Aspect Of Contract And Negligence For Business The WritePass Journal

Aspect Of Contract And Negligence For Business Abstract Aspect Of Contract And Negligence For Business ). The first legal element refers to the inclusion of an offer, which indicates one’s willingness to enter into a specific bargain. In this case, an offer is made by Phil, the Chief Executive Officer of Zulu Aviation Ltd. Another important legal element for the formation of a valid contract is associated with acceptance, which should indicate an agreement to the terms initially made. Phil’s offer of  £100,000 for reserving the Airbus 321 has been accepted by Joseph, EMA’s Managing Director. The third significant legal element showing the validity of the discussed contract is the availability of a legal purpose (Knapp et al., 2012). It is clear that the contract’s purpose is legal because it is based on the sale of a second-hand Airbus 321. Furthermore, mutuality of obligation presents a situation in which both parties ensure mutual understanding to the expression and form of their agreement. In other words, a common expectation is that the parties need to agree to the same thing, which is described in the same manner, and at the same time. These legal conditions have been met by both Phil and Joseph. Consideration indicates another essential element for the formation of a valid contract (Poole, 2012). Legal binding needs to be supported by valuable and realistic consideration. In the case study of EMA, Phil ensures his consideration by claiming that he will pay  £100,000 to EMA if the latter promises not to sell the Airbus 321 to another buyer for the period of five days. The importance of these components reflects in the validity and legality of the contract to be established, and if any of these conditions are non-present, it is virtually impossible to form a valid contract (Knapp et al., 2012). Impacts of Different Types of Contract   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   When discussing the specificity and implications of contract law, it is important to consider the impacts of different types of contract, such as bilateral and unilateral contracts, express and implied contracts, void and voidable contracts, and distance selling contracts (Hillman, 2004). Bilateral contracts are commonly used in daily life, as they represent an agreement between at least two individuals or groups. Unilateral contracts are associated with an action undertaken by one individual or group alone, as this type of contract allows only one individual to involve in making a specific promise or agreement (Elliott and Quinn, 2003). In express contracts, a promise is stated in a clear language, while in implied contracts, the focus is on presenting behaviours or actions which lead parties to believe that a certain agreement exists (Hillman, 2004). Void contracts are contracts that cannot be enforced by either party. According to law, void contracts are perceived as if they had never been established. The main aspect of void contracts refers to a situation where one of the parties performs in an illegal manner (Hillman, 2004). Therefore, void contracts cannot be conducted under the law. An example of void contracts can be found in Dickinson v Dodds [1876], where there is only an offer made and was intended to be an offer solely because it did not result in any legally binding agreement. There was no consideration ensured or promise and thus was judged non-binding. Although in the case of Shuey v US [1875] the revocation is prominent as the offer is, the type of offer is considered non-binding. On the other hand, voidable contracts are based on enforcement and hence they are valid (Elliott and Quinn, 2003). In general, only one of the parties is legally bound to such contracts. Yet, the unbound party has the right to cancel the contract and thus the contract automatically becomes void (Knapp et al., 2012). This implies that voidable contracts represent valid, legal agreements. Distance selling contracts refer to the main responsibility assumed under the law to protect consumers while they conduct shopping activities online. Such regulations also occur in situations where consumers enter into other contracts, as they are at a distance from the supplier (Hillman, 2004). Special protection is ensured to customers on the basis that they are unable to meet directly with the supplier and check the quality of goods and services that are offered for sale. Distance selling regulations have been enforced in the UK since 2000, but it is essential to note that they are inapplicable to contracts between businesses (Elliott and Quinn, 2003). The main legal effect of these regulations is that they enable consumers with the right to receive accurate and proper information about the supplier, including the products and services that are provided for sale. In addition, consumers tend to receive a written confirmation of such information, which makes the regulations credible . There is also a cancellation period of seven working days in which consumers have the right to withdraw from the contract. Individuals receive protection from different forms of fraud associated with the option of using payment cards (Knapp et al., 2012). Case Study of EMA In the case study of EMA, the focus is on determining whether the two parties have formed a valid, legal contract. As previously mentioned, the parties applied each of the essential legal elements for a valid contract, including offer, acceptance, legal purpose, mutuality of obligation, and valuable consideration. The terms of the contract between EMA and Zulu Aviation Ltd are clearly specified. However, it can be argued that the type of contract presented by the two parties is express considering that the promise for forming a legally binding agreement has been stated in a clear language verbally, via phone (Poole, 2012). Despite the precise form of the binding procedure, the validity of such express contract is apparent. There are strictly claimed promises on the behalf of both sides: the first party needs to pay a particular amount of money to guarantee the sale of the Airbus 321; the other needs to keep his promise not to sell the Airbus 321 to another buyer for the next five day s. It can be concluded that such initial conditions of forming a legal contract have been met (MacMillan and Stone, 2012). Simply put, there is an offer followed by an acceptance by EMA’s Managing Director. An example of the complex transaction that took place between EMA and Zulu Aviation Ltd can be found in the case of Byrne v. Van Tienhoven (1880), which presents relevant inferences on the issue of revocation with regards to the postal rule. In the case of EMA and Zulu Aviation Ltd, the phone rule (considering the phone conversation between Phil and Joseph) may not apply in revocation. In other words, while a phone conversation to arrange a contract may simply indicate a valid acceptance, it is most likely that the court will rule that it does not count as proper and valid revocation (MacMillan and Stone, 2012). Moreover, there is a stated legal purpose that legally binds both parties to form a valid agreement. They are focused on keeping their promise, which is an initial requirement for the establishment of a legal contract. It can be indicated that the objective of the contract between EMA and Zulu Aviation Ltd is to achieve a legal purpose. Thus, the condition of a creating a purpose for the existence of a binding contract has been applied in the case (Poole, 2012). The mutuality of obligation is also evident considering the motifs and promises ensured by both sides. There is a strong sense of mutual understanding on the behalf of each party regarding the expression and specificity of their agreement. In addition, there is an objective standard being applied in the case in terms of determining what the parties have precisely said in the process of forming their agreement (Knapp et al., 2012). The fact that the offer is clear and definite is indicative of both parties’ acceptance o f the terms outlined in the offer. There is a valuable consideration illustrated in the statement of Phil, who is ready to pay  £100,000 in case EMA’s Managing Director fulfils his promise. Therefore, this case study illustrates the application of an express contract law (MacMillan and Stone 2012). Implications regarding the Supply of Mobile Phones   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The only specified term in the contract between Key Services Enterprise (KSE) Ltd and Unique Mobile Solutions (UMS) Ltd is that of the provision of 500 mobile telephones, which are suitable for use in the UK. The court will classify these types of contractual terms as intermediate or innominate terms (Poole, 2012). The status of these terms is not clearly defined, as their significance lies between a condition and a warranty. Innominate terms were established in the case of HK Fir Shipping v Kawasaki Kisen Kaisha [1962], where the defendants chartered a ship for the duration of two years from the plaintiffs. In the agreement established between the two parties, there was a specific clause indicating that the ship was suitable for performing cargo service. Due to problems with the engine, 20 weeks of the charter were lost and thus the defendants were entitled to bring an action for damages for breach of contract on the grounds of the clause specified in the agreement (MacMillan and Stone, 2012). Under the circumstance that the use of the telephones supplied was illegal in the UK, and they could not be modified to make their use legal, the court will classify this term as misrepresentation or a false statement made by the mobile phone seller regarding the use of the products. As in the case of Gordon v Selico [1986], it is possible to make a misrepresentation by words or by conduct. However, it should be considered that representation is not a term. Moreover, the telephones supplied required tuning to particular frequencies, a task taking two minutes for each one. This aspect also indicates the presence of innominate terms (Knapp et al., 2012). However, under the circumstance in which the CEO of KSE signed the contract with UMS, there is no reference to any other document. In addition, KSE’s CEO accepted the receipt of the transaction without reading it, which represents a serious mistake that can be identified as negligence in lawful terms. The harm caused by the deci sion of KSE’s CEO to sign a contract with UMS is as a result of his carelessness. There is a failure to behave with the proper level of care required for the described circumstances (Poole, 2012). On the back of the receipt provided by UMS, the statement can be classified by the court as an exclusion clause because the provider of the mobile phones has directly excluded liability for contractual breach. In an attempt to analyse the exclusion clause as a term under the circumstance in which KSE’s CEO accepted the receipt without reading it, specific implications can be drawn. As a term in a contract, an exclusion clause indicates the purpose to limit or restrict the rights of the parties bound to the contract (Hillman, 2004). A true exclusion clause, as in the case of UMS, recognised a potential breach of contract, and then serves as an excuses liability for any potential breach. Therefore, it can be concluded that an exclusion clause was ‘incorporated’ into the contract with KSE. The effect of this term in the contract should be evaluated on the basis of incorporation (Elliott and Quinn, 2003). This means that UMS has actually incorporated an exclusion clause by signature (at the back of the receipt of the transaction provided to KSE). The fact that KSE’s CEO accepted the receipt and signed it means that the respective clause is considered part of the cont ract. Yet, the party representing the clause, UMS, has not taken any reasonable steps to bring it to the close attention of the second party in the contract (MacMillan and Stone, 2012). Applying the legal controls that the court would use in assessing the validity of the term in the contract should refer to principles of strict literal interpretation and contra proferentem (Hillman, 2004). In order an exclusion clause to operate, it needs to cover the breach with an assumption of a potential breach of contract. In case there is a breach of contract, the specific type of liability which is emerging is also relevant in the process of interpretation by the court. There is strict liability involved, which arises as a result of a state of affairs in which the party at breach is not necessarily identified as responsible for the fault (Smits, 2005). However, the court needs to consider the case of liability for negligence, or in other words, liability arising as a result of fault. A common tendency demonstrated by the court would be to require the party which relies on the clause to have drafted it adequately in order to result in a situation where that party is exempted f rom the liability arising (Cauffman, 2013). In the presence of ambiguity, as it might be in the case of KSE and UMS, the court would most probably apply the legal control of strict literal interpretation against the party which extensively relies on the exclusion clause in the contract. In the process of assessing the validity of the exclusion clause in the contract, the court may also apply the legal control of contra proferentem (MacMillan and Stone, 2012). In case ambiguity persists even after attempts have been made to construe an exclusion clause with regards to its natural meaning, the court may decide to apply a rule identified as contra proferentem. This term implies that the clause needs to be construed against the party in the contract that imposed its initial inclusion, respectively UMS. In the context of negligence, the court would most probably take the approach that a party would enter into a contract that permits the second party to evade fault based liability (Cauffman, 2013). Law of Tort Liability in Tort and Contractual Liability   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   While discussing certain implications of liability, contrasting liability in tort with contractual liability is important. All activities initiated by individuals as well as organisations are regulated by law. Tort law represents a branch of the civil law, and it should be considered that any dispute in civil law is usually between private parties (Horsey and Rackley, 2011). As indicated in the previous section, strict liability illustrates a solid legal doctrine according to which a party is held responsible for the damages resulting by his or her actions. Strict liability is also applicable to tort law especially in cases involving product liability lawsuits (Okrent, 2014). In the context of tort law, strict liability refers to the process of imposing liability on a party or individual without a particular finding of fault. In case fault is found, the court would determine a situation known as negligence or tortuous intent (Hodgson and Lewthwaite, 2012). As a result, the plaintiff would need to prove the occurrence of the tort and the implied responsibility of the defendant. The objective of strict liability is to discourage any forms of reckless behaviour as well as irrelevant product development and manufacturing. Therefore, liability in tort refers to the duty of care along with the negligence of that duty. On the other hand, contractual liability is associated with a situation in which two or more parties promise specific things to each other (Okrent, 2014). Liability in tort and contractual liability are similar in the point that they are both civil wrongs, and the individual wronged sues in the court in order to obtain compensation. However, the m ain difference is that in a claim related to liability in tort, the defendant may not have been involved in any previous relationship or transaction with the claimant. On the contrary, in a claim of contractual liability, the main condition that should be met is that the defendant and claimant should be the parties representing the contract (Hodgson and Lewthwaite, 2012). Case Study of King’s Restaurant   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In an attempt to analyse the situation described in the case study of King’s Restaurant, it appears that it should be considered on the basis of tort of negligence. The claimants in this case, Carlos and Janet, need to prove certain elements to the court so as to provide a valid proof of negligence and claim damages (Okrent, 2014). These elements refer to proving that the restaurant owed them a strict duty of care; the restaurant breached that particular duty of care; and Carlos and Janet suffered damage resulting from the breach. The notion of the duty of care was established in Donoghue v Stevenson [1932] in which the court enforced the decision that an individual may sue another person who caused them loss or damage even in the absence of contractual relationship. Yet, in the case of Carlos and Janet, it needs to be considered that even if the court proves negligence, the restaurant may have a defence that protects it from liabil ity, or decreases the precise amount of damages it is liable for (Horsey and Rackley, 2011). Hence, it can be argued that there is tortuous liability action against the restaurant. There is a breach of a statutory duty in King’s Restaurant case study, as the direct consequence was harming a person, which gives rise to tortuous liability for the restaurant towards Carlos and Janet under the legal doctrine of negligence (Christie et al., 1997). However, the victim should be identified in the class of individuals protected by the statute. Another important condition related to the success of the tort suit is that the injury should be of the specific type that the statute intended to prevent. Thus, the claimants need to prove their claim on specific balance of probabilities. It is also important for Carlos and Janet to show that the damage suffered is not quite remote from the breach (Horsey and Rackley, 2011). It should be assumed that a duty of care existed in this case because King’s Restaurant is identified as an award-winning and very expensive English restaur ant, which directly brings the conclusion that the services provided by the restaurant should be at a superior level. The standard of care should be determined through expert testimony and through the consideration of applicable, professional standards in the industry. The harm in the case is mostly physical, which makes it a sufficient claim for negligence. The problem in the case study can be resolved if Carlos and Janet definitely consider the option of claiming tortuous liability against the restaurant (Christie et al., 1997). Case Study of Angelina and Christian Auctioneers   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In this case, the legal principles of tort of professional negligence misstatement and vicarious liability can be applied. The tort of professional negligence misstatement refers to representing a fact, which is improperly and carelessly made. This claim is usually relied on by another party and results in their disadvantage (Hodgson and Lewthwaite, 2012). Vicarious liability presents a doctrine according to which an individual is responsible for the actions of another person because of a special relationship available between the parties, such as the one between an employer and an employee. Angelina has rights and remedies against Brad and Christian Auctioneers in connection with the incorrect advice given to her about the worth of the painting (Okrent, 2014). In the case, Angelina relies on the other party for their expertise, knowledge, and judgment. Moreover, the person who provided advice to Angelina, Brad, knew that the other party w as relying on him and his judgment about the painting. It can be also argued that it was reasonable for Angelina in the presented circumstances to rely on Brad and Christian Auctioneers. Brad on the behalf of his organisation, Christian Auctioneers, has given a negligence misstatement regarding the painting’s value. His judgment was personal rather than professionally based (Hodgson and Lewthwaite, 2012). Angelina’s rights against Brad and Christian Auctioneers are based on the premise of the special relationship established between her and this organisation. In the process of examining the special relationship concept, an example can be observed in the case of Shaddock Associates PTY Ltd v Parramatta City Council [1981], in which a solicitor acting on behalf of Shaddock established contact with the Parramatta City Council to seek advice regarding the potential impact on a property as a result of road widening proposals (Okrent, 2014). The council employees gave the solicitor a negligent misstatement, and as a result, Shaddock purchased the property and significant losses have been suffered. When applying the law in the case of Angelina, duty of care should be established in order to claim for negligence. It is important to consider the question of whether it was reasonably foreseeable that the actions of Brad and Christian Auctioneers would cause harm or loss to Angelina. Fur thermore, it is essential to establish the presence of a physical or factual link between Angelina and Brad and Christian Auctioneers. It can be deduced that their relationship was physical considering that Angelina approached the company to give her a valuation of some antique furniture present at her flat (Christie et al., 1997). The court would also need to determine the vulnerability of the plaintiff, and it can be indicated that the vulnerability to Angelina was high because she was relying on Brad and Christian Auctioneers for their professional advice in order to make a sound decision (Horsey and Rackley, 2011). The court would need to consider the actual damages caused. Considering that Angelina sold a valuable painting of Rembrandt for only  £100 is indicative of the losses she suffered due to the incorrect advice given to her. Moreover, the principle of vicarious liability could also refer to this case (Horsey and Rackley, 2011). Vicarious liability is applicable because liability is attributed to Christian Auctioneers that has a responsibility for its employee, Brad, who negligently causes a loss to Angelina because of the incorrect advice provided to her. In other words, the employer is responsible for the actions of the employee. Therefore, this form of strict liability can be imposed on Christian Auctioneers due to the negligent conduct of its employees in the case of Angelina (Okrent, 2014). Possible Defences Available to Christian Auctioneers   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   There could be possible defences available to Christian Auctioneers. Such defences are mainly based on the assumption whether there is a contractual relationship between the parties (Okrent, 2014). An example of this aspect can be found in the case of Henderson v Merrett Syndicates Ltd [1994], emphasising a statement of responsibility by an individual providing professional services along with reliance by the individual for whom the services were provided. Therefore, in the case of Angelina, it can be deduced that there was no special, contractual relationship between the parties (Christie et al., 1997). Angelina sought a free valuation, which may imply that there would not be liability for such type of information. Conclusion   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   This paper discussed essential aspects of contract law and tort law. The first part of the paper focused on describing the elements comprising a valid, legal contract along with differentiating the effects of common contracts (MacMillan and Stone, 2012). Details from two case studies were provided, namely from East Midlands Airways Airbus case and the case involving the supply of mobile phones. Important issues pertaining to contract law were discussed with the application of relevant law. The second part of the paper emphasised important principles of tort law by differentiating liability in tort and contractual liability. Negligence liability was discussed with regards to the case study of King’s Restaurant. Specific details about tort of professional negligence misstatement and vicarious liability were provided in the case study of Angelina and Christian Auctioneers (Okrent, 2014). In conclusion, legal and business practitioners need to stay informed about valid and applicable law principles with regards to contract and negligence in order to adhere to professional standards of conducting appropriate business practices. References Byrne v Van Tienhoven [1980] CPD 344 Cauffman, C. (2013). ‘The Principle of Proportionality and European Contract Law’. Maastricht Faculty of Law Working Paper. Working Paper No. 2013-05. Christie, G. C., Meeks, J. E., Pryor, E. S., and Sanders, J. (1997). Cases and Materials on the Law of Torts. St. Paul, MN: West. Dickinson v Dodds [1876] Ch. D. 463 Donoghue v Stevenson [1932] UKHL 100 Elliott, C. and Quinn, F. (2003). Contract Law. London: Longman. Gordon v Selico [1986] HLR 219 Henderson v Merrett Syndicates Ltd [1994] UKHL 5 Hillman, R. A. (2004). Principles of Contract Law. St. Paul, MN: West. HK Fir Shipping v Kawasaki Kisen Kaisha [1962] EWCA 7 Hodgson, J. and Lewthwaite, J. (2012). Tort Law Textbook. Oxford: Oxford University Press. Horsey, K. and Rackley, E. (2011). Tort Law. Oxford: Oxford University Press. Knapp, C. L., Crystal, N. M., and Prince, H. G. (2012). Problems in Contract Law: Cases and Materials. New York: Wolters Kluwer Law Business. MacMillan, C. and Stone, R. (2012). Elements of the Law of Contract. London: Stewart House. Okrent, C. (2014). Torts and Personal Injury Law. New York: Cengage Learning. Poole, J. (2012). Casebook on Contract Law. Oxford: Oxford University Press. Shaddock Associates PTY Ltd v Parramatta City Council [1981] HCA 59 Shuey v US [1875] 92 US 73 Smits, J. M. (2005). ‘The Principles of European Contract Law and the Harmonization of Private Law in Europe’. Maastricht University Faculty of Law, pp. 567-590.

Friendship of Lennie and George essays

Friendship of Lennie and George essays The friendship Lennie and George had in Of Mice and Men is incomparable to most friendships today. They were two very different people brought together by fate. Through all the hardships that theyve been through, they still managed to pull through it all, that is, until it came to the very end. Lennie and George are polar opposites. Lennie a muscular guy with no sense of what is going on around him, relies purely on what George tells him to do. Lennie is all brute strength without a hint of intelligence in his body. George on the other hand is a very knowledgeable man. George has hopes and aspirations he wants to fulfill. He is a man that is able to fend for, and is not dependant on anyone but himself. George may not be as strong as Lennie, but Lennie isnt as intelligent as George. Through their many differences these two prove that they need each other, and through each other they learn how to survive. Lennie and George balance each other out. Lennie helps George through his brute strength, while George helps Lennie control his strength. George is the brains of the operation. He thinks of ways to earn their money, and he helps control Lennie and make sure that he behaves himself. The two different characters manage not to clash, but instead balance each other out. They are both helping each other, Thats what a good friendship should be doing. The person shouldnt depend on the other too much, and not get anything back, but instead balance each other out. A good friendship should help each other out through everything, even if it means doing what hurts to do whats right for the other. Lennie and George had a friendship like no other, and when it came down to the end of things their everlasting friendship was proven to be true. George knew what was best for his friend, although he knew that it would hurt him, he knew that it had to be done. George, being th ...

How convincing are assertions that training and development contribute Essay

How convincing are assertions that training and development contribute to firm levels of performance - Essay Example This is what led to the concept of Human Resource Management, which later became Strategic HRM, due to transformed corporate thinking that HRM needs to be integrated with strategic organizational management. One of the key functions of HRM is training and development of the human resource to increase their competence in performing both individual and group tasks (Thang et.al, 2008) organizations believe that by incorporating of High Performance Work practices (best HR practices) such as training and development, they also enhance their levels of performance (Wilkowska, n.d). This paper examines the accuracy of this assertion, that training and development of an organization’s human resource enhances organizational performance. So, exactly how convincing are the assertions that training and development contribute to firm levels of performance? This question puts a new dimension into the universally acknowledged truths that training leads to enhanced organizational performance a nd knowledge generates growth. ... The assertions that training and development contribute to firm levels of performance are not only convincing but also indeed true, at least to the extent to which they can be applied in organizational strategic management with successful results. Extensive research has proved that training and development enhances employees’ skills and abilities thus creating future returns in form of increased productivity and enhanced organizational performance (Tamkin, 2005). The human resource is a very interesting factor of production at every organization’s disposal, which if utilized to the maximum, has an incredible capacity to yield certain capabilities that are unique to every organization (Quartey, 2012). For instance, training imparts skills and there is increased product value when employees are highly skilled than when they are not (Booth and Snower, 1996), and this can be a source of competitive advantage to the organization (Latif, Jan and Shaheen, 2013), and more so, s uch capabilities cannot be duplicated by rival organizations. It is also undoubted that the human resource is the most valuable asset to every organization because it is directly in charge of the daily execution of organizational strategic plan. In recognition of this fact, most global organizations are moving towards achieving their strategic goals by working through people, rather than working by people. A survey in Britain revealed that many organizations fund training and development as investment towards building a highly qualified, motivated, and committed human resource that can yield quality value for the organizations (Felstead et.al.1997). Training and development not only leads to skills development, but also directly affects attitudes of the

Characters from Alice Hoffman's Saint Helene Essay

Characters from Alice Hoffman's Saint Helene - Essay Example The main character of the novel is Saint Helene though of course. The characters are set in the era of candles and lights made out of paper bags, sand and candles. Helena’s mother takes the authority in the house of replacing every melting pot of white wax with fresh candles. However it is shown in the beginning that Helene’s indifferent to her surroundings. Helene went to a high school called Middleborough High till her junior year. She was known to be a quiet recluse girl who had been dejected by the people around. Her companionship was very little. She was barely known her school. Whatever little was she known, she was known as someone who would spend her entire afternoon in a cafeteria filling paper pages. That was all people knew about her. The whole school used to look down upon her. The girls around her used to thank their stars that they are not Helen. That is the kind aura with which Alice Hoffman has set the character of the book in the beginning of the novel. To many she is unrelatable. She is not your routine girl. She hardly cares about her exterior and how she appears to the outside world. She is known to be fat, ugly, sorrowful . she has no friends. People think she is lost in her own world and the girls in her school find relief in the fact that they are not HER. ... However, she is a strong person from within. She puts a tough fight against the insulting connotations sent her way by her peers and school people. (Hoffman) As the story progresses her character is shown to evolve. Slowly and gradually she is redeemed in her eyes and in the eyes of people around her. She gains confidence, holds her ground and starts becoming more viable and acceptable by the society that was around her. The evolution in the character was phenomenal. It’s the best character in the book and makes inroads into this world without having the most appealing features or the most charismatic habits. She is by far the best character that this story has to offer. Bibliography Hoffman, Alice. Saint Helene.

Foreign Direct Investment (FDI) Inflow In Pakistan

Foreign Direct Investment (FDI) Inflow In Pakistan CHAPTER 1 Foreign direct investment refers to the amount of participation that inflows from country a to country b like in many developing countries it comes from developed countries or it can also come in developed country as net property income from abroad. Foreign direct investment can be positive or negative which then results to the inflow of direct investment. It does not include investments which are done on purchase of shares. Investments can be come from wealthy individuals, public or private companies, government bodies, group related enterprises etc (Herring and Richard Willett, 1999). Foreign investment proved as very important for the developing countries. In poor nations it is proves as significant driver of development. FDI provides many of the developing countries with great benefits which helped them in achieving their economic growth. Through foreign direct investment there will be many things which are coming to the developing nations. There will be inflow of foreign capital and funds which you can term as hot money coming to your country. This capital can be invested into your business sectors to make it more worthy and profitable. Secondly there will be transfer of skills and technical expertise as if their entrepreneurs will come into your country and combine all the factors of production so then after results will be greater and larger than before (Larkins and Dan, 1998). Foreign direct investment can affect the countrys economy in different ways. It can affect the GDP rate, exchange rates and government policies in different ways; the effects of foreign direct investment at GDP are very significant. In many countries it constitutes at higher percentages of GDP rates. When foreign investment comes to the country it means that the business activity flourishes in the economy. There will be more production taken place and more goods and services produced by whether incorporated or unincorporated companies, or individual firm or it can be group related to enterprises but in any case there will be more provision of goods as heavy investments are taking places in form of foreign direct investment. GDP is actually refers to the production of more goods in compare to the last year results so a countrys GDP will surely increases by foreign direct investment. Total output of the economy will be increased which increases the GDP level (Hoshi, Takeo, Anil, and Da vid, 1991). 1.2 Problem Statement To identify the relationship between interbank exchange rate, real GDP and Dummy variable with foreign direct investment inflow in Pakistan. 1.3 Research Hypothesis: H1: Inter Bank Exchange Rate has a positive impact on Foreign Direct Investment Inflow in Pakistan. H2: Real GDP has a positive impact on Foreign Direct Investment Inflow in Pakistan. H3: Democratic Government has a positive impact on Foreign Direct Investment Inflow in Pakistan. 1.4 Outline of the study Foreign direct investment helps here those countries in carrying out their plans like Pakistan got assistance in running its steel mill operation etc. in this way foreign direct investment helps a lot third world countries. Foreign direct investment is basically the inflow of capital or investment from outside countries whether in shape of any kind of assistance or full operations like multinationals etc. foreign direct investment produce positive productivity effect on host countries. The main importance of this direct investment is that the adoption of the foreign technology, and gets to knew about many things through licensing agreements, imitation, employee trainings, process innovation, and link between foreign and domestic firms. There will be more job opportunities as in developing countries like Pakistan unemployment is a basic problem too which will be solved by the inflow of foreign direct investment. There will be not be only the employment of people but all factors will be employed if foreign investment will come. Many countries like China, Singapore, South Korea and Malaysia are depending on this foreign direct investment and are moving towards the development quickly. Factor employments will create income generation and through the multiplier effects the round of spending will make the economy proper and developed. There are many nations who are poor and they cannot carry out some of the plans needed in their country like extracting of some natural resources which is very expensive and needs heavy machinery. Foreign direct investment helps here those countries in carrying out their plans like Pakistan got assistance in running its steel mill operation etc. in this way foreign direct investment helps a lot third world countries. 1.5 Definitions Foreign direct investment refers to the amount of participation that inflows from country a to country b like in many developing countries it comes from developed countries or it can also come in developed country as net property income from abroad. Foreign direct investment can be positive or negative which then results to the inflow of direct investment. It does not include investments which are done on purchase of shares. Investments can be come from wealthy individuals, public or private companies, government bodies, group related enterprises etc (Herring and Richard Willett, 1999). CHAPTER 2 LITERATURE REVIEW Foreign direct investment refers to the amount of participation that inflows from country a to country b like in many developing countries it comes from developed countries or it can also come in developed country as net property income from abroad. Foreign direct investment can be positive or negative which then results to the inflow of direct investment. It does not include investments which are done on purchase of shares. Investments can be come from wealthy individuals, public or private companies, government bodies, group related enterprises etc (Herring and Richard Willett, 1999). Foreign investment also comprises of multinationals which open there operating branches in your countries and perform their business operations like production of goods and services so in USA inflow from multinationals also helps in creating trading activities like surpluses can be exports to outside countries to earn good amounts of foreign exchange which will appreciate your currency. Foreign direct investment resulted in 30% of the jobs in the manufacturing sectors. Inward FDI also led to the capital flow in USA which means higher productivity and living standards (Jaffee, Dwight, and Thomas, 1996). India is the second largest destination of FDI after China. It is been stated by the surveys of UNCTAD that India has been facing massive growth through Transaction Corporation. The areas which has been strengthen through the inflow of foreign direct investments are, telecommunication, information technology and other major areas like chemicals, apparels, auto components, jewelry and pharmaceuticals. There are high investments from Mauritius mainly due to the routing international funds through the country giving significant capital gain tax advantages; as tax will be treated between India and Mauritius so double taxation will be avoided. On the other hand Mauritius is capital gain tax heaven so there will be zero tax in FDI channel (Hoshi, Takeo, Anil, and David, 1991). FDI inflows into India reached a record $19.5 billion in fiscal year 2006-07 (April–March), according to the governments Secretariat for Industrial Assistance. This was double of US $7.8bn in the previous year. In 2008 FDI was more than $35bn. Government of India has created many incentives for the investors. The areas which need more relaxations were civil aviation, construction development, industrial parks, petroleum and natural gas, commodity exchanges, credit-information services and mining. Due to the foreign direct investment the economy of India is getting prosperous, economic growth is coming into effect. The potential to be an economic superpower is going to depend on how the government can create incentives for FDI flow across a large number of sectors in India. FDI is also hitting the country of Morocco with its affects. It is ranked among 4rth in foreign direct investment ranking, according to the United Nations Conference on Trade and Development. Other 72 projec ts were also been approved in 2008 as statistics have shown. FDI increases the job opportunities to 40,023 which were direct and stable. Morocco is making many steps in making it clear destination for foreign direct investment which is really good for its economy and its people overall. Though there was a decline in foreign investment of 29% in 2008 due to the economic downturn but after then it will raised up to the level where it gets god image. The major investors of Morocco are European Union with France (1.86bln), Spain (783mln). Arab countries also invest in Morocco. In terms of sectors, tourism has the biggest share of investment with $1.55bln, which is 33% of the total FDI, followed by the real estate sector and the industrial sector, with respectively $930mln and $374mln (Harris and Ravenscraft, 2008). The best thing which is hit by foreign direct investment is the opportunity for the citizen of host country that is of employment and skills development. Through investment by companies of abroad business activity taken place in the country, more goods will be demanded so there will be more need of factors of production so that the demand will be meeting up. For this purpose more people will be employed by those companies and in return people enjoy good wages and higher living standards. Secondly to make the product internationally acceptable and of great quality many training programs are also been conducted which enhance the skills of the employees and their efficiency level (Dewenter, 2008). Resource flows to developing countries over the 1990s and has become a significant. Part of capital formation in the developing countries despite their share in global distribution of FDI continuing to remain small or even declining. The role of the foreign direct investment (FDI) has been widely recognized as a Growth-enhancing factor in the developing countries. The potential advantages of the FDI on the host economy are it promote the use and Exploitation of local raw materials, it enhances modern techniques of management and marketing, it eases the access to new technologies, hot capital inflow could be used for financing current account deficits, finance flows in form of FDI do not generate repayment of principal and interests (as opposed to external debt), it increases the stock of human capital via on the job training. FDI allows you to access the use of raw materials of the host country which means that it will promote its usage, a country can get absolute and comparative adv antages on the basis of it natural resources or any kind of material which can give it an edge. Secondly due to the foreign direct investment it is very sure that new technologies will be transfer to the host country and will make them more efficient and up to the international standards. Often multinationals carried out the training programs for the workers of host countries so in this case their expertise will be enhanced and their productivity will increase. If a country is facing current account deficit which means that its balance of payment position is worse and imports are higher than exports so here foreign direct investment plays an important role in financing your current account deficit (Harris and Ravenscraft, 2008). Hot inflow of money will offset your current account deficit with the flow of capital comes from outside countries in shape of inflow of foreign direct investment. That is how it affects your current account. The advantage of foreign direct investment is that it does not generate any interest payments or the return of principal amounts as opposed to the external debt. So in total foreign direct investment effect your GDP level, current account balance and your democratic government in different ways and mainly positive. Some negative effects of foreign direct investment are also here but that is depends on host government rules and regulations that how they strictly maintain the foreign direct investment into their favors (Froot and Stein, 1991). Foreign direct investment is basically the inflow of capital or investment from outside countries whether in shape of any kind of assistance or full operations like multinationals etc. foreign direct investment produce positive productivity effect on host countries. The main importance of this direct investment is that the adoption of the foreign technology, and gets to knew about many things through licensing agreements, imitation, employee trainings, process innovation, and link between foreign and domestic firms. Foreign direct investment directly linked with the economic development of the host country and it also give benefit to the base country as they can access raw materials, can avoid trade barriers, will be near to the markets, can take advantage of cheap labors and lack of rules in host countries. Due to benefits host countries and industrializes encourage foreign direct investment (Campa and Goldberg, 1995). It affects the economic growth by stimulating domestic investment, increasing human capital formation and by facilitating the technology transfer in the host countries. Foreign Direct Investment (FDI) has emerged as the most important source of external. Apart from exchange rates and GDP level inflow of foreign direct investment also effects your democratic government; like how they reshape their policies and incentives. Like if you investors are investing in your country they also will need some of the free hands incentives which will more attract them to invest. For this purpose the government of host country will be reshaping their policies somehow like low corporate and income tax rates, tax holidays will be given to them, special economic zones will be created, export processing zone will be come into existence, financial subsidies, infrastructure subsidies, RD supports and many other things to relax them so that they will invest more (Rodriguez, 1998). Besides all these foreign direct investment will be having great impact on GDP level. Local output will increase as more production of gods will be taken place. More production means that your country is having more number of commodities ever than before so real output is increasing means GDP level. Increase in GDP will surely have good effects on your economy. Economic growth will come into effect. More employment will be there and factor payments will lead to the multiplier effects which means more and more income generation and economy will reaches to its equilibrium level (Dewenter, 2008). Resource flows to developing countries over the 1990s and has become a significant Part of capital formation in the developing countries despite their share in global distribution of FDI continuing to remain small or even declining. The role of the foreign direct investment (FDI) has been widely recognized as a Growth-enhancing factor in the developing countries. The potential advantages of the FDI on the host economy are it promote the use and Exploitation of local raw materials, it enhances modern techniques of management and marketing, it eases the access to new technologies, hot capital inflow could be used for financing current account deficits, finance flows in form of FDI do not generate repayment of principal and interests (as opposed to external debt), it increases the stock of human capital via on the job training (Huang and Walkling, 1997). FDI allows you to access the use of raw materials of the host country which means that it will promote its usage, a country can get absolute and comparative advantages on the basis of it natural resources or any kind of material which can give it an edge. Secondly due to the foreign direct investment it is very sure that new technologies will be transfer to the host country and will make them more efficient and up to the international standards. Often multinationals carried out the training programs for the workers of host countries so in this case their expertise will be enhanced and their productivity will increase (Itagaki, 2000). If a country is facing current account deficit which means that its balance of payment position is worse and imports are higher than exports so here foreign direct investment plays an important role in financing your current account deficit. Hot inflow of money will offset your current account deficit with the flow of capital comes from outside countries in shape of inflow of foreign direct investment. That is how it affects your current account. The advantage of foreign direct investment is that it does nohat generate any interest payments or the return of principal amounts as opposed to the external debt. So in total foreign direct investment effect your GDP level, current account balance and your democratic government in different ways and mainly positive. Some negative effects of foreign direct investment are also here but that is depends on host government rules and regulations that how they strictly maintain the foreign direct investment into their favors (Craine, 1999). Economic growth may mean that we are using are scarce resources swiftly so that they can depleted. Oil, coal, metals other natural resources are in limited supply and can be run out if we use them so quickly. If they do run out then there can be no more capital goods, food supplies may diminish and the population of world may suffer but this can be control through conservation process. Conservation means that you saved up some amount of scarce resources for our future generation rather than consuming it all at once for present people so by it we can save for the upcoming people of the country (Klein and Rosengren, 1994). Foreign direct investment if comes in the country so that will be definitely mean that more and more factories will be opening in the host country or if it comes for the existing factories like extracting of some natural resources etc so that means expansion of those factories. More and more factories and business sites means that there is though more land is available to produce more goods and services but less for other activities like recreational activities or parks etc. these can also destroy the plants and animals. The solution to this problem is that government should restrict the areas where these factories can be located and only allow there to operate. Those areas should be keeping away from residential locations so that normal citizens should not get affected. Factories should be more on barren land and regions so that fertile lands and animals would not get affected too. Growth also comes with many benefits so government cannot stop it. The best thing in this situation go vernment tries to do is to achieve sustainable growth. Sustainable growth means that along with the foreign investment, which is coming into the country government should try to minimize the harmful effects and should maximize the benefits so that resources and further things can be secured for the upcoming generations too (Hartman, 1992). There are also some of the negative aspects of foreign direct investment. There are some issues which are related like operation, distribution of the profits made on the investment and the personnel.economic backward section is always get effected of the host country when foreign direct investment is negatively affected. It is the responsibility of the host country to limit the effect of the foreign direct investment. They should make sure that countries which are making foreign direct investments should abide all the laws relating to environmental, governance and social regulations that are laid down country. However there can be some negative effects of economic growth too, means higher and higher GDP can affect your economy and people in it in a different manner too. There can be an opportunity cost of growth; economic growth may achieved by producing more capital goods but at the expense of less consumer goods like television, fashionable clothes etc but this can be in short run as in long run people will be enjoying more and more consumer goods and higher living standards due to the sustainable growth which has been achieved (Baldwin and Krugman, 1999). CHAPTER 3 RESEARCH METHOD This chapter explains the methodology used for this research study. This study focused on finding the factors affecting inflows of foreign direct investment in Pakistan. A method is a tool that can help solve problem and research new knowledge. This chapter also gives the methods to evaluate validity and reliability of the research for the factors associated with direct investment in Pakistan. 3.1. Data used: This research was carried out through Secondary Data. 3.2. Method of data collection: Data of Foreign Direct Investment and Real GDP is collected through State Bank of Pakistan, website and from Economic Survey of Pakistan and Data for Interbank exchange rate was collected through different websites like www.Oanda.com and www.indexmundi.com. 3.3. Sample size: Sample data of last 39 years is to be taken. Data has been taken from the year 3.4. Statistical tool used: In order to measure the relationship between the To Identify the relationship between Interbank Exchange Rate, Real GDP, and Dummy variable with Foreign Direct Investment Inflow in Pakistan. Regression is used as a statistical tool in this research. SPSS software is used to evaluate the relationship between the variables. CHAPTER 4 RESULTS 4.1. H1: Inter Bank Exchange Rate has a positive impact on Foreign Direct Investment Inflow in Pakistan. Table 4.1.1 The adjusted R Square value of the above table is 0.944 or 94.4% it means that the one unit change in the independent variable set will bring out the 94.4% change in the variation of dependent variable. Form the above Durbin Watson value it seems that there is a presence of the auto correlation in the data set lag generations or transformations would be resolve this issue. Table 4.1.2 From the above table the beta value of the exchange rate is -4011.980 means that there is a negative relationship exists among the exchange rate and the FDI therefore, our null hypothesis is not accepted. The VIF values indicate that there is also a presence of multi co linearity in the data set. Table 4.1.3 For resolving the issues of autocorrelation and multi co-linearity suitable transformations were applied on the data set in order to prepare the appropriate results. After applying the transformations the adjusted R Square value of the above table is -0.061 or -6.1% it means that the one unit change in the independent variable sets will bring out the -6.1% change in the variation of dependent variable. Form the above Durbin Watson value it seems that after the application of the transformation the problem of auto correlation in the data set has been resolved. Table 4.1.4 From the above table the beta value of the exchange rate is -0.31 means that there is a negative relationship exists among the exchange rate and the FDI therefore, our null hypothesis is not accepted. After the application of transformations the problem of multi co linearity in the data set is also resolved. 4.2. H2: Real GDP has a positive impact on Foreign Direct Investment Inflow in Pakistan. Table 4.2.1 The adjusted R Square value of the above table is 0.944 or 94.4% it means that the one unit change in the independent variable sets will bring out the 94.4% change in the variation of dependent variable. Form the above Durbin Watson value it seems that there is a presence of the auto correlation in the data set lag generations or transformations would be resolve this issue. Table 4.2.2 From the above table the beta value of the real GDP is 4243.439 means that there is a positive relationship exists among the real GDP and the FDI therefore, our null hypothesis is not rejected. The VIF values indicate that there is also a presence of multi co linearity in the data set. Table 4.2.3 For resolving the issues of autocorrelation and multi co linearity suitable transformations were applied on the data set in order to prepare the appropriate results. After applying the transformations the adjusted R Square value of the above table is -0.061 or -6.1% it means that the one unit change in the independent variable sets will bring out the -6.1% change in the variation of dependent variable. Form the above Durbin Watson value it seems that after the application of the transformation the problem of auto correlation in the data set has been resolved. Table 4.2.4 From the above table the beta value of the real GDP is -.438 means that there is a negative relationship exists among the real GDP and FDI therefore hypothesis is not accepted. After the application of transformations the problem of multi co linearity in the data set is also resolved. 4.3. H3: Democratic Government has a positive impact on Foreign Direct Investment Inflow in Pakistan. Table 4.3.1 The adjusted R Square value of the above table is 0.944 or 94.4% it means that the one unit change in the independent variable sets will bring out the 94.4% change in the variation of dependent variable. Form the above Durbin Watson value it seems that there is a presence of the auto correlation in the data set lag generations or transformations would be resolve this issue. Table 4.3.2 From the above table the beta value of the dummy variable/democratic government is -17128.3 means that there is a negative relationship exists among the dummy variable/democratic government and FDI therefore, our null hypothesis is not rejected. The VIF values indicate that there is also a presence of multi co linearity in the data set. Table 4.3.3 For resolving the issues of autocorrelation and multi co linearity suitable transformations were applied on the data set in order to prepare the appropriate results. After applying the transformations the adjusted R Square value of the above table is -0.061 or -6.1% it means that the one unit change in the independent variable sets will bring out the -6.1% change in the variation of dependent variable. Form the above Durbin Watson value it seems that after the application of the transformation the problem of auto correlation in the data set has been resolved. Table 4.3.4 From the above table the beta value of the dummy variable/democratic government is -.107 means that there is a negative relationship exists among the dummy variable/exchange rate and FDI therefore, our null hypothesis is not accepted. After the application of transformations the problem of multi co linearity in the data set is also resolved. CHAPTER 5 DISCUSSION,CONCLUSION, IMPLICATIONS, AND FUTURE RESEARCH 5.1 Conclusion: There were number of positive and negative effects of this foreign direct investment. The positive effects of foreign direct investment are; the investment means that foreign currency is coming into Pakistan. Whenever any company may be multinational invested in this country in terms of direct investment it means that they invested their currency into the country. It increased the foreign exchange reserves which are good for host country as they can be used in payments of debts or any kind of imports etc. Secondly more goods and services have produced and which can be exported to outside countries; so more foreign exchange can be earns through it. Foreign direct investment directly linked with the economic development of the host country and it also give benefit to the base country as they can access raw materials, can avoid trade barriers, will be near to the markets, can take advantage of cheap labors and lack of rules in host countries. Due to benefits host countries and industria lizes encourage foreign direct investment. Foreign investment proved as very important for the developing countries. In poor nations it is proves as significant driver of development. FDI provides many of the developing countries with great benefits which helped them in achieving their economic growth. Through foreign direct investment there will be many things which are coming to the developing nations. There will be inflow of foreign capital and funds which you can term as hot money coming to country. This capital can be invested into your business sectors to make it more worthy and profitable. Secondly there will be transfer of skills and technical expertise as if their entrepreneurs will come into your country and combine all the factors of production so then after results will be greater and larger than before. New technologies in shape of new capital equipments and software which can make factories totally automated will lower all the average costs and make it more efficient that it ever can be. Besides all of these sometimes local firms can also be squeeze out of the market due to the inferior equipment and much smaller resources than the large giants with foreign investments. This is the work of government that how they reshape their policies to bring in foreign direct investment into your favor and not letting down the overall economic conditions. Profits which may earn here can also be sent back to the base country rather than kept for the re investment in the host nations. Some multinationals also impose their cultures in the people of the host country. To avoid all this state should interfere with all the consumer protection laws, unfair competition, laws for employee protection, environment protection and also of location of industry. 5.2 Discussion and implication: Apart from these things when foreign investment comes into the country so then means that new opportunities could be created for many other firms too like they supply components and other things to the companies who are operating over here and has invested which will generate more employment and income for the citizens. Local firms can also be motivated to bring their quality up to the international standards as if they are supplying components to the multinationals. This thing will improve their productivity and it is good for the country so foreign direct investment is very beneficial. Foreign direct investment will bring in investments and hot inflow of money and capital along with the tax revenues for the government even after some exemptions. Companies or individuals who operate in your country after investment will pay some taxes to the government too. Government can re invest those revenues in other sectors for the welfare of the general public like in health or education sectors etc. 5.3 Future research: For future research, there are many advantages of high GDP rate like people can have more goods and services to consume; it will raise their living standards, secondly excess goods can be exported to outside countries so that foreign exchange can be earn through it. Higher GDP will give good image to the country in terms of many things; more and more foreign investors will come with their investments. People will be earning more so they can afford more other goods to purchase and secondly more incomes means more taxation for the government which it can spend on many other projects like schooling, health, defense, crime control etc. growth should result in improved standards of living in the country and higher profitability for the business. Foreign Direct Investment (FDI) Inflow In Pakistan Foreign Direct Investment (FDI) Inflow In Pakistan CHAPTER 1 Foreign direct investment refers to the amount of participation that inflows from country a to country b like in many developing countries it comes from developed countries or it can also come in developed country as net property income from abroad. Foreign direct investment can be positive or negative which then results to the inflow of direct investment. It does not include investments which are done on purchase of shares. Investments can be come from wealthy individuals, public or private companies, government bodies, group related enterprises etc (Herring and Richard Willett, 1999). Foreign investment proved as very important for the developing countries. In poor nations it is proves as significant driver of development. FDI provides many of the developing countries with great benefits which helped them in achieving their economic growth. Through foreign direct investment there will be many things which are coming to the developing nations. There will be inflow of foreign capital and funds which you can term as hot money coming to your country. This capital can be invested into your business sectors to make it more worthy and profitable. Secondly there will be transfer of skills and technical expertise as if their entrepreneurs will come into your country and combine all the factors of production so then after results will be greater and larger than before (Larkins and Dan, 1998). Foreign direct investment can affect the countrys economy in different ways. It can affect the GDP rate, exchange rates and government policies in different ways; the effects of foreign direct investment at GDP are very significant. In many countries it constitutes at higher percentages of GDP rates. When foreign investment comes to the country it means that the business activity flourishes in the economy. There will be more production taken place and more goods and services produced by whether incorporated or unincorporated companies, or individual firm or it can be group related to enterprises but in any case there will be more provision of goods as heavy investments are taking places in form of foreign direct investment. GDP is actually refers to the production of more goods in compare to the last year results so a countrys GDP will surely increases by foreign direct investment. Total output of the economy will be increased which increases the GDP level (Hoshi, Takeo, Anil, and Da vid, 1991). 1.2 Problem Statement To identify the relationship between interbank exchange rate, real GDP and Dummy variable with foreign direct investment inflow in Pakistan. 1.3 Research Hypothesis: H1: Inter Bank Exchange Rate has a positive impact on Foreign Direct Investment Inflow in Pakistan. H2: Real GDP has a positive impact on Foreign Direct Investment Inflow in Pakistan. H3: Democratic Government has a positive impact on Foreign Direct Investment Inflow in Pakistan. 1.4 Outline of the study Foreign direct investment helps here those countries in carrying out their plans like Pakistan got assistance in running its steel mill operation etc. in this way foreign direct investment helps a lot third world countries. Foreign direct investment is basically the inflow of capital or investment from outside countries whether in shape of any kind of assistance or full operations like multinationals etc. foreign direct investment produce positive productivity effect on host countries. The main importance of this direct investment is that the adoption of the foreign technology, and gets to knew about many things through licensing agreements, imitation, employee trainings, process innovation, and link between foreign and domestic firms. There will be more job opportunities as in developing countries like Pakistan unemployment is a basic problem too which will be solved by the inflow of foreign direct investment. There will be not be only the employment of people but all factors will be employed if foreign investment will come. Many countries like China, Singapore, South Korea and Malaysia are depending on this foreign direct investment and are moving towards the development quickly. Factor employments will create income generation and through the multiplier effects the round of spending will make the economy proper and developed. There are many nations who are poor and they cannot carry out some of the plans needed in their country like extracting of some natural resources which is very expensive and needs heavy machinery. Foreign direct investment helps here those countries in carrying out their plans like Pakistan got assistance in running its steel mill operation etc. in this way foreign direct investment helps a lot third world countries. 1.5 Definitions Foreign direct investment refers to the amount of participation that inflows from country a to country b like in many developing countries it comes from developed countries or it can also come in developed country as net property income from abroad. Foreign direct investment can be positive or negative which then results to the inflow of direct investment. It does not include investments which are done on purchase of shares. Investments can be come from wealthy individuals, public or private companies, government bodies, group related enterprises etc (Herring and Richard Willett, 1999). CHAPTER 2 LITERATURE REVIEW Foreign direct investment refers to the amount of participation that inflows from country a to country b like in many developing countries it comes from developed countries or it can also come in developed country as net property income from abroad. Foreign direct investment can be positive or negative which then results to the inflow of direct investment. It does not include investments which are done on purchase of shares. Investments can be come from wealthy individuals, public or private companies, government bodies, group related enterprises etc (Herring and Richard Willett, 1999). Foreign investment also comprises of multinationals which open there operating branches in your countries and perform their business operations like production of goods and services so in USA inflow from multinationals also helps in creating trading activities like surpluses can be exports to outside countries to earn good amounts of foreign exchange which will appreciate your currency. Foreign direct investment resulted in 30% of the jobs in the manufacturing sectors. Inward FDI also led to the capital flow in USA which means higher productivity and living standards (Jaffee, Dwight, and Thomas, 1996). India is the second largest destination of FDI after China. It is been stated by the surveys of UNCTAD that India has been facing massive growth through Transaction Corporation. The areas which has been strengthen through the inflow of foreign direct investments are, telecommunication, information technology and other major areas like chemicals, apparels, auto components, jewelry and pharmaceuticals. There are high investments from Mauritius mainly due to the routing international funds through the country giving significant capital gain tax advantages; as tax will be treated between India and Mauritius so double taxation will be avoided. On the other hand Mauritius is capital gain tax heaven so there will be zero tax in FDI channel (Hoshi, Takeo, Anil, and David, 1991). FDI inflows into India reached a record $19.5 billion in fiscal year 2006-07 (April–March), according to the governments Secretariat for Industrial Assistance. This was double of US $7.8bn in the previous year. In 2008 FDI was more than $35bn. Government of India has created many incentives for the investors. The areas which need more relaxations were civil aviation, construction development, industrial parks, petroleum and natural gas, commodity exchanges, credit-information services and mining. Due to the foreign direct investment the economy of India is getting prosperous, economic growth is coming into effect. The potential to be an economic superpower is going to depend on how the government can create incentives for FDI flow across a large number of sectors in India. FDI is also hitting the country of Morocco with its affects. It is ranked among 4rth in foreign direct investment ranking, according to the United Nations Conference on Trade and Development. Other 72 projec ts were also been approved in 2008 as statistics have shown. FDI increases the job opportunities to 40,023 which were direct and stable. Morocco is making many steps in making it clear destination for foreign direct investment which is really good for its economy and its people overall. Though there was a decline in foreign investment of 29% in 2008 due to the economic downturn but after then it will raised up to the level where it gets god image. The major investors of Morocco are European Union with France (1.86bln), Spain (783mln). Arab countries also invest in Morocco. In terms of sectors, tourism has the biggest share of investment with $1.55bln, which is 33% of the total FDI, followed by the real estate sector and the industrial sector, with respectively $930mln and $374mln (Harris and Ravenscraft, 2008). The best thing which is hit by foreign direct investment is the opportunity for the citizen of host country that is of employment and skills development. Through investment by companies of abroad business activity taken place in the country, more goods will be demanded so there will be more need of factors of production so that the demand will be meeting up. For this purpose more people will be employed by those companies and in return people enjoy good wages and higher living standards. Secondly to make the product internationally acceptable and of great quality many training programs are also been conducted which enhance the skills of the employees and their efficiency level (Dewenter, 2008). Resource flows to developing countries over the 1990s and has become a significant. Part of capital formation in the developing countries despite their share in global distribution of FDI continuing to remain small or even declining. The role of the foreign direct investment (FDI) has been widely recognized as a Growth-enhancing factor in the developing countries. The potential advantages of the FDI on the host economy are it promote the use and Exploitation of local raw materials, it enhances modern techniques of management and marketing, it eases the access to new technologies, hot capital inflow could be used for financing current account deficits, finance flows in form of FDI do not generate repayment of principal and interests (as opposed to external debt), it increases the stock of human capital via on the job training. FDI allows you to access the use of raw materials of the host country which means that it will promote its usage, a country can get absolute and comparative adv antages on the basis of it natural resources or any kind of material which can give it an edge. Secondly due to the foreign direct investment it is very sure that new technologies will be transfer to the host country and will make them more efficient and up to the international standards. Often multinationals carried out the training programs for the workers of host countries so in this case their expertise will be enhanced and their productivity will increase. If a country is facing current account deficit which means that its balance of payment position is worse and imports are higher than exports so here foreign direct investment plays an important role in financing your current account deficit (Harris and Ravenscraft, 2008). Hot inflow of money will offset your current account deficit with the flow of capital comes from outside countries in shape of inflow of foreign direct investment. That is how it affects your current account. The advantage of foreign direct investment is that it does not generate any interest payments or the return of principal amounts as opposed to the external debt. So in total foreign direct investment effect your GDP level, current account balance and your democratic government in different ways and mainly positive. Some negative effects of foreign direct investment are also here but that is depends on host government rules and regulations that how they strictly maintain the foreign direct investment into their favors (Froot and Stein, 1991). Foreign direct investment is basically the inflow of capital or investment from outside countries whether in shape of any kind of assistance or full operations like multinationals etc. foreign direct investment produce positive productivity effect on host countries. The main importance of this direct investment is that the adoption of the foreign technology, and gets to knew about many things through licensing agreements, imitation, employee trainings, process innovation, and link between foreign and domestic firms. Foreign direct investment directly linked with the economic development of the host country and it also give benefit to the base country as they can access raw materials, can avoid trade barriers, will be near to the markets, can take advantage of cheap labors and lack of rules in host countries. Due to benefits host countries and industrializes encourage foreign direct investment (Campa and Goldberg, 1995). It affects the economic growth by stimulating domestic investment, increasing human capital formation and by facilitating the technology transfer in the host countries. Foreign Direct Investment (FDI) has emerged as the most important source of external. Apart from exchange rates and GDP level inflow of foreign direct investment also effects your democratic government; like how they reshape their policies and incentives. Like if you investors are investing in your country they also will need some of the free hands incentives which will more attract them to invest. For this purpose the government of host country will be reshaping their policies somehow like low corporate and income tax rates, tax holidays will be given to them, special economic zones will be created, export processing zone will be come into existence, financial subsidies, infrastructure subsidies, RD supports and many other things to relax them so that they will invest more (Rodriguez, 1998). Besides all these foreign direct investment will be having great impact on GDP level. Local output will increase as more production of gods will be taken place. More production means that your country is having more number of commodities ever than before so real output is increasing means GDP level. Increase in GDP will surely have good effects on your economy. Economic growth will come into effect. More employment will be there and factor payments will lead to the multiplier effects which means more and more income generation and economy will reaches to its equilibrium level (Dewenter, 2008). Resource flows to developing countries over the 1990s and has become a significant Part of capital formation in the developing countries despite their share in global distribution of FDI continuing to remain small or even declining. The role of the foreign direct investment (FDI) has been widely recognized as a Growth-enhancing factor in the developing countries. The potential advantages of the FDI on the host economy are it promote the use and Exploitation of local raw materials, it enhances modern techniques of management and marketing, it eases the access to new technologies, hot capital inflow could be used for financing current account deficits, finance flows in form of FDI do not generate repayment of principal and interests (as opposed to external debt), it increases the stock of human capital via on the job training (Huang and Walkling, 1997). FDI allows you to access the use of raw materials of the host country which means that it will promote its usage, a country can get absolute and comparative advantages on the basis of it natural resources or any kind of material which can give it an edge. Secondly due to the foreign direct investment it is very sure that new technologies will be transfer to the host country and will make them more efficient and up to the international standards. Often multinationals carried out the training programs for the workers of host countries so in this case their expertise will be enhanced and their productivity will increase (Itagaki, 2000). If a country is facing current account deficit which means that its balance of payment position is worse and imports are higher than exports so here foreign direct investment plays an important role in financing your current account deficit. Hot inflow of money will offset your current account deficit with the flow of capital comes from outside countries in shape of inflow of foreign direct investment. That is how it affects your current account. The advantage of foreign direct investment is that it does nohat generate any interest payments or the return of principal amounts as opposed to the external debt. So in total foreign direct investment effect your GDP level, current account balance and your democratic government in different ways and mainly positive. Some negative effects of foreign direct investment are also here but that is depends on host government rules and regulations that how they strictly maintain the foreign direct investment into their favors (Craine, 1999). Economic growth may mean that we are using are scarce resources swiftly so that they can depleted. Oil, coal, metals other natural resources are in limited supply and can be run out if we use them so quickly. If they do run out then there can be no more capital goods, food supplies may diminish and the population of world may suffer but this can be control through conservation process. Conservation means that you saved up some amount of scarce resources for our future generation rather than consuming it all at once for present people so by it we can save for the upcoming people of the country (Klein and Rosengren, 1994). Foreign direct investment if comes in the country so that will be definitely mean that more and more factories will be opening in the host country or if it comes for the existing factories like extracting of some natural resources etc so that means expansion of those factories. More and more factories and business sites means that there is though more land is available to produce more goods and services but less for other activities like recreational activities or parks etc. these can also destroy the plants and animals. The solution to this problem is that government should restrict the areas where these factories can be located and only allow there to operate. Those areas should be keeping away from residential locations so that normal citizens should not get affected. Factories should be more on barren land and regions so that fertile lands and animals would not get affected too. Growth also comes with many benefits so government cannot stop it. The best thing in this situation go vernment tries to do is to achieve sustainable growth. Sustainable growth means that along with the foreign investment, which is coming into the country government should try to minimize the harmful effects and should maximize the benefits so that resources and further things can be secured for the upcoming generations too (Hartman, 1992). There are also some of the negative aspects of foreign direct investment. There are some issues which are related like operation, distribution of the profits made on the investment and the personnel.economic backward section is always get effected of the host country when foreign direct investment is negatively affected. It is the responsibility of the host country to limit the effect of the foreign direct investment. They should make sure that countries which are making foreign direct investments should abide all the laws relating to environmental, governance and social regulations that are laid down country. However there can be some negative effects of economic growth too, means higher and higher GDP can affect your economy and people in it in a different manner too. There can be an opportunity cost of growth; economic growth may achieved by producing more capital goods but at the expense of less consumer goods like television, fashionable clothes etc but this can be in short run as in long run people will be enjoying more and more consumer goods and higher living standards due to the sustainable growth which has been achieved (Baldwin and Krugman, 1999). CHAPTER 3 RESEARCH METHOD This chapter explains the methodology used for this research study. This study focused on finding the factors affecting inflows of foreign direct investment in Pakistan. A method is a tool that can help solve problem and research new knowledge. This chapter also gives the methods to evaluate validity and reliability of the research for the factors associated with direct investment in Pakistan. 3.1. Data used: This research was carried out through Secondary Data. 3.2. Method of data collection: Data of Foreign Direct Investment and Real GDP is collected through State Bank of Pakistan, website and from Economic Survey of Pakistan and Data for Interbank exchange rate was collected through different websites like www.Oanda.com and www.indexmundi.com. 3.3. Sample size: Sample data of last 39 years is to be taken. Data has been taken from the year 3.4. Statistical tool used: In order to measure the relationship between the To Identify the relationship between Interbank Exchange Rate, Real GDP, and Dummy variable with Foreign Direct Investment Inflow in Pakistan. Regression is used as a statistical tool in this research. SPSS software is used to evaluate the relationship between the variables. CHAPTER 4 RESULTS 4.1. H1: Inter Bank Exchange Rate has a positive impact on Foreign Direct Investment Inflow in Pakistan. Table 4.1.1 The adjusted R Square value of the above table is 0.944 or 94.4% it means that the one unit change in the independent variable set will bring out the 94.4% change in the variation of dependent variable. Form the above Durbin Watson value it seems that there is a presence of the auto correlation in the data set lag generations or transformations would be resolve this issue. Table 4.1.2 From the above table the beta value of the exchange rate is -4011.980 means that there is a negative relationship exists among the exchange rate and the FDI therefore, our null hypothesis is not accepted. The VIF values indicate that there is also a presence of multi co linearity in the data set. Table 4.1.3 For resolving the issues of autocorrelation and multi co-linearity suitable transformations were applied on the data set in order to prepare the appropriate results. After applying the transformations the adjusted R Square value of the above table is -0.061 or -6.1% it means that the one unit change in the independent variable sets will bring out the -6.1% change in the variation of dependent variable. Form the above Durbin Watson value it seems that after the application of the transformation the problem of auto correlation in the data set has been resolved. Table 4.1.4 From the above table the beta value of the exchange rate is -0.31 means that there is a negative relationship exists among the exchange rate and the FDI therefore, our null hypothesis is not accepted. After the application of transformations the problem of multi co linearity in the data set is also resolved. 4.2. H2: Real GDP has a positive impact on Foreign Direct Investment Inflow in Pakistan. Table 4.2.1 The adjusted R Square value of the above table is 0.944 or 94.4% it means that the one unit change in the independent variable sets will bring out the 94.4% change in the variation of dependent variable. Form the above Durbin Watson value it seems that there is a presence of the auto correlation in the data set lag generations or transformations would be resolve this issue. Table 4.2.2 From the above table the beta value of the real GDP is 4243.439 means that there is a positive relationship exists among the real GDP and the FDI therefore, our null hypothesis is not rejected. The VIF values indicate that there is also a presence of multi co linearity in the data set. Table 4.2.3 For resolving the issues of autocorrelation and multi co linearity suitable transformations were applied on the data set in order to prepare the appropriate results. After applying the transformations the adjusted R Square value of the above table is -0.061 or -6.1% it means that the one unit change in the independent variable sets will bring out the -6.1% change in the variation of dependent variable. Form the above Durbin Watson value it seems that after the application of the transformation the problem of auto correlation in the data set has been resolved. Table 4.2.4 From the above table the beta value of the real GDP is -.438 means that there is a negative relationship exists among the real GDP and FDI therefore hypothesis is not accepted. After the application of transformations the problem of multi co linearity in the data set is also resolved. 4.3. H3: Democratic Government has a positive impact on Foreign Direct Investment Inflow in Pakistan. Table 4.3.1 The adjusted R Square value of the above table is 0.944 or 94.4% it means that the one unit change in the independent variable sets will bring out the 94.4% change in the variation of dependent variable. Form the above Durbin Watson value it seems that there is a presence of the auto correlation in the data set lag generations or transformations would be resolve this issue. Table 4.3.2 From the above table the beta value of the dummy variable/democratic government is -17128.3 means that there is a negative relationship exists among the dummy variable/democratic government and FDI therefore, our null hypothesis is not rejected. The VIF values indicate that there is also a presence of multi co linearity in the data set. Table 4.3.3 For resolving the issues of autocorrelation and multi co linearity suitable transformations were applied on the data set in order to prepare the appropriate results. After applying the transformations the adjusted R Square value of the above table is -0.061 or -6.1% it means that the one unit change in the independent variable sets will bring out the -6.1% change in the variation of dependent variable. Form the above Durbin Watson value it seems that after the application of the transformation the problem of auto correlation in the data set has been resolved. Table 4.3.4 From the above table the beta value of the dummy variable/democratic government is -.107 means that there is a negative relationship exists among the dummy variable/exchange rate and FDI therefore, our null hypothesis is not accepted. After the application of transformations the problem of multi co linearity in the data set is also resolved. CHAPTER 5 DISCUSSION,CONCLUSION, IMPLICATIONS, AND FUTURE RESEARCH 5.1 Conclusion: There were number of positive and negative effects of this foreign direct investment. The positive effects of foreign direct investment are; the investment means that foreign currency is coming into Pakistan. Whenever any company may be multinational invested in this country in terms of direct investment it means that they invested their currency into the country. It increased the foreign exchange reserves which are good for host country as they can be used in payments of debts or any kind of imports etc. Secondly more goods and services have produced and which can be exported to outside countries; so more foreign exchange can be earns through it. Foreign direct investment directly linked with the economic development of the host country and it also give benefit to the base country as they can access raw materials, can avoid trade barriers, will be near to the markets, can take advantage of cheap labors and lack of rules in host countries. Due to benefits host countries and industria lizes encourage foreign direct investment. Foreign investment proved as very important for the developing countries. In poor nations it is proves as significant driver of development. FDI provides many of the developing countries with great benefits which helped them in achieving their economic growth. Through foreign direct investment there will be many things which are coming to the developing nations. There will be inflow of foreign capital and funds which you can term as hot money coming to country. This capital can be invested into your business sectors to make it more worthy and profitable. Secondly there will be transfer of skills and technical expertise as if their entrepreneurs will come into your country and combine all the factors of production so then after results will be greater and larger than before. New technologies in shape of new capital equipments and software which can make factories totally automated will lower all the average costs and make it more efficient that it ever can be. Besides all of these sometimes local firms can also be squeeze out of the market due to the inferior equipment and much smaller resources than the large giants with foreign investments. This is the work of government that how they reshape their policies to bring in foreign direct investment into your favor and not letting down the overall economic conditions. Profits which may earn here can also be sent back to the base country rather than kept for the re investment in the host nations. Some multinationals also impose their cultures in the people of the host country. To avoid all this state should interfere with all the consumer protection laws, unfair competition, laws for employee protection, environment protection and also of location of industry. 5.2 Discussion and implication: Apart from these things when foreign investment comes into the country so then means that new opportunities could be created for many other firms too like they supply components and other things to the companies who are operating over here and has invested which will generate more employment and income for the citizens. Local firms can also be motivated to bring their quality up to the international standards as if they are supplying components to the multinationals. This thing will improve their productivity and it is good for the country so foreign direct investment is very beneficial. Foreign direct investment will bring in investments and hot inflow of money and capital along with the tax revenues for the government even after some exemptions. Companies or individuals who operate in your country after investment will pay some taxes to the government too. Government can re invest those revenues in other sectors for the welfare of the general public like in health or education sectors etc. 5.3 Future research: For future research, there are many advantages of high GDP rate like people can have more goods and services to consume; it will raise their living standards, secondly excess goods can be exported to outside countries so that foreign exchange can be earn through it. Higher GDP will give good image to the country in terms of many things; more and more foreign investors will come with their investments. People will be earning more so they can afford more other goods to purchase and secondly more incomes means more taxation for the government which it can spend on many other projects like schooling, health, defense, crime control etc. growth should result in improved standards of living in the country and higher profitability for the business.

pvr demand stretch :: essays research papers

Various Strategies Used By PVR For Stretching Supply To Meet The Demand This Strategy involves altering and aligning the organization capacity to meet the demand i.e. when demand for services is at its peak, capacity is expanded and when the demand is low, capacity is reduced to conserve the organization resources. The primary services resources that can be expanded and contracted temporarily to meet the demand are discussed below: 1)  Ã‚  Ã‚  Ã‚  Ã‚   Time 2)  Ã‚  Ã‚  Ã‚  Ã‚   labor 3)  Ã‚  Ã‚  Ã‚  Ã‚   Facilities 4)  Ã‚  Ã‚  Ã‚  Ã‚   Equipments 1) Time: PVR brought in the concept of flexi-hours and it has eliminated that old traditional show timings of 9-12am,12-3,3-6 etc. They came with the odd hours show timings like 10:50, 2:20,3:40,7:25 which suits the requirements of different type of viewers. Like school bunkers can go for 10:50 am show, college going students after attending their classes can view 2:20 pm show and on the other side corporate executives can go for 7:25 pm show. 2)  Ã‚  Ã‚  Ã‚  Ã‚  labor : Labor is one area where an organization faces major constraint when demand changes. In case of high demand period like summer vacations ,week-ends, PVR increase no. of employees by hiring part-time employees during peak period. They increase the no. of employees at the ticket counter, inside the auditorium, and at the refreshment counter. They are adopting Cross training i.e one employee is trained in more than one job, like person sitting at ticket counter also do the job of usher. 3)  Ã‚  Ã‚  Ã‚  Ã‚  Facilities : In case of High demand PVR plan it out well in advance based on experience and increase the number and frequency of screenings. May be extending the screening in the next weeks schedule. More no of auditoriums are there , wide choice when more no of movies are releasing on the same day- but this is one time investment i. pvr demand stretch :: essays research papers Various Strategies Used By PVR For Stretching Supply To Meet The Demand This Strategy involves altering and aligning the organization capacity to meet the demand i.e. when demand for services is at its peak, capacity is expanded and when the demand is low, capacity is reduced to conserve the organization resources. The primary services resources that can be expanded and contracted temporarily to meet the demand are discussed below: 1)  Ã‚  Ã‚  Ã‚  Ã‚   Time 2)  Ã‚  Ã‚  Ã‚  Ã‚   labor 3)  Ã‚  Ã‚  Ã‚  Ã‚   Facilities 4)  Ã‚  Ã‚  Ã‚  Ã‚   Equipments 1) Time: PVR brought in the concept of flexi-hours and it has eliminated that old traditional show timings of 9-12am,12-3,3-6 etc. They came with the odd hours show timings like 10:50, 2:20,3:40,7:25 which suits the requirements of different type of viewers. Like school bunkers can go for 10:50 am show, college going students after attending their classes can view 2:20 pm show and on the other side corporate executives can go for 7:25 pm show. 2)  Ã‚  Ã‚  Ã‚  Ã‚  labor : Labor is one area where an organization faces major constraint when demand changes. In case of high demand period like summer vacations ,week-ends, PVR increase no. of employees by hiring part-time employees during peak period. They increase the no. of employees at the ticket counter, inside the auditorium, and at the refreshment counter. They are adopting Cross training i.e one employee is trained in more than one job, like person sitting at ticket counter also do the job of usher. 3)  Ã‚  Ã‚  Ã‚  Ã‚  Facilities : In case of High demand PVR plan it out well in advance based on experience and increase the number and frequency of screenings. May be extending the screening in the next weeks schedule. More no of auditoriums are there , wide choice when more no of movies are releasing on the same day- but this is one time investment i.