State of the U.S. economy for the first half of 2008 Essay Example for Free

State of the U.S. economy for the first half of 2008 Essay In the first half of 2008, four things are pummeling the typical American: the housing bust, the credit crunch, higher fuel and food costs and, most recently, a weakening labor market. The unemployment rate rose to 5. 1% in March, while the private sector lost jobs for the fourth month in a row. Consumer confidence is in a 26-year low. Feeling poorer and with fewer people prepared to lend money, consumers are cutting back. Seeing that consumer spending accounts for 70% of American demand, makes it more difficult for the economy especially when it is coupled with a collapse in the once mighty construction industry. The International Monetary Fund (IMF) now officially predicts an American recession in 2008. (The Economist). For the first time, Federal Reserve Chairman Ben Bernanke conceded that the U. S. economy may slip into recession but said growth should pick up later this year as the impact of interest rate cuts and other emergency steps take root. Bernanke told a congressional panel that the economy appeared to be growing, but warned it could shrink in the first half of 2008 as housing and financial markets remain distressed despite dramatic Fed interest rate cuts and emergency lending (Reuters). Volatility and crisis were the watchwords of the U. S. economy in 2007 buffeted by rising oil prices and the subprime mortgage crisis. Their combined impact stretched into 2008 especially in the first half, slowing economic growth. The impact of these factors was felt in the broader economy undermining both business investment and consumer confidence. The U. S. Chamber of Commerce appears to be more optimistic predicting modest growth averaging about 2% in the first half of the year, an improvement over a weak fourth quarter of 2007. Growth should increase to 2. 5% in the second half, as the housing sector bottoms out. Job growth will continue, albeit at a relatively slow pace-with the unemployment rate rising slightly above 5%. Corporate profits should improve as 2008 progresses and business investment will pick up modestly by the middle of the year. Export growth will continue to brighten the overall economic picture. Inflation will be in the moderate range, making further interest rate reductions less likely as the year progresses (US Chamber of Commerce). As 2008 progressed, many Americans experienced a growing despair as they watched their largest asset- the family home- decline in value. The United States is experiencing its worst housing recession in more than 15 years. Underscoring the breadth of the real estate recession, sales of existing homes fell in 45 states and Washington D. C. and prices dropped in more than half the metro areas it tracks according to the National Association of Realtors. In fact, homes are selling at a price 24% less than year ago as foreclosures continue to increase dramatically at 57% in Southern California. The slide in sales are predicted to persist and prices will likely fall throughout 2008, according to a majority of economists surveyed last month by USA TODAY (Knox). The housing downturn is spreading more broadly through the economy. Employers are shedding jobs, consumer confidence and spending have been shaken, and lenders have pulled back. If not for stronger demand for U. S. goods brought on by a weaker dollar, the economy would be in worse shape. To cushion the effect of the on-going crisis, the Federal Reserve has slashed interest rates, promised more cuts if the economy stays weak and perhaps most importantly sharply reduced the odds of financial-market catastrophe by extending its safety net to investment banks. The Federal Reserve has lowered benchmark interest rates by three percentage points to 2. 25 percent since mid-September to help put a floor under an economy hit hard by a housing slump and credit market turmoil. Bernanke said those rate cuts and other emergency measures to thaw frozen credit markets should promote growth over time. Also, Bernanke staunchly defended the Federal Reserves decision last month to broker JPMorgan Chases (JPM) takeover of investment bank Bear Stearns, (BSC) including approval of a loan backed by $30 billion of Bear Stearns assets. According to Bernanke, â€Å"A Bear Stearns default could have sparked a chaotic unwinding affecting the overall economy. Given exceptional pressures on the global economy and financial system, the damage caused by a potential Bear Stearns default could have been severe and extremely difficult to contain† (Kirchhoff). In retrospect, if the Federal Reserve did not intervene bankruptcy was inevitable which might have caused the U. S. and global markets to collapse. Even though the economy is slowing, inflation, boosted by skyrocketing energy and food prices remains a concern and constraint for the central bank. Another factor would be the declining value of the dollar; if the dollar buys less, inflation rises. The Federal Reserve data show that the U. S. dollar has declined about 10 percent over the past year against a trade-weighted basket of currencies from major U. S. trading partners. Moreover, the dollar sank to new lows against the euro in the days following March 4, 2008 after a series of dour reports on the U. S. economy and expectations that the Federal Reserve will continue slashing interest rates. Indeed, with the falling of the dollar, prices of all the things bought are rising. The Producer Price Index for one month was up 1. 1% in March with the price of wheat and rice up at least 100 percent than last year. The price of oil reached $114 a barrel and gasoline is also at a new high of $3. 38 per gallon. Purchases of crude oil jumped, reflecting increases in the number of barrels bought and a record price surpassing $100 a barrel on the New York Mercantile Exchange early this year. The U. S. is the worlds biggest consumer of crude oil and higher fuel costs are making imports more expensive (Bloomberg). America is in fact the worst food and energy inflation in two decades and consumers take a direct hit. The pace of job losses in America has been relatively mild compared with previous downturns. However, data showed the economy during February shed the biggest amount of jobs in nearly five years. Because of the high fuel prices, budget airlines are bleeding and are filing bankruptcies resulting to further job losses. Frontier airline was the fourth airlines to do so in just two weeks. There is also slow spending in malls everywhere as increasing number of consumers struggling to make ends meet causing retailers such as Sharper image, Levitz Furniture and stores like Ann Taylor, Zales Jeweler and Footlocker to close. General Electric (GE), second largest company on Earth, reported a 6% loss in income for the first quarter. It was a surprise result that rattled Wall Street with the stocks of GE experiencing its worst one-day loss since the 1987 crash. GE had a lot of trouble selling commercial real state and people are not buying appliances. Economic figures indicate a weakening economy. The Energy Information Administration (EIA) forecast that U. S. real gross domestic product would contract from $11. 577 trillion in the fourth quarter of 2007 to $11. 563 trillion in the first quarter of 2008, then decline to $11. 542 trillion in the second quarter. U. S. Stock prices continue to slip, with the blue chip Dow Jones industrial average closing down at the 12,000-level. Prices for U. S. government bonds also fell, as did the value of the dollar. As waves of bad news began to wash in- foreclosures, tumbling dollar, falling retail sales and more recently investment bank rescues- exporters were the only thing keeping the national nose and lips above the recessionary waters. The decline in the value of the dollar relative to other currencies, notably the euro, has helped make U. S. goods less expensive for overseas buyers and therefore more attractive. This fuelled a healthy global demand for U. S. products and services resulting to earnings from exports rising to a new record (Chandra). So what can be done in order to address the crisis? The government should introduce a fiscal stimulus, which would help create new jobs in 2008, and induce consumer spending through tax rebates in order to keep the economy moving. To try and keep the subprime-mortgage crisis from escalating, the Federal Reserve should propose changes for loans including requirements that creditors should strictly verify a prospective borrower’s income and assets before providing actual loans. The government must offer mortgage advice to homebuyers who may not have understood the risks. Often borrowers did not even realize that their monthly payment would rise if interest rates went up. Subprime borrowers on adjustable interest rates, whose mortgages make up just 7% of the total, accounted for more than 40% of the foreclosures begun in the fourth quarter of last year (The Economist). And if the subprime mortgage crisis gets worse, the government should consider a possible bailout for the housing market. For a long-term solution, a new version of a deliberate program to build up the middle class must be instituted similar in nature with postwar programs like the G. I. Bill, interstate highway system and other measures with job-creating investments in biomedical research, alternative energy, roads, railroads and education (McIntyre). The G. I. Bill, created after World War II, was one of America’s most successful investments. According to the 1988 report for Congresss Subcommittee on Education and Health of the Joint Economic Committee by 1952, the US government had spent $14 billion (1952 dollars) on educational and job training benefits for 7. 8 million veterans. Of these funds, $7 billion was spent on college and graduate school for 2. 2 million G. I. ’s. ? The first benefit from this investment was increased growth in the economy. The report calculated that about 40 percent of those who took advantage of the G. I. Bill would not otherwise have been able to attend college. The extra output those people created in the economy amounted to $35. 6 billion (1952 dollars after factoring out inflation) over the next 35 years. America is in the bleak of a recession and a sound economic plan should be in place to cushion its effect. References Chandra, Shobhana. â€Å"U. S. January Trade Deficit Rises 0. 6%; Exports Gain (Update6)†. Bloomberg. 29 April 2008. 29 April 2008. http://www. bloomberg. com/apps/news? pid=20601087refer=homesid=aynvcWrnI 8w. Doggett, Tom. â€Å"UPDATE 2-U. S. economy to contract in 1st half of 2008 –EIA†. Reuters. 11 March 2008. 2 May 2008. http://www. reuters. com/article/oilRpt/idUSN1148909720080311. Kirchhoff, Sue. â€Å"Fed chief Bernanke defends Bear Stearns deal†. USA Today. 4 April 2008. 2 May 2008. http://www. usatoday. com/money/economy/2008-04-02-bernanke economy_N. htm . Knox, Noelle. â€Å"Falling home sales problem spreads to 45 States†. USA Today. 14 Feb 2008. 2 May 2008. http://www. usatoday. com/money/economy/housing/2008-02-14 housing-q4 nar_N. htm. McIntyre, Jamie â€Å"Tenth anniversary of the Gulf War: A look back† CNN. com In-depth specials Gulf War. 16 Jan. 2001. 24 April 2008. http://archives. cnn. com/2001/US/01/16/gulf. anniversary/index. html. MoneyNews. â€Å"Treasury: Economy May Improve in 2nd Half 2008†. MoneyNews . 24 April 2008. 2 May 2008. http://moneynews. newsmax. com/money/archives/articles/2008/4/24/085350. cfm. Subcommittee on Education and Health of the Joint Economic Committee (1988). A Cost Benefit Analysis of Government Investment in Post-Secondary Education Under the World War II GI Bill. The Economist. â€Å"Getting it right on the money†. The Economist. 3 April 2008. 8 April 2008. http://www. economist. com/displaystory. cfm? story_id=10958702. US Chamber of Commerce. â€Å"The Economy in 2008†. US Chamber of Commerce. 2 May 2008.

The Tudor Life In England History Essay

The Tudor Life In England History Essay People abusing the person in the pilloryThe Pillory and the Stocks; the pillory is a t-shaped box where the victim would place their head and arms inside. As others passed by they would throw food at the person and taunt and jeer at he/she, it was very humiliating. The stocks were used the same way, except that their feet were bound.http://www.duhaime.org/Portals/duhaime/images/pillory.jpg Ducking stools (especially for those women accused of witchcraft); Accused witches, were tested. They were dunked into a river to see if they were innocent or guilty. If the women had floated, they were considered a witch and would be sentenced to be burnt at stake, if they sunk, then they were innocent. Unfortunately if the women were innocent, she would have drowned anyway. Boiling in oil water or lead; (usually reserved for poisoners); for attempted murder you could be sentenced of the punishment of being boiled alive in hot water or lead. Cutting off various parts of the anatomy nose, hands, ears etc; depending on the crimes committed, you could be sentenced to decapitation of your body parts. If someone stole from the market, they could get their hand(s) chopped off. The gossips bridle or the brankThe Gossips Bridle or the Brank; for women who gossiped or spoke to freely, they would place a large iron framework over their heads, which formed a type of cage. There was a metal stripped placed so it could fit inside the mouth, and it would either have been sharpened or placed with spikes to a certain extent so that any movement of the tongue would inflict much pain and damage.woman wearing a brank The Drunkards Cloak; the punishment for public drunkenness, is quite astonishing. The drunk would be forced and fitted into a don barrel and wander through the town while local villagers laughed and taunted the drunk. Big holes were cut for the persons feet, head and arms. Being beaten; for poor Tudors who begged, they would be beaten until they passed the stones that marked the town parish boundary. The result was very gruesome and so were the beatings. Beheading; beheading was considered less degrading, noblemen would generally be placed with punishment of beheading. Sometimes it took several blows just to decapitate the head. The head would sometimes be placed on spikes on the London Bridge or other areas. This punishment was held in public for many to witness. Tudor schools: Not many children attended school, as they were mostly poor or had too much work in their lives (like farming). Although those that did go to school were mainly sons of wealthy and noble families. Remember that only boys would mostly go to school, as it usually wasnt considered worth the money to send a girl to school. Girls would either be kept home, attending with the house work or sent out to make money for their family. There were 2 types of schools in Tudor times The petty school ( teaching young children to read) The grammar school (teaching the children Latin and mathematics, religion etc) Boys began their school at the age of 4 and moved to grammar school when they were 7 years old. Basically it was meant that boys were educated to work, as girls were taught for marriage and operating a household. Boys were to attend 6 days a week. School started at 7:00 am in winter and 6:00 am in summer, both ending at 5:00 pm. This was a very large amount of time spent for the boys. Unfortunately no long holidays were offered to the boys. Schools would close for 16 days at Christmas and a short 12 days at Easter, and there were no summer holidays. A Tudor class could contain up to as many as 60 pupils! Much of the time was spent learning long passages from textbooks by heart, not only would this keep them quiet, but it would also save currency on buying books. The main subjects Tudor classes learnt were: Latin, Arithmetic, Divinity (religious Study), and English literature. Pupils would have to do writing with quill pens made from feathers, which would have to be sharpened frequently to make it work. Teachers were extremely strict with tolerance of the boys. They would often beat the boys with birches if they did wrong. A birch is specially designed type of cane used to inflict a lot of pain. It wasnt a useful method as some pupils would be too scared to attend school because of the beatings. Teachers used to give 50 strokes of the birch. But for wealthy pupils they could afford a whipping boy and whenever the wealthy pupil got in trouble, the whipping boy would receive the consequence. For school sports, it was a custom to bring money on Shrove Tuesday. Where then the schoolmaster would buy a fighting cock and tie it to a post. The game was that the boys where to take turns throwing sticks at the cock. If a boy hit the cock, it was his. If everybody hit the cock it belonged to the school master. Tudor cures/medicines Tudor times were very unhealthy. And from that it produced many illnesses and ridiculous cures. Following are some reasons why many Tudors had health issues : Open sewers ran through the streets and carried many diseases Toilets were only a hole in the ground outside the owners back door. Water came from village pumps, which meant that the water was taken from a local river, and that river would be full of filth from the town. Country people developed their own medicines for a cheap price, using herbs. But would you realise that you are buying from a person who didnt know the importance of washing their hands when handling your medicine. The Tudors did not realise that plagues were carried by fleas, making it harder to produce cures. People who travelled across certain areas carried different diseases that would spread to others and so on, causing a pandemic. The streets and villages were not so well looked after. Homeless people would sleep on the streets; people would get rid of their garbage in unhygienic ways. Littering on the streets was also a problem. These common illnesses had very interesting Methods of curing them: Headache; drink a mixture of lavender, bay, rue, roses, sage and marjoram. Or press a hangmans rope to your head Bad chest; consume a mix of the herbs thyme, campanula and hyssop. Rheumatism; wear the skin of a donkey Gout (swollen foot); capture a red haired dog and boil it in oil, also add worms, pigs marrow and herbs. Make it a mixture and place it on the affected area of the foot Deafness; make a mixture of the gall of a hare and the grease of a fox, then apply in the ear. Baldness; shave the head and smear with the grease of a fox. Or wash the head with a mixture of juice beetles. Or, crush garlic and gently rub it in the head and wash in vinegar. Plague; place the herb, rue alongside your windowsill. Small pox; hang red curtains around the bed of the patient; apparently the red light is the cure. Or burn leather which produces smoke to kill off the plague. Head lice; pour the liquid tobacco juice onto your scalp Jaundice (bad liver); carefully swallow nine lice dipped in ale, continue this each morning for a week. Tudor food: Tudor women, men and children in England drank beer, sherry, mead and cider and milk. This is because the water was not capable of being consumed unless boiled, only very poor Tudors would drink water. Common vegetables in the Tudor period were cabbages, onions, cauliflower, cucumbers, leeks, lettuce, spinach and turnips. The vegetables Brussels sprouts and broccoli were rare in the Tudor period. Common fruits were apples, strawberries, pears, plums, blackberries, melons, raspberries and lemons. It was believed that fruit was not good for you in the 16th century. So the rich ate preserved fruits like apple tarts. The poor could not afford preserved fruits. On certain days by law, Tudors had to eat fish instead of meat. This was made because of religious reasons, but in the Elizabethan era, it was to support the fishing industry as well. Poor Tudors had a dreary and unhealthy diet. They would only have a cooked meal once a day. Consisting of strips of meat or vegetables (if they could afford) also bread, cheese and maybe onions. This would give them very little energy for their day and make them extremely hungry. Their main source of food was bread.https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghODEjb872gbBtSRyjtJlnjYW6DVfxppMf0Ao7mJ7EZAgvb7_Pbh1LlkhnnmYzV0-COouqawJLYX_GnZW-UqCW7sqJ8Rml7Yip4ZI2bN8Kvp5SBlxOf6UzAgTsLUFdCeRNsNVwk6L2hyphenhyphenuO/s1600/Tudor-seamen's-meal.jpg A setting of what a rich Tudor would eatThe rich Tudors could buy or hunt a range of meats. And they could buy rare fruits and vegetables as well. The rich would eat enough meat, but not enough vegetables. They had an unhealthy diet. Many Tudors used spices. Most of the food was heavily salted. It also could disguise the fact of rotten meat. The spices include cinnamon, cloves, salt, garlic, vinegar and sugar. Sugar was a rare luxury; surprisingly it was also used on meat. It sweetened foods and even disguised some that were rotten. During Easter, hot cross buns were made, but not always eaten as they were considered and kept as lucky charms instead. During Christmas, Tudors enjoyed having mince pies. The pies had a great significance as they had ingredients that represented Jesus Christ. Which were raisins, currants, prunes, cloves, mace, black pepper, saffron and a few others. End of the Tudors: Elizabeth (the last of the Tudor line) died at the age of 69, in 24th march, 1603. After her death, many began to reflect one of Englands greatest periods. The Tudor period, lasting 118 years that altered the lives of the English people. http://www.woodlands-junior.kent.sch.uk/Homework/tudors/images/march/life.jpg Tudor Life

Air quality in guangzhou

Air quality in guangzhou 1. Introduction Guangzhou, the capital city of Guangdong Province , is going to hold the 16th Asian Games in November 2010. Athletes and couches coming from 45 countries and regions will participate in the Asian Games which last for more than two weeks. Strongly competent as a host city (Table 1), Guangzhou is famous for its natural scenario of Baiyun Mountain and Pearl River, for its food and beverages, and for an enjoyable lifestyle. Thanks to the event, Guangzhou is now under the spotlight and attracts even more attention from both home and abroad. Table 1 Quick facts of Guangzhou (Guangzhou International 2009) Name Guangzhou / Location Southern China Climate type Subtropical monsoon climate Area 7263 km2 Population (registered residents, 2008) 7.8 million GDP per capita (2008) 11,696 USD However, there is still suspicion about the air quality of Guangzhou. Whether it can sufficiently manage the problem air pollution remains a concern. In 1970s-1980s, manufacturing industry served as an important driver for the development of Guangzhou. Nowadays, exhaust gas of automobiles has become the major source of urban air pollution (He 2009). As a result, atmospheric pollution is not a new problem for the city. To tackle this problem, the municipal government has adopted a series of approaches. It announced to invest 600 million RMB (88 million USD) to lever a total of 2.4 billion RMB within two years to tackle air pollution, and 123 factories were moved or shut down in 2009 because of their heavy pollution to the air. (Yuan 2009) Most importantly, the government issued a three-year plan (2008-2010) with detailed, quantified criteria and clearly defined responsibility is to coordinate collective action to reduce air pollution (Guangzhou Municipality 2008). In such context, this report attempts to review and analyze the recent state of air pollution in Guangzhou, as well as to evaluate its health impact on human. In the end, the report seeks to assess Guangzhous capability hold the Asian Games with satisfactory air quality. 2. Air Pollution in Guangzhou The following figure (Fig. 2) summarizes the state of air in Guangzhou for the last ten years. From 2000, severity of air pollution began to increase, and reached its peak around 2004. Since then, air condition in Guangzhou started to improve and became much better recently. According to a recent analysis (PRDAIR 2009), most part of Guangzhou has reached Grade II in terms of Regional Air Quality Index, or RAQI (Fig. 3), which means concentration of all pollutants are generally within Grade 2 of National Ambient Air Quality Standards. Note: several data points for 2000 and 2009 are missing here due to inaccessibility. Considering the representativeness and accessibility of data, this report choose SO2, NO2 and respirable suspended particulates (PM10 or RSP) as main indicators for air pollution in Guangzhou. Thanks to the citys environmental protection website which reports atmospheric information and data since 2000 (GZEP 2010), enough though not abundant data can be achieved and traced back to specific monitoring stations in the city. It should be noticed that unlike the PRDAIR research result above, the air quality data here are recorded in terms of Air Pollution Index (API), which is based on absolute concentration (e.g. mg/m3). Among these 10 monitoring stations, locations of five of them can be identified in public online mapping system (Google Maps). Considering that the Asian Games is going to be held in November, the report selected monthly average air quality data for November from 2000 to 2009, and present them with station mapping information SO2. Strong policies have greatly reduced SO2 emission, especially restricting policies on heavy industry factories. One most visible example is that 147 polluting firms in the old city centre had been either moved or shut down from 1998 to 2005. In addition, public and private investments in desulphurizing facilities for factories, heating and cooking have also decreased SO2 pollution. (Zhou 2008) By the year of 2009, SO2 concentration monitored at all the five stations are below 50, which reaches Grade II regarding the national air quality grading system. NO2. Reduction in NO2 emission is less significant than that of SO2. In Guangzhou, exhaust of automobile is the main source of NO2 emission (Zhou 2008). Despite the policy which completely bans motorbike from entering central urban area since 2007 (Guangzhou Municipality 2004), NO2 concentration increased again in 2009 after a short-term drop in 2008. Restricting motorbikes has not contributed much to overall NO2 reduction, because people enjoying an increasing income may shift from motorbikes to cars. Moreover, emission from local industry is not controlled as strictly as that of SO2 emission, which also offset the effect of motorbike ban. (Zhou 2008) PM10. Pollution of suspended particulates is relative severe. Even the lowest average level monitored (at Station 4) is above 50. PM10 is a secondary pollutant, and its generation can be traced back to automobile exhausts and industrial activities in the city (He 2009). In 2009, count of days with haze for the first half of year was 96, while for the second half was 14. It is believed that this abrupt decrease is related to aftermath of global financial crisis—reduced manufacturing activity and logistics activity. Though level of PM10 pollution in Guangzhou is lower than many Asian cities (GZEP 2010; ADB 2006), it is as high as three times of the guideline standard of World Health Organization (WHO 2006). In fact, PM10 is closely related to respiratory diseases, which is among main concerns of public health in Guangzhou. Its impact on human health will be examined in the next section. 3. Health Impact of Air Pollution On average, one person takes in 15 m3 of air per day (He 2009). Clean air is thus essential to human health. By 2008, annual average concentrations of NO2 and PM10 have both exceeded the WHO air quality guideline level, and PM10 concentration is slightly above WHOs interim target (GZEP 2010; WHO 2006). According to data from GZEP (2010), PM10 is the major pollutant of air pollution. Moreover, it has the primary health impact on human respiratory organs. A study shows that the harm done by pollution of particulates on body is comparable to that by cigarette smoking (ALA 2009). This might contribute to the fact that rate of lung cancer has not significantly decreased although rate of cigarette smoking in Guangzhou is largely reduced (He 2009). In the short-term, pollution of particulates can be severe, or even death. Besides coughing and wheezing, asthma and dysfunction of lung may also be caused by exposure to particulate pollution. Previous researches have strengthened the relation between short-term to many public health problems. Hong et al. (2002) observe a positive link between increased PM concentration and stroke mortality in Seoul, Korea. Another research in Gaoxiong, Taiwan also implies the relation of particulate pollution with occurrence of strokes (Tsai et al. 2003). Long-term, or chronic exposure to particulate pollutants has significant health impact. According to Pope (2000), long-term particulate pollution can result in one to three years of human life shortening. Health impact of chronic air pollution can be seen in many ways in everyday life of Cantonese people, particularly in elder Cantonese people. Lung cancer has become a common disease in Guangzhou. In 2008, Dr. Nanshan Zhong, director of Guangzhou Institute of Respiratory Disease, discovered through operations that lungs of Cantonese above 50 years old were usually â€Å"black†, even if they did not have lung diseases (He 2009). But one needs to notice that this phenomenon is related to previous rather than present status of air quality in Guangzhou, because it is common only in the above-50 age group. 4. Conclusion: Ready for the Asian Lungs? Venues and infrastructure are being built. Personnel and volunteers are being trained or have already start working. Guangzhou is definitely making an effort to welcome the quests for Asian Games. But whether the air in Guangzhou is ready for the Games remains unclear. On one hand, the problem of air pollution in Guangzhou have caused severe public health problem, and does not have a simple solution. Past research also shows that air quality is worse in winter and spring than in summer and autumn (PRDAIR 2005, 2006, 2007, 2008, 2009). These have all given rise to health concern and may potentially undermine the 16th Asian Games. However, on the other hand, environmental monitoring data indicate that air quality in Guangzhou is improving, and Guangzhou Municipality has implemented a strict air quality management plan with clearly defined responsibility for specific departments. It is also considering some of the successful strategies taken in Beijing Olympic Games 2008. (Guangzhou Municipality 2008) Judging from previous successful experience of SO2 emission reduction and Olympic Games, the new implementation plan seems promising. Therefore, it is still difficult to determine whether Guangzhou will be able to manage its air quality to a satisfactory level and provide the Asian Games with clean air. But regarding the governments strong will to tackle air pollution, it is possible that air pollution could be managed for the Asian Games, but it is highly likely that most of the pollution reduction would be temporary rather than sustainable, and air pollution would slightly rebound after the Asian Games. References American Lung Association (ALA). 2009. State of the Air 2009. New York: Hard Copy Printing. Asian Development Bank (ADB). 2006. Urban Air Quality Management: Summary of Country/City Synthesis Reports across Asia. Philippines: Asian Development Bank. Google Maps. URL: http://maps.google.com. [consulted 3 Feb 2010]. Guangzhou Development District Planning Bureau (GDDPB). 2007. ‘Map of Guangzhou after Adjustment. URL: http://ghj.luogang.gov.cn/old/zcfg/ShowArticle.asp?ArticleID=60. [consulted 5 Feb 2010]. Guangzhou Environmental Protection (GZEP). 2010. Online environmental information reporting and searching services. URL: http://www.gzepb.gov.cn/was40/api/. [consulted 3 Feb 2010]. Guangzhou International. ‘Facts, official website of Guangzhou Municipality. URL: http://www.gz.gov.cn/vfs/web/gzeng_new/Facts.html. [consulted 3 Feb 2010]. Guangzhou Municipality. 2004. Announcement on restricting motorbikes in parts of urban area. Suifu [2004] No. 11. 2008. 2008-2010 air pollution in the implementation of comprehensive improvement plan. Guangzhou. He, L. D. 2009. Cheng shi kong qi wu ran diao cha: Guang zhou zen me le [Survey on urban air pollution: what has happened to Guangzhou?]. Xinmin Weekly, 16 Apr 2009. Hong, Y., Lee, J., Kim, H., Ha, E., Schwartz, J. and Christiani, D.C. 2002. Effects of Air Pollutants on Acute Stroke Mortality. Environmental Health Perspectives 110(2): 187-191. Pope, C. A. 2000. Epidemiology of fine particulate air pollution and human health: biological mechanisms and whos at risk? Environ Health Perspect 2000(108): 713-723. Pearl River Delta Regional Air Quality Monitoring Network (PRDAIR). 2005. A report of Monitoring Results in 2005. Report Number: PRDAIR-2005-1. 2006. A report of Monitoring Results in 2006. Report Number: PRDAIR-2006-2. 2007. A report of Monitoring Results in 2007. Report Number: PRDAIR-2007-2. 2008. A report of Monitoring Results in 2008. Report Number: PRDAIR-2008-2. 2009. A report of Monitoring Results for the Period between January and June 2009. Report Number: PRDAIR-2009- Tsai, S.S., Goggins, W.B., Chiu, H.F., and Yang, C.Y. 2003. Evidence for an association between air pollution and daily stroke admissions in Kaohsiung, Taiwan. Stroke 2003(34): 2612-2616. World Health Organization (WHO). 2006. WHO Air Quality Guidelines for Particulate Matter, Ozone, Nitrogen Dioxide and Sulphur Dioxide (Global Update 2005). Switzerland: WHO. Yuan, D. 2009. Guang zhou tou 6 yi zhi kong qi wu ran [Guangzhou invests 600 million against air pollution]. Nanfang Daily, 6 Jul 2009. The RAQI, used by governments of Guangdong and Hong Kong to jointly report regional air quality, is a composite indicator for measuring the aggregate level of SO2, NO2, ozone and respirable suspended particulates (PM10). The higher the index value, the higher the regional air pollution levels. The index value is in positive relation to the higher the regional air pollution levels. (PRDAIR 2008)

The Wright Brothers Essay -- History Air Flying Fly Flight Essays

The Wright Brothers The world was changed on December 17, 1903 when Orville Wright flew the first airplane for a period of 12 seconds. Orville, born in 1871 and his brother Wilbur, born in 1867 grew up in Dayton Ohio with two other brothers, Reuchlin and Lorin and one sister Katherine. They grew up in a loving family, which helped the brothers with the success in their future. Many people are not aware that much of their knowledge that went into the makings of the airplane came from their mother Susan and the bicycle repair shop they owned. Interestingly, Wilbur and Orville were not the men who first thought of flying. In the 16th century, Leonardo de Vinci had thoughts of a â€Å"flying machine† that was ahead its time, though aeronautical science was still in its infancy. They proceeded to develop new scientific information and practical applications. Wilbur’s confidence in the advancements of aviation is reflected in the following statement said in 1899 â€Å" I am convinced that fligh t is both possible and practical.† Wilbur and Orville Wright made history with the invention of the first effective airplane and changed the world of aviation. Bishop Milton Wright and Susan Katherine Wright raised their five children in Ohio and Iowa. Milton’s ecclesiastical career caused the family to move around frequently. The family started in Dayton, Ohio and moved to Iowa in 1878. They returned to Ohio in 1885. When the boys had a problem they would look to their father for intellectual and scientific advice. Whereas if a toy broke they would go to their mother for mechanical help. Milton and Susan were very supportive of any interests their children pursued. Orville once stated â€Å" We were lucky enough to grow up in an environment where there was always much encouragement to children to pursue intellectual interests; to investigate whatever around curiosity.† Ideas of flying became a fascination at a young age for the boys. A piece of the aeronautical puzzle fell into place the day that Milton, back from one of his church group trips, brought the boys a flying top toy that was made of cork, paper, bamboo, and rubber bands. This little toy broke quickly but Wilbur and Orville always kept the memory of that toy in the back of their minds. With regard to their education, Wilbur did well in school, but was not able to graduate from high school. His mother contracted and died... ...t died in 1948 of a heart attack in his hometown. This same year the 1903 Flyer is admitted into the Smithsonian Institution. The airplanes have come a long way since the makings of the Wright brothers. In 1927 Lindbergh flew across the Atlantic Ocean to Paris in 39.5 hours all by himself. That had never been done before. Nowadays people own their own private jets and planes can carry hundreds of people along with luggage or food. But the Wright brother did more than make it possible for people to fly, they made a connection that many never thought possible. The plane brought separated families together, medicine to the sick in other countries and of course they made travel faster. The Wright brothers turned themselves into revolutionary icons with their determination and passion for the world of aviation. Works Cited Books: The Americans A History, Winthrop D Jordan/Miriam Greenblatt/John S. Bowes To Conquer the Air, James Tobin Articles: Gates, Bill. Top 100 Most Influential People Time Magazine March 29,1999 Wright, Wilbur and Orville. The Wright Brothers Aeroplane September 1908 Internet: The Henry Ford Museum Exhibits, The Wright Brothers July 30th 1995

Thousand Acres Essay -- essays research papers

A Thousand Acres, by Jane Smiley, is a story of incest, ignorance, and the imperialistic voice of the almighty man. Ignorance of being lead by a man, particular views of Rose and Ginny, and domesticated to believe that "When we are good girls and accept our circumstances, we're glad about it. . .When we are bad girls, it drives us crazy" (99). The imperialistic voice usually comes from the omnipotent Larry Cook, Rose, Ginny, and Caroline’s father. And the incestuous relations only entangle this dysfunctional family. The eldest daughter, Ginny, is the most loyal and idolizes her father. The second eldest daughter, Rose, is linked to her father through Ginny, who keeps her from losing faith in him. Rose questions whether the loyalty that Ginny shows her father makes her obedient or if her reluctance to judge him proves her ignorance. Rose has two daughters, Pammy and Linda, who are also first hand witnesses to the episodes of the Cook family trauma, but remain dormant to what goes on around them. Caroline, the youngest daughter has left the one thousand acres of land they grew up on to become a lawyer. Caroline is married to Frank Ras, whom also is a lawyer and they do not have any children. The book is narrated from Ginny’s viewpoint. Ginny is married to Ty and they don’t have any children, but Ginny secretively keeps trying. Ginny also has an extramarital affair with Jess Clark, son of Harold Clark the neighbor and best friend of Larry Cook. Jess has just returned to Zebulon County from the food corp. Given the basic character summary, one of the themes or recurrent ideas that was present throughout the whole book was domination. This domination concept was usually brought to life through the character, Larry Cook, over issues like farming, food, appearance or anything else that didn’t sit well with his expectations in life. Being that domination is not something tangible, conflicts such as the above mentioned were used to develop the theme idea into a concrete representation and also illustrate the effects that the domination theme had on the women of Zebulon County. The whole farming conflict begins when Larry Cook impulsively decides to distribute his one thousand acres of farmland to his three daughters and Caroline, the youngest daughter... ... with his opinions. In this male-dominated culture, it’s as if women are material possessions and the place of women is dependent on men. And at first, the women accepted this. Ginny remarks, "of course it was silly to talk about my point of view. When my father asserted his point of view, mine vanished" (176). And so did her dignity. Larry Cook, Farmer of the Year! In conclusion, the above conflicts portray the domination overtones and the effect that the domination had on the women. Larry Cook seems to be a jack of all trades. He is portrayed as being a god, a businessman, and a farmer. But Larry lacks when it comes to the being, Larry Cook, the father. He is so strict about having things done a certain way with little variations that it blinds him to the wants and needs of those around him. Initially the novel, Ginny suppresses her voice and remained an obedient figure. She has been cultured to believe that a woman has to rely upon the masculine authority figure. As Ginny’s character develops, she begins to break through the mental chains of masculine dependency and start a new life for herself without regret.

Are Cultures Diminished or Enhanced Through the Process of Globalization?

Are cultures diminished or enhanced through the process of Globalization? An essay by Jaclyn Macdonald- 389686 Globalization offers opportunities but presents problems. Connectivity between cultures is developing at an exponential rate. This has ramifications for individual cultures. Increased interaction, principally through new media and greater global mobility creates opportunities to enhance cultures but it carries with it the risk of cultural erosion as external influences may overwhelm attitudes, beliefs and values.Globalization is defined as ‘a process in which worldwide economic, political, cultural and social relations become increasingly connected across time and space’ (Thompson, 1995, 149). Globalization is not a modern phenomenon and has its precedents in the empires of Spain, France and Britain among others. The progressive development of economic and political ties of these colonial powers took decades or centuries to come to realization.The rapidity of th is process has been greatly accelerated by the technological and communication developments of recent decades that have facilitated a dramatic increase in global economic, political, cultural and social integration. Consequently, the world has become increasingly interdependent in the areas of travel, communications, trading and finances, all of which contribute towards frequent cultural interactions and greater mobility of people. Globalization brings about a rapidly developing and ever increasing density of the network of interconnections and interdependencies that characterize present-day social life. Globalization lies at the heart of modern culture; culture practices lie at the heart of globalization. This is the reciprocal relationship’ (Tomlinson, 1999). Globalization alone does not determine the shape and character of culture nor is culture the only influence on globalization. Edward Tyler defined culture as ‘that complex whole which includes knowledge, belief, art, morals, law, custom, and any other capabilities acquired by man as a member of society (Thompson, 1991). The evolution of echnology, primarily new social media, has created opportunities for individuals to choose to embrace or dismiss the aspects of the cultures they are exposed to. Additionally, they can run the risk of losing parts of their own cultures to a wave of foreign influences. ‘One of the most widespread theories of cultural globalization is the idea that the world is becoming more uniform and standardized, through a technological, commercial and cultural synchronization emanating from the West’ (Lange, Meier, 2009, 56).Theorists who support cultural homogenization insist that the spread of globalization has lead to an erosion of cultures and traditions. This view infers globalization to be a euphemism for western cultural imperialism, proposing ethnocentricity will eventually eradicate individual cultures. Identity is commonly deemed fundamental to huma n experience ‘Identity is people’s source of meaning and experience’ (Castells, 1997: 6). The ethnocentric view does not recognize that globalization invariably causes individual culture as David Morley comments, migrants ‘moved from a world in which . . identity was not a central concern, to one in which they were pressed . . . to adopt a particular form of individuality’ (Rantanen, 2005). Manuel Castells writes; ‘Our world and our lives are being shaped by the conflicting trends of globalization and identity’. Opposing homogenization theories, Castells explores ‘the widespread surge of powerful expressions of collective identity that challenge globalization . . . on behalf of cultural singularity and people’s control over their lives and environment’ (Castells, 1997: 2).While homogenization theorists suggest that a ‘global culture’ will dominate all others, Castells proposes that the need for identity d rives cultures to remain individual and as such, globalization thus proliferates cultural identities rather than diminishing them. Global homogenization has an impact on culture by directly affecting the production and use of commodities, social relationships, and the dominance of religion in societies. Homogenization†¦ does not affect how people relate to each other and how they find meaning and purpose in life. It leaves largely untouched the freedom and agency of the subjects in the creating and changing culture, both as individual and as groups (Friedman, 1994). Increasing global mobility has produced a fear of the deterioration of cultures however, people are not merely objects of cultural influences but rather, subjects able to consciously discard or assimilate culture. This choice to embrace culture is now augmented.Integrating cultures can contribute to increasing nationalism due to the human need for sense of belonging and identity, Hall writes; ‘when the era of nation-states in globalization begins to decline, one can see a regress to a very defensive and highly dangerous from of national identity which is driven by a very aggressive form of racism (Rantanen, 2005; 97). Nationalism has thrived to accomplish this sense of belonging throughout history and though national identity may not be everlasting it remains today despite increased global mobility.National identities no longer rely on physical location due to media facilitation as people have gained the ability to communicate and access information to connect to their nation. International students at the University of Melbourne encounter this threat to their national identities. They are submerged in a new location for three years or more with cultures incongruent to that of their homeland. They are faced with the diversity of cosmopolitan Melbourne and the culture of the university itself. Isolated from their native culture, international students would easily become overwhelmed by th e lifestyle of their new surroundings.However, through communication programs like Skype, Facebook, and Twitter they are able to stay in closer contact and with greater ease than students in previous times. People of individual cultures naturally relate to others who share their culture and this bond is immediately apparent when viewing the social relationships on the Melbourne University campus. Students of similar backgrounds, ethnicities and languages can often group together on the university campus, insulating themselves from other cultures.Some groups speak in their primary language in order to distinguish themselves from others and of course to communicate more effectively. The difficulty inherent in this is that language can be divisive as well as inclusive. It can be a deterrent to other students initiating a conversation if they feel excluded. Cultural interaction in tutorials is less divided than in the open and unsupervised areas of campus. Though friendships are often f ormed between those of similar cultures, the interactive style of learning typically deems social groups irrelevant.Students necessarily have to communicate more in tutorials with other people. Australia’s tertiary institutions ‘have an important role to play in the shaping of young peoples’ identities and in the development of active citizenship in an increasingly multicultural and globalized society’ (Mansouri, Lobo, 2011). Multicultural tertiary campuses can offer many advantages for their students by facilitating greater social understanding of cultural differences and similarities. Creating a educational environment which nurtures and manages cultural diversity effectively is not an easy task. This management depends on the professional management and governance of teaching and learning activities’, which allows students to develop their full potential’ (Grobler et al. 2006). Increasing numbers of international students have brought abou t a level of insecurity driven by the belief that common values are being eroded because they are distanced from their native lifestyles. The concept, termed deterritorialization, explains the way in which events outside of our immediate localities, ‘action(s) at a distance’ – are increasingly consequential for our experience.Students with migrant backgrounds, who were born in Australia or have lived here for many years, ‘may have issues with their hybrid identity; mediating between two cultures, that of their parents and that of mainstream Australian society’ (Butcher, 2004; 215-216). Specifically, it is argued that people worldwide now develop a bicultural identity, which distracts from their local heritage. When students leave their home country to study in Australia, they are breaking the physical connection to their local heritage. Modern culture is less determined by location because location is increasingly penetrated by ‘distanceâ€℠¢ (Giddens, 1991).Before the advances of communication technologies, people were only aware of their physical surroundings, which limited their reception of information and cultural influences. ‘Places provide an anchor of shared experiences between people and continuity over time†¦ It enables people to define themselves and to share experiences with others and form themselves into communities’ (Bennett, 1998, 103). Global mobility has increased through the process of globalization, which breaks the physical bond between cultural groups.Modern technology works to reconnect people through communication rather than place. ‘In conditions of modernity, place becomes increasingly phantasmagoric: that is to say, locales are thoroughly penetrated and shaped in terms of social influences quite distant from them. (Giddens, 1990: 18-19)’. The customary method of social interaction has in many cultures progressed into global online communication rather than tradi tional face-to-face interaction. The change in interaction method has produced new social relationships. The decreased need for place in communication is evolutionary in culture.People are no longer determined by their physical surroundings as technology provides them with a choice of the information they receive. ‘When we communicate through telephone, radio, or computer, we are physically no longer determined by where and who we are socially (Meyrowitz, 1985: 115). The processes of globalization has evolved concurrently with media technologies, causing telecommunications to be described as the ‘central nervous system’ of the very process of globalization (Castells 1996, Mansell 1994). Media is vital for providing cultural and symbolic resources worldwide, contributing to its success.Barker has observed, ‘globalization has increased the range of sources and resources available for the construction of identity’ (Barker, 1997). According to many theori sts, the sense of place has been fundamentally changed by the arrival of media and communications. ‘Our world is becoming senseless to many because, for the first time in modern history, we are relatively without place; we are part of a global world’. (Meyrowitz, 1985). What many theorists of place have failed to acknowledge is the increasing connectivity, not only between global places, but also within places.Audiences ‘naturally gravitate towards programming choices that appear most relevant or proximate to their own context and thus allow them to seek the pleasure of recognition of their own culture’ (Straubhaar, 1991) or ‘ultimately people like to see something close to their lives’ (Hong, 1998). The process of globalization creates many benefits for enhancing cultures. The evolution of technology, has most significantly, created opportunities for individuals to view culture as a preference rather than compulsory.People are now able to make an informed decision about their adoption of culture through increased information access, ‘the combination of economic, technical, social and cultural resources held by media organizations had meant that ‘quantatively and qualitively†¦ the media have established a decisive and fundamental leadership in the cultural sphere’ (Hall, 1977, p. 341). Many external influences threaten to diminish cultural individuality however; it is the evolutionary influence of globalization, which has allowed culture to be an individual’s choice, which truly enhances culture. References Appadurai, Arjun. Modernity at large: cultural dimensions of globalization. Minneapolis, Minn. : University of Minnesota Press, 1996. †¢ ? Barker, James, Bernard William Tenenbaum, and Fiona Woolf. Governance and regulation of power pools and system operators an international comparison. Washington, D. C. : World Bank, 1997. †¢ ? Bennett, David. Multicultural states rethinking difference and identity. London: Routledge, 1998. †¢ ? Castells, Manuel. The rise of the network society. Malden, Mass. : Blackwell Publishers, 1996. †¢ ? Castells, Manuel. The power of identity. Malden, Mass. Blackwell, 1997. †¢ ? Coppens, Peter. Ideal man in classical sociology: the views of Comte, Durkheim, Pareto, and Weber. University Park: Pennsylvania State University Press, 1976. †¢ ? Durkheim, Emile, and George E. G. Catlin. The rules of sociological method. London: Royal National Institute for the Blind, 1976. Print. †¢ ? Flew, Terry. Understanding global media. Basingstoke [England: Palgrave Macmillan, 2007. †¢ ? Friedman, Jonathan. Cultural identity and global process. London: Sage Publications, 1994. †¢ ? Giddens, Anthony. â€Å"Chapter 2. † The consequences of modernity.Stanford, Calif. : Stanford University Press, 1990. 18-19. †¢ ? Giddens, Anthony. Modernity and self-identity: self and society in the late modern age. Stanford, Calif. : Stanford University Press, 1991. †¢ ? Hall, Alex. Scandal, sensation, and social democracy: the SPD press and Wilhelmine Germany 1890-1914. Cambridge: Cambridge University Press, 1977. †¢ ? Hall, Stuart. Modernity and its futures. Cambridge: Polity Press in association with the Open University, 1992. †¢ ? Hall, Stuart. Modernity and its futures. Cambridge: Polity Press in association with the Open University, 1992. ? Hong, Junhao. The internationalization of television in China: the evolution of ideology, society, and media since the reform. Westport, Conn. : Praeger, 1998. †¢ Lange, Hellmuth, and Lars Meier. The new middle classes globalizing lifestyles, consumerism and environmental concern. Dordrecht: Springer, 2009. †¢ ? Mansell, Robin E.. The Management of information and communication technologies: emerging patterns of control. London: Aslib, 1994. †¢ ? Mansouri, Fethi. Migration, citizenship, and intercultural relat ions: looking through the lens of social inclusion.Farnham, Surrey: Ashgate, 2011. †¢ ? Meyrowitz, Joshua. No sense of place: the impact of electronic media on social behavior. New York: Oxford University Press, 1985. †¢ Rantanen, Terhi. The media and globalization. London: SAGE, 2005. †¢ ? Straubhaar, Thomas, and Klaus F. Zimmermann. Towards a European migration policy. Munchen: Volkswirtschaftliche Fakultat der Ludwig-Maximilians-Universitat Munchen, 1991. †¢ Thompson, J. B. The Media and Modernity. Cambridge: Polity. 1995. †¢ ? Tomlinson, John. Globalization and culture. Chicago: University of Chicago Press, 1999.

Structuring Repsol’s Acquisition of YPF

How significant are the expected synergies and restructuring effects? Please prepare an estimate of the value of these.For Repsol and its shareholders, the YPF acquisition deal is seen as an ideal strategic match. The Spanish oil company gets most of its revenues from activities like refining and gasoline stations, and must buy much of its crude oil from others, while YPF owns substantial reserves because its activities are dominated by exploration and production of oil. As a united company, Repsol will have a much better balance of business, quadrupling its reserves, and vaulting into the big leagues of the top 10 international players. But with the reserves of YPF, it will instead benefit from rising prices, and expand its activities to other countries in Latin America.Repsol-YPF seeks to achieve a balance between upstream and downstream operations, position itself as a market leader in Latin America, achieve operating and capital expenditure synergies and consolidate its business scale and financial strength. As part of its integration strategy, Repsol-YPF will begin to dispose of select assets which do not correspond to its core businesses outlined above or to its core geographic areas which include Spain, Latin America and North Africa.Synergies Estimate Cost savings after tax of $350 million by 2000, 1.6% cost savings in 1998, reduction in capital expenditure from $15.6 billion to $13.6 billion, reduced finding costs by 25.0%, as a result of decreased test drilling activity and the implementation of new technology, and lifting costs by 4.6%, as a result of synergies with YPF’s operations and increased levels for gas production, which has lower lifting costs than oil production, divesting non-core assets to yield $2.5 billion in 2002.2) Please assess the price that Cortina proposes to offer to YPF  shareholders. At $44.78 per share, would Repsol underpay, overpay, or just offer a fair price?Attached Excel,The price of $44.78 per share was a fair p rice as there was a strategic fit and synergies between the two companies. YPF was focused on upstream and thus balanced Repsol’s downstream activities.In the attached excel, I performed valuation of YPF by subtracting PV of Repsol from PV of Repsol-YPF combined with synergies at WACC of 10.9% (all debt financing).I got the value as 10.472 billion dollars./ The additional (13 billion- 10.472 billion) is the premium which Repsol is paying for geographic and business diversification.Adj PV Formula used by me: EBIT– Taxes on EBIT =Net Operating Profit After Tax (NOPAT) + Non cash items in EBIT – Working Capital changes – Capital Expenditures and Other Operating Investments =Free Cash FlowsTake Present Value (PV) of FCFs discounted by Return on Assets % (also Return on Unlevered Equity %) + PV of terminal value =Value of Unlevered Assets + Excess cash and other assets =Value of Unlevered Firm (i.e. firm value without financing effects or benefit of interest t ax shield) + Present Value of Debt's Periodic Interest Tax Shield discounted by Cost of Debt Financing % =Value of Levered Firm3) Please assess the current pricing of Repsol shares in the market. Is Repsol undervalued, overvalued, or just fairly valued in the global equity markets at this time? Is now a good time to issue Repsol shares?From Exhibit 11, the current price of Repsol stock is 18-19 $ per share. Actual Value of Repsol share is 7010/900 = $7.78per share from Exhibit 3.Using valuation using DCF, I arrived at $ 22.33 per share for Repsol(attached Excel). Hence it is fairly valued.4) Compare the relative advantages and disadvantages of offering to the shareholders of YPF either (a) cash or (b) shares of Repsol. If you were a shareholder in YPF, which form of consideration would be more attractive (assuming that the amount of consideration would be constant at $44.78 per share)?Advantages of cash financing are Cheaper than equity, tax benefits from tax shields, Decrease in co mbined cost of capital, creating value for shareholders, largest fixed income offer.Disadvantages of cash financing are Sudden increase in Repsol’s leverage, downgrade in debt ratings, increased cost of debt, inability to meet future unforeseen financial requirements, probability of default, sensitive to price changes, signaling to investors, shorter maturity period and uncertainties.Advantages of stock financing are Expand its unused debt capacity, prepared for aggressive growth via acquisitions, maintain coverage ratios and credit ratings.Disadvantages of stock financing are Reduced EPS due to dilution, more business risk, dependence on Repsol’s share price, clash in investors’ interests between shares of developed and developing economies.Cash financing is a better option for shareholders of YPF as they would  receive a fixed price and would not participate in additional gains or losses post acquisition.5) Whether or not you favor a cash-based offer for YPF , please compare the relative advantages and disadvantages of the (a) all-debt-financed cash offer, (b) all-equity financed cash offer, and (c) blended financing of debt, preferred stock, and equity. How significant are variations in default risk in the assessment of the financing alternatives (see case Exhibit 10)?Attached Excel sheet,Considering Country Risk, all debt financing gives the highest valuation of Repsol-YPF and variation due to risk is least in all debt financing offer.Considering minimum Country Risk, all equity financing gives the highest valuation of Repsol-YPF but variation due to risk is highest in all equity financing offer.Blended financing gives minimum variation in valuation of Repsol – YPF . The variations in default risk are significant in assessing the alternatives as that affects WACC and hence valuation.6) What course of action would you recommend that Alfonso Cortina adopt regarding form of payment and financing for the tender offer for YPF? On wh at â€Å"key bets† does your recommendation depend?Cortina should make an all cash payment to acquire YPF at 44.78$ per share to avoid the disadvantages of equity financing and also considering bylaws of YPF.Repsol’s strategic plan is based on three fundamental premises: growth, transformation of portfolio and profitability. The primary objective for Repsol is to guarantee sustainable dividend growth for its shareholders.Repsol will implement a strategy of profitable growth for all of its businesses, based on the optimisation of existing projects, the development of new projects, and the analysis of possible business opportunities in areas of interest to the company. It states that the downstream business which includes chemicals will contribute solid growth and stable cash flow for the company.The Repsol chemical business is believed to hold a ‘sound position in international markets', strengthened by a high integration with the refining and exploration and prod uction business areas, access to competitive technologies and the company's ongoing efforts in cost contention.7) In general, what is the influence of deal financing on other aspects of M&A deal design?A widely used approach to evaluating financing alternatives is the FRICTO framework. The framework can help to identify trade-offs along six dimensions:Flexibility: the ability to meet unforeseen financing requirements as they arise. Flexibility may involve liquidating assets or tapping the capital markets in adverse market environments or both. Flexibility can be measured by bond ratings, coverage ratios, capitalization ratios, liquidity ratios, and the identification of salable assets. Risk: This is the predictable variability in the firm’s operating cash flow. Such variability may be due to both macroeconomic factors (e.g., consumer demand) and industry- or firm-specific factors (e.g., product life cycles, biannual strikes in advance of wage negotiations).To some extent, pas t experience may indicate the future range of variability in earnings before interest and taxes (EBIT) and cash flow. High leverage tends to amplify the impact of these predictable business swings—this amplification is what is commonly called leverage. In theory, beta should vary directly with leverage. The firm’s debt rating will provide a second external measure of risk of the firm. Income: This compares financial structures on the basis of value creation. Measures such as DCF value, projected ROE, EPS, resulting price/earnings ratio, and cost of capital indicate the comparative value effects of  alternative financial structures.Finance theory tells us that (all else equal) the value-maximizing capital structure is also that which minimizes the weighted average cost of capital. Thus, the analyst can devote attention to the capital cost resulting from the different financial structures. Finally, economic profit, or EVA, summarizes the joint impact of capital structu re, investment, and operating profit effects. Control: Alternative financial structures may imply changes in control or different control constraints on the firm as indicated by the percentage distribution of share ownership and by the structure of debt covenants. Significant investors will be sensitive to the dilution in their voting position in the firm, implied by different acquisition financing alternatives.Timing: This asks the question of whether the current capital market environment is the right moment to implement any alternative financial structure, and what the implications for future financings will be if the proposed structure is adopted. The current market environment can be assessed by examining the Treasury yield curve, the trend in the movement of interest rates, the existence of any windows in the market for new issues of securities, P/E multiple trends, and so on.Chiefly, one wants to look for evidence of over- or undervaluation of securities in the capital market . Sequencing considerations are implicitly captured in the assumptions underlying alternative DCF value estimates and can be explicitly examined by looking at annual EPS and ROE streams under alternative financing sequences. Other: Since no framework can anticipate all possible effects, the â€Å"O† reminds the analyst to consider potential idiosyncratic influences on the decision. Two such items are investment liquidity of the owners and estate planning considerations. As these examples suggest, such considerations tend to be more influential in smaller and privately held firms. However, a major â€Å"other† consideration for large publicly traded firms is the signaling content of their financial choices.The issuance of equity is typically accompanied by decreases in share prices; issuance of debt is accompanied by increases. One interpretation of this result is that the type of financing signals optimism or pessimism about the future by insiders in the firm.This fram ework can be used to indicate the relative strengths and weaknesses of alternative financing plans. To use a simple example, suppose that your  firm is considering two alternatives for financing an acquisition: a new issue of debt to fund a cash payment or a new issue of equity in exchange for the target’s shares. Looking across each row, the decision maker can determine which alternative dominates on each criterion.The debt structure is favoured on the grounds of income (perhaps reflecting debt tax shields and no share dilution), the absence of voting dilution, and today’s interest rate conditions. The equity structure is favoured on the grounds of flexibility, risk, absence of covenants, today’s equity market conditions, and the long-term financial sequencing benefits.THINK LIKE AN INVESTORThe definition of a good capital structure would be one that maximizes shareholder value. This structure will also minimize the weighted average cost of capital and maximi ze the share price and value of the enterprise.