Foreign Direct Investment Essay Example | Topics and Well Written Essays - 4250 words

Foreign Direct Investment - Essay Example IFIs have been in existence courtesy of political and economic interests. Faster economic integration, through the elimination of cross-border barriers between the member countries, raises the possibility the spread of economic crisis across the region in the event of a policy failure and the role of international financial institutions in future to alleviate the problem. This is especially true because IFIs have not acted fast or adequate enough to enable countries avoid or manage the impacts of financial crises (Marktanner and Salman 4479). The International Monetary Fund (IMF) and the World Bank are prominent IFIs, which provide financial services across the world. They were both set up at Bretton Woods in 1944 to control the post-war global economy. The establishment of IMF was inspired by the desire to manage the modalities of fixed exchange rates across states and to help nation-states ease budget shortfalls, while the World Bank’s scope at its inception was to enable na tions achieve post-war reconstruction efforts. Since then, the roles of both institutions have changed significantly following a swift evolution of the scope and mandate of international economy. These international changes have sparked concerns relating to the significance of the two international financial institutions. ... Nonetheless, the United States’ stance on the balance of payments weakened drastically in the 1960s as a result of heavy military budgets and soaring inflation rates. As a result, the suspension of the United States convertibility to gold in early 1970s led to the disintegration of the monetary system agreed upon at Bretton Woods. And for four decades now, all nations have set up internal mechanism to guide exchange rates. These range from fixed currency exchange rates to controlled floats and liberal floating systems. Benefits of IFIs Despite the shortfalls, IFIs are advantageous because the credit risk often comes out in adverse cases. As a result, the establishment of IFIs to cater for the financial needs of governments cannot be rivalled by the private sector. IFIs offer financial services at highly reduced costs, and do not exert a lot of pressures upon the loaner. This means IFIs operate in an even-handed manner, without passing extra costs to the loaner (Marktanner and Salman 4482). As the economy is mostly forced to factor in the political effects, this risk is invisible in the operation of IFIs. These organizations represent the qualified source of finances and may provide financial services at, or below the market interest rate, this being allowed even in the scenarios where global capital market reigns. In the event that the global capital markets remain steadfast, the ensuing scenario often manifests in the missing certitude in loaning each country, which essentially takes place due to the essence of the management of the economy. The challenge that a government may not have the capacity to handle the duty service is much reduced in a national economy that has

United Farm Workers and Mexican Americans Essay Example for Free

United Farm Workers and Mexican Americans Essay The 1960s was a turbulent decade in the American history, filled with conflict over issues brought up by many different minority groups to form the various Civil Rights Movements. In this decade, the Chicano Movement started to gain a mass following and became a dynamic force of social change. Similar to blacks, Mexican Americans were plagued by police brutality, poverty, and inequality. In the pursuit of tackling these problems, the history of Chicanos in California consisted of the convergence of multiple movements: A youth movement represented in the struggle against discrimination in schools; the farm workers movement; and the movement for political empowerment, most notably in the formation of La Raza Unida Party1. The organizing efforts and achievements in California had major impact on the fate of Mexican Americans. Improvements in barrios, farm-labor camps, school districts and politic representation, led other states to sought reform. Education has long been a primary target of Mexican American activists and reformers. The Mexican American community had the highest high school dropout rate and lowest college attendance amongst all ethnic groups. As a result of the constant underestimation of students as well as the failure to upkeep facilities, a hostile learning environment was manifested. Their goals included bilingual, bicultural education, Latino teachers and administrators, smaller class sizes, better facilities and the revision of the text books to incorporate Mexican American history. In turn, Chicano students and activists decided to make their struggle public in order to pressure school boards into compliance of their demands for education reforms. In March of 1968, thousands of students walked out of their high school in L. A. protesting racial inequality among their school district. Their effects were not wasted, as the school board recognized their efforts by recruiting and hiring more Chicano teachers and administrators2. Ultimately, this inspired high school protest across the nation. College campuses also formed groups, like the United Mexican American Students, with the purposes to enforce for more Chicano study programs, financial aid, and Mexican faculty. Activists fought for bilingual educational programs and in schools and won in 1976, their hard work created more than 50 Chicano studies program in colleges. 3 Changes were not immediately apparent in high schools; however a significant change occurred in the college recruitment of Latinos and educational programs. Though most of the demands were not met, the walkouts unified and empowered the Chicano community, which in the process became a political force. Another focus of the Chicanos had been politics. Their goals encompassed the increase of Chicano candidates in the political arena, convincing non-Chicano candidates to commit themselves to the need of Mexican American community, conducting broad-scale voter registration and community organization drives, and for more Chicanos in government offices. 4 Rather than representation within the two major political parties—democrat and republic—activists established an organization dedicated to their empowerment, the El Partido de la Raza Unida. Found in 1970 by Jose Angel Gutierrez and Mario Compean, the party became active in community organizing and electoral politics statewide, campaigned for better housing, work, and educational opportunities5. The changes they fought for was made possible by combining mass action: firing of racist teachers, protecting high school student rights, and taking advantage of federal government monies they were entitled to, but was not utilized by the previous city government. Police polices were modified as well to benefit Chicano communities. The La Raza Unida Party leaders also worked to raise the wages of school and city workers to encourage unionization6. Though La Raza Unida is no longer a registered political party in the United States, its legacy is still very much alive, affecting the lives of Mexican Americans today. One aspect of the Chicano movement highlighted the rights of the workers in the fields of California. In order to fight against harsh working conditions, low wages and discrimination of Mexican farm workers, the United Farmworkers Union Organizing Committee was established. Led by Cesar Chavez and Dolores Huerta, the UFWOC accomplished its greatest victory when their strikes, boycotts, convinced the largest table grape grower, John Guimara Sr. , to only hire workers represented by the union. Despite their victory, union leaders struggled to create a union to represent all agricultural workers; As a result a three-month strike by grape workers in California began. Due to the efforts of Chavez and his union in 1975, California passed the Agricultural Labor Relations Act; which guaranteed farm workers’ rights to organize. 71 Although seen as an accomplishment, more restrictions were placed on the actions of unions. Today, agricultural workers in California are still being exploited, working in poor conditions with little pay and limited representation. Chicanos in California have played no small role in the social, economic, and political development of California. Not only is California home to majority of the Mexican Americans population in the United States, but also it is the scene of Chicano cultural Renaissance and has contributed to Hispanic cultural renaissance in the United States. California has also been the home of Chicano publication—including magazines, newspapers, and scholarly journals. 7 Although much of the problems faced by Chicanos in the 20th century had been resolved through reforms during the Civil Rights Era, many Mexican Americans are still being marked by oppression and exploitation. Not only in the field, but industries as well. They are often found working at wage jobs and poor conditions. Over the next few decades, other social reforms for Mexican Americans can be expected. Almost six decades after it began, the Chicano Movement still holds a visible impact on California. As a result of activism in politics, education, and farm work, much of the hardship faced by Chicanos in the early history of California have been resolved. The most prominent outcome of the Chicano Movement are still within academia, with the formation of numerous student centers at college campuses across the nation that aims to students of color as well as the establishment of Chicano Studies Departments and so on. The Literary and art movements of the 1970s also left an enduring mark on the Chicano community. The impact of Chicanos in California gave rise to countless Chicano communities where none existed before. Although activists today are still working on the struggles faced by Chicanos today in various fields, such as farm work, their movement in the 1960s has surely impacted California social, economic and political standing.

Indian Steel Sector SWOT Analysis

Indian Steel Sector SWOT Analysis India has rich mineral resources. It has abundance of iron ore, coal and many other raw materials required for iron and steel making. It has the fourth largest iron ore reserves (10.3 billion tonnes) after Russia, Brazil, and Australia. Therefore, many raw materials are available at comparatively lower costs. It has the third largest pool of technical manpower, next to United States and the erstwhile USSR, capable of understanding and assimilating new technologies. Considering quality of workforce, Indian steel industry has low unit labour cost, commensurate with skill. This gets reflected in the lower production cost of steel in India compared to many advanced countries. With such strength of resources, along with vast domestic untapped market, Indian steel industry has the potential to face challenges successfully. The major strengths can be summarized as: Abundant resources of iron ore Low cost and efficient labor force Strong managerial capability Strongly globalised industry and emerging global competitiveness Modern new plants modernized old plants Strong DRI production base Regionally dispersed merchant rolling mills Weaknesses This are inherent in the quality and availability of some of the essential raw materials available in India, e.g., high ash content of indigenous coking coal adversely affecting the productive efficiency of iron-making and is generally imported. Also, Steel is a capital intensive industry; steel companies in India are charged an interest rate of around 14% on capital as compared to 2.4% in Japan and 6.4% in USA. In India the advantages of cheap labour get offset by low labour productivity; e.g., at comparable capacities labour productivity of SAIL and TISCO is 75 t/man year and 100 t/man years, for POSCO, Korea and NIPPON, Japan the values are 1345 t/man year and 980 t/man year. High administered price of essential inputs like electricity puts Indian steel industry at a disadvantage; about 45% of the input costs can be attributed to the administered costs of coal, fuel and electricity. The major weaknesses can be summarized as: High cost of energy Higher duties and taxes High cost of capital Quality of coking coal Labor laws Dependence on imports for steel manufacturing equipments technology Slow statutory clearances for development of mines Opportunities The biggest opportunity before Indian steel sector is that there is enormous scope for increasing consumption of steel in almost all sectors in India. The Indian rural sector remains fairly unexposed to their Multi-faceted use of steel. The usage of steel in cost Effective manner is possible in the area of housing, fencing, structures and other possible applications where steel can substitute other materials which not only could bring about Advantages to users but is also desirable for conservation of forest resources. Excellent potential exist for enhancing steel consumption in other sectors such as automobiles, packaging, engineering industries, irrigation and water supply in India. The key areas of opportunities can be summarized as: Huge Infrastructure demand Rapid urbanization Increasing demand for consumer durables Untapped rural demand Increasing interest of foreign steel producers in India Threats The linkage between the economic growth of a country and the growth of its steel industry is strong. The growth of the domestic steel industry between 1970 and 1990 was similar to the growth of the economy, which as a whole was sluggish. This strong relation in todays environment where the growth of the industry has become stagnant owing to the overall slowdown has resulted in enhanced rivalry among existing firms. As the industry is not growing the only other way to grow is by increasing ones market share. The Indian steel industry has witnessed spurts of price wars and heavy trade discounts, which has impacted the Indian Steel Industry. Slow growth in infrastructure development Market fluctuations and Chinas export possibilities Global economic slow down Govt. Regulations in Steel Sector Subsidies Interest Subsidy Huge amount of interest subsidy id provides by Indian govt. to PSUs in this sector. In the budget of 2008-09, a total of 60.72 crores of intersest subsidies were provided for the implementation of VRS scheme. Since VRS was for govt. companies so private sector didnt got affected by the VRS scheme, so in a way this subsidy was justified. The benefactors were Hindustan Steelworks Construction Ltd. and MECON. Waiver of guarantee fees Waiver of guarantee fee was on the guarantee given by Govt. of India for cash credit and Bank guarantee and for loans raised from Banks for implementation of VRS. The benefactors were Hindustan Steelworks Construction Ltd., Bharat Refractories Ltd. and MECON Capital Investment Subsidies Indian Govt. provides capital investment subsidies to PSUs. Govt. controlled Steel Development Fund helps PSUs and in private sector Tata steel by providing subsidized capital for financial Restructuring. However, new entrants, like Essar, Ispat and JVSL, who are negotiating with financial institutions (FIs) for capital restructuring, may feel the pinch. Also ,many state governments provide subsidized large capital investments such as new mill construction. The following states have actively engaged in capital incentive grants: Maharashtra, Karnataka, Jharkhand, Andhra Pradesh, Chhattisgarh. Other Regulations Programs that reduce or eliminate customs duties borne by steel producers, based on their exports. The Advanced License Program allow steel producers to import key inputs without paying basic customs fees. Iron export restraints that result in the sale of iron ore by Indias National Mining Development Council (NMDC) for less than cost. The NMDC has sold high-grade iron ore to steel producers at less than market value. Programs that provide steel producers with subsidized loans, lines of credit, tax exemptions, and loan guarantees. The Reserve Bank of India has developed a program through which steel producers can obtain export financing. The government-owned SAIL has received loan forgiveness under the Steel Development Fund. The awarding of captive mining rights for iron ore at less than cost. SAIL, Tata, JSW, and Jindal Steel and Power Limited have acquired iron ore from state-owned land at highly preferential rates estimated at one-fourth of market value. Exemptions from taxes and duties, as well as additional subsidies, for producers operating in Special Economic Zones. Under the 2005 SEZ Act, the Government of India has provided a variety of duty, tax, and fee exemptions. Export tariffs on iron ore supply In June 2008, India enacted export tariffs of 15 percent on all grades of iron ore, pig iron, and ferrous scrap. India revised its exports tariffs again in October and November 2008: the export tariff on pig iron has been revoked, but tariffs on iron ore and ferrous scrap remain in place. In addition, India maintains restrictions on the exports of certain high-grade iron ore. by Indias rapidly growing steel industry. Meanwhile, the GOI also announced plans for increased duties on imports of certain steel products in late 2008. Anti-Dumping Rules These are the measures to safeguard domestic industry from cheap steel exports of other countries. Recently, the government of India has levied anti-dumping duties on certain types of stainless steel that are shipped in from countries like China and Japan. The anti-dumping duties were imposed after finding that certain types of imported steel are landing at below the normal value in the countrys port. The subject countries will pay the duties in Indian currency, notified the board. The Central Board of Customs and Excise imposed the duties by saying that the domestic industry has suffered badly due to the imports from other countries. Licenses Iron ore mining licenses Iron being the basic raw material required such licenses play a major role in defining steel companies supply. Potential entrants The threat of potentially new entrants in the steel industry is low due to the high entry barriers that are present. Capital Requirement Steel industry requires heavy investment in a plant: blast furnace, basic oxygen converters, rolling mills, transportation and infrastructure to deliver high volume of raw materials and so on. It is estimated that between Rs 25-Rs.30 bn. is required to set up an integrated steel plant of 1 MTPA capacity depending on location of plant and technology used. Very few companies will be able to gather this kind of resources and it reduces the likelihood of new entrants. Government Policy Steel industry is a heavily protected industry and the government also has a favourable policy for steel manufacturers. The government can use a variety of strategies like tariffs, subsidies loan and import restrictions to ensure the competitiveness of the domestic market. As a result of government regulations and protections, it has often allowed the domestic steel market to continue operations even when better, cheap quality steel could be imported from another country. Also the steel market face environment regulations and industries are legally bound to develop cleaner and more efficient technologies. Regulation clearances and other issues are some other major concerns of new entrants. Economies of Scale Economies of scale are the cost advantages a business has due to expansion. The average cost of production of the firm decreases as the output increases. As far as steel sector is concerned, economies of scale reduce the costs, RD expenses and industries with economies of scale have better bargaining power while sourcing raw materials. Power of Buyers The buyers in the steel industry are usually quite large like some of the major steel consumption sectors like automobiles, oil gas, consumer durables, power generation which enjoy high bargaining power and obtain better deals for themselves. This tends to strengthen the buyer power somewhat. However steel is widely used in a wide variety of applications and steel companies can rely on relatively large number of customers overall which reduces the buyer power. There is not too much to distinguish between the products of companies in the market although some companies try to differentiate themselves by focussing on added-value speciality products. Lack of product differentiation tends to increase buyer power. However certain companies like TATA Steel enjoy a premium on their products because of its quality and its brand value. The buyers tend to enjoy a moderate level of power due to the relatively high no. Of players, low product differentiation and easy access to global markets. Power of Suppliers The key inputs for the steel industry are iron ore and metallurgical coal. The prices of these commodities are generally determined by large scale market forces which are beyond the control of individual steel making companies. Therefore in order to reduce suppliers power, some of the steel making companies go for backward integration. This strategy requires significant capital but it may be advantageous in the long run as the steel company need not depend on third party suppliers and it might offer the company an additional source of revenue if it can sell its raw materials to other companies. Some of the market players also tend to enter into long term contracts with their suppliers in order to fix price and protect against fluctuations. The bargaining power of suppliers is low for fully integrated steel plants like TATA STEEL which have their own mines of key raw materials like iron ore. However non-integrated or semi integrated steel plants like SAIL which import coking coal has to depend on suppliers. In India, NMDC is a major supplier to standalone and non integrated steel plants. Threat of Substitutes There are potential substitutes for steel available like steel reinforced concrete in building construction and aluminium or less common materials like fibreglass (glass-reinforced plastic).In fact, in the automobile industry where manufacturers are looking to use lighter materials aluminium or fibreglass can be especially advantageous. Automobile industry is one of the biggest markets for steel and steel faces competition from plastic and other composites. An aluminium car may be lighter and so more fuel efficient than a steel car. Furthermore, while metals such as steel can corrode, reinforced plastic is more durable. It is therefore possible for substitutes to fulfil the buyers needs more effectively than the original commodity. Steel has already been replaced in some large volume applications: railway sleepers (RCC sleepers), large diameter water pipes (RCC pipes), small diameter pipes (PVC pipes), and domestic water tanks (PVC tanks).The ability of consumers to adopt these subst itutes means that steelmakers cannot raise their prices indefinitely since at some point the substitute will turn out to be more cost effective. In spite of these factors, these alternatives are not very good replacements for steel. Aluminium is not preferable as a substitute for steel since the high cost of electricity used for the purification and extraction of aluminium in India outweighs its advantages as a substitute for steel in automobile industry. Using these substitutes would require substantial re-tooling of the assembly line. Certain large building and civil engineering projects which gain their structural strength from steel would become very difficult to construct if they are constructed using materials such as reinforced concrete. Thus although substitutes might be favourable in certain situations, switching costs are likely to be high. Thus the threat from substitutes is low. Competition The steel market is represented by several large players offering similar products and services. Steel is a commodity which is difficult to diversify strongly and being a commodity branding is not common and there is little difference between competing products. Although different customers require steel with different specifications(e.g. consistency in physical properties of steel, variations in strength, hardness, and bending properties) and steel producers try to specialize in order to reduce the competition but in doing so they also limit the size of their potential market. Therefore, the relative lack of diversification increases rivalry. Large companies present in the steel industry can take advantage of scale economies. The exit barriers are also high since many of the major tangible assets are highly specific to steel industry which makes it difficult to divest. As a result the steel makers are motivated to exist in the steel industry even when the market conditions are not good which tends to increase rivalry. The steel industry in India is also affected by macroeconomic conditions which further intensify rivalry. Local Competition for POSCO and ArcellorMittal SAIL Steel Authority of India (SAIL) is a steel manufacturing and marketing company. The Indian government owns about 86% of the outstanding shares of the company. SAIL is Indias second largest producer of iron ore. It is a fully integrated iron and steel maker, producing both basic and special steel products for domestic construction, engineering, power, railway, automotive, and defense industries, and for sale in export markets. The companys main steel products include hot and cold rolled sheets and coils, galvanized sheets, electrical sheets, structurals, railway products, plates, bars and rods, stainless steel, and other alloy steels. SAIL operates through eleven segments: Bhilai steel plant (BSP), Bokaro steel plant (BSL), Rourkela steel plant (RSP), Durgapur steel plant (DSP), IISCO steel plant (ISP), Salem steel plant (SSP), Visveswaraya iron and steel plant (VISL), Alloy steel plant (ASP), Maharashtra Elektrosmelt, power companies, and others. The five integrated steel plants have a combined capacity of 12.5 million tonnes of crude steel and 10.74 million tonnes of saleable steel. The company recorded net sales (sales net of excise duty) of INR431,767.6 million (approximately $9,421.2 million) in the financial year ended March 2009 (FY2009), an increase of 9.1% over FY2008. The operating profit of the company was INR75,600.2 million (approximately $1,649.6 million) in FY2009, a decrease of 22.8% compared with FY2008. The net profit was INR62,529.1 million (approximately $1,364.4 million) in FY2009, a decrease of 17.7% compared with FY2008. The main strengths of SAIL are its government backing and its captive sources of raw materials. SAIL has the second largest mining outfit in India after Coal India (CIL). Spread over the states of Jharkhand, Orissa, and Madhya Pradesh, the mines of SAIL serve as captive sources of raw materials for its integrated steel plants. SAIL has five iron ore mines at Meghahatuburu, Kiriburu, Bolani, Barsua, and Kalta; and four limestone/dolomite quarries at Kuteshwar, Purnapani, Bhawanathpur, and Tulsidamar. SAIL plans to meet its additional 40 million tonnes of iron ore requirement through the development of new mines at Rowghat in Chhatisgarh and Chiria, Taldih, South Block (Kiriburu), Central Block (Meghahataburu), and expansion of existing operations at Kiriburu, Meghahataburu, Bolani and Gua, all in Jharkhand. Furthermore, it is developing new coal mines at Tasra and Sitanala in Jharkhand, which will produce about 2.5 million tonnes of washed coking coal per annum in the next three to four years. Captive sources of raw materials provide a competitive advantage as they shield the company from fluctuations in raw material prices. However if they are successful in entering India, competition from global steel manufacturers with expanded production capacity, such as ArcelorMittal and POSCO, could result in significant price competition, declining margins, and reductions in revenue for the company. Tata Steel Tata Steel Group is a private sector steel group in India. It is the worlds sixth largest steel company with capacity of 31 million tonnes per annum (tpa). Set up as Asias first integrated steel plant and Indias largest integrated private sector steel company, it is the worlds second most geographically diversified steel producer, with operations in 26 countries and commercial presence in more than 50 countries. The group operates across Asia, Europe, and Australia. Tata Steel Group operates through two segments: Steel and others. The steel segment comprises the subsidiaries, Tata Steel India, Tata Steel Europe, NatSteel Holdings, and Tata Steel (Thailand) Public Company. The group recorded revenues of INR1,473,292.6 million (approximately $32,147.2 million) in the financial year ended March 2009 (FY2009), an increase of 12% over FY2008. The operating profit of the group was INR141,279.5 million (approximately $3,082.7 million) in FY2009, compared with an operating profit of INR 141,213.4 million (approximately $3,081.3 million) in FY2008. The net profit was INR49,509 million (approximately $1,080.3 million) in FY2009, a decrease of 59.9% compared with FY2008. SWOT Analysis A key strength of Tata Steel is its strong RD capabilities through which it develops new products and improves existing products, as well as enhances manufacturing and production methods. Tata Steel Group operates four research centers: Tata Steel Limiteds (TSL) laboratories in Jamshedpur and the Tata Steel Europes (TSE) technology centers in IJmuiden, Netherlands and Rotherham and Teesside, the UK. The group is undertaking research activities in several areas. Tata Steel Group is currently working on various projects that include economic mineral beneficiation aimed at identifying ways to maximize use of raw materials from captive sources; new generation high strength steels, advanced coatings developments, production of ferro-chrome with less energy; hydrogen harvesting, developing state-of-the-art thin film photovoltaic systems, and reducing carbon dioxide (CO2) emissions across its operations. As of March 2009, the patent portfolio of Tata Steel Group comprised over 850 patent applications at various stages between filing and grant and over 850 valid patents granting national exclusive rights owned by the respective group companies. However a weakness for this company is its dependence on Europe as a key market. In FY2009, the company generated about 65% of its revenues from Europe. The depressed levels of demand in the region had a major impact on stainless steel markets. Minor changes in price levels, periodic demand growth, or currency rates in specific market areas and regions can affect Tata Steel Groups competitive position and financial performance. As with SAIL, competition from global steel manufacturers with expanded production capacity, such as ArcelorMittal and POSCO, could result in significant price competition, declining margins, and reductions in revenue for the company. Essar Steel Essar Steel (Essar) is a manufacturer of flat carbon steel from iron ore to ready-to-market products. The companys subsidiaries manufacture gas-based hot briquetted iron (HBI), steel pipes and cold rolled steel. The company operates in India, Canada, the US, the Middle East and Asia. It is headquartered in Mumbai, Maharastra. The company recorded revenues of INR116,883 million (approximately $2,550.4 million) in the fiscal year ended March 2009, an increase of 8.8% over 2008. The companys operating profit was INR17,969.4 million (approximately $392.1 million) in fiscal 2009, an increase of 13.3% over 2008. Its net profit was INR1,852 million (approximately $40.4 million) in fiscal 2009, a decrease of 56.8% compared to 2008. Jindal Steel Jindal Steel Power (JSPL), part of the Jindal Group, is engaged in steel manufacturing, power generation, coal and iron-ore mining, and exploration and mining of minerals and metals. JSPL operates in India. It is headquartered in New Delhi, India and employs about 15,000 people. The company recorded revenues of INR109,133.7 million (approximately $2,381.3 million) in the financial year ended March 2009 (FY2009), an increase of 97% over FY2008. The operating profit of the company was INR42,677.5 million (approximately $931.2 million) in FY2009, compared with INR17,737.3 million (approximately $387 million) in FY2008. The net profit was INR30,457.2 million (approximately $664.6 million) in FY2009, compared with INR 12,740.2 million (approximately $278 million) in FY2008. Entry Strategy of POSCO and ArcellorMittal The foreign steel MNCs opted to enter India through the FDI route. POSCO signed a Memorandum of Understanding (MoU) with the Government of Orissa in June 2005, to set up a 12 MTPA green field steel plant near Paradip, Jagatsinghpur District, Orissa, with an estimated investment of USD 12 billion. The company planned to build a 4 million-tons per annum capacity steel plant in Orissa, during the first phase of its project , and expand the final production volume to 12 million tons per annum. POSCO-India Pvt. Ltd. was incorporated on 25th August 2005. In 2007, POSCO and SAIL signed a MoU to establish a strategic alliance for aligning and cooperating with each other in a wide range of strategic business and commercial interest areas. As per the MoU they agreed to cooperate in the following areas of business: information sharing in the area of corporate strategy planning, exchange of engineers, technicians and other professionals, sharing of know-how and expertise in the areas of development of mines and business practices such as ERP, PI and Six Sigma, joint usage of each others existing marketing and warehousing network, coordination in procurement of coking coal, nickel and ferro-alloys and engagement of transportation vessels. The strategic alliance between POSCO and SAIL was forged so as to synergise their strengths, and retain their identities in the consolidating global steel industry. This alliance was supposed to reinforce the relationship and open the doors of large scale collaboration on strategic business and commercial alignment. ArcellorMittal India Ltd., a subsidiary of ArcellorMittal, entered into a Memorandum of Understanding (MoU) with the Government of Orissa on 21st December 2006 to set up their first green field integrated steel plant of initial capacity 6 million tons per year (MTPY) at an investment of around 9,300 million USD. ArcelorMittal had also proposed to set up a 12-Million Tonne Per Annum (MTPA) new steel plant in Jharkhand. In the case of both the companies, however, their plans for mega steel plants in India have not fructified due to delays in land acquisition and grant of mining leases. Hence, both the foreign steel giants have started looking for Joint-Venture opportunities in order to become operational in the lucrative Indian market. POSCO has announced a JV with Steel Authority of India Ltd. (SAIL) to set up a facility in India. ArcellorMittal also entered into a partnership agreement with steel producer Uttam Galva to buy 35 per cent stake in the latter, partly through share purchase from existing promoters and an open offer. ArcellorMittal is also rumoured to be pursuing a JV with SAIL POSCO-SAIL JV Steel Authority of India Limited (SAIL) and Pohang Iron and Steel Company (POSCO) have agreed to form a joint venture to establish a 3 million ton steel manufacturing unit in Bokaro, India with a total investment of approximately INR150,000 million ($3,232.37 million). SAIL is an India-based manufacturer and supplier of steel and its allied products, while POSCO is a South Korea-based steel manufacturer. As part of the partnership, POSCO will hold a 51% stake in the joint venture by investing INR35,000 million ($754.22 million), while SAIL will hold a 49% stake. The proposed joint venture will also include setting up a 0.3 million ton cold rolled non-oriented (CRNO) steel plant in Maharashtra, India The joint venture with POSCO will allow SAIL to access the latest technology in steel manufacturing and facilitate production of certain special grades of steel. ArcellorMittal-SAIL JV According to The Economic Times, ArcelorMittal, a Luxembourg-based steel producer, may form a 50:50 joint venture (JV) with Steel Authority of India Limited, an Indian steel maker, to establish a steel plant at Bokaro, India. The JV will have a capacity between 3 to 4 million tonnes with an investment of approximately INR120,000 million ($2,697.06 million). Conclusion The Indian steel industry has to factor in higher transaction costs, logistics costs and railway freight costs as compared to countries such as China and South Korea. Even electricity and interest costs in India are quite high, which makes the industry uncompetitive. As for labour costs, the industry suffers a comparative disadvantage vis-Ã  -vis Russia, China and South Korea, even though wage rates are low in India. This is because the labour cost per tonne in India is much higher than these three countries, and therefore, labour productivity is very low. Yet, most of the major Indian steel producers have gained some competitive edge over the years. The Indian steel manufacturers also enjoy other advantages like abundant supply of raw materials, skilled technical manpower, low wage rates and locational advantages. These provide about 55-60 per cent advantage in terms of operational costs. In the final analysis, it is imperative that Indian steel companies become significantly more competitive by improving productivity further and going in for rapid technological upgradation. The companies need to shift focus to competing on superior products and processes, rather than competing on factor endowments. This becomes all the more important since giants like POSCO have realised the competitive advantage that India offers and decided to establish a manufacturing base in India. With international steel giants such as POSCO breathing down the neck of Indian steel makers, it will be even more difficult for the latter to face competition in both domestic as well as international markets. As for POSCO and ArcellorMittal, who are facing huge roadblocks in setting up their plants in India due to land acquisition and mining licence issues, they can pursue projects with lesser hassle in other developing countries like Mexico and Vietnam. In India, they have the support of the government and hence, gradually they have to appease the tribal people that setting up a steel plant will be to their benefit. The tribal people must be compensated in a commensurate manner and all environmental protocols must be maintained. Then the foreign MNCs can expect to have a smooth road ahead in their Indian ventures.

Materialism in Todays Society Essay -- Consumerism America Capitalism

Materialism in Today's Society Have you ever sat down and really thought about how much you value your possessions? Do you value your belongings more than you value friends, family, love, or yourself? The truth is that obsession with possessions has become a way of life in today's society. Materialism has been defined as the theory or doctrine that physical well-being and worldly possessions constitute the greatest good and highest value in life. (Heritage Dictionary, 3rd ed.) This means that we look to possessions to bring us happiness. We then use these possessions to make things and people behave or respond the way we desire. We have become so successful at fabricating and manipulating the world that we have come to believe that altering our surroundings is the way to solve all of our problems. We go through life contemplating that inner well-being depends on what we have or do. Due to these assumptions, materialism now carries the status that people?s religion, occupations, and bloodlines used to carry (Twitchell 1999). We identify ourselves and others by what we wear, what we have, and what brands we sport. Our unrestrained consumption ascends the unlimited number of goods and merchandise available (Twitchell 1999). As the quantity and variety of products grow Materialism in Today?s Society 3 larger, so does the demand for these products, thus resulting in mass branding. A brand is a product name or logo, that when consumers become familiar with, immediately brings to mind a specific product or service (Pavitt 5).We, as humans, want to fit in so we wear and use certain brand names because of the status we gain from them. Everywhere we look, there are dozens of newspapers, magazines, billboards, and televis... ...e. Materialism has been found to help us deal with life and problems and help us escape from all the issues of the real world? Just like a drug, material objects, luxury, and all the finer things bring us happiness and fulfillment. This is why I have come to believe that materialism has become more of a way of life for people in today?s society. References Boston, Gabriella (2003). Designed to Fit In; Teen Fashion Defined by Peer Pressure. (The Washington Times, D01). Bothelo, Greg (2002). The Brand Name Game. (CNN New York, Dec. 05, 2005). Pavitt, Jane. Brand. New. (New Jersey: Princeton University Press, 2000). Russel, Peter (2000). Waking Up in Time, Materialism- An Addictive Meme. Kulman, Linda (2000) Our Consuming Interest. (U.S. News and World Report, 2000). Plasticsurgeryresearch.info. Cosmetic Plastic Surgery Research. (2002-2003).

Asthma or a Chronic Inflammatory Disorder of the Airways

No longer is asthma considered a condition with isolated, acute episodes of bronchospasm. Rather, asthma is now understood to be a chronic inflammatory disorder of the airways—that is, inflammation makes the airways chronically sensitive. When these hyper-responsive airways are irritated, airflow is limited, and attacks of coughing, wheezing, chest tightness, and breathing difficulty occur. Asthma involves complex interactions among inflammatory cells, mediators, and the cells and tissues in the airways. The interactions result in airflow limitation from acute broncho-constriction, swelling of the airway wall, increased mucus secretion, and airway remodeling. The inflammation also causes an increase in airway responsiveness.During an asthma attack, the patient attempts to compensate by breathing at a higher lung volume in order to keep the air flowing through the constricted airways, and the greater the airway limitation, the higher the lung volume must be to keep airways open . The morphologic changes that occur in asthma include bronchial infiltration by inflammatory cells. Key effector cells in the inflammatory response are the mast cells, T lymphocytes, and eosinophils.Mast cells and eosinophils are also significant participants in allergic responses, hence the similarities between allergic reactions and asthma attacks. Other changes include mucus plugging of the airways, interstitial edema, and microvascular leakage. Destruction of bronchial epithelium and thickening of the subbasement membrane is also characteristic. In addition, there may be hypertrophy and hyperplasia of airway smooth muscle, increase in goblet cell number, and enlargement of sub-mucous glands. Although causes of the initial tendency toward inflammation in the airways of patients with asthma are not yet certain, to date the strongest identified risk factor is atopy.This inherited familial tendency to have allergic reactions includes increased sensitivity to allergens that are risk factors for developing asthma. Some of these allergens include domestic dust mites, animals with fur, cockroaches, pollens, and molds. Additionally, asthma may be triggered by viral respiratory infections, especially in children. By avoiding these allergens and triggers, a person with asthma lowers his or her risk of irritating sensitive airways. A few avoidance techniques include: keeping the home clean and well ventilated, using an air conditioner in the summer months  when pollen and mold counts are high, and getting an annual influenza vaccination.Of course, asthma sufferers should avoid tobacco smoke altogether. Cigar, cigarette, or pipe smoke is a trigger whether the patient smokes or inhales the smoke from others. Smoke increases the risk of allergic sensitization in children, increases the severity of symptoms, and may be fatal in children who already have asthma. Many of the risk factors for developing asthma may also provoke asthma attacks, and people with asthma may ha ve one or more triggers, which vary from individual to individual. The risk can be further reduced by taking medications that decrease airway inflammation. Most exacerbations can be prevented by the combination of avoiding triggers and taking anti-inflammatory medications.An exception is physical activity, which is a common trigger of exacerbations in asthma patients. However, asthma patients should not necessarily avoid all physical exertion, because some types of activity have been proven to reduce symptoms. Rather, they should work in conjunction with a doctor to design a proper training regimen, which includes the use of medication. In order to diagnose asthma, a healthcare professional must appreciate the underlying disorder that leads to asthma symptoms and understand how to recognize the condition through information gathered from the patient's history, physical examination, measurements of lung function, and allergic status.Because asthma symptoms vary throughout the day, th e respiratory system may appear normal during physical examination. Clinical signs are more likely to be present when a patient is experiencing symptoms; however, the absence of symptoms upon examination does not exclude the diagnosis of asthma.

Interpersonal communications improvement plan Essay

Problem: I have developed a bad habit of not having confidence in myself at college, in my study habits, and expressing myself. Goal: To improve my self-confidence, I will keep a good self-image. I will imagine myself as a strong, confident and decisive person. I will think and act positively. I plan to learn new study habits. I will be able to speak with my teachers and advisors about my problems. Procedure: First, I will have the confidence to ask for help. Next, I will not waste time, energy and effort by worrying about my weakness and deficits. I will seek help and ask more questions to better myself. I will be more open about my problems. Finally, I will stop worrying about problems and work through them. Test of Achieving Goal: I will know I have achieved this goal, when I become more comfortable asking for help to develop better study habits. The proof will be seen in my test scores and research papers, which will show me that I can improve my grades in college through perseverance. Journal Entry 1 Date: Oct. 4, 2006 Results: I talked to my English teacher about my research paper that is due next week. She helped me with my mistakes. She said it was a good paper overall. Journal Entry 2 Date: Oct. 4, 2006 Results: I talked to my baseball coach and explained my problems with my grades. He wants to help me in any way possible. Journal Entry 3 Date: Oct. 5, 2006 Results: I talked with my advisor. I opened up to him by explaining that I can’t believe my tests scores, after doing so much studying. He led me in directions that should increase the effectiveness of my study habits. He knows that I can do it. Journal Entry 4 Date: Oct. 6, 2006 Results: I emailed all of my teachers. I asked them how to improve my grades. I also requested study tips from them. Journal Entry 5 Date: Oct 7, 2006 Results: I put to use the study tips from Dr. Bommarito. I didn’t get frustrated with all of the information that I needed to learn for my history test. I had to do it, so I did. Journal Entry 6 Date Oct. 8, 2006 Results: I asked my parents to see how my studying was coming along. They asked me questions from flash cards that I made. They were very supportive. They were very happy to see the new methods I have been using. They could see how I was not getting as frustrated while studying and writing research papers. Interpersonal Communications Improvement Summary My original intention was to use confident behavior to improve my study skills, so that I may get better grades. I feel that I accomplished this, even in such a short time. Emailing my teachers was a small step, but I believe it will pay off in the long run. Each time I talked to one of my teachers and coaches, it gave me more confidence to try again. They were all receptive to my needs, and gave me good advice to help improve my grades and my study habits. I would have to say that my biggest concern was asking for help from my parents. However, by the time I talked to my parents, my confidence level was up from my interactions with my teachers and coaches. I do not get as frustrated as I have in the past. I also felt concern over how my coach would view me after I opened up to him. His reaction was very supportive, as were my parents. I now feel a lot of encouragement from the people who are most important to me. It means so much to me that they were all willing to sit down and go over assignments with me and give me many good study tips. I am now more comfortable talking to them because I know they believe in me. I was surprised about how much easier studying has become since applying the tips I have received, especially from Dr. Bommarito. I am anxious to see the results in my improved test scores and research papers. My self-concept has greatly improved. I feel confident that I can get the help I need by just asking for it. I feel confident in my new study skills. I feel confident that I can continue to learn more study skills, and that I can improve my grades by applying what I have learned. This has been a good experience for me overall.