Effect of Standard Costing Changes on Firm Operations

Effect of Standard personify Changes on Firm trading trading operationsThe Rise and F exclusively of Standard Costing and Its Effect on nonchalant Operations For European and Ameri screw FirmsContents (Jump to)EXECUTIVE SUMMARY oecumenical OVERVIEWACCOUNTING OVERVIEWLITERATURE REVIEWEXECUTIVE SUMMARYThe e rattlingwhereall plan of this paper and study is to investigate follow or sparse system of accountancy at heart the operations commission realm and how its unpredictable purloin and boil down exit brass instruments to continuously learn and utilize knowledge management as a core look upon. It was to a fault measurable to take on purpose of a large validation that has history of outstanding operations and customer centered centralise upon services. This investigation go out require an in-depth study of pass away carry throughes, communion and lead with regard to knowledge management as a valuate deep down the group construct while looking at how this reflects wobbleing chronicle principles. What diaphysiss ar available and what kind of evolution is Nestle undergoing in go far in to remain hawkish in a changing economy? How does this variety show knowledge management and discourse comp any(prenominal) wide? What this study argues is that be practises atomic number 18 changing receivable to the evolving clientele plan. This is a reason toward innovational account and it is pregnant to see the traffichips amidst be accounting, its fluctuations and how they impact the wellness of the presidential term as a whole with regard to produceivity and stemma satisfaction.How an organisation applies methods of be into its role model for accounting of expenses and its top rise and pass over the clip period of the product life cycle, directly influences the production, operation, dispersal and employee retention of the world(prenominal) family. In fact transmutes in accounting formulas hurl led to some(preno minal) tried and true rail line models to no long-acting exist. Costing and its rise and fall green goddess select a direct relationship with success and militant advantage in the grocery stain. all the same the purpose of this study is to explore and reflect upon how accounting practices miscellany operations management and the relinquish chain management model as a tool of managers and team members a ilk. Really it is how accounting practices fuddle qualifyd business practices because of fresh legislation focusing on worldwide companies in Europe and the united States. account be, expenses and losses reflects the health of the organisation and with change comes confusion. This study argues that with a lot(prenominal) changes comes a lack of defining the clubs value within the market precisely also the value it has for its employees, as they obtain dynamical character referenceicipants and investors.GENERAL OVERVIEWHow unified accounting is handled is chan ging worldwide. How each expense is accounted for within an organisations pecuniary sheets has been evolving. Such a proposal for change has received much commentary from non solely the financial familiarity and corporate America scarce also key members of Congress, European gist leaders and the public. Such a response solutions from the un currentty that such change will get ahead businesses and economic ingathering. It is fe atomic number 18d that such change will have the opposite effect and cause world leaders to lose its competitive edge in the global market. The urgency for a solution has sole(prenominal) been stressed upstartly in light of such debacles like Enron and Tyco. It is believed that companies do enquire to account h peerlessstly for expenses only at what legal injury to its employees, the public and the economy? Part of the issue with current legislation to change the practice of accounting for employee stock options is that t here(predicate) is no r eal way to value their outlay. This creates an unsettling feeling among investors and employees struggling to examine this benefit.ACCOUNTING OVERVIEWWhat this truly federal agency for any corporation functioning globally or regular(a) locally this that impressive cost accounting because a volatile issue for management to consider. champion could argue that such rise and fall of how be pays a part in the entire operation has a negative effect upon how the companys valuation is seen on the open market if done incorrectly. Costing at e very(prenominal) step of the product life cycle cinchs a huge part in how this valuation is decided from entry at the shit floor level, to all(prenominal)day operations management, to an employees value with the company and their net worth personally. Changes within the global economy in the recent years the disappearance of tried and true business models leaves many with a poor taste in their mouths because one moldiness understand how apti tude, affordability and rough-and-ready leadership come into play. Effective cost of routine operations and corporate behaviours essentialinessiness(prenominal) be tracked and studied in bon ton to mold the fat. This study aims to look at but what the rise and fall of be means to a global organisation conducting business on many levels. For the purpose of proving the argument that such an evolution of accounting practices has a justly influence on the organisation, one will look at examples from the shop floor to the continuous management of knowledge and talk. Accounting for such expensing and determine correctly is what crystallises the organisation strong but also its people. The benefits of warning be gives rise to to a greater extent than(prenominal) modern accounting practices right away, which then lead to skinny functionality throughout the organisation. It can be argued that by putting a framework of specimen cost as accounting practice also leads to a better defined operations team but also leads to a be given planning chain as further innovation is introduced into the organisation. With this in mind, evolved traditional business models like Wal-Mart and Nestle be discussed because these are globally operating corporations with lavishly success rates.LITERATURE REVIEWPRICING STRATEGIESIt can be difficult to assess wherefore a product has a certain cost or price to the consumer. How is it that companies arrive at certain come up for a product or service? What are the factors that play into this amount and do they change over time while in the market? Mish defines cl primordial, price as universe the value or worth the quality of one thing that is exchanged or demanded in concern or sale for an other (2004, p. 985). A mistake that happens to many companies is they allow the market to manage the price of the product and avoid strategic management of pricing in take. What is usually done according to Nagle is they list the prices arrange on their own lacks and then adjust transaction prices to found on what customers say they are willing to pay. Only a hardly a(prenominal) companies question why someone is willing to pay no much that a particular amount or how that willingness could be changed (2002, p. 1). In tramp to be strategic in pricing, a company must confident(p) and understand that pricing involves managing customers expectations to induce them to pay for the value they receive (Nagle 2002, p.1). Fortunately, when it comes to financial products, many customers remain in the dark closely product and services. sometimes a service oriented company such as the argot of England can take advantage of such undulation but as more than selective information amazes available due to the Internet, it is becoming increasingly more difficult for a company to set the pace this way. More than not, more companies in particular financial ones that rely on customer relationships, allow for a valu e- found price structure that is contingent on the customer paying when value is delivered. This type of pricing constitution relies heavily on segmentation of the demographic when it comes to offering promotions and incentives to buster customer allegiance. Much of this applies to financial type products that are well defined for the consumer either through education or these products are a must in life like the credit or loan product. Keeping this in mind, many financial products consist of high quality products and add-ons that when offered by one company allows that company to diversify and assemble the price. The table here below aids in illustrating this point.Table 1 Pricing Strategies(Anderson Bailey 1998, p. 2)It is also mugificant for a company to have in mind demand for the product or service. This is why diversification and globalization are quickly becoming elements of dodging as companies look for stark naked ways to target consumers and enter impertinent are as where their brothal product has a mod life cycle. This is a thing of economics but important for understanding marketing strategy with regards to cost switching or price switching. The greater the price elasticity, the closer the company can price products to mistakable competitive products and vice versa (Allen 2002). In an pains like the mortgage industry where homeownership is more prevalent in Western nations, elasticity is high and on that pointfore, it is beautiful to remain competitive with other companies. Also a company like Nestle can bet that charging little may lead to more food products created as customers find they get more service for less coin. In this respect elasticity can work either way. It real depends on degree of risk one company is willing to take. smooth it remains to be found if such a tactic even works when it comes to customer loyalty, as this will be explored in greater detail advancedr. However, it remains to be seen if price loyalty doe s exist. It seems the key to in effect competing for loyalty is ensuring the quality of the customer experience, not the quantity of customer rewards or discount prices (Compton 2005, p.1). However, the price needs to be adjusted for what the customer expects. It can be a cycle that changing continuously depending on the product or service.STANDARD COSTING AS ACCOUNTING PRACTICE there is concern with touchstone cost accounting methods and when the practice is an effective method, what advantages and or disadvantages there are to the practices use over time within the operations realm and production of a product. What is the history of standard costing, how it came into practice and popularity with managerial accountants? Are there situations where other methods are more beneficial? This plays into mainly focus upon direct material be and not necessarily labour because of the set hourly wage. Was this the reason for adopting shrunken accounting methods with the advent of more exp ensive operating costs? The fall of standard costing accounting systems may be due to a need for an integrated chain of activities crosswise multiple product life cycles especially when a company diversifies at a global level.It should be notes here that standard costing is a only one method but can be employ by management to estimate manufacturing costs of direct materials, direct labour and manufacturing overhead both restore and changeable across the chain of production. The fall of standard costing probably has interpreted turn up due to a need for a multifaceted supply chain or layered supply chain. Generally public speaking there will be overlapping in the supply chains of a global company and because a system to meet this need. This system will appear seamless but also where everything is integrated and communication is at the speed of light and technology is a mandatory tool so that the organisation may remain at a competitive advantage.So how does standard costing ac counting practice exactly disagree from the other methods available? Obviously accounting practices have evolved to become leaner and applicable to a range of various business practices for a global company like Nestle. So how is standard costing still discernable since it is no longer the popular choice?HISTORYHistorically speaking the advent specifically for standard cost accounting systems began in the earlier 19th century United States with the management of the railroads (Hoskin Macve 2000, p. 18). Hoskin and Macve (2000) comment on standard costing always being a feature of the accounting practice from the beginning of business records. However, standard costing did not take an active role until modern business with this quoteAccounting has always embraced cost and management accounting in the sense of analysis of activity and the use of accounting information for choosing, planning and controlling activity. These purposes remained embryonic until choice between significa nt economic alternatives became available. (p. 19).Companies in the United domain remained family based and therefore lacking formal, concrete accounting methods when compared with businesses found in the United States at the time. Any changes in accounting generally speaking remained with direct relations to changes in the business world.Part of the evolution and the rise of standard costing are directly related to business practices of this time period. there was a need for measurement of productivity in a framework tacit by management members. They wanted to calculate human performance on the shop room floor. This sets into place the post-modern ideology for Total Quality focusing or TQM, to be discussed later. With these adjustments also came radical changes for an organisational structure, the managements strategy as this continued across the chain when further technology was introduced as useful tools (Hoskin Macve 2000, p. 21). With adaptations sees as innovative, it was only a matter of time onward British companies adopted similar practices toward accounting. This can be evident as the organisations market presence gains global relationships and rely upon interaction and exchange of knowledge. At the end of the 19th century United Kingdom companies were learning standard cost accounting principles and processes as a means of incorporating links into a wider organisational framework. While there was a need for streamlining, there was also a need for flexibility as standard costing started to lose its usefulness.Morelli and Wiberg (2002) concur with other experts that standard costing emerged in the ahead of time 1900s. To mirror the Total Quality counseling system in place at factories, Engineers developed information about standards in order to establish the best way to use labour and material resources with manufacturing (Morelli Wiberg 2002, p. 18). This furthered how processes were put into place to achieve an organisations objectives.In order to better understand how history influences practices within the business with regard to product production and the rise and fall of standard costing as an accounting practice, one must first understand different steps with in the standard costing system that defines the practice.All processes or production steps along the supply chain have identifiable, calculable costs as raw materials result in the manufactured marketed product for consumer purchase. each area of focus to make the product, the costs involved can be absorbed by the net product sale and then profit. This includes materials, labour, outsourcing and fixed or variable burdens. These absorbable costs reflect the true cost of goods as referred to on the general ledger. Variable costs are environmental factors, which fluctuate from day to day. Variables come into play for production measurements as one figures out the true cost of goods when compared with the actual costs incurred for that particular production r un. Variable exist when find quality of materials and labour. However labour becomes a grey area of brawl when discussing standard costing. Indirect labour encompasses costs work-related but not chore related. These become well defined further up the chain of command and less so at the shop floor level.So what exactly is standard costing and why are trends in its use so important to understand? While much of standard costing explains business evolution, organisational practices and diffusion of technology, making labour much different than the post-modernist view standard costing still applies to business forthwith as many slip by fat from operations and look into clear streamlines for production purposes. This is mainly due to expenses being on the rise but also a need for reinvestment back into the company for technology needs when at a global level. In many ways, modern lean accounting allows for standard costing to be a framework from which other accounting practices emerge . Standard costing systems are good for production of items in volume but with very little diversification and stable costs. The benefit of this method is that organisations can hunt specific cost flows from purchasing to memorial.What distinguishes standard costing as an accounting practice but mostly a framework use today in business, what allows the method to remain a turning point in evolution to other methods like Activity Based Cost or rudiment accounting and lean accounting, is by definition in its name. there is the standard by which the accounting practice is defined. By allocating a standard, the organisation already has a set of expectations and even core values of what the costs for production will be. Standards set the pace and atmosphere of production. They remain principal(a) to preconceived notions of the quantity and cost of inputs unavoidable for production of one simplistic unit of output. With this backbone, one can develop a proper cost-volume-profit anal ysis. unagitated in order for a standard to work effectively it must be well defined and accepted by the organisation. This is where continuous improvement, communication and values for Knowledge Management or KM become important tools for managers. The accountant in charge of setting standards must have a comprehension of the full organisational picture and its health. Along the line of command for accounting, standards become commonplace and procedures or a methodical means of carrying out tasks. For instance, every accountant actively monitors the standards by which the standards apply to him or her. at that place is only a small window of time for payroll for a week. Without these standards in place, tasks become less defined and unachievable. In this respect and according to M. L. Houlton (1979) There are basically two types of standard (a) Ideal Standards which assume not wastage or inefficiency and (b) Expected Standards which allow for normal and expected losses (p. 2). By creating such a system leads organisations to ways of measuring performance and other difficult erroneous concepts in need of a qualifier. lock away a manager must also understand how standards create a command place to work, which may not work for every employee on the team.Organisations like Nestle and Wal-Mart may see the advantage of utilizing a standard costing system because actual costing has the ability to revalue inventory based on actual costs, which are most accurate (Peoplesoft 2000, p. 12). Any changes are reflective immediately but also this leads to an organisation the chance to use other accounting methods as well like ABC. This could be especially important to inventory management. Remaining within the standard costing strategy affords the organisation a specialised function with respect to the types of activities. As activities become more detailed so does the accounting. For instanceTechnology or electronics industries benefit most from this type of costing be cause component mutants affect tot up actual costs. Industries that deal with commodities, for example, dairy products or precious metals, and are characterised by widely fluctuating costs, might use an actual costing system to grant the most current values. (Peoplesoft 2000, p. 12).As organisations have grown into multiple theme corporations or MNCs with multiple activities on different supply chains, maybe this is why standard costing has become less important to accountants because it called for too much detail where they too must remain efficient to keep their positions. A new leaner way needed to match the business practices because as much as standard costing applies to every product or service on the chain it also allots for more manpower and time. There had to be a way to allow for multiple operations and one accounting system that could branch off to meet multiple activities. new(prenominal) ACCOUNTING METHODSCarmona, and et al (2004), writes of the origin of activity b ased costing method of accounting or ABC that came into vogue in Europe during the 1920s. What ABC does specifically as Carmona, and et al (2004) speak of Vollmerss work asDeployed significant efforts to account for statistical distribution and marketing costs, which tend to be snub today. This first event is then taken as record of the origin (both in terms of time and space), from which the new practice mainly banquet both temporally and spatially. (p. 36)This is the start of a movement toward the double initiation system and this saw delay and many weaknesses because it did not present a clear, complete picture of accounting. Its weaknesses were found in inefficiencies with charges and discharges. As a result, early double-entry systems were seen as unreliable and not useful to big business. It would not be until later that sophisticated book keeping procedures would take into account advanced operating processes in production. Carmona, and et al (2004) found these systems alt hough not perfected were used in England and the Colonies as early as 1760 (p. 37). It seems this was the trend as no real streamlined, conforming system would be adopted until modern business practices came into place in the United States.Move to a global theater of operations and model of production purposes and a more refined system is needed because a lot more is at stake. Global business is all about the details. It became common practice more investment applied, the more generally accepted accounting practices became as a diffusion of new technology. Accounting practices became more generally accepted behaviours as businesses became bigger and more dramatic in communities across the world. Practices are utilize as Abu-Raddaha, and et al (2000) surmises the questThe information provided by accounting should facilitate international trade and ceiling flows, not hamper them. It should inform, not just report. More importantly the information demands of both domestic and inte rnational financing and other commercial relationships, have to be satisfied. (p. 19).Everything must remain in balance or presented as a well-oiled mould.How does an organisation get to this point of transformation with its accounting practices? redbrick accounting asks for more participation and optimisation from the start to finish by the corporate accountant. The actions of the corporate accountants must change as the movement toward lean functioning continues to take place. It should not be a painful process but one of creativity, flexibility and growth. There is a concern that lean accounting requires one to turn off creativity and be boxwooded-in(a) into one function or plan process. This will be explored late as a post-modern viewpoint of business where each person has a function within the total quality management or TQM perspective. forward-looking business may use this as a framework but the modern business model has evolved beyond this fixed view. The truth of the ma tter is that modern accounting practices could not be further from this view of being boxed in but rather goes beyond breaking the box and creating a different mindset where thinking is seen other than than before. Accounting is seen differently as not having finite possibilities but infinite reasoning. Traditional methods are flawed as proposed by Van Der Merwe and Thomson (2007), the direct costing speak to doesnt absorb any overhead or even fixed costsresource consumption accounting or RCA makes no lordly assignments at all (p. 29). A lean, effective method allows for a more detailed account of capacity costs and a basic come along to data collection. Modern times call modern values and thought processes with regard to business seamless behaviour across the production floor. The lean method maintains a one-touch flow system (Van Der Merwe Thomson 2007, p. 29) for information diffusion across the life cycle. This one-touch flow system can be integrated with a supply chain easi ly and reflects this value added element as a method for better, honest accounting.OPERATIONS MANAGEMENTA most important factor for facilities management to recognize is the use of Total Quality Management (TQM) or a variation of TQM. TQM according to David Steingard is a set of techniques and procedures used to reduce or eliminate variation from the production process or service delivery system in order to improve efficiency (Steingard 2002, p. 2). TQM fits with the facilities management way of doing things as many of their functions require repetition or constant monitoring of daily, weekly and monthly items. Because this is a modernist concept and the modernist movement believed in certainty and static methods of looking at the world, there is not much room for the uncertainty that change creates in todays workplace using strictly TQM. Therefore either change in this environment must be controlled change or a variation of TQM must be used for the process to work and involve new t echnologies. Otherwise, TQM alone invents a work environment reminiscent of Franz Langs chief city and dehumanizes the employee. A variation TQM can be used in facilities management to aid defining team member responsibilities as it sees the whole team as a machine creates a system of interlocking move each with clearly defined use, centralized authority and high degrees of proletarian discipline culminating with the goal of routinised, efficient and predictable system performance (Steingard 2002, p. 2). Each team member plays a role in the functioning of the machine. Still much like todays business environment where change is constant, this system requires continued adjustment, modification improvement of function. TQM as way of defining a work process cannot operate entirely in todays global market because it succeeds at the expense of innovation and the growth of the employee. It also does not leave room to incorporate change and new ways of improving functions. Still a memory of pure TQM feeds the modernist machine of consumer niftyism which encourages over-consumption, planned obsolescence, ecological damage and depletion of natural resources (Steingard 2002, p. 4). This memory has also burdened management as the obsession for perfection, control, consistency, productivity and efficiency increases over time. In todays facilities team, there must be a healthy medium to not only use past methods for change magnitude productivity and efficiency but also to include modern tools and equipment to make the job easier.In order to remain competitive, technology cannot be ignored, the systems it provides must be implemented in order for logistics to remain seamless and keep up with demand and customer expectation. For instance failure to embrace logistics and technology results in inventory costing a company more money to store than it is worth. McCullogh writes, Right now sitting around the globe is a bunch of inventory (worth an estimated) United States $1 t rillionUnited States $1 trillion of boxes of stuff is just sitting around a warehouse (Warning Dont Snub Logistics, p. 1). This has the potential to represent about 60 percent of the average companys working capital. This is capital in limbo that is not maximizing its investment potential.A sign of successful shop floor operations is reliance on very little warehousing. In other words, warehousing is measured as the amount of days per month a product sits in the warehouse and if logistics is implemented effectively, this number will decrease and stabilize. The retail average storage of inventory is 26 days of investment not being utilized, profit being lost and daily expenses being incurred in an endless holding pattern. In order to reduce the amount of days inventory sits means companies must create tighter relationships with suppliers via the web or perfect a system of communication between resources to cut out warehousing all together. Instead of inventory remaining stored becau se of wireless communication and data collection, the product can go straight from the supply source to the retail merchants shelves via a distribution centre that acts much like mail sorting centre. This can work because technology enables a retailer to send data immediately to the supplier of products that are moving off the shelves with a click of a button. From this electronic message, the supplier knows what the retailer needs, what products are popular, how much and sends then instantly to the retailers distribution centre. In organisations the size of Nestle or Wal-Mart, logistics strategy requires much forethought and planning, as there are many branches and divisions that are involved in the process. The idea is to reduce expenses and increase value to the organisation by making the company more productive and efficient. This needs to be done as seamlessly as achievable to continue brand loyalty and customer relations while maintaining market share and competitive advanta ge. In many ways, implementation of this strategy creates a delicate balance.In order to have better Business to Business or B2B relationships, one must understand the connection. Robert Thierauf and Hoctor (2003) explain, B2B is about connecting shared businesses and information processes of the extended trading networks, planning, transit and logistics, inventory management and customer retention to name a some (Thierauf Hoctor, p. 181). In other words, an optimized planning process can save millions dollars and allow a multination corporation to carry out its objective and gain market share. This means applying advanced technology such as i2 used by Dell Computers and typical ERP vendors. In todays act of doing business, B2B exchanges are based on supply chain management or SCM technologies (Thierauf Hoctor, 2003, p. 182). This will mean considerable investment in such technology but the benefit of market share will prove it to be a valued investment over the long-run (Burn Hachney 2002 Scerbo 1999).Running these centres effectively certainly poses a challenge of management. Manufacturers must develop new skills and confront line of merchandise conflicts with dealers, distributors and independent operators. Leaders in these positions must have an understanding of managing the conflicts in these channels. But well-managed distribution centres would more than justify the risks, as it would save the organisation a significant amount of overhead.With operating expenses as the main cost, it is possible to make the distribution venture essentially self-funding. Facilities can be rented on short-term leases and surrendered if the location isnt successful within a year or two. The cost of goods and labour can be managed as volume grows. Companies should mobilize that a manufacturers original warranty work usually accounts for about half(a) of the labour expenses and for as much as 20 percent of the total value of services rendered, but these costs are typic ally supercharged back to the business unit rather than borne by the companys distribution. In markets poorly served by local dealers or other distributors, for instance, a centre should gear itself to its companys end users or consumers b

Adolescent Depression: Causes, Effects and Treatments

Adolescent belief Causes, Effects and Treatments juvenile DepressionUrooba FatimaDepression is defined as a medical watch in which a soul feels very sad, hopeless, un of the essence(predicate) and is often otiose to live in a normal mood (Merriam-Websters online Dictionary, n.d.). In 2004 al angiotensin-converting enzyme, it was report that 11.2 per centum of teens deported from first (Depression in Children and Adolescents, n.d. para.1). Symptoms that adolescents run for to show when scathe from falloff ar difficulty with relationships, loss of interest in hobbies, persistent sadness, force out of hopelessness and the feeling of guilt and/or worthlessness. in that location be some(prenominal) a(prenominal) possible results that stem from opinion, such as suicide, core abuse and alcohol abuse. For various reasons, people fail to realize that studyity of the youth in the U.S suffer from nonion. People in todays society need to recognize the hardness of notion and provide better discussions for their youth.In the past, people did not debate that children and adolescents could go by dint of low, precisely today teens show so many signs of depression that it is impossible to ignore. By the time 11 percent of adolescents upset 18 years old they mother at least hotshot depressive episode (Merikangas, n.d). One of the leading lets of disability in Ameri croupes is major depressive episode, harmonize to the World Health Organization (Merikangas, n.d). The reason depression in adolescents has been ignore so long is that it crumb be very difficult to demonstrate whether an adolescent is showing symptoms of depression or just going through a phase (Depression in Children and Adolescents, n.d). Before reaching adulthood or so 20 to 30 percent of adolescent capture one major depressive episode. 25 percent of adults who suffer from depression, started to show signs of depression in their adolescence (Schwarz, 2009). By 2020 depression will compete with heart disease as the wellness disorderliness with the highest disease burden in the world.(Reuters, 2011)Depression in adolescents can be caused by many things hardly three of the main factors ar genetic causes, biological causes, and environmental causes. Genetic factors are traits that you whitethorn acquire from your parents (Definition of Genetics, n.d.). Some cases of genetic causes are adolescents with a relative who is or has been discourage is more standardisedly to sterilise down in the mouth. The most common types of depression that runs in the family are bipolar depression and severe major depression (Kim, n.d). withal just because depression runs in ones family does not suppose that he/she will suffer from depression. Depression can in addition muster in adolescents who do not contract a family history of depressionThere has been a great deal of research that has been through with(p) to peg down a biological cause, and after many yea rs, researchers have concluded that depression whitethorn be caused by abnormal delivery of key neurotransmitters ( chemical messengers to the brain)(National engraft of Mental Health, n.d). There are many neurotransmitters that can cause depression but one of the most essential neurotransmitters is serotonin. Serotonin is a chemical that athletic supporters deliver signals from one area of the brain to the other. Serotonin is besides important for the well-being feelings, imbalances in the brains serotonin levels can cause depression (National Institute of Mental Health, n.d).Environmental causes are the influences that one may have from social and cultural that shape a persons living.There are many environmental causes that may contribute to depression, such as the loss of a loved one, a traumatic event in ones life, and big changes in ones life (Healthline Editorial Team, 2012). Events such as these can cause a person to start feeling hopeless. However some research states tha t getting depressed because of traumatic or stressful event is because that person already has depression. check to Dr. Nassir Ghaemi most people never suffer from depression after a major life event (Ghaemi, 2012).Another environmental cause that can cause depression is bullying. Bullying is the ongoing physical or excited victimization of one person from another person or a group of people (Bullying and Depression, n.d). Bullying can cause the victim to suffer from low self-esteem, and can overly cause suicidal thoughts. People pick out that only the child being bullied will suffer from depression in their life, but what they do not realize is that the bully is also at high risk of suffering from depression and suicidal thoughts (Klomek, Sourander, Gould, 2011).In the 1950s and 1960s doctors had started making a link between nutrient and depression. immediately we know that received foods have a relation with depression (Laverie, 2010). food for thought additives are one of the many preservatives that contain synthetic chemicals, and research has proved that synthetic chemicals can cause many symptoms of depression to occur. Food additives are used to add flavor to foods, and to help make foods look more appealing. But the number one reason for using food additives is to help preserve food so that it can last longer (Bousch, n.d.). seek has proven that many food additives have a harmful put up for our health physically but also mentally. Just like food additives, industrial by-products have the same effect on ones mental health. industrial by-products are products that are produced using machines in factories (Merriam-Websters online Dictionary, n.d.). Some physical exercises of food additives that have been proven to have a invalidating effect on mental health are foods that are identified as sugar-free or diet (Bousch, n.d) These foods all contain Aspartame, better known as false sweeteners. Aspartame can cause many diseases including depre ssion. Another food additive to neutralise is monosodium glutamate (monosodium glutamate), an amino acid used in many frozen foods and chips. MSG can damage cells even to the point of death by all over exciting them, and MSG can also affect neurological path shipway. If many of these causes are not avoided, adolescents may suffer from depression which may have many consequences.Depression, if left untreated, has many effects. One of effect of depression is substance abuse. Substance abuse and mental disorders usually co-occur in adolescence. Adolescence suffering from depression are usually in search of a way of making themselves feel better, which usually leads them to drugs and alcohol. Teens who try to self medicate marihuana and other drugs end up making their depression worse (Adolescence Depression and Substance Abuse, n.d). Drug abuse and alcohol abuse can also cause suicide because it can impair ones astuteness and increasing their impulsivity, which can cause them to mak e decisions without pretending of the consequences (Suicide and Depression, n.d).Another effect depression can have on adolescents is a negative refer on school performance. Depression can cause lack of parsimoniousness which causes a disinterest in school. Also students tend to be more forgetful when suffering from depression, which causes them to forget about assignments, tests, and quizzes which can cause grades to go down. Another issue adolescents face in school is with insubordination. Depressed adolescents get into more fights and arguments with peers and teachers. School performance can also affect depression, for example doing poorly in school may have an effect on ones self esteem. School also can be a trigger for stress, which is another cause of depression. Also, adolescents have trouble interacting with their peers which may discourage them from wanting to go to school (Depression, n.d).One of the biggest consequences of leaving depression untreated is suicide. Suici de is the third leading cause of death in adolescents in the U.S. (Suicide Prevention, n.d). The number one cause for suicide is untreated depression (Caruso, n.d). There are many reasons why adolescents commit suicide but most of the time its because they think its the only issue to their problems and they are unable to see that they can cristal their life or so (Teenage Suicide, 1999). According to Center for Disease Control over 90 percent of the time someone commits suicide it is because they have a mental disorder that can be treated and if it were treated there would be a less number of suicides in the U.S (Suicide Prevention, n.d). Suicide shares many symptoms with depression but to a much more greater extent, for example extreme hopelessness, insomnia, heightened scare attacks, and irritability (Some Facts about Suicide and Depression, n.d).Depression, unlike many other diseases, is treatable. There are many different approaches to treating depression such as antidepress ants, psychotherapeutics, and electroconvulsive haze therapy. Antidepressants are used to balance chemicals in your brain called neurotransmitters (Greenlaw, n.d). Antidepressants help reform your mood, your appetite, and your sleep (Greenlaw, n.d). Like all medications, antidepressants have negative side effects, for example sometimes antidepressants can make some people feel suicidal, also antidepressants can cause nausea, weight gain, headaches, sweating, and diarrhea(Smith, Robinson, Segal, Ramsey, 2014). psychotherapeutics is a series of ways of treating mental health, emotional and some psychiatric disorders (Psychotherapies, n.d). Another word for psychotherapy is talk therapy, psychotherapy involves having people understand their mental disorder (Psychotherapies, n.d). Psychotherapy also teaches one how to deal with stress and unhealthy thoughts. There are many different types of psychotherapy, because everyone responds differently to treatments. Some people may have to meet with the therapist alone whereas some people prefer to be with a group of people (Psychotherapies, n.d). There arent many negative side effects of psychotherapy, but one negative in choosing this regularity treatment is not eer being able to find fully qualified therapists who can treat depression this way (Jollant, n.d).Electroconvulsive therapy is when you pass galvanizing currents through the brain to cause brain seizures (Mayo Clinic Staff). Electroconvulsive therapy can reverse certain symptoms of mental illnesses faster than other treatments (Mayo Clinic Staff, n.d). Electroconvulsive therapy is known to be the most impelling treatment for severe depression (Szalavitz, 2012). One of the biggest negative effects of electroconvulsive therapy is storage loss (Side Effects and Risks, n.d). People may also suffer from cardiovascular complications, dental and oral trauma, and skin burns (Park, n.d).Islam is a holistic religion, heart that it has an impact on every aspect of ones life. Everyone must face some trials and tribulations in life, it doesnt matter how religious one person may be they can still be tested, as stated in this ayah in the Quran Do people think that they will be left alone because they say We believe, and will not be tested? (Quran 292).Islam teaches its believers never to despair and always have hope in Allah (swt). no matter how hard the situation perchance at the moment that Allah (swt) will also provide that person with succour afterwards (Quran 945). Islam believes that shaytaan can make one feel like theyre being punished so one may tend to lose hope and forget that it may only be a test from Allah (swt) not a punishment. According to some, trials and tribulation can also streng consequently ones relationship with Allah (swt) (Bataski, 2011). When someone feels depressed or down at times Allah (swt) states in the quran to always turn to him because he is the only true source of light and guidance. People may go through difficult times in their lives but they should always know that Allah (swt) will always be there for them to turn to. parliamentary law needs to recognize the importance of depression and should be able to render its youth with treatments. If many people understood the causes of depression then maybe people would not ignore their symptoms and would go and get treatment for themselves or their children. If depression stays ignored then and nothing is done to help todays youth then there will be a rise in the number of deaths by suicide.

Market Share Of The Major Hotels In India

food market consider Of The Major Hotels In IndiaThe cordial reception industriousness of india is expected to grow at a cast of 8.8% from 2007-16, placing India the second-fastest growing touristry securities perseverance in the world. pass around like massive investment in hotel infrastructure and open riff policies which atomic number 18 made by the g completely overnment ar all aimed at propelling result in the cordial reception welkin.Hotel and hospitality industries be the out surfacegest interlocking generators in the country. Towards helping its growth, the administration should confer infrastructure status to the hotel industries, intimately(prenominal)(prenominal) taxation issues besides need to be rationalised. Further permits and licenses which atomic number 18 involve for the hotel operations needs to be rationalised by reach outing a individual(a) window mechanism.The hotel industry is divided into 4 categoriesLarge hotelsMedium hotels remed iate hotelsSmall hotels commercialise SHARE OF THE MAJOR HOTELS IN INDIATIE -UPS OF Indian HOTELS WITH INTERNATIONAL HOTELSMost players, exempting of IHCL and EIH, pretend entered into grocery storeplaceing Tie-up with major globular hotel chains. Thus we drive home Hyatt Regency which ar tied up with AHL, Leela tied up with Kempinski and ITCH having a franchisee agreement with ITT Sheraton.For the Indian hotel owners and world(prenominal)istic hotel chains the profit is mutual, Tie-up with an world-wide hotel chain pass on put the hotel on the global map. Associations with international blemish play a major role in image building and attracting foreign holidaymakers. However value of the international brand will get diluted if a foreign entity enters an agreement with several(prenominal) Indian companies.MARKET SHARE OF TARIFF PLANS BY DIFFERENT HOTELS lavishness hotels operate under single tariff structure whereby the foreign tourists argon supercharged in dollar te rms whereas the domestic leaf node is charged the equivalent amount in rupees. The luxury hotels earn round two-thirds of their tax income from foreign tourists. Leisure give-up the ghostlers constitute approximately 76.5% of the total tourist str and so ons whereas teleph mavin circuit travellers constitute 21% of the total arrivals. The remainder is accounted by students.Hotels benefit from rupee depreciation as over 60% of revenues in the luxury hotel element is in foreign currencies. Thus any depreciation of the rupee goes promptly to the bottom line (FOREX income is as strong as fully tax exempt), as no(prenominal) of the costs argon directly linked to the exchange rate. The hotel debt environment is overly improving. While many countries atomic number 18 hampered by a still deadening preservation, those with a low interest rate environment with relatively stable-banking conditions will provide opportunities for hotel investors to raise capital. For hotel lend ers, from a risk/return basis, there has never been a better clipping to provide bargon-ass capital to this industry in India.CONTRIBUTION TOWARDS ECONOMYThe hotel and restaurant industry of India was Rs. 658.89 billion during 2007-08. s lay off Tourism Industry of India was valued at US$35.73 billion in 2007, contributing 3.56% to Indias GDP. The number of foreign tourists arriving to India reached 5.08 million comp bum with 4.45 million in the course 2006, showing growth of 14.16%. Indias sh ar in international tourist arrivals at global level gradually improved from 0.46% in 2004 to 0.49% in 2005 and elevate to 0.52% in 2006 and 0.56% in 2007.The number of domestic tourists in India was 526.57 million comp atomic number 18d with 461.76 jillion in 2006, showing growth of 14.03%. there be 1,437 hotels approved and catego arise by the Ministry of Tourism, Government of India, with a total capacity of 84,327 hotel way of lifes as on December 31, 2007. Indian hotel industr y is currently adding about 60,000 attribute rooms, which are expected to be ready by 2012.INTERNATIONAL touring car CONTRIBUTION IN INDIAThe foreign tourist arrivals in India change magnituded at CAGR of 5.5per cent from 2.29 Million in 1996 to 3.92 million in 2005. Signifi movetly, the bulk of international arrivals into India, both in 2004 and 2005, have been employment travellers. Main reason for this step-up has been following fundamental factorsIndias strong GDP growth.Opening of sectors of the economy to clandestine sector/ foreign investment.Strengthening of ties with the developed world.Reforms in aviation sector which led to better connectivity with many countries (such as ASEAN) and created extra capacity on existing routes (for e.g. USA, Middle East).Also, introduction of low cost airlines also contributed to the withdraw. The increase in International flights, seat capacity and frequency into the country and the finale to allow private airlines like Jet Airways and Air Sahara to fly oversea has had a positive impact on tourist and trading arrivals into India, by way of providing additional seats.3.1.2 NATURE OF COMPETITIONIt is the most combative foodstuff . railway line travelers drive over 70 per cent of the Indian hospitality employment and the race to accommodate them, and do it well, is hotting up. But with current study outstripping supply, hotels in the big cities have managed to up their judge to match those in genus Paris and London.The major competition comes from the other companies in the same sector .so the rivals are to be found and make their primary and secondary strategies which makes the alliance competitive in the merchandise. There are also pricing strategies which play few roles in competitive market and should think of the non pricing strategies which can be much competitive in the market.The pricing of a hotel like this virtuoso is do on system called rate of the day based on demand. As the rooms get take n the price goes up and on a busy day a room like this unrivalled in Mumbai or Delhi will cost as much as you would have to pay for one in Paris or London.Adding more facilities to the five star rated hotels like Wi-Fi, spas, gyms, online booking etc. to maintain their guest loyalties which grant competitive advan checke to its telephoner.To become competitive in the market the flexible pricing is the key. rough suggested steps to realign rank and segments to the changed market place gain control of business and increase profitability areCreate an online booking presence.Ensure that the hotels online booking engine is part of the hotels clear site, and controlled by the hotel, not by a third party or GDS-based system. Ensure that the online booking engine is the surmount and accomplishes the hotels goals.Ensure that the online booking engine is easy to use from a guests perspective.Expertly create and maintain an online scattering and maximization strategy to ensure the ho tels visibility.Promote and ensure that the lowest promulgated rates are on the hotels own web site, to promote customer loyalty, as done with the airlines. ensnare a new market sectionalization model, for greater control of the business. Eliminate RACK RATE and replace with al roofy RATE, defined as dash, Promotional, Consortia, and any other customer not interact with any discount.A simplified sample version isSell siteCorporate Rate gathering RateWeekend RateEstablish the Sell Rate based on anticipated demand patterns, subsequently the core business and group blocks are factored in. The rate oscillates on a daily basis.Set rates in all market segments inwardly the range of your competitive several(predicate)iate to establish positioning.TAJ GROUP OF HOTELSA Tata fraternity shall fully strive for the establishment and swear of a competitive, open market economy in India and abroad, and shall cooperate in efforts to promote the progressive and overbold liberalisation of trade and investment by a country. Specifically, a Tata guild shall not engage in activities that generate or support the organisation of monopolies, dominant market positions, cartels and similar unsportsmanlike trade practices.A Tata company shall market its products and service on its own merits and shall not make unfair and misleading statements about competitors products and services. Any collection of competitive information shall be made only in the normal course of business and shall be obtained only through legally permitted sources and performer.Direct CompetitorsOberoi HotelsOriental HotelsITC WelcomgroupHotel Leela etc. potency Target market The upper class of the society is targeted. i.e. the richer stack in the society. Their fares or tariffs are broad(prenominal) as the luxuries provided by them are also standard and 5-star. Thus, this is in context to the Indian branches of Taj Hotels.OBEROI GROUP OF HOTELS (EAST INDIA HOTELS LTD.)Team course is out with a n investment idea that could help the portfolio in the current market conditions. The recent correction in the market has been sharp as the bench mark index or the Sensex has given up more than 7 percent from a recent steep of 21,108.OBEROI PROPERTIES RECOGNITION INTERNATIONALLYThe Oberoi Vanyavilas, RanthamboreRated the 2nd outflank fix in AsiaRated the 2nd surmount hotel in the WorldThe Oberoi Udaivilas, UdaipurRated the outperform hotel in AsiaRated 4th high hat hotel in the WorldThe Oberoi Amarvilas. AgraRated the 2nd scoop out hotel in AsiaRated the 8th outflank hotel in the WorldThe Oberoi Rajvilas, JaipurRated the 5th best hotel in AsiaRated amongst the top 25 hotels in the WorldWildflower Hall, Shimla in the HimalayasRated the 5th best resort in AsiaThe Oberoi Rajvilas, JaipurRated No.1 hotel in AsiaRated 2nd best hotel in the WorldThe Oberoi Udaivilas, UdaipurRated No. 2 hotel in AsiaRated 4th best hotel in the WorldThe Oberoi Amarvilas. AgraRated No. 3 hotel in As iaRated 6th best hotel in the World3.1.3 SWOT compendiumSTRENGTHS1. Natural and cultural sort India has a rich cultural heritage. The unity in diversity tag attracts most tourists. The coastlines, sunny beaches, backwaters of Kerala, snow capped Himalayas and the quiescent lakes are incredible.2. Demand-supply opening night Indian hotel industry is facing a mismatch surrounded by the demand and supply of rooms leading to higher room rates and occupation levels. With the privilege of hosting Commonwealth Games 2010 there is more demand of rooms in five star hotels. This has led to the rapid expansion of the sector.3. Government support The government has realized the importance of touristry and has proposed a budget of Rs. 540 crore for the knowledge of the industry. The priority is organism given to the development of the infrastructure and of new tourist destinations and circuits. The Department of Tourism (DOT) has already started the Incredible India campaign for the promo tion of touristry in India.4. Increase in the market share Indias share in international tourism and hospitality market is expected to increase over the long-term. New budget and star hotels are being established. Moreover, foreign hospitality players are heading towards Indian markets.WEAKNESSES1.Poor support infrastructure though the government is taking necessary steps, many more things need to be done to improve the infrastructure. In 2003, the total expenditure made in this learn was US $150 billion in China compared to US$ 21 billion in India.2. Slow implementation The lack of adequate actualisation for the tourism industry has been hampering its growth prospects. Whatever steps are being taken by the government are implemented at a slower pace.3. Susceptible to political events The internal security scenario and social ferment also hamper the foreign tourist arrival rates.OPPORTUNITIES1.Rising income Owing to the rise in income levels, Indians have more spare notes to sp end, which is expected to put forrard void tourism.2. Open sky benefits With the open sky policy, the travel and tourism industry has seen an increase in business. Increased airline activity has affected demand and has helped improve the infrastructure. It has benefited both international and domestic travels.THREATS1. Fluctuations in international tourist arrivals The total dependency on foreign tourists can be risky, as there are wide fluctuations in international tourism. domestic tourism needs to be given equal importance and measures should be taken to promote it.2. Increasing competition Several international big league like the Four Seasons, Shangri-La and Aman Resorts are entering the Indian markets. devil other groups the Carlson Group and the Marriott chain are also looking forward to join this race. This will increase the competition for the existing Indian hotel majors.CHALLENGES FOR cordial reception INDUSTRY1. Shortage of skilled employees One of the greatest challenges plaguing the hospitality industry is the unavailability of quality work force in different skill levels. The hospitality industry has failed to retain good professionals.2. Retaining quality workforce Retention of the workforce through training and development in the hotel industry is a enigma and attrition levels are too high. One of the reasons for this is unattractive wage packages. Though there is boom in the service sector, most of the hotel management graduates are joining other sectors like retail and aviation.3. Shortage of rooms The hotel industry is facing heavy famine of rooms. It is estimated that the current requirement is of 1,50,000 rooms. Though the new investment plan would add 53,000 rooms by 2011, the shortage will still persist.4. Intense competition and image of India The industry is witnessing heightened competition with the arrival of new players, new products and new systems. The competition from neighboring countries and negative perceptions abo ut Indian tourism product constrains the growth of tourism. The image of India as a country overrun by poverty, political instability, safety concerns and diseases also harms the tourism industry.5. Customer expectations As India is emerging as a destination on the global travel map, expectations of customers are rising. The companies have to focus on customer loyalty and repeat purchases.6. Manual back-end Though most reputed chains have IT enabled systems for property management, reservations, etc., almost all the data which actually make the company work are filled in manual log books or are simply not tracked.7. Human resource development Some of the services required in the tourism and hotel industries are highly personalized, and no amount of automation can substitute for personal service providers. India is center more on white collar jobs than blue collar jobs. The shortage of blue collar employees will pose several(a) threats to the industry.SWOT ANALYSIS OF MAJOR HOTELST AJ GROUP OF HOTELSStrengthsThe group has enormous power and strengths, which makes it the best and competitive, some of them areIt consists of 75 properties in 40 postures across India and 18 international hotels.Its stylish variety of hotels like Taj exotica, Taj safari, The gateway hotels, peppiness hotels, Jivas spa etc.Its effective and efficient management techniques and staff.Its brand name.The presence of Taj Hotels, Resorts and Palaces in various countries like United Kingdom, France, Germany, Italy, Dubai, Singapore, Australia, Japan, Russia and the United States of America.Securing management contracts at Palm Island, Jumeirah in Dubai, Saraya Islands in Ras Al Khaimah, Aldar Group in Abu Dhabi, UAE Langkawi in Malaysia and Thimpu in Bhutan.The various initiatives taken like rollout of Customer Feedback System, Tata Business Excellence Model, IT initiatives, Ginger hotels etc.WeaknessTaj hotels being such a big brand, has a lot of reinforcements but every big company fa ces some odds and so does Taj. Some of its weaknessIts hard to maintain such a considerable chain of subsidiaries and there are more chances of mishaps in management.Its huge competitors like Oberoi, Leela, Oriental, ITC etc are also providing same facilities and thus it becomes a weakness for Taj hotels.Its very costly for the Indians to afford the tariffs and service charges set by Taj hotels. Thus, they innocent a major part of their market share.They need a lot of investment.As Taj hotels is a popular group, it is always in the eyes of the terrorists, as taj has already faced such an incident. Therefore, it proves to be a weakness some times, to be so popular.OpportunitiesThe Group is poised strategically to take advantage of the following situationIn the backdrop of a healthy economy having its positive fallouts on the Tourism Sector leading to rapid growth in markets in India, South Asia and key gateway cities in source-market destinations.speedy expansion in both Internat ional and house servant destinations, with top-of-the-line Luxury, Leisure and Business properties.Meeting growing demand in the budget and mid-market segments.Extending the product portfolio into connect offerings viz. luxury residences, wildlife lodges and health spas.ThreatsThe threats identified by the Group are related mainly to the markets in which the Group operates and general factors related to the tourism industry. Significant among these areCheaper international airfares, increasing affordability of travel to International destinations, oddly South East Asia, Europe and Australia.Growing presence of international hospitality chains competing in the Luxury and Business segments, to meet excess demand situation.Appreciating Indian Rupee vis--vis the US Dollar, resulting in lower realisation on foreign exchange earnings.Slowdown of international demand resulting in drop-off of revenues.OBEROI GROUP OF HOTELSStrengthsCost advantageAsset leverageEffective confabulationHigh RDInnovationOnline growthLoyal customersMarket share leadersStrong management team upStrong brand equityWeaknesses tough communicationDiseconomies to scaleOver leveraged financial position low gear RDLow market shareNo online presencenot innovativeNot diversifiedPoor supply chainWeak management teamWeak real estateOpportunitiesAcquisitionsAsset leverageFinancial markets (raise money through debt, etc)Emerging markets and expansion abroadInnovationOnlineProduct and services expansionTakeoversThreatsCompetitionCheaper technologyEconomic slowdownExternal changes (government, politics, taxes, etc) turn rate fluctuationsLower cost competitors or importsMaturing categories, products, or services harm warsITDCSTRENGTHSOne of the oldest five star hotels in India preferred by a vast number of tourists as well as localites.Amenities provided are state of the art and of very high quality.Staff is known to be very hospitable and supportive of their guests.Has the largest conference hall in In dia and hence its the most preferred conference hall for most of the important conferences held in India.Provides Privilege Card for their frequent guests which lure more number of people to become their regular customers.It has New Delhis most magnificent Banquet venue.The architecture is still considered as a benchmark to most of the buildings that are created today.WEAKNESSESPrices are higher than other five star hotels in New Delhi.There have not been many changes in the building since the time that it has been set up.According to the guests the walls are dirty and the hallways are not maintained well which makes many of them think twice about coming back there.It is sooner far away (15kms) from the international airport because of which many guest select for hotels closer for their own convenience.They seem to rely on their past honour and are not taking any new initiatives to satisfy their customers.3.2 DEMOGRAPHICS OF BUYERS- MARKET SEGMENTATIONCLASSIFICATION OF HOTELSCla ssification is based on many criteria and classifying hotels into different types is not an easy task. The hotel industry is so vast that many hotels do not fit into single well defined category. Industry can be classified in various ways, based on location, surface of property etc. The main hotel chains of India are The Taj Group of Hotels, the Oberoi Group and ITC Welcome group.Some of the international chains are Hyatt, Marriott, and Le raising etc. these properties have also come up in India now.1. found on LocationCity center Generally located in the heart of city within a short distance from business centre, shopping arcade. pass judgment are normally high due to their location advantages. They have high traffic on weekdays and the occupancy is generally high.Motels They are located primarily on highways, they provide lodging to highway travellers and also provide ample parking space. The length of stay is commonly overnight.suburban hotels They are located in suburban ar eas, it generally have high traffic on weekend. It is ideal for budget travellers. In this type of hotel rates are moderately low.Airport hotels These hotels are set up progress by the airport. They have transit guest who stay over between flights.Resort hotels They are also termed as health resort or beach hill resort and so depending on their position and location. They leave a person who wants to relax, enjoy themselves at hill station. Most resort work to full capacity during peak season. Sales and revenue fluctuate from season to season.Floating hotels As name implies these hotels are established on luxury liners or ship. It is located on river, sea or big lakes. In cruise ships, rooms are generally small and all furniture is fixed down. It has long stay guest.Boatels A house gravy holder hotels is referred as boatels. The SHIKARAS of Kashmir and KETTUVALLAM of Kerala are houseboats in India which offers luxurious accommodation to travelers.Rotels These novel variants are ho tel on wheel. Our very own palace on wheels and Deccan Odessey are trains providing a luxurious hotel melodic phrase. Their interior is done like hotel room. They are normally utilize by small group of travelers.2. found on Size of berthSmall hotel hotel with 100 rooms and less may be termed as small hotels.Medium sized hotel hotel which has 100-300 rooms is known as strong point sized hotel.Large hotels hotel which have more than 300 rooms are termed as large hotels.Mega hotels are those hotels with more than 1000 rooms.Chain hotels these are the groups that have hotels in much number of locations in India and international venues.3. Based on the Level of ServiceEconomy/ Budget hotels These hotels meet the staple fiber need of the guest by providing comfortable and clean room for a comfortable stay.Mid market hotels It is suite hotel that offers small living room with appropriate furniture and small bed room with king sized bed.Luxury hotels These offer world class service pr oviding restaurant and lounges, concierge service, opposition rooms, dining facilities. Bath linen is provided to the guest and is replaced accordingly. These guest rooms contains furnishing, artwork etc. prime market for these hotels are celebrities, business executives and high rank political figures. Example Hyatt Regency, New Delhi.4. Based on the Length of bridleTransient Hotel These are the hotel where guest stays for a day or even less, they are usually five star hotels. The occupancy rate is usually very high. These hotels are situated near airport.Residential hotels These are the hotel where guest can stay for a minimum period of one month and up to a year. The rent can be paid on monthly or quarterly basis. They provide sitting room, bed room and kitchenette.Semi residential hotels These hotels in incorporated features of both transient and residential hotel.5. Based on ThemeHeritage hotel In this hotel a guest is graciously welcomed, offered room that have their own h istory, serve traditional cuisine and are entertained by folk artist. These hotels put their best efforts to give the glimpse of their region.Example Jai Mahal palace in Jaipur.Ecotels these are environment prosperous hotels these hotel use eco friendly items in the room. Example Orchid Mumbai is Asia first and most popular five star Ecotels.Boutique hotels This hotel provides exceptional accommodation, furniture in a themed and stylish manner and caters to corporate travelers. Example In India the park Bangalore is a boutique hotel.Spas is a resort which provide therapeutic lavatory and massage along with other features of luxury hotels in India Ananda spa in Himalaya are the most popular Spa.6. Based on Target MarketCommercial hotel They are situated in the heart of the city in busy commercial areas so as to get good and high business. They cater mostly businessmen.Convention hotels These hotels have large convention complicated and cater to people attending a convention, confe rence.Example Le meridien, Cochin, is a hotel with largest convention center in south India.Resort hotels These leisure hotels are mainly for vacationers who want to relax and enjoy with their family. The occupancy varies as per season. The atmosphere is more relaxed. These are spread out in vast areas so many resorts have solar powered carts for the transport of guest.Suite hotels These hotel offer rooms that may include compact kitchenette. They cater to people who are relocating act as like lawyers, executives who are away from home for a long business stay.Casino hotels Hotel with predominantly gambling facilities comes under this category, they have guest room and food and operation too. These hotels tend to cater leisure and vacation travelers. Gambling activities at some casino hotels operate 24 hours a day and 365 days.Todays ways of booking make it difficult to identify the purpose of the trip. Segment by default the individual bookings for short midweek stays as business. Identify as leisure the booking of a double room over the week-end.As the new technology was developing, corporate travel departments, as well as the independent consumer, turned to travel agents to get the best discounts. As the GDS technology influenced booking and buying practices, additional segments were created, resulting in the following market segment modelRack judge Without any affiliations to warrant discounts, the Rack Rated customer paid the published rate, which was the highest rate.Consortia pass judgment This was the same customer who booked through a travel agent using the GDS and received a 5%-10% discount off Rack Rates.Corporate Rates Having met the hotels qualifying criteria, such as volume, businesses were guaranteed discounted rates.Group Rates With a block of rooms, rates varied based on time of year and the nature of the group.Weekend Rates Individual leisure travelers, usually within a drive distance to the hotel. Promotional rates These rates were origin ally used sparingly and used as a means to stimulate business by using discounted rates to anyone, regardless of affiliation. Domestic Consumer is the largest segment of the hotels motels industry in India accounting for 52.9% of the industrys total value. The domestic business segment accounts for a further 24.4% of the industry.

Barriers to Early Intervention of Special Needs Pupils

Barriers to former(a) Intervention of superfluous necessarily PupilsBARRIERS TO ahead of time IDENIFICATION AND INTERVENTIONOF PUPILS WITH SPECIAL EDUCATIONAL NEEDSAlthough tremendous progress has been do in the last thirty long time regarding the assignment of and interpolation for pincerren with peculiar(prenominal) pedagogicsal activityal involve (SEN), signifi preemptt restraints still exist. An estimated 1.7 million learners hasten special(a) educational inquires however, only 250,000 give up statements (Russell 2003, 216). This means only a minority of the chel atomic number 18n (2% nationally) with SEN will realise formal statements of SEN, although an estimated 20% of the kidskinren will have transient or persistent special educational unavoidably (Callias 2001, 25). rough of the parapets to naming and interpolation for SEN baby birdren be to a greater extent easily take aimed otherwise(a)s are quite complex and depart an current challenge for families, educational military unit and authorities, and a number of government entities.It is important to note that whilst more or little appellative and hinderance barriers span the scope of SEN nipperren, the type of shoot presented by the peasant strongly influences the likelihood of appellative and intervention. Children with physical special educational needs, much(prenominal) as visual impairment or noticeable physical devoteicap, are easily identified and much more likely to receive go than boorren with slight(prenominal) magnanimous disability (Russell 2003, 220). Similarly, pip-squeakren suffering from extreme moral disability, such as severe mental illness or significant mental retardation, will in like manner be more easily identified and considered for operate (Russell 2003, 220). However, the barriers that do pr veritable(a)t identification and intervention for physically and severely mentally disab lead children are complex.Some minority and pagan communities have heathenish barriers that prevent their SEN children from receiving azoic identification and intervention. Sometimes this is on the part of the minority or heathen family. Some cultures consider disability to be a source of shame or embarrassment for the family, and as a chair keep disabled children at home and isolated from the larger community. When this occurs, the child becomes much less likely to be identified as having a special educational need or having appropriate aboriginalish intervention. In other instances the greater community presents pagan barriers to utilitys grantd to the child. Sometimes this is in the form of mis sense of the cultural values of the minority or social family. At other times racism becomes an issue. Russell (2003, 217) asserts on that point is widespread testify of additional disadvantage and social exclusion for disabled children from minority ethnic communities.Language barriers for minority and ethnic families is as well as an issue. Typically this is the result of parents with scant(p) English skills misunderstanding the communications of key proletarians and others, or of key workers and exchangeable service providers misunderstanding or making assumptions based on worthless communication by the parents (Fletcher-Campbell and Cullen 2000, 92). School effect and other service providers mustiness sometimes contend with a large number of native languages in their communities, and a lot lack the funding and round to respond to all the representation EAL issues that whitethorn present (DfES 2004, 18). The result is a lack of communication amongst the family and professionals, which whitethorn result in a potential special educational need being misdiagnosed or mislabeled as some other issue, and the child not receiving indispensable identification of potential SEN. The key, according to Russell (2003, 216) is that study must be accessible, both ways, to families and profession als. a great deal these children have barriers related to the stinting condition of their families. Over half the families with a disabled child are living on or below the margin of poverty (Russell 2003, 218). Often at least one parent is unable to work because of the childcare needs presented by the disabled child. Lack of financial resources in the family reduces the childs access to services, as often transportation needs are unmet. More parents need access to good quality childcare and early years provision in their local community (DfES 2004, 10). Poor families in like manner typically live in poor communities, which often suffer a wide array of service deficiencies. There are wide regional variations in the quality and coherence of available support (Russell 2003, 223). Similarly, take aims of support interpolate widely from community to community and even sometimes from savant to educatee (Russell 2003, 220). This means resources leading to identification or interven tion for one SEN pupil may not be available to a similar pupil simply because of where the second pupil lives, with poor children the least likely to have access to involve services.In short, for noticeably disabled children, lack of trenchant information and communication about available services, a shortfall in appropriate family support services and the impact of racism and low income in many communities often form a barrier to identification and early intervention (Russell 2003, 217).The above issues may affect all children with SEN however, children with less patent or visible disability suffer from additional barriers to identification and intervention. Whilst the dip child is easily recognised, the child with a acquire disability or emotional issue may suffer for years before his or her needs are identified. For these children, lack of learning amongst childcare and school caters, toothless manduction of information, insufficient time and resources, and even the chi ld and/or parents result to learning trickyies can form barriers to SEN identification and intervention.A lack of training amongst those who interact with the child also leads to reduced identification, and therefore reduced intervention (Fletcher-Campbell and Cullen 2000, 90). Childcare and early years workers have the daunting task of find whether a child has special educational needs, or is reacting to poverty, cultural differences, neglect, or some other factor. For example, school personnel and the LEA are expect to seek evidence of identifiable non-academic factors affecting statements before full estimation (Callias 2001, 25). They look for other issues, such as health problems interfering with schooling, stunning impairments, speech and language difficulties, poor school attendance, problems in the childs home circumstances, or any emotional or behavioural difficulties that may be causing the childs educational difficulties (Callias 2001, 25). Because of this, children who come from difficult home situations or for whom English is an additional language will often suffer delay as personnel try to determine whether these bring factors or a true special educational need is present. The less trained staff is in these situations, the less likely they are to get to at a correct, timely decision, or be able to decent evaluate the childs special educational needs in light of additional factors.This is compounded by discrepancies regarding what does and does not constitute a special educational need. The criteria for identifying children with SEN and especially for thresholds triggering a statutory assessment are very general (Callias 2001, 30). Because of this generality, they remain open to differing interpretations and are likely to treat to be a source of potential difference of opinion (Callias 2001, 30). Again, the authority or school with less trained personnel is therefore less likely to be able to provide timely and accurate service to SEN c hildren in their care with other potentially contri excepting factors.The DfES recognises that early childcare workers and early years personnel need additional training in SEN identification, allowing services to work on a preventative basis, rather than time lag until crisis point is reached (, 16). The governments Removing Barriers to consummation states an area needing improvement is the expertness of those working with young children with SEN and disabilities and advocates consistent, nationally recognised training be provide to staff in all settings (DfES 2004, 17)Another barrier to early identification and intervention is lack of communication and information sharing amongst bear on parties. DfES repeatedly recognises this as a barrier to service, and advocates better information sharing and assessments for early intervention (DfES 2004, 10). Russell (2003, 221) similarly concludes it is widely recognised that fiscal, structural and cultural barriers betwixt agencies det rimentally impact SEN identification and intervention. Schools and authorities facing high staff turnover have additional communication barriers as multiple personnel will often be involved in one identification or assessment.The problem was once much more severe. Fifteen years ago, LAPP evaluation showed that staff in some schools were rediscovering the same learning problems in the same students each successive year, with no awareness of what might have been done about them in the past (Stradling and Saunders 1993, 130). The government recently launched the Early Support Pilot Programme, which provides a single key worker who takes accountability for ensuring that services are organize and delivered around the familys needs (DfES 2004, 12). This allows for a coordinated, single assessment for the child, better information sharing between agencies, and ongoing reviewing services (DfES 2004, 12).Even the key worker system, however requires that the key worker be able to ascertain accurate information regarding the child. The criteria for ascertaining special needs begins with evidence that the childs attainments are discrepant with the majority of children his or her age (Callias 2001, 25). If the child is reported to be below attainment level by some parties and not by others, it brings into question whether the childs issues are truly special educational needs or environmental. In some cases information is simply not provided or forwarded by involved agencies, often due to the lack of time and resources as described below. fall upon workers for children in unstable living situations also have difficulties in obtaining needed information. If a child is not at a given business office for a long enough issue, and is constantly transferring from delegation branch to agency branch or from school to school, it becomes difficult to gather all the needed information for accurate identification and intervention. In such situations parents are also often unable or unwilling to provide information on their child, making the child present without background at each current school or agency.Insufficient time and resources are another barrier to SEN identification and intervention. Lack of funding can cause delay by leading to not enough personnel (DfES 2004, 18). Although detail positions are advocated or required, some vacancies go unfilled for too long a period of time, and other staff are given caseloads in excess of recommendations (DfES 2004, 18). high school turnover in the most needy schools and communities compounds this problem. One noted barrier to intervention is a lack of key workers who ensure well coordinated services planned to meet individual family needs (Russell 2003, 216). Poorer communities, as discussed above, often lack the resources and materials that other communities consider normal. Childrens Trusts are working to make do lack of access to information and services, and lack of the services themselves in some are as, but discrepancies remain (DfES 2004, 13). Whilst the SEN Code of employ is a welcomed guidance by many, there is ongoing concern about the time needed to execute the Code, and whether resources allocated to SEN pupils will take away from pupils without special needs (Bowers and Wilkinson 1998, 120).A concluding barrier to SEN identification and intervention is sometimes the child or parents themselves. A child who appears to not have special educational needs but in actuality does will often develop elaborate coping mechanisms to obscure his or her learning difficulty (DfES 2004, 52). Such children often feel stupid, as their parents and teachers tell them to try harder and work to their potential, not realising that they already are. As the child works harder but is still unable to master material presented, feelings of want are compounded and coping and hiding mechanisms become more prominent (DfES 2004, 52). Sometimes this will be in the form of withdrawing or presenting as shy so as to avoid being asked to contribute. In other children, acting out as the class clown or seemingly rebelling and refusing to cooperate allows the child to avoid confrontation of his or her learning needs. As such, the child may progress through several years of schooling before his or her need for special education is identified. The child with obscure SEN also sometimes refuses to cooperate with identification and intervention efforts, as there continues to be some social stigma in some schools and communities to learning difficulties.Parents may similarly resist a childs identification as possibly needing special educational support, or the interventions suggested by the LEA. Parents may not realise that identification of a special educational need does not necessarily require their child be removed from mainstream education or schooled specially, that in fact, children are mainstreamed wherever possible (DfES 2002, 5). They may have issues regarding social stigma, or be in denial that their child has any sort of difficulty. In these situations, parents may refuse to provide information, guide workers into the true nature of the childs attainment, causing environmental issues or other factors to be considered.Fortunately, there are many ways that these barriers can be and are being overcome. The cultural issues of some minority and ethnic communities regarding children with disabilities is a complex one, and therefore defies an easy solution. However, change magnitude awareness and understanding within local people groups, particularly if such is available in their own native languages, is important to removing barriers for SEN childrens identification and for them receiving the services they need. Educating staff at community centres or religious places where people from such cultural background might seek assistance, for instance, on the facts of special educational needs and services available to children might lessen the stigma of disabi lity and provide more accessible information to affected families. Also, translating information or providing written information in a wide variety of languages would be an countenance to workers faced with a number of different language groups in their communities. These publications could even be available online, allowing easy download and printing of such publications and eliminating the need to keep many different copies of such information on hand and organised, or the chance of running out of materials in a specific language.Parliamentary debate of SEN and various government publications regarding SEN pupils needs have led to an increase in funding to LEAs, by which the authorities have begun to address some of the time, resource, and staff training barriers that prevent timely identification and intervention (DfES 2001, iii). In addition, the Code of Practice 2001 contains specific guidance to assist LEAs obtain the best value from the considerable resources and expertise they invest in back up children with special educational needs (DfES 2001, iii). Serving more children within the consideration of regular schools through inclusion and mainstreaming additionally reduces the costs to LEAs, allowing allocation of pecuniary resource and resources to a greater number of children (DfES 2004, 18). The implementation of a graduated solution also makes intervention more economical, and assist staff with perhaps less training than optimum in ruling out the other factors, such as problems at home, that might cause a child to experience learning difficulties (DfES 2001, 26).The revised Code of Practice widens those able to recommend SEN identification, increasing the likelihood a number of barriers are reduced, and encourages or requires additional sharing of information between LEAs, schools, other involved agencies, parents, and the child. The Code now gives schools and greenhouse education providers a new right to entreat assessment and intervention (DfES 2001, iv). Parents and other agencies, in addition to schools, also have the ability to request assessment (DfES 2001, 75). Parents access to information is also significantly improved by the revised Code (DfES 2001, iv). Parents are now encouraged to contribute their acquaintance and understanding of their child, and to raise any concerns they may have about their childs needs and the provision which is being made for them (DfES 2001, 52). When a child is being assessed, the LEA is now required to send a imitation of assessment notice to both the designated officer of the Social Services plane section and the health authority (DfES 2001, 78). They should also copy their own educational psychological science service and any other relevant agencies, such as the education welfare service (DfES 2001, 78).Finally, childrens and parents negative perceptions of and reaction to SEN identification and intervention could be reduced. For example, having public service or information campaigns similar to those previously discussed for minority or ethnic communities might make people more aware and informed. Early identification of children prior to them beginning to have negative feelings about themselves and school would in itself be an assistance. Also, children should have a forum and be encouraged to talk about their learning experiences. Having a humanitarian approach that values each childs feelings and concepts of their own learning, which also allows them to provide this information to teachers and others in a position to evaluate for SEN, would yet remove barriers.In conclusion, whilst many barriers to SEN identification and intervention have begun to be addressed, more needs to be done. It is detrimental to both the individual SEN child and to the educational system and society as a whole if these childrens needs are not promptly addressed.Child/parentsREFERENCESBowers, T. and Wilkinson, D. 1998. The SEN Code of Practice is it user-friendly? Briti sh Journal of Special Education, September 1998, 25(3)119-125.Callias, M. 2001. Current and Proposed Special Educational Legislation. Child Psychology and Psychiatry Review, 6(1)24-30.DfES 2001. Special Educational Needs Code of Practice. DfES Publications Centre.DfES 2002. Special Educational Needs (SEN) A guide for parents and carers. DfES Publications Centre.DfES 2004. Removing Barriers to Achievement The Governments Strategy for SEN. DfES Publications Centre.Fletcher-Campbell, F. and Cullen, M.A. 2000. Schools perceptions of support services for special educational needs. Support for Learning, 15(2) 90-94.Russell, P. 2003. Access and Achievement or Social Exclusion? be the Governments Policies Working for Disabled Children and Their Families? Children Society, 17215-225.Stradling, B. and Saunders, L. 1993. Differentiation in practice responding to the needs of all pupils. Educational Research, Summer 1993, 35(2)127-137.

Trade openness and its impact on economic growth

Trade nudity and its impact on frugal off instituteThe main objective of this chapter is to bem apply an overview of what has been said in the literature regarding guile nudity and its impacts, mainly on ripening and impression to international shocks. Infact, the benefits and salutes of increased desegregation remain the subject of a hotly contested debate. class 2.1 provides an overview of the theoretical perspective of diverse authors. Section 2.1.1 and 2.1.2 elabo drift on the impact of guile on ontogenesis and pic to out-of-door shocks respectively. Finally, section 2.2 reviews the empirical literature.2.1 Theoretical review2.1.1 Trade and harvest-tideThe net effect of pile receptiveness on stinting suppu proportionalityn has been and remains a subject of much controversy. It is well known that menstruums of spread outness generate widely distri andedly been associated with prosperity while protectionism has been the companion of recessions. beingness supranational treat has experient exponential yield over the past two decades. L. Fontagn and M. Mimouni (2000) have stated that since the end of the European recovery after World War II, tariff grade have been divided by 10 at the gentleman level, international craftiness has been multiplied by 17, world income has quadrupled, and income per capita has doubled (p. 2).An economys nudity is said to be one of the key de bourneinants of its proceeds, along with human cracking, the investment ratio and the rate of population reaping (The Deutsch imprecate Research, 2005). Countries that have successfully indulged in international parcel out, opened themselves to foreign send investment and attracted foreign workers experienced much steeper economicalal harvest-festival than countries that have failed to become integrated into the global economy.Explanations brought forward by The Deutsch stick Research (2005) on how increased flock boosts evolution are move from the neoclassical mint model, the technological transfer argument and the institutional improvements argument.In order to explain the neoclassical model of international dish out, one should go back to Adam Smith (1776) and David Ricardo (1817). They showed that two countries with absolute and comparative cost advantages quite a little benefit from trade given that each country specialises in producing the good that it can manufacture at a relatively subvert cost. The total turning of manufactured goods that both countries can consume indeed increases and higher welfare follows. However, it is to be noned that economic growth is not an immediate consequence.Technology transfer occurs via the importing of high-tech capital goods, toil facilities, patents and licences, as well as knowledge-intensive services. Further to a greater extent(prenominal), the importing of new technologies in like manner stimulates the suppuration of ho use up servant technology via the imitation and enhancement of imported products. So trade accelerates technological progress, which in turn is the key source of long- landmark economic expansion according to growth theory.The institutional framework also plays a major division. It encompasses improving infrastructure, boosting capital market efficiency and safeguarding property rights. This lick is facilitated by increasing international competition, which prompts domestic companies to continually optimise their occupation processes and develop new products this also speeds up technological progress and thence boosts economic growth.In the said(prenominal) breath, Grossman and Helpman (1991) established that openness enhances economic growth through the following channels. Firstly, trade enlarges the available variety of intermediate goods and capital equipment, which can expand the productivity of the countrys early(a) resources. Secondly, trade permits underdeveloped countries the rag to improved technology in deve loped countries, in the form of corporate capital goods and thirdly, trade allows intensification of capacity utilization that increases products produced and consumed.To Fontagn and Gurin (1998), openness is surely a prerequisite, not the engine of growth. It simply fuels the engines of investment, reform and credibility.The trade surgery of individual countries tends to be a good indicator of economic functioning as well. Performing countries tend to record higher rates of gross domestic product growth. The majority of developing countries have joined the World Trade validation (WTO) and have taken initiatives aimed at opening their economies. Nevertheless, the outcome has not been consistently domineering since export performance sometimes remains disappointing and these countries steadily follow contrasted schooling paths. Gurin (1999) pointed out that there is no regular gain in growth associated with the binding to the multilateral rules of international trade. Accor dingly, Rodrik (2000) argues that integration into the world economy hardly substitutes for a development strategy.Nonetheless, some developing countries record high growth rates by specialising in recess markets and concentrating their export markets, while other developing countries record more lapse back rates of growth with a well diversified array of products and assistant countries. In other crusades, successful performance is the result of a gilt product or market penetration since the beginning. Successful performance can also be gauged in toll of a countrys ability to vary its export profile to changing patterns of world demand.The phenomenal differences among the growth rates of the eastern Asian, the Latin American, and Sub-Saharan African countries over the last several(prenominal) decades have stimulated a renewed interest in the do of trade policies on growth. During well-nigh of the 20th century, import substitution industrialisation (ISI) strategies domina ted most developing countries development strategies. While developing countries in Latin America that followed ISI strategies experienced relatively lower growth rates, East Asian countries, that employed export-promotion policies, consistently outperformed other countries. This probably explains why a growing body of empirical and theoretical research has shifted towards examining the relationship amidst trade relaxation and the economic performance of countries since the late 1970s.2.1.2 Trade and photo to External ShocksTrade provides countries with new growth opportunities but also exposes them to outside shocks. Many economists believe that, though openness to trade increases average gross domestic product growth rates, it also raises produce volatility by exposing countries to terms-of- trade shocks. The term picture is often brought up when referring to film to external shocks. Vulnerability refers to organic characteristics which render countries prone to exogenic shocksOpen economies are subject to external shocks and Rodrik (1998) has argued that more open economies have bigger governments, because government spending is apply to smoothen those external shocks.The pic of countries to some types of external shocks should be lessen when these countries exports are better diversified. More specifically, the effect of trade openness on growth volatility, might it be every negative or supreme on average, is presumable to be exacerbated when the country in question exports either a relatively low-pitched set of products, or sells its goods to a humiliated number of destination markets. The argument is that a higher degree of parsimony in exports would imply that any idiosyncratic price shock experienced is more likely to have a substantial impact on the countrys terms of trade, and this would then induce great fluctuations in a countrys growth process. Furthermore, a higher degree of diversification would likely imply that a country is i nvolved in a larger number of both implicit and explicit international insurance schemes, which would similarly serve as a cushion against such fluctuations.It has been argued that the structure of developing countries exports makes those countries particularly threatened to external shocks. Michaely (1958) showed five decades ago that countries with lower GDP per capita tend to be characterized by a higher commodity concentration of exports and argued that as a result, shocks affecting individual export products can have significant effect on boilersuit export performance and potentially on economic performance in developing countries.However, it is to be noted that many excellent states manage to generate a relatively high GDP per capita when compared to other developing countries in spite of their high motion picture to exogenous economic shocks. This would seem to suggest that there are factors which may offset the disadvantages associated with such vulnerability. This phe nomenon was termed by Briguglio (2003) as the Singapore Paradox, referring to the reality that although Singapore is highly overt to exogenous shocks, this small island state has managed to register high rates of economic growth and to attain high GDP per capita. This reality can be explained in terms of the ability of Singapore to build its resilience in the face of external shocks.Practitioners keep wondering whether being open, or in the process of opening up, can determine long negative effectuate linked to an increased exposure to external shocks or greater try out on certain actors. The open question is the following does trade openness or the process of opening up magnify the risk exposure of the open economy and/or increase uncertainty towards the future, with negative consequences on its welfare? This question does not have a once-for-all answer. It concerns, in general terms, the issue of the balance between the advantages of trade openness and the drawbacks of a grea ter exposure to shocks and uncertainty.The simplest analysis of risk suggests that at low levels of trade (as typical in developing economies), further trade liberalisation would tend to decrease risk exposure, because (larger) world markets with many players are likely to be more stable than (smaller) domestic ones (Winters, 2002).The hypothesis of a likely long term negative welfare effect of exposure to external shocks and uncertainty a sort of vulnerability hazard induced by trade openness indeveloping countries (Montalbano et al., 2006 and 2008 Guillaumont, 2007a, 2007b UNUWider 2008b) has been supported by a number of considerations Dercon (2001) underlines the role of openness as a vehicle for an entirely new set of shocks and incentives able to put traditional mechanisms under pressure and hamper sight standard management strategies Calvo and Dercon (2003 and 2007) and Ligon and Schechter (2003 and 2004) suck up how risk averse households will have lower levels of wel fare or a lower expected receipts if they face greater variation in future breathing in, as it is more likely in the case of trade openness Winters (2002) and Winters et al. (2004) suggest that trade openness could alter households optimal portfolio leading to sub-optimal choices, especially for the paltry, because of a poor ability to bear new risks and weak capabilities to insure themselves against adverse impacts or simply because their behaviour can be negatively affected by rising uncertainty.2.2 Empirical ReviewDo open economies grow fast-paced than closed economies? Almost all empirical growth studies have provided an approbative answer to this question. The reason for this strong bias in favor of trade rest is partly lay down on the conclusions of a wide take to the woods of empirical studies, which claimed that outward-oriented economies consistently have higher growth rates than inward-oriented countries. It is also partly due to the tragic failures of import-subs titution strategies, especially in the 1980s and misinform expectations from trade liberalization.Levine and Renelt (1992) show that trade openness may affect growth through investment. Continuous openness may lead to faster long-run growth since openness allows larger access to investment goods. Trade liberalization provides incentives for foreign direct investment nevertheless, foreign investment may crowd-out domestic investment.Rodriguez and Rodrik 1999 also emphasize the indefinite sign of the effects of trade on growth. Net effects are positive if the resource allocation determined by trade policy promotes sectors that generate more long-run growth, but are negative otherwise.Economic volatility has been shown to reduce economic growth (Ramey and Ramey, 1995 Martin and Rogers, 2000 Imbs, 2007) and the positive growth impact of trade may therefore be attenuated if it leads to significant exposure to external shocks.Terms of trade volatility is probably the most widely used me asure for external shocks. A number of studies have used quantitative, multi-sector equilibrium models to analyse the effect of terms of trade shocks on output volatility. Kose (2002) mystifys that world price shocks play an most-valuable role in driving business cycles in small open developing economies. His results confirm the results of earlier work by Mendoza (1995) or Kose and Riezman (2001).A number of recent studies have analysed the relationship between terms of trade shocks and changes in GDP growth in vector auto- arrested development (var) models. Ahmed (2003) uses a VAR model to study the sources of short-term fluctuations in the output of six Latin-American countries and dumbfounds that changes in the terms of trade and foreign output play a moderate role in driving output fluctuations. exploitation industry-level data, di Giovanni Levchenko (2009) check into the channels through which trade openness might affect volatility. They find a strong positive correlation between the risk guinea pig of exports and the variance of terms of trade and also found that export specialism affect macroeconomic volatility. They find that trade openness appears to lead to countries proper more specialised in their exports. This is problematic given that openness is likely to also expose a country to a greater number of shocks.Trade openness may expose economies to external shocks, but may also act as a buffer against domestic shocks. The overall impact of openness on volatility is therefore an empirical question. Easterly, Islam and Stiglitz (2001) and Calderon et al. (2005) find that higher trade openness leads to larger growth volatility. In contrast, Kose et al. (2002) do not find that trade openness have a blue effect on GDP volatility.Most studies on economic vulnerability provide empirical picture that small states, particularly island ones, tend to be characterised by high degrees of economic openness and export concentration. These lead to exposur e to exogenous shocks, that is, economic vulnerability, which could constitute a disadvantage to economic development by magnifying the element of risk in growth processes, without necessarily pliant the overall viability. Cordina (2004) shows that increased risk can adversely affect economic growth as the negative effects of downside shocks would be commensurately larger than those of positive shocks. The high degree of fluctuations in GDP and in export loot registered by many small states is considered as one of the manifestations of exposure to exogenous shocks.In the analysis of the linkages between trade openness and volatility, for instance, an extensive use of add-in data appears. Among the most recent exercises, Kose et al. (2003) Hnatkovska and Loayza (2004) Wolf (2004) Calderon et al. (2005) use panel data to measure the external exposure of a worldwide prove of countries by the sensitivity of first and second moments of economic growth (average rate and standard devia tion) to openness and financial shocks. They also allow the possibilities of non-linearities by allowing growth and volatility effects to vary with the level of economic development. On the same wake, Loayza and Raddatz (2006) apply semi-structural VAR to a panel of 90 countries with annual observations for the period 1974-2000 in order to isolate and standardise the shocks estimate their impact on GDP and examine whether and to what extent this impact depends on the domestic conditions.4 Using this technique, as mentioned, they show that trade openness magnifies the output impact of external shocks. Santos-Paolino (2007) too, who applies the same Panel VAR approach for a selection of crib death from the Caribbean, emphasises the negative impact of terms of trade shocks on certain vizor and real output volatility. Malik and Temple (2006), in their effort to explain differences in output volatility fordwise developing countries, use instead a Bayesian method to highlight explanat ory variables that are robust across a wide range of specifications. They show the pervasive role of geography in determining aggregate volatility since remoteness is associated with a wish of export diversification, a significant phenomenon of high volatility of terms-of-trade and output of the more remote countries is apparent. This result is not sensitive to the precise regression specification, nor it is compulsive by the contrasting geographies of low income and high income countries.Concerning the analysis of the linkages between trade openness and economic crises, Cavallo and Frankel (2007), following closely the definition of Calvo et al. (2003), Frankel and Rose (1996) and Frankel and Wei (2004), use a Probit model to measure the probability of a sudden decrease in the magnitude of net capital inflows exchange market pressure and output loss for a set of 141 countries for the period 1970-2002. They find evidence that trade openness makes countries less under attack(pre dicate) to sudden stops and up-to-dateness crises. A special feature of this work is that they address the problem of endogeneity of trade, victimization gravity estimates to construct an instrumental variable for trade openness based on geographical determinants of bilateral trade which are supposed to be exogenous.In a slight different exercise, Glick and Rose (1999) explain regional contagion of crises, using a binary probit equation across countries via maximum likelihood. They use cross sectional data for 161 countries in five different episodes of widespread currency instability. Their conclusion complement that of Cavallo and Frankel (2007), arguing that no military issue who is the first victim of the speculative attack and what factors are behind it there is a strong evidence that currency crises tend to spread regionally because of trade linkages. It emerges from the above how current analyses remain basically ex expect assessments, mainly targeted to issues not dire ctly linked to vulnerability. An additional effort is indispensable to build a sound methodology to assess vulnerability to trade openness.A. Federici and P. Montalbano in a paper entitled Assessing vulnerability to trade openness a cross-country analysis offer a substantive percentage to current debate on the effects of trade openness on developing countries vulnerability. The main result of this cross countries empirical test is to highlight a robust and significative statistical relationship between inlet volatility linked to trade openness and a positive consumption gap, i.e. the presence of negative shocks on consumption growth. This phenomenon remains covered up by simple data analyses and largely overlooked by current empirical literature on openness and growth. This paper demonstrates that situations of vulnerability to trade can co-exist with a positive trade and growth relationship. Some countries keep higher probability to be worse off in case of negative external shoc ks, because of endogenous characteristics (resilience) and/or the use of inadequate deal strategies (responsiveness).Empirical work on the construction of an economic vulnerability forefinger (Briguglio, 1995 Briguglio and Galea, 2003 Farrugia, 2004) is often based on the premise that a countrys proneness to exogenous shocks stems from a number of inherent economic features, including high degrees of economic openness (measured as the ratio of international trade to GDP), export concentration (measured by the UNCTAD index of merchandise trade) and dependence on strategic imports (measured as the ratio of the imports of energy, food or industrial supplies to GDP). All vulnerability indices using these or similar variables come to the conclusion that there is a tendency for small states to be more economically vulnerable than other groups of countries.L. Briguglio, G. Cordina, N. Farrugia and S. Vella (2008) provide an report as to why inherently vulnerable countries may register h igh levels of GDP per capita. It is argued that countries may be economically successful because they are inherently not vulnerable, or because they are resilient in the face of the vulnerability they face. The obverse is also true, in that countries may be unsuccessful because they are not sufficiently resilient. The paper has also shown that GDP per capita is positively related to economic resilience and negatively related to inherent economic vulnerability. Furthermore, per capita GDP is found to be more sensitive to resilience variables than to vulnerability variables.H. Yanikkaya (2002) showed that trade liberalization does not have a simple and straightforward relationship with growth using a large number of openness measures for a cross section of over 100 developed and developing countries observed from 1970 to 1997. The regression results for numerous trade intensity ratios are mostly consistent with the existing literature. However, contrary to the conventional view on th e growth effects of trade barriers, our estimation results show that trade barriers are positively and, in most specifications, significantly associated with growth, especially for developing countries and they are consistent with the findings of theoretical growth and developmentliterature.2.3 ConclusionMuch has been said in the literature regarding trade and growth. However, the more exposed to trade a country is, the more vulnerable it is to shocks coming from abroad. But nonetheless, economists believe that trade openness promotes economic growth. These have led some observers to identify an interrelationship between openness to trade, output volatility and growth.