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Current trend of protectionism and it effects in India as a developing nation

Title: Current trend of protectionism and it effects in India as a developing nation

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Table of Contents

TOC o “1-3” h z u HYPERLINK l “_Toc395524780” Chapter 1: Introduction PAGEREF _Toc395524780 h 3

HYPERLINK l “_Toc395524781” Advantages of Protectionism PAGEREF _Toc395524781 h 4

HYPERLINK l “_Toc395524782” Disadvantages of Protectionism PAGEREF _Toc395524782 h 4

HYPERLINK l “_Toc395524783” Research Hypothesis PAGEREF _Toc395524783 h 5

HYPERLINK l “_Toc395524784” Importance of the study PAGEREF _Toc395524784 h 5

HYPERLINK l “_Toc395524785” Research Motivation PAGEREF _Toc395524785 h 5

HYPERLINK l “_Toc395524786” Research methodology PAGEREF _Toc395524786 h 6

HYPERLINK l “_Toc395524787” Chapter 2: Literature Review PAGEREF _Toc395524787 h 8

HYPERLINK l “_Toc395524788” Chapter 3: Research methodology PAGEREF _Toc395524788 h 19

HYPERLINK l “_Toc395524789” Introduction PAGEREF _Toc395524789 h 19

HYPERLINK l “_Toc395524790” Research design PAGEREF _Toc395524790 h 20

HYPERLINK l “_Toc395524791” Hypothesis PAGEREF _Toc395524791 h 22

HYPERLINK l “_Toc395524792” Population PAGEREF _Toc395524792 h 22

HYPERLINK l “_Toc395524793” Population validity PAGEREF _Toc395524793 h 23

HYPERLINK l “_Toc395524794” Sample PAGEREF _Toc395524794 h 23

HYPERLINK l “_Toc395524795” Sampling instrument PAGEREF _Toc395524795 h 24

HYPERLINK l “_Toc395524796” Simple random sampling methods PAGEREF _Toc395524796 h 24

HYPERLINK l “_Toc395524797” Data collection method PAGEREF _Toc395524797 h 24

HYPERLINK l “_Toc395524798” Questionnaires PAGEREF _Toc395524798 h 25

HYPERLINK l “_Toc395524799” Construction Questionnaire by the Researcher PAGEREF _Toc395524799 h 26

HYPERLINK l “_Toc395524800” Data processing PAGEREF _Toc395524800 h 28

HYPERLINK l “_Toc395524801” Data analysis technique PAGEREF _Toc395524801 h 28

Chapter 1: Introduction

According Jagdish, MIT Press to protectionism refers to the policies that are made and set by a specific countries’ government with the aim of protecting the local industries from competition by the foreign companies. These policies are usually made in the sector of trade. Alan (2004) explains that, trade refers to the process of exchanging goods for money or with anything else with value. Protectionism does not take within a country; it takes place between countries, and thus the importance of studying International trade. Arbache, Dickerson, and Green (2004) add that, international trade refers to selling of products for money across the borders of several countries. Barriers of trade can be divided into qualitative and quantitative. Quantitative barriers are measurable, and they include quotas, tariffs, subsidies, limitations and exchange control. Qualitative barriers are very hard to because they are regulations that are made by the government to make free trade difficult. The regulations can be direct or indirect. Example is competition policy and quality standards (Douglas, 2011). The research seeks to investigate the current trend in protectionism and whether it has any impact on the trade and growth in the developing nations with India as a case study.

According to Went (2000) tariff on the manufactured goods has considerably reduced over the years as is (UNCTAD). The tariffs are known to have declined between 1996 and 2006 in the developed and the developing economies. The developing economies are the BRICs, which Russia, China, South Africa, India and Brazil. India will be chosen for the study because of it rich history in protectionism. However, the emerging market share increased from 5% in 1990 to 14% in 2006, with that of the developed nations declining. Important to note, even with the decline of the tariffs, the developing nations have been putting high tariffs on the manufactured products (Smith, 2001).

Tennenbaum (2000) tariffs may not be representative of the protectionism in the right percentage because; ablest to make an increment in tariffs with a large percentage because they are part of the World Trade Organization agreements which disallow them to do so. So, Non-tariff barriers become the best measure of protectionism in developing countries. Example of these types of barriers is the export barriers. The government may decide to make production cheaper for the local producers so that it can protect them from foreign company’s competition. In short, Non-tariff barriers are the barriers set to safeguard the local companies by the government though they are not easily quantified.

Advantages of Protectionism

Beyer, Rojas, and Vergara (1999) give the first advantage of protectionism for developing countries is that, it leads to securing the employment positions for the residents. When goods from the foreign countries are taxed highly, then the local companies will do well-leading to employment security for many within the industries.

The second advantage is that, the local companies will produce more; this will lead to increased revenues. Increased revenues for the local industries are good for the economy of the country because, it translates to better living standards for everyone in the country (Moses, 2002).

Disadvantages of ProtectionismAccording to Tennenbaum (2000), the first disadvantage is that, Protectionism is not best for developing countries because, when it is allowed, a country will levy high taxes to imported goods, leading to high living standards which do not favor the poor citizens. It is because; even the local companies will higher their prices because of the increased importation cost, making live expensive within the developing countries.

The second disadvantage is that it will lead to a heightened level of poverty because of the high unemployment levels (Jagdish, MIT Press). This is especially to the exporting country because they will not have a chance to sell what they have to the foreign market, which will lead to reduced profitability and a possible closure of the company. The end product is that the employees will lose their jobs.

Research HypothesisThis research is designed to identify and evaluate the current trend of protectionism and highlight possible effects of growth and trade of developing countries with India as a case study.

Importance of the studyTo identify and evaluate the current trends of protectionism.

To determine the existence of protectionism in India.

To find out the underlying economic and political conditions which inform protectionism in the developing countries?

To determine the effects of the current trend on the growth and trend of developing countries with India as a case study.

Research MotivationProtectionism was strongly embraced before the Crisis of 1930’s which was culminated by the 2008 and the introduction of WTO, but things changed (Chul et al., 2012). Most of the countries are embracing free trade. Most of the economists indicate that the most-likely period for a country to embrace barriers is during such crisis, yet most countries were not seen to do so. The economist point out on the advantages and disadvantages of barriers at such a time. There those countries that embraced the policies during the 1930 have to safeguard their economies from the crisis. The result was countries that had problems with their balance of payment and loss of more jobs. Most countries thereafter did not embrace this strategy, and to be keen the developing countries. India was one which sought for help from IMF to settle their debts, but out of the rules IMF had set from the study they had done, India had to embrace free trade (David, Wyn, & Peter, 2001).

The aspect of how protectionism brought in many misfortunes and key to India; is the motivation to investigating its current trend and if it has any effects to the developing nations, with India as the focus. Protectionism can be good or bad to the developing nations depending on why they are embracing it. When embracing protectionism, the exporting country, and the importing country usually get benefits and demerits as well. It is important for the practicing nations to know how to practice it while at the same time securing the employment of its citizens and relations with other countries.

Research methodologyBhattacharyya (2006) explains that, research design is the most-central part of a research because it gives a direction on how and where a research will be conducted. This particular study will embrace the cross-sectional study design, which refers to the collection of data from the target respondents once. The target respondents in this particular study will be from India that is among the developing countries. The research is meant to highlight the current trend in protectionism and whether it has any impact on the trade and growth in the developing nations, with India as a case study. The research will be quantitative, and that means a sample population will be used to infer to general population of the target destination (Khan, 2008).

The section that follows has discussions and theories on protectionism and trade liberalization as well as the current trend and how they relate to the developing countries. It is a secondary source of data that helps the researcher to determine what has been done in the field previously. It is helpful in determining what has been done, and what is best for the researcher to research on. The secondary information is helpful in that; it will help make comparisons with the primary data (Kothari C. R., 2006). The comparison helps to know if there is any consistency in the area under investigation or if the theories hold.

Chapter 2: Literature ReviewAccording to the observations of historical events, protectionist policies and measures seem the most-favorable option for countries during periods of economic and financial crisis. The first event under observation was the financial crisis which took place during 1929 (Douglas, 2011). During this particular period, most governments opted for the protectionist measures in a bid to protect the industries in their economies from the possible effects of the Great Depression.  A portion of the measures were quantitative, and they included increasing import tariffs among others. Economics (2009) gives the insight that, these policies of protectionism led to reduced trade by a percentage of 66 in between the year 1929 and 1933. The countries that were involved in were left with deteriorating economies, something that led to the growth of globalization. Ever since, the economists have been on the run to promote free trade, and most of them are the anti-protectionism from the effects that were witnessed from the actions that were taken by the governments of different countries in 1929 because of the financial crisis.

There are various reasons why countries may opt for protectionism. The first reason is the pressures from producer-oriented groups in the specific countries that they exist. The pressure that is mounted to by these types of groups is meant to secure the groups from intensive competition by foreign companies. The pressure group is usually determined to influence the policies in order they could be in their favor (Eddy, 2005).

Edwards (1992) adds a second reason protectionism could be opted for is because of the government’s decision. The government could make such kinds of decisions when it realizes that it is the only means of protecting national interests. The government may realize that it has depended on other countries very much, and that could be one of the reasons it decides to embrace this as a measure. The other reasons which can make the government take such actions is because of the decision to improve the balance of payments, or because of the plan to increase exports in a bid to grow the economy and lead to a more stable country.

Most of the developing countries had a history of embracing protection measures, but that is since changing. Examples of such countries are Mexico, Chile, Botswana, Ghana, China, and India. Before India becomes a member of World Trade Organization (WTO) which regulates the protectionism, it was charging very high percentage in import tariffs. That was before it introduced its trade reforms in 1991; it was charging 80 percent on the import tariffs, but thereafter they reduced to about 30% (Hakim & Mustapha). Even though it is important to note that, the developing countries can raise their tariffs to a higher percentage compared to the developed countries in relation to the agreement stipulated in the WTO, without them breaking any clause of the agreement. With India as an example, it is reported that its percentage rate on tariffs furthers reduced from the previous 30% to 15%, and they could increase to all high rate of 50% any time they felt like, and still not violate the agreement of WTO (Jagdish, MIT Press).

An explanation as to why more of the developing countries are no longer after protectionism is because of negative effects it has on their economies. Kankesu (2002) elaborates the first reason the developing countries are not supporting the idea of protectionism is because of the idea of poor economic performance. Most of the developing countries have suffered sluggish economic growth and a continuous decline in productivity. Some of the policies under protectionism are commonly known as the macro policies which made the debt level to increase and the external environment. The developing nations thought of this as a solution to ending the scenario and increasing productivity (Alan, 2004).

Petia and Amit (2010) elucidate the other reason the developing countries are opting for free trade is because of access to information. In current times, technology, and specifically internet access avails information on what is happening globally and in the international market. The citizens of these developing countries get to realize the gaps in pricing between their countries and the international market. They realize that sometimes, the products in their countries are more expensive than those in the international market, and then they opt to buy from those other countries. In other words, the consumers want to increase the power to buy with the little that they have, and with information, they will go where such desire will be actualized.

Rudiger (1992) adds another reason the developing countries have opted for free trade is because of the research which was conducted by World Bank, and the empirical evidence they got. The research was a comparison of strategies of inward looking trade and outward-looking strategies. The research indicates that, there were problems with the inward looking strategies, and the outward-looking strategies were a success. It is these lessons that led the World Bank to put trade liberalization as a condition for those countries which were in need of money.

The topics of protectionism and free trade have not just started the other day. This topic is one which got the attention long time ago by Classical economists such as David Ricardo. David Ricardo focused on the concept of comparative advantage, and the work and findings were anti-protectionism (Smith, 2001). The explanations are made with the help of two economies (standing for two different countries) with two different sectors each. The results indicate that each of the economies achieves higher productivity if it specializes in those two particular sectors it has as compared to undertaking work in many sectors.

Ever since Ricardo did this work, there has been a series of research from many other researchers to find a relationship between rather liberalization of trade with growth. Rodriguez and Rodrick (2000) explain that, even though the available empirical evidence as provided in most literature is not subject a variety of tests, the main findings from most of them is that tariffs do not increase the welfare of any particular economy; trade liberalization is the only way to enhance the economies. The second study was based on the results as found in the IMF world economic Outlook which had its focus of trade in agriculture. The research realized that there were three effects. Trade protectionism leads to increased taxes and costs to the consumers. The second effect is that it leads to a trend of decline in efficiency because the allocation of the resources is not used in the areas where the country has the expertise. The third effect is that, protectionism could interfere with balance of payments and fiscals and make exports very difficulty (Tennenbaum, 2000). When a country imposes these policies, the other governments retaliate; they develop protectionism measures, and exports decline because they translate to be expensive in those particular countries making it very difficult for the government to make balance of payments. The study further indicates that the world’s income would increase by a tune of USD 128 billion if protectionism were not to be welcome by any country all over the world.

Went (2000) indicates that, financial liberalization has been the other topic under light perhaps because of Asia crisis in the 1990s. Financial liberalization may of great use to a country and it can lead to more investments and general growth of the economy. However, this will only be true if, the country has an enabling environment in terms of the policies that they have crafted. According to Kose et al,. (2006), financial liberalization can be of assistance through leading to better institutions in terms of better governance practices and better-macroeconomic discipline. Evaluating the economic effects of financial liberalization is difficult in most times because the effects keep varying over time.

As illustrates at the start of the literature review, crisis is the major causes for countries to impose protective measures in order to safeguard their economies, and the industries in their economies as well. It is reported that the current economic crisis in the late 2000 has been felt in the developing countries. The economic crisis has led to feverish growth of economies in the developing countries, and it is perceived that the policy makers may give into the political pressures in order to protect their industries from intensive completion of the foreign companies as well as assure citizens of jobs (Beyer, Rojas, & Vergara, 1999). As reported by World Bank and the Center for Economic Policy Research trade barriers have been discovered, even though they are minimal, and they meet the criterion of WTO. The report they gave shows that this situation is not assured to remain at that particular way, and there is possibility that it can escalate in the future.

According to other sources, there is a continuous increase of protectionism in the developing countries such as India because of the global financial crisis which has led to the economic slowdown for quite a while. According to Arbache, Dickerson, and Green (2004) the source argues that in 2009, the data collected for seven months on protectionism shows 186 incidences of restrictions for trade. The trend is recorded to have affected the number of imports made by 0.9% and the global trade by 2.95 in the year 2009. The report gives that protectionism measures implemented by India and other developing countries. The measures specific to each country as the research indicates are listed below.

The measures are since taken at the peak in 2008. India is a country under investigation in this particular study. Because of this particular crisis, India increased their restrictions without any notification. The most-common restrictions in India at that time are the certification that was to be gotten for the new products. Korean companies were investing heavily in India, but ever since the tedious process of getting documentation, most of them opted out (Beyer, Rojas, & Vergara, 1999).

Tennenbaum (2000) explains that the other developing nation to take this action is China. China is the single country with largest percentage of rare earth materials in the world, standing at 95% of the total elements in the earth. Due to this particular crisis, they cited these particular elements as a national element which would be used for strategic reasons, and thus they imposed restrictions on the way they could be used. The reason that they gave to the world was that they were protecting the environment, a reason that was to please, and not the truth. The restrictions included that; no company would import the products of oil from China without it being state owned with the permission of the respective government or with licensing to prove their case. The other restriction was promoting the Chinese founded companies because it offered them a fair deal in the areas ranging from safety, technology and labeling regulations.

 The mystery of whether developing countries need to embrace protectionism or free trade should be answered by comparison of the advantages each has over the other. Trade can lead to reduced poverty levels in the developing countries through economic growth. The study that was done in the recent past across 70 countries for a period of 30 years shows that; the countries that had abandoned protectionism for free trade had an increase in income growth, as a result of incremental income (Morone, 2003). The study realized the trend that, all the countries which joined WTO during that particular period lowered their barriers that is that quantitative ones. Example of the barriers reduced includes tariffs and the percentage of taxes. This was the same case in India where the percentage of import taxes went all the way from 80 to 60 after they embraced reforms in 1991. Later on when they became members of WTO, the trend of decreasing the percentage has been continuous until the recent announcement of 15% in the year 2009.

Due to trade liberalization India was able to improve its productivity and led to increasing in efficiency in the way they conducted operations. Trade liberalization opened up for competition which resulted to the Indian companies looking for means to remain competitive from the foreign companies (Petia & Amit, 2010). That way, the citizens of India can access quality products and services at friendly prices because of the healthy competition taking place.

Trade liberalization is full of advantages to the developing countries. The other advantage of lowering tariffs in the developing countries like India is that, they enable them to access better technologies, and inputs necessary in operating some of the companies in their economies at a cheap price (Smith, 2001). Example was when India decided to come up with a reform in the year 1991. The reform was aimed at trading big, and it gave them a chance to enjoy inputs that they would not have enjoyed previously. The report points out that; the inputs that were imported to India were new ones, or rather inputs that they had not imported before. To the amazement of the world, when India embraced the policy, its imports were doubled within a very short period. Some of these inputs were essential of producing new products, better products or increasing the number of products produced previously because of a shortage. This again led to more and better productivity of the Indian companies something which would not have been possible if they still adopted those Protectionism policies. Thus an indication that, protection measures for the developing countries has more bad than good on the contrary of what most people could think (Rudiger, 1992).

Most-developing countries have a high level of poverty as compared to the developed countries. It is good in that case to know if trade and growth have any impact on the level of poverty, and especially to India that according to statistics is among the poor countries in the world. The poverty in India in accordance to World Bank statistics in 2012 was 21.9%, a very high percentage compared to the developed nations. Even though, it is imperative to not that since they adopted the reforms in 1991, the poverty levels have been going down, and indication that free trade is the best idea for developing countries. The statistics according to World Bank show that, the ratio of poverty percentage of the population decreased continuously from 45.3% in 1994, to 37.2% in 2005, to 29.8% in 201, and to the latest percentage in 2012 standing at 21.9%. This can explain the system well that, trade leads to economic growth of a country, which then leads to the creation of employment, and later the levels of poverty are reduced, something proven through the reduced level of dependency (Arbache, Dickerson, & Green, 2004).

It is clear that, even though India enjoyed the fruits of liberalization; it was not out of choice that they opted to adopt the concept of free trade after they realized the need of borrowing some money in the International Monetary Fund (IMF). Moses (2002) elaborates that; IMF would not allow them the money without them trading protectionism for free trade because of the study they had previously conducted as illustrated at some point in this literature. The companies that were evidenced to have got the benefits of a free trade in terms of increased productivity were the Indian companies. So far, no material to support foreign companies getting any improvements in India as a result of the reforms in 1991.

The government of India usually before 1991 carried out the operations of the country as if it was able to survive without help from any other country or any other source, but they were wrong. In 1980’s liberalization was deeply taking root in most countries across the globe, and this led macroeconomic imbalances (Fiscal and balance of payments) for them (Went, 2000). Another global event which made it difficult for India to operate on its own was the increase in oil prices as a result of Gulf war that was unpredicted. This undermined the operations of India, and because of their increased debt and sluggish economy growth, they sought for immediate funding from IMF in 1991.

Further research shows that, not all people across the divide within a country which embraces trade liberalization enjoy its benefits. That again illustrates that, as much as poverty in the developing countries will be minimized, this method does not give any assurance that it will be eliminated. Petia and Amit (2010) explains that, when the government of India embraced free trade out of the measures set by the IMF, poverty declined in a few select areas. Even though, prices of commodities went down, and there was a variety to choose from, there was an issue with the way resources went to different ends. Results indicate that Indians working in protected industries or areas around protected companies suffered most when others were enjoying. The reason is that; they had their salaries, wages and most-other privileges slashed. No more employment opportunities would be availed to the people of the area within which the companies operated as a result of stiff competition from the foreign companies. What made it worse is that, the labor laws in India did not give them a chance to move on to other companies benefiting from the 1991 trade reforms.

Information that, employees working in companies which were previously protected and not favored by the trade reforms yet they could not relocate led many researchers to study other reasons that would cause people not to relocate to companies that are favored by the economic situation of the country. Some of the researchers hold that labor market regulation is among the key factors which affect the employment of these new people searching for work. They argue that, the regulations have been made in such a way that it makes expensive for the companies to fire the employees in case they want to. That hinders them from getting the employees, which then contributes to them not moving to these strategic locations to seek for employment. There other researchers report that, they realize that some of the people who lose jobs in the companies which wide up because of an end in protectionism do meet the requirements being sought after by the companies in a free trade scenario (Arbache, Dickerson, & Green, 2004). Some of the previously employed people may lack the education and experience which would usher them in the companies doing well because of the economy without barriers. The other reason from researchers is that these jobs may require those involved to relocate, and moving may be costly, not only in monetary terms, but also in social terms because it requires separation from the loved ones. Trending of loved ones for a job that requires an individual to go far away may be difficult, and they may opt to stay unemployed. These issues can be properly tackled if the government comes up with appropriate policies and measures.

Finally, are the theoretical arguments from researchers on trade liberalization regarding the developing countries? The first argument is that, trade liberalization is the only way that, the companies in the developing countries will realize increased productivity. They argue that, when the developing countries adopt reforms from protectionism, the likely event is that, resources will be reallocated from the less productive to more productive companies (Beyer, Rojas, & Vergara, 1999). In turn, there will be increased productivity as a result of competition. The companies will manage to reach their peak by reducing on the management slack, and focusing on what they do best.

Kankesu (2002) clarifies that, the other theoretical argument is that, these companies will be in a position to getter better technologies that they did not have before. The essence of technologies is that, they will help in technical efficiency. Notable is that,  not all of the theories are supportive of trade liberalization. These contrary theories argue that, trade liberalization may lead the developing countries into sectors that are not economically good for growth. They also hold that; trade liberalization cannot be workable unless the government comes up with additional policies.

Chapter 3: Research methodologyIntroductionResearch methodology is a chapter which is dedicated to illustrating the design, the method of collecting data, the population used in the research and other relevant topics in relation to the research. This chapter will give the users of the information on the particular method of study, and why it was preferred over other possible means. The chapter will explain the methods that the researcher has used to collect data from the target respondents. The researcher will give the advantages and the disadvantages of using that as a means of collecting data as compared to other possible data collection method. The researcher will then defend the essence of using such method of data collection for the study. Just as an iceberg, the study is aimed to give light to the current trend in protectionism and to know if it impacts trade and growth in the developing nations (Sharan, 2009).

The better part of this particular section in the researcher research is that it is given systematically to give the process of conducting a primary research assuming that, the user of the information does not understand. It will also elaborate the different types of research, and then narrow down to one which is the center of research, so that the information can be easily understood. The findings can only be understood better with proper knowledge of the research methodology; research design, the population, the sample, and how the stat

Current Status, Challenges, Policies, and Bioethics of Biobanks

Current Status, Challenges, Policies, and Bioethics of Biobanks

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Current Status, Challenges, Policies, and Bioethics of Biobanks

The article focuses on biobanks and bioethics in countries with established repositories for the storage of biomaterials. The United States, United Kingdom, France, Sweden, Italy, the Netherlands, and Korea are the major countries in the world with the largest biobanks. Biobanks act a storage and collection point of biospecimens used in medical research for the identification of risk factors of certain diseases, drug therapies, and diagnosis of chronic illnesses (Kang et al., 2013).

The paper also looks into bioethics and safety in biobanks. The ethics involved include a patient’s consent to conduct research or provide information to doctors or researchers. The researcher should provide adequate information to the patient prior to conducting any procedure and the implications and consequences of the processes. Institutions should have an Institutional Review Board (IRB), a body that oversees bioethics and biosafety in biotechnology and scientific research (Kang et al., 2013). Biobanks also have policies that guide the distribution of data and biospecimens in institutions. Biobanks have increased to meet the demand for qualified biospecimens globally.

The biodata and specimens are essential tools of research in various fields such as metabolomics, nanotechnology, proteomics, molecular imaging, and genomics. Thus, biobanks play a crucial role in foreseeing the success of research conducted by the afore-mentioned groups while studying certain diseases such as genetic disorders and cancer. Having state-of-the art biobanks and repositories around the globe is a sure way of meeting the global demand for quality biospecimens necessary for biotechnology research. Countries such as Korea have set up a National Biobank to ensure safe and harmonized collection and distribution of biospecimens.

Bioethics and safety are of the essence in research while dealing with biospecimens in biobanks. It is ethical to protect the interest of the patients involved in the research by providing all the necessary information and treating their data with confidentiality. Biospecimens are essential tools for research on diseases such as cancer and they should be stored appropriately under the set guidelines and policies (Kang et al., 2013).

Reference

Kang, B., Park, J., Cho, S., Lee, M., Kim, N., Min, H., Lee, S., Park, O., & Han, B. (2013). Current status, challenges, policies, and bioethics of biobanks. Genomics & Informatics, 11 (4): 211-217. http://dx.doi.org/10.5808/GI.2013.11.4.211

Current State Organizational Strategy

Strategic Plan

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Name of Student Chapter III

Current State Organizational Strategy

This section is about the current state strategy, which has contributed to the good position of the Orlando Health currently. The chapter also describes the major flows and processes and environmental impacts that have resulted to the current shape of the organization. First, the organization has a core objective and a system of goals to guide its operations. The current and former human resources are accountable for the development of the health Orlando Health has united specialists who are dedicated to improve the quality of life and health of people within the communities serviced by the healthcare. The non-for profit healthcare organization serves the health care need of people from and beyond Central Florida. The health care organization is currently serving more than 1.6 million individuals from Central Florida and serves thousands of international patients on annual basis. It has developed to a point of treating a significant number of indigent patients a factor that has made the health benefit from special funding. It is special to a point of being the only healthcare organization with qualifications of participating in the region’s Safety Net Hospital Alliance of Florida, commonly known as SNHAF. SNHAF is made up of fourteen hospital systems. Hospitals making up the SNHAF consist of about 10 per cent of hospitals in Florida but they offer more than 50 per cent of health care in the region.

The main campus of the healthcare organization is located in the south of Orlando. This main campus is the Orlando Medical Center, which is a tertiary hospital with a capacity of eight hundred and eight beds and part of the Orlando system. Another major centers include the Arnold Palmer Hospital for Children, which is a pediatric hospital having at least 158 beds. This medical facility is located Orlando, Florida as part of the Orlando Health. It gains support from Arnold Palmer Medical Center Foundation and it is one of the top Pediatric hospitals dealing with heart care as well as heart surgery. This health care facility operates under a specialized strategy that aims at improving health care services in a specialized way. This kind of specialization has made it acquire a top ten position among the top pediatric hospitals in the United States (Health Central Hospital, 2012). It has an added advantage of being the only hospital in central part of Florida emergency services to pediatric patients with trauma problems.

The main stakeholder of this facility is Miami Children’s Hospital, which formed partnership with hospital to create a Congenital Heart Institute developed to offer quality pediatric cardiovascular services. This stakeholder has generated an impact in the kind of services offered in Orlando Health. In this branch of the Orlando Health System, contribution to its development and advancement in specialized medical services in cardiovascular services. The human capital employed assist in offering high quality services in specialized medical services. The kind of specialization also assists the management in developing greater services in medical health. The key skilled personnel include a group of cardiologists, cardiovascular surgeons, cardiac anesthesiologists, physicians, as well as nurses and intensivists. The hospital also employs a team of technicians who offer diagnosis and treat infants or children suffering from various hear diseases and congenital disorders of the heart. This hospital facility incorporates a combination of technologies to assist it pediatric activities and offer quality services. It has increasingly kept a top position in technology and by the year 2012, the hospital was the only hospital offering surgical out data that is web-based (Health Central Hospital, 2012).

Another major facility of the Orlando Health is the Winnie Palmer Hospital for Women and Babies. This branch opened in 2006 after breaking from the formally known as Arnold Palmer Hospital for Children and Women. It currently has a two hundred and eighty-five-bed capacity, still located in Orlando in Florida. It deals in specialized services to serve the health needs of women and babies. Common services include women delivery health problems related to newborn babies. This hospital is grouped together with the M.D. Anderson Center Orlando to form the main campus of Orlando Health. Other centers of the Orlando Health include Orlando Medical Regional Center with a bed capacity of 808, located in Orlando, the Lake Nona Medical City, Dr. P. Philips Hospital, M.D. Anderson Cancer Center, Florida Hospital East, Florida Hospital Orlando, and Naval Hospital Orlando. The hospitals form the Orlando Health. Each hospital is designed to offer specialized medical treatment as part of market product differentiation. The structure of Orlando Health is designed in a way that would enable a patient suffering from a certain disease know which hospital to attend in order to get access to specialized medical treatment (Orlando Health Physician Group, 2011).

Each of the Orlando Health hospitals facilities incorporate an array of laboratory services and pathology services that assist in finding out medical problems facing patients. The laboratory services and programs are varied depending on the kind of specialization in each hospital making up the Orlando Health. Laboratory services are offered under a number of lab testing and treatments programs. The central Processing Department receives specimens from all centers and specifically from their wards. This happens through the incorporation of Orlando Health network system. This system of networks not only has all hospitals and departments interconnected but the entire health enterprise’s laboratories (Orlando Health, 2012). The health care enterprise has a system of partnership that offers assistance in analyzing lab specimens from various centers.

Orlando Health is committed in offering a variety of laboratory services. These services are comprehensive to ensure that all patients’ problems are identified for the necessary health care service to be provided. Highly skilled technologists and technicians provide laboratory and medical services by being dedicated to provide their best services possible to patients. The technical capabilities of the certified pathologists in medical laboratory services include Coagulation, Anatomy Pathology, Cytology, Flow Cytometry, Electron Microscopy, General Chemistry, Immunology, Hematology, Microbiology, Mycology, Paracitology, Therapeutic Drugs, Toxicology, and Virology (Orlando Health, 2012). These services are done with the use of the latest available technologies especially through computerized laboratory systems. Orlando has a number of primary testing sites and these sites are open twenty-four hours a day. The laboratory services are to advance in technology and specifically unique such that no other competitors in the region offer the same services. This uniqueness is also a source of Orlando Health’s victory in health and medical services. The medical laboratory services include on-site test capabilities, historical record tracking, web-based technology for retrieving results, and availability of online order entry. Patients also have the option of calling pathologist at any given time of the day. Each outpatient’s laboratory location has at least one or more experienced phlebotomists. The lab locations are made convenient to all patients for easy access. The laboratory services are incorporated with other services like home health agency, nursing home care, laboratory customer support, and customer support department (Orlando Health, 2012). The customer care department also includes a team of professionals in various medical fields, who can respond to various health care service needs of customers. Such service can include testing of results, fixing lab results, addition of tests to the existing specimens, responding to patients’ concerns, billing information, and supplying requests. The laboratory services make one of the key services tuning the shape of Orlando Health and making it has a promising future in medical services and market.

The human resource facilitating the growth and development of the Orlando Health as a multi-hospital institution are also specialized and are incorporated in the Orlando Health Physician Group Model. This model consists of employed physicians who are clinically integrated. This Group of clinically integrated physicians forms one of the models used by Orlando Health to develop its medical operations and services (Elswick, O’Donnell, Dinon, Stachnik, & Rippe, 2011). This model is based on an advanced technology that aids communication among all the facilities and departments making the Orlando Health. The other model used by Orlando Health is the Orlando Health Physician Partners. This model consists of private medical partners, which can collaborate with the Healthcare organization or contract with the organization in exchange for services that would meet defined quality metrics. The model is also initiated to assist in participating in market pools with managed healthcare pricing (Elswick, O’Donnell, Dinon, Stachnik, & Rippe, 2011). The two models brings confidence to health care patients and provide them with an assurance that the organization has physicians who are ready to offer the highest quality in healthcare services in central Florida.

All hospitals making Orlando Health are organized systematically to offer integrated medical services and healthcare one of its critical strengths. The healthcare management understands the daily trends in actions and habits that profoundly influence the short-term shape and long-term health as well as quality of life (Elswick, O’Donnell, Dinon, Stachnik, & Rippe, 2011). The increasing demand of improved health care in Central Florida and from all over, the world forms an important opportunistic ground for Orlando Health. One of the key organization’s aspirations is to help individuals in making more and positive informed choices in health care and medical services. Orlando Health is a health care system that incorporates lifestyle medicine and various concepts into its main medical operations and health care services meet its objectives and aspirations. This system and model of operation has seen the organization have a system of development and achievements in healthcare despite it challenges in health care sector as part of its aspired results since its establishment. The business trend within the enterprise has turned to be an inspiration to other health care organization throughout the United States and beyond. One of the major inspirations is the incorporation of lifestyle medicine into the organization’s culture and its operating principles (Elswick, O’Donnell, Dinon, Stachnik, & Rippe, 2011).

While the organization has been working to achieve such good results under the prevailing opportunities and strengths, there are various factors influencing its success positively and negatively. The external factors include high competition from other top hospitals in Florida and specifically Central Florida. The organization is ranked among the top best health care organizations in the states in specialized healthcare, which means that the top most health care organization provide a great challenge to Orlando Health. Location of Orlando is at the central position of Florida, an implication that the organization will ever maintain a top position in healthcare since patients find it very accessible. Other factor like technology affects the organization in two ways. The organization faces pressure to maintain high technology in order to maintain its competitive position throughout its service life. This increases its cost of operation (Jameson & Sentinel, 2013). Technology has also enabled the organization to maintain a top position in health care in Central Florida and in the US in general. These factors together with internal factors like a good system of management, high skilled employees, and good patient relations have shaped the organization to what it is today.

The management system in the Orlando Health is a centralized system of management consisting of President, a Senior Vice President, and Vice presidents in the various sectors of the organization. Other lower ranks include the Chief Administrative Officer, Corporate Director of Access, Chief Quality Officer, and Chief Financial Officer (Orlando Health Physician Group, 2011). Currently, the Orlando Health Physician Enterprise President serves by overseeing the integration of physicians. The Health Enterprise has more than four hundred integrated physicians, who represent more than 40 specialties while focusing on deliverance of best quality in health care within the region. The president ensures that the integration is up-to-date and that all hospitals within his enterprise are in good operation condition. The Senior Vice President to the Health Enterprise is also a member of the organization’s Executive Committee (Orlando Health Physician Group, 2011). The Key role of the Senior Vice President is to have an oversight of Orlando Health Physician Group. The enterprise has more than 500 employed physicians. He oversees the physicians as well as a number of residents of the organizations. He is also obligated to lead an executive team that directs the organization’s clinical integration and that creates an Accountable Care Organization for Orlando Health (Orlando Health Physician Group, 2011). The Senior Vice President is also a member of the Organization’s board strategy and a committee that investigates on quality of Orlando Health Care Services.

Other leadership offices overseeing the general operation of Orlando Health from a central management level include the Vice President for the organization’s clinical integration. The personnel in this position are responsible for the organization’s operations as well as business development of the health enterprise. Again, the person in the Chief Administration position is responsible for overseeing the business and market operations of the entire enterprise. The Chief Financial Officer is responsible for the financial position and control of the organization. Other general position includes the Human Resource Manager whose work is to ensure that the team of employees employed to serve in Orlando Heath have the right qualifications. The collaboration of the Human Resource Officer and the Chief Quality Officer ensure quality with the Orlando Health (Orlando Health Physician Group, 2011). The Chief Quality Officer ensures that all hospitals and various facilities are within the prevailing technology and that all professionals provide quality services. The Corporate Director of Access serves to improve access to health care by patients and is in charge of extending this role to all hospitals making the Orlando Health. The officer in this position has a general role in both the hospital system and the enterprise (Orlando Health Physician Group, 2011).

Centralized management in Orlando Health

Chapter IV

The current model incorporates a Patient Center Medical Home, which opens to the future success of Orlando Health as a growing enterprise. This model incorporated technologies and healthcare facilities, as well as services that would increasingly patients think of Orlando Health as the best place to acquire all medical need. The model is designed with a goal of making it easy and comfortable to all patients (John, 2012). The model also encourages partnership between the patients and the health care team as a way of incorporating a healthy patient to physician relationship. The incorporated model that would help in improving quality of services and assist in the advancement of Orlando Health competitive position in healthcare is as provided below.

From the model, health care safety is given the highest priority in which patients would be provided with health care and medical services that are highly monitored and observed to evade any cases of risks, and any kind of hazardous environment. Health care is also developed to be coordinated and integrated. Integrated health care ensures easy communication between departments and medical practitioners in various health departments (John, 2012). This comes as an advantage for Orlando Health to develop into a larger enterprise as more patients are attracted into the various hospitals making up the Orlando Health Enterprise. In essence, there is an increased access to healthcare within Orlando Heath through the organizations department of Corporate Direct Access headed by the Corporate Director access. This director governs the accessibility into all Orlando Health facilities and hospital branches by all patients. The aim in this case is to see an increasing trend in health care accessibility in Orlando Health and become the leader not only in the quality of services provided but also in the number of patients attending the facilities.

The future trends of organization seem to be better than the current services available. The number of patients are increasing not from the fact that more individuals are getting ill but because patients are increasingly finding better health care and medical services in Orlando Health. The enterprise is also offering personal physician services while ensuring whole person orientation. Most of the services provide are more valuable than the amount of money paid by patients as compensations. The enterprise has developed to allow payment for added value (John, 2012). Orlando has all these opportunities from which it has worked through a well-guided management to achieve much currently, increasing its competitive advantage over other health organizations. While it offers quality services, the definition of quality could differ from one person to another. This aspect brings a controversy whenever it comes to stakeholder. The key stakeholders to Orlando are providers, patients, employers, and payers. The conflict in this case is expected to arise between patients and employer as well as providers and payers. These conflicts have an impact to the operations or the success of Orlando Health and its future trends.

Patients may expect the employer in Orlando Health to ensure a wider variety of options in health care and customize then options into the specific need of the patients. Given a situation whereby Orlando Health can hardly supply the required variety in Health care, and customize the services into specific need of patients, these patients are likely find solutions to their health problems elsewhere. Most of the patients look for Orlando Health to provide relatively cheap health services while ensuring quality. These requirements are available with Orlando Health. The enterprise maintains a lead in healthcare technology, good system of management, and quality services from a wide variety. Health services are customized to meet the increasingly varying need of consumers of health services (Calhoun, Wrobel, & Finnegan, 2011). The conflict between the patients and employer or management would happen if the costs of operation were being reduced for the organization to increase its profit margins. This problem hardly happens to Orlando and it is not likely to happen in future since the healthcare enterprise is not-for profit organization. The stakeholders providing the hospitals with health care operating requirements want to offer the best to Orlando Health with the use of the most appropriate but payers want to acquire all services at the minimum cost possible and acquire the best services possible.

Shareholders constitute part of the enterprise ownership although they have no major influence on the operation of the organization. Shareholders can mainly affect the heath care enterprise if they demand compensation or the sale of shares goes down freezing the price of each share. The government is also part of the stakeholders who can have a negative impact on the Orlando Health as an enterprise. The government observes the enterprise through business regulations as well as regulations within the Healthcare sector. The power of the government can render the health enterprise less successful by increasing health and business regulations to limit its operations. The Enterprise should be observed from the perspective of shareholders impact in order to work towards the accomplishment of its strategic goals and objective (Elswick, O’Donnell, Dinon, Stachnik, & Rippe, 2011). The market trend is welcoming good fortunes for Orlando Health as technology and innovativeness with the health sector places the enterprise in greater heights than its competitors are. The newly adopted and emerging technologies are landmarks for future success and increased competitiveness of Orlando Health. The Orlando Health Enterprise can come up with a strategic map focusing on its future success by minimizing any negative impact from stakeholders as well as increasing trust from the local communities.

Strategically, Orlando would fight through any forthcoming barriers by creating a strategic map that would bring more light to the enterprise’s health and business operations. It should increase its focus on early efforts ever identified such as community connectedness, diversification of its operations, and offering strength to families and children. It can develop a spectrum for providing training opportunities specifically for community trustees and increase the number of stakeholders from the community. These stakeholders have to be committed to the Healthy Community movement. The strategic map should also include facilitation of development in information resources. In this case, the organization would ensure that there is ensured centralization as well as accessibility to the local community (Health Central Hospital, 2012). This would also be incorporated with integration of the latest technology in healthcare and advertisement as way of informing people about the availability of specialized health care in the organization. Finally, Orlando Health should provide various programs such as celebration, revitalization, and recognition programs for the community trustees. This would place the enterprise in a better position since the possibility of facing a negative impact from stakeholders would be minimized greatly but the cycle should continue in a way that the organization keeps on reviewing its earlier efforts to make updates or to provide basis for changing its strategy.

References

Calhoun, J. G., Wrobel, C. A., & Finnegan, J. R. (2011). Current State in U.S. Public Health Competency-Based Graduate Education. Public Health Reviews 33(1) , 148-167.

Elswick, S., O’Donnell, L., Dinon, N., Stachnik, A., & Rippe, J. (2011). Incorporating Lifestyle Medicine Into a Large Health Care System: The Orlando Health Experience. American Journal of Lifestyle Medicine , 192-200.

Health Central Hospital. (2012, April 03). Orlando Health completes acquistion of Health Central. New Board of Directors announced. Retrieved May 03, 2013, from healthcentral.org: HYPERLINK “http://www.healthcentral.org/about-us/news/2012/apr/03/orlando-” http://www.healthcentral.org/about-us/news/2012/apr/03/orlando-health-completes-acquistion-health-central/

Jameson, M., & Sentinel, O. (2013, January 2). Physician Associates officially sold to Orlando Health. Retrieved May 3, 2013, from HYPERLINK “http://articles.orlandosentinel.com/2013-01-” http://articles.orlandosentinel.com/2013-01-02/news/os-physician-associates-sold-20130101_1_orlando-health-physician-associates-hospital-system

John. (2012, December 6). New Model of Care: Patient Centered Medical Home. Retrieved May 3, 2013, from orlandohealthdocs.com: HYPERLINK “http://www.orlandohealthdocs.com/orlandointernalmedicinegroup/2012/12/06/new-” http://www.orlandohealthdocs.com/orlandointernalmedicinegroup/2012/12/06/new-model-of-care-patient-centered-medical-home/

Orlando Health Physician Group. (2011). Leadership. Retrieved May 3, 2013, from orlandohealthdocs.com: http://www.orlandohealthdocs.com/leadership/

Orlando Health. (2012). Orlando Health Clinical and Outpatient Laboratory Services. Retrieved May 5, 2013, from HYPERLINK “http://www.orlandohealth.com/orlandohealth/OrlandoHealthClinicalandOutpatientLabora” http://www.orlandohealth.com/orlandohealth/OrlandoHealthClinicalandOutpatientLaboratoryServices/OrlandoHealthClinicalandOutpatientLaboratoryServices.aspx?pid=6322

Current Market Trends Risk Management

Current Market Trends: Risk Management

Critically assess the most important trends in global financial crisis that have affected financial markets, institutions and the economy from 2007 to 2009

Important lessons that can be learnt from the recent global economic crisis are purely based on risk prepared and management practices capable of averting any financial challenge. A general reluctance to handle risk with caution can be translated by all facts to have been the cause of economic downturns observed from 2007. According to Hubbard (2009, p6) reluctance to employ the best risk assessment techniques prevents the management from realizing how potent and hazardous a risk would be. The author therefore attributes failure to mitigate risk to wrong technique for measuring the risk and its gravity. To illustrate this position, the author finds fault with the manner in which top risk management firms and federal agencies conducted their risk assessment resulting in wrong approach to mitigate the risks. A cascade of ill-informed interventions could only worsen the case for the economic crisis that hit the financial markets for the better part of 2008 through 2009 and whose impact is still being felt to date. It is clear that the most important trend in the modern economic world entails risk assessment, which must be done right at all cases to avoid miscalculations resulting into multiplier disasters.

House ownership was at the centre of interest for the financial markets, having been established in the USA to such low risk levels that the major global financial players willingly ventured in it. As Fraser and Simkins (2010, p272) observe, a high demand for housing attracted high prices and supply was fast catching up to share in the benefits. The Federal Reserve was allowing the lowest interest rates for the first time in the history of the market.

Modern operations of the financial market must have mechanisms of interest-rate regulation and mitigation (Crouhy, Galai and Mark, 2006, p184). According to the author, volatility of the market should dictate the amount of caution that the management takes to mitigate the associated risks. For instance, the lending institutions should be aware of interpreting the balance sheet indicators of a possible risk. This should assist in determining when to conduct a review of the risk assessment technique and its timing. Effects of interest rate on the balance sheet assets, regarding their movements, are manifested in liabilities and should be used to translate the changes in a risky environment. Mitigation of possible risk should be approached from the perspective that emphasizes on the level of volatility of the market using such indicators. Interest rate volatility should be used by the management to set the limit that an institution can accommodate comfortably regarding the targeted earnings in the volatile market. Volatile market limits are set regarding the capacity of the institution, usually done on worst-case scenarios (Lo, 2010, p34). Interest rate and liquidity risks are calculated in volatile scenarios to such an extent that the management can shield the institution from unprecedented flux in the market. Using the above explained worst-case scenario mitigation technique, net interest income (NII) and net worth (NW) figures of the institution become very important (Hubbard, 2009, p183). Using the projections of the volatility of the financial market, the management can set worst-case scenarios of for instance Maximum Negative Impact (MNI) of about 2 billion US dollars from the NW or about 300 billion US dollars from NII of the institution. To assist risk assessment and mitigation procedures, computer packages that apply simulations using the institutions’ NII or NW are now available.

According to Das (2005, p400), liquidity is very important in determination and mitigation of financial market risk in the modern age. Possibilities that the recent economic crisis was influenced by liquidity values lie in the premise that market risk and liquidity have a strong link that can be used in advance to avert looming danger.

According to Ryan (2008, p1), the American financial market is founded on mechanisms of credit and its control, which can be used to create unlimited opportunities out of derivative assets. The financial market was fast adopting the trend of creation of new forms of credit which made the financial market a challenge to control. The new lines of revenue that the financial market initially had were then to decline fast, exposing the market to lack of sustainability. Mortgage lending opened up a series of other lending instruments which opened up loopholes in the initial mortgage lending causing a dramatic fall in interests. Cheap credit was fast to appear in the market and the uptake exposed the market to risks that the market could not respond to within the short time available. The trend in the market at the time was characterised by the presence of only one type of commodity; housing. The demand for housing increased to overwhelm the supply and effectively induce a bad form of inflation.

Poulou (2010, p1) cites the bailout pattern adopted by governments to rescue the financial system as one of irresponsible reactions that the financial crisis requires. With the high levels of unemployment in the population, the author expects that more stringent steps ought to have been put in place. It is clear that the category of players to whom the blame for swollen risk can be attributed have not been indicted. According to the author, the Wall Street and investment banks ought to be answerable to the financial crimes that they perpetrated to the world economy by tampering with the core of the global financial system. Comment on the role, application and failures of credit defaults swaps in risk management practice in financial institutions or corporations

The most infamous application of credit default swaps (CDS) and its failure in the context of 2008/9 economic crisis is perhaps the one observed at American Insurance Group (AIG). According to Hubbard (2009, p58), CDS is a market instrument whose application by mortgage banks is aimed at reducing possible risk of mortgage customers from defaulting. In simpler language, the author relates CDS as an insurance cover that mortgage lending banks take to protect themselves in case the borrowers fail to obey their repayment obligation. Regulations for a standard insurance cover are however fundamentally different from those of CDS. This implies that the risks involved for the two instruments are also fundamentally different. Failure to account for the risk involved by insurance companies, such as the giant AIG, proved to be a bitter pill to swallow for its actuaries. The assumption that the mortgage business as a risk stood the same chance of probability as ordinary insurance risk is a major inaccuracy that anybody would have spotted from afar.

According to Hampton (2009, p60) the banks immediately started to venture into dangerous ground by offering virtually new form of mortgages that nobody thought would be risky. Adjustable interest rate mortgages (ARMs) were on offer in the market, with assurances to borrowers that any mortgage out of a customer’s financial ability could now be approved, for the first time in the history of the mortgage market. Initial package was irresistible since the interest rates were very low for the initial couple of years. The lucrative part came on the mechanism of the clearance of the debt when it became necessary to raise the interest rates later on in the program. The owner would sell the house if the occupant defaulted, selling it at a profit.

Capital available to the banks with regard to regulation of the limits of lending that banks have, it became apparent that there was no boundary Hampton (2009, p61). Unregulated financial players in the nature of financial banks started to enter into the mortgage business having realized that the mortgage industry was entering a lucrative era in the USA. Further developments were in the offing when these unregulated global players of the financial market bought numerous mortgages and issued them as packages referred to as collateralized debt obligations (CDOs). The operation of the mortgage market changed since banks could now venture elsewhere with the arrival of investment banks. Stated income loans became the next line of business.

Subprime credit was the other alternative that the financial institutions were dealing with in large scale prior to the collapse of the system (Haslet, 2010, p437). The Treasury allowed borrowing to such risky levels that when the system collapsed, nothing could have been used to stop it. Bankruptcy was looming due to the heavy lending, coupled to the unbalanced mortgage lending that had dramatically changed attracting lucrative securities earnings. Huge financial players from across the globe had made their entry into the US mortgage business and their misfortune was to be transferred back to their mother companies. According to Haslet (2010, p439) securitization of instruments led to the unbalanced lending patterns whose risks rose to unprecedented all time high. It is therefore in this mix-up that credit defaults swaps (CDS) and other securities got caught up in a risk related puzzle that no one was in the capacity to solve.

With all the uncertainty of the cascade transactions outcome, tension then began to grow form where the mortgage market revealed the cracks that analysts refused to appreciate. It was too late to initiate measures to salvage the situation and secure economic fortunes at the global arena.

References

Crouhy, M., Galai, D. & Mark, R. (2006) The essentials of risk management. New York, NY: McGraw Hill Professional

Das, S. (2005) Risk management: the swaps & financial derivatives library. Clementi Loop, Singapore: John Wiley and Sons

Figlewski, S. & Levich, R. M. (2002) Risk management: the state of the art. Norwell, MA: Kluwer Academic Publishers

Fraser, J. & Simkins, B. (2010) Enterprise risk management: today’s leading research and best practices for tomorrow’s executives. Hoboken, NJ: John Wiley and Sons

Hampton, J. J. (2009) Fundamentals of enterprise risk management: how top companies assess risk, manage exposures and seize opportunities. New York, NY: AMACOM Div American Management Association

HYPERLINK “http://books.google.co.ke/books?id=gMshgNePRzUC&printsec=frontcover&dq=risk+management&hl=en&ei=_zaJTaQ9iLJxgLKYsQw&sa=X&oi=book_result&ct=result&resnum=6&ved=0CFUQ6AEwBQ#v=onepage&q=crisis&f=false” Haslet, W. V. (2010) Risk management: foundations for a changing financial world. Hoboken, NJ: John Wiley and Sons

Hubbard, D. W. (2009) The failure of risk management: why it’s broken and how to fix it. Hoboken, NJ: John Wiley and Sons

Lo, A. W. (2010) Hedge funds: an analytic perspective. Princeton, NJ: Princeton University Press

Poulou, P. (2010) Documentary Explores Roots of Financial Crisis. [online] Available from: <http://sofiaecho.com/2010/12/19/1013934_documentary-explores-roots-of-financial-crisis> [accessed 24 March 2011]

Ryan, G. (2008) The 2008-9 Financial Crisis- Causes and Effects. [online] Available from: < http://cashmoneylife.com/economic-financial-crisis-2008-causes/ > [accessed 24 March 2011]

Current Macroeconomic Situation

Current Macroeconomic Situation

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Part 3, Omnivore’s Dilemma

While the author is much interested in mentioning the read, his argument does not seem to augur well with what he preaches. Most of his writings were pointing away from the bread. However, he tends to preach more the meat and actually goes to actualize the meat diet just as Atkins diet recommends. However, personally am a fan of the Atkins meat diet, I must admit that I do not know how it works. For example, i fear that the Atkins diet only recommends taking meat but does not convince one on the reasons for the preference. The argument that of one takes only eat and no pasta or read, one is likely to lose weight. I think the argument is that the pasta and bread only add up to carbohydrates.

The Atkins diet suggest eating meat only and no bread, I think there is a lot of other risk associated with a lot of protein. Dr Robert C. Atkins may have , have invented the Atkins diet, nut I must question how it happens that people still prefer taking sliming pill or other fad diets. Though this may be the best diet, it does not make sense because; people need energy as source of energy boosters. Fat and sugar and sources of energy, but the Atkins diet fails to recommend them. Perhaps the argument fails to consider the fact that carbohydrates are not the main cause of weight gain

There are many types of foods that people think contribute to the overweight, this feeling is true but it is just how much and how often one takes them. For example, fast foods contributes significantly to overweight especially if one consumes them more often and on a daily basis; on the other hand, irregular consumption of fast foods do not have much effect on the body as fast as weight gain is concerned, it is just important to consider consuming recommended quantity of such foods. Based on the above argument, it is healthy to argue that the omnivores argument is wrong as not all foods contraindicated by the omnivores are bad. In fact, all those foods have well for health and they contribute to a healthy you. It is also imperative to note that the countries that the omnivores argue to have a positive diet have overweight people, and if the omnivores thinks slimmer is healthy, I am a little confused because that is not what healthy means

Having read Rousseau’s, a lot seems to be misplaced because the information does not add u at all. For example, most of the works are borrowed from other texts and this does make Rousseau an expert. Additionally, his argument is not sounding like those of an expert. Rousseau, introduces the consumption of mushroom and does not come clean where mushroom fits in. for one, he mushroom is a vegetable that is relatively harmless but harmful if the wrong specie is taken. The fact that most of the text in these books does not make them authors because nothing in these books are original content but other people works. This only makes their work vague. There is also the feeling that their work is mainly commercial because there is a lot of reference to the availability of the foods in supermarkets. This may be marketing gimmick. There are many mistakes in ignorance, for example, people tend to each whatever they come across without knowing the consequences of their diets and this may not be easy to change considering that, they are ignorant. People will easily eat what they want as long as they can afford these foods. It is just ingrained in the mind of people to eat what they desire and this may not be easy to change

As the supermarket is Commercial entities, they are much into business and are focused on profitability. Most supermarket are only sell the products brought by their suppliers are may not be interested in knowing how their foods contribute to the health of their customers. Therefore, it is the duty of the customers to determine the nutritional contents of the foods that the supermarkets sell to them. The customer needs to take responsible for their health. It is advisable for the consumers to realize that there are also consequences related to the foods they consume. For example, these who prefer eating lot of meat and those whom prefer not to take meat are better be careful for as the alternative foods that they eat may have impact on their lives

Should be responsible for the consequences of eating a fad diet.

Conclusion

Food is important for life but the right diet is important for health, therefore, it is important for people to know the dietary value of the foods that they consume. Additionally, fast foods are relatively harmful for health depending on the frequency and the quantity of food consumed. The Atkins diet of meat only is good but there are consequence related to lack of carbohydrates in the diet, therefore Atkins diet is not advisable.

Current Events Project, Changes in the Country

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Current Events Project, Changes in the Country

Since The cold war China since has had a variety of changes especially during the period between 1991 and 2011 (Chang & Halliday “Mao: The Unknown Story”). The changes range from economic, gender, governmental and social changes. First, in terms of trade and economy, China has experienced a myriad of changes. Since the cold war china has gained in terms of its relations with Germany, its key trade partner. For instance it is reported that the leadership of both countries have had a good relationship whereby they have been making visits between these countries (Jian “Mao’s China”). China however adopted communism following in the footsteps of the Soviet Union and has persisted with this system of governance since the second world war.

These visits were mostly reported during the period between 1993 and 1998. From these relations, china have benefited immensely as it has a ready market for its products and goods. China additionally benefits from the relations with Germany by getting the latest technological advancements. For instance, the trade volume between china and Germany by 2008 was above 100 billion US dollars in terms of governance, china is believed to be using the authoritative style of government. The country is controlled by only one party. This is believed to be the cause of the oppression of the people since the freedom of expression is curtailed. The government is thought to be oppressive in that; it limits judicial independence, has no press freedom and has no due regard for human rights. As regards the issues of gender and sexual orientations, the Chinese government slapped a ban on gay and homosexual tendencies in 1997 (Oxford Journals “China’s Policy”).

But, in 2001, the government stopped the classification of homosexuality as mental problem. Despite this advancement, the homosexuals continue to experience a lot of discrimination. First, they are not allowed to adopt children. Secondly, their relationships are not recognized by the law enforcers. Additionally, the Chinese government is ill prepared as regards that taking care of people with disability. For example, by September; the government still had the restriction of not employing teachers who are disabled physically. Additionally, there have been cases of kidnap and trafficking of people with mental disabilities in china. This case was in September. Furthermore, this human rights abuse and social discrimination was also reported in 2007 (Human rights watch “World Report 2012”). This is a clear indication that when it comes to gender roles and certain societal changes, China still seems to be lagging behind.

2.Current Event

There have been many events in china that are related to curtailing of freedom of expression by the country. For example in 2011, the government openly violated the right of expression by restricting the use of internet by journalists and bloggers. Through the state media, the government ordering for the censorship if all content that is believed to be offensive or sensitive to the state. For instance the country does not allow access to Facebook, twitter and other social sites. Additionally, the government restricted the access of information about Egypt’s uprising in January, on all the sites. Furthermore, in august, the government threatened to fine all the people or blogs that were running the story about the July Wenzhou train crash. In august, the court also sentenced 30 journalists who were believed to behind the exposure of corruption in government at the Shandong province. The problem of media being censored has for long threatened the journalism profession in china. For example in May, a journalist was demoted for his criticism on the government during the earthquake response in Sichuan. Additionally, the journalists face the ever increasing threat of being exposed to physical violence as evidenced by the assault of the journalists who declined to erase the photos taken on the stabbing incidence (Human rights watch “World Report 2012”).

Works cited

Chang, Jung & Jon, Halliday. “Mao: The Unknown Story”. New York. 2005 Print.

Jian, Chen. “Mao’s China & the Cold War”. Chapel Hill, NC: The University of North

Carolina Press, 2001 Print.

Human rights watch, World Report 2012: China. Human rights watch. 2012 PDF file.

Oxford Journals. “ China’s Policy in the Post-Cold War Era. Chinese Journal of

International Politics. Volume 2, Issue 2.Pp. 229-261. 2008 print.

Current Events Paper, IS-LM model typically used in macroeconomics

Current Events Paper, IS-LM model typically used in macroeconomics

Name

Economics

Instructor Name

11 July 2012

The essay examines at least three publications both online and offline, directly linked to the IS-LM model typically used in macroeconomics. The chief aim of the essay is to analyze one the current economic issues using the IS-LM model.

IS-LM is typically used as an acronym in the macroeconomic theory whereby the IS curve represents investments and savings. The latter refers to the amount that individuals save out of income after incurring their consumption expenditure. In line with this, savings represent the income that is not consumed but rather kept in a bank so as to earn an interest. Economists believe that savings and interest rates are highly correlated. On the other hand, investment refers to the addition to the nation’s physical stock of real capital assets. The LM curve represents the liquidity preference and the money available for investments3.

In short, the IS curve shows combination of interest rates and output that clear the goods in the market during the short run period. This means that the spending by both the government and the consumers equals to the total production in the economy. Consequently, the LM curve demonstrates all combinations of incomes and interest rates that bring about equilibrium between the money supply and the money demand.

The IS-LM curve could be used to analyze the economic problems that face several countries. The writer of the essay examines the economic problems facing Sudan, a country adjacent to Kenya. After a close examination of the market information in Sudan, it was realized that the price levels have of late skyrocketed and thereby forcing the policy makers to device ways of correcting the situation. Due to increased prices of virtually all commodities in the market, there has been a huge deficit in supply thereby bringing a shortage of commodities in the country. As a result of the shortage, both consumer’s and government’s spending have radically increased and the aggregate demand is no longer equal to the total supply.

Economists think that by use of the IS curve, various combinations of interests and outputs can be set so as to bring about an equilibrium between the demand and supply. With increased interest rates, the investment levels are significantly reduced hence the aggregate demand in the country. As a consequence of continuous increase in interest rates, the aggregate demand falls and finally equates to the supply in the economy. In this case, the prices of commodities also fall and consequently, the inflation level1 .

On the other hand, the money stock in the country is quite large and this has in fact, led to high inflation levels in the country. It is surprising that the country’s inflation level stands at 70 percent which has significantly affected the value of the country’s currency. In relation to the US dollar, the country’s currency has really depreciated and economists think that something needs to be done to help reduce the alarming rates of inflation2.

Indeed, the policy makers are pretty sure that the galloping inflation rates will be reduced, if proper economic measures are put in place. In this case, the LM curve model could be very effective in correcting the disequilibrium that subsists between the money supply and money demand. As indicated above, the LM curve is used to show the various combinations of incomes and interest rates. Perhaps, the policy makers in the country need use effective monetary and fiscal policies to help achieve the equilibrium between money supply and money demand4 .

However, the policy makers in Sudan could combat these problems by prudently applying both the fiscal, as well as monetary policies in the country. In line with this, the Sudanese government has imposed measures to curb excess liquidity and at the same time the deficits in the economy. Such measures include increasing the bank interest rates for the borrowers and at the same time encouraging savings so as to reduce the money supply in the economy.

Besides, it is also possible to reduce the money supply, in the economy, by increasing the cash reserve ratio for banks which will inevitably reduce the supply of money available for lending in virtually all commercial banks, in the country.

Further, the Central bank could increase the interest rates which will in turn discourage investments and consequently increase the marginal propensity to save while, on the other hand, lowering the marginal propensity to consume by the residents in the country.

With such measures, the Sudanese GDP in the country will equate to spending by both consumers and the government. On the other hand, the measures will bring about equilibrium in money supply and money demand hence stability in the economy.

Consequently, a stable economy will ensure that investments are increased hence more output in the economy. With increased output, the prices of basic commodities lower hence the living standards in the economy. When the inflation rates reduce, the production costs of the various goods also reduce, and this encourages domestic production thus economic development. In line with this, the surplus commodities could be exported to other countries hence increasing the export revenues and hence the terms of trade within the country. In addition, the Gross National Product increases due to an increase in the net export3.

In conclusion, it is crystal clear that the IS-LM model could be used to indicate the various equilibriums necessary for economic stability. This could be done by using the IS curve that equates production and consumption within the economy as outlined.

Consequently, the LM curve could be used to indicate the desired equilibrium level in money supply and money demand by controlling the incomes and the interest rates prevailing in the economy.

As outlined above, the equilibrium in production and consumption brings about stability in the economy such that all the commodities produced in the economy are demanded by the residents of a country. In addition, it is necessary to control the money supply in the economy so as to curb inflation levels within the economy. This could only be done by ensuring there exists equilibrium between money demand and money supply.

Work Cited

FAO. Inflation in Sudan. 07 02, 2012. www.fao.org/es/esc/prices (accessed 07 13, 2012).

N.a. Air Defence: Aegis gets better. 07 06, 2012. http://www.strategypage.com/htmw/htada/201220705.aspx (accessed 07 13, 2012).

Nordhaus, Samuelson. Economics. New York: McGraw-Hill, 2008.

Weepana, Akila. IS LM Curve. 07 22, 2004. www.wellesley.edu/economics/weerapana/econ213/econ213pdf/lect213-08.pdf (accessed 07 09, 2012).

Current Events Employees Turnover Rate

Current Events: Employees’ Turnover Rate

According to a research by CareerBuilder, approximately 21 percent of the full-time employees have diverse plans of changing their jobs in 2014. This proves to be the largest percentage of expected turnover in relation to post-recession era. Some of the factors contributing to this massive increase in the percentage turnover rate among employees include job dissatisfaction, work-life balance, and lack of promotion opportunities (Chad, 1). Employees cite lack of value and salary issues as main reasons for their job dissatisfaction. It is essential to illustrate that about 58 percent of the employees are dissatisfied with their jobs while 45 percent of the workers seeking new jobs cite dissatisfaction with advancement opportunities. In addition, 39 percent of the employees note their dissatisfaction with work-life balance hence the need to acquire new employment opportunity. According to Haefner, human resources expert, there is need to offer frequent recognition, merit bonuses, defined career paths, and training programs to illustrate the importance of employees within the organization. Moreover, this trend illustrates the fact that the labour market is warming up thus existence of a healthier economic cycle (Chad, 1).

I think employees’ turnover rate should be one of the essential reasons for an organization to review and re-examine its programs, processes, systems, and structures with the aim of addressing issues affecting employees. Employees are vital factors of production in the current society and economy. Some of the factors that organizations need to eliminate include job dissatisfaction, under-valuing employees, discrimination, and poor working conditions. Employees need to feel important and operate in an appropriate environment to maximize their potential and output for the benefit of the shareholder and stakeholders. This would be an effective approach towards limitation of the looming employees’ turnover rate in 2014.

Work Cited

Chad Brooks, “I Quit, Will be Familiar Refrain in 2014”, Business News Daily. Retrieved from <http://www.businessnewsdaily.com/5745-employee-turnover-expected-to-spike-this-year.html> on 22nd January 2014.

Current Events and U.S. Diplomacy. The importance of foreign policy of a country

Current Events and U.S. Diplomacy

Author

Institution

Introduction

The importance of foreign policy of a country cannot be gainsaid as far as the stability and economic well being of the country is concerned. This is especially considering the interconnectedness of countries, where it has been recognized that countries cannot live in isolation, rather they have to interact and depend on other countries and collaborate with them on varied issues. However, there are varied threats that the United States has come across in its history, which have necessitated a change in its foreign policy, as well as specific spelling of the same (Ferrell, 2006). These are, essentially, presidential doctrines, which reveal the United States attitudes in its approaches and dealings with its political goals, as well as approaches against foreign military and national economic policies (Jeffery, 2000). A large number of presidential doctrines were made during the Cold War and, in fact, are related with the same, while others are a reflection of the problems, as well as emerging problems pertaining to their time (Ferrell, 2006). Indeed, they underline a foreign policy ideology that is more consistently applied at a given time, as was the case for the Truman’s Doctrine.

The Truman Doctrine was crafted in an effort to curb the likelihood of a communist insurgency in Turkey and Greece (Jeffery, 2000). In the doctrine, President Truman requested the United States Congress to offer economic and military aid amounting to $400 million, so as to curb this insurgency. The doctrine was based on the requests by England, which, after being considerably weakened by the two World Wars, had abandoned its commitment to Turkey and Greece (Jeffery, 2000). In this regard, it urged the United States to step in and save the two countries from being subverted into communism. In this regard, President Truman, in 1947 lobbied the United States Congress to come to the aid of the two Mediterranean countries through the provision of $400 million (Jeffery, 2000). The statement used in justifying the doctrine, as Truman told the Congress, was that that the United States must have the policy for supporting free people that are resisting any attempts of subjugation by armed minorities, or even outside pressure.

The United States and Greece relations before Truman’s Doctrine

A large number of studies pertaining to the relations between the United States and Greece focus primarily on the Cold War period after the Truman Doctrine. However, the two countries interacted on a number of fronts prior to the world war. The interest of the United States on Greece has been longstanding, although it has primarily been on the unofficial and informal level (Ferrell, 2006). Prior to the cold enunciation of the doctrine, the United States government had not been in active support of the Greek efforts. Indeed, the American philhellenes had been in support of attempts to protect and achieve Greek autonomy (Smuckler, 2001). They viewed contemporary Greece as an embodiment of virtues pertaining to its classical counterpart (republicanism, freedom of thought, human dignity, and knowledge among others), and worked in a diligent albeit unsuccessful manner to push policymakers in the United States to enhanced official concern for and interest in Greece (Jeffery, 2000). Scholars have noted that pre-Cold War intervention by the United States in Greek affairs was primarily motivated by perceived associations among the Greek and American political cultures (Bostdorff, 2008). The American Philhellenes felt that they were indebted to ancient Greece especially with regard to their democratic institutions, in which case they believes that they have a duty and obligation to impart the blessing pertaining to liberal and free institutions in Greece, as they considered this to be the land where these ideals had initially been conceived (Smuckler, 2001). The two countries had fought together in the World Wars, had similar ideals and had participated in NAT, the OSCE, as well as other international treaties that have formed strong basis for strategic cooperation between the two countries (Bostdorff, 2008). Underlining this cooperation is the fact that the United States has maintained Naval Support Activity in Souda bay in Crete, which underlines intense military cooperation. On the same note, Greek citizens are allowed to visit the United States for professional reasons and tourism without necessarily having a visa (Smuckler, 2001). The European Union- United States relations in the framework of Transatlantic Dialogue encompass a wide range of commercial, political and economic issues, not to mention institutionalized contacts, security issues, as well as coordination on varied levels (Smuckler, 2001). On the same note, the two countries have been undertaking government-to-government level interactions, especially considering the high-level Greece-United States Economic and Commercial Cooperation Committee (ECCC), which has become a strategic tool for the two sides to enhance their trade flows and bilateral economic cooperation (Bostdorff, 2008). Indeed, efforts are being undertaken in the business sector to enhance B2B cooperation between the two countries with the aim of facilitating or allowing for the access of enhanced markets in the Middle East, Southern Europe, Black Sea and Caucasian Region. This has been beneficial to the two countries as it has leveraged the United States business and technological leading edge, as well as Greece’s strategic geo-economic position (Spalding, 2006). All these elements of collaboration had their foundations formed by the Truman doctrine, which allowed for enhanced participation of the United States in Greece’s affairs.

Effects of the Truman Doctrine on Global Affairs

The Truman Doctrine had far-reaching effects on the United States, as well as the global affairs. First, it defined the manner in which the United States and other countries under the United Nations approach foreign interventions (Bostdorff, 2008). The doctrine argued that failure to secure the welfare and stability of people in any part of the world would, essentially, be endangering the welfare and stability of the free world (Spalding, 2006). This line of thinking was instrumental in the formation of the United Nations, which has underlined the fact that local threats come with worldwide consequences.

In addition, the Truman Doctrine acknowledged the fact that foreign interventions were joint military, political and economic ventures. It underlined the fact that foreign interventions did not necessarily have to be reliant on military action (Bostdorff, 2008). Today, countries such as United States, and European countries have adopted economic and political sanctions as part of their foreign policy, thereby allowing for their achievement of international goals without the use of coercion or violence (Spalding, 2006).

Moreover, the Doctrine cemented the place of the United States in the frontline in the international community (Spalding, 2006). The country’s leadership is extremely crucial in spreading democracy, prosperity and peace around the globe. It is, therefore, no wonder that the United States has been intervening in varied countries even without the participation of the United Nations.

References

Bostdorff, D. M. (2008). Proclaiming the Truman Doctrine: The Cold War call to arms. College Station: Texas A & M University Press.

Ferrell, R. H. (2006). Harry S. Truman and the Cold War revisionists. Columbia: University of Missouri Press.

Jeffery, J. S. (2000). Ambiguous commitments and uncertain policies: The Truman Doctrine in Greece, 1947-1952. Lanham: Lexington Books.

Smuckler, R. H. (2001). The Truman Doctrine in Greece.

Spalding, E. E. (2006). The first cold warrior: Harry Truman, containment, and the remaking of liberal internationalism. Lexington: University Press of Kentucky.

Current Events and the U.S Diplomacy

Current Events and the U.S Diplomacy

A presidential doctrine is usually an ideological platform, which is used by a president in order to advance a certain policy towards a region or a country. The doctrine is for the purpose of accomplishing established goals and policy on behalf of the United States. American interest in Greece as well as its people has existed for quite a long time even before the Truman Doctrine came into place (Frazier, 1999). The relationship was in both in unofficial and official levels as it had been witnessed. American government policies and public attitudes directed towards Greece have existed for a long time.

Washington saw a reason to ensure that Greece did not end up under the domination that the Soviet Union wanted to impose on them. Before, the Truman doctrine, the American government was not quite active in trying to support the efforts of the Greek. For a long time, American philhellenes had protected and supported the Greeks in their struggle for independence. America saw modern Greece as being a nation filled with many virtues and thus a suitable counterpart. Some of these virtues included republicanism, love of the arts and beauty, knowledge, freedom of thought and human dignity. Therefore, American policy makers worked hard to ensure that they accommodated Greece in every way possible (Spalding, 2006).

The Pre-Cold War association between Greece and America was motivated by the fact that both nations would benefit from each other’s political culture. The United States was indebted to quite some extent to ancient Greece because of its numerous democratic institutions. The philhellenes believed that they had to ensure that Greece was impacted by blessings of liberal and free institutions. Therefore, when America became aware of the intentions that the Soviet Union had for Greece it knew that it had to help its ally. It thus came up with the Truman Doctrine, which would ensure that military and economic aid would be provided to Greece. Truman told the American congress that the Doctrine was meant to ensure that people who were free were supported, as they were resisting subjugation attempts from outside pressures and armed minorities (Spalding, 2006).

Many nations in Western Europe came to believe that Truman was one of the best American presidents, especially after he came up with the Truman Doctrine. Countries that were affected by communism would be supported by the United States, and in the year 1947, the Marshall plan came into existence. It ensured that struggling countries in Western Europe would be provided with an economic foundation. Furthermore, the 1949 Atlantic Treaty ensured that the western nations would be supplied with military assistance as this would help in resolving the political and economic chaos of post Second World War. The measures would be effective in preserving Western Europe democracy and thus maintaining American freedom. Some of these western European nations were Italy, Iceland, France, Denmark and Belgium, among others (Lykogiannis, 2002).

Currently, it is evident that Greece is facing a debt crisis that has greatly affected its economy. However, it seems that the situation as well as the relationship that existed during the Truman Doctrine time has changed between the two countries. It seems that president Truman has been the only president who was interested in matters that affected Greece. The other presidents since then did not do anything to help Greece. Now that Greece is facing a crisis, the current American government is not doing much to assist it. There is no enough support being given to Greece because at the moment, the United States gains nothing by assisting Greece. This is opposed to the past when there was a Cold War and America had to ensure that it met its interests.

The Domino effect theory provided a good explanation as to why the United States wanted to help Greece so that other countries in Western Europe would embrace it as well. Turkey and Greece were the only obstacles that were preventing the Soviet Union from having control over the Mediterranean, a strategic and economic area. On the other hand, Truman saw this as an opportunity to use its military and economic strength in order to gain control over the Mediterranean region (Merrill, 2006). If they were to succeed, America would then find it easy to take over and control other countries, and especially those ones located in Western Europe. Therefore, the Doctrine was meant to change the behavior of Greece so that other countries would be influenced by it and thus be receptive of the American government. The Truman Doctrine was therefore a means for the United States to ensure that it would have more power than the communists.

In conclusion, the Truman Doctrine assisted Greece when it was experiencing many problems. In turn, the United States took advantage of the situation to make its might known. However, it is unfortunate that the Truman Doctrine is now no longer relevant as Greece is facing a crisis and nothing substantial is being done to help it. Indeed, the American intervention plan to help stop spread communism in Greece succeeded because of the Truman Doctrine.

References

Frazier, Robert. (1999). Acheson and the Formulation of the Truman Doctrine. Journal of Modern Greek Studies, 17, 2, 229–251.

Lykogiannis, Athanasios. (2002). Britain and the Greek Economic Crisis, 1944–1947: From Liberation to the Truman Doctrine. Missouri: University of Missouri Press.

Merrill, Dennis. (2006). The Truman Doctrine: Containing Communism and Modernity. Presidential Studies Quarterly, 36, 1, 27–37.

Spalding, Elizabeth. (2006). The First Cold Warrior: Harry Truman, Containment, and the Remaking of Liberal Internationalism. Kentucky: The University Press of Kentucky.