Deregulation Essay Example | Topics and Well Written Essays - 250 words

Deregulation - Essay Example aeronautics board (CAB) regulated all airline services for flights without the states (but not within) controlling the fares, travel times and even routes. They attempted to control prices by lowering the short distance travels and raising those of a long distance. They were also obligated to ensure that the airlines got fairly good returns. The period of 40 years within which air transport was regulated saw a steady growth in the industry, in terms of people travelling, employees and even returns. However, the rigidity of the system was opposed by the consumers who were exploited as well as some airlines. The major reasons for deregulation were to offer room for competition and to increase the desirability of the system. After much deliberation and slowly, the deregulation campaign won by slowly and gradually stripping CAB of its powers until it was later dissolved. The whole campaign relied on competition to equalize prices, ensure effectiveness and offer efficiency. After some period of time, it was argued that the deregulation act was unconstitutional. The U.S court appealed that the employee rights were severed by the act and in a bid to ensure that there were no job losses due to deregulation, the employee protection program was instituted. It later was involved in making of guidelines to ensure that the same did not take

Are Entrepreneurs More Happy than Others Entrepreneurship and Research Proposal

Are Entrepreneurs More Happy than Others Entrepreneurship and Happiness - Research Proposal Example m and they remain inspired despite the fact that they can make less income than people who are employed, additionally, they work more hours, and deal with a lot of stress compared to employed people (Baron and Shane, 2007). Secondly, it is important to focus on this particular topic in order to establish if indeed people who are employed are not as equally as happy as entrepreneurs are and if so, establish the source of the unhappiness despite the fact that they face fewer challenges and they are certain about the future. According to the theory presented by Abrams (2012), happiness is interlinked with motivation and therefore a person who is motivated is equally happy but this argument present a research gap in the sense that motivation are derived from factors such as money or incentives, financial security, and conducive working environment that is stress free. Therefore, factors that create motivation are not equally the factors that create happiness since it is argued that entrepreneurs are usually happy but at times, they make much less than people who are employed. Consequently, it will be critical to identify how happiness is measured or factors that determine the level of happiness. According to Naude (2012), there has been a significant increase in the cases of suicide amongst European entrepreneurs mostly during the recent economic crisis that largely affected the region since there was an erosion of social protection because of the fiscal austerity measures that had been implemented by various governments. Such a case further question how happiness is measured since it is stated that entrepreneurs are naturally happier despite the fact that at times they make less, face more challenges and uncertainties. However, it is noted this case scenario that during crises entrepreneurs become unhappy to the extent of committing suicide while it had earlier been stated that entrepreneurs are not necessarily motivated by money and always prefer challenges posed

Tourism After The Second World War

Tourism After The Second World War INTRODUCTION International tourism has grown very fast after second world war. Today, tourism has become a part of the everyday life for most people and is now a major source of employment in developed countries. The growth of the tourist industry after second world war can be linked with increasing wealth, increased mobility, improvements in accessibility and transport, more leisure time, product development and innovations, improvements in technology, changes in lifestyles and fashion, an increased awareness of other places and the need for green tourism. Every factor is responsible for the rapid growth of tourism which is the biggest industry in the world at the world employing nearly one third of the whole world population. Since the beginning of early days, humans have travelled for various reasons. . Food, water, safety or acquisition of resources (trade) were some of the early travel motivations. But the reason for travel changed when people had the idea for pleasure and exploration. Travel is always depended upon technology as the means or mode of travel. Travellers before walked or rode domesticated animals. The invention of technology like the wheel and the sail provided new modes of transportation. Each technological improvement increased individuals opportunities to travel. Interest in travel increased for education, sightseeing, and religious purposes when infrastructure were developed by governments and other facilities were meet. The development of International Tourism after the Second World War The most common factors that are responsible for international tourism development after Second World War, can be discussed under three main headlines Changes in technology Product development Social or economic factors A. CHANGES IN TECHNOLOGY 1. Developments of Jet Aircraft The development of jet engine was started after the Second World War and before that it was very expensive to travel and also took long time to reach destinations. In 1958 the first jet aircraft carried passengers in the transatlantic route and the travel time was cut some five days to seven hours which was really a great breakthrough for the development of tourism worldwide. And after 1970 the jet aircraft started carrying more and more passengers and also become cheaper for people. 2. Computerised Reservation Systems CRSs are systems that store current information about all available service providers and have the necessary infrastructure to transfer such data. This system started at the beginning of 1960s and the main objective was to book airline seats automatically. In todays world the best known CRSs are Galileo, Amadeus, Sabre, Worldspan and these CRSs have developed the tourism market dramatically. 3. High speed Trains After the Second World War, significant development happened in the railway system. In the United States, All over Europe and in Asia, high speed trains were introduced which brought revolutionary change in mass tourism. This high speed trains has given the passengers comfort and choice of transport which play a vital role in the development of tourism. 4. Communication. The communications revolution happened in the last few decades which had a major impact in tourism. Companies like GO and Last minute.com and others are already developing the Internet to book online and selling their product through web pages. People are now walking through their hotel online, check out the views, find out about the nightlife and all this before they book! Its advertised more faster and more cheaper than going down to the high street. B. PRODUCT DEVELOPMENT 1. Package Holidays The development of package holidays had a great impact in tourism development. All tour operators are now selling package tours which are all inclusive, which means accommodation, transfer, meals are all included in the deals. The tour operators buys the package in bulk so they can sell to customers in cheap price which attracts customer to take a holiday. 2. Theme Parks Theme Parks have been created in almost every countries of the world to attract tourists. These are the amusement parks where many rides are installed and lots of attractions are made to entertain a large group of people. Example include Thorpe Park in UK or Disney Land in Paris. 3. Introduction of Holiday camps Holiday parks like Central Parks and Butlins had led to a big growth in the tourism industry. In the holiday camps holidaymakers pay for their accommodation and also can go for full board, half board or self catering. 4. Low cost Airlines In the last few decadesà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢ low cost airlines contributed hugely in the development of tourism. Low cost airlines like Ryan Air, Easy Jet made it easy for tourists to travel for very cheap prices. 5. Long Haul Destinations The possibility of taking a long haul flights made it very attractive for tourists to go far away form home. People can go from one part of the world to another part in couple of hours and explore the world which gives them immense pleasure. C. Social and Economic Factors 1. Increase in car ownership The greatest factor that increased for travel is the increase in car ownership. Car ownership were increased mostly in the year between 1951 and 1970 and then there were even bigger increase in the mid 1990s. Increased car ownership is now a great facility for people to visit places of interest and spend leisure time with friends and families. 2. Increase in leisure time People around the world now think there are more things to be done other than work in life. So, people now try to mange leisure time from their work which they want to spend travelling to different places just to relax and enjoy. This time spent not only relaxes people but also boost their energy to perform at workplace because of freshen of mind. 3. Holiday entitlement People now are entitled to few days to few weeks holiday every year they work which gives them chance to go somewhere and spend some. From 1938 it was legal requirement that people have to get paid holiday every year. This holiday entitlement also motivates people to travel and thus develop tourism worldwide. 4. Early retirement with pension Todays workplace encourage to recruit fresh talents and so also gives the older people the chance to retire early with pension facilities. So, people now have time in their life to spend and the money they need, which makes them motivate to travel. 5. Aging population Aging population is another factor that develop tourism. People who are aged have more time to spare than others and that encourage them to go for holiday and contribute towards tourism. 6. Large incomes People are earning more money than before and so are able to spend on holidays and other recreation. When there is disposable money available for people that tends people to spend on travel and explore places and hence develop tourism. 7. Less children This is another important factor towards the growth of tourism. People wants to be more free in life than before and lots of people donà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢t want to get tied with family and children and which lets them go wherever and whenever they want. They move to different places and help tourism. CONCLUSION After the second world war, tourism has grown in scale, distribution and origins of tourists. According to Geofact 2001, there were 25 million international tourists in 1950 and according to WHO, there were 160 million tourists in 1970. And they forecasted that it would be 1000 million in 2010. In 1997 the UK tourist industry generated  £40 billion which is approximately 4% of the GDP and the industry employed 1.6 million people which is 6.2% of the total workforce. From these figures it is clearly visible that international tourism had developed since the second world war and the growth is continuing.

Divorce :: essays research papers

Some say time heals all wounds, and I would have to agree with them in some situations. When I was eight or nine, I went through something I thought I would never get over. My parents divorced.   Ã‚  Ã‚  Ã‚  Ã‚  They had been fighting for awhile, but I never thought that they would actually separate. Then the day after New Years my mom left. I was in shock. My older brother left with her. So it was only my dad, younger brother, and me at the house now. My mom moved into a hotel for awhile, before finding an apartment. My older brother just moved out all together, he did not want to deal with things.   Ã‚  Ã‚  Ã‚  Ã‚  It was very tense between everyone for a long time. My parents did not actually divorce until a year after they separated. It was a bitter dispute. They fought for every little thing they could get. The fight became very expensive, forcing my dad to move my brother and I from our large home in suburbia to an apartment in the city. My mom also moved but she moved further away, in fact all the way down to Texas City from Dallas (where we used to live).   Ã‚  Ã‚  Ã‚  Ã‚  Not too long after that the custody battles started. I think this was what was hardest on my brother and me. My mom was awarded custody first, forcing my brother and me to move after being in a new school and all for only three months. After about a year and a couple moves my dad was awarded custody. For the next few years my brother and me bounced from house to house, new school to new school, having to start fresh each time. Finally after about five years of fighting my parents came to a compromise. They separated my brother and me. I moved in with my dad in Houston, and my brother moved in with my mom in Dallas.   Ã‚  Ã‚  Ã‚  Ã‚  I have now lived with my dad for about three or four years. It was hard adjusting at first, but once I had life has become better. My brother took awhile to adjust also.

Cognitive Learning Theory Lecture Essay

Cognitive Learning developed by theorist Edward C. Tolman, explains the way our brain processes and interprets information that we learn. The biological basis of cognitive learning style is grounded in brain theory. .(â€Å"Different Cognitive Learning Styles,† 2003-2013) It’s the relationship that occurs between two stimuli, but even though the stimulus is the same our brains react in different ways. However, each person process information at different rates. This type of learning style is basically defined as a personality aspect which affects attitudes, beliefs, and social communication. An example of Cognitive learning style can be how a person develops skills and familiarity, and how they establish and recall information. Some people need to picture the task before starting; others organize learning and teaching successively or casually and some work rapidly or purposefully. Cognitive Learning: Latent Learning Cognitive learning is internal and is broken down into thought processes. One important cognitive process is called latent learning. Latent literally means ‘hidden†, and occurs without any reinforcement, but is only demonstrated when some type of incentive is given for doing it. Basically, you learn thru shear repetitiveness. Unknowingly, our brain absorbs the information which is stored deep in our subconscious, and is only brought out when faced with a situation when the information is necessary. For example, say you car pool with someone to work every day, but she/he drives. Although you’re not driving you may still learn the route to your job, but have no reason to demonstrate your knowledge of this. However, if the person you car pool with gets ill you may need to drive yourself. By doing so, subconsciously you realize you’ve learned the same route that the usual driver would take, this is considered latent learning. Cognitive Learning: Observational Learning According to Albert Bandura and his colleagues, observational learning is also a major part of the learning process. Observational learning is just that, learning by observing what they see and then demonstrating it themselves. Basically, observational learning happens in a way that someone must notice something someone else is doing. Then record it in their mind, and finally imitate the actions. These actions may or may not happen again, and the choice to continue emulating these actions depends on the outcome. The intelligence level does determine whether someone is limited to or has the ability to mimic the person. Examples of this process would be someone observing someone tying their shoes and imitating it themselves with the reward of not tripping when they walk. Or perhaps, watching someone commit a crime and then getting punished for it shows the observer that imitating is not always ideal. Because each person acquires diverse cognitive learning styles, it is not only challenging but perhaps impossible to reach every person in a particular way. Numerous researchers have made an effort to deliver ways in which the learning process can take effect. Individuals are affected by components in their surroundings like sound, light, and feelings as well as incentive, diligence, obligation and the need for organization. There are some sociological needs that can be challenging and also affect you like peers, certain groups and adults as well as physical desires, like perceptual fortes, aperture, time and freedom of movement. References Different Cognitive Learning Styles. (2003-2013). Retrieved from http://www.learningrx.com/different-cognitive-learning-styles-faq.htm Feldman, R. S. (Ed.). (2011). Cognitive Approach to learning. Essentials of Understanding Psychology (9th ed., pp. 188-194). Retrieved from

Solution of Week6

Problem 1. 7. Suppose that you write a put contract with a strike price of $40 and an expiration date in three months. The current stock price is $41 and the contract is on 100 shares. What have you committed yourself to? How much could you gain or lose? You have sold a put option. You have agreed to buy 100 shares for $40 per share if the party on the other side of the contract chooses to exercise the right to sell for this price. The option will be exercised only when the price of stock is below $40. Suppose, for example, that the option is exercised when the price is $30.You have to buy at $40 shares that are worth $30; you lose $10 per share, or $1,000 in total. If the option is exercised when the price is $20, you lose $20 per share, or $2,000 in total. The worst that can happen is that the price of the stock declines to almost zero during the three-month period. This highly unlikely event would cost you $4,000. In return for the possible future losses, you receive the price of the option from the purchaser. Problem 1. 21. â€Å"Options and futures are zero-sum games. † What do you think is meant by this statement?The statement means that the gain (loss) to the party with the short position is equal to the loss (gain) to the party with the long position. In aggregate, the net gain to all parties is zero. Problem 1. 30 The price of gold is currently $1,000 per ounce. The forward price for delivery in one year is $1,200. An arbitrageur can borrow money at 10% per annum. What should the arbitrageur do? Assume that the cost of storing gold is zero and that gold provides no income. The arbitrageur should borrow money to buy a certain number of ounces of gold today and short forward contracts on the same number of ounces of gold for delivery in one year.This means that gold is purchased for $1000 per ounce and sold for $1200 per ounce. Assuming the cost of borrowed funds is less than 20% per annum this generates a riskless profit. Problem 2. 3. Suppose th at you enter into a short futures contract to sell July silver for $17. 20 per ounce. The size of the contract is 5,000 ounces. The initial margin is $4,000, and the maintenance margin is $3,000. What change in the futures price will lead to a margin call? What happens if you do not meet the margin call? There will be a margin call when $1,000 has been lost from the margin account.This will occur when the price of silver increases by 1,000/5,000 ? $0. 20. The price of silver must therefore rise to $17. 40 per ounce for there to be a margin call. If the margin call is not met, your broker closes out your position. Problem 2. 10. Explain how margins protect investors against the possibility of default. A margin is a sum of money deposited by an investor with his or her broker. It acts as a guarantee that the investor can cover any losses on the futures contract. The balance in the margin account is adjusted daily to reflect gains and losses on the futures contract.If losses are above a certain level, the investor is required to deposit a further margin. This system makes it unlikely that the investor will default. A similar system of margins makes it unlikely that the investor’s broker will default on the contract it has with the clearing house member and unlikely that the clearing house member will default with the clearing house. Problem 2. 11. A trader buys two July futures contracts on frozen orange juice. Each contract is for the delivery of 15,000 pounds. The current futures price is 160 cents per pound, the initial margin is $6,000 per contract, and the maintenance margin is $4,500 per contract.What price change would lead to a margin call? Under what circumstances could $2,000 be withdrawn from the margin account? There is a margin call if more than $1,500 is lost on one contract. This happens if the futures price of frozen orange juice falls by more than 10 cents to below 150 cents per pound. $2,000 can be withdrawn from the margin account if the re is a gain on one contract of $1,000. This will happen if the futures price rises by 6. 67 cents to 166. 67 cents per pound. Problem 2. 21. What do you think would happen if an exchange started trading a contract in which the quality of the underlying asset was incompletely specified?The contract would not be a success. Parties with short positions would hold their contracts until delivery and then deliver the cheapest form of the asset. This might well be viewed by the party with the long position as garbage! Once news of the quality problem became widely known no one would be prepared to buy the contract. This shows that futures contracts are feasible only when there are rigorous standards within an industry for defining the quality of the asset. Many futures contracts have in practice failed because of the problem of defining quality. Problem 2. 6 Trader A enters into futures contracts to buy 1 million euros for 1. 4 million dollars in three months. Trader B enters in a forward contract to do the same thing. The exchange (dollars per euro) declines sharply during the first two months and then increases for the third month to close at 1. 4300. Ignoring daily settlement, what is the total profit of each trader? When the impact of daily settlement is taken into account, which trader does better? The total profit of each trader in dollars is 0. 03? 1,000,000 = 30,000. Trader B’s profit is realized at the end of the three months.Trader A’s profit is realized day-by-day during the three months. Substantial losses are made during the first two months and profits are made during the final month. It is likely that Trader B has done better because Trader A had to finance its losses during the first two months. Problem 2. 29. A company enters into a short futures contract to sell 5,000 bushels of wheat for 450 cents per bushel. The initial margin is $3,000 and the maintenance margin is $2,000. What price change would lead to a margin call? Under what c ircumstances could $1,500 be withdrawn from the margin account?There is a margin call if $1000 is lost on the contract. This will happen if the price of wheat futures rises by 20 cents from 450 cents to 470 cents per bushel. $1500 can be withdrawn if the futures price falls by 30 cents to 420 cents per bushel. Problem 2. 30. Suppose that there are no storage costs for crude oil and the interest rate for borrowing or lending is 5% per annum. How could you make money on May 26, 2010 by trading July 2010 and December 2010 contracts on crude oil? Use Table 2. 2. The July 2010 settlement price for oil is $71. 51 per barrel. The December 2010 settlement price for oil is $75. 3 per barrel. You could go long one July 2010 oil contract and short one December 2010 contract. In July 2010 you take delivery of the oil borrowing $71. 51 per barrel at 5% to meet cash outflows. The interest accumulated in five months is about 71. 51? 0. 05? 5/12 or $1. 49. In December the oil is sold for $75. 23 pe r barrel which is more than the amount that has to be repaid on the loan. The strategy therefore leads to a profit. Note that this profit is independent of the actual price of oil in June 2010 or December 2010. It will be slightly affected by the daily settlement procedures. Problem 3. 1.Under what circumstances are (a) a short hedge and (b) a long hedge appropriate? A short hedge is appropriate when a company owns an asset and expects to sell that asset in the future. It can also be used when the company does not currently own the asset but expects to do so at some time in the future. A long hedge is appropriate when a company knows it will have to purchase an asset in the future. It can also be used to offset the risk from an existing short position. Problem 3. 3. Explain what is meant by a perfect hedge. Does a perfect hedge always lead to a better outcome than an imperfect hedge?Explain your answer. A perfect hedge is one that completely eliminates the hedger’s risk. A pe rfect hedge does not always lead to a better outcome than an imperfect hedge. It just leads to a more certain outcome. Consider a company that hedges its exposure to the price of an asset. Suppose the asset’s price movements prove to be favorable to the company. A perfect hedge totally neutralizes the company’s gain from these favorable price movements. An imperfect hedge, which only partially neutralizes the gains, might well give a better outcome. Problem 3. 5.Give three reasons why the treasurer of a company might not hedge the company’s exposure to a particular risk. Explain your answer. (a) If the company’s competitors are not hedging, the treasurer might feel that the company will experience less risk if it does not hedge. (See Table 3. 1. ) (b) The shareholders might not want the company to hedge because the risks are hedged within their portfolios. (c) If there is a loss on the hedge and a gain from the company’s exposure to the underlying asset, the treasurer might feel that he or she will have difficulty justifying the hedging to other executives within the organization.Problem 3. 17. A corn farmer argues â€Å"I do not use futures contracts for hedging. My real risk is not the price of corn. It is that my whole crop gets wiped out by the weather. †Discuss this viewpoint. Should the farmer estimate his or her expected production of corn and hedge to try to lock in a price for expected production? If weather creates a significant uncertainty about the volume of corn that will be harvested, the farmer should not enter into short forward contracts to hedge the price risk on his or her expected production. The reason is as follows.Suppose that the weather is bad and the farmer’s production is lower than expected. Other farmers are likely to have been affected similarly. Corn production overall will be low and as a consequence the price of corn will be relatively high. The farmer’s problems arising f rom the bad harvest will be made worse by losses on the short futures position. This problem emphasizes the importance of looking at the big picture when hedging. The farmer is correct to question whether hedging price risk while ignoring other risks is a good strategy.