Hca/250 Motivation and Organizational Culture

Motivation and Organizational Culture HCA/250 Amy Carson University of Phoenix 4/2/13 Ayame Nakamura is a Japanese immigrant who is employed by a drug organization in California. The company’s administration is confrontational and interferes with Ayames ethnic background and also challenges her cultural background. This paper will discuss workplace motivation techniques, the influence of organizational culture and the role of management in workplace psychology. Workplace motivation techniques: Administration plays a significant role in psychology at the work place.Some of the major duties they are responsible for are setting standards for good work etiquette while maintaining quality and quantity for their goods and services. Management may need to take on many different roles to achieve these responsibilities. For example; the role of a firefighter to extinguish tempers of customers and coworkers, the role of a police officer to settle disputes and maintain discipline or orde r, or as a friend to encourage trust and honor among the company. Whatever problem that may arise, administration needs to have the ability to cope and solve them in a quick and proficient manner.The atmosphere must have a secure, impartial and equality feeling for both the workers and management in the workplace. Security is not just a physical feeling of being safe in the office but also assurance of their mental state regarding job stability, fair treatment, mental and physical comfort without harassment, favoritism or unfair judgments. Administration should be comprised of leaders, individuals who positively impact other people while not abusing the administrative powers. Management has 5 key elements that incorporate self-awareness, inspiration, societal skills, sympathy as well as self-administration.Anyone in an administrative role must be regarded as reliable, honest, skilled, persistent, open to suggestion, and dedicated in the eyes of their workers. Build a foundation, If an employee knows nothing about a company’s history than there is no feeling of investment which in turn keeps that employee un interested in the company’s future. When creating an atmosphere, a happy company is a productive company. Employees look for advancement within their company. Without the ability to develop growth in a career, most employees feel trapped in a dead end job.Take consideration of current skills and future goals of employees to decide what may become of them down the road. Improving your professional training programs and educational development for employees will instill a feeling of investment in their future and your company’s which will translate into improved job performance. It is important not to forget the fun, give unexpected diversions like a free pizza lunch, an early leave day or anything that will show your appreciation in an unplanned way. Acknowledging contribution of employees can make a huge morale boost especially if recog nized in front of their coworkers.Offering incentives to perform well will give motivation and competition to employees. Put your money where your mouth is by honoring all promises that you make to an employee. Failure to pay up may lose not only the trust of that employee, but of all who hear their story. Career coaching is a good way to provide employees with the ability to reach the next professional level. Bring in professionals that offer personal counseling for life’s dilemmas whether personal or professional because both can affect the work environment. And finally, match a person tasks to their talents or they will be unconfident or more prone to failure.Influence of organizational culture No matter how different or similar one culture to another is, the other culture will seem abnormal because it is a system of informal rules that govern the behavior of that society. Cultural organization is unique and configures their norms, beliefs, values, and behavioral character istics into the individual and groups that unite to get things accomplished. Patterns begin to evolve and become a rule of basic assumption; whether it is a new idea, one recently discovered or under development by a certain group as they learn to cope with internal integration and external adaptation problems.Cultural characteristics are hard to define because culture is multi-dimensional with integrated components that intertwine at different levels and ever-changing which takes time to establish and therefore time to change it also. Culture becomes the fabric or social glue that unites its participants, this will counteract any processes that are different becomes an unavoidable side-effect of life in an organization. Mutual understandings and a shared system of meanings becomes the basis of communication in a cultural organization.Functions of a society need to be fulfilled with a certain amount of satisfaction or culture can impede the efficiency of that organization. Problems with this concept arise when trying to categorize culture or when, why, or how corporate culture should be changed or finding the best, healthiest or most desirable one. References: Arthur unknown 1999-2013 retrieved on 4/3/2013 from: http://www. allbusiness. com/motivate-your-employees/16567613-11. html#gsc. tab=0 Armstrong, Michael 2009 retrieved on 4/3/2013 from: http://av4kc7fg4g. earch. serialssolutions. com. ezproxy. apollolibrary. com/? ctx_ver=Z39. 88-2004&ctx_enc=info%3Aofi%2Fenc%3AUTF-8&rfr_id=info:sid/summon. serialssolutions. com&rft_val_fmt=info:ofi/fmt:kev:mtx:book&rft. genre=book%20item&rft. title=Armstrong%27s+Handbook+of+Human+Resource+Management+Practice&rft. au=Armstrong%2C+Michael&rft. atitle=Organizational+Culture&rft. date=2011-01-01&rft. pub=Kogan+Page+Ltd&rft. isbn=9780749452421&rft. spage=383&rft. epage=399&rft. externalDocID=1718700036

Communication and Presenting Information

What is active listening? Active listening is a person’s ability and willingness to listen and understand. Often we people talk to each other. We might not listen at a time because lack of attentiveness, which can distract the speaker. In way active listening can be called as responding to another person that develops mutual understanding. Active listening is process in which the listener paraphrases in its own words what the speaker had said to confirm or clarify of accuracy of the message. Active listening involves listening with your head and your heart; that is, you listen to the content of the message but also the feelings behind the message. The skill of active listening involves paying attention with empathy to the listener, as opposed to distracted denying, cynical or ostrich behavior. New session leaders of alcoholics anonymous meetings are advised to’†¦. Take cotton form your ears and put it in your mouth’. (Hogan, 2000) Listening can wrongly be vi ewed as a passive activity; the speaker talks and the listener listen’s. The listener is silent and passive and the speaker is active and verbal. When the speaker finishes its talking, the assumption is that the message has been accurately received by the listener, with no observation participation or effort active listening statement. â€Å"The most basic of all human needs is the need to be understood†. (Fujishin,1997) Listening does not mean just have sit with the mouth shut stirring at the person. A dead body can do that. It is an active process which requires participation to understand fully the meaning of a communication. Listening actively involves clarifying, paraphrasing, giving feedback. Paraphrasing: state in your own word what the speaker had said in the talk. It is sign of good listening. It keeps the listener busy trying to understand and know that other person means rather than blocking. Clarifying: it goes along with paraphrasing. It means asking questions until the listener get the correct picture. In order to understand fully what the speaker said. Clarifying assist the listeners to sharpen its listening focus so that the listener hears more than vague generalities. Giving Feedback: feedback is what active listening depends on. After paraphrasing and clarifying the listener gives an example what had been said and hopefully understands it. This is the point at which the listener can talk about reaction. In freely way the listener share its thought, felt or sensed. Active listening is really one of the mostly physical and mentally challenging aspects of facilitation. Listening sometime does not come easy for some people not because they are not willing to listen but because they are not able to do so. Actually their mind does not come up with the total picture because some people see the world in one dimension. This inability to listen using both side of the brain can cause misinterpretation, miscommunication and miscalculation. As a result the listener with in ability could not be able to deal with logic of a relationship and also with the emotional component. Therefore this unbalanced use of brain often results in the inability of the listener understand all the essential signs form the person speaking. Therefore active listening require usage both side of brain. Unfortunately there are few people who are able to understand this fact who instead see this skill in one reflecting use of the both side of brain. Taking holistic approach toward listening requires special discipline or rules on the part of the listener. The basis reason is that many listeners tend to fall into their own comfort zones by in taking what they want to hear and skipping rest of the important data and facts. As a result hearing selectively can lead to incorrect conclusion of data and information. Listening is like art were there are opportunities for huge errors. â€Å"This information is taken from the Source: Kliem (2007) â€Å"Effective Communications for Project Management† CRC Press Feature of active listening Active listening motivates the person to listen carefully which eventually motivates the speaker to talk effectively. Active listening helps the speakers to identify that whether the listener is taking afford to understand thing with any distraction and helps the listener to clear their doubt and revert back the message to the speaker in order to give idea that he as understood. The distraction is big treat while listening and speaking, were the listener forgets the point or get miss leaded about speaker’s talk or message, were as speaker also gets frustrated and won’t put his best effort. The active listener use both side of brain. They see the skill as one reflecting the use of the right or left side of the brain. The left side of the brain highlights facts, organizational, logical reasoning and thinking and discipline and accuracy in thought. It is extremely goal and analysis oriented. Active listening exclusively from this viewpoint can result in ignoring the important emotional message of the speaker: for example the importance on calculating metric is left brain activity. Focusing on scheduling and cost performances index as a measure of success is a prime example of left brain thinking. The right side of the brain highlights emotional and sensory view. Imaging and imagining are two quiet actions of this side of the brain. The importance is on nonverbal communication and impulsive behavior. Active listening from this view point can result in ignoring or skipping the important data and fact and being influenced by the speaker. Most common example of active listening is boards meeting of the company were each directors or shareholders as listener listen actively because every decision raised in the company is important and should be planned in order to achieve objective and goals. BARRIERS OF ACTIVE LISTENING â€Å"Man inability to communicate is a result of his failure to listen effectively, skillfully and with understanding to other human beings†. Carl roger,1850) The biggest barrier of the active listening is the unconscious nature of the process. When we listen to take in information from all of our sense continuously and for which automatic we give a meaning to what we take in. Responding without thinking for the first is easy, as there are some people who use very little of their full listen ing capacity because they do not intentionally put their full energy into it. However there are barriers to listening beside the environmental barriers. Some of the common see barriers are: Negative and positive trigger: there are certain words, sound, phrases; gesture that can draw out an emotional response from the person. A positive trigger is phrases or word that produces a good feeling for the listener and negative trigger is a phrase or word that produces feeling such as anger. The trigger causes when a person reacts before for thinking. The listener just by hearing few words has a preprogrammed understanding and response because the trigger cuts off the information gathering actions of the senses and can show the way to greatly mistaken estimation. This trigger interferes with the listeners listening because the listeners immediately change their attention to the emotions that they are experiencing. Any effective listener can identify their own trigger in order to gain their conscious control of their action and listen more effectively. ?Difference in word definition: No two people have same meaning for the words or phrase. These differences in meaning can lead to misinterpreting and misunderstanding. A responsible person first check with the speaker and helps groups builds up harmony on the definition of important words and phrases. Personal issues: every person has important personal issues beside the work life. Sometimes these issues want a huge attention and take a lot of energy which make the person tough to actively listen at some moment. A Responsible person first observes the effect of the personal issues and then takes time to deal with them. When it is time to listen, they intentionally remind themselves to use active listening process. For example a manager who is going through break up found it difficult to listen during board meeting. But his boss was supportive and understanding; however at that moment the manager should put his personal matters at a side and meet his obligations of the organization. ?Poor physical surroundings: poor physical surrounding involves Noisy, distracting or uncomfortable places and situation make it hard to listen and also make it difficult to focus on what the speaker is explaining. ?Tiredness: it becomes difficult to listen actively when a person is tried. Active listening requires active or alert mind and energetic body to considerate. A student in order to be active listener should get good night sleep before attending the early morning lecture so that the student considerate without any tiredness. ?Filter: Your beliefs, values, assumption, expectation, past experiences and interest all these things interfere with active listening. There are subtle and thus are hard to detect. For instant, think as if your enemy sitting beside you, eventually you will be thinking some else rather that listening to the speaker. Importance’s of active listening Active listening is an important skill that can bring changes in people. Changes as such in attitude toward themselves and others and also bring changes in your vital value and physical philosophy. People who contain active listening skill are more emotionally mature, less defensive, have more experiences, more independent and less demanding. The people who listen sensitively tend to listen themselves with more care so they are make clear about what they are thinking and feeling. Some of common Importance of active listening is: ? It helps you to focus on one task without any distraction and enable you to get clear picture of what speaker try to explain. It helps you to develop your interest in listening and keep you active and alert. ?It keeps you way from misinterpretation and misunderstanding of idea of other person because understanding other person is very difficult. ?It helps to develops trust between listener and speaker. It isn’t very often an individual is given the opportunity to share what’s really on his mind or deep in his heart without be attacked and rescued. This is one of the most important rewards of actively listening for understanding where the speaker trusts you. Conclusion Listening well is an essential component of every successful person. Active listening takes a lot of energy and very irritating to mirror every statement during conversation. At some extend, it can drive person crazy. A person should keep active listening for those occasions when the person require clarifying the speaker’s message, the speaker want to feel understanding of listeners. Active listening just encourages a person to set aside the trouble of self talk, in order to get mixed up with what the others are relating and to experience totally what they feeling. You will be shocked to discover that when you focus on your speaker rather than yourself, it become far easier for you to think of things to say. As said by Fritz Perls â€Å"the pictures of the world do not enter us automatically, but selectively. We don’t see, we look for, search, scan for something. We don’t hear all the sounds of the world, we listen†. References 1. Hoppe(2007) â€Å"Active Listening: Improve Your Ability to Listen and Lead† London Publisher: Center for Creative Leadership 2. Ivey , Bradford Ivey & Zalaquett (2009) â€Å"Intentional Interviewing and Counseling: Facilitating Client Development in a Multicultural Society† Publisher: Cengage Learning 3. Jones (2008) â€Å"Introduction to Counselling Skills: Text and Activities† Publisher: SAGE Publications Ltd. 4. Moyet(2005) â€Å"Understanding the nursing process: concept mapping and care planning for students† Publisher: Lippincott Williams & Wilkins 5. Weaver & Farrell (1997) â€Å"Managers as facilitators: a practical guide to getting work done in a changing workplace† Publisher: Berrett-Koehler Publishers 6. Fujishin(2007) â€Å"Creating effective groups: the art of small group communication† Publisher: Rowman & Littlefield 7. Kliem(2007) â€Å"Effective Communications for Project Management† Publisher: CRC Press 8. McKay, Davis & Fanning (2009) â€Å"Messages: The Communication Skills Book† Publisher: New Harbinger Publications 9. Spencer & Pruss (1997) â€Å"The professional secretary's handbook† Publisher: Barron's Educational Series 10. Farrell & Weaver (2000) â€Å"The Practical Guide to Facilitation: A Self-Study Resource† Publisher: Berrett-Koehler Publishers 11. Garner(1997) â€Å"Conversationally speaking: tested new ways to increase your personal and social effectiveness† Publisher: McGraw-Hill Professional 12. http://www. gordontraining. com/artman2/uploads/1/ActiveListening_RogersFarson. pdf (accessed 6 august 2009)

Journal Writing Essay

Week 1 – Reflective Journal This was my first day in class for the unit Co Ordinate the Work Environment. Amongst the class mates each one introduced the self to others, and Adrian as a teacher for the unit introduced himself to all of us. Today’s lecture was based on housekeeping and overview of unit outline. I learned about different ways to contribute and practise effective workplace practises. I also learned about different leadership styles. I felt good throughout the class as I was an active participant in all topics. I felt good about taking on the knowledge about learning and sustaining workplace ethics and self morale. I believe that this knowledge will help during my job times. Week 2 – Reflective Journal In today’s session I learned about developing and implementing work plans. The idea behind is to integrate into and build a healthy, trustworthy and reliable relationship with colleagues. I listened the whole session carefully, gave my opinion at right time and respected to the opinion shared by other students. I also learned about how at a workplace we can maximise the performance and outcomes and yes how can i forget the amazing organisational theories, boring but important. I took proper notes throughout the session and kept myself attentive till the end. Week 3 – Reflective journal In this week’s class I learned about implementing various strategies to ensure that the communication in a workplace is effective. I think the information was very necessary to develop my own level of understanding of initiating and sustaining a healthy communication amongst colleagues. I also learned about different ways of resolving the conflicts at the workplace if and when they arise. I personally would always be proactive about it however at any times if i do face any such conflicts then the knowledge that I received today will help a lot. Week 4 – Reflective Journal This week Adrian told us about workplace environment in regards of the resistance, different ways to deal with it and how we can bring a change in an organisation. I think this week’s session was very important from the academic perspective but also will help me in future in my carrier. I was active throughout the session. We also talked about the decision making process that takes place in everywhere and i felt good about that how important all this info was. Week 5 – Reflective Journal This week’s class was the interesting one because i learned about how important it is to always add on to our existing skills and knowledge by undertaking various training workshops related to same work. It was good to learn that taking such training lessons keeps us synchronised with the latest in the world and that these should not be neglected. Then we were also taught about different ways how we can monitor our own progress and appraisals. I felt this week’s session was very important and the knowledge delivered will help me in future. Week 6 – Reflective Journal This week was an important time in class as i had my first assignment for this unit due. The assignment was to make a report on the overview of any organisation related with the same sector. While making the assignment and reflecting on various areas of the organisation i realised that it included mostly a lot of things that we covered in class and i was glad because i already had them in my mind and my notes.

Jerusalem History Movie Review Example | Topics and Well Written Essays - 750 words

Jerusalem History - Movie Review Example Jerusalem has got a start some 6000 years ago and proclaimed that the Mount Moriah will connect them to their God. Villages and then a city slowly developed around the mountain. In about 1000BC, King David conquered and made up Jerusalem as the capital for the tribes of Israel. He also brought a belief in new god and then his son, King Solomon built a great temple on the Holy Mountain. 3000 years later, the mountain is hidden under a platform made of stone 'The Temple Mount'. However the Temple was destroyed long years ago, the Jews from all over the world still gather near reminisce of the wall. The wall has got the name 'The Western Wall'. It's said that the God's presence is particularly strong there in the walls. Papers of messages to the god were packed between the stones by the believers. Jews tells that they can hear the voice of God on touching that stones. They strongly believe that the stones are standing there hearing prayers of mankind for thousands of years. Al-Aqsa Mosque in Jerusalem is considered the third-holiest city in Islam. Directly above the western walls, stands a magnificent Islamic triumph, 'The Dome of rock' which was completed when the Muslims were vowed to reform it. Islam proclaims that this was the place where Prophet Mohammed was send to heaven to speak with Allah. Muslims comes to this Dome of Rock can be seen crying because of their strong belief and prayers. About 400 yards away is the 'Church of the Holy Sepulchre', which is very important to Christians. The church was built in 1149 and some say that it's the location of Jesus. Inside the church lies the holy rock of Golgotha. Christians believe that this rock is from the hill where Jesus was crucified. Christians are saying that by seeing and touching that place they can strengthen their faith. With all these religious, cultural and historical claims of the city, Jerusalem is crowded with believers of all these religions even though they are fighting for it. I am concluding the documentation with a verse from the Bible "As the mountains surround Jerusalem, so the LORD surrounds His people from this time forth and forever." ( Ps 125:2 -The Bible) for the peaceful life of Everyone.Documentary Feedback This video should be able to provide information regarding significance of Jerusalem to Jews, Christians and Muslims from the depth of its history. Each of them has their own religious evidences and pilgrim homes and historical bases as stated in the above paragraphs. The selected documentary video has provided almost same religious and historical outlook to the three religions stating a reign that has given birth to the construction of pilgrim homes as well as belief in the respective religion. I recommend this video for getting the viewer an overall brief view on the history of the Jerusalem as well as its equally alienated significance to Judaism, Christianity and Islam. I am happy to bring before you some quotes I just referred. 1. "Without Jerusalem, the land of Israel is as a body without a soul."(Elhanan Leib Lewinsky; Hebrew writer and Zionist leader) 2. "Every

Project management Research Paper Example | Topics and Well Written Essays - 3500 words

Project management - Research Paper Example A project is not a routine task, it is a certain set of functions designed to achieve a particular goal. Sometimes the project team involves people who usually do not work together; they are acquired from different departments, different organizations & different localities. In simple terms, Project Management involves a temporary group activity. Project Management is related to the application of knowledge, techniques & skills to complete a project efficiently & effectively. It is a strategic decision by the organization to enhance their competencies by tying the project outputs to the organization’s objectives. Previously project management referred to the collection of project data & metrics for evaluation & then accordingly making changes to increase efficiency & productivity. For the past decades, this area of management have become quite popular within the corporate world because of the following reasons- (ds.psu.edu 2) The average salary of a project manager is quite hi gh in comparison to the managers of other domain. Every year, a huge amount is spent for the purpose of accomplishing various projects. Lately, project management has been included as a subject of study in various educational institutes. It acts as a control mechanism for various projects. Project management helps in controlling the human capital, budget, quality, resources, time frames & communication. Project Life Cycle Projects always have a starting date & an ending date which means just like products, projects also have a definite life cycle that starts with the starting date & ends with the ending date. The diagram shows the different phases of a project life cycle- (weill.cornell.edu 1) Here we are given a particular business case where we have to modify the present structure of the University into a Wi-Fi enabled campus. We need to replace all computers & introduce iMacs for the classroom. Also we are required to complete the job within the month of June as the research woul d start from July onwards. We need several staffs for this purpose. Selection of the appropriate option for the given business case The appropriate solution that has been selected for the business case is requesting financial aid from the government as it is a reliable source of funds. On the basis of this option we are going to discuss further about this case with the help of the A3 tool. The context of Toyota can be considered while exploring the concept of A3. The managers of the company implement a tool called A3 that is named keeping in mind the internationally accepted paper size.A3 consists of a series of boxes arranged in a template. The boxes include the operations in the following order- 1. To establish the context of the business & the importance of a specific issue 2. To define the present status of the problem 3. To identify the desired outputs 4. To analyze the circumstances to ascertain causality 5. To offer countermeasures 6. To establish an action plan 7. To chalk o ut the follow-up process This method helps the managers to train others regarding the analysis of the root-cause & channel them towards scientific thinking. This is a tool for constant improvement & learning. We are required to use one management tool for the current business case & we would consider applying the A3 framework.

Legal Perspective on Euthanasia Term Paper Example | Topics and Well Written Essays - 2750 words

Legal Perspective on Euthanasia - Term Paper Example Nevertheless, even the issue of going through legal proceedings becomes contentious in several instances because some individuals think that the ‘right to die’ must be decided personally (Devettere 70). Even though individuals with these thoughts may seek advice from medical professionals or spiritual counselor, the concept of a legal resolution is detested because the act of placing the decision on another person meddles with a person’s rights to liberty and freewill. Numerous legal cases concerning euthanasia use the U.S. Constitution to support their judgments. They refer to privacy and liberty rights, protected by the Constitution, as the basis for a person’s right to decide how and when death should take place. Numerous individuals and groups supporting euthanasia claim that the reasonable step to take in the future is to constitutionally guarantee the ‘right to die’ (Keown 89). Even though legal decisions that support euthanasia somehow s et precedents which advocates can eventually use in future cases, making euthanasia legal would offer stronger protection under the constitution. Critics of euthanasia, in contrast, assert that euthanasia must not be legalized. This essay critically analyzes the legal perspective on euthanasia. Euthanasia: An Overview When patients and their loved ones see misery and intolerable pain, disagreement usually occurs between patients and their families, who want to put an end to misery, and medical practitioners, who are instructed to save human lives. This disagreement focuses on the notion of euthanasia and its value in the contemporary period. The issue of euthanasia forces an individual to face the greatest fear of human beings—death. The legal system has confronted it and has made progress in establishing certain rules to help decision makers in this issue; unfortunately, there is still a long way to go. Society should be safeguarded from the undesirable possibilities related to allowing the taking out of life-support mechanisms. Society cannot permit the complicated matters related to this issue to be underestimated to the point where it is simply recognized that life can be subjectively or instinctively terminated. The law should make sure that the patient’s constitutional rights are protected, while preserving society’s concern for life, and strengthening the integrity of health care professionals. During a medical emergency, it is impractical to instruct a health care provider to first check the patient’s clinical record for prior instructions before addressing the patient’s urgent needs (Pozgar 124). Ultimately, the limits of patient’s rights are still quite vague. Over time, euthanasia has become a subject matter with opposing moral, medical, and legal repercussions. Today, there are passionate campaigns supporting dignified death, which prohibits tubes, monitors, machines, and other technical equipment (Biggs 15 ). Even the definition of ‘euthanasia’ has evolved over time. Euthanasia is generally defined as â€Å"the mercy killing of the hopelessly ill, injured, or incapacitated† (Pozgar 124). In the 1870s, literature on euthanasia started to surface, mostly in the United States and England. Even though this literature was written, primarily, by ordinary people, medical professionals and the public started to pay attention to the issues posed by euthanasia (Biggs 25). During that time, euthanasia is viewed as

Religion's Influence on Ancient Greek Research Paper

Religion's Influence on Ancient Greek - Research Paper Example Marveling activities were the greatest significant factors of the Greek religion as much emphasis was laid on pleasing their gods so that they could enjoy their lives devoid of oppression and difficulties. Several rituals were conducted as well as rites, sacrifices, and ceremonies were held all in the name of impressing and pleasing the gods. Erection of temples and statues at selected places, were chosen as their holy grounds where they could provide sacrifices to their gods. This paper, examines the role played by the religion in swaying and influencing the ancient laws, arts, as well as the daily life practices by the ancient Greek people. It examines the significance of religion in this ancient Greek society. the Greek society, religion was a significant feature in the cultural practices with the sacrifices and frequent praying to the gods serving as a unifying function of people, with n aim to impressing the gods. They believed in life after death therefore, had faith that after a lifetime, a complete fresh and different life lay ahead of them. Even though the ancient Greek religious practices are practically extinct in their original model, it exists in their culture, religion of the current western practices, as well as their thoughts. In the ancient world, there was not a distinct difference between religion and philosophy entities. Plato 429 - 347 BC "Is that which is holy loved by the gods because it is holy, or is it holy because it is loved by the gods?" 2 "What I say is that 'just' or 'right' means nothing but what is in the interest of the stronger party." 3 The convictions of an average Greek could have been swayed both by the customary faiths and beliefs about their gods as well as the derived thoughts from the philosophers’ teachings. Currently, the teachings by the foremost philosophers such as Socrates and Plato, are often classified as religious presently, which provides the meaning of life, feature of the universe, life after death, and God or gods. Religion provided the structure and regularity for all the features of society and life. Whereas calendars were personal to every city, it was common practice to utilize imitative from the gods’ names to give a name to months. Greek’s religion center of attention was on the consecrated activities as well as customs rather than virtuous convictions and silent praying. The practice of insertion of an individual’s hand on the bible and swearing to it in such places as the courts was an inspiration born in the ancient Greek. In the ancient Greek, all those caught up in a court process, first had to make an appeal to the gods as potential benefactors or punishers, a responsibility then conditional on effectively recognizing the falsehood or truth by the individual who pledged to the oath. Anacharsis - 6th Century BC "Written laws are like a spider's webs; they will catch, it is true, the weak and poor, but would be torn in pieces by the rich and powe rful." Connecting with the gods was therefore done in numerous human legal concerns which could vary from basic domestic misunderstandings to interstate agreements. Most prominent portions of Greek literature, The Odyssey and The Iliad included stories about humans’ relations with gods. A number of carvings were created for the purpose of reverence to the gods. Such include the statue of Athena found in Parthenon. Other pieces of hunting pictures, battling views, the portraits of the gods and heroes as well, were commonly represented on the pieces of ceramics. Aristotle 384 - 322 BC; We make war that we may live in peace, Every art and every investigation, and

Answering questions and doing research Assignment

Answering questions and doing research - Assignment Example They do not indicate any doubt on the Adidas products or material durability. The only challenge that came out, however, was the issue of design and price. There is a need for Adidas to input more efforts and try to design new products that are attractive to the customers. Several people have heard about â€Å"Adidas† as a brand and have bought Adidas products before. However, the populations had varying attitudes and perception towards Adidas. Some thought that Adidas was a product of some famous football (Regine Business Research, 2013). Research also reveals that other people initially thought that Adidas was a brand meant for people who were of very high class. Most of the people, however, indicated that they buy Adidas products and prefer the Adidas products over the products of other brands such as Nike and Puma. Several respondents feel satisfied with the material and quality used in the products of Adidas. The respondents however had issues with the design of the products of Adidas. They feel that Adidas design is sub-standard with no attractive, stylish design. Several people preferred the Nike designs. Some people compare it to Nike and come out with some differences. Some people feel that Adidas has a problem with its branding as compared to Nike. People get positive and immediate impressions when thinking about the Nike brand and to the contrary, not when the same people think about the brand of Adidas. Adidas has got no stellar branding work like Nike making the market share of Nike relative. As a result, the worldwide market share of Adidas is almost half that of Nike (Regine Business Research, 2013). It is very important for Adidas to consider the influences from the groups because the groups and the company mutually depend on each other. According to Beard (2014), the groups consume the products of Adidas and, therefore, influence the success of the company

Critique of the Literature Review Assignment Example | Topics and Well Written Essays - 1250 words

Critique of the Literature Review - Assignment Example The study sought to investigate the relationship among leadership styles, demographic factors, and confidence in the delegation of duty by registered nurses in a nursing facility. Results identified lack of a relationship between confidence in delegating duties to â€Å"unregistered assistive personnel† and applied leadership style by registered nurses (Saccomano and Pinto-Zipp, 2011, p. 522). The results also noted that fresh nurses with lower academic qualifications reported lower confidence in delegating duties to the unlicensed personnel than registered nurses. This however changed and after years of experience, the nurses with lower qualifications reported higher confidence than registered nurses did (Saccomano and Pinto-Zipp, 2011). The article identified the study’s problem with clarity. Based on its literature review, registered nurses focus on clinical practice but disregard managerial and leadership roles. Previous studies had also not explored the relationship between leadership among registered nurses and their confidence in delegation despite a belief that leadership is significant to the nurses’ ability to manage unlicensed personnel and this knowledge gap informs the study’s problem. The researchers also identified frameworks for their study through the concept of transformational leadership and through the path-goal theory. They defined a relationship between transformational leadership concept and problem, delegation among nursing leaders, and the relationship between the Path-Goal theory and the delegation problem. The theory, the concept, and their proposed effect on an individual’s ability to empower followers and delegate duties to them make the theory and concept appro priate for the study’s problem (Saccomano and Pinto-Zipp, 2011). Reviewed literature was appropriate for the topic and contributed to knowledge development on the topic’s variables. Selected information from the reviewed literature was relevant to the topic and the scope of the  literature’s contents was consistent with the scope of the article’s aim.  

A Sense of Truth Essay Example | Topics and Well Written Essays - 1250 words

A Sense of Truth - Essay Example A thorough analysis and better understanding not only clarifies but illuminates the distinction between deception and truth, trust and mistrust. Plato in his work, "Allegory of the Cave" published in his book The Polity presented the false reality that chained the people inside the cave. They had been blinded by ignorance and overshadowed by darkness. They believed that the shadows on the walls of the cave were true as opposed to the reality that these were just puppets and illusions. One of the prisoners had eventually escaped and seen the light. The sunlight represents the absolute Truth, which is what actually is, and is not relative to what any person might think to be truth (Christian Dunn, 2006). The point of Plato was to find the truth as the ultimate goal; relying on the senses to interpret reality would not give the truth. This perception of the truth will also be different from person to person. Furthermore, Plato suggested that our senses can be a distraction from the truth and should not be trusted because they are untrusting and false guides to realities. Siddhartha Gautama, the Buddha argued otherwise. ... With the background and foundation laid, I am now ready to answer the question "Should we trust our senses to give us truth" Trusting our senses achieves the purpose of knowing what the truth is. It simply means allowing the mind to digest the information perceived through the senses and making judgment based on these perceptions. Every person's reactions although varied will detect that the stimuli have been responded to depending on the conditions and courses of an event. While an observation is a prelude to a deduction of what really happens, it is still with empirical knowledge that the truth is tested and settled. After all, a claim remains a claim if not backed up with facts. Nevertheless, trusting the senses still remains the ultimate paradigm that ushers the knowledge of the truth. In an unchartered territory, the most a person can do is to act according to his instincts and survive depending on a perception of this environment. Needless to say, it is the right time for his senses to be utilized and maximized. Imagine being stuck in the Arabian Desert. What penetrate your eyes are visions of sand, sky, date palms, and occasional arachnids like scorpions, ticks and spiders. The dust swaying in the air provides an unbearable smell. The resolute stillness and serenity generate a deafening sound as well as the booming of the wind. The taste of water and soda creeps into your nerves and makes you thirst. Worse of all, the scorching heat reaches up to 54C. All these in consideration will determine the ability of a person to forge his reactions based on stimuli. Let's say there is a snake in the middle of the Desert. Trapped in this situation, the individual must find ways to get rid of the snake. How When the

Hair-hashish thesis and analysis Assignment Example | Topics and Well Written Essays - 250 words

Hair-hashish thesis and analysis - Assignment Example The lyrics demonstrate the perception held by people on drug use and scene as well as the counter dissociative culture in the sixties. In the song, Hair Cast talks about drug use among the generation and addresses the revolution. The drug problem has been intensively addressed as a proliferation in the community of all mood altering, illicit and physically dangerous drugs. The drugs also lead to problems such as crime, threat of crime, disease, violence, loss of productivity, growing number of users in welfare of the public, over-crowding of the penal institutions, congestion of court system, diversion of tax from productive areas, erosion of our civil rights, and corruption of law enforcement agencies. Hair Cast in â€Å"Hashish† song, addresses the theme of drug scene through the aspects involved such as remorseful mood and depressed tone featured in the lyrics. In summary, this research paper will be carried out through listening to the song and researching two other sources which will be cited properly in the paper. The paper will consider addressing the themes of the song in detail and illustrate how the aspects of the song such as tone and lyrics represent the mentioned

Essay Essay Example for Free

Essay Essay THE MOST MEMORIABLE VACATION My most memorable vacation was when I went to NHA TRANG with my family last summer. When my father told me I was excited because NHA TRANG famous for beautiful beaches and delicious foods. After four hours on the train, finally we arrived. Although I felt tired after long hours, I am happy when I was standing in front of a beautiful beach. Firstly, we arranged our bags and after that, we quickly swim in the blue sea. Next, my younger brother and I were building sandcastles while my parents were sunbathing on the sand. For a few hours, we felt hungry so we went to a nearby restaurant to enjoy tasty foods. In the afternoon, we visited some beautiful and famous places such as THAP BA PONAGAR; HON CHONG then went to NHA TRANG center to buy some souvenirs. The day went by so fast. The trip was short but it had a strong impression on me and my family and I have many memories of that day. QUALITY OF A GOOD TEACHER The good teacher has three important qualities. The first quality of a good teacher is that having strong knowledge of his or her subject matter. For instance, teachers have to provide students with specific content knowledge. A good teacher will know how to explain the content that he or she is teaching in a way easy to the most understand for students. Another quality of a good teacher is enthusiastic and caring. For example, he or she always cares academic status of the students and help them more advance in learning. Moreover, they also learn about the family circumstances of the individual students and find ways to help the poor students. The last quality is that confidence. Standing in front of a class, he or she has to the voice clear and full of confidence to their student pay attention to his or her lectures. To sum up, a good teacher need to have three qualities above and ethic good quality. DISADVANTAGES OF LIVING IN THE DOMITORY Living in a college dormitory has several disadvantages. The first disadvantage is narrow space. For example, dormitory in PHU YEN University, there are eight students sharing the room, it becomes crowded and narrow. You do not have much space to learn within a dorm. In addition, your  roommates can be messy, upset, or talkative so you will feel uncomfortable when living together with them. Another disadvantage is food. You are not allowed to cook in the dormitory so you have to eat rice at the canteen or at the restaurant. The amount you have to pay for meals in the dorm expensive than in the motel. In addition, you will feel tired of when you have to eat the same foods every day. Finally, living in a dormitory is noisy. Sometime you cannot concentrate for learn if your roommate opens music loudly. To sum up, you must find the best accommodation for you to convenient for your learning but you should think before deciding to live in the dormitory. A BEAUTIFUL BEACH AT DAWN Beyond a shadow of doubt, NHA TRANG beach is one of the most beautiful beaches in Vietnam, particularly at dawn. Every day, at 5.30pm, the sunrise slowly, it is like yolk rise from the bottom of the sea. At that time, the beach always crowded. Many people get together here very early to do the exercise and bathe in the sea. The beach scenery at dawn is fantastic, with a neglected beauty. The silence covers the whole beach; there is no sound but the sound of breaking waves. If you stand on the sandbank and stare into the distance, in the sun direction, you will have a strange feeling; have something peaceful in the deep of your soul. The atmosphere is so great by the winds, which come from. When the sun has risen completely, you can see some light rays of sunlight; they signal to you that the dawn-time nearly ended. I think words cannot describe how nice this beach is at dawn. If you have a chance to visit somewhere, why do not you try visiting NHA TRANG to enjoy the beach landscape at dawn in the true sense of the word? A BEAUTIFUL BEACH AT DUSK Sitting on the fine sand, I can see the amazing beauty of the beach at dusk. The sun like a fiery orb looks like it is gradually receding into the waters below. The setting sun’s red rays lit up the sky above the western horizon. At the time, the sky consisted of an assortment of shades, a blend of reds, oranges, and yellows. The waters below mirror this effect. The waves are tinted vermilion; the sand under my feet is the same color, the vivid color mix highlights the beauty of the beach at dusk like a perfect picture. I can  hear is the sound of the waves as they crash against the shore, and seagulls, which I cannot see, squawking in the distance. Sometime I can smell the fishy smell of fish. It smells warm and salty, as I breathe in the cold, salty. I just stand there, eyes closed, and feel the moment until the dusk and the warm feeling fades. I wish time could stop to enjoy this wonderful moment longer. HOW TO MAKE CHICKEN RICE You can make a tasty chicken rice dish if you follow these easy steps. The first step is to prepare the necessary ingredient such as haft chicken, rice, three slices ginger, salt, coriander onions, cucumbers, tomatoes, and chilly sauce. Next, cook the rice in the rice cooker. The third step is to cut the chicken into bite-sized pieces, and then combine all the other ingredients and mix well in a bowl. After that, pour the mixture over the chicken, cover with foil and bake until the rice is cooked. When the rice is cooked, season to taste with salt, if needed. Finally, scoop a bowl of chicken rice on plate. Place cooked chicken over the rice. Garnish with sliced cucumbers, tomatoes, coriander, and spring onions. Now sit down and enjoy your delicious chicken rice plate with ginger sauce and chilly sauce on the side. HOW TO PREPARE FOR A JOB INTERVIEW Before a job interview, you can be stressful, but you can reduce your stress by following these skills. The first skill is picking out what you are going to wear to your job interview. The first choice an interviewer makes is going to base on how you look and what you are wearing. That is why it is always important to dress appropriately for a job interview. The second skill is that practiced greeting before your interviewer. You should always greet your interviewer with a friendly smile and a firm handshake. It will create a good impression about you to the interviewer. Next, you should prepare some typical interview questions you will probably be asked during a job interview. If you prepare well the answers of the interviewers can ask, you will not be surprised with questions about them. Practice interviewing  with a friend or family member ahead of time and it will be much easier when you are actually in a job interview. To sum up, the interviewers will appreciate what you did and can choice if you have a good preparation. AUSTRALIAN AND VIETNAMESE EDUCATION SYSTEM Australian and Vietnamese have similarities and differences in the education system. We can see that both education systems of Australian and Vietnam are quite similar that they have twelve grades, from one to twelve. In addition, schooling is compulsory for students until the age of fifteen. Despite the similarities, the two educations have some very important differences in system division, school-time. The first major difference between Vietnamese and Australian education is the system division. In Australia, primary school goes from grade one to six and secondary school from grade seven to twelve. In Vietnam, we have primary school (from grade one to five), middle school (from grade six to nine), and high school (from grade ten to twelve). Another obvious difference that we can see from these two educations is school-time. In Australian, the academic year begins in early February for school students and late February/early March for vocational and university students. However, in Vietnamese, the academic year begins in middle August for students and late August/ early September for university students. Although both education systems of Australian and Vietnamese have a lot of differences and similarities, they are good education systems for students. AMERICAN AND VIETNAMESE MEALS American and Vietnamese meals are quite different. One difference is Americans have one big dinner per day but Vietnamese have three meals a day with some snacking on fruits and cakes. Americans always think to take advantage of that time to be effective, breakfast and lunch only eating briefly, in the evening with more spare time, so comfortable chatting happily, and eating dinner together. Another difference is that the Vietnamese have breakfast with soup â€Å"pho,† rice or rice noodles; bean sprouts; greens; boiled eggs; and crusty bread and drink green tea or coffee. The Vietnamese have lunch and dinner with rice, fish, or meat;  vegetable dish with fish sauce then snacks with fruits or cakes. In contrast, Americans eat many foods that are high in calories and fat, such as hamburger, fried chicken, sandwiches. They do not spend much time in preparing food so they choose fast foods or going to the restaurant to eat. All in all, though there are differences between American meal and Vietnamese meal, they are typical culturally in the world.

Competition Between The Three Major Supermarkets Economics Essay

Competition Between The Three Major Supermarkets Economics Essay For my Extended Essay, I decided to investigate the competition between the three major supermarkets in my local area, and whether they collude or not, prompting my research question: To what extent do the larger supermarkets in my local area collude with each other? By analysing data collected on pricing from the three supermarkets, it was found that two of the three supermarkets at hand colluded tacitly with each other, under and oligopoly market structure. The prices of fifteen identical prices were recorded across a time span of three weeks. The analyses of these prices lead to two conclusions. Firstly, it was found that two supermarkets colluded with each other, but still had non-price competition between them. This was mainly due to the advantage of the two stores acting as a monopoly by charging the same price. This allowed the two supermarkets to make abnormal profit, which in turn they used to create a stronger brand loyalty, and thus, a more inelastic demand curve. Secondly , it was found one of the supermarkets was undercutting the other two supermarkets prices. The main reason for this was that the supermarket could gain greater revenue at the time by undercutting rivals, due to having more customers. These findings show that there was collusion between larger supermarkets in my area, but not between all supermarkets. Finally, the essay could be improved if I included more products in my data collection, as well as collecting the data over a longer time period. 1. INTRODUCTION Tesco, Asda and Sainsburys are the three main supermarkets that constitute weekly shopping for the public in my local area, west Charlton. These three supermarkets are recognised for their vast range in goods and at affordable prices. It is no surprise then that in terms of market share, they each comprise the top three places for having the most market share in the U.K.1 During the last couple of years, though, I have noticed that many of the smaller supermarkets in the same area have begun to close down. Since enrolling in the IB Higher Economics course and studying market structures in particular, Ive developed an interest into how supermarkets compete with each other, or even, how they collude together. Maybe, given their large hold of the market share, the benefits from collusion would be unmatchable compared to other smaller supermarkets, in terms of increased sales revenue. Also, formal collusion, one of two forms of collusion, is illegal as it goes against the Competition Act 1998 (the Act) Chapter 12. Therefore, the research question I have formulated is To what extent do the larger supermarkets in my local area collude with each other? To be able to explore this research question, I will first present a summary of the supermarkets, where the characteristics of them will be described. This will lead on to my next section where I will discuss relevant theoretical market structures and relate economic theories to them. After I have presented these theories, I will hypothesise which market structure is adequate for the supermarkets present, thus creating a sufficient research design where the prices of similar products will be compared. Finally, I will analyse the collected data and prove or disprove my research question, leading to a conclusion of my essay and exploring possible limitations. 2. MARKET SUMMARY In the area I am studying there are three main supermarkets; Asda, Tesco and Sainsburys, situated in West Charlton (appendix 1.1). Each supermarket is similar in size, satisfying the vast needs of the inhabitants in the area. It is worth mentioning that due to the supermarkets being of a substantial size structurally, there must have been large start up costs. Each of the three engages in non-price competition. This includes things such as advertising on T.V, having parking areas and the use of brand names. The offerings of these services are in the attempt to attract more customers. Take for example, Asda, which has parking as well as various sectors to its stores such as electrical and clothing sections as well as groceries. The aim of this is that customers can visit only this store by satisfying all their needs from the vast offers of goods. Furthermore, each supermarket advertises their brand names to gain more customers due to the brand loyalty it has established. This could ma ke their demand curve more inelastic, meaning that an increase in the price of a good would result in the increased revenue exceeding the reduction of quantity sold (appendix 1.2). These three supermarkets also dictate the majority of market share, as I have mentioned. Lastly, it is worth mentioning that Sainsbury ¿Ã‚ ½s and Asda are open for 24 hours from Tuesday to Friday, otherwise it is from 7 in the morning to 11 in the evening. Tesco are open from 7 to 11 everyday, apart from Sunday when they open an hour later and close an hour earlier. I don ¿Ã‚ ½t think that the slightly lesser hours that Tesco is opened during the week will affect my research much, or at all. This is due to the fact that I don ¿Ã‚ ½t believe Tesco make much of their sales between midnight and 7 in the morning. 3. MARKET STRUCTURE THEORIES I will now present the four types of market structure theories and their assumptions. I will not going into great detail on the structure of a monopoly as this is not a possible market structure for the supermarkets, given the fact that there is evidently more than one firm in the area. This is the same for perfect competition, as the goods produced by supermarkets are not identical. Firstly, I will present the market structure of a monopolistic competition. The assumptions of this market structure are3: * The industry is made up by a large number of firms * The firms each act independently of each other, due to each firm being small, relative to the size of the industry * The firms produce differentiated products; consumers can tell one product from another * Firms are free to enter and exit the industry, due to lack of barriers to entry and exit * Firms are able to make abnormal profits in the short run, however due to lack of barriers to entry; this attracts other firms into the industry. This means that in the long run, only normal profits are able to be made Due to the fact that the supermarkets in question are of a substantial size, I believe that the start up cost in itself will be of a great barrier to entry. Also, I don ¿Ã‚ ½t believe the industry I am examining is made up of a large number of firms, as there are only three supermarkets of their type in the local area. Another market structure that the supermarkets could come under is an oligopoly. These are the basic assumption of an Oligopoly:4 * A few firms dominate the industry * There are barriers to entry and/or exit for the industry * The firms are price makers as they have a downward sloping demand curve * The firms are interdependent; the action of one firm can have an effect on another * Abnormal profits can be made both in the short run and long run In addition to these assumptions, firms in an Oligopoly can be either collusive or non-collusive. Non collusive oligopolies face price stability due to the kinked demand curve. This is shown in figure 1. Figure 15 Due to the kinked demand curve, price will be stabilized at price  ¿Ã‚ ½P ¿Ã‚ ½. This happens as the Price elasticity of Demand (PED: The responsiveness of the quantity demanded of a good or service to a change in its price)6 above price  ¿Ã‚ ½P ¿Ã‚ ½ is greater than 1. This means that an increase in price above point  ¿Ã‚ ½P ¿Ã‚ ½ will result in a loss of revenue. Likewise, the PED below price  ¿Ã‚ ½P ¿Ã‚ ½ is less than one, meaning a reduction in price to this level will result in a loss of revenue again. Due to these factors, it is logical that firms do not favour either move, so they are said to be stable at point P. This also results in the output being stable at point  ¿Ã‚ ½Q ¿Ã‚ ½ as a change in marginal cost from MC1 to MC2 would still mean output would stay at  ¿Ã‚ ½Q ¿Ã‚ ½. This is due to firms in this market structure producing at the profit maximising point, where MC=MR.7 Firms in this market structure may also be collusive. This exists when the firms collude to charge the same prices for their products, in effect acting as a monopoly. There are two types of collusion, formal and tacit. Formal collusion exits when firms openly agree on the prices they will charge. In the case of supermarkets in the U.K, it is illegal for this to occur as it is deemed to be going against the interest of the consumer due to it resulting in less output and higher prices. Tacit collusion, however, exists when firms charge the same prices without any formal collusion. The three supermarkets in question may have decided to charge the same prices and not compete with each other, in order to increase revenue. This is represented in figure 2. Figure 28 As shown in figure 2, firms can make abnormal profits between their price and cost, due to the price exceeding the cost to the firm. This form of collusion is very possible as each supermarket is very similar to each other and all produce similar type goods. Firms in an Oligopoly can experience economies of scale. Economies of scale are any decreases in the long-run average costs that occur when a firm changes all of its factors of production, in order to increase its scale of output. There are a number of different economies of scale that can benefit a firm as it increases its scale of output. These can be: 9 * Specialisation- Firms can be more efficient when they specialize in different areas of expertise * Division of labour- This is the breaking down of a longer production process into many smaller activities, making production more efficient by reducing unit costs * Bulk buying- As firms increase in scale they are often able to negotiate discounts with their suppliers, as they are buying more altogether. This reduces the firm ¿Ã‚ ½s cost of input, and thus their unit costs of production * Financial economies- Larger firms are able to get loans at lower interest rates, as they are seen as a lesser risk to lend money to than smaller firms, by the bank The assumptions of a monopoly are as followed:10 * Only one firm producing the product at hand, so the firm is the industry * High barriers to entry and/or exit * Abnormal profits can be made in the long run, due to barriers to entry This market structure is unlikely to be present in my research area as there are clearly more than firm in the same industry. Finally, the basic assumptions of perfect competition are: * The industry is made up by many firms, so total output cannot be affected by one firm * The firms all produce homogeneous (exactly identical) products * No barriers to entry and/or exit * Producers and consumers all have perfect knowledge of the market Again, this market structure is unlikely to feature in my study, mainly due to the fact that there is product differentiation, as well as evident start up costs. 4. HYPOTHESIS After reviewing and comparing the discussed market summary and theories, I have hypothesised that the market structure the supermarkets are in are oligopoly. I have reached this hypothesis for the main reasons that: * There are evident barriers to entry such as strong branding of products and start up costs * There are only three supermarkets in the local area, between them sharing almost 64% of the market share.11 In addition to these points, I believe tacit collusion between the three supermarkets would greatly benefit their competition with other smaller supermarkets in the area. It would also avoid unnecessary competition between each other, and perhaps result in gaining more customers. After hypothesising that the three supermarkets are in an oligopoly, and thus capable of collusion, I will now be able to test my research question  ¿Ã‚ ½To what extent do the larger supermarkets in my local area collude with each other? ¿Ã‚ ½ 5. RESEARCH DESIGN For me to test my formulated research question, I will create a methodology. I will compare the prices of 15 different products across the three supermarkets. I will check the prices once every week for three weeks, so I can get a mean price at the end, making the result more reliable. I will make sure the prices of the same products are taken in the same time period, and where possible, use products produced in the U.K. This would avoid export costs affected and invalidating results. If not enough U.K based products can be found, I will make sure that any exported product used will have been exported from all supermarkets. This will maintain a degree of validity in the research. I will also avoid products produced by the supermarkets themselves. This would be because the cost of production may be very different from one supermarket compared to another, thus having a large impact on the final pricing. I will compare independent brands that feature across all three stores. Each superm arket in the area of West Charlton is located within one mile of each other.12 In terms of the data collection, I will go to each supermarket and compare similar, or when possible, identical products and their prices. I will note down their current price at which they sell at. Also, I will go to each supermarket close to their opening times on Saturday, as on this day the stores all open at the same time. The reason for not going later on in the day is because of price reduction on non-durable goods that are set to expire. If I include goods which prices have just been reduced temporarily to get rid of lasting stock, it would not represent the overall pricing of the good in regular situations. Lastly, I will compare the prices using adequate means of analysis; thus deducing whether or not there is enough similar pricing evident to suggest collusion of some sort. 6. DATA COLLECTION ANALYSIS Firstly, I will present my data collected for the prices of 15 products from all three supermarkets, across a span of three weeks, once a week. Table 1 shows my findings of the prices. Table 1 Source: Prices collected by me for all supermarkets To analyse the spread of the data, I will work out the standard deviation for each product, which will indicate the spread of the data. A lower standard deviation would indicate a set of closer, similar prices, likewise a higher standard deviation would imply less chance of collusion evident.13 The standard deviation for each product is represented in Table 2, along with the mean prices for each product over the three weeks. From the standard deviation, we can see they are all overall quite small, indicating the prices are all close to the mean price. This seems to indicate some form of collusion occurring between the supermarkets. However, there are some exceptions. For some goods the standard deviation is relatively high to the other products. Also, in most of these goods, such as soft drinks, crisp packs, pizza, ice cream and cooked chicken, it is Asda who feature the lowest price out of the three, while Tesco and Sainsbury ¿Ã‚ ½s have similar prices to each other. This seems to show that there is possible collusion between Tesco and Sainsbury ¿Ã‚ ½s, while Asda undercuts their prices. The similar pricing between Sainsbury ¿Ã‚ ½s and Tesco suggests a form of collusion, tacit or formal. I inquired to the Office of Fair Trading (OFT) about my findings. The OFT are a government based organisation that ensure businesses are  ¿Ã‚ ½fair and competitive. ¿Ã‚ ½14 In a reply they stated:  ¿Ã‚ ½Although similar prices might seem to suggest that companies are getting together to agree them, this is not necessarily the case. For example, one company might have independently decided to price at a level similar to another or both may have independently decided to behave in the same way ¿Ã‚ ½.15 As similar pricing does not necessarily mean formal collusion is taking place, I will assume that the two supermarkets are tacitly colluding, although this area may be needed to be researched into further for a definite result. As well as colluding, I have also noticed that there is evidence of non-price competition between Tesco and Sainsbury ¿Ã‚ ½s. This included things such as the use of advertising, free delivery and other services situated in the store themselves. This has lead to each supermarket gaining brand loyalty, and as a result, creating a more inelastic demand curve for their products. This is possibly another explanation of why these two supermarkets in particular where of a higher price overall, compared to the other supermarket, Asda. For the case of Asda, they have engaged in price war tactics, rather than forming a collusion. In this case, undercutting rivals may be beneficial to them by increasing their sales revenue. This can be represented by  ¿Ã‚ ½game theory ¿Ã‚ ½. Supermarket The table shows that if both supermarkets lower price, they will make less revenue than if they had colluded. However, it is still tempting to undercut the other store as then that would lead to greater revenue. The highlighted box shows the possible situation at the moment, with Asda undercutting the other supermarkets thus increasing revenue. This choice making situation is known as  ¿Ã‚ ½the prisoner ¿Ã‚ ½s dilemma ¿Ã‚ ½. 16 Another explanation for the lower price offered by Asda for goods could be down to lower unit costs caused by a greater storage capacity. The supermarket ¿Ã‚ ½s cost of storage mainly depends on the material used to build them, which is the surface area of the building. The level of output for the supermarket will depend on its storage capacity, so its volume area. As the size of a supermarket increases, the volume to surface area ratio increases. Therefore, the cost per unit overall will be much less than a smaller supermarket, such as Sainsbury ¿Ã‚ ½s and Tesco. Lastly, from analysing my collected data, I have reached the conclusions: * Tesco and Sainsbury ¿Ã‚ ½s collude by charging very similar prices, but still have non-price competition between them. * Asda competes with a price-war tactic, by undercutting the other two supermarkets. 7. CONCLUSION The aim of my research was to investigate the type of competition, if any, between the three major supermarkets in my area, West Charlton. The question  ¿Ã‚ ½To what extent do the larger supermarkets in my local area collude with each other? ¿Ã‚ ½ prompted me to gather the pricing of 15 identical products across the three stores. The prices were taken every Saturday morning one a week for three weeks. I found that two of the three supermarkets had signs of collusion, while the third supermarket engaged in a price-war by undercutting the other two supermarkets. Firstly, Tesco and Sainsbury ¿Ã‚ ½s have similar prices to each other, while having higher prices than Asda. This was mainly due to the two stores acting as a monopoly by colluding and charging similar prices. This meant that each firm could make abnormal profit, which they used to create greater brand loyalty, thus making the demand for their products more inelastic. Lastly, the final supermarket, Asda, engaged in price-war tactics. The main reason for this was due to the idea of gaining more revenue as indicated by  ¿Ã‚ ½the prisoner ¿Ã‚ ½s dilemma ¿Ã‚ ½. In addition to this, Asda had a greater storage capacity, meaning an overall lower cost per unit. Therefore, after collecting data and analysing them, it is found that there was evidence of collusion, but only between two of the supermarkets, not all three studied. There are, though, apparent limitations in my study. Firstly, my area of research was only in one town. If there is found to be some form of collusion between supermarkets here, it doesn ¿Ã‚ ½t necessarily mean it is occurring all over the country with those same supermarkets. Also, the time span of my investigation was three weeks. This may not have been enough time to gather an appropriate amount of results to come to a reliable decision. This could be said the same for the amount of products used in my investigation; 15 products may not have been enough to come to an appropriate result. As well as this, I could not make a judgment whether the collusion between Tesco and Sainsbury ¿Ã‚ ½s was either tacit or collusion. This would have to be investigated further. All of these limitations overlook the aim of my study and thus should be inspected further. 8. BIBLIOGRAPHY/ACKNOWLEDGMENT Anderton, A. (2006). Economics: Fourth Edition. In A. Anderton, Economics: Fourth Edition (pp. 63-64). Causeway Press. Dorton, I. (2007). Economics. In I. Dorton, Economics (pp. 119-123). Oxford University Press. Dorton, I. (2007). Economics. In I. Dorton, Economics (pp. 114-118). Oxford University Press. Dorton, I. (2007). Economics. In I. Dorton, Economics (p. 115). Oxford University Press. Dorton, I. (2007). Economics. In I. Dorton, Economics (pp. 81-82). Oxford University Press. Dorton, I. (2007). Economics. In I. Dorton, Economics (pp. 105-111). Oxford University Press. Garner, E. (2010, June 1). TNS Global. Retrieved June 1, 2010, from TNS Global Website: http://www.tnsglobal.com/news/news-56F59E8A99C8428989E9BE66187D5792.aspx Measure of Spreads. (2007). Retrieved June 3, 2010, from Stats4students: http://www.stats4students.com/Essentials/Measures-Of-Spread/Overview_3.php Office of Fair Trading. (n.d.). Office of Fair Trading. Retrieved June 3, 2010, from http://www.oft.gov.uk/: http://www.oft.gov.uk/ Office of Fair Trading. (2010, May 25). Office of Fair Trading Reply Letter. London, U.K. Prisoners Dilemma. (1997, September 4). Retrieved June 3, 2010, from Stanford Encyclopedia of Philosophy: http://plato.stanford.edu/entries/prisoner-dilemma/

The Monetary And Fiscal Policies Of Portugal Economics Essay

The Monetary And Fiscal Policies Of Portugal Economics Essay I. Introduction: Portugal macroeconomic situation before the crisis. Despite economic and financial crises seem to be regarded as unusual and rare, in reality they are common events. Particularly, Portugal has already seen its worst financial crisis in 1891. This crisis led Portugal to abandon the gold standard and the country was banned from borrowing in international financial markets during 20 years (Lains, 2007, p. 485). Since then, Portugal has radically changed, however, its weakness in facing the crises has remained. During the last economic and financial crisis that started in August 2008, the Portuguese economy was caught in the middle of a period of adjustment during which was already facing up to the need to correct its fiscal and external imbalances within a phase of low growth with pro-cyclical policies (Torres, 2009, p.55). This period started in the second half of 1990s with the accession to the Economic and Monetary Union (EMU) and was characterized by an economic boom which was followed by a slump. As a matter of fact, Blanchard (2007, p.1), two years before the crisis, stated that the Portuguese economy is in serious trouble: Productivity growth is anemic. Growth is very low. The budget deficit is large. The current account deficit is very large. Although, from 1995 to 2001, Portugal was in a catching-up phase benefiting from positive wealth effects of EMU (lower interest rates which supported the increase of the domestic demand), the current account deficit rose drastically and the unemployment rate fell to about 4% (figure 1). The reason behind the increase in the current account deficit was, indeed, the low level of unemployment which boosted the nominal wages to increase more than the labour productivity provoking a huge raise in unit labour cost and a decline in competitiveness. Moreover, the indebtedness of households and non-financial enterprises was increasing because of the elimination of the exchange rate risk, the access to the euro bond market, and the lower interest rates, both nominal and real, set by the European Central Bank (Blanchard, 2007). As result, from 2000 to 2003, savings dropped and investments increased, therefore the current account deficit slightly decreased. The Portuguese economy slowed down and then contracted in 2003. The subsequent slump was the result of the large imbalances built up during the phase of boom. For instance, the high levels of consumption were not counterbalanced by the supply which had to deal with low productivity growth and increasing unit labour costs. As a matter of fact, figure 1 shows a combined upward trend of unemployment and current account deficit between 2003 and 2005, and the attempt to reverse it through the budgetary consolidation process re-assumed by the socialist majority government elected in 2005 (Blanchard, 2007) (Torres, 2009). To sum up, table 1 and table 2 offer an overview of the macroeconomic imbalances during the phase of the boom 1995-2000 and the one of the slump 2001-2007. Table 1. Macroeconomic evolutions, 1995-2001. Source: Blanchard (2007) Table 2. Actual and projected Macroeconomic evolutions, 2001-2007. Source: Blanchard (2007) The growth rate was rather high in the timeframe 1995-2000, then, since 2001 it started falling in the subsequent years. The current account and the budget surplus were in deficit over the whole observed period and the productivity growth started to be very low since the year 2000 causing the raise of the unit labour cost. It was important to describe the macroeconomic situation of Portugal prior to the crisis in order to explain, in the next sections, how those problems have been aggravated since 2008. In fact, the phase of slump was prolonged by the financial crisis occurred in 2008. II. Policy Responses Prior to analyze the European and Portuguese policy responses to the major financial crisis that the whole world is facing since 1929, it is essential to point out what kind of crisis our society is dealing with. The main cause of the crisis may be ascribed to the crisis of derivative market in the United States. In particularly, it started from the so-called subprime mortgage crisis which was the result of a speculative bubble in the housing market in the United States. Starting from the United Stated, it has spread by causing ruptures across many other countries in the form of financial failures and a global credit crunch. The main (systemic) Portuguese banks seem not to be particularly exposed to the so-called financial toxic assets and, unlike in Ireland or Spain, there was no speculative bubble in the housing market in Portugal nor is there a subprime segment in the credit to the housing sector. (Banco do Portugal, 2008 as cited in Torres 2009) However, according to Torres (2009, p.56): Portugal, a small economy fully integrated in economic and financial terms, is particularly affected by the global financial crisis and economic recession. This is not so much due to the international exposure of the Portuguese banking sector (the Iceland syndrome) but primarily to the countrys long protracted correction of its fiscal and external imbalances, which worsen its creditworthiness and aggravate the costs of servicing the debt and the countrys perceived risk of insolvency (an Argentinean type of problem, without the risk of a currency crisis as long as the eurozone remains in place). One of the main consequences of the financial crisis was, indeed, the credit crunch. During the last decades, the European banking system has changed from a system where the bank was the intermediary for investments between families and factories, into a new system where there are large money-centre banks which play the role of the intermediary amongst regional banks, in other words, they distribute funds among regional banks. The banking crisis has occurred in Europe because of two related reasons. The large money-centre banks that provide the backbone of the inter-bank lending market are undercapitalised. With their low capitalisation, they are vulnerable to even small swings in market conditions. Any liquidity problem, thus, turns almost immediately into a solvency problem. Because of this vulnerability they did not trust each other, thus paralysing the inter-bank market. 2.1 European Policy Responses For the Euro-area countries, the monetary policy is unique and conducted by the European Central bank (ECB). Since the atmosphere of mistrust, caused by the crisis, was no longer confined to the interbank market, but it was also spreading among ordinary citizens and consumers, the European policy-makers figured out that one possible solution was to put into effect measures which contain two elements in order to restart the interbank lending: support for the liquidity management of banks and bank re-capitalisation. The first element concerns the extraordinary measures taken at European level and the second one the bank rescue measures adopted at national level. As a matter of fact, firstly, the ECB has been reducing the rate for its main refinancing operations from 4,25% to 1,5%, in the timeframe October 2008 March 2009, in order to prevent contagion by providing short-term liquidity support on the interbank markets. Such interest rate cuts have provided significant relief to the highly indebted Portuguese economy (Torres, 2009). However, if Portugal could have managed the monetary policy on its own, probably it would have set a lower interest rate which combined with the initiative for strengthening financial stability (discussed in detail in the next section) could have led to the reestablishment of bank lending standards at pre-crisis level. In other words, the upward trend of the credit diffusion index, starting in the last quarter of 2008, could have continued to increase instead of contracting in 2009 (figure 3). Moreover, a dramatic reduction in real interest rates is the main channel through which fiscal consolidation can increase demand in the short run. Since this is not the case for Portugal, as the nominal interest rate is determined for the eurozone as a whole, while a deficit reduction is needed, it would be unwise to expect it to lead, by itself, to higher demand and lower unemployment à ¢Ã¢â€š ¬Ã‚ ¦ or à ¢Ã¢â€š ¬Ã‚ ¦ to a boom in investment, and through capital accumulation, to a substantial improvement in competitiveness (Blanchard, 2007, p.8-9). Secondly, the ECB has promoted coordination and cooperation between national supervisors through the European System of Central Banks Banking Supervision Committee. As result, the promoted cooperation engaged both the Euro-area and the European Union (EU) in an expansionary coordinated anti-cyclical fiscal stance (Torres, 2009, pp. 56-59). To further improve the EU coordinated approach, the European Commissions response was to launch the European Economic Recovery Plan (EERP) whose strategic aims is to avoid a deep recession by promoting a counter-cyclical macro-economic response to the crisis in the form of an ambitious set of actions to support the real economy. The plan consisted of an immediate budgetary stimulus amounting to 1.5% of EU GDP, a number of priority actions, grounded in the Lisbon Strategy, and designed at the same time to adapt our economies to long-term challenges, continuing to implement structural reforms aimed at raising potential growth and a set of EU guidelines to be followed by the member States (European Commission, 2008). According to Bà ©nassy-Quà ©rà © et al. (2009, p.39), out-of-ordinary methods are used in a financial crisis because: the traditional transmission of policy rates to lending rates is hampered by the dysfunctional state of money markets. This happens at two levels: first, the interbank rate (the rate at which banks lend liquidity to each other) diverges from the central banks policy rate because banks fearing counterparty default price risk accordingly; second, the spread between the commercial banks lending rate and the interbank rate increases both because of higher risk premiums and because banks seek to increase their profits. According to Meier (2009, p. 6), a switch to unconventional policy may be motivated by the severe turmoil in credit markets. With the financial sector in crisis, policy rate cuts are not only constrained by the zero bound, but may also be less effective than during normal times. The reason is the sharp tightening of credit conditions, as lenders have curtailed loan supply and certain sources of capital market funding have all but disappeared. Indeed, such dislocations can provide a rationale for launching unconventional policies even before interest rates hit the lower bound. In sum, unconventional monetary policies serve both as a complement and as an extension of standard operations centered around the setting of short-term interest rates. One of the unconventional actions is the so-called outright asset purchase, a technique to decrease the discrepancy between interbank and lending rates. Furthermore, Meier (2009) provides a categorization of such operations, distinguishing between qualitative easing, as sterilized interventions that do not involve an increase in the central banks balance sheet, and quantitative easing, as unsterilized interventions implying an increase in base money. Unlike the US and the UK, in the Eurozone the direct purchase of government debt instruments is forbidden by art. 101 of the EC Treaty, therefore quantitative easing is not contemplated. Figure 2 shows how liquidity provisions and out-of-the-ordinary policies, adopted by ECB, Federal Reserve (FED) and Bank of England (BOE), increased the size of the central banks balance sheets. Assets hold by the ECB are about 50% lower than FED and BOE because they executes quantitative ease operations (Bà ©nassy-Quà ©rà © et al. 2009, pp. 42-44). 2.2 Portuguese Policy Responses With the financial crisis Portugal has re-focused its economic policy from budgetary consolidation to an anti-cyclical budgetary policy effort to support households, investment, employment and, last but not least, to strengthen financial stability (MFAP 2009 as cited in Torres 2009). At the end of 2008, to guarantee stability of the financial system and to safeguard the households deposits held by credit institutions, the Portuguese government, following the trend of the other member states, decided to save two banks: the Banco Portuguà ªs de Negà ²cios (BPN) and the Banco Privado Portuguà ªs (BPP). In particular, BPN was nationalized and BPP was granted a guarantee for a bank loan provided by a group of banks. Although the dimension of those banks was small, the government feared that the potential loss incurred by many small depositors could generate a run of bank depositors in general, putting at risk the stability of the financial system (Torres, 2009, p.61). The second measure to strengthen financial stability was taken in October 2008 when the Portuguese Ministry of finance and public administration announced the endorsement of the Initiative for strengthening financial stability (ISFS) in order to respond to the substantial external shock, to which it was being subject, due to severe liquidity restrictions in international financial and money markets. The ISFS was aim to enhance conditions for credit institutions access to liquidity in financial markets and was based on granting State guarantees for the financing of credit institutions. According to MFAP(2008), this Initiative: (i) Enhances the confidence in the domestic financial system; (ii) Permits timely intervention adapted to market conditions; (iii) Is temporary, remaining effective only while market conditions have not returned to normal; (iv) Safeguards the interest of depositors and taxpayers; (v) Allows the shareholders and managers of banks to be held accountable whenever necessary and fosters the adoption of good corporate governance principles, in accordance with best international practices; (vi) Safeguards the interests of the market in general and a level playing field among competitors, in particular. According to Torres (2009, p. 60), the aim of the coordinated guarantees on new issuance of bank debt was to address funding problems of liquidity-constrained but solvent banks. Thus, this initiative was a viable and less costly source of funding to allow banks to issue new debts. A third measure was to take advantage of the increased flexibility of the Stability and Growth Pact (SGP) to pay outstanding state debts under the form of a program for the extraordinary settlement of the states debts to suppliers (Council of Ministers Resolution no. 191-A/2008 of 27 November as cited in Torres 2009). However, in my opinion the results of those initiatives were rather limited. I can, indeed, argue that, in Portugal, bank lending standards are tightening. In support to my opinion, figure 3 provides an evidence: the largest observed swing occurred from the last quarter of 2007 to the last one of 2008 when the diffusion index dropped sharply to the minimum observed value, representing the credit crunch. To evaluate the effects of the ISFS it is sufficient to look at the trend starting from the last quarter of 2008, the upswing lasts for only a quarter to stabilize at the level of about minus 45% compared to the pre-crisis conditions. The 19th of January 2009, the Portuguese government updated the Stability and growth Program for 2008-11. Following the EU guidelines concerning EERP, the government incorporated in the SGP program the Investment and Employment Initiative Program (IEIP), as fully consistent with the National Reform Plan for 2008-2010 (within the framework of the Lisbon Strategy), as it also aimed at contributing to addressing the countrys structural weaknesses. The draft law creating the IEIP was composed of five structural measures including several projects or actions to support households and businesses next to those aimed at combating the rise in interest rates and in the price of raw materials and food products and credit restrictions, which had already been envisaged in the state budget for 2009.. The IEIP was expected to have a budgetary impact of about 0.8 per cent of GDP in 2009 (about 0.5 increase in expenditure and 0.3 reduction in revenue in percentage of GDP). The five measures were: modernization of schools; fostering renewable energies, energy efficiency and energy transmission infrastructure; modernization of technological infrastructure and new generation broadband networks; special support to economic activity, exports and SME; protecting employment and strengthening social protection (Torres, 2009). 1). Higher investment in human capital help to avoid the risk of depression of productivity performance. In Portugal the educational attainment of the working-age population is low and the intergenerational educational mobility has been sluggish. Furthermore, the international student performance survey (PISA) shows that Portuguese students are below the OECD average (figure 4). To increase efficiency, the smallest schools have been closed and changes to the teachers timetable are allowing a more efficient allocation of human resources. Moreover, upper-secondary education has been diversified to incorporate technical and vocational courses (OECD 2009). and 3). Portugal might take advantage of the temporary increase in spending under the recovery plan to promote a leap forward to new competitive green goods and technologies. There is a clear case for the world, and for the EU to maintain its leadership in the process, and even more so for a small country like Portugal, to address climate change and the financial crisis at the same time by building up a competitive basis for sustainable development (Torres, 2009, p.66). Activity collapsed at the end of 2008 under the weight of the global economic crisis. The huge decline in external demand was caused by the falling activity in a number of Portugals major export markets, particularly Spain which accounts for about 25% of portuguese total exports. Moreover, insufficient harmonization of regulations with major trading partners seem to have impeded trade, particularly in services. Despite the governments announcement of additional revenue measures the deterioration in economic activity without further reductions in government outlays, or a more rapid economic upturn, means that the budget deficit could rise above 4.5% in 2010 and to increase further in 2011. The deterioration in economic activity was partly caused by the administrative burdens on business. Starting, running, and closing a business have been hampered by onerous regulation, including a cumbersome licensing regime that has weakened competition and, thus, productivity growth throughout the economy (OECD, 2008, 2009a, 2009c; European Commission 2009). Figure 5 provides evidence that Portuguese burden on business in the form of regulation are higher than EU average. Productivity growth has been sluggish during the last decade, lagging behind the OECD average with a decreasing trend since 1990 (figure 6), partly on account of labour market rigidities such as high employment protection and insufficient human capital accumulation. Those weaknesses have led to a further widening of the large productivity gap with respect to the Eurozone. The protection of workers against individual dismissal has been the most restrictive in the OECD, with very cumbersome procedures, as clearly highlighted in figure 7. The new legislation put forward by the Portuguese government is aimed to significantly simplify dismissal procedures. However, protection of regular workers against dismissals will remain more restrictive than in the average OECD country. Therefore, it is essential to enforce the reform measures because tighter credit conditions, weak exports, and subdued internal demand depressed business investment in 2009 and led to a labour shedding and an increase in the unemployment rate which is projected to reach a double-digit rate in 2010 (OECD , 2008, 2009c; European Commission 2009). According to Blanchard (2007), Portugal is today in a scenario of Competitive disinflation, defined as a period of sustained high unemployment, leading to lower nominal wage growth until relative unit labor cost have decreased, competitiveness has improved, the current account deficit has decreased, and demand and output have recovered. If we look at the Real Effective Exchange Rate (REER) of a country, an instrument which can be used to assess price or cost competitiveness relative to the position of the countrys principal competitors, it is easy to notice that Portugal has substantially lost competitiveness against Germany since 1995 (figure 8). A rise in the index means a loss of competitiveness taking into account productivity changes via the movement in comparative unit costs (Hugh, 2009). Therefore, as this trend is going on since 15 years it is hard to invert it without huge efforts and structural reforms. In the context of the budgetary policy, in 2008, Portugal has also taken action to reduce taxes through the cut of one percentage point of the VAT rate, the creation of a general corporate income tax rate of 12,5% and the reduction of advance income tax payments for SME (State Budget, 2009). Nevertheless, the fiscal position has deteriorated significantly in 2009 reflecting weaker economic conditions, lower revenues and spending rises to support the economy. Fiscal stimulus measures focusing on public investment, support to companies and exports and social assistance will directly increase the budget deficit (OECD, 2009a, 2009b). Torres (2009, p. 65) argued that: In a small open economy like Portugal, fiscal policy has limited effectiveness with regard to influencing aggregate demand. This applies even more to the current environment of financial distress and uncertainty, where banks will try to de-leverage and households to save. Moreover, the Portuguese economy is already particularly exposed due to its fragile financial position, as reflected in its accumulated external imbalances, which puts at stake the markets confidence in the sustainability of public finances. Given the risks involved for the costs of servicing the debt and ultimately for its solvency and permanence in EMU, it seems essential for the government to credibly pre-commit to medium-term budgetary objectives. It thereby signals its determination to pursue fiscal consolidation in spite of the temporary stimulating measures adopted within the EERP and to ensure that those exceptional measures do not mark a departure from budgetary sustainability. Moreover, external debt has been high and rising (figure 9) and, thus, leading Portugal to become the third eurozone economy to undergo a long-term credit rating reduction, to AA minus, by Standard Poors because of its failure to tackle deteriorating public finances (Torres, 2009, p.64). Finally, last but not least, Portugal is undergoing a strong disinflation process which is highlighted by the fall of the Consumer Price Index to its minimum levels (figure 10). European Central Bank council member and Bank of Portugal Governor Vitor Constancio is aware of the danger and has indicated that the ECB is prepared to reduce borrowing costs further to prevent inflation slowing significantly below its 2 percent ceiling, even going so far, if necessary, as to introduce some variant of quantitative easing. He still thinks it wont happen, but he is well aware of the possibility, as indeed we all should be (Hugh, 2009, p. 21). To conclude, it is important to point out that the inflation is expected to be under the OECD average during the whole 2010 to catch-up with the OECD countries after 2011 (figure 11). Furthermore, the danger of the risk of disinflation is real as shown in figure 12, where the harmonized index of consumer prices is expected to remain below the ceiling of 2% during the whole projected period. Conclusions: What should be done? The policy responses analysis has highlighted serious structural problems for Portugal and, as a matter of fact, Portuguese growth is expected to lag behind the OECD average during the whole 2010 and 2011 (figure 13). SUM UP PROBLEMS In fact, despite Portugal has made significant progress in fiscal consolidation and has launched important structural reforms to modernize the economy and enhance growth, in my opinion, additional structural reforms, in order to find a way out from the crisis, are still necessary, notably, in the following areas: Education The secondary education attainment should be improved since human capital represents one of the main durable determinants of growth in the long run. Moreover, reforming the educational system might enhance productivity performance. According to OECD (2009c), the reform should increase the proportion of education spending on non-wage items, continue to strengthen teachers on the job-training and to develop vocational and technical education and, finally, Portugal should fully implement a performance-based evaluation and career-progression system for teachers. Employment One of the clearest examples of the problems highlighted by the crisis is to be found in the stagnation of the labour market. It is essential to reform employment protection legislation with proposals aimed at enhancing the adaptability of the labour force, to address rigidities in labour market regulations and improve the efficiency of active labour market programs; otherwise the strictness of the Portuguese employment protection will continue to have negative effects on growth and productivity (OECD 2009c). Moreover, the unemployment rate is expected to be higher than the OECD average during the next two years (figure 14). Concerning the slow productivity growth problem, Blanchard (2007, p.8-20) suggests a decrease in nominal wages. Even if it sounds exotic, it can substantially reduce the employment cost of the adjustment. However, in Portugal today, the labor law forbids unjustified wage decreases and in practice rules out decreases in nominal wages for economic reasons. Business A deepening of the reform process is required to create a dynamic business environment by reducing the administrative burdens on business. Despite the importance of the recent reforms, a full implementation of them is essential. Competition in the whole economy should also be strengthened through investment in key infrastructure sectors, such as telecommunications, electricity and transportation, to enhance the quality, efficiency and quantity of the services they provide. This would have a direct effect on the cost-competitiveness of firms in Portugal, facilitate trade flows, domestically and internationally and make Portugal a more attractive destination for FDI, which has the potential to boost productivity (). Finally, OECD (2009c) recommends to harmonize regulations with major trading partners, including service sector standards and qualification requirements. Tax system A reform is necessary to simplify the tax system, broaden the corporate tax base and decrease tax expenditures in order to reduce fiscal imbalances. Designing and implementing fiscal consolidation remains a priority for Portugal because the deficit needs to be reduced. Silva (2008) provides empirical evidence that, in Portugal, taxes negatively affect productivity because an increase in the taxes decreases consumption, capital, output and welfare. Moreover, he states that for Portugal taxes are able to predict the pattern of the labour supply over the years. Therefore, the government should take into consideration how a tax system reform might serve a double objective: raise the productivity and reduce fiscal imbalances. Nevertheless, à ¢Ã¢â€š ¬Ã‚ ¦ Table 3. Actual and projected Macroeconomic evolutions, 2001-2007. Source: OECD