feature of national culture therefore makes Singapore’s HRM practices more complicated. ââ€"†Hiring and Retention The unemployment rate in Singapore was last reported at 2 percent in the second quarter of 2012. Historically, from 1992 until 2012, Singapore Unemployment Rate averaged 2.4 Percent reaching an all time high of 4.8 Percent in September of 2003 and a record low of 1.3 Percent in September of 1997. The employment rate for older residents made good progress. A record 61.2% of residents aged 55 to 64 were working in 2011, up from 59.0% a year ago. The employment rate for both males (from 75.0% to 76.4%) and females (from 43.4% to 46.3%) in this age group rose to new highs in 2011. Singapore’s workforce is inherently diverse due to their multi-racial community. Employees from different generations, gender, nationalities and cultures often work together in the same organization. It is therefore important for organizations to put in place policies and practices to build an inclusive and harmonious workplace. A diverse workforce that is well-managed can bring about better business per formance and higher employee engagement. ââ€"†Training and Advancement The improvement in educational profile of older residents was another contributing factor as the better educated were more likely to participate in the labor market than those less educated. The educational profile of the labor force continued to improve, as the better educated younger residents enter the labor force and the relatively less educated older cohorts retire progressively. The share of degree holders in the labor force almost doubled from 15% in 1999 to 28% in 2010. Conversely, the lower educated labor force from 36% to 22% over the same period. (Chart 2) ââ€"†Compensation Chart 3, 4, and 5 in appendix show the average salary, turnover rate, and worked hours of Singaporeans. The average salary for Singaporean to work 46.3 hours per week is around Singapore $ 4,000(about $ 3,000). The average over-time work hour is 3.7 hours a week. (Employment Situation in Fourth Quarter 2010, 2011) ââ€"†Ideal Human Resource Management First of all, we would like to talk about language skill. As mentioned above, English is the official language in Singapore. In addition, Singaporeans have high level of education and language skills in average. Therefore, the company can hire local employee without worrying about language barrier. Furthermore, we’ll analyze workforce. Due to the mixed unique feature of national culture, Singapore’s workforce is inherently diverse. Employees from different generations, gender, nationalities and cultures often work together in the same organization. On the one hand, it is easy to train and educate new employees to understand Hollister’s organizational cultures and requirements. On the other hand, Hollister Co. also has to understand the mixed unique feature of national culture. With the aging of population, Singapore government also encourage foreigner to go there and look for a job. In the meanwhile, Singapore advocates foreign enterprise producing products which is suitable for the elderly. This is another opportunity for Hollister Co. to expand their business in Singapore. Finally, we’ll talk about hiring, training, retention, promotion and salary. The unemployment rate in Singapore is very low, the educational background of workforce is becoming higher and higher, the low labor turnover and high level of wage show the Singaporeans are likely skill oriented workforces. The average monthly wage in Singapore is around 4,000 Singapore dollars which equals $3,000. It is a little bit lower than the average income that American household makes. (How much does the average American make breaking down the us household income numbers, 2011) Because Hollister Co. does not have to pay so much money for workforce training, we suggest Hollister Co. offer a somewhat high wage than the current clothing stores in Singapore and use bonus to motivate employees. Political and Legal Environment ââ€"†Legal Environment The Republic of Singapore has a legal system largely based on the British Westminster model, where the power to govern and administer the country is divided between the Executive, the Legislature and the Judiciary. Ranked by the World Banks report, Doing Business 2007: How to Reform as the most accommodating country to do business in the world, Singapore is a strategic and reliable base for foreign investors to invest in the emerging Asian markets. (Overview of the Legal Environment of Singapore, RSM Chio Lim) Singapore is well known as the Switzerland of Asia. With a population of approximately 5 million people, Singapore has an astounding 90% literacy rate, and over 85% of inhabitants have a secondary or higher education. The country has almost zero crime, zero corruption and no drug problem. (Singapore Incorporation Advantages) (International rankings of Singapore, Wikipedia) Political environment Pro-business environment: One of characteristics in Singapore is its pro-business environment. It means that Singapore has an environment that is favorable for foreign investments and can attract many foreign entrepreneurs. Furthermore, it is easy for investors to set up businesses and make higher profits. Compared to other countries, investors only have to take 1-2 days and they can incorporate a company in Singapore. Because of pro-business environment, Singapore has become one of favorite countries for investment (Singapore Incorporation Advantages, 2012). Financial assistance: In order to help start-up companies to gain funding, the Singapore government agencies set up several financial assistance schemes to let start-ups gain access to funding to turn their business ideas into reality. Moreover, Singapore government sets up many private sectors to help investors improve efficiency strengthen capabilities of their company (Singapore Incorporation Advantages, 2012). Great tax system: For a starting business, taxes cost is always a top priority. One of features in Singapore is its low effective personal and corporate tax rates. For the personal income tax, Singapore government is based on personal income to design a tier system that starts from 3.5% to 20%. For corporate tax, †Singapore private limited companies for profits up to SGD 300,000 is below 9% and capped at 18% for profits above SGD 300,000.ï ¼â€š(Singapore Incorporation Advantages) After 2010, corporate income tax rate will decrease from 18% to 17% in Singapore. Furthermore, there is no capital gain tax. It represents that Singapore government uses a single -tier tax policy. This policy is that when the income has been taxed at the corporate level, companies can give shareholders dividends for tax free (Singapore Incorporation Advantages). Political systems: Singapore government has an open attitude and its vision is broad to the whole world. Its political system is using a rational, pro-business way to enact laws, decide priorities and sets regulations. For example, there is almost no restriction on foreign investment including manufacturing and service activities. Any business is supported by political infrastructure and given maximum encouragement from the government. This support is an important way to let businesses grow and prosper (Singapore Incorporation Advantages). In addition, the immigration policy is open and flexible in Singapore. It assists the relocation of foreign investors to set up businesses here. If a business entrepreneur needs to run his business or and hire foreign professionals, the government can make appropriate Singapore work visa provisions to meet his needs and wants (Singapore Incorporation Advantages). Free trade agreements: Free Trade Agreements is a significant system in Singapore. It means that most products can be imported without barrier. Businesses can enjoy many benefits including tariff concessions, preferential access to certain sectors, faster entry into markets and Intellectual Property protection. Moreover, Free Trade Agreement is a way to connect Singapore to their trading partners such as United States, Europe, China, Hong Kong and, Japan (Singapore Incorporation Advantages, 2012). (Singapore Incorporation Advantages, 2012) High Quality of Life One of reasons why many investors set up their business and relocate to Singapore is the quality of life. Singapore is in a convenient location and provides a great public and private transportation, a safe and clean environment to live. It also offers an outstanding support system for businesses. Singapore is suitable for work and living. (Singapore Incorporation Advantages, 2012) Economic and Financial Environment In fact, the economic situation in Singapore is very strong and stable, because the attitude of government is open-minded and this country is anti-corrupt. The economic growth is also steady. Singapore is one of countries in the world that has the largest per capital Gross Domestic Product (GDP). The Gross Domestic Product (GDP) is equal to the total expenditures for all final goods and services produced by a country in a period of time and measures national income and output for a countrys economy. According to the World Bank, the Gross Domestic Product (GDP) in Singapore was worth 239.70 billion US dollars in 2011. The GDP value of Singapore is roughly equivalent to 0.39 percent of the world economy. Historically, from 1960 until 2011, Singapore GDP averaged 51.8 billion USD reaching an all time high of 239.7 billion USD in December of 2011 and a record low of 0.7 billion USD in December of 1960 (Trading Economics, 2012). (Trading Economics, 2012) The annual growth rate in Gross Domestic Product (GDP) measures the increase in value of the goods and services produced by an economy over the period of a year. It considers a full year of economic activity and avoids the need to make any type of seasonal adjustment. The Gross Domestic Product (GDP) in Singapore expanded 2.00 percent in the second quarter of 2012 over the same quarter of the previous year. From 2007 until 2012, Singapore GDP annual growth rate averaged 5.1 percent reaching an all-time high of 19.8 percent in June of 2010 (Trading Economics, 2012). (Trading Economics, 2012) Singapore exchange rate is range from $1.30 to $1.50 for the last 10 years. It is kind of stable. Monetary Authority of Singapore (MAS) manages the exchange rate of the Singapore dollar. Investors can transfer funds in and out of Singapore freely in any currency. Furthermore, Singapore government bond has very good rating. Standard Poors (SP) in August 2011 gave it AAA and Moody’s gave it Aaa in 2008. According to China Post, Singapore banking system is rank top four in the world. When other country have problem with financial crisis, most of Singapore banks were rated B by Moody. We have to realize more about Singapore’s banking system for doing business. Banking System Cash and Check In Singapore, for foreigners or tourists, it is very convenient to bring their own currency and exchange from market to airport. Foreign currency banknotes and travelers checks can also be changed easily at most banks. In addition, ATM link to global banking networks can be found everywhere. Foreigners or tourists can pay for most things by using a credit card in Singapore. (Singapore Banking System, 2012) Singapore banks issue checks that can be processed electronically. Writing check can only use black and blue inks. If a person only wants to deposit and does not cash the check, he has to draw two parallel diagonal lines in the upper left corner. If he crosses out ‘or bearer’, to the right of the payee line – the check can only be deposited into the account of the named payee. When a person deposits check, he has to write his name, account number and telephone number on the back of the check. (Singapore Banking System, 2012) ATM-Automated Teller Machine ATM machines for local banks are everywhere in the Singapore. In fact, all of the Singapore local banks and some of the international banks such as Citibank, HSBC and Standard Chartered have issued ATM cards. It considers that foreigners and investors have to withdraw money immediately in a place. However, there are not many branches and ATMs in the international banks. Here is a limitation and daily withdraw amount from ATM cannot exceed SGD$3,000. (Singapore Banking System, 2012) Cash Flow Because using check will take time to clear the bank, companies have to take that into consideration for their cash flow. There is a well-established banking system with three major local banks that offer a full service of consumer banking in Singapore. It includes ATMs, telephone banking and internet banking. In addition, besides local banks, some international banks in Singapore are doing the same business. Recently, those international banks have been allowed to set up branches and 15 ATMs. (Singapore Banking System, 2012) Accounting Standards Singapore accounting standards are followed the International Accounting Standards and International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board. Financial Reporting Standards (FRS) is accounting standards in Singapore. All companies with financial period starting on or after January 1, 2003 have to comply with Financial Reporting Standards (FRS) (Introduction to Accounting Standards in Singapore, 2012). One of the main principals of Singapore accounting standards is accrual-based accounting. It is the same as United Stated General Accepted Accounting Principle (GAPP). Under accrual basis, the revenue and expenses are recognized and recorded in the period when they occur but not receive or pay cash. They are recorded in the accounting records and reported in the financial statements in a period of time. The function of preparing financial statements on the accrual basis is to inform users not only of past transactions including the payment and receipt of cash, but also of duties to pay cash and funds that have received in the future (Introduction to Accounting Standards in Singapore, 2012). Actually, there are contains about 39 different standards with each standard named as FRS X in Singapore’s accounting system. For example, FRS 1 represents Financial Statement, FRS 2 represents inventories and FRS 18 means revenues. In addition, each standard involves a specific topic like presentation of financial statements, recognition of revenue, accounting for inventories, and so on. (Introduction to Accounting Standards in Singapore, 2012) Cultural of Singapore In Hofstede’s theory, there are five dimensions of culture, which are power distance, individualism, masculinity/femininity, uncertainty avoidance, and long-term orientation. The five dimensions are used to make a distinction between country and country. The society of Singapore is basically consisting of Chinese people. Around 77% of Singaporeans are Chinese. Therefore, the culture of Chinese does influence Singapore a lots. For example, the Buddhist-Shinto societies have an additional dimension which is long-term orientation (Geert Hofstede, 2011). Singapore Five Dimensions Culture Asian Countries Dimension Culture http://www.geert-hofstede.com/hofstede_singapore.shtml (Geert Hofsted Cultural Dimensions-Singapore, 2011) Power distance With Chinese population, Singaporeans are affected by Confucian thinking and values, so they adhere to a hierarchical relationship in their society. They believe that their society is composed of people who are in different standing and unequal relationship. The differences in standing are the signal for people to evaluate each other. The lower standing people should heed what a superior says. In addition, junior and less experienced people are expected to keep their opinions in their hearts. This kind of high power distance has been characterized in Asian society for at least two thousand years (Geert Hofstede, 2011). Individualism In an individualistic society, we can find the relationship of people is loose. The United States is the most individualistic society, but Singapore is ranked 53th out of 66 countries (ClearlyCulture, 2009). In Singapore or other Asian societies, children are raised to stay with the family. Children are educated to be a part of the group and stay in the group when they are infants. Children are taught to be dependent on the group, to make decisions which benefit the group, to support the group, and to maintain the honor of the group. The group can be family, school, or company. All of the decisions which are made by the elders for the children are common. After the Singaporean children become adults, they are not expected to cut off the former relationship (Geert Hofstede, 2011). Masculinity A high score on this dimension means competition can drive this society to success. Traditional Chinese culture is a typical masculinity. Singapore has almost 77 percent of populations are Chinese. Children are always taught to compete with other people in the school. Singapore is in the almost middle of the scale but a little on the feminine side. That means that there are still some softer aspects of culture like leveling with others and sympathy for loser in Singapore (Geert Hofstede, 2011). Uncertainty avoidance Comparing with other countries in the world, Singapore is a country with low degree of uncertainty avoidance. Singaporean comply with their rules because their high PDI. That is why Singapore is a â€Å"Fine† country (Geert Hofstede, 2011). Because Singaporeans are indirect and implicit in their communications, they will not publicly use the word â€Å"no†; likewise, their â€Å"yes† does not usually mean assent (Kwintessential, 2011). Unlike other Asian cultures, the western cultures also affect Singapore’s culture. Therefore, the degree of facing uncertainty avoidance is lower than other Asian countries. Long-term orientation The short-term orientation is related to truth and the long-term orientation is related to virtue. Singapore’s cultural qualities show the perseverance and sustained efforts support the long term investments. People believe that the truth depends a lot on situation and time in a society with a long-term orientation (Geert Hofstede, 2011). Doing business in Singapore, the relationship with other people is very important; especially you must respect the elders. Also, you must be more patient because the organization will show their purpose which is for long-term profit, not short-term gains (Kwintessential, 2011). Organizational Structure An organizational structure is setting the company into different levels, including person and work, so each person needs to perform and accomplish the company goals (Chapman, 2008). There are two types of organizational structures which are flat organization and hierarchical organization. A flat organization is an organization which is few or no levels between managers and employees. The advantage of a flat organization is top management contact directly with the staff level employees. Middle managements are eliminated, so it can also reduce the organization’s budget costs. In this structure, the communication between managers and employees would be improved and the organization is fast to respond to consumers and market conditions. The disadvantage of a flat organization is difficult to maintain when the organization grows bigger. A hierarchical organization is the layout of a pyramid. Every employee obeys someone else in this organization. The advantage of a hierarchical organization is the management can control closely. Also, the role and responsibility of each employee are distinguished clearly. The disadvantage of this organization is the decisions will be difficult to make because the organization is consisted of a multilayer management. It costs a lot to maintain a multilayer management and the communication would be slow from the bottom to the top (Colette). Hollister Co. is a subsidiary company of Abercrombie Fitch, so the management chart of the Hollister is the same with Abercrombie Fitch. The following table is Hollister’s organizational structure. In this table, we can consider Hollister is a hierarchical organization. An Executive VP or senior VP head all major business processes of the company. The CEO at the top, EVP/SVP on the second, EVP/SVP on the third and SVP on the fourth level are four basic layers at senior management. This hierarchical structure makes Hollister’s management make decisions quickly and let employees in each group understand their roles and responsibility clearly. On the other hand, there are still some disadvantages, which are high costs and many layers of communications, in this structure. For example, the SVP of Supply chain needs to go through two management layers in order to reach the CEO of Hollister. The hierarchical structure delays the communications between management and employees. A hierarchical structure costs a lot to maintain for Hollister. Hence, in a recession, Hollister might restructure to reduce costs and improve communication. Source: http://www.cogmap.com/chart/abercrombie-fitch-co (2010) Hollister still can use its hierarchical structure into its international markets such as Singapore. Singapore is an open country and there is no limitation in Singapore, so Hollister can use any types of organizational structure they want. If Hollister use the hierarchical structure successfully in its home country and in other international markets, Hollister should use the same structure when they expand to Singapore. Singapore is also a hierarchical structure country because its high power distance. Hollister’s International Expansion Strategies After review Hollister Co. and Singapore cultures and structures, we put forward three strategies which Hollister can use to expand its business to Singapore by exporting, licensing or wholly owned affiliates. Exporting is the first way the company can expand into a new market. By exporting, Hollister does not need to invest in Singapore and can test Singapore’s market. The disadvantages of exporting are Hollister has to suffer tariff and non-tariff barriers, high transportation costs and depend on foreign importers for product distribution. The second strategy is Hollister can give a license of its design to a Singapore Apparel Company. This way Hollister can earn profit without investing and suffering tariff and non-tariff barriers. The disadvantage of licensing its design, Hollister might be subjected to the local apparel company becomes its competitor. Hollister also cannot control the quality of products which the licensee produces, so Hollister’s brand or reputation is on risk. The third strategy is that Hollister can expand to Singapore’s market by itself. Hollister can choose a place where there will be a lot of people, including domestic residents and tourists, to visit such as CentrePoint, the most popular mall in Singapore. The advantages of expanding itself are that Hollister can have complete control and receive all of the profits. The disadvantages of expanding itself are the high costs and the greater loss if it fails. Recommendation After review three strategies, we recommend Hollister to expand itself in Singapore. Hollister has enough capital to invest into Singapore because it has a powerful backing, Abercrombie and Fitch. This way Hollister can keep their quality of products and have complete control. Hollister can test the market and the market condition by opening the first in Singapore. In order to be success, the most important things are that Hollister needs to learn Singapore’s culture and establish the relationship with the consumers and suppliers. Hollister can adapt to the Singapore’s culture and consumer taste by reviewing a quarter of sales. After its sales grow stably, Hollister should continue to open more stores in Singapore.

Impact of Financial Sector Development on Nigeria

Impact of Financial Sector Development on Nigeria IMPACT OF FINANCIAL SECTOR DEVELOPMENT ON SECTORIAL GROWTH IN NIGERIA: IMPLICATION FOR ECONOMIC GROWTH IN NIGERIA SECTION ONE Introduction Basically, the banking sector and the non-bank institutions make up the financial system in Nigeria which is responsible for the development of economic growth in the Country. During the pre-liberalization era (from 1986 and below), government had sufficient financial resources to finance a reasonable proportion of economic activities (Adegbite, 2005). However, this era suffered from artificially low cost of commercial credit resulting in inappropriate pricing of credit and deposits, acute scarcity of loanable funds in the system and lastly low level of capital formation for economic development. Studies reveal that the flow of credit to the priority sectors did not meet the prescribed targets and failed to impact positively on output and domestic prices (Nnanna, 2001; Mordi, 2009). In an attempt to make the financial sector buoyant, the government decided to deregulate and liberalize all the sectors of the economy as outlined in the Structural Adjustment Program introduced in1986. During this period, interest rates were low and this eased the flow of credit to the desired sectors of the economy. By 1992, the number of banks had risen from 56 in 1986 to 120 and a capacity utilization rate of 38.1%, while the GDP rate stood at 2.9%. Due to the banking distress from 1994 to 2002, the total number banks dwindled to 99. However, the capacity utilization rose to 48% with an increased growth rate of 4%. This was due to recapitalization process undertaken by the Central Bank of Nigeria (CBN) to sustain the financial sector, hence, making it competitive. In 2004, the consolidation exercise made the banking industry a leading player in the actualization of the goals set by the government for the National Economic Empowerment and Development Strategy (NEEDS) programme. In 2009, as part of the broad economic measures to respond to the adverse effects of the global financial and economic crises, the CBN in conjunction with the fiscal authorities engineered measures to avert a collapse of the financial system with a view to maintaining economic growth (Odeniran and Udeeaja, 2010). Unfortunately, the supply of credit to investors remains questionable as capacity utilization rate is still low (50%), thus, retarding economic growth with GDP of 7.5%. Despite the increasing developments within the financial sector, economic growth still lags behind. A lot of studies have investigated the nexus between financial sector development and economic growth on an aggregative approach. However, their studies did not look at the specific sectors which f inancial development influences in Nigeria, for example, agricultural sector, manufacturing sector, industrial sector and the external sector. Hence, a fundamental question that arises is to find out whether a link exists between financial sector development and economic growth. Going to specifics, this study aims at answering the following questions: What is the effect of financial sector development on the agricultural sector in Nigeria? What is the effect of financial sector development on manufacturing sector in Nigeria? What is the effect of financial sector development on industrial sector in Nigeria? What is the effect of financial sector development on the external sector in Nigeria? What are the constraints associated with financial sector development in Nigeria? Research Objectives The main objective of this work is to investigate the link between the financial development and economic growth in Nigeria. The specific objectives are: To examine the impact of financial sector development on the agricultural sector in Nigeria. To investigate the effect of financial sector development on the manufacturing sector in Nigeria. To analyze the impact of financial sector development on the industrial sector in Nigeria. To study the effect of financial sector development on the external sector in Nigeria. To identify the constraints associated with financial sector development in Nigeria. Theoretical Review The relationship between financial sector development and economic growth covers a broad spectrum of ideas such as intermediation, repression, liberalization, regulation, diversification, innovations, reforms and implementation. Though financial systems are mere intermediaries that insure the optimal allocation of savings for investment (Chick, 1998), however, they play a decisive role in the process of economic development (Stiglitz, 1998). These views are upheld by the pre-Keynesians and also recognized by the post-Keynesians, though with some degree of discordance. Keynes in the 1930s hypothesized that finance precedes savings (Zina and Trigui, 2001). However, the basic import of the post- Keynesians such as Asimakopulos (1983), Kregel (1984-5), Davidson (1986), Richardson (1986) and Terzi (1986), in their chronological analysis, suggest that savings apparently appears to be a by-product in the process of the income creation. Two important theories that emerged in 1973 and have lent credence to the Keynesian hypothesis are the McKinnon’s â€Å"Complementarity Hypothesis† and Shaw’s â€Å"Debt Intermediation View†. In their thesis they both argued that the repressed financial markets (low and administered interest rates, domestic credit controls, high reserve requirements and concessional credit practices) discourages savings, retards the efficient allocation resources, increases the segmentation of financial markets, constrains investment and in turn lowers the economic growth rate (see, Bouzid, 2012). These fundamen tal ideas of McKinnon-Shaw are enshrined in the â€Å"Repression Theory† and thus depict a positive relationship between interest rate and financial development. However, a number of authors feel that liberalizing the financial systems is the ultimate goal for investment and economic activities thus complimenting the McKinnon-Shaw thesis. Many developing countries have implemented financial liberalization policies through the market-based interest rate determination, reducing controls on credit by gradually eliminating the directed and subsidized credit schemes, developing primary and secondary securities markets, enhancing competition and efficiency in the financial system by privatizing nationalized commercial banks with the aim of eliminating repressed regimes as suggested by the â€Å"Liberalization Theory†. Two other hypotheses that explain financial development and economic growth are the â€Å"Supply Leading Hypothesis† and â€Å"Demand Following Hypothesis†, in line with the views of Patrick (1966) and Demirguc-Kunt and Levine (2008) postulate a feedback mechanism between economic growth and financial development. According to the supply-leading hypothesis, financial deepening stimulates economic growth. The demand-following hypothesis on the other hand, posits economic growth precedes financial development. This implies advancements in economic activities trigger an increase demand for more financial services and thus leading to greater financial sector development (Gurley and Shaw 1967), also in line with the views of Goldsmith (1969) and Jung (1986). A positive relationship between financial sector development and economic growth has largely been projected by â€Å"Exogenous Growth Models† as well as â€Å"Endogenous Growth Models†. Bencivenga and Smith (1991) and Levine (1991) endogenous growth models to a greater extent have identified the channels through which financial markets affect long-run economic growth. The end result of this model is that economic growth performance is related to financial development, technology and income distribution (see, Chukwuka, 2012). The growth models developed by Harrod and Domar affirm the role of investment in economic growth, based on the dual characteristics of investment: Firstly, investment creates income â€Å"Demand Effect† and secondly, it augments the productive capacity of the economy thereby increasing its capital stock â€Å"Supply Effect†. In summary, the Harrod-Domar growth model postulates that economic growth will proceed at the rate which society can mobilize domestic savings resources coupled with the productivity of the investment (Somoye, 2002). Empirical Review Substantial literature have analyzed the link that exist between financial system development and economic growth. These analyses have raised a lot contention on the direction of causality, but however fall within the remits of the theories. First, the Harrod-Domar growth model leads to a hypothesis which affirms a one-way causality from financial development to economic growth. Second, there is unidirectional causality from growth to finance, empirically confirmed by Shan, et al (2001) who concluded that economic growth causes financial development in China. And the third which does not rule out a bi-directional causality between economic growth and financial development as hypothesized in early and recent literature (Gurley and Shaw 1960, 1967; Bencivenga and Smith, 1991). Measuring financial development as the ratio of financial intermediary assets divided by gross national product, Goldsmith (1969) analyzed data from thirty-five countries for the period 1860-1963 and discovered that a positive correlation with feedback effects existed between financial development and economic growth over longer periods. He however established that financial development largely occurs during the early stages of economic development when countries have low levels of income. De Gregor and Guidotti (1995) reached the same conclusion that financial development and economic growth are strong in the early stages of development but further showed that the effect of financial development on growth becomes weaker as countries become more developed, perhaps because of problems with measuring financial development or because financial intermediaries actually have larger effects in less developed countries than in more developed ones and this is in line with the findings of Wachtel and Rousseau (1998) while considering five industrialized Countries. These argument has been debunked in the finding of Besci and Wang (1997) who reached the conclusion that even though financial development occurs and may precede economic growth, its direction of causality is unclear in an economic sense. In a similar work, Rousseau and Sylla (1999) further found strong support for finance led growth after examining the historical role of finance in the U.S from 1790-1850. Empirical studies have shown that financial development can lead to economic growth only through financial sector development at the micro level. For instance, Rajau and Zingales (1998) in their study showed that industrial sectors that relatively need more external finance develop more disproportionately faster in countries with more developed financial markets. Beck and Levine (2002) supported this finding using different financial development measures. Wurgler (2000) noted that countries with a higher level of financial development increase investment more in growing industries and decrease investment more in declining industries than financially underdeveloped economies. In Nigeria, Adelakun (2010), used the ordinary least squares estimation method to determine the perceived relationship between financial development and economic growth. The result showed that there is a substantial positive effect of financial development on economic growth in Nigeria, however, this requires diversification of financial instruments. Shittu (2012) using data from 1970 to 2010 employed the error correction mechanism also concluded that financial intermediation can propel economic growth in Nigeria. These findings are contrary to earlier studies. For instance, Ndebbio (2004), using an ordinary least squares regression analysis, established that the strength of the effect of financial sector development on per capita growth of output is weak due to the absence of a well functioning capital market, while Nnanna (2004) using the same approach concluded that financial sector development did not significantly affect per capita growth of output. Odeniran and Udeaja (2010) tested the nexus between financial development in a VAR framework over the period 1960-2009. Their results suggest bidirectional causality between financial development and economic growth variable. Based on this finding, they indicate that the current reforms in the Nigerian banking sector should not be emphasized unilaterally. Rather, attention should be given to the complimentary and coordinated development of financial reforms and changes in the real sector of the economy. Methodology and Source of Data Choosing the indicators for financial development is an uphill task because the provision of financial services is broad. Adelakun (2010) noted that, there is a diverse array of agents and institutions involved in the financial intermediation activities, thus making the definition of proxies difficult. Thus, for simplicity this study shall adopt Erdal et. al (2007) model, which is a slight modification of the growth model of Ram (1999). Thus, the model shall be adopted to include the different sectors to be investigated. Financial development indicators to be considered are: Money supply to GDP ratio (M2) measures the degree of monetization in the economy as well as the depth of the financial sector, bank deposit liabilities to GDP ratio(BK), determines the capacity of the banking sector, domestic credit to GDP ratio (DC), which reflects the extent to which financial intermediaries allocate savings, ratio of private sector credit to GDP ratio (PS) which profitable investments, monitor managers, facilitate risk management, and mobilize savings, real interest rate (Ri), the ratio of bank liquidity to GDP (BKL), the ratio of gross fixed capital formation to GDP (GFC), trade openness as a ratio of GDP (TO) is a measure of external sector, agriculture out to GDP ratio (AG) for the agriculture sector, GY, which is the annual growth of the gross domestic product (GDP), industrial output to GDP ratio (IO) and manufacturing to GDP ratio (MA). The different model specifications are: And the overall financial growth link is given as: A Priori Expectation The expected signs of all the coefficients for the different variables are positive except for the interest rate coefficients which are negative. Source of Data The data shall be collected from the Central Bank of Nigeria’s statistical bulletin, Nigerias National Bureau of Statistics and World Bank world development report. References Adelakun, O (2010): â€Å"Financial Sector Development and Economic Growth in Nigeria†.International Journal of Economic Development Research and Investment Vol. 1, No 1. Adegbeti, E. (2005): â€Å"Financial Sector Reforms and Economic Development In Nigeria: The Role Of Management†. Being a Paper Delivered At The Inaugural National Conference Of The Academy Of Management Nigeria At Abuja, Nigeria Titled Management: Key To National Development, at Rockview Hotel, Abuja. Asimakopulos, A. (1983): â€Å" Kalecki and Keynes on finance, investment and saving†. Cambridge Journal of Development of Economics, 7 : 221-33. Besci, Z. and Wang, P. (1997) â€Å"Financial Development and Growth†Economic Review 4th Quarter 46-62 Bencivenga, V. and Smith, B. (1991): â€Å"Financial intermediation and endogenous growth†. Review of Economic Studies, 58(2): 403–44. Bouzid, A. (2012): â€Å"McKinnon’s Complementarity Hypothesis:Empirical Evidence for the Arab Maghrebean Countries† The Romanian Economic Journal,r XV no. 44 Pp 23-35 De Gregorio, J. and P.E . Guidotti. (1995). â€Å"Financial development and economic growth†. World Development, 23(3): 433-48 Chick,V. (1998): â€Å"Finance and investment in the context of development : a Post-Keynesian perspective –, in Kalevi,J. and Fontaine, J.M.: Restoring Demand in the World Economy: Trade, Finance and Technologie â€Å".Edward Elgar,Cheltenham, UK.Northampton, MA, USA. Demirgà ¼Ãƒ §-Kunt, A. and R. Levine (2001b): â€Å"Bank-Based and Market-Based Financial Systems: Erdal G., Okan, V. S. and Behiye, T. (2007). Financial Development and Growth: Evidence from Northern Cyprus, International Research Journal of Finance and Economics, Issue 8. Goldsmith, R.(1969): â€Å"Financial Structure and Development,† Yale Univ. Press, New Haven CN. Gurley and Shaw, 1960, Money in a Theory of Finance, the Brookings Institution Gurley, J and Shaw, E. (1960). â€Å"Financial intermediaries and the saving- investment process†. Journal of Finance. Levine, R, N. Loayza, and T. Beck (2000) â€Å"Financial Intermediation and Growth: Causality and Causes†, Journal of Monetary Economics, 46, pp. 31-77 Mordi, C (2009): â€Å"Overview of Monetary Policy Framework in Nigeria†. CBN Bullion Vol 33, No 1. Ndebbio, J.E. (2004). â€Å"Financial deepening, economic growth and development: Evidence from selected sub-Saharan African Countries†. Research Paper 142 African Economic Research Consortium, Nairobi, Kenya, August. Nnanna, O (2001): â€Å"Monetary Management: Objectives, Tools and the Role of Central Banks in the Region†. Regional Forum on Economic and Financial Management for Parliamentarians, Nigeria: WAIFEM. Nnanna, O.J (2004). â€Å"Financial Sector Development and Economic Growth in Nigeria: Economic and Financial Review Sept. Vol. 42, No. 3. Odeniran, S. and Udeaja, E. (2010): â€Å"Financial Sector Development and Economic Growth: Empirical Evidence from Nigeria†. Central Bank of Nigeria Economic and Financial Review Volume 48/3 Patrick,T. (1966): â€Å"Financial Development and Economic Growth in Underdeveloped Countries†, Economic Development and Cultural Change, 14, 174-189. Rajan, R. G. and L. Zingales, (1998) â€Å"Financial Dependence and Growth† American Economic Review 88, 559-586. Ram, R. (1999). Financial Developing and Economic Growth: Additional Evidence. Journal of Development Studies, 35(4), 164-74. Rousseau, P. (1999) â€Å"Finance, Investment, and Growth in Meiji-era Japan.†Japan and the World Economy 11, 185-198 Rousseau, P. L and R. Sylla (1999): â€Å"Emerging Financial Markets and Early U.S Growth†, NBER Working Papers 7448, Rousseau, P.L. and R.Sylla (2001): â€Å"Financial Systems, Economic Growth, and Stabilization†, NBER Working Paper No.8323, June Shan, J.Z., F. Sun and L. Jianhong. (2006). Does Financial Development Lead to Economic Growth? The case of China. Annals of Economics and Finance 1, 231-250 Shan, J.Z., F. Sun and A. Morris, (2001). Financial Development and Economic Growth. Review of International Economics 9, 443-54 Shittu, A. (20012): â€Å"Financial Intermediation and Economic Growth in Nigeria†. British Journal of Arts and Social Sciences ISSN: 2046-9578, Vol.4 No.2 (2012) Stiglitz, J. (1998): â€Å"The Role of the Financial System in Development†. Presentation at the Fourth Annual Bank Conference on Develoment in Latin America and the Caribben, San Salvador, El Salvador, June 29. 3 Terzi,A.(1986: â€Å"The independence of finance from saving : a flow of funds interpretation†. Journal of Post-Keynesian Economics, 9(2) : 188-97. Wachtel, P. and P. Rousseau (1998). â€Å"Financial Intermediation and Economic Performance: Historical Evidence from Five Industrialized Countries†, Journal of Money credit and Banking Volume 30, Number 4 Wurgler, J. (2000). â€Å"Financial Markets and the Allocation of Capital†, Journal of Financial Economics, Vol.58 pp. 187-214.