Pocahontas Essays - Disneys Pocahontas, American Folklore

Pocahontas People today tend to scrutinize every aspect of anything that crosses the silver screen. The Disney company is always questioned on the reality of their films. Some see racism, bias, or ignorance toward history. Now for a cartoon that's supposed to entertain children, Disney does it the best. They do it so well that some argue that the people who criticize Disney are the one's who have the problem. But when Disney makes a film they have to keep one thing in mind when they do it. They have to understand that what they show to children those kids are going to see that, and except that as the truth. Take for example the movie Pocahontas by Disney. This is a film with many flaws that could eventually lead kids off the truth behind the real story of Pocahontas. Pocahontas was a real story with real people. By Disney taking that film and putting their own twist on it, they could lead an entire generation of kids away from what's true. Disney was wrong when they made the movie because what they showed wasn't the truth, and by taking history and changing it around is just unethical. Jaquelyn Kilpatrick tries to make that same point on an essay about relatively the same thing. Jaquelyn Kilpatrick states, "Instead of progress in depicting Native Americans, this film takes a step backwards ? a very dangerous step because it is so carefully glossed as ?authentic' and ?respectful'" (74). Kilpatrick points out that Pocahontas was supposed to be the most "PC" of all the Disney movies ever. But the backbone of her thesis is that it didn't pay attention to any of the facts about Pocahontas' life because it was so politically correct. She also argues, "For one thing, she was not a voluptuos young woman when she met John Smith but a ten- to twelve-year-old girl, and John Smith was a thirty-something mercenary who more resembled a brick than a blonde Adonis" (74). Disney not only clouded the story of a young girl who was kidnapped and raped by English settlers, but they even portrayed her looks totally wrong. "Besides her beautiful ?more Asian' eyes, he gave her a body with a wasp waist, sexy hips and legs, and breasts that are truly impressive" (76). She also went on to explain the misrepresentation of the English settlers. She points out " the English in the film are extremely one-dimensional in their bumbling greed" (76). Disney not all stereotyped all English as money hungry bandits, but they also stereotyped all Native American as ready to fall head over heels for the first white man who comes their way. Kilpatrick goes on saying "they changed her age, her body, and gave her a motive for her actions that boils down to going gaga over the first white man she sees" (74). But the one point that Kilpatrick stated over an over was that Disney changed the truth behind the story of Pocahontas. Pocahontas was changed to leave a smile on everyone's face. The story of Pocahontas wasn't a happy love story; it was a tragic story of a young girl. Pocahontas was a girl who was kidnapped and raped by the English settlers. She was then married to a tobacco planter named John Rolf and went to England, only to die of smallpox on the journey to return home. Personally, I agree with every point that Kilpatrick presented in her argument. The story of Pocahontas wasn't Disney's type story, but Disney turned it into one for the sake of money. Disney saw an open market for a Native American story, and they went for it sacrificing history for a dollar. Disney wanted to do something for a culture that has never been honored before, the Native Americans. But they did it in exchange for history. Native Americans where honored but not through the true story of Pocahontas. Pocahontas and Disney's Pocahontas are two different people. But in the eyes of children everywhere when they think of a Native American story they'll think of Disney's. It's a sad thing that something like a movie could change something like the real story of Pocahontas. Out there is a generation of kids who went to see a real good movie. But the movie that was supposed to be the truth really wasn't. The movie was something twisted and molded to satisfy an audience that wouldn't be happy with violence, and unattractive people. Kilpatrick made a point with this article. The point being that this

Convert Temperatures From Kelvin to Celsius

Convert Temperatures From Kelvin to Celsius Kelvin  and Celsius are two temperature scales. The size of the degree for each scale is the same magnitude, but the Kelvin scale starts at absolute zero (the lowest temperature theoretically attainable), while the Celsius scale sets its zero point at the triple point of water (the point at which water can exist in solid, liquid, or gaseous states, or 32.01 °F). Because Kelvin is an absolute scale, no degree symbol is used following a measurement. Otherwise, the two scales are alike. Converting between them only requires basic arithmetic. Key Takeaways: Kelvin to Celsius Temperature Conversion The equation to convert between Kelvin and Celsius is:  °C K - 273.15Celsius temperature have a degree symbol while those reported in Kelvin do not.While the size of the degree is the same between Kelvin and Celsius, there is no point at which the two scales are equal. A Celsius temperature will always be higher than Kelvin.Celsius temperatures can be negative. Kelvin goes down to absolute zero (no negative temperature). Conversion Formula Here is the formula to convert Kelvin into Celsius:  °C K - 273.15 All that is needed to convert Kelvin to Celsius is one simple step. Take your Kelvin temperature and subtract 273.15. Your answer will be in Celsius.  While there is no degree symbol for Kelvin, you need to add the symbol to report a Celsius temperature. Example How many degrees Celsius is 500K?  °C K - 273.15 °C 500 - 273.15 °C 226.85 ° For another example, convert normal body temperature from Kelvin to Celsius. Human body temperature is 310.15 K. Put the value into the equation to solve for degrees Celsius:  °C K - 273.15 °C 310.15 - 273.15human body temperature 37 °C Reverse Conversion: Celsius to Kelvin Similarly, its easy to convert a Celsius temperature to the Kelvin scale. You can either use the formula given above or use: K   Ã‚ °C 273.15 For example, convert the boiling point of water to Kelvin. The boiling point of water is 100 °C. Plug the value into the formula: K 100 273.15 (drop the degree)K 373.15 About Absolute Zero While typical temperatures experienced in daily life are often expressed in Celsius or Fahrenheit, many phenomena are described more easily using an absolute temperature scale. The Kelvin scale starts at absolute zero (the coldest temperature attainable) and is based on energy measurement (the movement of molecules). Kelvin in the international standard for scientific temperature measurement, and is used in many fields including astronomy and physics. While its perfectly normal to get negative values for Celsius temperature, the Kelvin scale only goes down to zero. 0K is also known as  absolute zero. It is the point at which no further heat can be removed from a system because there is no molecular movement, so there is no lower temperature possible. Similarly, this means the lowest possible Celsius temperature you can ever get is -273.15  °C. If you ever perform a calculation that gives you a value lower than that, its time to go back and check your work. You either have an error or else there is some other problem.

Free Essays on International Law Articles

Australia’s Prime Minister to act against terrorist neighbors On December 1, 2002 Australia’s Prime Minister John Howard said that he is prepared to act against any terrorists in neighboring Asian countries and that the international law and the U.N. Charter should be changed to empower nations to strike in defense against terrorists who plan to attack them. Today Australia has one of the most powerful militaries in its region, which include a modified air force and phenomenal Special Forces. The main reason for Howard’s comments come as Australians wait nervously and watch how Southeast Asian countries to its north deal with Islamic militants in the wake of the October 12th bombings on Indonesia’s resort island of Bali. The devastating attack left almost 200 people dead and close to half of them Australian tourists. The people that have been blamed for the terrorist attacks are none other than the al Qaeda group led by Jemaah Islamiyah. Dozens of members of the al Qaeda group have been arrested and jailed but many more are still believed to be operational. Since the attacks the Australian government has increased security measures at their embassies overseas and have warned the people of Australia that the terrorists may even attack Australia. Prime Minister Howard was quoted by Channel Nine news on Monday about why he feels empowered nations should strike back against terrorists who plan to attack them â€Å"It stands to reason that if you believe that somebody was going to launch an attack on your country, either of a conventional kind or a terrorist kind, and you had a capacity to stop it and there was no alternative other that to use that capacity, then of course you would have to use it.†(CNN News pg2). Howard’s comments this week brought about an immediate reaction in Jakarta. Indonesian foreign ministry spokesman Marti Natalegawa said Australia did not have the right to launch military strikes in other... Free Essays on International Law Articles Free Essays on International Law Articles Australia’s Prime Minister to act against terrorist neighbors On December 1, 2002 Australia’s Prime Minister John Howard said that he is prepared to act against any terrorists in neighboring Asian countries and that the international law and the U.N. Charter should be changed to empower nations to strike in defense against terrorists who plan to attack them. Today Australia has one of the most powerful militaries in its region, which include a modified air force and phenomenal Special Forces. The main reason for Howard’s comments come as Australians wait nervously and watch how Southeast Asian countries to its north deal with Islamic militants in the wake of the October 12th bombings on Indonesia’s resort island of Bali. The devastating attack left almost 200 people dead and close to half of them Australian tourists. The people that have been blamed for the terrorist attacks are none other than the al Qaeda group led by Jemaah Islamiyah. Dozens of members of the al Qaeda group have been arrested and jailed but many more are still believed to be operational. Since the attacks the Australian government has increased security measures at their embassies overseas and have warned the people of Australia that the terrorists may even attack Australia. Prime Minister Howard was quoted by Channel Nine news on Monday about why he feels empowered nations should strike back against terrorists who plan to attack them â€Å"It stands to reason that if you believe that somebody was going to launch an attack on your country, either of a conventional kind or a terrorist kind, and you had a capacity to stop it and there was no alternative other that to use that capacity, then of course you would have to use it.†(CNN News pg2). Howard’s comments this week brought about an immediate reaction in Jakarta. Indonesian foreign ministry spokesman Marti Natalegawa said Australia did not have the right to launch military strikes in other...

The Founding of the North Carolina Colony

The Founding of the North Carolina Colony The North Carolina colony was carved out of the Carolina province in 1729, but the history of the region begins during the Elizabethan period of the late 16th century and is closely tied up with the Virginia colony. The North Carolina colony is the direct result of British colonization efforts in the New World: it was also the place where the first English settlement was built and mysteriously disappeared. Fast Facts: North Carolina Colony Also Known As: Carolana, Province of Carolina (combined both South and North Carolina)Named After: King Charles I of Britain (1600–1649)Founding Year: 1587 (founding of Roanoke), 1663 (official)Founding Country: England; Virginia ColonyFirst Known Permanent European Settlement: ~1648Residential Native Communities: Eno (Oenochs or Occoneechi), Chesapeake, Secotan, Weapemeoc, Croatons, among othersFounders: Nathaniel Batts and other colonists from VirginiaImportant People: The Lord Proprietors, King Charles II, John Yeamans Roanoke The first European settlement in what is today North Carolina- indeed, the first English settlement in the New World- was the lost colony of Roanoke, founded by the English explorer and poet Walter Raleigh in 1587. On July 22nd of that year, John White and 121 settlers came to Roanoke Island in present-day Dare County. The first English person born in North America was settler John Whites granddaughter Virginia Dare (born to Elenora White and her husband Ananias Dare on August 18, 1587). John White returned to England shortly after its founding, and apparently, the colonists also left the area. When White returned in 1590, all the colonists on Roanoke Island were gone. There were only two clues left: the word Croatoan that had been carved on a post in the fort along with the letters Cro carved on a tree. Although much archaeological and historical research has been attempted, no one has yet discovered what actually happened to the settlers, and Roanoke is called The Lost Colony. Albemarle Settlements   By the late 16th century, Elizabethans Thomas Hariot (1516–1621) and Richard Hakluyt (1530–1591) were writing accounts of the Chesapeake Bay area exhorting the beauties of the New World. (Hariot visited the region in 1585–1586, but Hakluyt never actually made it to North America.) The mouth of the bay opens up at the northeastern corner of what is today North Carolina. In an attempt to discover what had happened to his colony, Walter Raleigh sent several expeditions out of his Virginia colony at Jamestown into the region.   The first charter to include North Carolina included part of Albemarle County and was given by Charles I to Robert Heath, the kings attorney general in 1629. That parcel, from Albemarle sound to Florida, was named Carolana after Charles I. Although there were repeated efforts to establish colonies, they all failed until 1648, when Virginians Henry Plumpton of Nansemond County and Thomas Tuke of the Isle of Wight County purchased a tract of land from the local Native Americans.   First European Settlement The first successful settlement of what became the North Carolina colony likely dates to around 1648, by Plumpton and Tuke. A 1657 map of the region between the Chowan and Roanoke Rivers illustrates Batts house, but it probably represents a small community perhaps including Plumpton and Tuke, not just Batts. Captain Nathaniel Batts was a wealthy man, know to some as the Governor of Roan-oak. Other Virginians moved in over the next decade or so, either purchasing land from the residential Native Americans- Chesapeake, Secotan, Weapemeoc, and Croatons among others- or obtaining grants from Virginia. Official Founding The Carolina Province, including what are today North and South Carolina, was finally officially founded in 1663 when King Charles II recognized the efforts of eight noblemen who helped him regain the throne in England by giving them the Province of Carolina. The eight men were known as the Lord Proprietors: John Berkeley (1st Baron Berkeley of Stratton); Sir William Berkeley (Governor of Virginia); George Carteret (Governor of Jersey in Britain); John Colleton (soldier and nobleman); Anthony Ashley Cooper (1st Earl of Shaftsbury); William Craven (1st Earl of Craven); Edward Hyde (1st Earl of Clarendon); and George Monck (1st Duke of Albemarle). The Lord Proprietors named the colony in honor of their king. The area they were given included the area of present-day North and South Carolina.  In 1665, John Yeamans created a settlement in North Carolina on the Cape Fear River, near present-day Wilmington. Charles Town was named the main seat of government in 1670.  However, internal problems arose in the colony, leading the Lord Proprietors to sell their interests in the colony. The crown took over the colony and formed both North and  South Carolina  out of it in 1729. North Carolina and the American Revolution The colonists in North Carolina were a disparate group, which often led to internal problems and disputes. However, they were also heavily involved in the reaction to British taxation. Their resistance to the Stamp Act  helped prevent that acts implementation and led to the rise of the Sons of Liberty.   These irascible colonists were also  one of the last hold outs to ratify the Constitution- after it had already gone into effect and the government had been established. Sources and Further Reading Anderson, Jean Bradley. Durham County: A History of Durham County, North Carolina, 2nd ed. Durham: Duke University Press, 2011.Butler, Lindley S. The Early Settlement of Carolina: Virginias Southern Frontier. The Virginia Magazine of History and Biography 79.1 (1971): 20–28. Print.Crow, Jeffrey J. and Larry E. Tise (eds.). Writing North Carolina History. Raleigh: University of North Carolina Press Books, 2017.  Cumming, W. P. The Earliest Permanent Settlement in Carolina. The American Historical Review 45.1 (1939): 82–89. Print.Miller, Lee. Roanoke: Solving the Mystery of the Lost Colony. Arcade Publishing, 2001Parramore, Thomas C. The Lost Colony Found: A Documentary Perspective. The North Carolina Historical Review 78.1 (2001): 67–83. Print.

Rebecca Essay Example | Topics and Well Written Essays - 1000 words

Rebecca - Essay Example Sometimes, a good performance is able to give a solid ground for further reflection on some notions, the raise of awareness regarding their meanings and consequences and changes of person’s attitude. One of the most attended by celebrities show that is often criticized regarding its appropriateness and positive impact on young viewers is the extremely famous Broadway performance created by Jeff Marx and Robert Lopez that is called Avenue Q. The show represents a courageous decision of its creators to use puppets that dance and sing about the problems of unemployment, racial segregation, pornography, sexual preferences and others. It is important to stress that a profession of puppeteer is not very popular nowadays; therefore, due to the unconventional format of the performance, the show has managed to receive increased attention among critics. Despite the coverage of rather frank and piquant topics, Avenue Q is considered to be extremely realistic, educational and arresting. S tarting from 2003, the show had won numerous prestigious awards, including Drama Desk Award, Tony Award, Theatre World Award and even Grammy. The success and popularity of the show has also been supplemented and influenced by attendance of such world celebrities as Hilary Swank, Tom Hanks, Danny DeVito, Janet Jackson, Martin Lawrence, David Schimmer, Tony Shalhoub and many others. The performance resembles the scenic adaptation of childish TV series â€Å"Sesame Street†, whose main characters experience strong emotions and solve mature and serious problems. The authors made a successful attempt to create a musical first of all for grown-ups but with a clear emphasis on its instructive function ensured for young audience. The show tells a story about a guy named Princeton who has recently graduated from college and whose plans for the future are full of hopes and dreams. However, reflecting over his position displayed in the song â€Å"What Do You Do with a B.A. in Englishâ⠂¬ , the hero realizes that received education does not guarantee stability and reliable perspectives in his life. Being anticipated and inspired by positive changes, Princeton moves to New York but the only place where he can find an affordable apartment turns out to be the Avenue Q. There, he makes acquaintances with new friends who also try to get by in exhausting megalopolis. Sharing own experiences and feelings, they all strive to find a proper job, realize their life goal and most importantly find the true love. All characters are fascinating; they manage to captivate audience with their versatility and uniqueness. At the same time, the story of each hero is quite plain and trivial which also helps viewers to feel the reality of presented events. For example, moving to a new apartment, Princeton is introduced to such characters as the teaching assistant Kate Monster; the recently fired comedian Brian; his fiancee Christmas Eve, a therapists who has trouble with finding at lea st one patient; Trekkie Monster, a guy who day after day spends online watching porn videos; the house manager, Gary Coleman whose image has been created as an imitation and parody of American actor known by his roles in sitcoms; Lucy the slut and others (Avenue Q). The Avenue Q community consists of ten characters and only three of them are human beings meanwhile

Penal System Assignment Example | Topics and Well Written Essays - 750 words

Penal System - Assignment Example The prisoners in state prisons have committed white collar crimes or what can be termed as â€Å"petty† crimes such as robbery compared to the crimes of the prisoners in supermax prisons (Lawrence and Mears, 2004). They have minimal sentences of just a few years after which they will be released back to society. Their rehabilitation is therefore important to prepare them to survive accordingly once released. For those in supermax prisons however, they will never move back to society again and hence it is not important to rehabilitate them as they would not need it anyway. What is the whole point of offering them educational, correctional or even vocational programs similar to what is offered to inmates in state prisons when they will not have an opportunity to put the programs into practice? Hershberger also raises an important issue about the safety of the guards dealing with the prisoners in supermax prisons. They are dealing with the categorized worst criminals in history and hence they have to be protected. Their protection is guaranteed by having the prisoners locked up 23 hours every day with their freedom restricted as much as possible (Hershberger, 1998). Even though it seems unfair to the prisoners in supermax prisons to have to live such a life, I have to state that it is in the best interest of everyone to have them locked up that much, have their freedom restricted and even be punished. They committed crimes that cannot even be mentioned and hence should not be accorded any niceties at all (Mears and Watson, 2006). I do not see any point in the state or federal government wasting their resources in rehabilitating these criminals. The money they spend on their security and food is enough already. This may seem inhumane but remember they have done inhumane acts in order to land in the supermax prisons. Sinden raises very crucial points in the issue of privatizing the prisons in the US. The issue may have worked with the educational system and

Risk Management Bachelor Essay Example | Topics and Well Written Essays - 2750 words

Risk Management Bachelor - Essay Example (European Airline industry-strategies for the new Millenium-sky Tech Solutions accessed from the website www.skytechsolutions.com and Global Market Forecast, The future of flying, 2006-2025, (2006), November, Accessed from the website www.airbus.com). Now it has been evident that aviation market in Europe has been increasing especially for low-cost carriers and therefore our airlines Blue Star will be started as soon as possible to take the advantage of booming air travel market. The proposed airlines "Blue Star" is willing to start operations from Vienna (Austria), whose location is more central to Eastern Europe and have the potential to cover Baltic nations (Estonia, Latvia & Lithuania), Poland, Czech & Slovakia, Hungary, Italy, Croatia, Germany etc. The next important fact that founding partners of the Airlines are from three nationalities and around 45 years of age with 15 years of experience in managing an airlines which will prove successful in the long run. Another important fact that airline is starting with 10 same size/carrying capacity and most probably the same type of planes. It becomes easy to handle / upkeep the same type of plans for pilots and other staffs. It any reduce turnaround time and reduce maintenance expenses and training costs. An important fact in starting Blue star is that it is leasing those airports and concentrating on those destinations which are not expensive due to their landing fee or heavy traffic and where national carriers make competition more intense. The most important fact that airlines proposed that its starting capital of $ 100 million consists of only 50% from borrowing in which bank borrowing/short term is only $ 25 million and rest 25% is through long-term bonds. By adopting this method, airline ensures that instant debt-service has to be kept at minimum. These are the above five important facts, which Blue star kept in its mind to start with and will prove to be successful in the long run. The next important step is to choose the first 10 destinations, where the passengers' flow is maximum and risk of bad weather; security or political stability is at minimum. In Europe Most of the airlines are trying to operate in the east. Due to integration of Europe, Vienna is the place / hub for most of the airlines in central Europe joining West Europe and Eastern Europe. The Baltic nations, Russia, Ukraine and Belarus are the new found destinations where low-cost airlines trying to reach out. Most of the passengers from Western Europe are (Businessman) moving in the Eastern Europe market exploring new opportunities where as persons living in Eastern Europe moving Western Europe to find new job oppourtunities. So Blue star has to choose its all the ten destinations keeping in mind the passenger's availability. Three Baltic nations are at first place. They have to start with three airports namely Parnu in the Estonia, Liepaja in Latvia and Kaunas in Lithuania. In choosing the thre e airports we had not taken the respective countries main airports i.e. Tallinum, Riga and vilnius due to airline policy to lease those airports have low leasing costs and potential competition from major carriers as well as more waiting time.

Managing Creativity and Change Essay Example | Topics and Well Written Essays - 2000 words

Managing Creativity and Change - Essay Example The pyramid scheme structure looks reflects the organization of authority. The hierarchical organization structure is common in both the public and private sectors. In a typical private organization or public institution, departmental heads, as well as, unit managers report directly the general managers or the vice presidents, who in turn report to the president (Marlow, 2011). In small businesses, the layers are lesser than the layers in the large organizations. Although hierarchical organizational structures may be effective as far as managing thousands of employees is concerned, they have numerous weaknesses, which will result in them being less evident in the future. In today’s business world, the level of competition in every industry is growing rapidly. One of the key factors behind the ever-increasing competition is the fact that globalization is ever increasing. In other words, the ever-increasing interconnectedness has substantially contributed to the rapidly increasi ng competition. Companies are spreading their operations outside the local borders to take advantage of new markets. Another key reason why countries are going global is to take advantage of the hap labor especially in the emerging markets including China, India, and Brazil among other emerging economies. Firms that are taking advantage of the cheap labor in today’s competitive world are enhancing their competitiveness. Production using cheap labor translates into competitive prices for the goods and services. Therefore, for all the global organizations that have shifted some of their operations to some of the cheap labor economies are becoming more competitive. This is because they are able to supply their goods and services at competitive prices in both the local and international markets (Dutz, 2011). The global economy has significantly changed in many ways. Countries are more dependent on each other than ever before. The world has become a global village and an external effect on a single major economy or region has direct, as well as, indirect effect on the global economy. For example, a major economic outcome in the U.S. could positively or, negatively affect the whole world. This is because of the increased interconnectedness and dependence amongst nations. If there were an economic boom within the U.S., other countries including the small ones would benefit from the high demand of goods and services in the world’s largest economy. On the other hand, a recession in the world’s largest economy could adversely affect the rest of the world. For example, following the 2007/2008 global financial crisis, the poor economic state in the U.S. affected the entire global economy (Ofd.ncsu.edu, 2013). The world’s economy is shifting from hierarchical organization structures to flat organization structures. The expectations amongst employees are different under the tall and the flat structures. For example, under the hierarchical structu res, employees feel that they have a job security. This is because of the fact that this type of organizational structure is present in large organizations, which have attained a higher level of stability. In these organizations, the level of innovation is lower, compared to organizations that embrace flat structures. This is because of the fact that the senior high-level management keeps a close eye to the employees. In other words, there is more

Surrealism in fashion design Essay Example | Topics and Well Written Essays - 10000 words

Surrealism in fashion design - Essay Example The essay "Surrealism in fashion design" focuses on the connection between fashion design and surrealism. Fashion design is highly commercialized to the extent that many innovative approaches have been tried to finally come up with the right and ‘in’ thing. The ever changing trends in fashion design just proves the fact that everyone is constantly searching for style and that everyone cannot just stand on a single taste about a certain product. Therefore, there is an urgency to innovate or even make use of what is already at hand to come up with a synchrony on the product’s choice and consumers’ taste, style, needs and wants. Back to the amount of effort one has to place on the ever changing trend of fashion design, there is a need to find out the level at which the look and content of fashion design is very significant in the conceptualization of a certain product in line with fashion. This will ensure that the right concept of a certain product will be es tablished so as to align with majority of customers’ choice. Little connection was there between art and fashion design before. Not until the emergence of surrealism works by Salvador Dali, Elsa Schiaparelli and John Galliano which are integrated nowadays with fashion design. Surrealism has come into existence and bringing the name with it as an art form. Today, surrealism designs are integrated in fashion design and the harmony that this brings is remarkable that until now, acceptance in the market is of high significance.

Application for a Loan Essay Example for Free

Application for a Loan Essay Briar Forest University is the dream project of Mr. Gary Cooper, M. A. PhD, a permanent resident of Briar Forest and a budding educationist who wishes to set up a University at Briar Forest for the following reasons: 1. A full-fledged university is long overdue in Briar Forest; 2. There is a growing global market for a full-fledged university; 3. Mr. Cooper owns a sizable land free from any encumbrances and appropriate in size for a full-fledged university; 4. Mr. Cooper has U. S. $1. 00 million to invest for the project; 5. Mr. Cooper has a dream to set up a university with true global environment, which would produce a new breed of prejudice-free and enlightened individuals, who would reflect a well-comprehended approach and attitude towards life, and thus would lead the society from the front. 6. He has weighed every detail on the prospect of this proposed venture with an appropriate team; 7. He has found his dream aligns with reality. Thus, the salient features of the proposed project have been placed below, before concluding on an approbatory note. Guiding Theme Mr. Cooper, PhD, has already earned a name in the field of Eastern Philosophy. It was in his internship days, he was greatly moved by a particular saying of the great Indian Philosopher, Swami Vivekananda; Education is the manifestation of perfection, which is already in humans. Since then he started dreaming on setting up a university which will cater to the society with a new breed of enlightened individuals who would be free from all prejudices and reflect a well-comprehended approach and attitude towards life. Thus he has chosen the above-mentioned saying of Swami Vivekananda as the guiding theme of the project. USP of the Project: There is no full fledged university in Briar Forest, in spite of being one of the significant hubs of trade and commerce in the area, where a huge population of local youth has to pursue their education outside the area, while the young executives who seek an MBA degree, are found to be avoiding any resident jobs here, due to the absence of a university that offers MBA program. Add to that, the new tax policy of the government has provided a huge scope for the prospective foreign student from all across the globe. Thus, primarily the USP of this project lies in its proposed placement, i. e. , Briar Forest. Proposed Educational Programs The university intends to introduce three major segments, like Undergraduate, Post Graduate and Professional courses, with conventional streams and respective subjects under them, under the provisions of the Education Council. Phases of Expense The one-time expenses involve the construction of the campus with strategically placed buildings and boundary, office equipments, vehicles for conveyance, digital communication and security systems, water and sanitary systems, fire-fighting systems, environment protection systems and beautification of the campus. Out of these, the primary focus has been placed on the construction of the buildings. A basic plan towards that is thus placed below: Types of Buildings: a. Main Buildings: These would house the main academic activity and students accommodation with appropriate space for administrative segments and adequate openings to facilitate the anticipated proceedings. Keeping in tune with the survey on the anticipated number of students, the foundations of these buildings would be empowered with 6-story capacity, where the floor-height according to the norms would be kept around 15 meters. The recommended FAR (Floor Area Ratio) apropos the anticipated proceedings stands as 1:3. The architectural design chosen for the project owes more to the European Renaissance period to create the vintage aura of old academic institutions, b. Annexes Buildings: They would hold purely administrative offices with Senate halls for executive meetings. These buildings would be two storied, though their foundation would have the provision for future extension of two more stories. The recommended FAR here stands at 1:2. Proposed architecture for these buildings contains a mixture of post-modern and present European mould for exteriors and interiors respectively, so that the exteriors wouldnt stand in stark contrast of the main buildings in spite of the absence of the frills, while the interiors would facilitate the modern style of office system. c. Supplementary Buildings: Canteens, Cyber Cafe, Plant and car shades around enclosures, fire-fighting or server stations, staff-quarters, etc. belong to this segment. While the Canteen, staff quarters and cyber cafe would be two storied provisioned with two more stories, the rest would be single storied, all with recommendations of post-modern exterior and modern interior. Placement of Buildings The main buildings would be clustered in the middle with equal division of the annex buildings among them, together facilitating the central quadrangle easily approachable from any side. Phases of Project The proposed project has been divided into two phases: One, the Kick-off phase and two Final phase. The kick-off phase would comprise two main buildings, one for student accommodation and the other for academic activities. Both of them at present would be complete with just two floors. These two buildings would have one annex building at their side, with Canteen or security establishments. Final phase would start right after the commencement of sessions in the Kick-off phase. Estimated Cost The cost of Kick-off phase has been estimated at U. S. $2. 75 million with U. S. $. 75 million as the caution money to meet the exigencies. Recovery of Investment The campaign conduced by the appointed professionals to prepare a list of the prospective investors, had brought in the names of 125 such persons. Out of that, Mr. Cooper has been able to finalize the master list of 85 persons who finally have signed the Memorandum of Understanding (MoU) with Mr. Cooper, wherein they would provide a joint fund of U. S. $12 million, on the inaugural day of the Kick-off phase. This serves as the guarantee for the recovery of the loan from any bank. An independent body of trustees, who would clear the EMIs of the bank through an automated process, would handle the said fund. While it has been decided by the Board of Aids that the loaned amount would be paid through 60 EMIs, the targeted period of the Kick-off phase has been fixed as two years from the date of commencement of the project. This augurs the beginning of the academic sessions right from the third year of the project – which would also add money to the proposed joint funding of the 85 partners of the Final phase. On the other hand, the estimated cost of the Final phase along with a caution money in tune of 10% stands at 8.8 million – a realistic situation which further guarantees the recovery of the bank loan of U. S. $2. 00 million from the remaining U. S. $3. 2 million in the Final Phase fund. Degrees to be Offered As like any contemporary university working with the guidelines of National Education Council, this university would introduce its courses in alignment with that, which would include Arts, Humanities, Social Sciences, Physical Sciences, Technology and Management, along with other regular degrees in Biological, Medical and Veterinary Sciences. To cater the growing demand of MBA course, the university would introduce the same right from its Kick-off phase, which will later be followed by extended courses like Global Summer Schools, Executive Education, or the Entrepreneurship courses, once the other Final Phase is completed. Faculty Selection The board of governors would handpick the professors and other staff through a stringent guideline, aligned with the theme of the proposed university. Induction of the Guiding Theme With a view to create a new breed of enlightened individuals who would be free from all prejudices and reflect a well-comprehended approach and attitude towards life, there would be a parallel indirect education that would be imparted in this proposed university – which would imbibe the universally recognized Values and Ethics in the students and would made them both mentally and physically equipped to lead the world – which is the ultimate dream of Mr. Gary Cooper, the founder and director of this project. CONCLUSION Judging from all angles, the proposed project definitely looks like a risk-free, profiteering venture for all its prospective parties, mostly due to its unique financial planning. Alongside, this project would surely cater the long-standing need of the proposed region, besides the growing overseas demand for higher education. The location of this project surely serves its USP (Unique Selling Proposition), while the guiding theme of it will surely add a useful dimension to the main curricula.

An introduction to the Nestle Company

An introduction to the Nestle Company Nestle was founded in 1866 by Henri Nestle with headquarters in Vevey, Switzerland. It has employed around 250,000 people and has factories or operations in almost every country in the world. It is one of the worlds biggest food and Beverage Companies. The Companys priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives. 1.1: PURPOSE OF RESEARCH The study of the research is to find the variable which has leads towards conflicts in Nestle Organization. The main purpose of the research is, firstly, to identify the causes of conflicts in Nestle and, secondly, to manage conflicts in Nestle organization. This report will be helpful for students who want to conduct a research as well as the company improving or solving the problems. 1.2: BACK GROUND OF THE STUDY All of us experience some type of conflicts in our daily lives. Tensions, antagonisms, and frustrations always occur when people work together. There are disagreements, perhaps even fights, between employees and the supervisor or between co-workers. Aside from personality clashes, people simply have different viewpoints about the way things should be done. The main purpose of conducting the research is to find out the conflicts, and finding the ways to manage and solve them in an organisation. In this context we have got the opportunity to conduct our research on one of the top organizations (Nestle). 1.3: DEFINITION OF CONFLICT Conflict is defined as the state of discord caused by perceived or actual opposition of needs, interests and values. A conflict can be internal or external. The concept of conflict can help to explain many social aspects of life such as social disagreement, fights between individuals, groups, or organizations and conflict of interests. Conflict as taught for graduate and professional work in conflict resolution which is defined as when two or more parties, with perceived incompatible goals, seek to undermine each others goal-seeking capability. However, conflict can also occur in cooperative situations, in which two or more individuals or parties have consistent goals, because the manner in which individuals or party tries to reach their goal can still undermine the other individuals or party. 1.4: NATURE OF CONFLICT Conflict may constructively be viewed as resulting from differing belief systems, varied perspectives on the situation and values resulting from participants accumulated life experience and conditioning, differing interests and objectives. Effectively dealing with conflict requires the expression and management of participants varying interests, belief systems, perspectives and values. Through the integration of participants perspectives, belief systems, interests and values, conflict and conflict resolution play important roles in individual and social evolution and development. Conflict arises when one or more participants view the current system as not working. At least one party is adequately unhappy with the position, that they are willing to own the conflict and speak with the hope of being able to influence the situation to arrive at an improved condition. Conflict may be sight as a process we put ourselves through to attain a new condition and self definition. Through conflict we have opportunities to be artistically self-defining. If nothing else, conflict allows us in future to do things differently. Through the resolution of conflict, we can evolve and redefine ourselves, our community, our relationships our society and our world. 1.5: LEVELS OF CONFLICT 1.5.0: Inter divisional conflict Inter divisional conflicts exists between the perceiver and another individual within the organization. Although the other person does not need to be aware of the conflict, the perceiver of the conflict situation recognizes the present or future impact conflict can have on job performance. 1.5.1: Intra group conflict Intra group conflicts occur between perceiver and his or her immediate group within the organization. The immediate group can consist of work team, department or union. Whether fully or only superficially aware of the conflict issue, the perceiver realizes that the conflict can directly or indirectly affect job performance. 1.5.2: Inter group conflict It arises between the perceivers immediate group and another group within the organization. Again, the perceivers involvement may not be critical, but he or she must be aware of the situation and the potential impact the conflict can have on work performance. 1.5.3: Organizational conflict Organizational conflict is a state of disagreement caused by the actual or perceived opposition of needs, values and interests between people working together. 1.6: TYPES OF CONFLICT A conceptual conflict can rise into a verbal exchange or result in fighting.Conflict can exist at a variety of types. These are Community conflict Diplomatic conflict Emotional conflict Environmental resources conflict Group conflict Ideological conflict Interpersonal conflict Inter-societal conflict Intrapersonal conflict Organizational conflict Religious-based conflict and Workplace conflict . 1.7: CAUSES OF CONFLICTS 1.7.0: Authority relationship Authority Relationship conflicts occur because of the existence of strong pessimistic emotions, misperceptions or stereotypes, poor communication or miscommunication, or repetitive negative behaviors. Authority relationship problems often increase disputes and lead to an unnecessary rising spiral of destructive conflict. Supporting the secure and balanced expression of perspectives and emotions for acknowledgment (not agreement) is one effective approach to managing relational conflict. 1.7.1: Management style For any organization to be effectual and efficient in achieving its goals, the people in the organisation need to have a common vision of what they are determined to achieve, as well as clear objectives for each individual, group/ team and department. Management style also needs ways of recognizing and resolving conflict between people, so that conflict does not become so serious that collaboration becomes impossible. The management of any organisation needs to have ways of keeping conflict to a minimum and of solving problems caused by conflict, before conflict becomes a major obstruction to work. Management style helps to avoid conflict where probable and organizing to resolve conflict where it does happen, as rapidly and smoothly as possible. 1.7.2: Communication barriers: Conflict will be greater when barriers to communication exist. If parties are separated from each other physically or by time e.g.; the day shift versus the night shift-the opportunity for conflict is increased. To illustrate suppose a company employs only one plant supervisor, who works the day shift and leaves orders at the beginning of each week for the workers on the night shift. By the end of the week, how ever, these orders have been only partially carried out. The supervisor cannot figure out why. Obviously, the supervisor absence from the night shift has posed a communication barrier, which in turn causes decreased output. As Bryans, P, Cronin argued in 1984 that Space or time separations could promote isolated group interests rather than advance a common effort towards joint goals. 1.7.3: Personal factors 1.7.3.0: Behavioral The way emotional experience gets expressed which can be verbal or non-verbal and intentional or un-intentional. 1.7.3.1: Physiological Its defined as the bodily experience of emotion. The way emotions make us feel in comparison to our identity. 1.7.3.2: Cultural values Culture tells people who are a part of it, Which emotions ought to be expressed in particular situations and what emotions are to be felt. 1.7.3.3: Physical This escalation results from anger or frustration. 1.7.3.4: Verbal This escalation results from negative perceptions of the annoyers character. 1.8: WAYS OF ADRESSING CONFLICTS There are basically five ways of addressing conflicts which were identified by Thomas and Kilman in 1976. These are 1.8.0: AHYPERLINK http://en.wikipedia.org/wiki/Accommodationccommodation Ones party surrenders its own needs and wishes to accommodate the other party. 1.8.1: AHYPERLINK http://en.wikipedia.org/wiki/Avoidance_(conflict)voidance Avoid conflict by ignoring it, changing the subject, etc. As an expedient means of dealing with very minor, non-recurring conflicts or Avoidance can be useful as a temporary measure to buy time. In many cases, conflict avoidance involves severing a relationship. 1.8.2: CHYPERLINK http://en.wikipedia.org/wiki/Collaborationollaboration Working together can find a mutually beneficial solution. Collaboration can also be inappropriate and time-intensive. When there is not enough respect, trust or communication among participants for collaboration to occur. 1.8.3: CHYPERLINK http://en.wikipedia.org/wiki/Compromiseompromise Finding a centre point where each party is partially satisfied. 1.8.4: CHYPERLINK http://en.wikipedia.org/wiki/Competitionompetition Take the ones point of view at the potential expense of another. It can be more useful when achieving the ones objectives outweighs ones concern for the relationship CHAPTER # 2 2.0: LITERATURE REVIEW Different researchers have published their reviews on conflicts in the organization. We are viewing two best reviews of the researchers articles. Mr. Philips in 1982 threw light on some of key conditions, which may lead to serious organizational conflicts; he gave his views in the book named as Community in Organization. According to M Phillips certain social relationships characterized various kinds of conflict behavior. Each one could occur in your work area. The more aware the managers are of these conflict settings, the better are the chances of correcting them and running a smooth operation. Mr. Philip identified communication as problem in his research. The causes of conflicts are structural factors, authority relationships, common resources, goal differences interdependence, jurisdictional ambiguities, specialization, status-inconsistencies, personal factors, communication, conflict management style, cultural differences, emotions, perception, personalities, skills and abilities, values and ethics. According to the researcher, possible solution; it is obvious that a perfect communication system is unlikely. But also per fection like rationality will not be achieved; organizations do have mechanism by which they can attempt the communication system as clear as they can. Philips also suggested that there are such devices available which can reduce the distortion and complications in communication process and suggested that communication recipients should be aware of the biases of the message senders and protect their own counter biases as protection devices. James M Leif John M Penrose in 1997 in the book Business Strategies Skills 5th Edition explained the nature of organizational conflicts identify the causes of conflicts i.e. Structural Factors, Common Resources , Goal Differences , Interdependence ,    Jurisdictional Ambiguities, Inconsistencies ,Personal Factors Communication barriers, Conflict management style ,Cultural differences ,Emotions Perception, Personalities, Skills and abilities, Values and Ethics, Behavioral and Physiological Cognitive. The researchers says that it is possible to avoid conflict by having mechanism such as voting to make decision without the disagreement of consensus. They also find that behavioral regulation fail to match the individual need of employee, conflict is bound to occur. In 1995 B R Siwal in his research Resolution Strategies to Conflict describes that conflict is a necessary and integral part of effective problem solving and realistic discussions. It is core sound of decision making because disagreement is the best vehicle for enlargement the perspective, discovering alternatives, and motivating creative interaction among each member. The effects of disagreement, though, depend on how it is administer by team members. Conflict can be integrative and constructive or it can be distributive and disruptive. When mismanagement occur, conflict can demolish team effectiveness, when handled well it can deeply enhance the quality of team work and make members sense proud of their work in the team. Training in the nature of conflict and the ways of managing it is an imperative need of all the people who participates in problem solving groups, such as those that make up work teams. The negative association of conflicts wants to be dispelled and substitute with more practical conceptions that made the justifiable distinction between disruptive and constructive conflict. When team members see that conflict can be a positive strength in conversation, they are better prepared to take up effective proposal attitudes and behaviors in trouble solving situations. Further more the differences between integrative and distributive conflict can help them learn how their own behavior contributes to the atmosphere of the team which they belong. Davor Dujak in 2008 describes in his research that in every organization conflict encounters on a daily basis. The conflict cannot be avoided but it is probable to mange them in a way that we identify them on time. It is essential to constantly track the organizational signals which position to their existence. If Organization does not respond accordingly, this can lead to the condition that conflict itself manages the organization. One of the more important determinants of productivity, performance and efficiency and finally the job satisfaction is also the conflict as an independent variable of organizational behavior. By systematic research of organizational behavior we want to make a positive influence on the dependents variables, but first we have to realize and get a good approaching to the individual elements of organizational behavior. In 2004 Melanie Lewis describes in her research that if conflict managed poorly or avoided, it can be very costly to an organization. If managed well, conflict presents an opportunity to uncover significance and promote a healthy work place. Many organizations are finding that their conflicts management systems have been good by financial investments, generating a healthy return. In additional they are recognizing the value of many less substantial benefits (lower turnover, increased efficiencies, improved morale and improve public relations). A precise four phased process assessment, design, implementation, operation and evaluation helps organizations design effective conflict management systems to gather the maximum benefit of conflict system. Moreover this four phased approach strongly encourages the team actually to seek to understand and incorporate the needs and interests of all affected constituency, and creates an environment in which the benefits of the system can be effecti vely communicated, implemented and administered. In 2010 De Dreu C.K describes in his research that conflict is a multidimensional with both relationship and task forms. Hence it is expected that if they change the managing type of conflicts, it will plays an important role in organizational performance. While if organization did not manage good, the conflict will plays a negative role. However the researcher discussed only two types of conflicts in his research namely affective and task conflict in order to play better role in organizational performance. After studying the reviews of different researchers, we will take help from different researches but our group decided that we will follow the research of M Philip because they dictate information about factors which are important for identifying conflicts and understanding the meaning of conflict and how it influences the organizations internal environment in solving problems. CHAPTER # 3 RESEARCH METHODOLOGY 3.0: Research type: The type of research that we are conducting is applied research because it is conducted for a particular organization. Applied research is practical applicability of research tools on a particular organizational situation. 3.1: data collection We will be collecting our data by using two sources which are as follows. 3.1.0: Primary data Our primary data is collected through conducting interviews and designed questionnaires from directors, managers and employees of Nestle. 3.1.1: Secondary data The secondary data is collected from past records of Nestle and books along with business articles to support our recommendations and suggestions. 3.2: Sample size During this survey we have taken responses from a Sample size of 30 which is further divided into two groups. We also conducted survey from 10 managers and 20 employees. The sampling type that we used is non random sampling technique because we want to get information from every third employee and manager of Nestle organization. Our survey is in questionnaire and interview form, so our questionnaires consist of open ended and close ended questions. We have conducted unstructured interviews, asked from the respondents to get more information. CHAPTER # 4 ANALYSIS 4.0: INTRODUCTION TO DATA ANALYSIS Data analysis is a practice in which the raw data is ordered and organized in order to extract useful information from it. The process of organizing and thinking about data is the key to understand what the data does and does not contain. There are varieties of ways in which people can approach data analysis, and it is infamously easy to manipulate data during the analysis phase to push certain conclusions. There are different methods for analyzing the data for example surveys, charts, frequency tables, graphs and personal observations etc. 4.1: ANALYSING FOR CORRECTION OF DATA We had conducted unstructured interviews for analyzing of questionnaires which we had made for collecting data from employees and managers to check whether the answers given by them are right or wrong. We had found no matches; the interview opposes the answers given by them in questionnaires. We have analyzed our data through frequency tables and bar charts. 4.2: FREQUENCY TABLE Frequency table is one of the important concepts in mathematical statistics and a good analyzing tool. A table divided into cells by category with counts for each category in each cell. It is a kind of display of a given data, in which the frequency of each data item is found. The frequency of a data item is the number of times it occurs in the data set. 4.3: BAR GRAPH A graph consisting of parallel, usually vertical bars or rectangles with lengths proportional to the frequency with which specified quantities occur in a set of data. A bar graph is a pictographic version of statistical data in which the independent variable can attain only certain discrete values. The dependent variable may be discrete or continuous. The most common form of bar graph is the vertical bar graph, also called a column graph. This type of display allows us to: Compare groups of data, and To make generalizations about the data quickly. 4.4: ANALYSIS OF QUESTIONNAIRES 4.4.0: FROM MANAGEMENT 1) More than the desired output of the employees make can be harmful to the organization?     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  a) YES b) NO Variables Codes Frequency Yes 01 9 No 02 1 Table: 4.4.0.0 Graph: 4.4.0.0 2) There is a free flow of communication among the employees:     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  a) YES b) NO Variables Codes Frequency Yes 01 10 No 02 0 Table: 4.4.0.1 Graph: 4.4.0.1 3) Employees are properly informed about decision taken?     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  a) YES b) NO Variables Codes Frequency Yes 01 7 No 02 3 Table: 4.4.0.2 Graph: 4.4.0.2 4) There is a consistency among the management policies:     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  a) YES b) NO Variables Codes Frequency Yes 01 8 No 02 2 Table: 4.4.0.3 Graph: 4.4.0.3 5) Key post should be through:     Ã‚  Ã‚  a)  Ã‚  Ã‚  Direct Appointment  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  b) Promotion Variables Codes Frequency Direct appointment 01 8 Promotion 02 2 Table: 4.4.0.4 Graph: 4.4.0.4 4.5.1: FROM EMPLOYEES 1) From how long have you been working in this organization?   6 months 1 year 3 years Or more than 3 years Variables Codes Frequency 6 months 01 4 1 year 02 2 3 years 03 10 Or more than 3 years 04 4 Table: 4.5.1.0 Graph: 4.5.1.0 2) What kind of boss do you like to work with?   Friendly Competent Leant Difficult Variables Codes Frequency Friendly 01 17 Competent 02 3 Leant 03 0 Difficult 04 0 Table: 4.5.1.1 Graph: 4.5.1.1 3) Which type of leaderships style do you like the most? Autocratic Democratic Variables Codes Frequency Autocratic 01 18 Democratic 02 2 Table: 4.5.1.2 Graph: 4.5.1.2 4) How does your management is doing the evaluation among the employees? Performance base Merit base Variables Codes Frequency Performance base 01 18 Merit base 02 2 Table: 4.5.1.3 Graph: 4.5.1.3 5) Which management level should be responsible for problems between employees? Choose any of the following Top level Middle level Lower level Variables Codes Frequency Top level 01 2 Middle level 02 17 Lower level 03 1 Table: 4.5.1.4 Graph: 4.5.1.4 Q6: How do you communicate the unforeseen problem with your manager or general manager?   Answer: Most of the respondents suggested that they like to meet the general managers directly for any unforeseen events. Q7: Do you think your organization should involve the employees in decision making? And why?   Answer: Most of employees consider that their managers are capable of taking right decisions and there is no need of involving employees. While few of them suggested that it can be a source of new and creative ideas. Q8: What can you suggest for a better management system?   Answer: Most of the employees have no idea about it. Few of them believe that friendly environment and better salaries can improve management system. 4.6: INTER ORGANISATIONAL CONFLICTS OF NESTLE The nature conflicts in Nestle found out through the unstructured interviews and through questionnaire with the directors the managers of NESTLE Peshawar are as follows: The first thing which found, was the lack of training given to the employees, managers said that in the organization, employees always have to work together in groups, and if some one feels that he/she cannot work within the group, then there is some problem with that employee, but at the same time managers said that it is the organizations responsibility to teach the employees how to work together in groups through proper training. They mentioned that without training the organizations might face serious types of irresolvable conflicts, which are definitely not fruitful to the organization. The second main reason mentioned by the manager of the company was the Selection Biases, manager said that selection biases may also lead to conflicts within the company, and these conflicts are normally personal as well. The manager said that if in cases the top management (directors) interferes in the process of hiring the employees, they might select the wrong person for the right job. On the other hand there may be serious conflicts going on between the managers the directors on the issues of authority and responsibility balance. Further if the manager takes big decisions like job confirmation salary decisions then, there may be conflicts, and these must be taken by the top management (directors). The manager of NESTLE also raised the point of communications problem. They believe that every information must be communicated from their tables. If in any case any employee bypasses the manger, there may be a conflict between them. Manager also said that there is no need of any employee who bypasses the manager to access to the top management (directors). Usually the organizations do have Coordinators who are directly answerable to the top management. He said that the manager will not be able to properly deal with him and conflicts between them will arise. The manager said that young unmarried employees usually indulge in office politics and make conflicts among the employees. According to him only married and experienced persons should be provided with the jobs. Racial problems also create conflicts among the employees. Bad attitude of the manager and arrogant nature of the boss is also one reason of conflicts. The manager said that effective person but highly cooperative person would be proffered in place of an efficient but uncooperative one. The managers presented the following ideas to prevent conflicts: Contractual Jobs Hire fire system. Authority to the managers Some of them had a bit different views. Director held the middle managements capabilities responsible for the conflicts within the organization. He also said that there is no relationship between the authority and reasonability with the conflicts. He proffered the autocratic style of management in the beginning, but it should be shifted to the democratic style in the later portions. Director said that although the centralized system slows down the process of working, but it will also decrease the conflicts between the employees. They said that, if you (Employee) have to be successful in the company, then you have to become a big YES SIR. One of the director also mentioned that horizontal conflicts are more common. Super seeded persons normally indulge in making conflicts. He said that super seeded persons should be terminated in place of super seeding them. Dress code can experience the anger from the employees due to Ethnic affiliations to some dresses. Directors were strongly in favor of Coordinator, they said that a coordinator channels the communication process between the manager and the top management. He also gave the following ideas to prevent the possible conflicts in the organizations: Promotions Clear line of Authority Not more than one employee from same Regional locations and same institutions/Universities. CHAPTER # 5 5.0: CONCLUSION The Organizational Conflicts is itself not a problem, but it is a serious symptom of some factors that are usually ignored while designing the organizational structures. From the literature review, taking samples (convenience) analysis of the data gathered. Some factors are identified that usually are the root cause of the conflicts. Some of these are: Ethnicity Personal Jealousy Arrogant behaviors (low temperament) Communication problems Due to the nature of the issue the responses from the top (Directors), middle (Managers) lower management (Employees) were totally contrary with each other. For this purpose structured questionnaires (covering both open ended and close ended questions) and unstructured interviews were conducted. That made the deductions possible by comparing the verbal and non verbal responses, rephrasing the same questions two-three times to check the consistency of the replies. The ethnic issue is the most important. Due to ethnicity no sampled branch has been successful in implementing the dress code yet. Even though, all the respondents favoured it. It is observed that employees belonging to KHYBER PUKHTUNKHWA are very low tempered. Their frequency of jobs switching is higher than others. It proves that they cannot work in teams and work with an arrogant manager. To conclude, who should be held responsible for conflicts, the manager is the key person who channels the communication whether upward or down ward. 5.1: RECOMMENDATIONS The current thinking should be for the maximum utilization of the companys resources and to push the power and decision making authority down the hierarchy of the organization. This can create more power and flexibility within the company as a whole. Good leaders should not have any problem in delegating power and responsibility. Disagreement with the supervisor should be encouraged as long as it leads to productive results. It is critical for the manager to get diverse work force to work well together and respect their differences. Diversity should be encouraged because it can help the organization in future to adapt to the changing global market. All problems can be prevented from happening and/or rectified, if the middle management (Manager) of the company justifies its position. Middle management plays an anchor role. Manager should be able to deal with all the employees who have different cultural backgrounds, personalities priorities. Hiring experienced and matured managers and providing them training could help the case. On job training of the employees. Open house discussions should be there at least one a month. While assigning the groups to the employees for tasks, it must be assured that all the groups are properly matched. REFERENCE B R Siwal, S 1995, Conflict Resolution Strategies, last viewed date 16 dec, 2010, http://www.scribd.com/doc/19166679/Conflict-Resolution Jacob.Bervich, S 1997, Conflict and Conflict Management in Organizations, last viewed date 12 dec, 2010, .http://docs.google.com/viewer?a=vHYPERLINK http://doc

Inherit The Wind Essay -- essays research papers

Matthew Harrison Brady, of Inherit the Wind by: Jerome Lawrence and Robert E. Lee, never fooled anyone. He may have seemed strong in the beginning but he no substance under the shell. Such a false front can be compared to water behind an earthen dam. It may hold some water for a time but once the water finds a weak point, the whole structure comes crashing down along with the fury of all the water behind it. Within brady, the water represents the gooey inner core of his personality. Once he loses his composure in front of his once adoring audience the entire fluid of his persona comes crashing out. The only strength of Matthew Harrison Brady is his power in deliveringh his ideas. As in the earthen dam example, the townspeople represent the city protected from the water by the dam. Once the dam breaks, all the townspeople below get wet and are shaken to their foundations. Matthew Harrison Brady, without a doubt, deserves no sympathy. One example of Brady’s overly self-confidence would be "No†¦I believe we should welcome Henry Drummond." (P g. 25). Ha! What a shock he is in for. His own "high and mighty" thinking is going to lead to his downfall. Even Brady is taken a tad aback by the news that Drummond will be joining the trial "Brady: (pale) Drummond?" (Pg. 25) While he basks in his loving audience of townspeople, he will yet be pulled down from his high throne to be questioned and scorned. While the town feels much stri...

Locke, Hobbes, Mill, Thoreau :: Politics Philosophy Sociology

John Locke John Locke explains the state of nature as a state of equality in which no one has power over another, and all are free to do as they please. He notes, however, that this liberty does not equal license to abuse others, and that natural law exists even in the state of nature. Each individual in the state of nature has the power to execute natural laws, which are universal. I believe that Locke is correct in his analysis of the state of nature however; Locke‘s theory includes many assumptions. First is the assumption of a system of morality, the natural law derives from a theory of justice, a set of rights. No one would have any "rights" at all in the absence of a moral code applicable to human actions, nor would there be any standard of "just" punishment. Locke frequently uses the term "rights" and appeals to conscience and "calm reason", all of which reflect his assumptions about justice and morality. For individual property to exist, there must be a means for individuals to appropriate the things around them. Locke starts out with the idea of the property of person; each person owns his or her own body, and all the labor that they perform with the body. When an individual adds their own labor, their own property, to a foreign object or good, that object becomes their own because they have added their labor. This appropriation of goods does not demand the consent of humankind in general, each person has license to appropriate things in this way by individual initiative. Locke then places a bound on this type of acquisition, a person may only acquire as many things in this way as he or she can reasonably use to their advantage. One can only take so much as one can use. Lock applies these rules to land: a person in a state of nature can claim land by adding labor to it, building house on it or farming on it, but only so much as that person can reasonably use without waste. Locke then defines labor as the determining factor of value, the tool by which humans make their world a more advantageous and rewarding place to inhabit. Locke states that in order for a civil society to be established, the individuals must forfeit some of their rights that they have in the state of nature. This needs to be done so everyone can live together in peace.

Coffee Commodity Chain

DEPARTMENT OF ECONOMICS ISSN 1441-5429 DISCUSSION PAPER 06/08 COFFEE COMMODITY CHAIN Tine S. Olsen and Brett Inder ¦ ABSTRACT: To explain the value added along the coffee commodity chain we propose and estimate a theoretical model of the coffee commodity chain. The theoretical model consists of four markets and five agents in the coffee commodity chain and predicts that prices in the coffee commodity chain move together but are also influenced by income, technology and production. A vector error correction model is used to test the theoretical predictions.In addition to the theoretical conclusions the empirical model confirms the beneficial role of the International Coffee Agreement and the importance of the level of production in determining coffee prices. Key words: global commodity chain, vector error correction model, coffee, value added JEL classifications: O01, F02, Q110, C320, F230, F14  ¦ Monash University Department of Economics (Olsen), Monash University Department of E conometrics and Business Statistics (Olsen and Inder). Corresponding author Tine S. Olsen, [email  protected] monash. edu.  © 2008 Tine S. Olsen and Brett InderAll rights reserved. No part of this paper may be reproduced in any form, or stored in a retrieval system, without the prior written permission of the author COFFEE COMMODITY CHAIN 1. Introduction Between being grown and picked by a farmer in a developing country and being consumed, most often in a developed country, coffee passes through many sets of hands. Inspired by the global commodity chain literature we here propose a theoretical and an empirical model of the coffee commodity chain. We want to find out what determines the value added at each stage of the commodity chain.The question touches upon the distribution of income among agents and countries in the commodity chain, the prevailing market structure at each stage of the production process, trade, bargaining power and other factors influencing the commodity chai n. Figure 1 provides a graphical representation of the value chain for coffee in Brazil, Colombia and the US. [Figure 1] Value added at the various stages of the chain is the difference between input and output price. For Brazil and Colombia producer’s share is producer price and processing and transport is export price minus producer price.For Brazil international processing and transport is the difference between import price of Brazilian coffee in US and the export price in Brazil and processing in US is the US retail price minus the import price of Brazilian coffee in the US. For Colombia processing in US and transport is the difference between the US retail price and the Colombian export unit value. Regarding weight-loss due to roasting, green coffee is the commodity at all stages of the chain until it reaches the consumer. We follow one pound of green coffee along the commodity chain and multiply the retail price by 0. since coffee looses 20% of the weight in roasting ( Daviron and Ponte, 2005, p. 242, n. 5). 2 Figure 1 shows that the share of value added acquired by Brazil and Colombia has decreased after 1948. Behind this observation lies that the share to producers has decreased in Colombia but remained roughly constant in Brazil while the shares to domestic processing and transport have decreased in both countries, in particular after 1990. What we attempt to explain by this analysis are the decreasing shares of income to producing countries and the disappearing margins to exporters.The framework of this analysis is global commodity chains, terms of trade literature and price transmission literature. Commodity chains for coffee are described by Talbot (1997; 2002) and Ponte (2002). Commodity chain analysis focuses on the good along the nodes of the chain, and looks at the flow of the good through the commodity chain, the transactions which take place along the chain, the geographical location of the chain, the agents involved in the chain, and the rules governing the chain (Talbot, 2002).North-South trade and growth literature is relevant in the analysis of commodity chains to model the terms of trade between North and South. Darity and Davis (2005) argue that in the study of uneven development the North-South trade and growth literature provides insights which have been neglected by the later literature of new growth theory and new trade theory. This has encouraged us to apply North-South models to the coffee value chain. The theoretical model derived in section 2 builds on Bloch and Sapsford (2000) who model primary commodities used as inputs in the production of manufacturing.Where Bloch and Sapsford (2000) take an aggregate view of primary commodities and manufactures, we here focus on coffee and hereby take an approach similar to Boratav (2001) who examines terms of trade for individual commodities. And just like Bloch, Dockery, and Sapsford (2004) we analyse the effect of mark-up on wages and commodity prices on the final consumer prices. Price transmission literature such as Hazell, Jaramillo, and Williamson (1990), Mundlak and Larson (1992), Baffes and Gardner (2003), Krivonos (2004), Morisset (1998) and Weldegebriel (2004) also offer a framework to analyse prices of commodities at different 3 odes of the commodity chain. This part of the literature views producer and retail prices as determined by world prices. In Bloch and Sapsford (2000) the price of manufactures, which is a good higher up in the value chain if it is interpreted as roasted coffee, is a function of the price of primary products because primary products are inputs in the production of manufactures. In the transmission literature it is assumed that the price formation happens in the world market and that market forces allow prices movements to trickle down to producers and consumers.The price trickles down because of trade, price signals and arbitrage. The causality between world prices and producer prices is therefore oppos ite in the terms of trade literature and the price transmission literature. The contradiction is created because the value chain literature focuses on the flow of goods while the transmission literature focuses on the flow of information and market signals. We can look at the problem in multiple time frames. In the long run, prices may be determined by economic fundamentals and can be modelled according to the terms of trade literature.In the short run the price may be a result of the global market situation and the transmission literature is applicable. We here propose a theoretical model which builds on the terms of trade literature but the same time accommodates features from the price transmission literature. The choice of countries in the empirical model poses the main limitation of the empirical analysis. Coffee is consumed in all countries across the world and production statistics are available for 71 countries1. Though an analysis comprising all consuming and producing coun tries is possible, the approach here is to only look at a few countries.The countries for analysis in this study are the largest producer, Brazil, the largest consumer, US, and Colombia as a country which depends heavily on coffee. 2 In the following, the theoretical model is presented in section 2. The empirical model, data and preliminary data analysis are presented in section 3 and section 4 reports the results. The theoretical hypotheses and empirical results are evaluated in section 5, which concludes. 4 2. Theoretical Model The commodity chain, which spans from producers to consumers, is modelled in the form of the prices at each node of the chain.The model builds on Bloch and Sapsford (2000), but instead of primary commodities and manufactures, we here follow the same commodity along the chain and the commodity is an input in the production at the next stage of the chain. The producer and intermediary one (often the exporter) meet in market one where the producer price is det ermined. In market two intermediary one sells the commodity to intermediary two (often the importer) for the export price. In market three intermediary two sells the commodity to intermediary three (often the roaster) for the import price.Finally in market four intermediary three sells the commodity to the consumer and receives the retail price. The model has this set of agents to reflect what price data is available at the various stages of the supply chain. Except for intermediary three, each agent takes the price and quantity produced in other markets as given. This assumption makes the markets separable. Intermediary three determines the price in market four by mark-up and we hereby follow Bloch and Sapsford (2000) in the assumption of different market structures in developing and developed countries.The assumption of imperfect competition in market four reflects the high concentration in the coffee roasting sector as described by Talbot (1997). The commodity is produced by the farmer according to the production function G = Ae? 0t L? 1T ? 2 ? G . G (1) Where, in the case of coffee, G is green coffee, LG is the labour input in coffee production, T the number of coffee trees and ? G is a random disturbance term, such as weather. t is time and represents technological progress in the production techniques. ? 0 , ? 1 and ? 2 are elasticities of inputs and technology.The number of trees is assumed to be fixed in the short term and is therefore not a variable input. 5 Exporters constitute the demand side in market one. They have the production function: X = Be ? 0t L? 1 G ? 2 ? X , X (2) where X, in the case of coffee, is green coffee packed, sorted and graded and located in the producing country. LX is the labour input necessary to export the product. It should be noted that green coffee, which is the output produced by the farmer according to the production function (1), is an input in the exporter’s production function.As before, t represents technolo gical progress and ? 0 , ? 1 , and ? 2 are elasticities of inputs and technology. The shocks, ? X , may represent strikes or other random shocks to the production process. The production functions for importers and roasters are defined in a similar manner with coffee from the previous part of the chain as an input. 1 M = De? 0t L? M X ? 2 ? M (3) R = Fe? 0t L? R1 M ? 2 ? R (4) Equation (3) is the production function for importers and equation (4) is the production function for roasters. M is green packed and sorted coffee imported into the consuming country.R is roasted and ground coffee sold in retail. The importer employs labour LM and the roaster employs labour LR . The factor prices are as follows. The price of LG is the wage rate in agriculture, wG ; the price of LX is the wage paid by exporters, wX . The price of LM is wM and the price of LR is wR . Coffee at stage J of processing has price pJ , e. g. G has the price pG . It is assumed that all inputs have positive but diminis hing marginal products in all four production functions: 1 > ? 1 > 0 , 1 > ? 2 > 0 , 1 > ? 1 > 0 , 1 > ? 2 > 0 , 1 > ? > 0 , 1 > ? 2 > 0 , 6 1 > ? 1 > 0 and 1 > ? 2 > 0 . It is also assumed that inputs together do not give rise to increasing returns to scale: ? 1 + ? 2 < 1 , ? 1 + ? 2 < 1 , ? 1 + ? 2 < 1 and ? 1 + ? 2 < 1 . 2. 1 Price Determination in Market One In market one we assume perfect competition and the price paid to farmers, pG , is determined by equilibrium in the market with demand and supply for green coffee. Supply is determined by profit-maximising coffee farmers and demand by profit-maximising exporters. Profit maximisation gives the supply function: pG = wG? 1? 1 ? Ae? 0tTG 2 ? G ? ? ? ?1/? 1 G (1 1 )/? 1 . (5) The optimal amount of coffee demanded by the exporter who profit maximises is: ( ) 1/(1? ?1 ? ? 2 ) G = ? p X Be ? 0t ? X pG ? 1 ? 1? 21? ?1 wX ? ?1 ? 1? 1 ? ? ? (6) . The equilibrium price in market one is derived by equating supply given by equation (5) an d demand in equation (6): ln( pG ) = a0 + a1 ln( p X ) + a2 ln( wG ) + a3 ln( wX ) + a4 ln(T ) + a5t + ? G (7) Where ( ( a0 = 1 (1 ? ?1 ? ? 2 ) ln ? 1? 1 A? 1/? 1 B? 21? ?1 ? 1? 1 ) (1 1 )/[? 1 (1? ?1 ? ? 2 )] ), a > 0 0 (8) a1 = ? 1 ? ?1 ) , a1 > 0 (9) a2 = 1 (1 ? ?1 ? ? 2 ) , a2 > 0 (10) a3 = 1 (1 ? ?1 ) , a3 < 0 (11) a4 = 2 (1 ? ?1 ? ? 2 ) , a4 < 0 (12) a5 = ? ( ? 0 (1 ? ?1 ) ? ? 0 (1 ? ?1 ? ? 2 ) ) (13) & ?G = ? ( (1 ? ?1 ) ln(? X ) ? (1 ? ?1 ? ? 2 ) ln(? G ) ) (14) 7 ? = (1 ? ?1 ? ?1? 2 ) ?1 (15) The coefficients will be interpreted in section 2. 5 below together with the rest of the coefficients of the model. 2. 2 Price Determination in Market Two In market two exporters sell to importers. The price is again determined by equilibrium between demand and supply.Supply is determined by profit maximisation by exporters and demand by profit-maximising importers. Supply in market two by the exporter is calculated from what amount of coffee is demanded in market one: 1/(1? ?1 ? ? 2 ) X = ? Be ? 0t p X ? 1 + ? 2 ? X pG ? ? 2 ? 2 ? 2 wX ? ?1 ? 1? 1 ? ? ? (16) The demand function by importers is derived by profit maximisation in a similar manner to the derivation of the demand function for exporters above. Making use of the symmetry of the production functions, the demand function is similar to (6). The price in market two is determined by equating demand and supply: n( p X ) = b0 + b1 ln( pG ) + b2 ln( pM ) + b3 ln( wX ) + b4 ln( wM ) + b5t + ? X (17) where the b’s are: b0 = ? ?( ? 1 + ? 2 ? 1) ln ( B? 2 ? 2 ? 1? 1 ) + ( ? 1 + ? 2 ? 1) ln ( ? 2? 1 ? 1? 1 1 D ? 1 ) ? , b0 > 0 ? ? (18) b1 = 2 (? 1 + ? 2 ? 1) , b1 > 0 (19) b2 = ? (1 ? ?1 ? ? 2 ) , b2 > 0 (20) b3 = 1 (1 ? ? 1 ? ? 2 ) , b3 > 0 (21) b4 = 1 (1 ? ?1 ? ? 2 ) , b4 < 0 (22) b5 = ? [ ? 0 (? 1 + ? 2 ? 1) + ? 0 (1 ? ?1 ? ? 2 ) ] (23) 8 ? X = ? ( ( ? 1 + ? 2 ? 1) ln(? X ) + (1 ? ?1 ? ? 2 ) ln(? M ) ) (24) ? = (1 ? ? 1 ? ? 2 ( ? 1 + ? 2 ) ) > 0 (25) ?1 2. 3 Price Determination in Market ThreeIn mar ket three, intermediary three purchases green coffee from intermediary two, or in the example of Brazil, the roasters purchase the coffee from the importers and produce roasted coffee according to the production function (3). The roasters’ demand and the importers’ supply are again given by profit maximisation. Given the similar production functions for roasters and importers, the derivations of the equilibrium price are as for market two. The equilibrium price is (expected signs in parentheses under the coefficients): ln( pM ) = c0 + c1 ln( p X ) + c2 ln( pR ) + c3 ln( wM ) + c4 ln( wR ) + c5 t + ? M + + + + ? (26) + /?The signs of the coefficients are determined in a similar way as in market two since the market set-ups are identical. 2. 4 Price Determination in Market Four In market four the price is not determined by supply and demand, but rather by a mark-up on the unit cost function because of imperfect competition. This is one of the conclusions by Prebisch (195 0) and Singer (1950) which Bloch and Sapsford (2000) also model. The price is determined by: p M? ?L w pR = m ? R R + M ? R? ?R (27) Where m is the mark-up. To derive pR the cost-minimising demands for labour and green coffee are derived and inserted into (27) which gives the price of oasted coffee: ln( pR ) = d 0 + d1 ln( R) + d 2 ln( pM ) + d3 ln( wR ) + d 4 ln(m) + d5t + ? R (28) where 9 ( ) ( ) d 0 = (? 1 + ? 2 ) ? 1 ln( B) + ? 1 (? 1 + ? 2 ) ln ? 2? 1? 1 + ? 2 (? 1 + ? 2 ) ln ? 1? 2 ? 1 , d 0 > 0 (29) d1 = (? 1 + ? 2 ) (30) ?1 ?1 ?1 (1 ? ?1 ? ? 2 ) , d1 >0 d 2 = (? 1 + ? 2 ) ? 2 , d 2 > 0 and d3 = ? 1 (? 1 + ? 2 ) , d 3 > 0 (31) d5 = 0 (? 1 + ? 2 ) < 0 , d 5 < 0 (32) ? R = ? (? 1 + ? 2 ) ln(? R ) (33) ?1 ?1 ?1 ?1 2. 5 Hypotheses Before commencing to estimate the system of the four equations, equation (7), (17), (26) and (28), it is necessary to address data limitations.To test the four equations for the coffee market it is necessary to have wages in coffee farming, wages in th e coffee-exporting sector, wages in the coffee-importing sector and wages in the coffee-roasting sector. These wage data are not available and the wages in producing countries, wG and wX , will be approximated with the gross domestic product (GDP) per capita in producing countries, y P . Wages in the importing sector and the roasting sector in the consuming country, wM and wR , are approximated with the GDP per capita for a consuming country, yC .In addition to data on wages, data on coffee trees limit the empirical analysis since data for coffee trees or acreage are not available for the desired timeframe of the analysis. The quantity of coffee trees enters equation (7) and coffee production enters equation (28). Both variables are in the empirical model represented by world coffee production. The alterations to the theoretical model, give the following four equations: ? pG = a0 + a1 p X + a2 y P + a4 q + a5 t + ? G + + + /? ? + /? (34) 10 p X = b0 + b1 pG + b2 pM + b3 y P + b4 yC + b5 t + ? X (35) ? pM = c0 + c1 p X + c2 pR + c3 yC + c5 t + ? M (36) R = d 0 + d1 q + d 2 p M + d 3 yC + d 4 m + d 5 t + ? R (37) + + + + + + + + + ? + + /? + + /? + /? 1 ? The expected signs of the parameters are indicated under the respective parameters; +/– indicate that the sign is uncertain from the adjusted theoretical model. World production is q, and the coefficients on income in market one and three are defined as: ? a2 = a2 + a3 = ? ?1 (? 1 (1 ? ? 2 ) ? ?1 ) * c3 = c3 + c4 = [? 1 (1 ? ? 2 ) ? ?1 (1 ? ? 2 ) ] (1 ? ? 1 ? ? 2 ( ? 1 + ? 2 ) ) (38) ?1 (39) The coffee commodity chain model consists of the four simultaneous equations in equation (34) to (37) from which hypotheses can be derived.Firstly, it is apparent that all prices are positively correlated. An increase in the price of coffee in market i–1 (increased input price) shifts the supply curve in market i left since it increases marginal costs and the equilibrium price is higher and the quantity traded lower. An increase in the price of coffee in market i+1 increases the supply in market i+1 and hereby the demand for coffee in market i and increases the price in market i. Secondly, the coefficients on national incomes have mixed signs. They depend on the input elasticities of labour at different nodes of the chain.If the input elasticity of labour in coffee growing (importing) is relatively large compared to the input elasticity of labour in ? ? coffee exporting (roasting) then a2 ( c3 ) will be positive. It may be assumed that production processes are relatively more labour-intensive early in the commodity chain because of less reliance on capital. In market two the coefficient on producer income is positive because it is an input price for exporters. In contrast consumer income is an input price for importers and decreases the export price. The coefficient on income, d 3 , in market four expresses a markup, and is positive.Overall coefficients on national incomes are expected t o pull coffee prices 11 up, only with the exception of the income in the consuming country which is assumed to depress the export price of coffee. Thirdly, coffee production has a positive impact on the retail price, but a negative impact on the producer price. It is expected that the effect of output is largest on the producer price because prices paid to producers are primarily influenced by conditions in the coffee market while the retail prices in consuming countries are outcomes of many factors, such as market structures, wages and technology.In a system with all four equations the coefficient on production is therefore expected to be negative. Fourth, the effects of technological change on the prices in markets one, two and three are uncertain, and negative for the retail price in market four. If it is assumed that production methods become more technologically progressive the higher up they are in the chain, the coefficients on the time trend will be positive in market one, t wo and three. Constants a0 , b0 , c0 and d0 , are positive but do not have any economic interpretation. G , ? X , ? M and ? R are random shocks with expected value zero. ?G , ? X and ? M are linear combinations of shocks to production in two markets. Therefore, the residuals generated by estimation of equations (34), (35), (36) and (37) are not independent of each other. Furthermore, any given price in the commodity chain depends on the prices at the previous and next stage of the chain. The four equations are hence simultaneous, and the econometric model accommodates for this. 3. Econometric Model and Preliminary Data AnalysisAnnual data from 1948 to 2004 are employed to estimate the theoretical model. An empirical analysis of the commodity chain for coffee from a single origin in a time series framework is not possible due to data limitations. Instead eight price series are used. These are producer 12 and export prices in Brazil and Colombia, import price of Brazilian coffee into the US, import unit value of (all) coffee in the US, the world price and the US retail price of coffee. Given the non-stationarity of the time series used to estimate the model, a vector error correction model (VECM) is appropriate.A VECM captures long-run paths of the series in the cointegrating vectors and short-run dynamics in the error correction equations. It is formulated as: ?y t = ?y t + ? 1? y t ? 1 + L + ? p ? 1? y t ? p +1 + ut , (40) where y t = ( ptG , B , ptG ,C , ptX , B , ptX ,C , ptM , B , ptW , ptM ,US , ptR , yt )? , ? is the loading vector of coefficients on error correction terms, ? is the coefficient vector for the cointegrating vector, ? j is the coefficient matrix on lag j and ut is the vector of error terms. ptG , j and ptX , j are respectively the producer and the export price in country j, where B is Brazil and C is Colombia. tM ,US ? B is the import price of Brazilian coffee in the US, ptM ,US is the import price of (all) coffee in the US, ptW is the wor ld price and ptR ,US is the retail price in the US. yt is relative income between consuming and producing countries and is used to avoid that the rank of ? = ? is not higher than the number of truly endogenous variables. According to the theoretical model national incomes have an impact on coffee prices, but coffee prices do not have an impact on national incomes. This is though not true for Brazil and Colombia for parts of the sample.Today Brazil and Colombia no longer rely heavily on export earnings from coffee (ICO, 2003) but historically this is not the case, and this analysis covers 1948-2004. Therefore, yt is treated as an endogenous variable. Sources for prices are as in Figure 1 above. World production of coffee is included as an exogenous variable. Source are Departamento Nacional do Cafe (1938, 1939/40), Deaton and Laroque (2003) and FAOSTAT online (2007). Real GDP are from Maddison (2007) and GGDC (2005) and the US CPI from BLS (2005a) has been used to reach nominal GDP. 13 To determine the stationarity properties of the series, unit root tests are carried out.It is pointed out by Morisset (1998) and Krivonos (2004) that coffee price responses may be asymmetric and we follow Enders and Granger (1998) and conduct unit root tests for variables which possibly adjust asymmetrically. The results are outlined in Table 1. [Table 1] All variables in Table 1 are expressed in natural logarithms. Lag-length is determined by the Akaike Information Criterium (AIC) and inclusion of a trend is decided from visual inspection of the series and the decision noted under â€Å"Trend† where â€Å"y† indicates that a trend is included and â€Å"n† that it is not.The F-statistic for the hypothesis that the series has a unit root shall be held up against the Enders and Granger (1998) critical value of 7. 07 when a trend and a constant are included in the regression and 5. 14 when only a constant is included. The results in Table 1 show that all series but world production have one unit root and hence are non-stationary and integrated of order one. The test statistic for the stationarity of world production is close to the 5% critical value by Enders and Granger (1998), so depending on significance level the series could also have been concluded to be nonstationary.It is not important to correctly identify the stationarity properties of world production, since the series is not an endogenous variable in the VECM and furthermore, it enters the model in first differences. No series adjusts asymmetrically according to this analysis, and asymmetries are disregarded when formulating the empirical model. Due to the possible impact from the International Coffee Agreement (ICA) a dummy variable, which takes the value one in the years the agreement was in place (1962 to 1989), is included. The ICA dummy is included in the short-run regressions because the ICA had an impact only on prices in the short run.In the long run quotas were adjust ed to meet market forces on supply and demand, but in the short run quotas stabilised coffee prices. 14 4. Results Before estimating the VECM in equation (40) the lag-length and the rank of the VECM are determined. Schwartz Information Criteria points at one lag and the AIC and the HannanQuinn Criteria point towards four. In the estimation process the model was first estimated with one lag and tests of the residuals indicated no problems regarding normality. There was no need to expand the number of lags and the model reported here has one lag.With one lag Johansens’s cointegration test gives the following rank of the VECM: [Table 2] Using the trace test, the hypothesis of rank one cannot be rejected, and from the maximum-eigenvalue test the hypothesis of no cointegration cannot be rejected. The test statistics are close to the 5% critical values which makes the decision regarding the rank of the matrix equivocal. The trace statistic for the hypothesis of one or less cointegr ating vectors is close to the critical value, but the test statistic for the hypothesis of rank three or less is clearly rejected.Therefore, according to the trace statistic there are one or two cointegrating vectors. Looking at the maximum-eigenvalue statistic, the test statistics and 5% critical values are relatively close until the hypothesis of three or less cointegrating vectors. Again, rank up to two is acceptable according to the test statistics. A model with two cointegrating vectors is preferred because this indicates seven trends among the nine variables and some variables share trends. 4. 1 Long-Run Equilibrium The preferred model has the following two estimated cointegrating vectors: 15 ptW = 0. 24 ptM ,US ? B + 0. 4 ptX ,C + 0. 15 ptX ,B + 0. 18 ptR ,US (2. 95) (2. 22) (2. 61) (4. 01) ? 0. 05 ptG ,B + 0. 34 ptG ,C ? 0. 28 yt ? 0. 00 t + 0. 43 (3. 58) (6. 35) (2. 86) (3. 76) ptG ,C = ? 0. 23 ptM ,US + 0. 10 ptM ,US ? B + 1. 05 ptX ,C + 0. 91 yt + 0. 01t + 1. 97 (5. 05) ( 0. 70) (5. 71) (5. 09) (41) (4. 51) (42) t-statistics are in parentheses under the parameter estimates. The first cointegrating vector, CIV1, in equation (41) represents the long-run equilibrium in the world market. The second cointegrating vector, CIV2, in equation (42) represents the long-run equilibrium between the two Colombian prices.The two cointegrating vectors are found by commencing with a general model with one cointegrating vector and all nine endogenous variables in this cointegrating vector. Insignificant variables in the cointegrating vector are removed sequentially. It is clear that the US import unit value is not significant in CIV1 and it is moved out to a second cointegrating vector. Other variables were included in CIV2 if they obtain significant coefficients in CIV2 or exhibit significant error correction. According to the first cointegrating vector, CIV1, six prices move together in the long run, and one moves opposite to this group.The world price, the import p rice of Brazilian coffee in the US, the export price in Brazil, the export unit value in Colombia, the US retail price and the Colombian producer price all move together in the long run. Five of the prices have roughly the same influence on the common path, but the world price, to which CIV1 is normalised, dominates through a higher coefficient (one). The Brazilian producer price moves in opposite direction to these six prices, but has a small coefficient in equation (41). The prediction of the theoretical model is that all prices should move together.Therefore, the coefficient on the Brazilian producer price contradicts the model, but the coefficient is small. 16 The second cointegrating vector, CIV2, shows Colombian prices (producer and export price) and the import price of Brazilian coffee in the US move together in the long run. It is clear that the two Colombian prices dominate the movements of the group of prices since the Colombian export price obtains an estimated coefficien t above one and CIV2 is normalised to the Colombian producer price.The import price of Brazilian coffee into the US is the least influential in the group since its estimated coefficient is 0. 10 and hence a tenth of the estimated coefficient on the Colombian prices. The import unit value of (all) coffee into the US enters CIV2 with a negative coefficient indicating that the Colombian prices and the import unit value of coffee in the US move in opposite directions to each other in the long run. As the Brazilian producer price in CIV1, this poses a challenge to the theoretical model which predicts that all prices should move together.However, the US import price and the Colombian producer price are far from each other in the coffee commodity chain and the coefficient is less than a quarter of the coefficient on the Colombian export unit value. Therefore, this coefficient, like the Brazilian producer price in CIV1 above, does not mean that the theoretical model is rejected, and prices are found to generally co-move in the long run. The coefficients on relative income are significant in both cointegrating vectors but have different signs. When relative income decreases, the six prices in CIV1 increase. In contrast, the three prices which co-move in CIV2 decrease.The effect of relative income on coffee prices in the long run are hence not clear from looking at the cointegration vectors. Technological progress, here modelled as a time trend, obtains estimated coefficients in the cointegrating vectors of the same sign as relative income. Technological progress hence moves the two groups of prices in different directions. Alternatively, if something else than technological progress is the reason for the coefficients on the time trend, something else makes the two groups of prices diverge over time. Over time the six prices in CIV1, which are 17 lose to the world market, move closer together. Opposite to this, the Colombian producer price moves away from the path of ot her prices in CIV2. 4. 2 Short-Run Dynamics The short-run structures show how the series adjust towards the long-run equilibria, and how the endogenous variables respond to shocks in exogenous variables. Error correction towards the two long-run equilibria happens according to the estimates in Table 3. [Table 3] Whether a variable error corrects and restores the long-run equilibrium between prices in a cointegrating vector is determined by looking at its sign in the cointegrating vector (the sign of ? and its sign in the loading matrix (the sign of ? ). If the combined sign is negative, the variable works towards restoring equilibrium. The two export prices, ptX ,C and ptX , B , and the import price of Brazilian coffee into the US, ptM ,US ? B , are the only variables which significantly adjust to disequilibrium between the variables in CIV1. These three prices work to restore an equilibrium which is dominated by the world price. The world price in contrast moves further away from t he equilibrium when a shock has created disequilibrium.The import price of Brazilian coffee into the US and the Colombian export price significantly adjust to disequilibrium between the prices in CIV2. Though the import price of Brazilian coffee into the US was not significant in determining the second long-run equilibrium (CIV2), it significantly works to restore it. The estimated parameters on the error correction term in the equations for the import unit value in the US, the Colombian producer price and relative income are not different from zero. This suggests that these variables do not 18 ork to restore the long-run relationship described by CIV2. The Colombian producer price is an important determinant of the equilibrium described by CIV2, but it does not adjust to restore this equilibrium. It thus influences other prices, but is itself not influenced by other prices. Relative income does not adjust to disequilibrium between the variables in CIV1 but its error correction towa rds the equilibrium described by CIV2 is significant on the 10% level. Relative income therefore works in part to restore the equilibrium between (among others) the Colombian prices in CIV2.This could show that any endogeneity of relative income is due to the importance of coffee prices for national income in Colombia. In addition to the error correction terms, the short-run equations include exogeneous variables. The four exogenous variables in the VECM are a constant (c), the dummy for the International Coffee Agreement (ICA) and the current and lagged first difference of world production of coffee, d(qt) and d(qt-1). The estimated coefficients on the exogeneous variables in the short-run regressions are presented in Table 4. [Table 4]None of the estimated constants in the short-run equations for prices are significantly different from zero. This suggests that time trends have been captured in the cointegrating vectors, but it is noticeable that the constant is positive and has hi gh t-statistics in the equations for the price of coffee imported into the US and the retail price in the US. This indicates that the prices, which have increased in an unexplained way, are prices in the US and that value added is largest further up in the coffee commodity chain. The constant is also positive with a high tstatistic in the short-run equation for the Colombian producer price.This could indicate that the attempts by the Federacion Nacional de Cafeteros de Colombia3 (FNC) to influence the prices of Colombian coffee have been successful. 19 The estimated coefficient on the ICA dummy is positive in the equation for relative income and in six equations for prices but negative in two equations for prices. However, it is never significant. The ICA increased six of the eight prices and it should be pointed out that the most significant, though not significant even at the 10% level, increases are for export prices and the import price of Brazilian coffee into the US.It was not producers which gained from ICA but rather exporters and importers of Brazilian coffee. So, there is weak evidence that while exporters benefited from the agreement the producers did not; the effects of the commodity agreement did not trickle down and reach them. First differences of world production and lagged world production enter with negative and significant signs in all regressions but one. This stresses the importance of production in determining prices in the short run. This is predicted by the theoretical model; increased production lowers price regardless of where in the chain the price is situated. . 3 Weak Exogeneity Tests of weak exogeneity are carried out to further test the driving forces in the system. A weakly exogenous variable has an impact on the long-run path of the variables of the system, but is not itself influenced by the variables in the system. The results from likelihood ratio tests are given in Table 5. [Table 5] In Table 5 the test statistics for the w orld price, the import unit value into the US, the Colombian export unit price, the US retail price and the two producer prices are lower than the 5% critical value, and the null hypothesis can not be rejected for these variables.These six prices are hence weakly exogenous. Agents at the ends of the chain, retailers, importers and producers, are hence not responding to deviations from the long-run equilibrium relationships between prices. As such, they are somewhat isolated from the world market. This is not 20 surprising since the price transmission literature asserts that the price determination happens in the world. Further up and down the chain other factors, such as market set-ups, intervention and incomes determine the prices.The hypothesis of weakly exogenous relative income is clearly rejected, indicating that it is correct to model income as endogenous in the system as discussed above. Also, the likelihood ratio test shows that the causality between prices and relative inco me is uncertain. Coffee prices and national incomes in Brazil and Colombia are interrelated. Coffee prices are important determinants of income in Brazil and Colombia, but national incomes also determine coffee prices. Regarding relative income it is clear that the results are equivocal.The coefficients in the cointegrating vectors obtained different signs and it may or may not be weakly exogenous according to the error correction coefficients and weak exogeneity tests. The final set of results which can shed light on the effect which relative income has on prices, is impulse response functions. They were estimated for the VECM and show that relative income has a negative impact on all eight coffee prices and hence that a decreasing income gap between producing and consuming countries increases coffee prices. 5. DiscussionRegarding the central question of what determines the value added at each stage of the commodity chain, it can be concluded that the prices definitely determine ea ch other, and that from outside the system of prices quantity has a large impact, but only in the short run. In the long run, relative income has an effect on all prices, and a closing income gap between producers and consumers increases prices. In addition, prices move in response to changes in technological progress. In this concluding section four overall conclusions are drawn. The first is of how the prices influence each other.The second is of how relative income impacts prices. The third is 21 of how production influences prices. And last how the time trend, which represents technology, influences prices. It is of utmost importance to determine which prices are detached from the chain. The theoretical model predicts positive correlation between the prices and this is generally found in the empirical model both by long-run co-movements and by adjustments to restore the long-run equilibria in the short run. Both CIV1 and CIV2 show co-movement among prices, but the VECM is estima ted with two cointegrating vectors.This indicates that there may be a break in the coffee commodity chain since one group of prices moves together in one manner while the other group moves in a different manner in the long run. The world market prices in CIV1 move together but the Colombian prices in CIV2 do not follow their movement, and the Colombian prices may be detached from other prices, possibly due to FNC. Since the Brazilian producer price is not significant in CIV2 and moves against the other prices in CIV1 it can be said to also be detached from the value chain.The error correction properties of the system and the weak exogeneity tests show that prices in the middle of the chain work to restore the two long-run equilibria. The prices at the ends of the chain, the producer prices and the retail price, and the dominating world price do not error correct. The lack of error correction by the prices at the ends of the chain indicates that they are not influenced by the long-ru n paths and points at breaks in the coffee commodity chain.The empirical results suggest that the world market is characterized by close linkages between prices but retail price and producer prices are less integrated with other prices. This finding may support the arguments made by the price transmission literature. The limited trickle down of price signals to producer prices confirm the findings of Fitter and Kaplinsky (2001) and Ponte (2002) who argue that surplus created along the chain falls on agents further up the chain, and not on producers. The discussion of intervention and integration in the 22 ransmission literature (Baffes and Gardner, 2003; Hazell et al, 1990; Krivonos, 2004; Mundlak and Larson, 1992) explain why the Colombian producer price and export price, which have experienced considerable intervention by FNC, are detached from other prices. It is not possible to reach an unequivocal conclusion regarding the impact of relative income by looking at the cointegratin g vectors, short-run dynamics or weak exogeneity tests. It is concluded that decreasing income gap increases prices in the world market, whereas it decreases the Colombian producer price.The negative relationship between relative income and all eight prices found by the impulse response functions confirms the expected signs of the coefficients on income in market one and two. The negative relationship between relative income and prices extends to market three. However, since income in consuming countries occurs in the numerator of relative income, relative income should obtain a positive coefficient if the hypothesis of decreasing importance of labour along the coffee commodity chain is confirmed. A negative ? c3 in equation (36) suggests that the roasting sector relies more on labour than the importing ector, in light of the discussion of equation (35) above. Income’s significance in the determination of producer prices, both in the theoretical and the empirical model, offer s support for the terms of trade literature, where prices are determined by underlying macroeconomic factors. Relative income also helps explain divergence of producer and retail prices as these prices reflect relative overall economic performance of producer countries compared to consuming countries. The theoretical model predicts that there is a negative relationship between prices and production. This is fully supported by the empirical model.The negative and significant coefficients on the differences of world production show that it could be the supply curves which shift outwards and create the decreasing prices. 23 According to the theoretical model the sign on the time trend (technological progress) is unknown and depends on whether the supplier or the demander in a given market experiences the most significant technological innovations. The negative sign of the estimated coefficient on the time trend in CIV1 shows that the prices in CIV1 move closer together over time than w hat is explained by relative income.Technological progress can be the explanation for this. A negative sign indicates that the technological progress is largest for the supplying parties in markets one, two and three and/or the negative sign of d 5 is confirmed. The latter case is particularly neat since CIV2, which holds a positive time trend, does not contain the US retail price, and the different signs of the time trend in the cointegrating vectors are not conflicting. They are not conflicting because in CIV1, which describes all four markets, d 5 causes a negative time trend.In CIV2, which describes market one, two and three, a5 , b5 and c5 represent relatively bigger technological progress by demanders which creates a positive time trend. A positive time trend could occur in market one, two and three in the theoretical model if the technological progress is largest for the demanding parties in these three markets. This development is not unlikely in the coffee commodity chain i f agents along the chain become more able to improve their production methods (technological progress) because they become wealthier either through market power and/or the value they add to coffee.This hypothesis can however not be tested with the data used for this analysis, but touches on the discussion in Ponte (2002). Therefore, the positive time trend in CIV2 could be capturing technological progress or some factor not included in the model that coincides with the passing of time. Market power and bargaining power are examples of unmodelled variables in the VECM. The almost significant positive constants in the regressions of US prices show that US import and retail prices tend to increase more than other prices.This could capture the mark24 up, m in (37). The negative constant in the short-run regression for the Brazilian export price could be caused by the coffee commodity chain being a trader-driven commodity chain, as argued by Talbot (2002), where international traders tra de large amounts of coffee with very little margin. Looking at the value chain for Brazil in Figure 1 confirms this, since the value added at the exporting stage, which is denoted processing and transport in Brazil, reduces to almost zero after 1990.It is no coincidence that this is the year after the breakdown of ICA, and it is also argued by Ponte (2002) that this event changed the power relations along the coffee commodity chain. The empirical model gives some insight into issues which are not explicitly modelled in the theoretical model. The theoretical model did not predict which prices would be dominating and which would be adjusting to movements in other prices. However, it is found that the world price is dominating and the export prices are responding.Boratav (2001) found that the ratio between world price and export unit value was stable, and the analysis here can extend the conclusion by suggesting that the export prices follow the world price. If the aim is to create a m ore equal income distribution among agents in the global coffee commodity, this analysis offers some insights of policies to achieve this. Income levels in coffee-producing countries are important determinants of the coffee prices and low national incomes pull coffee prices down even though the retail and import price in consuming countries might increase.Unless the general income level in producing countries increases increased income in consuming countries will not trickle down to the coffee farmers. Alternatively the structure of the chain can be changed and an income distribution more favourable for coffee farmers could be achieved. At the international level the International Coffee Agreement increased coffee prices, but more so export and import prices than producer prices. If the aim is to benefit those in the global coffee commodity chain who has the least – the farmers – an international agreement is 5 hence not the most efficient tool. Improved technology for farmers and increases bargaining power are other factors which would redistribute value within the commodity chain. Producer and retail prices which are detached from the world market, technological progress mainly by demanding parties in the chain and increasing mark-ups (or market or bargaining power) in consuming countries are all findings which support the idea by Darity and Davis (2005) to bring Karl Marx back into the picture.Though international commodity agreements, producer cartels and attempts to change the structures of the centre and periphery are not policies currently in vogue, it may be useful to keep them in mind when engaging in the world coffee market. 26 Value Chain for Brazil 1950 1960 1970 1980 year 1990 2000 20 0 40 20 40 % 60 % 60 80 80 100 100 Value Chain for Colombia 1950 Processing in US International processing and transport Processing and transport in Brazil Brazilian producer's share 1960 1970 1980 year 1990 2000 Processing in US and transportProcessing and transport in Colombia Colombian producer's share Fig. 1. Distribution of the Coffee Dollar along the Commodity Chain. Sources: Brazilian and Colombian producer prices: FAO (various years), FAOSTAT (2006) and ICO (2005). Export and import unit values: FAOSTAT online (2006) and U. S. Department of Commerce: Bureau of the Census (1989). Wholesale prices for Brazil: IFS (various years). US Retail prices: BLS (2005b). 27 Table 1. Asymmetric Unit Root Tests n 1 pW n 1 pM,B-US n 1 pM,US n 1 pR,US y y# 8 4 0 0. 19 0. 33 0 1 3 1 0. 2 0. 48 4 1 3 0. 66 0. 78 2 6 3 0. 65 0. 55 4 6 6 0. 31 0. 99 6 0 5 0 0. 99 0. 99 0 2 5 4 0. 37 0. 07 1 8 n 0. 99 0. 99 3 3 0. 00 0. 97 5 3 0. 98 0. 87 0 3 0. 52 0. 89 4 3 0. 42 0. 69 2 0 0. 22 0. 90 9 1 0. 55 0. 89 5 1 0. 93 0. 92 5 8 0. 75 0. 60 25. 499 1 1 I(1) symm . . . . I(0) symm 1 26. 032 0. 38 0. 00 I(1) symm 0 # Unit Root 5 0 8. 87 q y 4 Bartlett’s White Noise pX,C Asymmetric Adjustment 1 0. 97 Lags Lags n 0. 95 0. 32 pX,B 0. 59 0. 53 1 8 1. 21 n 1 0. 15 pG,C 0 1. 31 1 0. 99 2. 62 n 0. 19 0. 19 Trend 1. 80 pG,B Bartlett’s WhiteNoise s Asymmetric Adjustment Conclusion Unit Root Analysis of Series in Levels Analysis of Series in 1st Differences Series 29. 849 26. 732 28. 028 0 0 0 # 28. 842 32. 509 27. 076 29. 196 I(1) symm I(1) symm I(1) symm I(1) symm I(1) symm I(1) symm I(1) symm 28 5 5 4 ## 1 6 â€Å"Unit Root† contains the F-statistic for the hypothesis that the series has a unit root. â€Å"Asymmetric Adjustment† contains the p-value for the hypothesis of symmetry. â€Å"Bartlett's White Noise† contains the p-value from Bartlett's periodogram-based test for white noise.The null is that the error terms are white noise. # indicates that the lag-length selected by AIC did not result in white noise residuals and increasing the laglength did not amend the problem and the lag-length was hence decreased until the indicated number of lags. ## indicates that residuals from the regressions with the first difference of relative income fail Bartlett's periodogram-based test for white noise regardless of variations of the number of lags and the lag-length is chosen by AIC. Table 2.Rank for VECM(1) with nominal prices and relative income Trace Test Maximum-Eigenvalue Test 5% 5% Test Critical Hypothesized Test Critical No. of CE(s) Statistic Value Prob. * Statistic Value Prob. * None 232. 686 228. 298 0. 031 49. 706 62. 752 0. 486 At most 1 182. 980 187. 470 0. 083 46. 246 56. 705 0. 367 At most 2 136. 734 150. 559 0. 230 36. 528 50. 600 0. 617 At most 3 100. 206 117. 708 0. 372 31. 817 44. 497 0. 570 At most 4 68. 389 88. 804 0. 570 21. 460 38. 331 0. 885 At most 5 46. 929 63. 876 0. 556 19. 020 32. 118 0. 728 At most 6 27. 909 2. 915 0. 628 13. 839 25. 823 0. 736 At most 7 14. 070 25. 872 0. 652 8. 642 19. 387 0. 761 At most 8 5. 428 12. 518 0. 536 5. 428 12. 518 0. 536 Trace test indicates 1 cointegrating equation at the 5% level. Max-eigenvalue test indicates no cointegration at the 5% level. * MacKinnon-Haug-Michelis (1999) p-values. 29 30 Table 3. Error Correction Parameters ? pW 2. 04 pM, US 0. 52 pM,US3. 68 pX,C 2. 33 pX,B 4. 20 pR,US 0. 99 pG,B 1. 73 pG,C 0. 96 y -0. 16 CIV1 (1. 64) (0. 44) (2. 92) (2. 09) (3. 04) (1. 59) (0. 94) (1. 11) (0. 97) EC ? N 0. 99 Y 0. 07