Socrates Philosophy Essay Example for Free

Socrates Philosophy Essay And now, Athenians, I am not going to argue for my sake, as you may think, but for yours, that you may not sin against the god, or lightly reject his favor by condemning me. For if you kill me you will not easily find another like me, who, if I may use such a ludicrous figure of speech, am a sort of gadfly, given to the state by the god; and the state is like a great and noble steed who is tardy in his motions owing to his very size, and requires to be stirred into life. (Socrates, The Apology) Socrates also refers to himself as a gadfly because he bites, and buzzes at the self-satisfied, which, indebted them to consider matters of virtue. He is also like a gadfly because he is likely to get swatted away because of his bite or words of wisdom. His job was to sting the sleeping horse of the Athenian conscious into wakefulness. Socrates said he was doing a service to the Athenian people by bringing them into reality. What Socrates meant by bringing them into reality was that he was enriching the people with questions and problems that made them think. He wanted them to think for themselves and not just agree with other people like the rich and powerful. He wanted the people to not be scared to think for themselves and he wanted them to learn. When Socrates refers to himself as a gadfly during his trial, he means that he is like an examiner of things. He said that he was given to the state by the god.(Socrates, The Apology) He means by this that he was put here to ask questions to examine life and its surroundings. Socrates is like a gadfly because he pesters his objects or people to hopelessness. He asked so many questions and his questions were so profound and intense, that many people became annoyed at him because they probably could not answer them because they were either too scared to answer them (because they knew that Socrates would probably ask another question on top of the first question if they were able to answer it), or they were just to confused to answer the question Socrates had asked. When Socrates referred himself to a gadfly, it opened up a window to new generations of philosophers who, acted like gadflies themselves. Everywhere we look, we see humanitys philosophical side waking up. People nowa days are asking more questions. I think one of the biggest philosophical questions is where did we come from? Why are we here? What is the meaning of life? From Socrates, we have learned a way to ponder these questions and to come up with our own answers. The role of philosophy is important because people need to ask questions to understand life and reality and what is going on around them. I think that asking questions and trying to find the answers to them makes our souls grow and be healthy. We need a healthy soul to be alive. Socrates wanted people to not be ignorant because he said that was unhealthy for the soul. The only way to not be ignorant is to ask questions. And that is exactly what Socrates did. I think that the whole ordeal of Socrates says that the conduct of philosophy changes. Philosophers conduct themselves in a manner to which they are essential and irreplaceable because of their minds, they have a great presence about them, and they dont criticize others for their beliefs, except for Socrates. On the other hand, people who listen to philosophers or go against them, sometimes are rude, they are ignorant, and they dont understand the point a philosopher is trying to make. The conduct of philosophy depends on the person and how they view things. The conduct of philosophy is like the conduct of gadflies because many people get annoyed by the philosophers because of their questions. By how in depth the questions are and by how many questions the philosophers ask. Some people think that philosophers are bothersome. In conclusion, I think all of these things and other things help to define what philosophy is today. If we didnt have people like Socrates and Plato and other great philosophers, where would we be to day in the realm of philosophy? Would people actually want or learn to question certain subjects? I think that if they hadnt ever been born, then we wouldnt think for our selves, or think great thoughts. We would be living in a pretty boring world.

Ministers Black Veil - Poverty in the Tale and in the Life of the Auth

â€Å"The Minister’s Black Veil† – Poverty in the Tale and in the Life of the Author  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚        Ã‚  Ã‚  Ã‚   Henry Seidel Canby in â€Å"A Skeptic Incompatible with His Time and His Past† mentions of Hawthorne that â€Å"human failures and their causes were more interesting to him than prophecies of success, one might truly say than success itself. †¦He was not, I think, really interested in escape, except in moods of financial discouragement. . . . (57). Nathaniel Hawthorne’s â€Å"The Minister’s Black Veil† embodies traits of the modest lifestyle which the author had to subject himself to because of inadequate finances through most of his life. In addition to the monetary impoverishment there was an additional artistic impoverishment which sorely restricted the materials from which he could choose for his literary works.    Hawthorne’s impoverishment probably began with the untimely death of his father, and continued until 1857. He had no money for a college education. Gloria C. Erlich in â€Å"The Divided Artist and His Uncles† states that â€Å"Robert Manning made the essential decisions in the lives of the Hawthorne children and is well known as the uncle who sent Hawthorne to college† (35). After graduation from Bowdoin College Hawthorne spent twelve years in his room at home in an intense effort to make something of himself literarily. The Norton Anthology: American Literature states:    Hawthorne’s years between 1825 and 1837 have fascinated his biographers and critics. Hawthorne himself took pains to propagate the notion that he had lived as a hermit who left his upstairs room only for nighttime walks and hardly communicated even with his mother and sisters (547).    Sculley Bradley, Richmond Croom Beatty and E. Hudson Long in â€Å"The Soc... ..., 1996.    Erlich, Gloria C. â€Å"The Divided Artist and His Uncles.† In Readings on Nathaniel Hawthorne, edited by Clarice Swisher. San Diego, CA: Greenhaven Press, 1996.    Hawthorne, Nathaniel. â€Å"Young Goodman Brown.† 1835. http://www.cwrl.utexas.edu/~daniel/amlit/goodman/goodmantext.html    James, Henry. Hawthorne. http://eldred.ne.mediaone.net/nh/nhhj1.html    Lewis, R. W. B. â€Å"The Return into Time: Hawthorne.† In Hawthorne – A Collection of Critical Essays, edited by A.N. Kaul. Englewood Cliffs, NJ: Prentice-Hall, Inc., 1966.      Ã¢â‚¬Å"Nathaniel Hawthorne.† The Norton Anthology: American Literature, edited by Baym et al.   New York: W.W. Norton and Co., 1995.    Swisher, Clarice. â€Å"Nathaniel Hawthorne: a Biography.† In Readings on Nathaniel Hawthorne, edited by Clarice Swisher. San Diego, CA: Greenhaven Press, 1996.         

Nigeria Labor Practices and Policies

For the past years the company has been experiencing hampered development in terms of production and distribution of our clothing line. This slow setback has been seen as a result of inadequate marketing railing against exposure and product brand recall. Erroneous decisions in market positioning have also been some of the factors that resulted to poor outcome thus hindering the company's gain for profit. This paper is geared towards exploring new avenues with regards to new locations in the clothing line market. We would try to investigate three referred locations in countries in Latin America and Africa, namely Bolivia, Sri Lanka and Nigeria. As part of our initial recommendation, this paper would be focusing its first part of the report to the country of Nigeria. Based on preliminary investigation done, Nigeria is being viewed as the most conducive and most advantageous among the three countries in this case study. All of the necessary issues and concerns would be tackled and be briefly discussed on the foregoing items. Like any other sovereign country, labor policies in Nigeria are being controlled and monitored by the government. Labor union practices are allowed by the state, as part of the international community, Nigeria has signed and ratified the International Labor Organization's (ILO) convention on freedom of association and the creation of labor union. however, prior (military) rulers recognized a single central labor body, the Nigerian Labor Congress (NLC), thereby de-legitimizing other unions. Except for members of the armed forces and selected employees essential by the government, Nigerian workers in all levels may join trade unions and strike. Employees essential to government operations include firefighters, police, employees of the central bank, the security printers (printers of currency, passports, and government forms), and customs and excise staff. Collective bargaining is widespread in many sectors of the economy. Nigerian law specifically the Nigerian Industrial Courts, an independent arm of the judiciary protects workers from retaliation by employers for labor activity. In terms of the protection of Nigerian Children against child labor, Nigeria's 1974 labor decree prohibits employment of children under 15 years of age in commerce and industry and restricts other child labor to home-based agricultural or domestic work. The law further stipulates that no person under the age of 16 may be employed for more than eight hours per day. The decree allows the apprenticeship of youths under specific conditions Labor laws in Nigeria also enforce strict compliance on the safety of its workers. Just compensation for injured workers and dependent survivors of those killed in industrial accidents are rigorously being imposed on employers. Cultural Attitude Towards Women and Children As in many ethnically diverse countries, women's role in Nigeria is based on ethnic and regional differences. Majority of the Nigerian women that are still secluded under Islamic beliefs and principles are commonly less educated and sometimes hindered from formal education. Most of urban Nigerian Women are working as stall vendors operating small stalls. Even in elite families of the society, Nigerian women's presence in social gatherings and other functions are either non-existent or very controlled. However, in contemporary times Nigerian women's presence in modern society is rising but is still a long foreseeable future for Nigerian women's role in a country dominated by the principles of old of the male gender. Children are treated as a part of the minority of the society. As mentioned on labor laws being enforced by the government, children are allowed to work providing they are not below 16 years old. In western nations the legal working age of children or minors are 18 and above, this fact just shows that opportunities for children to work is open at a younger age in Nigeria. At present, Nigerian fashion is greatly influenced by both Nigerian ethnic culture and western influence. The presence of diverse style in terms of influences has come a long way in Nigerian fashion. Many noted personalities in the country evolved as icon in the Nigerian fashion industry, many of them have international recognition. Nigeria has designers like Maufechi, Divine, Monami, Kess Jabari, Meggito to mention a few. The presence of Nollywood, the cinematic center of Nigeria similar to that of Hollywood serves as a typical role model to the existing fashion statements in Nigeria. Opral Benson, an African fashion designer par excellence describes fashion as; â€Å"Fashion is continuously changing. You cannot compare the fashions of these days†¦.. Fashion is something which is local, national and international. In short, fashion all over the world is a quite dynamic phenomenon. Fashion trends evolves from ethnic to modern styles, rejuvenating the fashion of early years in Africa towards the influences from Europe and Western countries specifically Afro-American fashion statements from the US. Famous brands from western designers like Versace and Tommy Hill Figger is presently being adored by upper class society in Nigeria, thus only proving that blends in fashion is striving gracefully in the country. Nigeria being the most populated country in the African Continent is considered as a third world developing country. Its people are ethnically divided and have some 250 ethnic groups, with varying languages and customs, creating a country of rich diversity. According to Country Studies, US ; About 70 percent of all Nigerians were still living in farming villages in 1990, although the rural dwellers formed a shrinking proportion of the later force. It was among these people that ways of life remained deeply consistent with the past. Nigerian economy is at its recovery and development stage and is presently undergoing massive reforms to uplift the countries economic standing. The importance of formal education has been one of the primary concerns of the Nigerian Federal Republic and has become the largest social program of the government. At present more than 47% of the age group of 5 to 14 years old have attended primary to secondary schools. The secondary level age-group (ages fifteen to twenty- four) represented approximately 16 percent of the entire population in 1985. English is the official mode of instruction above the secondary level of education. Federal Republic is the form of government of Nigeria. Historically, Nigeria re-achieved democracy in 1999 after a sixteen-year-long interruption by a corrupt and brutal series of military dictators and counter-coups. Corruption is still one of the worse problems that the government is facing. Nevertheless and as always in a third world government, new reforms are being undertaken to subdue art of this problem. The Club of Paris considers the economic reforms and policies of the present government under the leadership of President Olu gun ? basanj? is being considered strong and formidable. With a positive outlook, it must be important to note that the prevailing advantageous situation existing in the Federal Government of Nigeria is in sum conducive and serves as a credible prospect to establish a boutique and a manufacturing plant. The existing labor laws of the country are favorable to the type of employment that the plant will need in its operations. The improving educational level of attainment and literacy rate of the prospective employees will be a key factor in streamlining plant and factory operations. The countries demographics being the largest population in West Africa and social conditions as mentioned on previous case finding points out considerably fair in attaining production growth in terms of sales and distribution of primary clothing line. Government reform policies in its economy and foreign policies will trigger our company's goal to expand and export high quality products produced in the Nigerian based manufacturing plant. Last but not the least, the high fashion sense of Nigerians in terms of garments, in diverse influence and style will be a vast market for our products. The presence of a moving industry like Hollywood will serve as a high level market trend setter that would provide consistent promotion of our clothing line. In summation, Nigeria will not only serve as a good place to establish a manufacturing plant but will also provide the company s a vast market to distribute our products. A country situated in central South America with the present Unity Government headed by President Evo Morales of the Movement Towards Socialism (MTS) Party. The country is highly dominated by indigenous people of Bolivia comprising almost 65% of its population. Bolivia experienced several military government takeovers in the past 5 decades. In terms of Economy, Bolivia is one of the least developed countries in South America and remains to be the poorest among its neighboring nations. Around 65% of the countries population are considered agriculturally dependent and still lives in poverty. The social condition of Bolivia hinders its opportunity to grow as nation. With a large number of grievances coming from the majority of Bolivian indigenous people, ranging from issues like poverty, labor disputes, political issues among other things. Bolivia is still experiencing traditional division of classes of which the working class remains to be in destitute. Political instability has been also a great factor in the slugging economy of the country. The presence of several political parties with contradicting policies and principles thwarts the countries emancipation from political turmoil. Disputes between labor and the state deepened under military rule. Bolivia was a country torn apart by regional, ethnic, class, economic, and political divisions. In terms of education, the present negative standing of Bolivian Government delays the development of general education in the country. Data from US Country Studies on Bolivia detects; Dropout rates also remained extremely high. Only one-third of first graders completed the fifth grade, 20 percent started secondary school, 5 percent began their postsecondary studies, and just 1 percent received a university degree. Dropout rates were higher among girls and rural children. Only about 40 percent of rural youngsters continued their education beyond the third grade. Since poverty is the primary problem of the country, the overall spending of an average family relatively allotted to basic necessities such as food and shelter. Overall the obstructing difficulties surrounding Bolivia's national predicament and dilemma have made our conclusion that the country is the least among the three case study countries to establish a manufacturing plant and boutique. A country founded in the midst of racial difficulties, diversified religion and relatively unstable political system. Having a similar caste system as India, its mother nation, social divisions have had a direct and weighty impact on politics. These obstacles have produced several civil wars and created dent on the national standing of Sri Lanka for the past decades. Ethnic rivalries also add unstable issues among political parties. Unsound political situation and issues regarding security have been a part of the struggle of the economic standing of Sri Lanka. Violence has continued to dominate its criminal and justice system. Enforcement of labor laws and policies are still being considered by analyst as inconsistent. Labor unions are highly politicized with a variety of organizations representing different political parties. With regards to factory and manufacturing operations, certain holidays, cultural and practices such as the working time frame of women deter and delays production. Education, however, have been a primary concern of the government. In the modern educational system of Sri Lanka, within the last four decades the rate of literacy went up to 46%, the number of schools increased by 50%. Teachers place second as part of the government workforces next to the plantation workers. With some positive notes on the standing of Sri Lanka, still the matter of security risk and political and social class instability contributes highly to the reason why our team rejected the country as a prospective location to set up and establish future manufacturing plant and boutique for our new clothing line. If such conditions and issues would be addressed in the near future, Sri Lanka might be considered and be included in future studies.

Exchange Rate Exposure And Systems In Emerging Markets Finance Essay - Free Essay Example

Sample details Pages: 12 Words: 3631 Downloads: 1 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? Exchange rate is the rate of one currency into another. In other words, it has the value of the currency of another country than their own. If you are traveling to another country, you need to buylocal currency. Don’t waste time! Our writers will create an original "Exchange Rate Exposure And Systems In Emerging Markets Finance Essay" essay for you Create order Like any asset prices, the exchange rate is the price, you can buy that currency. If you are traveling to Egypt, for example, the dollar exchange rate of 1:5.5 Egyptian pounds, which means that for every dollar that you can buy five and a half Egyptian pounds. In theory, the same assets should sell at the same price in different countries, because the intrinsic value of the exchange rate to maintain a currency of another. Over the past few decades have witnessed great turbulence in the practice of the exchange rate, the worlds countries: the collapse of the Bretton Woods system, inevitably, through a period of clean and dirty floating, through the wooden pegs, the depreciation of the denied, and more devaluation caused by the floating exchange rate depreciation, the currency board, and the emergence of a common currency in most European countries. Large exchange rate fluctuations or different policies in sharp contrast to the more knowledge-through the slow progress in the logic o f economic models and the accumulation of evidence-about alternative exchange rate systems. Not the growth of this knowledge to create a consensus, is not so far, policy-we follow, but there are many places we have slipped to the policy between the application of knowledge, because I will discuss-but thoughtful policy analysis modeled after the process overwhelmed by neglect or cast a vote against the less-than-critical staring at the requirements in the exchange rate and exchange rate systems on a variety of politicians, bureaucrats, reviews, and academics. 1.2 Fixed exchange rate Under a fixed exchange rate, sometimes called the pegged exchange rate system, is a type of exchange rate regime, the currencys value should the value of other single currency or a basket of currencies of other countries, or other measure of value, Such as gold. Typically use fixed exchange rate stability is the value of a currency pegged to the dollar the currency. Trade and investment, which makes the predictability between the two countries, but more relaxed, more especially for small economies where the form of foreign trade most of GDP (gross domestic product). It can also be used as a means to control inflation. However, when the reference value rises and falls, then the currency pegged to the dollar. Furthermore, according to Mundell Fleming model with perfect capital mobility, fixed exchange rate to prevent government use domestic monetary policy to achieve macroeconomic stability. 1.3 Floating exchange rate Significant fluctuations in exchange rates or floating exchange rate is a type of exchange rate regime, allowing the value of money is based on the fluctuations in the foreign exchange market. A currency, called the use of a floating exchange rate floating exchange rate. Some economists believe that in most cases, better fixed exchange rate floating exchange rate. To automatically adjust the floating exchange rate, they make an impact to curb the impact of national and foreign business cycles, and even the possibility of pre-emptive strike a balanced international balance of payments crisis. However, in some cases, the fixed exchange rate may be more stable and more suitable to grasp. This may not necessarily be true, consider the results of the country, trying to bring the price of RMB strong or high compared to other countries such as Britain or the Asian currency crisis in Southeast Asian countries. Choose between the debate between fixed and floating exchange rate regime is proposed, they argue Mundell Fleming model cannot simultaneously maintain a fixed exchange rate of the economy, free capital movement, an independent monetary policy. Can choose any two control and left the third to market forces. Appreciation or depreciation in extreme cases, central banks usually intervene to stabilize the currency. Therefore, the floating exchange rate monetary system is known as the more specialized a managed float. The central bank may, for example, allowing the currency to float freely on price, between the lower bound, the price ceiling and House. Management of the central bank may be a large number of different ways to buy or sell, in order to provide price support or resistance, or, if the currency of some countries, there may be legal sanctions in the context of these transactions. 1.4 Fixed exchange rate versus Floating exchange rate The floating exchange rate is with the various advantages. First, in the floating exchange rate automatic correct as country just make it free movement of supply and demand balance. Secondly, from external economic activities of insulation as national currency is not dependent on a possible world high inflation under fixed exchange rates. Demand and supply the free flow of help from the world economy fluctuation on the domestic economy. Third, governments can freely choose them as a floating exchange rate policy, will allow domestic any payment imbalance of balance, possible domestic policy implementation automatic correction. Nonetheless, there are also specific concerns about the exchange rate being unstable and uncertain under the floating exchange rate regime. Also, speculation tends to be higher in the floating exchange rate regime, hence leading to more uncertainty especially for traders and investors. Despite its rigidity, the fixed exchange rate regime is still used f or several reasons. First, there is certainty in fixed exchange rate. With it, international trade and investment becomes less risky. Second, there is little or no speculation on a fixed exchange rate. However, a fixed exchange rate contradicts the objective of having free markets and it is not able to adjust to shocks swiftly like the floating exchange rate. 1.5 Overview of exchange rate exposure At the micro-level, know how to in emerging markets, enterprise to exchange rate fluctuations interest are clearly their investors and managers. From a macroeconomic perspective, study the enterprise level exchange rate risk, help to determine channel exchange rate fluctuation effects of emerging economies. This is important because of preious study found that exchange rate devaluation impact on emerging markets and developed markets will be very different. For example, KaErWo and Reinhart (2000) found that devaluation in emerging markets tighten. An expansion of the literature, summarizes agenor, and MengTieEr (1999), provide theoretical interpretation, developing economies tighten devaluation. This and the effect of devaluation standard expansion comparative observation (see Gordon 2000) developed countries. Use of enterprise-level data to analyze macroeconomic problems, this is particularly useful, such as in the business cycle of frequency summary data is often in the quality a nd the limited number of developing countries. In addition, because responsibility, dollarization channel directly related to individual enterprises balance sheet, it is important to check with their performance depreciation of the influence. Bekaert and Harvey (2003), in the current literature on emerging market financing of comprehensive investigation, observation, used to parse the developed markets, the standard model often is not suitable for processing occurred in emerging markets, specific situation. This observation and there were to exchange rate risk research so. In developed markets researchers usually focused on measure marginal exchange rate risk, to a companys stock exchange rate of return of the depreciation of the influence, for national stock index irr control. The national into stock index is control macroeconomic impact, causing synchronous movement in local currency and a companys stock price impact factor. This measure is often used to estimate the company of some interesting courses of exchange rate risk (such as multinational company or exporters), relative to the national average. However, for the emerging market of the enterprise, is our ability to focus on how they are in absolute meaning of exchange rate fluctuations, while the effect of not important reasons. First of all, to assess the depreciation of the theories discussed above, we need to research the total, but not at the edge of the influence, to exchange rate fluctuations in emerging markets enterprise. Specifically, we are reviewing whether as a class of emerging market enterprise adverse effects, currency devaluation, not just how they perform, relative to their respective countries average interested. Second, Morck, Yang, the more (2000) document within the stock price of the domestic correlated considerably more than developed markets emerging higher level. This synchronization make stock price change is unlikely to emerging market enterprises are facing serious mar ginal exchange rate risk. Meanwhile, so strong national internal cooperation campaign suggests the possibility of specific countries is an important part of the exchange rate risk. By using the total exposure measures, we can assume for exchange rate risk decision factors for specific national influence; And the peripheral exposure of any nation only measures, concrete influence has been deducted, so it cant identify. In addition, in the more micro level, in emerging markets, investors should care about their investment return given devaluation general response and managers to oneself the value of the company always reaction given exchange rate fluctuation relevant, not just edge react than the national average. Thus, our challenge is to measure total exchange-rate exposure, but at the same time abstract from the confounding macroeconomic shocks. In other words, we need to distinguish between the direct effects of exchange-rate movements on firm value, and the effects of other ma croeconomic shocks that simultaneously affect both firm value and exchange rates. Chapter Two Literature review 2.1 Chapter overview For this chapter that is the literature review which propose the significant empirical and theoretical information to estimate the exposure of emerging-market companies to fluctuations in their domestic exchange rates and identifies the total exposure of a company to exchange-rate movements. 2.2 Empirical Literatures As Adler and DaZhongMa works (1980, 1984) began, Joe dumars (1978), and Howard (1982), there is a study in developed markets, probes into the companys exchange rate risk long list. The main focus of this document is estimated at industry or company level of risk and to investigate their decision factors. For example, Jorion (1990), he and NG (1998) found that foreign sales to the United States and Japan are a multinational company contact of important factor. Allayannis and Ihrig (2001) and beaus, and DaZhongMa Gardner, mascherano meal (2002) research market structure as to exchange rate risk decision of factors. Allayannis and Ihrig establishment and the exchange rate risk and marking the links, and estimate American manufacturing model. Bo Gardners, and DaZhongMa mascherano meal the scope is export enterprises exchange rate risk of one through the price of exchange rate fluctuations, and estimate the on Japanese exports industry pattern. Griffin and si tuor this (2001) and Willia mson (2001) study exchange rate fluctuation industry level the impact of competition. Griffin and si tuor this discovery, the influence is a in Canada, France, Germany, Japan, England, and industrial widely set small American Williamson thinks, the powerful influence for automotive industry, in Japan and the United States more wonderful, griffin and Williamson (2002) and Dominguez and tessa (2001) provide the more detailed this literature review In the method, many studies, including Allayannis and horizon (2001), bo Gardners and gentleman (1993), Jorion (1990, 1991), and Williamson (2001), exchange rate risk measures as a domestic market index works control variables. Bo Gardners and yellow (2000) provides take this practice motivation discuss carefully, and further suggests that the market of the construction of the control variables can have a symbol and exposure to estimate the size of the considerable influence. Some research sector does level in the enterprise or some indiv idual emerging market exchange rate risk. Kho and Sweeney tuor this (2000) study of the Asian financial crisis for five of east Asian countries other currency risk banking. They found that a currency risk only in Indonesia and the Philippines department of stocks earn negative influence. Dominguez and tessa (2001) review from eight countries, in which two (Chile andThailand) is emerging market enterprise marginal rate risk. These two countries, they found that both scale of enterprises or foreign sales is an important determinant of exposure, and the industry is a business affiliation relationship in Chile and Thailand two significantly. Parsley and popple (2002) to study how to exchange rate peg influence east Asia enterprises exchange rate risk, and found a one-to-one currency show outfights them from other currency exposure fixed exchange rate of countries. Chapter Three Methodology 3.1 DATA In this study, it used in the sample from multiple sources establishment. Emerging markets (EMNCs) multinationals and developed countries multinational companies in control group (DMNCs), this list compiled list of annual world investment report published MaoFa meeting of the top multinational companies. Since 1999, all the list published are used to compile EMNCs list. If a company on the list at least once, it was listed in the samples. In addition, transition countries 25 strong multinational companies, top 10 list of multinational companies list published by the eastern world investment reports for research. These sources of combination create 120 multinational companies as a sample of authentication. Once the company create, for the list of Datastream and analysis of data from Thomson research database. O the list of corporate database screening, found that some companies have no relevant data or database of consistent time series. This reduced the companys total sample 106. T he final list including from four world (Africa, Asia, Europe and America) area in 16 countries 106 company 3.2 Methodology The impact of company, industry, region, and country level variables on the exchange rate exposure elasticity was estimated by using pooled time series regression method. Where, is firm ià ¢ÃƒÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬ÃƒÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¾Ãƒâ€šÃ‚ ¢s exchange rate exposure elasticity coefficient. The independent Variables in the Cross sectional model are as follows: TS: Total Sales Lev: Leverage Int: Degree of Internationalization C: Country Risk ADR: Access to Intà ¢ÃƒÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬ÃƒÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¾Ãƒâ€šÃ‚ ¢l Capital US: Upstream/ Downstream Dummy R: Region Dummy I: Industry Dummy Virtual variables include single industry, national and regional effect. As for someone says the earlier scale and lever may affect the companys foreign exchange exposure of elasticity, therefore, it is necessary to control these effects. Total assets and total sales increased enterprise scale and the assets and liabilities of the total ratio con trol to control leverage. The companys internationalization degree also affect exposure, therefore, foreign assets and total assets and proportion of total sales of foreign sales added to the model to control the effect. Chapter Four Data Analysis and Research Findings Foreign exchange market experienced with the actual rate often in the big change bilateral exchange rate fluctuations caused fluctuatio (figure 1 and 2) in recent weeks. These movements of some corresponding adjustment scheme of EO87 policy direction, but on condition that the nominal money valuation of the changes, are made by domestic absorption ability change, make the actual and effective exchange rate adjustment after lasting. In the circumstances, the dollar depreciation (4.2, since September 1 in nominal effective) is desirable support, because it helps to adjust to American production from internal to external balance, demand and ease in the U.S. disinflation risk. By reducing the need of domestic absorption in the dollar is also advantageous in U.S. financial reorganization. Similarly, modest revaluation has in Brazil and emerging market economies and India (in these two countries under the name of 1.1%, effective from September 1) happens should help them contain inflatio nary pressure, but might aggravate their current-account deficit, unless it is compensation fiscal restraint. Simulation operation and the oecd model suggests that the world new fluctuation of exchange rate is a long-term actual variable has a significant effect to maintain. For example, it needs to be in the two years before, the dollars external value change provides two, it to the current account complete effect of two-thirds. Table 1 Report and the median average rate risk of emerging markets and developed market multinationals coefficient. Webmasters coefficient in the name of market risk factor. Net enrollment coefficient is the nominal exchange rate risk factor. MaBi coefficient is true market risk factor. Net enrollment coefficient is the real exchange rate risk factor. The panel table 1, we report for all the exchange rate risk of a multinational company analysis results (including developed and emerging market) samples. Exposure of the elastic coefficient and the me dian average, when we use the proxy is the nominal exchange rate and exchange rate 0.00122 0.01645 respectively. Exposure elastic indication change when we use the real exchange rate. The mean and median exposure elasticize is real exchange rate 0.0146 and 0.0399. In group B and C we report the exchange rate and the developed countries EMNCs multinational company (DMNCs) exposure analysis results. And although the nominal exchange rate of Proxy EMNCs averages and median exposure flexibility is 0.112 and 0.126 respectively corresponding elastic for 0.1148 DMNCs and 0.143. When we use the real exchange rate, the average exposure elasticity reverse signs for both EMNCs and DMNCs Table2 ANOVA-Test of between subjects effects Based on the table 2, we report the variable test between the principal role of results. Type III squares which used in the test. The amended model is 1% significant level. Therefore, expose in emerging markets and developed market coefficient of national equality zero hypotheses was refused. In order to EMNC and quantitative between DMNC group, a simple comparison test is in exchange rate risk difference. In the above analysis, light, namely zero hypothesis EMNC and DMNC exposure elastic relationship is equal, is in 1% significant level refused. Therefore, we, according to the results of exchange rate risk in emerging markets of multinational companies elastic relationship is significantly lower than developed countries exchange rate risk relationship elastic larger market multinational company. We in this study the main premise is such statistical results confirmed the report. We further analysis, in order to obtain the exchange rate exposed to different enterprises, industry and national level of variables EMNCs elastic relationship model views. Table 3 contrast result of ANOVA Table 4 Cross tabs between foreign asset and magnitude of RER exposure Table 5 Cross tabs between foreign sales and magnitude of RER exposure T able 6 Cross tabs between FSTS ratio and magnitude of RER exposure Based on this analysis, 4, 5, 6 from the table, we examine the link between exposure to the size of the elastic EMNCs and absolute size (Table 4) foreign assets, Hollywoods overseas sales (Table 5) and foreign sales total sales Ratio (Table 4). Cross tabulation results clearly point out the positive and statistically significant link between the size of foreign participation and exposure of the agents coefficient. Clearly recognized the significance of these results to determine the degree of international participation, because the size of exposure. Table 7 Cross tabs between countries and magnitude of RER exposure Table 8 In table 7 into each area countries further find interesting model are as follows: to 1% level, all from Argentina, Singapore and south Korean companies have higher real exchange rate risk elastic coefficient. By contrast, the Philippines, all from Hungary, Poland, the Russian federati on, Taiwan EMNCs worked in Slovenia 1% level significantly lower risk factor. Results must be in each specimen with because enterprise the inequalities of the number of countries that carefully ealuated. In table 8 into each area further breakdown of all countries found below interesting mode: 1% level, from India, Malaysia, the Philippines, the Russian federation, Singapore, South Korea, Taiwan all enterprise DouZhengShi elastic coefficient exchange rate risk. By contrast, from Argentina EMNCs all once at 1% level significantly lower risk factor. Results must be in each specimen with because enterprise the inequalities of the number of countries that carefully ealuated. Table 9 Pooled Time Series Results According to the table 9 as robustness examination, we focus on multiple time series analysis. We think, the scale of the enterprise, financial lever degree, multinational company, enter the international capital degree, and as the real exchange rate flexibility theoretica lly reasonable risk factors upstream investment. Results reported the regional virtual variable abnormalities, and in all the variables in the statistical model putong 5% significant level significantly. The total sales variable is used as the agencys scale and our results suggest that this is an exchange rate risk of important decision factors. The size of the theoretical symbol may be because of the two factors offset ambiguous: on the one hand big companies are more likely to engage in foreign business, it may have a higher risk of currency. On the other hand, they are more likely to have enough resources to manage its exchange rate risk Chapter Five Conclusion The study reflects our attempts to understand as compared, in the DMNCs EMNCs exchange rate risk of nature. Presumably, this EMNCs exposure will in a DMNCs this larger. It appears three important discoveries, from our analysis. Below summarizes these results to First of all, our empirical results show that our sample 60 per cent of the multinational company has significant bear the risk of exchange rate fluctuations. Although common currency influence multinational company that value, empirically limited literature. Relative to in this field, including exposure company reports proportion generally less than 25%, in this study, the early work, we found that is rather high in proportion. Higher percentage in this study can partly in the calculation of the exchange rate risk, USES the method. The results can also be caused by sampling method, we used in this study. Although our sample is random, we think this is the reason for EMNCs representative discused. However, we cant rule ou t the possibility of a sampling bias. The second import our research findings were EMNCs substantially more vulnerable to exchange rate than developed countries peer rate factors. In some cases, this is due to emerging market inherent risks properties and/or system empty could limit in emerging markets, under the condition of the effective monetary risk management of universality. Finally, our third found in our study, EMNCs mainly there are real exchange rate risk, and DMNCs has a huge negative real exchange rate risk. The real exchange rate risk of positive can be attributed to import tendencies or big or foreign currency debt. Because in this example is used in EMNCs has significant foreign sales, import orientation argument itself insufficient to explain our findings. This causes inference EMNCs should have considerable balance sheet, this is consistent with the reality of foreign currency exchange rate risk liability. The positive relationship between leverage and magnitu de of exposure lend further support to this conclusion.