Aig Case Solution

[pic] LEADERSHIP AT AIG: DOES STYLE MATTER? Case Overview This case deals with executive leadership styles. In particular, this case deals with American International Group, the world’s insurance company, and its CEO Maurice â€Å"Hank† Greenberg. Greenberg, an autocratic leader, was recently deposed by his board of directors after problems emerged regarding possible earning manipulation. It describes his leadership style, reasons his two sons (former employees) left the company, and Martin Sullivan, Greenberg’s successor. Like his former boss, Sullivan micromanages the organization, but is well liked by employees. Teaching Objectives ) To show students the impact of autocratic leadership style on employees. 2) To distinguish between micro and participative management in an organization. 3) To introduce the concept of leadership succession and its effects on organizations. Purpose This case presents various leadership styles used by CEOs. It suggests that executi ves who uses a more participative leadership style are more likely to create an effective employee workplace. Relationship to Part 4 The relationship of this case to part 4: leadership and its styles, possible motivation of employees through style, the encouragement of team work and communication.This case can draw on various theories in all four chapters of Part 4. Questions Question 1. AIG Chairman and CEO Maurice â€Å"Hank† Greenberg was considered an autocratic leader and a micromanager by many employees; yet the company grew dramatically during his reign as CEO. Does leadership style matter as long as the company performs well and shareholders are satisfied with their return on investment? Answer Leadership does matter. A company may perform well, and shareholders may be satisfied with their return on investment, but on another level this style of leadership may do irreparable hard to employee effectiveness and morale.Eventually autocratic leadership will take it toll o n the organization and its ability to operate effectively. Question 2. AIG’s new CEO Sullivan has been labeled a micromanager, but with a more pleasant personality. Can he, as a micromanager, develop a more participative leadership style? How? Answer It may be very difficult for a manager/leader to change his management and leadership style. There is indeed a time and place for autocratic leadership (e. g. , when time is limited), but we know that participative leadership often produces better results.While it is often difficult for executives (managers) to let go and delegate more to underlings, AIG’s new CEO Sullivan can learn to develop a more participative leadership style. He must begin to create more teams, motivate more employees to participate in corporate activities, and communicate more effective. In part, his micromanagement style may be a result of following Greenberg’s lead. As Sullivan becomes more comfortable in his new role, he should be able to delegate more effectively, especially if he is to deal with more strategic corporate issues. Leadership is a very important aspect that is prominent in our professional life.If a team is led by an effective good leader, the team is more likely to perform well as per the expectations of the project. On the other hand, if the leader is a person who just issues orders and commands the tasks to be done, the team is demotivated and does tend to perform less than they actually can. If you are a working professional, you might have got an idea about the types of leadership styles and techniques. The working and managing style of a leader plays a very important part in making the leadership role effective. There are various managers who adopt different leadership styles and methods for employee and process management.Each leadership style has its own methods, behavior, effects, and aspects. Participative leadership is a very significant leadership style that is most beneficial to employees, managers alike. What is Participative Leadership Style? As the name suggests, this leadership style relates to a method of having things done by involving team members in goals setting and decision making. Since there is an involvement of team members and employees in being a part of the management, this is by far the most useful management style in the business world.Though there is employee participation, the leader is handed over the responsibility of taking the final decision. In this corporate leadership style, the manager works with the team and not over the team, which is why he can determine even the minutest errors of the processes that have to be executed. Advantages of Participative Leadership Style There are many apparent and proven advantages of the participative leadership practice. A very important advantage is that employees and team members are motivated to work, because they realize that the management is ready to consider their suggestions and viewpoints.And if t here is such employee motivation, the team members happen to work more effectively than expected. This eventually has a good effect on the company's revenue. Secondly, since the manager becomes like a team member and takes part in the decision-making process, it has a good impact on teamwork. Thirdly, as more than one minds are working on goal setting and decision making, there is an all-round analysis of the possibilities of failures. Therefore, the manager can majorly rule out any errors and possibilities of failures in the project.You can say that there is a broader assessment of the situation which is to be worked upon. The result of participative leadership can also be effective decisions suggested by experts in the respective field. In this kind of business leadership, the manager does not only involve team members, but can also take guidance from his peers. One of the most suitable participative leadership examples can be when a manager divides project work in his team member s including himself, discusses the project requirements and expectations with the team leader and other members, and then they work on it collectively.Participative leadership surely increases employee satisfaction, reduces the workload of managers, and creates better teamwork; with all this eventually contributing to good worLeadership is a very important aspect that is prominent in our professional life. If a team is led by an effective good leader, the team is more likely to perform well as per the expectations of the project. On the other hand, if the leader is a person who just issues orders and commands the tasks to be done, the team is demotivated and does tend to perform less than they actually can.If you are a working professional, you might have got an idea about the types of leadership styles and techniques. The working and managing style of a leader plays a very important part in making the leadership role effective. There are various managers who adopt different leaders hip styles and methods for employee and process management. Each leadership style has its own methods, behavior, effects, and aspects. Participative leadership is a very significant leadership style that is most beneficial to employees, managers alike. What is Participative Leadership Style?As the name suggests, this leadership style relates to a method of having things done by involving team members in goals setting and decision making. Since there is an involvement of team members and employees in being a part of the management, this is by far the most useful management style in the business world. Though there is employee participation, the leader is handed over the responsibility of taking the final decision. In this corporate leadership style, the manager works with the team and not over the team, which is why he can determine even the minutest errors of the processes that have to be executed.Advantages of Participative Leadership Style There are many apparent and proven advant ages of the participative leadership practice. A very important advantage is that employees and team members are motivated to work, because they realize that the management is ready to consider their suggestions and viewpoints. And if there is such employee motivation, the team members happen to work more effectively than expected. This eventually has a good effect on the company's revenue. Secondly, since the manager becomes like a team member and takes part in the decision-making process, it has a good impact on teamwork.Thirdly, as more than one minds are working on goal setting and decision making, there is an all-round analysis of the possibilities of failures. Therefore, the manager can majorly rule out any errors and possibilities of failures in the project. You can say that there is a broader assessment of the situation which is to be worked upon. The result of participative leadership can also be effective decisions suggested by experts in the respective field. In this kind of business leadership, the manager does not only involve team members, but can also take guidance from his peers.One of the most suitable participative leadership examples can be when a manager divides project work in his team members including himself, discusses the project requirements and expectations with the team leader and other members, and then they work on it collectively. Participative leadership surely increases employee satisfaction, reduces the workload of managers, and creates better teamwork; with all this eventually contributing to good wor Question 3. Greenberg named his son Evan as the heir apparent. Yet, Greenberg never set a departure date.Should a good leader set a date for departure once a successor is named? Why? Why not? Answer Most of the time succession in organizations creates a host of problems. On the one hand, incumbent CEOs are less than willing to give up the power and prestige that accompany their position. On the other hand, the successor (heir ap parent) may be eager to assume the top position. If the successor has to wait too long for the top leadership position, he may decide to seek out a top level position in another company, and the company may lose a unique opportunity for a smooth leadership transition.CEOs should set a deadline for their departure so that all stakeholders are informed which can facilitate a change in leadership. LEADERSHIP AT AIG: Does Style Matter Question 1: AIG Chairman and CEO Maurice â€Å"Hank† Greenberg was consider an autocraticleader and micromanager by many employee, yet the company grew dramaticallyduring his reign as CEO. Does leadership style matter as long as the company  performs well and shareholders are satisfied with their return on investment?Leader is a person who led people towards to the common goal. In the process of managing anorganization, I believe leadership style is the one of important factor in deciding the performanceof the company. Leader’s style of lea dership changes according to the situation of the company. Based on managerial grid concept by Robert Blake and Jane Mouton, there are five style of  leadership that combine different degrees of concern for production and concern for people andthis five styles of leadership is shown in figure 1 below.In the case study, CEO Maurice â€Å"Hank†was more concern of production compare to the concern for people and of course, this kind of  leadership will produce good performance. That is why Maurice â€Å"Hank† able to bring thecompany from midlevel insurance company becomes the international company and give thesatisfaction towards the shareholders. However, to sustain the company at the same level,Maurice â€Å"Hank† kinds of leadership will causes the performance of the company to be declined  because lack of concern for people will affect the workers performance and this result would notsatisfy the shareholders.The workers in AIG will become less motivated due the pressure given  by the management practice by Maurice â€Å"Hank†. This style of leadership by Maurice â€Å"Hank† fallunder style of leadership â€Å"produce or perish† as shown in figure 1. As conclusion, the style of  leadership is the key player in determine the successful of a company. Question 2: AIG’s new CEO Sullivan has been labeled a micromanager, but with a more  pleasant personality. Can he as a micromanager, develop more participativeleadership style?How? Participative leadership style is defined as  leader  who involves his subordinatesin the process of   making decision such as setting goal, solving  problemand others, but retains the final  decision making  authority. By referring the case study, CEO Sullivan can develop more participative style leadership by segregating the works to his subordinates in order to enabling his subordinate to  play their role in the organizations and indirectly developing the trust between himself with his subordinate.This action will enable the workers especially his subordinate to create a feeling of  self-belonging towards the company. Once the trust is there, he should implement groupdiscussion or brainstorming before making any decision but while conducting the groupdiscussion, he should be the person who get all the buy-in from the group members. In the groupdiscussion, he should use his authority in deciding the decision and this kind of ways in making decision helps his subordinate to accept and thus implement the action with full enthusiasm.Besides that, he should often communicate with his workers through out the three layer of  management such as having chitchat with the workers during teatime in order to understand the needs of workers in the company and thus raise his level of concern towards people. As he developing his understanding towards his workers, he can easily delegate the works that suit the workers best and as the result, company p erformance increases and building the security towards the investor and the people in the company especially shareholders. Question 3:Greenberg named his son Evan as the heir apparent. Yet Greenberg never set adeparture date. Should a good leader set a date for departure? When should hename a successor? Every thing that starts must have an end. Leaders also have his own starts and ends in hisera of leadership. For my point of view, a good leader should set a date for his departure. This is  because a leader knows better his own limitation and capabilities. A leader should alsounderstand his abilities and weakness in managing the organization as the time passes by.I  believe that every leader would like to leave his position without tarnishing his reputation andintegrity. However, it is not wise action to take if he announced his name of successor long  before his departure date for the position. This is because the successor required a time for him toadapt with the changes in role and the leader himself required time to hand over and coaching hisnew successor to take over his positions but how long is the duration for the this process, it alldepends on the successor himself.Normally, a leader had already started to look for hissuccessor long before he announced his departure date. This is because to identify a good leader  does not happen in a single day. It will consume so much time and effort for leader to be bornand as been mention by Richard Arvey, a human resources and industrial relations professor inthe Carlson School of Management, â€Å"While environmental influences determine many of our  leadership behaviors and the roles we obtain, our genes still exert a sizable influence over  whether we will become leaders. That is why, I do believe that leadership is both inherited andacquired. As conclusion, a good leader always think three steps ahead, that’s why it is importantfor a good leader to prepare for his succession plan American International Group From Wikipedia, the free encyclopedia Jump to: navigation, search â€Å"AIG† redirects here. For other uses, see AIG (disambiguation). |American International Group, Inc. |[pic] | |Type |Public | |Traded as |NYSE:  AIG | | |S&P 500 Component | |Industry |Insurance, Financial services | |Founded |Shanghai, China (1919)[1] | |Founder(s) |Cornelius Vander Starr | |Headquarters |American International Building, New York City, | | |New York, United States | |Area served |Worldwide | |Key people |Bob Benmosche | | |(President & CEO) | | |Robert Miller (Chairman)[2] | |Products |Insurance annuities, mutual funds | |Revenue |[pic]US$ 77. 301 billion (2010)[3] | |Operating income |[pic]US$ 17. 936 billion (2010)[3] | |Net income |[pic]US$ 7. 786 billion (2010)[3] | |Total assets |[pic]US$ 683. 443 billion (2010)[3] | |Total equity |[pic]US$ 113. 239 billion (2010)[3] | |Employees |96,000 (2010)[3] | |Website |AIG. com | American International Group, Inc. NYSE:  AIG) or AIG is an American multinational insurance corporation. Its corporate headquarters is located in the American International Building in New York City. The British headquarters office is on Fenchurch Street in London, continental Europe operations are based in La Defense, Paris, and its Asian headquarters office is in Hong Kong. According to the 2011 Forbes Global 2000 list, AIG was the 29th-largest public company in the world. [4][5] It was listed on the Dow Jones Industrial Average from April 8, 2004 to September 22, 2008. AIG suffered from a liquidity crisis when its credit ratings were downgraded below â€Å"AA† levels in September 2008.The United States Federal Reserve Bank on September 16, 2008 created an $85  billion credit facility to enable the company to meet increased collateral obligations consequent to the credit rating downgrade, in exchange for the issuance of a stock warrant to the Federal Reserve Bank for 79. 9% of the equity of AIG. The Federal Re serve Bank and the United States Treasury by May 2009 had increased the potential financial support to AIG, with the support of an investment of as much as $70  billion, a $60  billion credit line and $52. 5  billion to buy mortgage-based assets owned or guaranteed by AIG, increasing the total amount available to as much as $182. 5  billion. [6][7] AIG subsequently sold a number of its subsidiaries and other assets to pay down loans received, and continues to seek buyers of its assets. Contents | |  [hide]   | |1 History | |2 Business | |2. 1 Holdings | |2. 2 Auto insurance | |2. 3 Travel Insurance | |3 Financial crisis | |3. 1 Chronology of September 2008 liquidity crisis | |3. 2 Federal Reserve bailout | |3. Additional bailouts of 2008 | |3. 4 Counterparty controversy | |3. 5 Post-bailout expenditures | |3. 6 Settlement of credit default swaps | |3. 7 Sales of assets | |3. 8 Record losses | |3. 2009 employee bonus payments | |3. 10 Manchester United Sponsorshi p | |3. 11 Share buyback | |4 Litigation | |4. 1 Accounting fraud claims | |5 Corporate governance | |5. Board of directors | |6 See also | |7 Notes | |8 References and further reading | |9 External links | [edit] History [pic] [pic] The American International Building in Lower Manhattan. AIG history dates back to 1919, when Cornelius Vander Starr established an insurance agency in Shanghai, China.Starr was the first Westerner in Shanghai to sell insurance to the Chinese, which he continued to do until AIG left China in early 1949—as Mao Zedong led the advance of the Communist People's Liberation Army on Shanghai. [8][9] Starr then moved the company headquarters to its current home in New York City. [10] The company went on to expand, often through subsidiaries, into other markets, including other parts of Asia, Latin America, Europe, and the Middle East. [11] In 1962, Starr gave management of the company's lagging U. S. holdings to Maurice R. â€Å"Hank† Greenberg , who shifted its focus from personal insurance to high-margin corporate coverage. Greenberg focused on selling insurance through independent brokers rather than agents to eliminate agent salaries.Using brokers, AIG could price insurance according to its potential return even if it suffered decreased sales of certain products for great lengths of time with very little extra expense. In 1968, Starr named Greenberg his successor. The company went public in 1969. [12] Beginning in 2005, AIG became embroiled in a series of fraud investigations conducted by the Securities and Exchange Commission, U. S. Justice Department, and New York State Attorney General's Office. Greenberg was ousted amid an accounting scandal in February 2005; he is still fighting civil charges being pursued by New York state. [13][14][15] The New York Attorney General's investigation led to a $1.   billion fine for AIG and criminal charges for some of its executives. [16] Greenberg was succeeded as CEO by Martin J. Sullivan, who had begun his career at AIG as a clerk in its London office in 1970. [17] On June 15, 2008, after disclosure of financial losses and subsequent to a falling stock price, Sullivan resigned and was replaced by Robert B. Willumstad, Chairman of the AIG Board of Directors since 2006. Willumstad was forced by the US government to step down and was replaced by Edward M. Liddy on September 17, 2008. [18] AIG's board of directors named Robert Benmosche CEO on August 3, 2009 to replace Mr. Liddy, who earlier in the year announced his retirement. [19] [edit] Business [edit] HoldingsFurther information: Holdings of American International Group In the United States, AIG is the largest underwriter of commercial and industrial insurance, and AIG acquired American General Life Insurance in August 2001. [20] [edit] Auto insurance AIG sold auto insurance policies through its subsidiary unit, AIG Direct (aka aigdirect. com). The policies they offered included insurance for private au tomobiles, motorcycles, recreational vehicles and commercial vehicles. AIG purchased the remaining 39% that it did not own of online auto insurance specialist 21st Century Insurance in 2007 for $749  million. [21] With the failure of the parent company and the continuing recession in late 2008, AIG rebranded its insurance unit to 21st Century Insurance. 22][23] In April 2009 it was announced that AIG was selling the 21st Century Insurance subsidiary to Farmers Insurance Group for $1. 9  billion. [24] [edit] Travel Insurance Main article: AIG Travel Guard AIG sells travelers insurance internationally through Travel Guard, headquartered in Stevens Point, Wisconsin. [edit] Financial crisis Further information: Subprime mortgage crisis,  Financial crisis of 2007–2010,  and  Liquidity crisis of September 2008 [edit] Chronology of September 2008 liquidity crisis On September 16, 2008, AIG suffered a liquidity crisis following the downgrade of its credit rating. Industry p ractice permits firms with the highest credit ratings to enter swaps without depositing collateral with their trading counter-parties.When its credit rating was downgraded, the company was required to post additional collateral with its trading counter-parties, and this led to an AIG liquidity crisis. AIG's London unit sold credit protection in the form of credit default swaps (CDSs) on collateralized debt obligations (CDOs) that had by that time declined in value. [25] The United States Federal Reserve Bank announced the creation of a secured credit facility of up to US$85  billion, to prevent the company's collapse by enabling AIG to meet its obligations to deliver additional collateral to its credit default swap trading partners. The credit facility provided a structure to loan as much as US$85  billion, secured by the stock n AIG-owned subsidiaries, in exchange for warrants for a 79. 9% equity stake, and the right to suspend dividends to previously issued common and preferre d stock. [17][26][27] AIG announced the same day that its board accepted the terms of the Federal Reserve Bank's rescue package and secured credit facility. [28] This was the largest government bailout of a private company in U. S. history, though smaller than the bailout of Fannie Mae and Freddie Mac a week earlier. [29][30] AIG's share prices had fallen over 95% to just $1. 25 by September 16, 2008, from a 52-week high of $70. 13. [citation needed] The company reported over $13. 2  billion in losses in the first six months of the year. 31][32] The AIG Financial Products division headed by Joseph Cassano, in London, had entered into credit default swaps to insure $441  billion worth of securities originally rated AAA. Of those securities, $57. 8  billion were structured debt securities backed by subprime loans. [33] CNN named Cassano as one of the â€Å"Ten Most Wanted: Culprits† of the 2008 financial collapse in the United States. [34] As Lehman Brothers (the largest bankruptcy in U. S. history at that time) suffered a catastrophic decline in share price, investors began comparing the types of securities held by AIG and Lehman, and found that AIG had valued its Alt-A and sub-prime mortgage-backed securities at 1. 7 to 2 times the values used by Lehman which weakened investors' confidence in AIG. 31] On September 14, 2008, AIG announced it was considering selling its aircraft leasing division, International Lease Finance Corporation, to raise cash. [31] The Federal Reserve hired Morgan Stanley to determine if there are systemic risks to a financial failure of AIG, and asked private entities to supply short-term bridge loans to the company. In the meantime, New York regulators allowed AIG to borrow $20  billion from its subsidiaries. [35][36] At the stock market's opening on September 16, 2008, AIG's stock dropped 60 percent. [37] The Federal Reserve continued to meet that day with major Wall Street investment firms, hoping to broker a deal for a non-governmental $75  billion line of credit to the company. 38] Rating agencies Moody's and Standard and Poor downgraded AIG's credit ratings on concerns over likely continuing losses on mortgage-backed securities. The credit rating downgrade forced the company to deliver collateral of over $10  billion to certain creditors and CDS counter-parties. [39] The New York Times later reported that talks on Wall Street had broken down and AIG may file for bankruptcy protection on Wednesday, September 17. [40] Just before the bailout by the US Federal Reserve, AIG former CEO Maurice (Hank) Greenberg sent an impassioned letter to AIG CEO Robert B. Willumstad offering his assistance in any way possible, ccing the Board of Directors. His offer was rebuffed. [41] [edit] Federal Reserve bailoutOn the evening of September 16, 2008, the Federal Reserve Bank's Board of Governors announced that the Federal Reserve Bank of New York had been authorized to create a 24-month credit-liquidity faci lity from which AIG could draw up to $85  billion. The loan was collateralized by the assets of AIG, including its non-regulated subsidiaries and the stock of â€Å"substantially all† of its regulated subsidiaries, and with an interest rate of 850 basis points over the three-month London Interbank Offered Rate (LIBOR) (i. e. , LIBOR plus 8. 5%). In exchange for the credit facility, the U. S. government received warrants for a 79. 9 percent equity stake in AIG, with the right to suspend the payment of dividends to AIG common and preferred shareholders. [17][27] The credit facility was created under the auspices of Section 13(3) of the Federal Reserve Act. 27][42][43] AIG's board of directors announced approval of the loan transaction in a press release the same day. The announcement did not comment on the issuance of a warrant for 79. 9% of AIG's equity, but the AIG 8-K filing of September 18, 2008, reporting the transaction to the Securities and Exchange Commission stated t hat a warrant for 79. 9% of AIG shares had been issued to the Board of Governors of the Federal Reserve. [17][28][44] AIG drew down US$ 28  billion of the credit-liquidity facility on September 17, 2008. [45] On September 22, 2008, AIG was removed from the Dow Jones Industrial Average. [46] An additional $37. 8  billion credit facility was established in October.As of October 24, AIG had drawn a total of $90. 3  billion from the emergency loan, of a total $122. 8  billion. [47] Maurice Greenberg, former CEO of AIG, on September 17, 2008, characterized the bailout as a nationalization of AIG. He also stated that he was bewildered by the situation and was at a loss over how the entire situation got out of control as it did. [48] On September 17, 2008, Federal Reserve Board chair Ben Bernanke asked Treasury Secretary Henry Paulson join him, to call on members of Congress, to describe the need for a congressionally authorized bailout of the nation's banking system. Weeks later, Congress approved the Emergency Economic Stabilization Act of 2008.Bernanke said to Paulson on September 17, â€Å"We can’t keep doing this. Both because we at the Fed don’t have the necessary resources and for reasons of democratic legitimacy, it's important that the Congress come in and take control of the situation. â€Å"[49] [edit] Additional bailouts of 2008 From mid September till early November, AIG's credit-default spreads were steadily rising, implying the company was heading for default. [50][51] On November 10, 2008, the U. S. Treasury announced it would purchase $40  billion in newly issued AIG senior preferred stock, under the authority of the Emergency Economic Stabilization Act's Troubled Asset Relief Program. 52][53][54] The FRBNY announced that it would modify the September 16 secured credit facility; the Treasury investment would permit a reduction in its size from $85  billion to $60  billion, and that the FRBNY would extend the life of the facility from three to five years, and change the interest rate from 8. 5% plus the three-month London interbank offered rate (LIBOR) for the total credit facility, to 3% plus LIBOR for funds drawn down, and 0. 75% plus LIBOR for funds not drawn, and that AIG would create two off- balance-sheet Limited Liability Companies (LLC) to hold AIG assets: one to act as an AIG Residential Mortgage-Backed Securities Facility and the second to act as an AIG Collateralized Debt Obligations Facility. [52][54]Federal officials said the $40  billion investment would ultimately permit the government to reduce the total exposure to AIG to $112  billion from $152  billion. 52] On December 15, 2008, the Thomas More Law Center filed suit to challenge the Emergency Economic Stabilization Act of 2008, alleging that it unconstitutionally promotes Islamic law (Sharia) and religion. The lawsuit was filed because AIG provides Takaful Insurance Plans, which, according to the company, avoid investments a nd transactions that are†un-Islamic†. [55][56] As of January 2012, TARP had about $50 billion invested in AIG according to one report. Break even for the government was figured at $28. 73 a share v. then-current share price of about $25. [57] [edit] Counterparty controversy AIG was required to post additional collateral with many creditors and ounter-parties, touching off controversy when over $100  billion was paid out to major global financial institutions that had previously received TARP money. While this money was legally owed to the banks by AIG (under agreements made via credit default swaps purchased from AIG by the institutions), a number of Congressmen and media members expressed outrage that taxpayer money was going to these banks through AIG. [58] In January, 2010, a document known as â€Å"Schedule A – List of Derivative Transactions† was released to the public, against the wishes of the New York Fed. It listed many of the insurance deals tha t AIG had with various other parties, such as Goldman Sachs, Societe Generale, Deutsche Bank, and Merrill Lynch. 59][60] Had AIG been allowed to fail in a controlled manner through bankruptcy, bondholders and derivative counterparties (major banks) would have suffered significant losses, limiting the amount of taxpayer funds directly used. Fed Chairman Ben Bernanke argued: â€Å"If a federal agency had [appropriate authority] on September 16, [2008], they could have been used to put AIG into conservatorship or receivership, unwind it slowly, protect policyholders, and impose haircuts on creditors and counterparties as appropriate. That outcome would have been far preferable to the situation we find ourselves in now. â€Å"[61] [edit] Post-bailout expenditures The week following the September bailout, AIG employees and distributors participated in a California retreat which cost $444,000 and featured spa treatments, banquets, and golf outings. 62][63] It was reported that the trip was a reward for top-performing life-insurance agents planned before the bailout. [64] Less than 24 hours after the news of the party was first reported by the media, it was reported that the Federal Reserve had agreed to give AIG an additional loan of up to $37. 8  billion. [65] AP reported on October 17 that AIG executives spent $86,000 on a previously scheduled English hunting trip. News of the lavish spending came just days after AIG received an additional $37. 8  billion loan from the Federal Reserve, on top of a previous $85  billion emergency loan granted the month before. Regarding the hunting trip, the company responded, â€Å"We regret that this event was not canceled. [66] An October 30, 2008 article from CNBC reported that AIG had already drawn upon $90  billion of the $123  billion allocated for loans. [67] On November 10, 2008, just a few days before renegotiating another bailout with the US Government for $40  billion, ABC News reported that AIG spent $34 3,000 on a trip to a lavish resort in Phoenix, Arizona. [68] [edit] Settlement of credit default swaps On October 22, 2008, those creditors of Lehman Brothers who bought credit default swaps to hedge them against Lehman bankruptcy settled those accounts. The net payments were $5. 2  billion[69] even though initial estimates of the amount of the settlement were between $100  billion and $400  billion. 70] By December 2008, AIG had paid at least $18. 7  billion to various financial institutions, including Goldman Sachs and Societe Generale to retire obligations related to credit default swaps (CDS). As much as $53. 5  billion related to swap payouts are part of the bailout. [71] On March 15, 2009, under mounting pressure from Congress and after consultation with the Federal Reserve, AIG disclosed a list of major recipients of collateral postings and payments under credit default swaps, guaranteed investment agreements, and securities lending agreements. [72] Below is data fr om one of the charts AIG released, representing only a portion of the total payouts, over a period of a few months. AIG collateral postings to credit default swap counterparties, from the period September 16, 2008 to | |December 31, 2008[73] | |Counterparty |US $ posted |Counterparty |US $ posted | |Societe Generale |$4,100,000,000 |Deutsche Bank |$2,600,000,000 | |Goldman Sachs |$2,500,000,000 |Merrill Lynch |$1,800,000,000 | |Calyon |$1,100,000,000 |Barclays |$900,000,000 | |UBS |$800,000,000 |DZ Bank |$700,000,000 | |Wachovia |$700,000,000 |Rabobank |$500,000,000 | |KFW |$500,000,000 |JPMorgan |$400,000,000 | |Banco Santander |$300,000,000 |Danske Bank |$200,000,000 | |Reconstruction Finance |$200,000,000 |HSBC Bank |$200,000,000 | |Corporation[74] | | | |Morgan Stanley |$200,000,000 |Bank of America |$200,000,000 | |Bank of Montreal |$200,000,000 |Royal Bank of Scotland |$200,000,000 | |Other (unknown) |$4,100,000,000 | | | [edit] Sales of assets AIG since September 2008 has ma rketed its assets to pay off its government loans. A global decline in the valuation of insurance businesses, and the weakening financial condition of potential bidders, has challenged its efforts. If the U. S. government decides to continue to protect the company from falling into bankruptcy, it may have to take the assets itself in exchange for the loans, or offer further direct financial support. 75] As of September 6, 2009, The Wall Street Journal reported that Pacific Century Group had agreed to pay $500  million for a part of American International Group's asset management business, and that they also expected to pay an additional $200  million to AIG in carried interest and other payments linked to future performance of the business. [76] Also in 2009, AIG sold its operations in Colombia to Ecuador's Banco del Pichincha. On March 1, 2010, insurance company Prudential confirmed that it was in advanced negotiations to buy the Asian operations of AIG. [77] Prudential was to buy the pan-Asian life insurance company, American International Assurance (AIA), for approximately $35. 5  billion. 78] On June 1, 2010 the deal failed because AIG would not accept the $30. 5  billion after Prudential lowered the amount by $5  billion from the originally planned $35. 5  billion after Prudential shareholder discontent. [79] AIG agreed on March 8, 2010, to sell its American Life Insurance Co. unit (ALICO) to MetLife Inc. for $15. 5  billion in cash and stock by November 1, 2010. Alico has annuities, life and health insurance operations in Japan, Middle East (including Nepal, Bangladesh and Pakistan), Western and Eastern Europe, Latin America and the Caribbean. AIG said it will sell Alico for $6. 8  billion in cash and the remainder in MetLife equity.The deal leaves AIG as the second-largest shareholder of MetLife, with a stake of more than 20% in the company. On March 29, 2010, Bloomberg L. P. reported that after almost three months of delays, AIG had com pleted the $500  million sale of a portion of its asset management business, branded PineBridge Investments, to the Asia-based Pacific Century Group. [80] On September 30, 2010, AIG announced an agreement to sell two of its life insurance companies in Japan, AIG Star and AIG Edison, to Prudential Financial for $4. 2  billion in cash and $600  million in the assumption of third party debt to help repay some of the money owed to the U. S. government. 81] On November 1, 2010, AIG announced it had raised $36. 71  billion from the sale of ALICO and an initial public offering for AIA. The company will use the proceeds Federal Reserve Bank of New York credit facility and make payments on other interests owned by the government. [82] On September 2, 2011, AIG filed with the SEC to spin off their aircraft leasing firm, International Lease Finance Corporation (ILFC), in an initial public offering. [83] [edit] Record losses On March 2, 2009, AIG reported a fourth quarter loss of $61. 7 bn (? 43bn) and revenue of ? $23. 7bn ( 16. 2bn) for the final three months of 2008. This was the largest quarterly loss in corporate history at that time. 84] The announcement of the loss had an impact on morning trading in Europe and Asia, with the FTSE100, DAX and Nikkei all suffering sharp falls. In the US the Dow Jones Industrial Average fell to below 7000 points, a twelve-year low. [85][86] The news of the loss came the day after the U. S. Treasury Department had confirmed that AIG was to get an additional $30  billion in aid, on top of the $150  billion it has already received. [87] The Treasury Department suggested that the potential losses to the US and global economy would be ‘extremely high' if it were to collapse[88] and has suggested that if in future there is no improvement, it will invest more money into the company, as it is unwilling to allow it to fail. 89] The firm's position as not just a domestic insurer, but also one for small businesses and many list ed firms, has prompted US officials to suggest its demise could be ‘disastrous' and the Federal Reserve said that AIG posed a ‘systemic risk' to the global economy. [84] The fourth quarter result meant the company made a $99. 29  billion loss for the whole of 2008,[88] with five consecutive quarters of losses costing the company well over $100  billion. [89] In a testimony before the Senate Budget Committee on March 3, 2009, the Federal Reserve Chairman Ben Bernanke stated that â€Å"AIG exploited a huge gap in the regulatory system,† †¦ and â€Å"to nobody's surprise, made irresponsible bets and took huge losses†. [90] [edit] 2009 employee bonus paymentsMain article: AIG bonus payments controversy In March 2009, AIG announced that they were paying $165  million in executive bonuses. Total bonuses for the financial unit could reach $450  million and bonuses for the entire company could reach $1. 2  billion. [91] President Barack Obama, who vo ted for the AIG bailout as a Senator[92] responded to the planned payments by saying â€Å"[I]t's hard to understand how derivative traders at AIG warranted any bonuses, much less $165  million in extra pay. How do they justify this outrage to the taxpayers who are keeping the company afloat? † and â€Å"In the last six months, AIG has received substantial sums from the U. S. Treasury.I’ve asked Secretary Geithner to use that leverage and pursue every legal avenue to block these bonuses and make the American taxpayers whole. â€Å"[93] [pic] [pic] Protester outside 60 Wall Street Deutsche Bank's US main office in the wake of the bonus controversy is interviewed by news media. Politicians on both sides of the Congressional aisle reacted with outrage to the planned bonuses. Senator Chuck Grassley (R-Iowa) said â€Å"I would suggest the first thing that would make me feel a little bit better toward them if they'd follow the Japanese example and come before the Americ an people and take that deep bow and say, I'm sorry, and then either do one of two things: resign or go commit suicide. [94] Senator Chuck Schumer (D-New York) accused AIG of â€Å"Alice in Wonderland business practices† and said â€Å"It boggles the mind. † He has threatened to tax the bonuses at up to 100%. [95] Senator Richard Shelby (R-Alabama) said â€Å"These people brought this on themselves. Now you're rewarding failure. A lot of these people should be fired, not awarded bonuses. This is horrible. It's outrageous. â€Å"[96] Senator Mitch McConnell (R-Kentucky) echoed his comments, saying â€Å"This is an outrage. â€Å"[97] Senator Jon Tester (D-Montana) said â€Å"This is ridiculous. † and AIG executives â€Å"need to understand that the only reason they even have a job is because of the taxpayers. â€Å"[98] Senator Dick Durbin (D-Illinois) said â€Å"I've had it. and â€Å"The fact that they continue to do it while we pour in billions of doll ars is indefensible. â€Å"[99] Representative Barney Frank (D-Massachusetts), Chairman of the House Financial Services Committee, said paying these bonuses would be â€Å"rewarding incompetence†[98] and â€Å"These people may have a right to their bonuses. They don't have a right to their jobs forever. â€Å"[96] Representative Mark Kirk (R-Illinois) said â€Å"AIG should not be on welfare from Uncle Sam, and yet paying bonuses and transferring a considerable amount of taxpayer funds to entities overseas. â€Å"[99] Federal Reserve Chairman Ben Bernanke said â€Å"It makes me angry. I slammed the phone more than a few times on discussing AIG. [96] Lawrence Summers, Director of the National Economic Council, said â€Å"The easy thing would be to just say, you know, ‘Off with their heads,’ and violate the contracts, but you have to think about the consequences of breaking contracts for the overall system of law. †[100] Austan Goolsbee, of the Council of Economic Advisers said â€Å"I don't know why they would follow a policy that's really not sensible, is obviously going to ignite the ire of millions of people. † and â€Å"You worry about that backlash. â€Å"[101] Political commentators and journalists expressed an equally bipartisan outrage. [94][102][103][104][104][105][106][107][108][109][110] On March 24, 2009, The New York Times printed the resignation letter of Jake DeSantis, executive vice president of AIG's financial products unit, to Edward M. Liddy, the chief executive of AIG.DeSantis stated he had nothing to do with the credit default swaps, he lost much of his life savings in the form of deferred compensation invested in the capital of AIG Financial Products; he had agreed to work for an annual salary of $1 out of a sense of duty, that he was assured many times the bonuses would be paid in March 2009, and that he believed he and others were let down by Liddy's lack of support. He also stated he was going to donate his bonus to those suffering from the global economic downturn. [111] It was reported that Senator Christopher Dodd (D-Con) (who first denied, then admitted to amending the legislation to allow the AIG bonuses), received $160,000 from employees of AIG. [112][113][114][115] A memo issued in 2006 by Joseph Cassano, AIGFinancial Products chief executive, urged AIG employees to donate to Dodd, saying that as â€Å"next in line to become chairman of the Senate Banking, Housing, and Urban Affairs Committee†¦ Senator Dodd will now have the opportunity to set the committee's agenda on issues critical to the financial services industry. â€Å"[116] [edit] Manchester United Sponsorship AIG was the principal sponsor of English football club Manchester United from 2006–2010, and as part of the sponsorship deal, its logo was prominently displayed on the front of the club's jerseys and other merchandise. The AIG deal was announced by Manchester United chief executive David G ill on April 6, 2006, for a British shirt sponsorship record ? 56. 5  million, to be paid over four years (? 14. 1  million a year).The deal became the most valuable sponsorship deal in the world in September 2006, after the renegotiation and subsequent degrading of the ? 15  million-a-year deal Italian team Juventus had with oil firm Tamoil. During AIG's sponsorship, Manchester United enjoyed one of its most successful periods in history, winning the Premier League three consecutive years, two Football League Cups, and the UEFA Champions League. [citation needed] On January 21, 2009, it was announced that AIG would not be renewing its sponsorship of the club at the end of the deal in May 2010. It is not clear, however, whether or not AIG's agreement to run MU Finance will continue.American risk consulting firm Aon Corporation was named the club's new principal sponsor on June 3, 2009, with its sponsorship of the club taking effect from the beginning of the 2010–11 seas on. The terms of the deal were not revealed, but it has been reported to be worth approximately ? 80  million over four years. [citation needed] [edit] Share buyback Due to the Q3 2011 net loss widened, so on November 3, 2011 the AIG shares has plunged 49 percent year to date. The insurer's board has approved the share buyback of as much as $1 billion. [117] [edit] Litigation |[pic] |This section needs additional citations for verification. Please help improve this article by adding citations to reliable | | |sources.Unsourced material may be challenged and removed. (September 2008) | In November 2004, AIG reached a US$126  million settlement with the U. S. Securities and Exchange Commission and the Justice Department partly resolving a number of regulatory matters, but the company must still cooperate with investigators continuing to probe the sale of a non-traditional insurance product. [118] On June 11, 2008, three stockholders, collectively owning 4% of the outstanding stock of AIG, delivered a letter to the Board of Directors of AIG seeking to oust CEO Martin Sullivan and make certain other management and Board of Directors changes.This letter was the latest volley in what the Wall Street Journal deemed a â€Å"public spat† between the Company's Board and management, on the one hand, and its key stockholders, and former CEO Maurice â€Å"Hank† Greenberg on the other hand. [119] Death Bet Circa 2010 the WSJ reported that a family sued AIG for alleged complicity in a ‘stranger-originated life insurance' scheme, whereby AIG managers allegedly welcomed people without an insurable interest to take out life insurance policies against others. The case involved JB Carlson and Germaine Tomlinson, and was one of many similar lawsuits in the US at the time. [120] [edit] Accounting fraud claimsOn October 14, 2004 the New York State Office of Attorney General Eliot Spitzer announced that it had commenced a civil action against Marsh & McLennan Companies for steering clients to preferred insurers with whom the company maintained lucrative payoff agreements, and for soliciting rigged bids for insurance contracts from the insurers. The Attorney General announced in a release that two AIG executives pleaded guilty to criminal charges in connection with this illegal course of conduct. In early May 2005, AIG restated its financial position and issued a reduction in book value of USD $2. 7  billion, a 3. 3 percent reduction in net worth. On February 9, 2006, AIG and the New York State Attorney General's office agreed to a settlement in which AIG would pay a fine of $1. 6  billion. [121] [edit] Corporate governance [edit] Board of directors

Pat Barker’s Regeneration Essay

Explore the psychological and moral impact of war on soldiers and civilians in Pat Barker’s Regeneration and Wilfred Owen’s poetry. In the course of your writing show how your ideas have been illuminated by your response to Joseph Heller’s Catch-22 and other readings of both core texts. Pat Barker’s Regeneration, Wilfred Owen’s poetry and Joseph Heller’s Catch-22 can all be categorised as subjective war texts as the main structural principle is not dominated by character’s actions, but rather, this is subordinated by the moral and psychological processes upon those individuals. Here the authors have used war to present a larger theme or moral implication, by centring the literary texts on war’s impact, whether that be a physical or a psychological manifestation of war’s disturbing effects. Barker wanted primarily to focus her novel on the lasting effects of war, specifically WWI in which this novel is set. In order to do this she has used horror sparingly, allowing her to still show the suffering of the characters without detracting from the point of the novel. One of the few exceptions to this rule is Barkers use of vivid flashbacks to make the soldier’s torment apparent. For example, Burns a patient at Craiglockhart War Hospital is left psychologically damaged, after being thrown ‘head-first, on a corpse, whose gas-filled belly had ruptured on impact’. Barker intended that her novel be focused on the psychological and moral processes of war, in order to educate the public as to the extent of wars reach, in an attempt to prevent the continuation of war. The chronological ordering and interlinking protagonists results in a sense of fluidity, where the ease of reading and direct writing style allow Barker to more effective present her argument, altho ugh the novel allows us to draw our own conclusions. Heller’s novel set in WWII focuses on the damage inflicted by the war on the soldier’s minds, both in driving them to madness and in blurring the line of moral duty and conscience. Heller never addresses the psychological impact formally: Instead he broaches the subject using satirical dialogue, whereby he shows the men to have been driven to madness and that it is just accepted  in war time. But this callousness is mocking, as is made apparent by the underlying dark humour, which demands this novel be taken seriously. Heller intensifies the dark mood of the text with snapshots of horrific imagery and blunt observations. The circling non-linear order of the story appears haphazard; this reflects the illogical nature of war. Heller’s structuring, as commented by Russ Allbery, ‘requires that the reader pay close attention to maintain the order of events’: Thereby ensuring that the reader fully engages in the text and is able to appreciate Heller†™s moral implications. Allbery also commented on Heller’s last structural technique, as the ordering ‘does lead to an effective juxtaposition at the climax of the book’. Many people have commented that Owen uses horror in order to shock the reader into the realization of what war can do. A prime example of this is EXPOSURE, based on Owens own experiences it ‘exposes’ the reader to the realities of war. The poem centres on the physical conditions of the soldiers who are ‘exposed’ to the elements, which are so horrendous that the men long to go into battle as they see the bullets as ‘less deadly than the air ‘. The weather is personified ‘His frost’, as the elements are now the enemy that are slowly killing them. It is also a reflection of the mental conditions of war, as Owen details what the men are subjected to we see their progression into despair and probable depression. Owen shows the environment is quick to impact the soldiers as from the first line they have all ready been worn down by the unrelenting winter, ‘our brains ache, in the merciless iced east winds’. The soldiers then become frustrated and anxious, ‘but nothing happens’, ‘we cringe in holes’. Stanza’s s five and six are more heavily punctuated to show the soldiers exhaustion, until ‘slowly our ghosts drag home’. These soldiers may not have been fighting on the front lines, but this is no less serious, as they died slowly and agonisingly. Wilfred was aware when writing EXPOSURE that the public would not have realised the true severity of life in the trenches. Indeed all his poems are in an attempt to educate civilians as to the true horror of war, in a bid to prevent more men being put to death or derangement. The last stanza reiterates just how dangerous and brutal their surroundings were: ‘Pause over half-known faces. All their eyes are ice,’ the weather has taken  all the warmth and life out of them, leaving bodies so disfigured they are unrecognisable. Wilfred Owen’s letter’s home to his mother from the front line during WWII show the inspiration for the traumatic images in his poetry, as he confides in her that ‘It has passed the limits of my Abhorrence.’ In order to focus Regeneration on the impact of war Pat Barker uses Rivers, a psychiatrist at Craiglockhart, as the central character. As Rivers comes into contact with other characters displaying symptoms of having been impacted by war, Barker is then able to follow individual cases fully exploring the lasting impression that war has left. This also allows her to provide a historical structure as Rivers has extensive knowledge about the war and particularly its psychological effects, which he communicates throughout the novel. Rivers then provides a historical structure in another sense. Inevitably, in war literature there is an element of realism due to historical basis, but Pat Barker emphasises this though intertextuality. She interviews historical context such as Rivers’s character, who is drawn from Dr. W.H. Rivers who conducted experiments on nerve regeneration in the early twentieth century, integrating him with her fictional characters. The inspiration for Rivers came from her husband who was a neurologist familiar with Rivers’s work. Indeed, the immediate inspiration for Regeneration came from Barker’s husband. Barker then links directly with WWI through the use of famous persons or institutes associated with WWI such as Sassoon, Owen and Craiglockhart. The first case within Regeneration to be examined was that of Sassoon. Barker shows Sassoon to have been labelled ‘shell-shocked’ in order to discredit his declaration. It is clear from the outset that not all people, specifically those in high command, take war neurosis or in this case, neurasthenia, seriously. Rivers states that ‘Langdon doesn’t believe in shell-shock’, Rivers is Barkers voice, though him she establishes the relationship between the mental institutions and the Government. Throughout the novel emphasis is put on the lack of awareness by civilians as well as officials, so that the reader may gage the importance of understanding in order to prevent these atrocities from reoccurring. Wilfred Owen’s centralisation on the psychological manifestation of wars effect’s, is so that he may proceed to look at a larger theme and moral implication. Owen intended to demonstrate to the public the extent to which these men were pushed, under which conditions they are driven to the verge of madness. Owen’s hope was to rid the public of their ignorance, providing them with the understanding of how crippling our attitudes can be. In his PREFACE he stated that he was ‘not concerned with poetry’†¦Ã¢â‚¬â„¢Poets must be truthful’, by this he meant that he would not write to glorify war, but to warn and try to stop the war. SELF INFLICTED WOUND shows the pressure put on one particular soldier, by not only the horrific conditions of battle and war, where he was forced to undergo the ‘torture of lying machinally shelled’, but the expectations on him to be able to cope with it and ‘show the Hun a brave man’s face’. Owen creates an atmosphere of entrapment, ‘roofed in with creeping fire’, reflective of that that the soldier must have lived in. Contained by the expectation of his family that is made clear ‘Death sooner than dishonour, that’s the style!’ The dangerous conditions in the trenches are emphasised by listing, ‘trench foot, shock’ etc. But ‘death seemed still withheld’, Owen shows the soldier to have become suicidal because of the physical as well as mental pressures of war. The ‘English ball’ in the third stanza is an English bullet; they made different bullets so that they could tell if someone had committed suicide. The two suicides in the poem were not then isolated incidences, if there was a need for this ‘English ball’. In the last verse they bury the soldier with the ‘muzzle his teeth had kissed’, this is perverse because he kisses his killer. Yet there is a sense of relief in the line ‘Tim died smiling’, as he is now free of the pressure of war. The structure of S.I.W. is incongruent and arbitrary, the rhyme scheme and rhythm vary particularly after the Prologue, as he had then experienced the horror of war. Barker’s apt placement of Sassoon’s declaration ‘Finished with the War,’ at the beginning of Regeneration establishes that the continuation of war can be stopped, ‘by those that have the power to end it’. Everything that  follows in novel is consequential to the decisions made by those in authority; because of the introduction the reader is aware that all the suffering shown can be prevented. Barker accentuates the point of this omnipotent leadership condemning the men to the inevitable suffering and mental torture demonstrated by the very existence of Craiglockheart. But more importantly, to the devolvement of power whereby officers and civilians are party to the continuation of war, and so, to the continual sentencing of death and derangement for all those conscripted. This is what Sassoon feels duty bound to protest against; he refuses to ‘be a party to prolong these sufferings’. Sassoon is used both as a symbol of the soldiers condemned to follow orders until they are of no use, and of the officers condemned to sentence the soldier to their inevitable death. Sassoon, along with Rivers epitomises the conflicting moral obligations thrust upon soldiers and civilians alike. Sassoon and Rivers battle with the idea of ‘duty’, a value brought to the forefront in 1914 with the beginning of war. Barker’s protagonists discover that when fulfilling ‘their obligations to king and country’ their duties conflict with their personal duty to individual freedom and belief’s. It has been remarked that Barker cleverly plays these two characters off one another, in order for them both to examine where their duties lie and how best they will serve society. In highlighting their conflict Barker encourages the reader to contemplate what war asks of the individual. Rivers is given Sassoon’s case by the Board to assess Sassoon’s mental state in view of his declaration. But it soon becomes apparent to Rivers that he is completely sane, in their first interview Rivers admits as much to him, ‘of course you’re not mad’. This then puts Rivers in an awkward position, as he realises his paradoxical role as a rmy doctor means that because Sassoon’s ‘a mentally and physically healthy man. It’s his duty to go back, and it’s my duty to see that he does’. He confided in Bryce (a fellow psychiatrist,) that he was ‘hoping’ to find something wrong with Sassoon. Rivers feels as a doctor and fellow sufferer a need to protect Sassoon, but as an officer is forced to send him away into danger. Rivers’s role as a doctor is somewhat conflicting, within the novel he tries to justify or suppress the idea that these men are being sent to him to be cured, and as soon as he helps them  they are being sent away to either come back to him or be killed. The curing process is also at odds with his character, as he finds in his attempt to prevent further suffering he must make his patients recall horrifying memories of their pasts. Burns, one patient in particular, had such an unbearable experience that Rivers no longer had the heart to try to make him talk about it; ‘I can’t make myself think about it’. His duty as a doctor to induce pain in his patients is at variance with his duty as a human to prevent the pain of his friends. Rivers is able however, to help Sassoon in resolving the tension between his duty to his country and duty to his citizens, by encouraging him to return to war for the sake of the soldiers. Although at the end of the novel Rivers clearly sympathises with Sassoon, contemplating that ‘a society that devours its own young deserves no automatic or unquestioning allegiance.’ This mirrors as well as confirms Sassoon’s declaration, ensuring that the reader retain Barkers most important moral. Heller’s Catch-22 is drawn from his own experiences during WWII; in 1942 he joined the Army Air Forces to become an officer and bombardier, much of what he saw is reflective in the novel and much of his consequential views are also present. Heller completed his sixty missions and was awarded an Air Medal as well as a Presidential Unit Citation with his honourable discharge. ‘Honour’ and integrity feature heavily in Catch-22, as Heller reflects on the psychological and moral process upon those impacted by war. It is not as easy for those in Catch-22 to leave their service as it had been for Heller, particularly for Yossarian. Yossarian struggles throughout the novel to rid himself of his duties to his country and is finally presented an opportunity by Colonel Korn. Yossarian has refused to fly any more missions and the Officers are worried that others will follow his example, but if they send him home it will look like a reward. So Colonel Korn proposes that Yossarian be made a Major and sent home as a hero, (provided that Yossarian tells the other men how wonderful he generals are), or they will court-martial him. Yossarian initially thinks that it’s ‘a pretty scummy trick’, as it’s not really giving him any choice, to which Colonel Korn replies ‘Odious’. Here Yossarian is faced with a moral dilemma; in order to save himself he might ‘serve as an inspiration to them to fly more missions’. Yossarian caves,  deciding that the others can stand up for themselves and agrees to the deal. Upon leaving his new ‘pals’ he is promptly attacked by Natley’s whore, who some critics have suggested embodies Yossarian’s conscience and symbolises an attack of guilt. During Yossarian’s stay at the hospital (as a result of the attack), he is able to reflect on the deal and who his real ‘pals’ are. Yossarian’s moral conflict results in him realising that he can’t go through with the deal because it would be at the expense of the other men. He tells Major Danby ‘I’m breaking the agreement’, Danby is horrified but Yossarian turns the tables on him asking how he can work with people like Cathcart and Korn, to which Danby replies ‘because it’s my duty’. Here Heller uses the idea that war results in conflicting moral obligations much the same as Barker does, Danby must help those that misuse power as they rank above him and it is his ‘duty’. Yossarian then discovers the missing pilot Orr actually escaped, Yossarian feels liberated as now he knows how he can leave without causing harm to his fellow soldiers and can help the young girl. When Danby protested saying; ‘your conscience will never let you rest’. Yossarian laughed and replied ‘I wouldn’t want to live without strong misgivings’. Heller intended the reader to see that war is immoral and we should be ruled by our conscience. This is emphasised at the very end where Nately’s whore (a symbol of his conscience) tries to kill him again, but this time she misses as Yossarian has done the right thing. He finally resolves the struggle of his conscience. Within FUTILITY Owen question’s why creation is destroyed with no seeming purpose, in particular the creation of man. Owen questions the destruction of life in order to show how precious it is, yet in war we not only intend to kill our ‘enemies’ but sentence our own soldiers too. Owen hoped to show the moral implications of war and it’s psychological impact on the soldiers. He uses the sun as a symbol of creation, as it ‘wakes the seeds’ and gives life to the earth. But although so much has gone into making man, ‘so dear achieved’, in the end the ‘fatuous’ sunbeams are powerless. Here Owen sets natures power to create life against the futility of extinction. There is a sense of ambiguity in the last line as the poem comes to nothing; this is reflective of the fact that there is no reconciliation for the miracle of creation being laid to waste. Which is mirrored in the first stanza where  the ‘fields unsown’ is used both as a literal example of the life that the dead will never go back to, as well as a metaphor for the tragedy of life left unfulfilled. The last line can also be linked to Owens poem EXPOSURE, as that too comes to nothing ‘but nothing happens’, giving no relief to the soldiers. The tone of FUTILITY is made peaceful through use of natural imagery and soft words such as ‘gently’. The diction is simple and used together with one syllable words shows the deep felt mood, creating a factualness through it’s simplicity. Yet it is mournful and has a sinister undertone, the endless sleep is a referral to death and the continual questioning in stanza two creates a sense of despair. Owen is quick to avoid smoothness by shortening the first and last line of each stanza. He further disturbs the natural rhythm through pararhyme; ‘sun-sown’, ‘once-France’ etc. Pararhyme has been commented to be a favourite among Owen’s techniques; it is particularly apt to describe war due to it producing an effect of dissonance and failure. Pat Barker, Wilfred Owen and Joseph Heller each explore wars processes upon the individual, in particular the psychological and moral impact. The texts do not glorify war, but rather, show the un-sung horror and extent of its true reach. The act of war is forgotten, as the authors place the significance on society’s power a whole and the power of the individual, to prevent the reoccurrence or continuation of war.

Teens and Sex

Persuasive Essay Teens and Sex Word Count: 871 Revised Persuasive Essay Teens and Sex The sexual activity of adolescences in America today is a critical issue that seems to be growing rapidly. With the mass media promoting almost every aspect of sex, teen sexuality has become one of the most important issues in our society. As society has entered into the age of â€Å"sexual revolution† in the twentieth century, children have grown more susceptible to the idea of sex. Regardless of parental guidance and educational programs, teenagers are still very curious.Curiosity about sex and sexual activity is natural, but the lack of concern for consequences and irresponsible activity is dangerous. The increasing issue of adolescent sexual activity could have a powerful affect on their future, which includes sexually transmitted diseases (STDs), teen pregnancy, and even emotional instability. Curiosity about sexual activity is natural, but is the act normal in adolescents? Researchers h ave revealed that teenage sexual activity can expose new levels of intimacy; therefore, valuable lessons may be learned and different perspectives may develop, necessary for the understanding of the act.This knowledge becomes practical later in life when meaningful lifelong commitments arise (Zorn, E. , 1998, July 20). Sexuality is complicated amongst adolescents, yet the knowledge about love, respect, and the experience may result in wiser decisions as adults. The fact is adolescents are looking to the adults in their lives for guidance, restrictions, and values. Teenage sex is normal; however, sometimes the act is a mistake and could change a life forever. This year 3 million sexually active teens, approximately 25%, are infected with a STD.About one-quarter of all new cases, occur in teenagers (Mayer, B. , 2005). The statistics indicate that sexual transmitted diseases infect over 8,000 teenagers everyday. STDs in sexually active teenagers produce astonishing statistics, which sh ould be used in every phase of the educational process. With statistics at hand and deadly viruses on the rise, teenagers and their educators need to concentrate on the studies that are available to them. In 1994, the Journal f the American Medical Women's Association conducted a study which illustrated that, out of 25 reporting states, 193 teens between the ages of 15 and 19 had contracted the Human Immunodeficiency Virus or better known today as the HIV virus. The same study was conducted again in 1998, with the same 25 reporting states and showed that 418 teens had contracted this fatal virus (â€Å"A Really Scary Adolescent Worry: HIV. †, 2001, August 6). This particular study demonstrated that the number of infected teens had more then doubled within a four-year span.This article is a freighting source that could keep teens consciously considering their decisions regarding sexual activities. There is a concern with not only STDs but also a concern for â€Å"kids raising kids†. Sexually active adolescences take a risk of becoming parents themselves. Teen pregnancy can complicate a young girl’s future hopes, dreams, and goals. A young girl who has a child before graduating from high school is less likely to complete school than one who does not have a child (Annie E. Casey Foundation, 2002).Anyone without a high school education in today’s society will find that obtaining a job with good wages and benefits is difficult. Young parents often have to depend on the means of others for the help needed in raising their children. Whether the support needed is financial or emotional, someone has to compensate for the mistakes of kids having kids. Social welfare, a government-funded program, can be an alternative for young parents with financial barriers. Looking at the broader spectrum and statistics, we may find that American citizens are likely to pay for the undereducated and underprivileged adolescences with children.Society needs to protect teenagers from the risk of premature parenthood, and we need to protect the children they would struggle to raise. In addition to its role in promoting teen pregnancy and the current epidemic of STDs, early sexual activity is a substantial factor in undermining the emotional well-being of American teenagers (Rector, R. , Johnson, K. , & Noyes L. , 2005). Sexually active teens have an emotional instability, which could be one cause of teen suicide increases.Most sexually active teenagers have a sense of regret in their decision to have intercourse with the majority wishing they had waited until they were older. Depression amongst sexually active teens could have come from the thought of multiple partners, a STD that they had contracted, or an abortion a young girl had to go through. There is a variety of causes for depression in teens, but sexual activity is one cause that with education, parental guidance, and abstinence could be reduced. Sexual activity in adolescences is an essential concern that society needs to address.With the masses behind the promotion of sex and the miscommunication about sex to teenagers gives society a task that seems impossible. Educational programs that promote contraception are not enough with teenagers’ intense interest. Contraception will not prevent the physical and psychological effects surrounding sexually active teens. Several ways to limit sexually transmitted diseases, pregnancies, and emotional instabilities in adolescents today is not only powerful parental reinforcement and intense sexual education programs, but also encouraging the idea of abstinence.When exposing all three preventative elements, adolescents should become more aware and reluctant to their sexual surroundings. References Annie E. Casey Foundation. (2002). The facts of teen pregnancy: An overview. In M. H. Immell (Ed. ), Greenhaven Press, 7. Retrieved December 1, 2005 from Opposing Viewpoints Resource Center database. Maher, B. (2005). Ab stinence is the best message for teens. In C. Watkins (Ed. ), Greenhaven Press, 1. Retrieved December 1, 2005 from Opposing Viewpoints Resource Center database. A really scary adolescent worry: HIV. 2001, August 6). U. S. News & World Report 131, 6. Retrieved December 1, 2005 from Opposing Viewpoints Resource Center database. Rector, R. E. , Johnson, K. A. & Noyes, L. R. (2005). Sexually active teens are more likely to commit suicide. In J. Woodward (Ed. ), Greenhaven Press, 10. Retrieved December 1, 2005 from Opposing Viewpoints Resource Center database. Zorn, E. (1998, July 20). Premarital teen sex is normal. In T. L. Roleff (Ed. ), Greenhaven Press, 15. Retrieved December 15, 2005 from Opposing Viewpoints Resource Center database.

Critical evaluation of the impact of the global(focus on USA) Coursework

Critical evaluation of the impact of the global(focus on USA) financial crisis on worker migration - Coursework Example The property bubble in the Spanish economy was responsible for the high fiscal debt in most of the developed nations in the world. At around 2009, severe financial crisis wedged the economy of U.S.A. The terms of economic affairs become highly juggled at this point of time. However, the financial crisis created a strong impact on the workers migration. It was found that many workers working in the urban sector of U.S. migrated back to their home lands as a result of job losses. The in-migration of the foreign workers in U.S.A was controlled and the government started to offer special incentives to the existing workers to take voluntary retirements from work. This initiative was taken by the government to increase the American labour force in the long run by almost 5% by 2033 (Porter, 2013). As a result there were many incidents of disturbances in the economy due to the rising number of job losses. It was found that the gross unemployment rate increased by almost 4% in U.S.A. during t he crisis. The information on the basis of which the literature review will be written would be based on secondary data sources. Any information collected from the primary data sources would not be used in the context of the literature review (Hakim, 2000). ... In the context of the literature review, the researcher would be identifying the common themes and differences of the previous research works. Despite being completely narrative in nature, the literature review would be focussed, analytical and critical in panorama. Thus, the literature review of the paper would throw a light on the views of the scholars on the concerned topic of discussion and would also include the researcher’s own perceptions (Burns, 1997). Research Philosophy The research paper would be using quantitative and qualitative analysis methods, thus the analysis would be made on the basis of interpretive approach (positivist approach). The main objective of the paper would be to analyze the impact of worker migration in the economy of U.S.A. after the financial crisis. This philosophy of the paper is to understand the consequences of the impact. Thus, the research problem is symmetric and non linier in nature. Research Approach Figure 1: Inductive approach (Sour ce: Shaheen, n.d.) As stated in the above picture, the researcher would be conducting the research on the basis of inductive approach. The reason for preferring inductive approach is because it will help the researcher to exchange observation into theoretical conclusion, thus is a robust method of analysis. Research Strategy Figure 2: Research Strategy (Source: Saunders, Lewis and Thornhil, 2009) Sustain research objectives with the trouble statements. Determining the sample space, size and location. Determining the price connected with the research development and formulate the time schedule Demeanour research with the help of primary and secondary sources Arranging the data in organized manner Qualitative and quantitative analysis. Construing the data properly to give it a inflexible

CHild abuse Research Paper Example | Topics and Well Written Essays - 1500 words

CHild abuse - Research Paper Example It’s an underreported crime, usually due to family contingencies involved. Child abuse- A term that is associated with dire pain and agony for the child. It’s not just a harm that is inflicted on the individual or the familial basis, but if we go and look out of our â€Å"little world† scenario, we find that it’s a larger problem with a larger consequence base. Children who grow up having such experiences, in turn are more likely to inflict abuse on their own children. This becomes a vicious circle, which lingers on and on. It not just has its effect in the immediate family; it explodes and infects the society altogether with crime, drugs, disease and callousness. It’s a state of emotional, economic and sexual maltreatment meted out to a person below the age of eighteen and is globally prevalent phenomenon. According to WHO :† child abuse or maltreatment constitutes all forms of physical and/or emotional ill-treatment, sexual abuse, neglect or negligent treatment or commercial or other exploitation, resulting in actual or potential harm to the child’s health, survival, development or dignity in the context of a relationship of responsibility, trust or power† (World Health Organization, 1999). Different connotations may be attached with â€Å"child abuse† in different cultures and socio-economic background. There are majorly 4 types of child abuse inflicted upon children. The WHO defines them as: 1. Physical abuse – physical abuse is inflicting of physical injury upon the child. This may include burning, hitting, punching, shaking, kicking, beating or otherwise harming a child. The parent or the caretaker may not have intended to hurt the child. It may, be the result of over-discipline or physical punishment that is inappropriate to the child’s age. 2. Sexual abuse – sexual abuse is inappropriate sexual behavior with the child. It includes fondling a child’s genitals, making the

How the 22nd amino acid is produced Essay Example | Topics and Well Written Essays - 750 words

How the 22nd amino acid is produced - Essay Example Even though it’s clear now that the amino acid is a product of enzymes involved reaction with two molecules of lysine, it’s important to know that the researchers are investigating if the molecule might be having complexity in its origin. Pyrrolysine is said to be very difficult to find in organisms and currently only a dozen of organisms posses it, interestingly its discovery was made in 2002 as being genetically encoded by methanogens; microbes that produce methane. The fact that it was first identified in the microbe have made the scientists to look back on the genetic code evolution.Pyrrolysine is now among the amino acids,22 in number that are used for protein synthesis. Protein synthesis involves the successive processes of gene transcription to messenger RNA that comes from the DNA molecule; it relays the genetical information from the nucleus to the cytoplasm where transport and ribosomal RNA carries out the process of translation to produce the required protein from a collection of three amino acids called codons (Kizycki, 2011). The understanding of how the amino acids are made, that is; its biosynthetic pathway provides an in depth knowledge of how amino acids productions can be made. How rare the amino acid is can also be of used (Kizycki, 2011) (Zhang, 2011) (Green-Church, 2011) to manipulate proteins as in the biomedical research, with its mode of synthesis well understood scientists can mimic the procedure to have mass production of other related amino acids for research purposes. The amino acid production process Lysine, other amino acids and some specific enzymes were combined and were anticipated that an intermediates would be produced, the intermediate is an amino acid that is produced during the biosynthetic process, the lysine were labeled so that when mass spectrometry was used it became heavier than the normal one, incidentally one signal produced by the instrumentation had a deviated mass that was attributed to the intermed iate. The biosynthesis of the new amino acid however comes with a surprise that its only precursor molecule is the other amino acid called lysine; this is also affirmed by the Microbiology professor Joseph Kizycki at the Ohio State University that they were not seeing the weird molecule but only the regular pyrrolysine from the two different amino acid they expected.pyrolysine was observed easily as it appeared with labeled lysine (Zhang, 2011). The process to arrive at the amino acid is considered to be very simple as it only involved only three chemical reactions though not all the chemical reactions were known or observed before. What is amazing with the new discovery is that only three enzymes and two molecules with the same origin constitute one molecule with a completely different from the initial molecules used to make it. In the molecule, a portion resembles the precursor completely, but when you compare with anther portion, enzymes are able to link and brings out a complete ly different molecule not been seen at all. The inconsistent nature of the pyrrolysine necessitated the use of mass spectroscopy to precisely analyze the mass of the particles that constitute it. The use of mass spe

Macro economics Essay Example | Topics and Well Written Essays - 1750 words

Macro economics - Essay Example Such announcement made by British Prime Minister gave rise to multiple speculations regarding the probable effect of such referendum on UK and the world economy. As no member nation has exited the union prior to this declaration of referendum, the degree of speculation has become more prominent. Recently, Mr. Cameron has downplayed the possibility of an early referendum on the ground that they will need more time to present better negotiations in terms of acquiring more freedom in trade relationships and other regulations. Accordingly, he announced that it will take at least till end of 2017 to draw a conclusion on EU and UK relationship. However, significant arguments have already been originated in support or against of such referendum (â€Å"Viewpoints: How experts see UK role in EU†). The paper will explore all such pros and cons of UK leaving European Union as identified by economists and politicians. UK holds a significant part in influencing regulations and policy formulations of European Union. However, recent measures taken by UK gave rise to the question whether the country should remain a part of EU or not. In the next segment, the arguments in favor of UK to remain as a part of EU will be analyzed. It has been observed for a long time that many European countries such as Switzerland and Norway are operating successfully in the global market without participating in EU. Both of the countries operate as single markets and do not follow any regulations or legislations incorporated by European Union in their national activities through agriculture, service sectors, home affairs etc. The countries are liable to take their own decisions regarding international trade and are not restricted by imposition of regulations by any third party. UK, in order to enjoy such freedom in enhancing their trade relations with all the emerging and economically advanced countries in the world, must come out from EU (â€Å"House of Commons†). Such

Federal Protective Service (FPS) Research Paper

Federal Protective Service (FPS) - Research Paper Example Today, the question that remains is whether the DHS has served its role by ensuring high security standards, or if it has failed to perform its role as a security body (Haulley, 2005). The Federal Protective Services (FPS) is under the DHS, and serves the purpose of providing security and services of law enforcement to the federal buildings, property, facilities, and other state assets. In order to serve this purpose, FPS has a mission statement that emphasizes their purpose and objectives, which are mainly concerned with security. FPS has therefore, employed close to 1,300 employees. These comprise of police officers, criminal investigators, support personnel, and law enforcement security officers. In addition, FPS has contracted approximately 15,000 security guards, who are in charge of the security of more than 9,000 buildings and their occupants (Haulley, 2005). In order to offer protection and security to federal facilities and personnel, FPS employs a variety of security measur es, found in its physical security program. These include installation of magnetometers, alarm systems, as well as entry control systems, which are operational in federal buildings every day. In addition, the FPS provides uniformed police response to security concerns, and provides follow-ups on such concerns through further investigations. Different seminars on crime prevention are offered to a variety of agencies by the FPS, depending on their organizational needs. FPS has hoped that all these will propel it to becoming a world-class security agency (Goldstein, 2009). In providing buildings security and protection of other critical infrastructure, the FPS uses strategies that enable detection, deterrence, disruption, and investigation of threats using authorities concerned with law enforcement. Additionally, FPS mainly relies on its risk management program, which is supposed to be set to the standards of Interagency Security Committee and the National Infrastructure Protection Pla n. Additionally, FPS ensures effective communication and coordination among its law enforcement personnel, by using the MegaCenter, its central communication point (Goldstein, 2009). Although the FPS works to ensure the security of federal buildings, it has not come up with comprehensive measures to address the security concerns in these buildings. For instance, the software FPS has adopted for security inspections is ineffective in achieving high security standards. The Modified Infrastructure Survey Tool (Mist) is a security software that FPS used to inspect federal buildings and expose any security threats. This included simplistic tests, which were then uploaded in a centralized database, after recommendations from the software. This software was unreliable, as it did not allow for comparison of security risks, between different federal buildings. Additionally, this software cannot address terrorism threats, since it lacks the capability to factor their potential consequences (G oldstein, 2009). Apart from Mist, the FPS developed another system called the Risk Assessment and Management Program (Ramp), which would be used to test federal buildings for security threats, but equally failed. In its initial use, this software caused the mysterious loss of recorded inspections from its database. In addition, ramp could not connect to its servers in remote areas. Therefore, the inspectors lacked a way of ensuring that the

World Trade Organization Essay Example | Topics and Well Written Essays - 500 words

World Trade Organization - Essay Example As an business community organization, its main focus is set upon creating a uniform set of trade rules between nations that will ensure a smooth, efficient, trustworthy, and assured business transaction among member nations. As an advocate of free and global trade, WTO gives consumers the opportunity to have a greater market for demand and choice of various products as imported from various nation suppliers. The end result, as the organization envisions it, is supposed to be a more balanced, prosperous, peaceful, and accountable economic world. Balance and accountability in the economic world... That statement carries a tremendous weight in the WTO. As such, the organization also functions as a dispute settler among its member countries in relation to their trade agreements. To quote: Trade friction is channelled into the WTO's dispute settlement process where the focus is on interpreting agreements and commitments, and how to ensure that countries' trade policies conform with them.

A Correlation between Unequal Power Relations and the Way Language is Assignment

A Correlation between Unequal Power Relations and the Way Language is Used - Assignment Example The second of the three stages is all the more important because it has a lot to do with one’s spontaneity and judgment which ultimately become the major deciding factors in making the communication successful and effective. That is how the world draws the line of distinction between ‘great orators/authors’ and the mediocre and the bad. The choice of words, however, is a function of one’s instincts, emotions, and needs. The desire to dominate, to control, to feel powerful is a universal instinct that defies the boundaries of time and space. It is, therefore, not at all surprising that this basic instinct, or rather a base instinct, successfully manages to creep into all human transactions and manifests itself, more noticeably in the process of verbal communication. But, at the same time, the need to ‘get things done’ is also a matter of uppermost concern, and its importance cannot be understated. It is this factor that has the power to suppress the urge to dominate; it makes one willing to subordinate himself in a transaction. In any given instance, it is either the urge to dominate or the need to subordinate that finally stays, and it is decided by the prevailing equation of power in the given context. It boils down to the conclusion that â€Å"our words are never neutral; they carry the power that reflects the interests of those who speak or write.† (John Fiske, 1994; Fowler, et. al., 1979) An interesting quality of dominant discourse is that it usually represents and reinforces the interests of the elite section of the society. Professor Sue L. T. McGregor, in Critical Discourse Analysis – A Primer, says, â€Å"One of the central attributes of dominant discourse is its power to interpret conditions, issues, and events in favor of the elite.†   

How can microeconomics help small business owners Essay

How can microeconomics help small business owners - Essay Example Microeconomics derived from the Greek word â€Å"mikros† which means small, deals with a part of the economy rather than the whole. It deals with total output, total employment, total spending but in relation to single firms and single households. Microeconomics seeks to understand the individual consumer, the buying decisions that are made at this level and the different factors that affect the consumer behavior. The subject matter of microeconomics is mainly commodity pricing, factor pricing and welfare theory. Commodity pricing entails how prices of commodities are affected by market forces of demand and supply. The price of commodities usually determines the demand of the products by the consumer. Factor pricing are the determination of rewards for the different factors in the production process that include land, labor, and capital. These earn the business rewards in terms of wages, rents, interest and profits. Welfare theory explains the optimum allocation of resources in order to maximize utility. It is therefore crucial for small business owners to understand more about the consumers and different factors that affect the spending behavior of consumers such as price of products, income and supply Any business whether start-up or on-going needs to undertake a research of the market and actually draw up its business plan before starting operations. This gives the business its objectives and goals and provides sense of direction in the market. The following are some of the ways in which micro economics aids small business owners achieve their business goals and objectives: Understanding the individual behavior of the consumer. Consumer decision making is the most critical aspect of the micro economics as consumer spending makes up the highest part of the economy. Consumers after spending usually save surplus invest and put away for future use. Microeconomics determines how much a household save, for how long and

Do Childrens Feet Grow with Age Essay Example for Free

Do Childrens Feet Grow with Age Essay Newman (2011:35) states ‘older kids have bigger feet’. This experiment will explore through an investigation whether childrens shoe sizes do get bigger as they get older. In order for this to be proven, data needs to be collencted, this will be done so by going into a local school and verbally asking pupils and their parents what shoe size they take. The main objective of this experiment if to find out if the hypothesis is correct or incorrect. Aim The aim of this experiment is to determine whether childrens shoe sizes get bigger as they get older. The hypothesis will be tested by completing an experiment, then by examining the results it will be seen whether the hypothesis was right or wrong. Hypothesis – As children get older their shoe size increases Null Hypothesis – As children get older their shoe size does not increase. Method It was decided to collect the data in form of a simple table. This was decided because only certain information was needed about an age and shoe size, therefore a questionnaire would not be suitable. Also, considering the investigation was mainly aimed at children, the table was the simplest way to collect the data. It was decided to ask the parents of the younger children what their shoe size was as it was assumed most younger children would not know their shoe size. Design and Materials The type of study completed is one which gives an outcome of qualitative data. Furthermore, this can then be shown to be ‘continuous data’, where the data can fall anywhere over a certain range and the scale is only restricted by the accuracy of measuring, in this circumstance, measuring children’s shoe sizes (Mathematics Enhancement programme 2000).

Benefits of the Eclectic Paradigm

Benefits of the Eclectic Paradigm The usefulness of the eclectic paradigm as a framework for combining and relating alternative theories of international business, and in coping with changes over time in the practice of international business Introduction The eclectic paradigm, namely the OLI paradigm was put together by the economist John Henry Dunning (1927-2009) in the late 1970’s. Dunning’s early research focused on American owned affiliates in the UK and their higher productivity compared to their local competitors. He wondered how and why these firms were able to compete locally with indigenous UK firms and started to raise questions about the advantages of multinational firms as an outcome of their activities abroad. He identified certain firm specific advantages and also advantages derived from the country of origin (Dunning, 2001). These are first two components of the later assembled paradigm, the O which refers to Ownership advantages and the L which refers to locational advantages. These early works and the early identification of the O and L and their mutual interaction are initially reflected in the book American Investment in British Manufacturing Industry (Dunning, 1958). This stream of research continued through the 1960’s when Dunning was working on American firms in Europe. Later during the 1970s, influenced by Buckley and Casson, Dunning started to address transaction cost explanations in an internationalization perspective (the I component of the paradigm) in addition to the previously identified O and L advantages. He was concerned about why firms decided to generate and exploit their specific advantages internally rather than through the open market forces. This broadened his perspective and articulated more clearly the early view he had on the O and L components. And by the time he was putting together the rest of the paradigm at the end of the 1970 ´s, he looked back to the 50 ´s and 60’s and the theories of Vernon, Hymer and others and interpreted them from within this framework and elaborated on how their ideas were expressed from the eclectic paradigm. Intellectually, he brought everything together, not just contemporary but also past theories, bringing all these explanations together in some sort of rubric that allows to connect the m. Since then, the eclectic paradigm’s simplicity and yet its thoroughness smoothly integrates international business theories and allows researchers from different fields and disciplines to systematically explain the growth of multinational activity (Cantwell and Narula, 2001). The Eclectic Paradigm Revisited The eclectic paradigm itself is not an explanation of the MNC rather it helps explain the level, determinants and patterns of the foreign value added activities (international production) of firms, and or countries. The paradigm offers a framework from which an explanation can be obtained. It is not itself a predicting theory but it is a way of connecting different theories which can be then used to help understand different types of foreign production according to their specific contexts and motivations (Dunning, 2001). The Eclectic Paradigm and its OLI components have gone through different revisions and are defined as follows: O: Ownership advantages. These are firm net competitive advantages that companies from one country possess over those firms from other countries when servicing a specific market. L: Location advantages. The degree to which companies decide to locate abroad value added activities. These value added activities can be the result of internalizing. I: Internalization. The degree to which companies add value to their output by identifying as more profitable to internalize the generation and exploitation of their ownership advantages rather than through the open market. (Dunning, 2000, 2001; Ietto-Gillies, 2012) An interesting aspect of the OLI elements is that they are not independent from each other but that they interact. For example, the value added activities generated by locational advantages feed back to the O advantages. That is why an often misunderstood and controversial element is the O, because of the fact that it is called ownership, scholars like Rugman relate it only to firm specific advantages. However, the O also refers to advantages that come from the institutions of the country of origin (home country). In other words, what Dunning (2001) initially meant by (O) Ownership referred to the nationality of ownership as opposed to the ownership of assets by a firm. It was later on that Dunning acknowledged and expanded the Ownership advantages to include firm specific and other types of advantages such as the ones resulting from engaging in foreign production. Another reason why this is so important is because it does not necessarily imply that the MNE has to be legally defined by the ownership of assets, but if instead there is an international business network that is not entirely owned, it could still be consistent with the notion of capabilities generated within such a network associated with firms of a certain nationality of origin. On the other hand the L element has to do with host country advantages and it is just not necessary to compare the host with the home but different host countries with one another in determining where the firm goes to produce. OLI: Combining and relating IB theories The eclectic paradigm comes from other international business theories which are themselves influenced by economic and organizational theories. The paradigm draws from theories of the individual firm such transaction cost economics (internalization) and market power theories and their relationship with markets and integrates them with macroeconomic approaches to foreign production such as the product lifecycle theory (Cantwell and Narula, 2001). This encompassing aspect of the paradigm has brought many criticisms, one of the most popular ones calls it a â€Å"shopping list of variables†. Dunning (2001) responded to this criticism by clarifying that each variable of the paradigm is constructed based on well-known and accepted economic and organizational theories. In addition, he clarifies that the objective of the paradigm was not to explain all kinds of international production but to offer a framework that helps organize a methodology that can lead to a better explanation of different kinds of foreign production. Vernon’s product lifecycle theory is the most inherently dynamic or evolutionary in character of all the theoretical approaches of the paradigm. Hymer’s market power and Buckley and Casson internalization theories were limited to the period in which they were writing about them, during which an evolutionary perspective of the MNE was not yet explored. On the other hand the product life cycle theory was contemporaneous to the conditions of the 1960 ´s and therefore Dunning included this evolutionary character in the paradigm. This became an important part of the paradigm in the sense that it gave it an evolutionary and dynamic perspective on how firms grow over time, which is an integral part of the way the eclectic paradigm should be interpreted and used (Dunning, 2001). In addition, from an evolutionary approach, the Eclectic Paradigm’s internalization advantages are attributable to the conditions of improved organizational learning and technology creation, rather than to the conditions for a more efficient cost-minimizing organization of an established set of transactions. This opens up the possibilities of alliances in order to increase ownership advantages through cooperation. This takes the paradigm beyond a basic transactions costs perspective and expands the types of ownership advantages, from advantages in line with Bain -which assumes advantages to exist be prior to going abroad- to cooperative and interdependent generated ones (Tolentino, 2001). The Future of the Eclectic Paradigm in IB The eclectic paradigm has not only faced criticisms but also faces the challenges of an increasingly changing international business environment due to globalization and technological advances. In the last decades MNC activity has increased both in extent, intensity and form. There is also increased global interconnectedness and interdependence which makes inter firm alliances more common and necessary (Cantwell and Narula, 2001). RD is more complex and costly also increasing the way it is undertaken. Asset exploiting FDI is still present but asset augmenting and knowledge seeking FDI are increasingly important. All of this has created new ways of performing cross border activities and different strategies that MNCs use to pursue them. Additionally, the field of IB has also evolved. It has moved from a market driven view to a more knowledge driven one. Moreover, the level of analysis has changed as well. In the 1990’s there was a shift from the macro level approach in which countries were the unit of analysis to a more micro approach with the firm as the unit of analysis. Lately the field is going even more micro by also paying increasing attention to behavioral (individual) considerations and therefore allowing it to use the individual as the unit of analysis. Actually nowadays, the direction of the field International Business studies is becoming more multilevel in character, allowing for different levels of analysis including the countries, firms and individuals. The field has also become more interdisciplinary by drawing from other disciplines such as sociology, anthropology, biology, geography and history. Therefore taking in to account all these changes the following question arises: Is the eclectic paradigm going to hold with the external changes related to globalization, technological change and the new directions in the field of international business? I believe it will. So far the paradigm has held for the last two decades (since the 1980’s) and it seems to be getting stronger as a guiding framework in international business studies. All its components are articulated in a way that allow all the aforementioned changes. For example the Ownership component has always been relational in character and has included different interactions and levels of analysis (Ietto-Gillies, 2012). Therefore this does not present a threat to the paradigm but it actually increases its relevance because it allows for multilevel analysis by combining the different units and elements of analysis and allowing them to interact. And even though there are not many discussions of the eclectic paradigm today, the paradigm is increasingly relevant now in relation to where the international business field is going. Additionally, the paradigm has successfully embraced phenomena such as Alliance Capitalism, technological accumulation, international networks and dynamic capabilities, by which firms cooperate and mutually increase their ownership advantages. These are areas of research that according to the critics are not addressed by the paradigm. Moreover, the Location element of the paradigm increases in importance in the sense that subsidiary location has become important because they are embedded in their foreign locations and can benefit from their networks and national innovation systems and therefore adding value to the MNC. On the other hand, dynamic capabilities are created not just within firms but by interacting or cooperating with other firms and actors (Knowledge enhancing technological dynamism) and they become part of the O advantages. These ownership advantages also come from the interaction with locations with which initial ‘O’ advantages are crucial for the development of absorptive capacity. Dunning argues that capabilities or ownership advantages are a condition for internalizing. This is a dynamic view in which advantages are an evolutionary concept. Critics say that some strategic considerations may not be covered by the OLI and that routines and processes should be added (OLMA). However, even though the paradigm does not specifically address routines and processes it addresses the ownership advantages that may result from them. Every day problem solving activities create unique core capabilities that are idiosyncratic of each firm, therefore giving them or enhancing existing ‘O’ advantages. This means that the OLI paradigm still holds for strategy considerations, especially in terms of capability development (in terms of O). Also in some way in ‘L’ with economies of location and experiences of location. Finally also with the interaction between O and L which creates a complex interaction at different levels and interactions. For example in the case of subsidiaries, competence creating subsidiaries actually enhance Ownership advantages therefore giving strength to the argument that O advantages are not only originated in the MNE ´s home country but also arise in subsidiaries as well. Today we can apply this also to international business networks, so rather than a legal definition of the firm, the MNE per se, the OLI paradigm can used as a method to analyze international business networks and also the MNE firm as a strategic coordinator of such networks. In other words the subject area moves on but the paradigm remains relevant, partly because of the degree of flexibility which is built in some of these characteristics, especially in the Ownership advantages, which is by the way, the most important component of the paradigm, because it is the one that ties everything together, since it is the properties of learning that define the location or the transactional network basis of the firm. Conclusions The objective of the eclectic paradigm is not to explain the multinational firm but the level and pattern of foreign value added activities of firms. It helps explain not only the initial act of foreign production but also its growth. The eclectic paradigm overcomes the limitations of partial theories of international production and provides a holistic framework in which existing alternative and complementary theories of international production coexist (Tolentino, 2001). In the international business field a systemic approach is now more needed than ever, in addition it must be inherently interdisciplinary. At the beginning the eclectic paradigm had a more descriptive approach. It was originally developed by integrating some international business theories that come mainly from economics. Theory of trade in Vernon ´s case, theory of the firm of the industry in Hymer ´s case and again theory of the firm in Buckley and Casson’s case. Nowadays it is relevant to combine theories taken from different disciplines. Different ways to think about the world, new perspectives. That is why a systemic approach is needed. The eclectic paradigm is now it is an umbrella that handles a range of theories, a framework that enables the understanding of how these theories are tied and work together. Therefore what is happening is that the discipline is moving away from some of the earlier theories that were essentially theories of discrete individual choice, s uch as whether to export or not, or whether or not to locate production abroad, and in the case of having located production abroad, whether to license to and independent firm or produce internally with through a subsidiary. Those were firm level choice decisions, but if instead a system is wanted and the knowledge on how it evolves through time. Therefore the eclectic framework is precisely the right way to approach a complex system, because a paradigm like the eclectic paradigm provides a broader context, providing progressive interaction between different factors and actors giving it present and future relevance. References Cantwell, J.A. and Narula, R. 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