Deception Point Page 83

Tolland turned to her. â€Å"You okay? You could have stayed onshore. I told you that.† I should have stayed onshore, Rachel thought, knowing pride would never have let her. â€Å"No thanks, I'm fine.† Tolland smiled. â€Å"I'll keep an eye on you.† â€Å"Thanks.† Rachel was surprised how the warmth in his voice made her feel more secure. â€Å"You've seen the Goya on television, right?† She nodded. â€Å"It's a†¦ um†¦ an interesting-looking ship.† Tolland laughed. â€Å"Yeah. She was an extremely progressive prototype in her day, but the design never quite caught on.† â€Å"Can't imagine why,† Rachel joked, picturing the ship's bizarre profile. â€Å"Now NBC is pressuring me to use a newer ship. Something†¦ I don't know, flashier, sexier. Another season or two, and they'll make me part with her.† Tolland sounded melancholy at the thought. â€Å"You wouldn't love a brand-new ship?† â€Å"I don't know†¦ a lot of memories onboard the Goya.† Rachel smiled softly. â€Å"Well, as my mom used to say, sooner or later we've all got to let go of our past.† Tolland's eyes held hers for a long moment. â€Å"Yeah, I know.† 98 â€Å"Shit,† the taxi driver said, looking over his shoulder at Gabrielle. â€Å"Looks like an accident up ahead. We ain't going nowhere. Not for a while.† Gabrielle glanced out the window and saw the spinning lights of emergency vehicles piercing the night. Several policemen stood in the road ahead, halting traffic around the Mall. â€Å"Must be a hell of an accident,† the driver said, motioning toward some flames near the FDR Memorial. Gabrielle frowned at the flickering glow. Now, of all times. She needed to get to Senator Sexton with this new information about PODS and the Canadian geologist. She wondered if NASA's lies about how they found the meteorite would be a big enough scandal to breathe life back into Sexton's campaign. Maybe not for most politicians, she thought, but this was Sedgewick Sexton, a man who had built his campaign on amplifying the failures of others. Gabrielle was not always proud of the senator's ability to put negative ethical spin on opponents' political misfortunes, but it was effective. Sexton's mastery of innuendo and indignity could probably turn this one compartmentalized NASA fib into a sweeping question of character that infected the entire space agency-and by association, the President. Outside the window, the flames at the FDR Memorial seemed to climb higher. Some nearby trees had caught fire, and the fire trucks were now hosing them down. The taxi driver turned on the car radio and began channel-surfing. Sighing, Gabrielle closed her eyes and felt the exhaustion roll over her in waves. When she'd first come to Washington, she'd dreamed of working in politics forever, maybe someday in the White House. At the moment, however, she felt like she'd had enough politics for a lifetime-the duel with Marjorie Tench, the lewd photographs of herself and the senator, all of NASA's lies†¦ A newscaster on the radio was saying something about a car bomb and possible terrorism. I've got to get out of this town, Gabrielle thought for the first time since coming to the nation's capital. 99 The controller seldom felt weary, but today had taken its toll. Nothing had gone as anticipated-the tragic discovery of the insertion shaft in the ice, the difficulties of keeping the information a secret, and now the growing list of victims. Nobody was supposed to die†¦ except the Canadian. It seemed ironic that the most technically difficult part of the plan had turned out to be the least problematic. The insertion, completed months ago, had come off without a hitch. Once the anomaly was in place, all that remained was to wait for the Polar Orbiting Density Scanner (PODS) satellite to launch. PODS was slated to scan enormous sections of the Arctic Circle, and sooner or later the anomaly software onboard would detect the meteorite and give NASA a major find. But the damned software didn't work. When the controller learned that the anomaly software had failed and had no chance of being fixed until after the election, the entire plan was in jeopardy. Without PODS, the meteorite would go undetected. The controller had to come up with some way to surreptitiously alert someone in NASA to the meteorite's existence. The solution involved orchestrating an emergency radio transmission from a Canadian geologist in the general vicinity of the insertion. The geologist, for obvious reasons, had to be killed immediately and his death made to look accidental. Throwing an innocent geologist from a helicopter had been the beginning. Now things were unraveling fast. Wailee Ming. Norah Mangor. Both dead. The bold kill that had just taken place at the FDR Memorial. Soon to be added to the list were Rachel Sexton, Michael Tolland, and Dr. Marlinson. There is no other way, the controller thought, fighting the growing remorse. Far too much is at stake. 100 The Coast Guard Dolphin was still two miles from the Goya's coordinates and flying at three thousand feet when Tolland yelled up to the pilot. â€Å"Do you have NightSight onboard this thing?† The pilot nodded. â€Å"I'm a rescue unit.† Tolland had expected as much. NightSight was Raytheon's marine thermal imaging system, capable of locating wreck survivors in the dark. The heat given off by a swimmer's head would appear as a red speck on an ocean of black. â€Å"Switch it on,† Tolland said. The pilot looked confused. â€Å"Why? You missing someone?† â€Å"No. I want everyone to see something.† â€Å"We won't see a thing on thermal from this high up unless there's a burning oil slick.† â€Å"Just switch it on,† Tolland said. The pilot gave Tolland an odd look and then adjusted some dials, commanding the thermal lens beneath the chopper to survey a three-mile swatch of ocean in front of them. An LCD screen on his dashboard lit up. The image came into focus. â€Å"Holy shit!† The helicopter lurched momentarily as the pilot recoiled in surprise and then recovered, staring at the screen. Rachel and Corky leaned forward, looking at the image with equal surprise. The black background of the ocean was illuminated by an enormous swirling spiral of pulsating red. Rachel turned to Tolland with trepidation. â€Å"It looks like a cyclone.† â€Å"It is,† Tolland said. â€Å"A cyclone of warm currents. About a half mile across.† The Coast Guard pilot chuckled in amazement. â€Å"That's a big one. We see these now and then, but I hadn't heard about this one yet.† â€Å"Just surfaced last week,† Tolland said. â€Å"Probably won't last more than another few days.† â€Å"What causes it?† Rachel asked, understandably perplexed by the huge vortex of swirling water in the middle of the ocean. â€Å"Magma dome,† the pilot said. Rachel turned to Tolland, looking wary. â€Å"A volcano?† â€Å"No,† Tolland said. â€Å"The East Coast typically doesn't have active volcanoes, but occasionally we get rogue pockets of magma that well up under the seafloor and cause hot spots. The hot spot causes a reverse temperature gradient-hot water on the bottom and cooler water on top. It results in these giant spiral currents. They're called megaplumes. They spin for a couple of weeks and then dissipate.† The pilot looked at the pulsating spiral on his LCD screen. â€Å"Looks like this one's still going strong.† He paused, checking the coordinates of Tolland's ship, and then looked over his shoulder in surprise. â€Å"Mr. Tolland, it looks like you're parked fairly near the middle of it.† Tolland nodded. â€Å"Currents are a little slower near the eye. Eighteen knots. Like anchoring in a fast-moving river. Our chain's been getting a real workout this week.†

Deception Point Page 101

Now, with Sexton standing before her, staring down, she sensed him searching her eyes for a lie. Sedgewick Sexton could smell untruths like nobody Gabrielle had ever met. If she lied to him, Sexton would know. â€Å"You've been drinking,† Gabrielle said, turning away. How does he know I was in his office? Sexton put his hands on her shoulders and spun her back around. â€Å"Were you in my office?† Gabrielle felt a rising fear. Sexton had indeed been drinking. His touch was rough. â€Å"In your office?† she demanded, forcing a confused laugh. â€Å"How? Why?† â€Å"I heard my Jourdain in the background when I called you.† Gabrielle cringed inwardly. His clock? It had not even occurred to her. â€Å"Do you know how ridiculous that sounds?† â€Å"I spend all day in that office. I know what my clock sounds like.† Gabrielle sensed she had to end this immediately. The best defense is a good offense. At least that's what Yolanda Cole always said. Placing her hands on her hips, Gabrielle went for him with all she had. She stepped toward him, getting in his face, glaring. â€Å"Let me get this straight, senator. It's four o'clock in the morning, you've been drinking, you heard a ticking on your phone, and that's why you're here?† She pointed her finger indignantly down the hall at his door. â€Å"Just for the record, are you accusing me of disarming a federal alarm system, picking two sets of locks, breaking into your office, being stupid enough to answer my cellphone while in the process of committing a felony, rearming the alarm system on my way out, and then calmly using the ladies' room before I run off with nothing to show for it? Is that the story here?† Sexton blinked, wide-eyed. â€Å"There's a reason people shouldn't drink alone,† Gabrielle said. â€Å"Now do you want to talk about NASA, or not?† Sexton felt befuddled as he walked back into his office. He went straight to his wet bar and poured himself a Pepsi. He sure as hell didn't feel drunk. Could he really have been wrong about this? Across the room, his Jourdain ticked mockingly. Sexton drained his Pepsi and poured himself another, and one for Gabrielle. â€Å"Drink, Gabrielle?† he asked, turning back into the room. Gabrielle had not followed him in. She was still standing in the doorway, rubbing his nose in it. â€Å"Oh, for God's sake! Come in. Tell me what you found out at NASA.† â€Å"I think I've had enough for tonight,† she said, sounding distant. â€Å"Let's talk tomorrow.† Sexton was in no mood for games. He needed this information now, and he had no intention of begging for it. He heaved a tired sigh. Extend the bond of trust. It's all about trust. â€Å"I screwed up,† he said. â€Å"I'm sorry. It's been a hell of a day. I don't know what I was thinking.† Gabrielle remained in the doorway. Sexton walked to his desk and set Gabrielle's Pepsi down on his blotter. He motioned to his leather chair-the position of power. â€Å"Have a seat. Enjoy a soda. I'm going to go stick my head in the sink.† He headed for the bathroom. Gabrielle still wasn't moving. â€Å"I think I saw a fax in the machine,† Sexton called over his shoulder as he entered the bathroom. Show her you trust her. â€Å"Have a look at it for me, will you?† Sexton closed the door and filled the sink with cold water. He splashed it on his face and felt no clearer. This had never happened to him before-being so sure, and being so wrong. Sexton was a man who trusted his instincts, and his instincts told him Gabrielle Ashe had been in his office. But how? It was impossible. Sexton told himself to forget about it and focus on the matter at hand. NASA. He needed Gabrielle right now. This was no time to alienate her. He needed to know what she knew. Forget your instincts. You were wrong. As Sexton dried his face, he threw his head back and took a deep breath. Relax, he told himself. Don't get punchy. He closed his eyes and inhaled deeply again, feeling better. When Sexton exited the bathroom, he was relieved to see Gabrielle had acquiesced and come back into his office. Good, he thought. Now we can get to business. Gabrielle was standing at his fax machine flipping through whatever pages had come in. Sexton was confused, however, when he saw her face. It was a mask of disorientation and fear. â€Å"What is it?† Sexton said, moving toward her. Gabrielle teetered, as if she were about to pass out. â€Å"What?† â€Å"The meteorite†¦ † she choked, her voice frail as her trembling hand held the stack of fax papers out to him. â€Å"And your daughter†¦ she's in danger.† Bewildered, Sexton walked over, and took the fax pages from Gabrielle. The top sheet was a handwritten note. Sexton immediately recognized the writing. The communique was awkward and shocking in its simplicity. Meteorite is fake. Here's proof. NASA/White House trying to kill me. Help! RS The senator seldom felt totally at a loss of understanding, but as he reread Rachel's words, he had no idea what to make of them. The meteorite is a fake? NASA and the White House are trying to kill her? In a deepening haze, Sexton began sifting through the half dozen sheets. The first page was a computerized image whose heading read â€Å"Ground Penetrating Radar (GPR).† The picture appeared to be an ice-sounding of some sort. Sexton saw the extraction pit they had talked about on television. His eye was drawn to what looked like the faint outline of a body floating in the shaft. Then he saw something even more shocking-the clear outline of a second shaft directly beneath where the meteorite had been-as if the stone had been inserted from underneath the ice. What in the world? Flipping to the next page, Sexton came face-to-face with a photograph of some sort of living ocean species called a Bathynomous giganteus. He stared in utter amazement. That's the animal from the meteorite fossils! Flipping faster now, he saw a graphic display depicting the ionized hydrogen content in the meteorite's crust. This page had a handwritten scrawl on it: Slush-hydrogen burn? NASA Expander Cycle Engine? Sexton could not believe his eyes. With the room starting to spin around him, he flipped to the final page-a photo of a rock containing metallic bubbles that looked exactly like those in the meteorite. Shockingly, the accompanying description said the rock was the product of oceanic volcanism. A rock from the ocean? Sexton wondered. But NASA said chondrules form only in space! Sexton set the sheets down on his desk and collapsed in his chair. It had taken him only fifteen seconds to piece together everything he was looking at. The implications of the images on the papers were crystal clear. Anyone with half a brain could see what these photos proved. The NASA meteorite is a fake! No day in Sexton's career had been filled with such extreme highs and lows. Today had been a roller-coaster ride of hope and despair. Sexton's bafflement over how this enormous scam could possibly have been pulled off evaporated into irrelevance when he realized what the scam meant for him politically. When I go public with this information, the presidency is mine! In his upwelling of celebration, Senator Sedgewick Sexton had momentarily forgotten his daughter's claim that she was in trouble. â€Å"Rachel is in danger,† Gabrielle said. â€Å"Her note says NASA and the White House are trying to-â€Å" Sexton's fax machine suddenly began ringing again. Gabrielle wheeled and stared at the machine. Sexton found himself staring too. He could not imagine what else Rachel could be sending him. More proof? How much more could there be? This is plenty! When the fax machine answered the call, however, no pages came through. The machine, detecting no data signal, had switched to its answering machine feature.

Comparison Essay Example | Topics and Well Written Essays - 1000 words - 4

Comparison - Essay Example However different the conditions are, they also share a few similarities. The similarities and differences come out only well after thorough analysis of the two conditions. A decision by a first year college student to either reside in campus or off-campus ends up having total transformation of his or her life (Morris, 2008, 77). It is inevitable that staying in campus hostel will influence the life of a college student and staying at home has its pros and cons. Living in campus hostels exerts a pleasant experience on one student and an awful ordeal for another. Living in the dormitory is a necessity for some people. The forms of advantages and benefits compared for the two living conditions relate to closeness in terms of accessing classes and campus, cost advantages, availability of affordable and nutritious food, additional benefits of education to the student, as well as available opportunities for student to involve in such as entertainment and co-curricular activities. Living off-campus means that a student will commute to campus because he or she lives in an apartment, a fraternity, or a sorority. Living off-campus lacks the advantage of proximity to campus and classes. It would require some of the student who do not live in campus hostels to travel long tiring distances every morning to get to class and have to wake up early enough to catch up with early classes and in some cases avoid traffic jams on the way to college. Those who already live in college hostels do not have these problems. The situation presents a problem to students especially in times of winter. During this season students do not like waking up therefore, skiving classes becomes a common occurrence. Beds become far more inviting during winter compared to the journey to class. The cost of living outside for instance, in an apartment can be very high. In some regions

Nike Case study Analyzing and Discussing Essay Example | Topics and Well Written Essays - 2000 words

Nike Case study Analyzing and Discussing - Essay Example is a company that has come to symbolize both the benefits and the risks inherent in globalization. During the year 1998, the company was under attack for allegedly exploiting overseas factory workers. In the past few years, the Nike Corporation has offered a microcosm of the issues surrounding consumerism and the global free market economy. Nike, like many other corporations from the economized world, has been criticized for exploiting laborers in manufacturing plants relocated to less economized societies. This exploitation has appeared grosser in that they are producing luxury products for over consumptive economized societies and disproportionally reward their star endorsers with lucrative contracts. The mounting criticism and campaigns against Nike, however, have not had much impact on a key part of their market, urban African-America (Watts, 2000). Poor African Americans understandably have some difficulty extending concern for abuses of workers overseas when the injustices they face in their own country are similarly acute. Although multinationals are eager to pursue the opportunities of increased global integration, they are increasingly aware of the reactions which their strategies induce - both at home and abroad. As part of the analysis of the case study of Nike Inc., this paper examines the difficulties and complexities that the company had to face with respect to its overseas labor problems. Discussions Exploitation of overseas workers of the company The labor practices that the company followed with respect to its overseas laborers was the major crisis that the company is facing (Lee, 2000). Nike developed a strong working relationship with two Japanese shoe manufacturers, Nippon Rubber and Nihon-Koyo, but as costs/prices increased in Japan over the course of the 1970s Nike began to search for alternative, lower-cost producers. During these same years, Nike opened up its own shoe factories in Maine and New Hampshire, hoping to develop a reliable and high-quality source to supply its growing domestic market. At the same time, the company also began to cultivate potential suppliers in Korea, Thailand, China and Taiwan. Over time, as Korea and Taiwan also began to develop, costs began to rise in these countries as well. As a result, Nike began to urge its suppliers to re-locate their operations to other, lower-cost countries. The company worked with its lead suppliers to open up manufacturing plants in Indonesia, China and Vietnam. By guaranteeing a significant number of orders and by placing Nike employees at these new factories to help monitor product quality and production processes, Nike was able to help its lead vendors establish an extensive network of footwear factories throughout Southeast Asia (Locke). The same factors that permitted Nike to grow at an impressive rate over the last several decades - taking advantage of global sourcing opportunities to produce lower cost products and investing these savings into innovative designs and marketing campaigns - have also created serious problems for the company in recent years. Though analysts and many others feel that the management of the company is responsible for this crisis, it cannot be said so. The company and its management cannot be 100% responsible since it is the

Quick Response (QR) Codes Coursework Example | Topics and Well Written Essays - 750 words

Quick Response (QR) Codes - Coursework Example This particular code is quite widespread in several nations throughout the globe including Japan and Germany and is gaining popularity in terms of execution by a greater level (Petersen, 2012). With this concern, this paper intends to present the advantages along with the disadvantages regarding the execution of QR codes. Advantages and Disadvantages of QR Codes After acquiring a brief idea about the notion of QR codes, it can be viewed that QR codes possesses certain advantages along with disadvantages. Today, this particular code is widely adopted and executed in every operational field or industry such as healthcare for the purpose of mitigating any adverse situation. In accordance with the scenario provided, it can be observed that it is the emergency workers in Marin Country who are largely using this particular advanced technology i.e. QR codes in order to save an extensive figure of lives in emergency situations. This technology i.e. QR code is often considered to be â€Å"ne w-fangled technology† which has proved to be quiet effective in healthcare segment. Prior to discussing about the advantages and the disadvantages of QR codes, it is quite indispensable to acquire a brief idea about the facets of QR codes. In this regard, QR codes are quite cost-effective and any individual can effectively use a QR code for the purpose of addressing any situation. ... It is widely accepted that QR codes are typically adopted and exploited especially with the intention of tracking humans in terms of recognizing different information systems and image-processing (Yeo, Pan, Lee, & Chang, 2012). Specially mentioning, certain decisive facets of QR codes such as massive storage capacity and fast readability can prove to be much advantageous for individuals along with organizations. With regard to analyzing the advantages along with the disadvantages of QR codes, it can be noted that QR codes have replaced the utilization of 2D barcodes that were invented in the early period of 1990s. QR codes were mainly invented and incorporated in the year 1994 which has resulted in lessening the usage of 2D barcodes by a significant level. The major advantages of QR codes include its provided facility to store several sorts of valuable information and reveal precise data. In terms of advantages, it can be stated that unlike other barcodes that require to be read with certain output services such as physical scanners, QR codes can be perceived by a mobile device facilitating the users to perform different functions effortlessly (Furht, 2011). On the other hand, certain disadvantages of QR codes entail limited compatibility, the requirement of greater knowledge about advanced technological advancements, security issue and the existence of several competitors that are performing similar functions. Amongst these mentioned disadvantages, the most crucial concern is the security issue which affects personal safety at large. It can be stated that the use of QR codes will remain much restricted if an individual possesses little amount of knowledge with regard to accessing the indispensable

ART Essay Example | Topics and Well Written Essays - 250 words - 6

ART - Essay Example Two heads of a raven were carved and positioned in a way that they appear to be like a horns or ears. These have the same colors as well that with the black color being dominantly used, giving a perfect match for its function. Brown twisted cords were used for the feathers which complement not only the colors but the mask as a whole. In totality, the artwork gives the picture of birds that could be scary not only in this mask but in reality as well. As the galokwudzuwis is considered a monster by the American Indians, cranes are known to be predators of small animals like rodents. Ravens on the other hand have a similar diet but in addition portray bad luck as they are believed to represent death because of their color. This piece of work attracted me because of the beauty the colors brought to it. However, it could also be pretty scary to be looking at it intently because it brings a chilling effect to the nerves especially as I ponder on what the birds represent. This could well be appreciated in the context of art appreciation but could really be challenging looking at it for a long time. George Walkus is a rare

Observational films - Corporation Documentary Research Paper

Observational films - Corporation Documentary - Research Paper Example Furthermore, in order to assess the personality of the corporation, there is a checklist employed which uses diagnostic criteria and standard tools of psychologists. These standards are applied to ensure that the organizational principles are human. But the organizational principles that are applied are highly self-interested, amoral, deceitful, and they breach the legal and social standards just to get the profits. The organization does not even suffer with guilt. â€Å"The Corporation† starts with a fast juxtaposition of familiar company logos and specific images, which supports the narration. And narration is giving you facts about the content. I realized that after the first couple of sentences my focus was so much on the visuals that the second time I watched it, I noticed I had missed some key information from the narrative. I understand that the filmmakers wanted to have gripping beginning and wanted to hit you with the important, interesting facts however I rather have something (visuals) that would allow me to think about the narration more. Also I would like the narration to be a bit slower. The bad apple metaphor is a good way to begin. It is a good example and preparation of what the documentary will sum up. It’s true that a big portion of the documentary is using archive footage to support the audio. Even though I found the selection of archival footage very specific and extraordinary, sometimes it gets a bit too literal. First time we see a face in the movie, it ends up with a good twist. The man (Ira Jackson) who is looking right at the camera (audience) finishes with a joke. This part gives you a brief break from all the â€Å"serious† stuff and hints out that this â€Å"boring† documentary about corporations will not be as tedious and boring as it seems to be. Besides having the subject looking right at

Coginitive Coaching Assignment Example | Topics and Well Written Essays - 250 words

Coginitive Coaching - Assignment Example g that being honest and having integrity helps others to build trust on an individual, planning becomes key since it enables the coach present the truth, while also focusing on the beliefs about right and wrong that will inform his/her coaching (Dubrin, 2005). Observation is another vital aspect of the cognitive coaching, since it helps the coach to observe and take note of the figure of speech of the individual to be coached, which the coach then applies, to develop and show empathy (Dubrin, 2005). Empathy is an essential aspect of the coaching process that creates understanding between the coach and the individual to be coached, which is made effective when the coach applies the same figures of speech as the coached. Lastly reflection allows the coach to effectively develop superior instructions in teachers, through allowing the coach to focus on the same experiences that they have had in the past, and then use such experiences to build a persuasion strategy that will effectively i nfluence the individuals being coached towards the right direction (Dubrin,

Mango Medley Essay Example | Topics and Well Written Essays - 3000 words - 1

Mango Medley - Essay Example According to Mango Medley’s official website, the business operates between 5:00 P.M. to 12:00A.M weekdays and 12:30 P.M to 12 A.M on weekends. However, it is important to note that the restaurant specializes in Asian cuisine and desserts with much attention in mango delights (Mango Medley). The prices of their dishes vary between $4 and $8 for deserts and $10 to $28 for cuisines. It has been successful in bringing in customers who are keen on their products, and who have less time to socialize during the day but can only find time at late night. Mango Medley has established a standard in the restaurant business in Sun set area owing to the quality of products it serves to its customers through its diverse menu items. The main area of concern of the business is to provide Hong Kong style dessert to local customers living in the surrounding neighborhood especially the young Asian customers, and other customers who may be interested in the cuisines and late night deserts. It purposes to turn the Chinese habitual tradition of gathering around late night to partake their desert into their advantage by opening late into the night. This is not the only target going by the decision to include a diverse menu which takes care of other locals living in the area. Sunset area of San Francisco has a population that has kept on swelling with Asian population more than other races. This explains the reasons why the leadership of the area is being steered by Asians, example being the present mayor. The 2013 estimate report on the census shows that Asians comprises over 33% of the Sun set population translating to over 837,442 people in San Francisco area alone (USCB, 2013,Areavibes & J, 2013). This group’s population is reported to be growing faster relative to other races in the area hence the need to focus on their favorite dish. Other groups are also targeted but not majorly. Chinese especially those coming from Hong Kong, Chengdu or Southern China have a

Annotated bibliography /history of russian mafia

/history of russian mafia - Annotated Bibliography Example The ominous KGB was a "Mafia" in its own right. What developed in the 1990s was not just a culmination of what existed in the Communist Era or the start of Perestroika. These networks started long before. The criminal underworld has been part of Russian life for centuries. The realities of the Russian Mafia differ because they integrate every aspect of Russian society. Whereas other Mafias are different, the Russian Mafia has much more control over society. It is only in studying the history of how the society has developed then how quickly it has changed since 1991, that the true Mafia will be understood. Anderson, Annelise & Edward Lazear ed. The Red Mafia: A Legacy of Communism. "Economic Transition in Eastern Europe and Russia: Realities of Reform". Stanford, California: The Hoover Institution Press, 1995. Web. The mafia has been a necessary link from a communist to a market economy. The following article analyzes its origins as being part of the Soviet system. In the 1970s the use of the term mafia was used to describe the black market and those KGB members who extorted them at the cost of all. Mrs Anderson describes the term mafia in different countries. One element which is universal and first used in the Soviet Union to describe the mafia was "a group that is characterized by profit-oriented criminal activity, that uses violence or the threat of violence, that expends resources to discourage, cooperation of its members with the police and that corrupts legitimate governmental authority". There are 3 conditions that need to be met for the mafia to develop: loss of legitimate power ; a top heavy bureaucratic state; and the potential of illegal markets. These three conditions have been part of the Russian territory for centuries but the articles only concentrates on the Soviet Union . Other comparisons that she makes are left out as they do not meet

Social Biases Essay Example for Free

Social Biases Essay Dr. Deirdre Teaford Abstract People behave differently toward other culture and groups and discriminate in many forms of social bias. These biases can impact harshly an individuals career and social life. Discrimination, prejudice, and stereotypes can influence adversely an individuals quality of life. The concept is more prevalent in society that most people realize. This problem could be unfavorable to group cohesion, cooperation, and the success of society. Humans prefer to go with the flow of a crowd. When an idea is chosen by the masses (an entire nations or a small group), the individualized brain enters a kind of hive mind mentality. This causes social norms and behaviors to propagate among the individuals regardless of the evidence in support. This type of social bias is built with the desire to conform or fit in. Social biases have been a barrier humans have experienced from generation to generation. They take short cuts to make sense of the world. Humans have made rash decisions or discriminatory practices based on gender, race, ethnicity, religious affiliation, political preferences, and socioeconomic tatus. Humans have become fallible and has been subjected to their many flaws by making errors in Judgment, memory, and social attribution. Social psychologists have claimed these biases can be eliminated if the individuals have the motivation and capacity to change their attitude. According to Fiske (2010), Some people think bias is a thing of the past, and others think it is a real and present danger that targets diverse social groups (p. 28). Moreover, there are subtle and obvious misunderstandings among groups of individuals that affects the bias of people in heir lives, but strategies for change are possible (Fiske, 2010). In this analysis, the concept of prejudice, stereotyping, and discrimination will be defined. In the same aspect, the analysis will describe the differences between blatant and subtle bias while identifyi ng some common biases that may affect the lives of individuals and Stereotyping, and Discrimination Gender and ethnic stereotypes are inevitable. In the context of affirmative action, the inevitability has played an important practical implication. One arguments against affirmative action is that employers and educational administrators should be ender-blind and colorblind in their hiring and recruiting process (Stewart, Weeks, Lupfer, 2003). Individuals are often hurt by discriminatory and prejudicial behaviors and attitudes. The current laws cannot halt prejudicial or stereotyping attitudes, but they can address instances of discrimination. Discrimination, stereotyping, and prejudice are somewhat similar, but they are very different. Prejudice The operational definition involves reacting fervently to an individual on the basis of ones feelings about the group (Fiske, 2010). It is a belief that formulated without considering the facts. It is also an unwarranted or negative attitude toward a person based on his or her association of a social group. Stereotyping The operational definition entails an individuals cognitive associations and expectations about a group. These expectations will encompass the beliefs about the characteristics of a group (Fiske, 2010). Moreover, it is an indiscriminate belief about a class of people or particular group. Advantage: It allows the individual to respond hastily to certain situations because he or she may had a related experience. Disadvantage: It will make us ignore the differences between people. Discrimination The operational definition involves acting on the basis of ones prejudices and stereotypes, rebuffing equality of treatment that individuals wish to have (Fiske, 2010). Moreover, it is the negative behavior, or actions toward a group of people or individual on the basis of social/race/gender class. In this context, discrimination can be either blatant or subtle. Subtle and Blatant Bias In the last two decades, there is no doubt that women have made strides in the fight for equality. Many can recognize that women have overcome the many prejudices against their participation in the workforce (Earnshaw, 1993). In our society, blatant bias is being replaced by subtle bias to decrease the broad- mindedness for obviously biased behavior. Subtle bias is also acknowledged as modern prejudice. This does not mean that women do not get discriminated at work even though they have achieved equality of opportunity (Earnshaw, 1993). The first generation bias was more hostile towards women who needed to be in home with the children. On this second generation bias, for example, women may get more narrative praise than the male co-workers but low rating point related to Job performance (Earnshaw, 1993). Subtle Bias This particular modern bias is indirect and is manifested by withholding respect and sympathy. It is ambiguous and sometimes involves positive and hostile feelings that can cause extreme responses (Fiske, 2010). Blatant Bias This old-fashioned bias ensues as a result of threats to the struggle for positive group identity. They include segregation, physical attack, extermination, avoidance, opinion clearly in regard to a particular individual or group. Impact of Social Bias The lives of individuals can be influenced by social biases. Negative outcomes like neglect, hostile environment, or avoidance may be created by discrimination. When a biased individual interacts with an outgroup members, the expressed behavior of the individual will solicit negative and ill attitudes. Prejudice will influence the individuals lives with instances of ageism, sexism, and racism that will affect their career and social life. According to Vaish, Grossman, and Woodward (2008), When adults display a negative bias across an array of psychological situations, they will use the negative information instead of the positive one (p. 383). Moreover, the negativity bias may serves as an evolutionary adaptive purpose of helping individuals afely explore and examine the environment to avoid harmful situations (Vaish et. al. , 2008). Two Strategies to Overcome Social Biases There are several strategies to minimize social biases, such as affirmative action, and equal opportunity laws. The majority of these strategies involve constant intergroup contact. The key term for a biased individual is change. Old habits die hard but and individual can break those habits. According to Fiske (2010), Intergroup contact and mutual differentiation are two possible strategies to minimize the bias. Intergroup Contact These are interactions between members of different social groups. During the contact, there is equal status in the groups, there are common goals, and there is no competition but cooperation. They are not easy to meet, but they make complete sense (Fiske, 2010). Mutual Differentiation In this context, mutual differentiation is important for two reasons: (1) People retain awareness of individuals social identity in the contact situation, and (2) Individuals seem typical in the sense that they represent their own groups (Fiske, 2010). In Conclusion The motivation of change is the key to steer away from social biases. The bias will be the individuals preference toward a peculiar way of viewing or thinking omething. This behavior will be influenced by a certain prejudice.

How Monetary Policy Can Influence Stock Market

How Monetary Policy Can Influence Stock Market Rakesh Kumar Nair Table of Contents (Jump to) 1.0 Introduction Understanding Monetary Policy and Stock Market. 1.1 Monetary Policy. 1.2 Stock Markets. 1.3 Objectives and Methodology. 2.0 Literature Review. 3.0 Financial Markets Explained. 3.1 Need for Government Regulations 3.1.1 Regulations in the UK. 3.1.2 Monetary Policy and Regulations in the US. 4.0 Analysis of Interest Rates, Inflation and Stock Market. 4.1 Post – 1995 Trends in Inflation, Interest Rates and Stock Market. 4.1.1 Correlation between Inflation Rates and Interest Rates. 4.1.2. Influence of Inflation Rates and Interest Rates on FTSE 100 Index. 5.0 Conclusion. References. Tables Table One: Chapter 4, Chart I and II, FTSE Stock Index 1995/2005, and Bank of England Interest Rates. Table Two: Chapter 4, Chart III and IV, Comparison UK Interest Rates, Inflation Rate, and FTSE Stock Index (percentage change). Financial markets are an essential component of an economy. With the virtual disappearance of borders preventing free flow of capital across nations, its implications not only affect a country’s economic growth but also the country’s ability to raise capital to meet its investment requirements. Financial markets, in this respects, covers the whole range of financial assets, companies and their products. The market participants involved may include those dealing in the derivatives markets, venture capitalists, foreign exchange dealers, hedge funds, investment banks, stock brokers, and financial credit agencies. Considering this diversified interest groups, it is essential that we have certain control regime to regulate this complex markets. Unlike other sectors such as Service and Manufacturing, the financial markets are essentially more sensitive to market behaviour and trends. Note that this does not in any sense mean that service or manufacturing sector is any less influential than the financial sector on economic growth. In recent times, we have observed that trends in financial markets in one country can influence the behaviour of these markets elsewhere. This integration and interdependence of the world financial market has brought about increased necessity for interest rate parity to prevent capital from moving frantically from one economy or sector to another. Federal banks in conjunction with their respective governments introduce reforms and regulations to control capital movements in and out of the country. These reforms and regulations are introduced by the federal bank through its monetary policy. Monetary policy can be defined as an â€Å"Instruments of Control† that a federal bank, in agreement with its respective government policy, use to control (i) price stability, (ii) inflation, (iii) money supply, (iv) exchange rates, (v) unemployment and (vi) Sustainable output. Each of these components highlighted have drastic implications for the short term and long term economic growth rates. Taking into consideration the main area of this study, we aim to understand how monetary policy can influences stock markets. To do this, we first need to know why capital moves from one sector/economy to another. How does current short term and long term interest rates influence the demand for money? Interest rates are used to control inflationary pressure and to control flow of money into the economy. Excess demand and supply for money in the economy can create inflationary pressures. These inflationary pressures and demand and supply of money are controlled through monetary policy. 1.1 Monetary Policy. By applying macroeconomic principles we know that movement of capital takes place to profit from sudden and unexpected changes in market sentiments. Consider a situation wherein there has been a sudden drop in interest rates by the federal bank. A drop in interest rates has positive implications in the sense that borrowers would find it cheaper to raise capital from the market. But why would a private lender lend his capital in an economy when he can profit by lending his capital for higher returns in some other economy ? This may force the lender to take his capital out of the economy to some other profitable destination. Such movement of capital – in and out of the economy will put pressure on the exchange rate to change. By how much does this movement will affect the exchange rate would depend by how much the federal banks lending rates can offset the negative implications of capital transfer by the capital lender. Whether positive or negative, the federal bank would have to devise a strategy to meet the demand for money not only by domestic borrowers and lenders but also by foreign borrowers and lenders. Expansionary and restrictive monetary policy can both have inflationary pressures. Curbing money supply with higher interest rates would lead many borrowers of capital to transfer these additional costs on to their customers. On the other hand, expansionary monetary policy with lower interest rates would lead to excess spending as disposable income increases. This would cause the prices to increase beyond the sustainable level. In this case, the primary objective of monetary policy is to maintain prices at a sustainable level. Such economic trends would warrant a monetary policy that can pump and pull money out of circulation, keep the real interest rates level at an optimum level and ensure that the domestic currency’s external value is determined by the market forces of demand and supply.. 1.2 Stock Markets. Business establishment look at various sources to raise capital to meet its expenditure requirements. They do so by raising capital from the market by selling equity to shareholders. Shareholders invest in anticipation of higher dividends. Firms need to raise capital from the market to meet its short and long term obligations. Suppose that a firm is not able to raise capital at an affordable rate, it would be forced to transfer the additional costs of borrowing on to its customers. Such an action would make its output more expensive in the market and it can have consequences for its profits generation and dividend policies. Less profits and lower dividends can hamper shareholder interests and its equity prices may take a drop. How does monetary policy work towards bringing stability in the stock market prices ? Stock prices are among the most closely watched asset prices in the economy and are viewed as being highly sensitive to economic conditions. Stock prices have also been known to swing rather widely, leading to concerns about possible bubbles or other deviations of stock prices from fundamental values that may have adverse implications for the economy. Taking into considering what stated above, we shall therefore look at the ways monetary policy, given its first objective of maintaining price stability in the economy, influence stock prices. The next chapter looks at some existing literature review on this topic. 1.3 Objectives and Methodology. The objective of this study is to first looks at the basics of monetary policy as a macroeconomic stability instrument. There has been considerable debate over the implications of monetary policy over the stock markets. This has largely been due to the uncertainty associated with the stocks and its prices. These uncertainties seem to affect risk premiums added to stock prices more than stock market index and the stock dividends. Chapter 2 looks at the literature review of existing articles and discussions on the importance of monetary policy for regulating stock markets. These chapter analyses the argument that monetary policies do not necessary have large scale implications for the stock markets. In chapter 3, I look at the need for regulation in the stock market and the factors that contribute in the making of the monetary policy. I have reproduced a chart representation of the US Federal Reserve and the factors that contribute in its monetary policy. We shall also be looking at the trend pattern in the FTSE 100 stocks with the Bank of England interest rates since 1995/96. In the graphical representation to follow in the chapter 4, I have taken into consideration the statistical historical data pertaining to FTSE 100 stocks, inflation rate and the Bank of England interest rates. I shall also be looking at the correlation that may exist between the interest rates and inflation rates in the UK. In order to have a better understanding of the relationship I have taken into consideration a 10 year period split into two parts – 1996/00 and Jan 04/Oct 05. I have also produced one multiple variable regression model to look for variance in the percentage change in the FTSE 100 index due to the variance in the inflation rate and interest rates. While assessing any topic pertaining to financial markets, it is essential that we give due consideration to the uncertainty that governs this sector of the economy. As we have seen in the previous chapter, financial products, its demand and the variance in their values are highly sensitive to market sentiments. Some experts suggest that monetary policy have comparatively less impact on the stock markets index while some suggests it affects the risk premium associated with shares. There are no pure economic explanation that explains whether or not monetary policy have any clear cut explanation for the changes in the stock markets and vice versa. But we do know that investors do look at government policies to formulate their strategies towards investments and monetary policy is one of the many such influencing factors. Whatever the case, we know that government policies are essential for the smooth functioning of the market. Reilly et al (2003) states that â€Å"monetary and fiscal policy measures enacted by national governments, as well as changes in demographic, politics, and technology influence aggregate economies. The resulting economic conditions influence all industries and companies within the economies†.[1] Eichengreen and Tong (2003) argue that â€Å"having volatilities in the financial markets are not a bad thing in and of themselves.†[2] Unexpected changes in the prices of assets acts as a signal to investors about the changes in future outcomes and their implications for the resource allocation. The extent to which the volatility of asset prices varies reflects the volatility in the policy and higher volatility may be an indication of a deteriorating policy environment. There appears to be a two way interaction between the market forces influencing the movement in the stock markets and the policy formation by the central banks. An unanticipated change in monetary policy is likely to have implications for the stock markets because an anticipated change would logically be discounted by stock market investors and they are unlikely to affect equity prices at the time they are announced. Governor Ben Bernanke (2003) states that â€Å"unanticipated changes in monetary policy affect stock prices not so much by influencing expected dividends or the risk-free real interest rate, but rather by affecting the perceived risk associated with stocks†.[3] We can understand from this statement that any unanticipated change in monetary policy is likely to increase the risk premium associated with the stock more than the expected dividends. Higher risks always come with higher premiums to compensate for bearing the uncertainty over the expected returns. For example, a restrictive monetary policy will lead investors to view stocks as riskier investments and thus may demand higher returns to hold stock. In simple words, a restrictive money supply policy through higher interest rates would make stocks to be more risk borne for a given path of expected dividends as higher expected return can be achieved only by a fall in the current stock price. More so, tightening of monetary policy has a particularly strong impact on firms that are highly bank-dependent borrowers as banks reduce their overall supply of credit. Government policies play an essential role in terms of investor confidence. Consider a situation wherein the government on recommendation by the federal or central banks decides to raise the investment FDI cap for foreign investors by certain margin. Investing firm will look at domestic markets for funding besides their own capital sources to invest. This investor confidence building measures are likely to attract investor to invest their capital by buying shares. But the extent to which such reforms are likely to succeed would depend on the rate at which such capital are available, policies towards repatriation of profits, exchange rate policies, reforms and regulations that allow firms to raise capital from the market. If the investor expects the likely returns from stocks to be less, it would make more sense for him to look at other financial derivatives and products such as Bonds for investment. Unlike Shares, Bonds are far less risk prone as the returns and period of investment is well established. Bonds come with specific-guaranteed returns and the investment period is decided upon at the time of issuance and purchase. Risks may come in the form of interest rates charged on raising necessary capital from the market. Talking of risks, if the investor is risk averse, there are possibly only two things that can deter stock markets from operating under market conditions. Firstly, the news that affects investors forecasts of current or future tax-deducted dividends and secondly, the forecasts on the current and future short term interest rates. From the company accounting point of view, what most investors are concerned about is the company’s ability to pay back short term credit loans and the interest rates charged over it. So if the federal banks raise short term interest rates, it might deter companies from meeting its short term obligations to the markets and investors from investing because current higher interest rates would make future dividends to be less valuable. Similarly, if the short term interest rates for lending are higher than the tax-deducted dividends receivable from stocks, Investors would find it more reasonable to lend their capital elsewhere at a rate that at least equals the bank’s short term interest rates which is higher than the receivable dividends from the stocks. In support of my argument, I shall highlight a particular remark made by Governor Ben Bernanke, US Federal Reserve (2003), â€Å"to value future dividends, an investor must discount them back to the present; as higher interest rates make a given future dividend less valuable in today’s dollars. Higher interest rates reduce the value of a share of stock†. Given these circumstances and as stated earlier, an investor would find other financial products such as Bonds more profitable to invest. Another important aspect of monetary policy influence over stock markets is its ability to manage â€Å"Bubbles† or â€Å"Boom† in the index. According to Bernanke, it is often difficult to identify in advance the factors that cause these bubbles. It is also pointed that the difficulty in pointing out comes from the fact that some bubbles may be of certain asset class which may, at times, influences the bubbles in other asset classes. Therefore any attempt to bring down stock prices by a significant amount using monetary policy is likely to have highly deleterious and unwanted side effects on the broader economy. Moving on to risk in this sector, we know from our understanding of the financial markets that not all investors are risk averse. Some tend to profit by speculating market behaviour and trends forecast for the future. Sloman (1995) states that if the prices are currently rising, then people may speculate whether or not the prices will go up or down. Such speculations add to the risk factor which makes any financial securities expensive. Speculations tend to be self-fulfilling in the sense that every actions of those who speculate in the markets tend to come from sheer anticipation about market behaviour and the actions of those who influence such market behaviour. Stocks, when compared to other financial assets, are considered to be more risk prone and therefore command higher than average returns. In the US, a diversified portfolio of stocks has paid 5 to 6 percent points more per year on an average than other portfolio comprising government bonds.[4] Such speculations only add to the risk premiums on stocks which explain the extra compensation that investors demand to be willing to hold relatively more risky stocks. One study conducted by Roberto Rigobon and Brian Sack shows that it is difficult to estimate the policy reaction because of the simultaneous response of equity prices to interest rate changes. The results obtained in their study shows that â€Å"monetary policy reacts variedly to stock market movements, with a 5 percent rise (fall) in the SP 500 index increasing the likelihood of a 25 basis point tightening (easing) by about a half. This reaction is roughly of the magnitude that would be expected from estimates of the impact of stock market movements on aggregate demand. Thus, it appears that the Federal Reserve systematically responds to stock price movements only to the extent warranted by their impact on the macroeconomy†. They simplify the concept by showing that if the probability of a monetary easing were 30 percent under existing economic conditions, an unexpected 5 percent decline in stock prices would increase the probability of a cut in the Feds benchmark short-term interest rate to 80 percent. [5] To support this argument put forward by Rigobon and Sack, I shall highlight the point put forward by Bernanke who points out that â€Å"an unexpected change in the federal funds rate of 25 basis points leads, on average, to a movement of stock prices in the opposite direction of between quarter percentage point and one / one-half percentage points†. Participants in the stock markets monitor economic indicators such as employment, GDP, retail sales and personal income because these indicators may signal information about economic growth and therefore affect cash flows. In general unexpected favourable information about the economy tends to cause a favourable revision of a firms expected cash flows and therefore place upward pressure on the firm’s value. Therefore, an easing of monetary policy would provide for an increase in wealth as stock prices increase which would prompt higher consumer spending. From a corporate point of view, higher stock prices would effectively reduce the cost of capital for firms stimulating increased capital investment. On the other hand, an unanticipated monetary policy would lower stock prices but increase risk premium. Easing monetary policy would provide for increased savings largely due to the decrease in risk associated with stocks. Results for Bernanke’s study suggest that â€Å"easier monetary policies not only allow consumers to enjoy a capital gain in their stock portfolios today, but it also reduces the effective amount of economic and financial risk they must face†. Thus, a reduction in risk associated with an easing of monetary policy and the resulting reduction in savings for precautionary purposes may amplify the short-run impact of policy on the asset value [6] Issues such as Inflation act as an indicator for economic growth. Rising inflation in most cases are dealt by accommodating interest rates to control the flow of money. For instance, often inflation is caused by the presence of excess money in the economy. The government might decide that the best way to tackle this problem is by increasing the interest rates. Raising interest rates would cut excess expenditure, reduce excess consumer demand thereby bring an equilibrium between aggregate demand and supply. Raising prices can also be tackled by raising interest rate by curbing unwanted expenditure. Bernanke and Gertler (1999) argue that monetary policy that aims at flexible inflation must pay little attention to asset inflation because a proper setting of interest rates should be able to achieve a sustainable inflation rate.[7]Analysing this argument, and looking at the evidence put forward by Bernanke (2003), changes in the monetary policy do not bring about immediate changes in the stock markets behaviour but maintains inflation rate at sustainable level. In this section, we looked at arguments put forward by Bernanke (2003), Reilly et al, Bernanke and Gertler (1999) to understand the existing study on the likely impact of monetary policy on stock markets. Despite all these suggestions, there appears to be little agreement over the exact and precise impact of monetary policy in the stock market. In the next chapter I shall look at the basics of financial markets and look at the regulation policies followed by the US Federal Reserve. I have also reproduced a chart representation of factors that influence the US stock prices. Financial Markets play a prominent role in today’s economy. Though in the past during industrial-manufacturing era of the 1800s/1900s, it can be argued that role of finance was narrowed down to basic accounting purposes such as the cost of production. Today, with the advent of various financial products and the integration of world economy financial sector it requires constant regulatory procedures for its smooth functioning. The financial crisis witnessed in East Asian economies, Mexico, and Argentina has made financial regulation and reforms an essential component of any government’s economic policy. In their regulatory capacities, governments have greatly influenced the development and evolution of financial markets and institutions. Fabozzi et al (2002) points out that â€Å"it is not surprising to find that a market’s reaction to regulations often prompt a new response by the government, which can cause the institutions participating in a market to change their behaviour further and so on†.[8] It can be understood by this argument that at all times governments, markets, and institutions tend to behave interactively and to affect one another’s action in certain ways 3.1 Need for Government Regulations One very good and justifiable explanation for the need for regulation in any markets, not just in financial markets, is that when markets are left to it self, it tends to deviate from its basic objective of market efficiency. A short hand expression for this deviation from market efficiency is described in economic terminology as â€Å"market failure†. Some basic regulations followed by many governments can be categorized into 4 basic categories To prevent issuers of securities such as stocks, bonds, from concealing relevant information. To promote competition and fairness in the trading of financial securities. To promote the stability of financial institutions. To control and restrict activities of foreign institutions and concerns in domestic markets. 3.1.1 Regulations in the UK. One of the major regulatory procedures ever adopted by the British government was during the mid-1980s when it introduced the â€Å"Big Bang† disclosure of information by the securities markets. An Important part of that restructuring was the Financial Services Act of 1986. This law imposes a â€Å"general duty of disclosure† and applies to any foreign or domestic firm that issues debt or equity securities, whether or not the securities are to be listed on the London Stock Exchange. The Financial Services Act assigns responsibility for regulating financial activity to the Department of Trade and Industry (DTI). The DTI delegates much of the task to the Securities and Investment Board (SIB). The SIB is the primary agency that authorizes institutions to conduct investment business and monitors their dealings with the public and the adequacy of their funding.[9] The Bank of England now regulates most banking institutions in much the same way as the US Federal Reserve. Until the Big Bang of 1986, banks were not permitted to engage in many activities involving the sale of securities. Since then banks are not allowed to own subsidiaries that are members of the stock exchange, which offers investors many financial services linked to investing. Non-British firms are now allowed to be part of and even lead the groups of underwriting firms that sell to the public new issues of debt and equity denominated in pound sterling. 3.1.2 Monetary Policy and Regulations in the US. One of the major duties of US Federal Reserve is serving on the Federal Open Market Committee, the body that makes US Monetary Policy.[10] As we have seen earlier in the first chapter, the primary objective of monetary policy is to maintain the macroeconomic stability in terms of price levels, unemployment, exchange rates, and interest rates. Federal Banks, often, use interest rates as a means to control inflation. To what extent can the bank control interest rates is a matter of debate especially since most economies work on market economy principles. United States have brought extensive reviews and changes to its policies regarding domestic and foreign firm’s participation in the financial markets. In 1984, the federal government abolished the withholding tax on interest payments to non-resident holders of bonds issues by US firms. In 1987, US markets obtained permission to trade futures based on foreign government bonds This illustration shows the reasons and factors that influence the stock prices to change in the US.[11] According to Governor Bernanke the US Federal Reserve have little or no direct control or influence over the interest rates that matter most for the economy, such as mortgage rates, corporate bond rates or the rates on Treasury securities. In support of his argument, I shall point out similar policy constraints faced by the German government since joining the EMU. Fabozzi et al (2002) points out that â€Å"the European Central Bank replaced the central bank of 11 participating countries of the European Economic and Monetary Union (EMU). ECB, since then, controls the money supply, availability of credit and short term interest rates for the EMU members and has also influenced the uniform currency of the EMU†. Given these regulatory frameworks how far are the bank’s monetary policies a determining factor in the stock exchange. The idea of this chapter was not to explain each and every regulatory technique the banks use but to have slim-shot view of the factors that influence bank’s monetary policy. The chart representation quite clearly shows the factors that contribute in the US Federal Reserve monetary policy. In the next chapter we shall look at some historical trends and then use those trends to arrive at some econometric models. Considering the fact that central banks are increasing looking at market forces to control interest rates, the role of financial regulatory bodies becomes complex. Broadly speaking, to have efficiency in the financial markets, it is essential that the bank is able to determine the degree of financial stimulus needed to push the economy to its optimal level. Monetary policy, in this situation, should strive to provide this stimulus. For example, lower mortgage rates promote increased spending on new homes and lower corporate bond yields and high stock prices generally induce firms to invest in new capital goods. Similar to these rates stated now, lower interest rates should act as an incentive for firms to borrow and invest in lucrative products. From the long term perspective, obtaining credits are comparatively less complicated. Short term credits are more essential as firms often have to meet its short obligations by borrowing. Firm’s ability to meet its short and long term obligations act as an indicator for shareholder to assess whether are not they should invest their capital. These short and long term obligations are determined by the interest rates. Failure of the markets to provide funds at affordable rates has consequences for economic growth. A r

Environmental Management Case Study of AkzoNobel

Environmental Management Case Study of AkzoNobel Abstract In modern business, sustainability has become of great importance when determining a companys strategy.   AkzoNobel, a company that produces chemicals, paint, paper and pulp, is well aware of this evolution and has built its business model around it. This case study aimed to analyze and review AkzoNobels environmental- and sustainability performance by exploring the companys webpage as well as other critical resources. The management of the company was analyzed, along with the tools, methods and metrics that are used to reach set objectives. Furthermore, the environmental- and sustainability policy was related to the ISO14001 requirements. It was determined that, although AkzoNobel puts in significant effort to include environmental aspects in its long term goals, it is clear that their sustainability agenda is a tool for boosting their reputation to outcompete their competitors. Table of Content Abstract 2 Table of Content 3 Introduction 4 Environmental Management 4 Executive body 5 Driving forces 5 Objectives/Comparison with Sweden 5 Environmental Policy 7 Sustainable systems 7 Tools, methods metrics 8 Eco-premium products 8 Environmental Assessment Tools 9 Safety 9 Product stewardship 9 Managing scarce resources 9 ISO14001 and AkzoNobel 9 Suppliers sustainability 11 Supplier visit 11 Vendor compliance letter 12 Key supplier management program 12 Sustainability focus areas 12 Climate change AKZO Nobel 12 Position 12 Achievements 13 The Future 13 Discussion 14 Conclusion 15 References 16 Introduction AkzoNobel is the largest global paint and coating manufacturer in the world and a leading producer of specialty chemicals, pulp and paper. It is a company of about 57,000 employees that are situated in more than 80 countries. The companys slogan is Tomorrows answer today. In other words, their strategy is to produce products that are far more advanced compared to their competition. With todays concern about environmental issues, this competitive edge comes with producing products that are deemed sustainable. Therefore, the forefront of AkzoNobels agenda, it can be said that sustainability is the key word in AkzoNobels business. The aim of this report is to review the environmental and sustainability management performance of AkzoNobel. The objectives of this report are to: Give a short description of AkzoNobels activities and to investigate their executive body; Analyze the driving forces behind the environmental management performance of the company; Define the most significant environmental aspects of AkzoNobel and relate them to Swedens Environmental Objectives; Critically analyze the environmental/sustainability policy; Identify and analyze the different environmental and sustainability management tools, methods and metrics; Provide AkzoNobels position on global warming; Describe AkzoNobels supplier and vendor policy; Examine their business strategy in relation to business opportunity; Judge their actual sustainability performance; and Comment on outside criticism of the company. Environmental Management When a company sets its goals towards sustainability, it is often necessary to completely rework the way in which the company is managed. In order to successfully improve negative social and environmental impacts, it is essential for the company to integrate these factors into every day decision making (Epstein, 2008). AkzoNobels management team has claimed to have done this by the appointing a management team that has sustainability at its utmost priority. Executive body AkzoNobel has established an executive committee (ExCo) which is composed of five members of the board of management and four leaders with functional expertise. This arrangement allows business and function to be taken equally into account while managing the company. The functions that are now representing the ExCo are: HR Organizational Development, Research, Development Innovation, Legal  and Supply Chain/Sourcing. The ExCO shares powers and responsibility for managing the company under the chairmanship of the CEO, Hans Wijer. (AkzoNobel, 2011c) AkzoNobel also has a special Sustainable Development Group. This team is composed of 13 individuals with background studies ranging from chemistry to economics and from environmental sciences to policy and management. (AkzoNobel, 2011g) Driving forces In 2008, AkzoNobel put in place a strategy with a sustainable agenda. Their specific sustainability objectives were to: Remain in the top three in the Dow Jones Sustainability Indexes; Reduce the total reportable rate of injuries to 2.0 per million working hours by 2015; and Deliver a step change in people development, in part through substantially improving the diversity in the company. (AkzoNobel, 2011e) The first point connects the companys business side and its environmental objectives together. Investors are increasingly focusing on investing in companies that set industry-wide best practices with regard to sustainability. Sustainability has become attractive to investors because it aims to increase long-term shareholder value. Sustainability leaders are increasingly expected to show superior performance and favorable risk/return profile (Dow Jones Sustainability Indexes, 2011). Consequently, a company with a sustainable agenda is considered a good investment. AkzoNobel is well aware of this as can be seen in their business principles when they state: We need to make sustainable profits if our business is to thrive (AkzoNobel, Business Principles, 2011a). The companys sustainable agenda also mentioned that they aim to reduce the reportable rate of injuries. AkzoNobel is a company that works with substances and chemicals that have high environmental and health risks. Companies fear having a reputation for a high number of injured employees or for causing environmental damage. Because AkzoNobel handles these types of substances it is consequently under the microscope. In order to avoid pressure from environmental advocacy groups such as Greenpeace or to avoid bad media, it is of strong interest to account for environmental aspects as well as the safety and health of its employees. Objectives/Comparison with Sweden According to the companys website, AkzoNobel set its targets on the following objectives towards sustainability: Improving safety performance; Increasing turnover from eco-premium products  which are both eco-efficient and attract a premium; Developing sustainable water management   at all sites; Reducing carbon emissions from cradle to gate; Adherence to and training in the companies Code of Conduct ; Strengthening the diversity of the companys workforce; and Implementing leading people development programs (AkzoNobel, 2011b). From these targets it is clear that AkzoNobel considers a well trained and ambitious workforce an important step towards sustainability. It can also be seen that there is an emphasis on the responsibility of the workforce. It is important for the company that its personnel are aware of the sustainable targets and that the employees take part in reaching them. In comparison, Swedens Environmental Objectives are the following: Reduced Climate Impact Clean Air Natural Acidification Only A Non-Toxic Environment A Protective Ozone Layer A Safe Radiation Environment Zero Eutrophication Flourishing Lakes and Streams Good-Quality Groundwater A Balanced Marine Environment, Flourishing Coastal Areas and Archipelagos Thriving Wetlands Sustainable Forests A Varied Agricultural Landscape A Magnificent Mountain Landscape A Good Built Environment A Rich Diversity of Plant and Animal Life (Government offices of Sweden, 2011) The management of AkzoNobel is in line with most of Swedens environmental objectives. They are aware of the need to reduce carbon emissions and employ sustainable water management. Furthermore, the production of eco-efficient products is a step towards a non-toxic environment. Eka Chemical is AkzoNobels daughter company that specializes in specialty chemicals, pulp and paper. Their goal is to have pulp and paper products that are made from sustainably sourced fibers (i.e. sustainable forestry), while using energy from renewable sources and discharge only of water that is cleaned after production (AkzoNobel, 2011d). Taking into concern its environmental aspects, AkzoNobel has a clear aim towards one of Swedens Environmental Objectives, which is A Good Built Environment. Environmental Policy Within a company, the principles of environmental policy are the foundation for implementing a sustainable system. Usually full support at the top management level is needed to make such a system work and to gain the attention of all employees inside the organization (ISO 14001,2010). The term Environmental Policy can be defined as: any [à ¢Ã¢â€š ¬Ã‚ ¦] action deliberately taken [à ¢Ã¢â€š ¬Ã‚ ¦] to manage human activities with a view to prevent, reduce, or mitigate harmful effects on nature and natural resources, and ensuring that man-made changes to the environment do not have harmful effects on humans. (Fairbridge Technologies, 2009). As mentioned previously, AkzoNobel really takes care of its reputation for being a sustainable company. This, again, is mentioned in their Vendor Policy. The slogan Tomorrows Answer today shows that this topic is omnipresent and AkzoNobel not only explains that à ¢Ã¢â€š ¬Ã‚ ¦sustainability is at the heart of everything we do but also that they have integrated sustainability into every area of their business. (AkzoNobel, 2011a) Sustainable systems Sustainable systems are considered ones that take into account not only environmental aspects but also social and economic ones. The main goal of an Environmental Management System is to improve all three aspects simultaneously without losing performance in one. AkzoNobel uses a sustainability framework which is part of the managing our values ideal. Former key points such as integrity, governance and compliance are now being replaced with new topics such as value creation through process excellence, innovation and talent development. More specifically, AkzoNobels sustainability framework focuses on three concepts: Improve: continue to comply with environmental and social regulations to ensure a license to operate. This point is considered to be the core element of how AkzoNobel, as a company, operates. Manage: include sustainability in all aspects of the value chain. Invent: integrate sustainable value propositions to develop a long-term strategic value. (AkzoNobel, 2009) Tools, methods metrics The global strategy of AkzoNobel is to integrate sustainability in all aspects of the value chain, to decrease their carbon footprint and to make profits from these standardized systems. It starts in the early stage of market research across sales and ends in cooperation with stakeholders. Furthermore, AkzoNobel highlights the essential aspect of long-term opportunities for their business which should be reached by these tools, methods and metrics. In the following theres a detailed list of the sustainability actions in the company. Eco-premium products AkzoNobel analyzes all of their products by quantitative or qualitative measurements every time they bring a new product on the market. In order to be deemed an eco-premium product, the product must score significantly better than a currently available product in at least one of the following categories: Toxicity Energy Efficiency Use of Natural Resources and Raw Materials Emissions Waste Land use and risk (AkzoNobel, 2009) Environmental Assessment Tools As mentioned previously, AkzoNobel quantitatively and qualitatively measures the sustainability of all products before they are considered suitable for sales. In order to conduct these assessments, the company implements the use environmental assessment tools such as life cycle analysis, environmental impacts analysis, carbon footprint analysis, eco footprint analysis and eco efficiency assessment. Environmental tools, such as the ones mentioned, are essential for turning data into environmental business strategies. Data for each of the tools is gathered from in house personnel, measurements, authorities, etc. and the conclusions from each report are used for negotiations, reducing costs, meeting permit requirements, improving efficiency, meeting customer demand and setting sustainability targets. (AkzoNobel, 2010b) Safety The establishment of a behavior-based safety program and a new Safety Leadership Program for head management is an efficient method of improving the injury rate for employees and contractors. This figure is also influenced by the integration of standards for process safety and occupational health and the, so called, Health, Safety, Environment and Security (HSES) audit process. The aim is to share good practice all over the company with corporate HSES audits to analyze progress. (AkzoNobel, 2009) Product stewardship To guarantee that AkzoNobel fulfills all legal and ethical requirements for their products (according to REACH, GHS etc.), a Global Product Stewardship and Regulatory Affairs Council has been established. Their tasks are to integrate good practice from the company into a product stewardship framework and to ensure that supplies, training and audits are optimized step by step. (AkzoNobel, 2009) Managing scarce resources AkzoNobel puts in a significant amount of effort in reducing the carbon footprint of their products and creating more value for the customer at the same time. Sourcing managers have been installed to identify focus areas for improvement and develop a carbon management plan in a dialogue with suppliers. In the future, AkzoNobel wants to learn more about customer applications to become more efficient in their environmental management. (AkzoNobel, 2009) ISO14001 and AkzoNobel The ISO 14000 family of environmental management standards can be used to implement a successful environmental management system. Specifically, ISO 14001 can be considered the most important framework for organizations around the world to reach their environmental goals and keep an effective environmental system running. The cyclical process of plan, do, act and check are similar to the ISO 9000 family (Quality Management) but focused on environmental issues. Nevertheless, it is possible to combine the two because it is voluntary for companies to implement these systems. Therefore, every organization regardless of size or sector has the ability to implement ISO 14001. Two different companies can run two completely different environmental management systems but both according to the framework in ISO 14001. The basic principle which distinguishes ISO 14001 from all other strategies is the Concept of Continual Improvement Process (CIP). This concept ensures that products are continually being monitored and improved to adhere to environmental and safety regulations. (Envirocip, 2011; Environmental Management System, 2011; ISO, 2009) ISO 14001 consists of four basic points (figure 1). They are similar to traditional generalized strategic planning and are following: Plan Do Check Act (ISO, 2009) Figure 1: ISO 14001(Jonsson, L. 2011) An explanation of each step and its connection with AkzoNobels business policy is as follows. Plan: Environmental management system implementation In the first step of the PDCA-cycle, environmental goals are defined and strategic processes are created to reach them. Ideally those targets are measurable so it also gives a framework for a control system. AkzoNobel installed sourcing managers to take care of their carbon management plan and to find new focus areas for improvement and development together with suppliers. (AkzoNobel 2009; ISO, 2009; U.S. Environmental Protection Agency, 2008) Do: Conduct life cycle assessment and manage environmental aspects During this step, the company begins the life cycle assessment process and determines how to manage environmental aspects. This step requires that documentation be taken throughout the entire assessment, control systems are run, employees are educated and emergency plans are established. One example of how AkzoNobel deals with this step in the ISO 14001 process is the implementation of the EUs REACH-Project in 2007. This program involved changing the requirements and rules for suppliers which how AkzoNobel educated their contractors to manage environmental aspects differently. (AkzoNobel ,2007a) Check: Conduct audits and evaluate environmental performance The check step in the ISO 14001 involves screening, measuring and controlling all processes and products controlled by internal audits etc. AkzoNobel is very proud of its Eco-Premium Products. They give this label to new products after positive analyses of their carbon footprint. (AkzoNobel 2009; ISO, 2009; U.S. Environmental Protection Agency, 2008). Act: Communicate and use environmental declarations and claims During this stage, companies determine whether their goals and targets within their Environmental Management System were fulfilled. In AkzoNobel, a Product Stewardship System controls and improves all activities from cradle until gate. An effective way to follow this step of the ISO-framework is to check the current situation, and go back and find a better solution in a continuous process. (AkzoNobel 2009; ISO, 2009; U.S. Environmental Protection Agency, 2008) Suppliers sustainability As mentioned previously, AkzoNobel claims to have implemented sustainability into every area of their business. As per this initiative, part of their long-term strategic goal is to build relationships and work with partners that help the company increase its sustainability. Currently, AkzoNobel requires suppliers of raw materials to adhere to certain restrictions with regards to social and environmental standards. This is laid out by the AkzoNobel Vendor Policy- a document that formulates the conditions that suppliers are legally bound to. The conditions that vendors must comply to have been broken down into four categories: supplier visits, vendor compliance letter, key management program, and sustainability focus areas. (AkzoNobel, 2011h) Supplier visit AkzoNobel regularly conducts support visits with their vendors. The purposes of these visits are to not only ensure that AkzoNobels restrictions are being met but also to provide sustainability counseling. AkzoNobels personnel give suggestions and act as environmental consultants to their suppliers. Continual regular visits ensure that the suppliers have implemented the sustainability measures and have maintained their new strategies. This process is laid out in the Vendor Relationship Management Framework. (AkzoNobel, 2011h; AkzoNobel, 2011j) Vendor compliance letter As part of the legal obligation for vendors to adhere to AkzoNobels business principles, vendors are required to sign the Vendor Compliance Letter. This document contains AkzoNobels core values as well as a framework for labor, environmental, safety, and business relations guidelines. (AkzoNobel, 2011i) Key supplier management program This program aims to work with suppliers to increase and improve Eco-premium solutions for their customers. Regular meetings are conducted where suppliers and AkzoNobel agree upon new products that will continue success not only in economic terms, but also environmental sustainability terms. (AkzoNobel, 2011h) Sustainability focus areas AkzoNobel has developed sustainability focus areas (SFA) in order to source products and services that give the company the opportunity to significantly reduce their ecological footprint. These areas include: Logistics Travel Waste Management Packaging Carbon Management Renewable Raw Materials IT Lease Cars (AkzoNobel, 2011h) Climate change AKZO Nobel Position AkzoNobels position on climate change is laid out in the document AkzoNobels Position Statement. This document states that AkzoNobel recognizes climate change as a man-made global issue of great importance and, therefore, it is necessary to mitigate CO2 emissions. In an effort to reduce their carbon footprint, AkzoNobel monitors, measures and studies all CO2 emissions related to industrial or production activities. Yearly, this data is compiled into reports that are in accordance with the Greenhouse Gas Protocol and provide an analysis of direct, indirect, and total CO2 emissions. From these reports, reduction goals and mitigation objectives are developed that the company aims to achieve by the following year. The 2015 target is to reduce carbon emissions by 10% (based on 2009 emissions) per ton of product and the 2020 target is to reduce carbon emissions by 20-25% (based on 2009 emissions). (AkzoNobel, 2008) Achievements AkzoNobel has been recognized as the global leader in sustainability in the chemicals industry. From 2006 to 2007 AkzoNobel has managed to decrease their carbon dioxide emissions from 5.2 (Million T c) to 3.3 (Million T c). From 2007 to 2008, AkzoNobel decreased their carbon dioxide emissions 1 percent per ton of production. Because AkzoNobel aims to significantly reduce their ecological footprint, they have set up a strategy to help reduce carbon-intensive processes and improve energy efficiency. Thus far, they have achieved the following: 73% of worldwide power consumption is based on zero and low carbon sources 37% of electricity in the production process is based on hydropower Considered in the top ten percent for energy efficiency in manufacturing salt-chlorine-PVC loop- on our their most energy intensive processes Use low carbon energy sources to produce their other two most energy intensive chemicals- sodium chlorate and hydrogen peroxide Trying to replace fossil fuels with renewable resources such as wood chips Assessed the eco-efficiency/carbon footprint of key products Developed several carbon efficient solutions for our customers Include energy efficiency and carbon footprint criteria in their investment decisions (AkzoNobel, 2008) Additionally, Scandinavias pulp and paper industry and Hollands base chemical production are AkzoNobels most energy intensive production plants. These two industries combined are responsible for 82% of AkzoNobels total energy use and 73% of their CO2 emissions. Recently, the pulp and paper chemicals production plant shifted 58% of its energy to hydropower. Also, the base chemicals plants were retrofitted with highly energy efficient, gas fired cogeneration units that produce steam and power. (AkzoNobel, 2007b) The Future AkzoNobel has made plans to invest in creating a system that produces steam from waste and biofuels. AkzoNobel also supports implementing a cap and trade system that encourages plants to become sustainable while punishing the unsustainable ones. Their position states that they support the development and implementation of the most energy efficient technologies worldwide. For the future, AkzoNobel is revising their 2008 Carbon Strategy to build new sustainability goals. This strategy will include plans to reduce carbon emissions in the area of manufacturing. (AkzoNobel, 2007b) Discussion After reviewing AkzoNobels business strategy, it is clear that AkzoNobel looks at high environmental/sustainability performance as a business opportunity. The company specifically aims to produce products that are economically as well as environmentally rewarding. Currently, sustainability and climate change issues are at the forefront of the global agenda. If AkzoNobel chose to disregard these issues and continued with business as usual their reputation would lack the high integrity which has been a key element to their success. Because this company has managed to significantly reduce their ecological footprint, they have received several awards, media attention, and PR. This attention does not go unrecognized as consumers are attracted to companies that hold such a high esteem. Additionally, it is well known amongst the general population that chemical production as well as pulp and paper production are two notoriously environmentally harmful industries. As the general population b ecomes increasingly involved and aware of environmental issues, AkzoNobels business and purchasing decisions begin to reflect it. It is, thus, in AkzoNobels best interest to address the companys sustainability and remain at the forefront of the global sustainability arena. If AkzoNobel chose to disregard sustainability issues it would, in the long-term, cause AkzoNobel to not be able to compete with its competitors in the market. This is in line with AkzoNobels philosophy of environmental stewardship and their understanding of customer demand as can be seen by the following AkzoNobel quotation: [Sustainable innovation process] SIP is driven by the need for better product performance but its always connected to sustainability and environmental performance. We cant bring a product to market that is less environmentally friendly than its predecessor and expect it to succeed. Equally, a new eco-product will only do well if it also offers real competitive advantage. (AkzoNobel, 2010a) Regardless of the companys attempt to address environmental/sustainability issues, AkzoNobel is nonetheless environmentally harmful. Producing chemicals, paint, paper, and pulp products is never done without an ecological price. However, AkzoNobel has made a significant effort to increase the companys environmental sustainability as much as possible. This has been done by developing strategies, goals, and plans through rigorous sustainability planning and the success of the activities have been monitored via environmental testing. Because reductions in VOCs, CO2, SO2, and NOx emissions have been proven, the business activities of the company are in correlation to the environmental planning. As mentioned, companies in modern business are aware of the importance of being green. Unfortunately some of them fail to act green even though they present themselves as such. Greenpeace has set up a campaign to stop this so called Greenwashing and ask companies to: Clean up your act, NOT your image (Greenpeace, 2011). While surfing AkzoNobels webpage, it was clear that AkzoNobel was extremely proud of all its positive achievements but hardly mentioned when it didnt succeed or have a bad performance. However did SOMO (Centre for Research on Multinational Corporations) make a report in 2009 about AkzoNobel to provide additional information that AkzoNobel itself might not have reported, focusing on the 2008 annual report. In this report it was stated that in 2008 the Political Economy Research Institute (PERI) of the University of Massachusetts had ranked AkzoNobel in the 85th place on the Toxic 100 Index. This index indicates the top 100 air polluters in the U.S. on the basis of tota l human health hazards resulting from air toxics emissions at their facilities. (Knottnerus, 2009). It was also noted that in 2008, AkzoNobel had not fulfilled requirements about the usage and purchase of renewable energy. Knuttnerus mentioned more cases that were not environmentally friendly, though many were old, some even stationed back in the 1980s. Sustainability first became a fundamental principle in AkzoNobels business in 2004. The company had a quick success and already in 2008 it was in 2nd place on the Dow Jones Sustainability Indexes. (Knottnerus, 2009). The company has succeeded a lot in a short time and its understandable that some things cant happen over a night. From our point of view AkzoNobel could think about taking part in the Chemical Leasing program coordinated by UNIDO to mitigate their environmental pollution. The idea of ChL is to establish a service-oriented business model and to guide customers away from buying and using too much chemicals for the purpose of the environment. The producer mainly sells the functions performed by the chemical and functional units are the main basis for payment. (UNIDO, 2010) Conclusion After analysis of AkzoNobels environmental/sustainability management performance, it is clear that the company has a strong sustainable agenda that is supported by all levels of management- an essential aspect for successful implementation of business strategies. To execute this plan, AkzoNobel established an Executive Committee and a special Sustainable Development group that focuses on these matters. The main driving force for the development of this strategy is to increase long-term share holder value. The company monitors and develops both their internal production as well suppliers through the use of several sustainability tools. It was determined that AkzoNobel uses this sustainability strategy as a business opportunity as well as a means of boosting their public image. Since it was difficult to find figures or statistics that showed negative environmental performance, it is unclear whether the company adheres to Greenpeaces campaign slogan Clean up your act, NOT your image. Ei ther way, it is important that modern day companies are transparent and do not forget to report their bad performance. Transparency and honesty in business is the best way to be trusted and to avoid being classified as a Greenwashing company.

Roger and Me :: essays papers

Roger and Me The film was one that utilized and demonstrated many techniques found in the genre of documentary. Michael Moore took every aspect of making a film and flawlessly executed it. The resulting product was one that was to the point and interesting. The first thing that I realized was Moore’s ability to use B role and integrate it seamlessly into the film. One example would be when he was moving home from San Diego. The story cut to a scene in a movie that was of a man coming home from the army. I remember thinking that even though this film had nothing to do with the story at hand, it was very clear as to what happened. He saved a few mins of film and got straight to the point. Various other film clips were used to tell the story. This brings me to the second point, which is Moore’s ability to hold the audiences attention. You have a film about the town of Flint, Michigan and the trouble it went through during the GM plant closings. Right now I can think of a few thousand ways a filmmaker could have taken this story, added his point of view, and bored me out of my mind. That couldn’t be any farther from the truth. I found myself drawn into the story that Michael presented. He used comedy to pick up some slower parts and good camera angles to keep my attention on the screen. As for Story and Characters Moore once again used text book accuracy and added his twist. He picked a few characters and used them through out the film. This is something that kept the audience from getting confused. I think a lot of filmmakers screw up by introducing too many characters. For example, the sheriff deputy was a main character the makes you realize the truth behind what was going on. The Deputy represented the problems and pain that GM was causing by closing the plants.