Three Major Issues Faced By Companies Going Overseas Marketing Essay

Three Major Issues Faced By Companies Going Overseas Marketing Essay The chapter begins by looking at the concept of market entry strategies within the control of a chosen marketing mix. It then goes on to describe the different forms of entry strategy, both direct and indirect exporting and foreign production, and the advantages and disadvantages connected with each method. The chapter gives specific details on countertrade, which is very prevalent in global marketing, and then concludes by looking at the special features of commodity trading with its close coupling between production and marketing. Basic issues An organisation wishing to go international faces three major issues: i) Marketing which countries, which segments, how to manage and implement marketing effort, how to enter with intermediaries or directly, with what information? ii) Sourcing whether to obtain products, make or buy? iii) Investment and control joint venture, global partner, acquisition? Decisions in the marketing area focus on the value chain (see figure 7.1). The strategy or entry alternatives must ensure that the necessary value chain activities are performed and integrated. Table 7.1 Examples of elements included in the export marketing mix 1. Product support Product sourcing Match existing products to markets air, sea, rail, road, freight New products Product management Product testing Manufacturing specifications Labelling Packaging Production control Market information 2. Price support Establishment of prices Discounts Distribution and maintenance of pricelists Competitive information Training of agents/customers 3. Promotion/selling support Advertising Promotion literature Direct mail Exhibitions, trade shows Printing Selling (direct) Sales force Agents commissions Sale or returns 4. Inventory support Inventory management Warehousing Distribution Parts supply Credit authorisation 5. Distribution support Funds provision Raising of capital Order processing Export preparation and documentation Freight forwarding Insurance Arbitration 6. Service support Market information/intelligence Quotes processing Technical aid assistance After sales Guarantees Warranties/claims Merchandising Sales reports, catalogues literature Customer care Budgets Data processing systems Insurance Tax services Legal services Translation 7. Financial support Billing, collecting invoices Hire, rentals Planning, scheduling budget data Auditing Details on the sourcing element have already been covered in the chapter on competitive analysis and strategy. Concerning investment and control, the question really is how far the company wishes to control its own fate. The degree of risk involved, attitudes and the ability to achieve objectives in the target markets are important facets in the decision on whether to license, joint venture or get involved in direct investment. Cunningham1 (1986) identified five strategies used by firms for entry into new foreign markets: i) Technical innovation strategy perceived and demonstrable superior products ii) Product adaptation strategy modifications to existing products iii) Availability and security strategy overcome transport risks by countering perceived risks iv) Low price strategy penetration price and, v) Total adaptation and conformity strategy foreign producer gives a straight copy. In marketing products from less developed countries to developed countries point iii) poses major problems. Buyers in the interested foreign country are usually very careful as they perceive transport, currency, quality and quantity problems. This is true, say, in the export of cotton and other commodities. Because, in most agricultural commodities, production and marketing are interlinked, the infrastructure, information and other resources required for building market entry can be enormous. Sometimes this is way beyond the scope of private organisations, so Government may get involved. It may get involved not just to support a specific commodity, but also to help the public good. Whilst the building of a new road may assist the speedy and expeditious transport of vegetables, for example, and thus aid in their marketing, the road can be put to other uses, in the drive for public good utilities. Moreover, entry strategies are often marked by lumpy investments. Huge investments may have to be undertaken, with the investor paying a high risk price, long before the full utilisation of the investment comes. Good examples of this include the building of port facilities or food processing or freezing facilities. Moreover, the equipment may not be able to be used for other processes, so the as set specific equipment, locked into a specific use, may make the owner very vulnerable to the bargaining power of raw material suppliers and product buyers who process alternative production or trading options. Zimfreeze, Zimbabwe is experiencing such problems. It built a large freezing plant for vegetables but found itself without a contract. It has been forced, at the moment, to accept sub optional volume product materials just in order to keep the plant ticking over. In building a market entry strategy, time is a crucial factor. The building of an intelligence system and creating an image through promotion takes time, effort and money. Brand names do not appear overnight. Large investments in promotion campaigns are needed. Transaction costs also are a critical factor in building up a market entry strategy and can become a high barrier to international trade. Costs include search and bargaining costs. Physical distance, language barriers, logistics costs and risk limit the direct monitoring of trade partners. Enforcement of contracts may be costly and weak legal integration between countries makes things difficult. Also, these factors are important when considering a market entry strategy. In fact these factors may be so costly and risky that Governments, rather than private individuals, often get involved in commodity systems. This can be seen in the case of the Citrus Marketing Board of Israel. With a monopoly export marketing board, the entire system can behave like a single firm, regulating the mix and quality of products going to different markets and negotiating with transporters and buyers. Whilst these Boards can experience economies of scale and absorb many of the risks listed above, they can shield producers from information about, and from. buyers. They can also become the fiefdoms of vested interests and become political in nature. They then result in giving reduced production incentives and cease to be demand or market orientated, which is detrimental to producers. Normal ways of expanding the markets are by expansion of product line, geographical development or both. It is important to note that the more the product line and/or the geographic area is expanded the greater will be the managerial complexity. New market opportunities may be made available by expansion but the risks may outweigh the advantages, in fact it may be better to concentrate on a few geographic areas and do things well. This is typical of the horticultural industry of Kenya and Zimbabwe. Traditionally these have concentrated on European markets where the markets are well known. Ways to concentrate include concentrating on geographic areas, reducing operational variety (more standard products) or making the organisational form more appropriate. In the latter the attempt is made to globalise the offering and the organisation to match it. This is true of organisations like Coca Cola and MacDonalds. Global strategies include country centred strategies (highly decentralised and limited international coordination), local market approaches (the marketing mix developed with the specific local (foreign) market in mind) or the lead market approach (develop a market which will be a best predictor of other markets). Global approaches give economies of scale and the sharing of costs and risks between markets. Entry strategies There are a variety of ways in which organisations can enter foreign markets. The three main ways are by direct or indirect export or production in a foreign country (see figure 7.2). Exporting Exporting is the most traditional and well established form of operating in foreign markets. Exporting can be defined as the marketing of goods produced in one country into another. Whilst no direct manufacturing is required in an overseas country, significant investments in marketing are required. The tendency may be not to obtain as much detailed marketing information as compared to manufacturing in marketing country; however, this does not negate the need for a detailed marketing strategy. The advantages of exporting are:  · manufacturing is home based thus, it is less risky than overseas based  · gives an opportunity to learn overseas markets before investing in bricks and mortar  · reduces the potential risks of operating overseas. The disadvantage is mainly that one can be at the mercy of overseas agents and so the lack of control has to be weighed against the advantages. For example, in the exporting of African horticultural products, the agents and Dutch flower auctions are in a position to dictate to producers. A distinction has to be drawn between passive and aggressive exporting. A passive exporter awaits orders or comes across them by chance; an aggressive exporter develops marketing strategies which provide a broad and clear picture of what the firm intends to do in the foreign market. Pavord and Bogart2 (1975) found significant differences with regard to the severity of exporting problems in motivating pressures between seekers and non-seekers of export opportunities. They distinguished between firms whose marketing efforts were characterized by no activity, minor activity and aggressive activity. Those firms who are aggressive have clearly defined plans and strategy, including product, price, promotion, distribution and research elements. Passiveness versus aggressiveness depends on the motivation to export. In countries like Tanzania and Zambia, which have embarked on structural adjustment programmes, organisations are being encouraged to export, motivated by foreign exchange earnings potential, saturated domestic markets, growth and expansion objectives, and the need to repay debts incurred by the borrowings to finance the programmes. The type of export response is dependent on how the pressures are perceived by the decision maker. Piercy (1982)3 highlights the fact that the degree of involvement in foreign operations depends on endogenous versus exogenous motivating factors, that is, whether the motivations were as a result of active or aggressive behaviour based on the firms internal situation (endogenous) or as a result of reactive environmental changes (exogenous). If the firm achieves initial success at exporting quickly all to the good, but the risks of failure in the early stages are high. The learning effect in exporting is usually very quick. The key is to learn how to minimise risks associated with the initial stages of market entry and commitment this process of incremental involvement is called creeping commitment (see figure 7.3). Exporting methods include direct or indirect export. In direct exporting the organisation may use an agent, distributor, or overseas subsidiary, or act via a Government agency. In effect, the Grain Marketing Board in Zimbabwe, being commercialised but still having Government control, is a Government agency. The Government, via the Board, are the only permitted maize exporters. Bodies like the Horticultural Crops Development Authority (HCDA) in Kenya may be merely a promotional body, dealing with advertising, information flows and so on, or it may be active in exporting itself, particularly giving approval (like HCDA does) to all export documents. In direct exporting the major problem is that of market information. The exporters task is to choose a market, find a representative or agent, set up the physical distribution and documentation, promote and price the product. Control, or the lack of it, is a major problem which often results in decisions on pricing, certification and promoti on being in the hands of others. Certainly, the phytosanitary requirements in Europe for horticultural produce sourced in Africa are getting very demanding. Similarly, exporters are price takers as produce is sourced also from the Caribbean and Eastern countries. In the months June to September, Europe is on season because it can grow its own produce, so prices are low. As such, producers are better supplying to local food processors. In the European winter prices are much better, but product competition remains. According to Collett4 (1991)) exporting requires a partnership between exporter, importer, government and transport. Without these four coordinating activities the risk of failure is increased. Contracts between buyer and seller are a must. Forwarders and agents can play a vital role in the logistics procedures such as booking air space and arranging documentation. A typical coordinated marketing channel for the export of Kenyan horticultural produce is given in figure 7.4. In this case the exporters can also be growers and in the low season both these and other exporters may send produce to food processors which is also exported. Figure 7.4 The export marketing channel for Kenyan horticultural products. Exporting can be very lucrative, especially if it is of high value added produce. For example in 1992/93 Zimbabwe exported 5 338,38 tonnes of flowers, 4 678,18 tonnes of horticultural produce and 12 000 tonnes of citrus at a total value of about US$ 22 016,56 million. In some cases a mixture of direct and indirect exporting may be achieved with mixed results. For example, the Grain Marketing Board of Zimbabwe may export grain directly to Zambia, or may sell it to a relief agency like the United Nations, for feeding the Mozambican refugees in Malawi. Payment arrangements may be different for the two transactions. Nali products of Malawi gives an interesting example of a passive to active exporting mode. CASE 7.1 Nali Producers Malawi Nali group, has, since the early 1970s, been engaged in the growing and exporting of spices. Spices are also used in the production of a variety of sauces for both the local and export market. Its major success has been the growing and exporting of Birdseye chilies. In the early days knowledge of the market was scanty and thus the company was obtaining ridiculously low prices. Towards the end of 1978 Nali chilies were in great demand, yet still the company, in its passive mode, did not fully appreciate the competitive implications of the business until a number of firms, including Lonrho and Press Farming, started to grow and export. Again, due to the lack of information, a product of its passivity, the firm did not realise that Uganda, with their superior product, and Papua New Guinea were major exporters, However, the full potential of these countries was hampered by internal difficulties. Nali was able to grow into a successful commercial enterprise. However, with the end of the internal problems, Uganda in particular, began an aggressive exporting policy, using their overseas legations as commercial propagandists. Nali had to respond with a more formal and active marketing operation. However it is being now hampered by a number of important exogenous factors. The entry of a number of new Malawian growers, with inferior products, has damaged the Malawian chili reputation, so has the lack of a clear Government policy and the lack of financing for traders, growers and exporters. The latter only serves to emphasise the point made by Collett, not only do organisations need to be aggressive, they also need to enlist the support of Government and importers. It is interesting to note that Korey (1986) warns that direct modes of market entry may be less and less available in the future. Growing trading blocs like the EU or EFTA means that the establishing of subsidiaries may be one of the only means forward in future. It is interesting to note that Korey5 1986 warned that direct modes of market entry may be less and less available in the future. Growing trading blocks like the EU or EFTA means that the establishment of subsidiaries may be one of the only ways forward in future. Indirect methods of exporting include the use of trading companies (very much used for commodities like cotton, soya, cocoa), export management companies, piggybacking and countertrade. Indirect methods offer a number of advantages including:  · Contracts in the operating market or worldwide  · Commission sates give high motivation (not necessarily loyalty)  · Manufacturer/exporter needs little expertise  · Credit acceptance takes burden from manufacturer. Piggybacking Piggybacking is an interesting development. The method means that organisations with little exporting skill may use the services of one that has. Another form is the consolidation of orders by a number of companies in order to take advantage of bulk buying. Normally these would be geographically adjacent or able to be served, say, on an air route. The fertilizer manufacturers of Zimbabwe, for example, could piggyback with the South Africans who both import potassium from outside their respective countries. Countertrade By far the largest indirect method of exporting is countertrade. Competitive intensity means more and more investment in marketing. In this situation the organisation may expand operations by operating in markets where competition is less intense but currency based exchange is not possible. Also, countries may wish to trade in spite of the degree of competition, but currency again is a problem. Countertrade can also be used to stimulate home industries or where raw materials are in short supply. It can, also, give a basis for reciprocal trade. Estimates vary, but countertrade accounts for about 20-30% of world trade, involving some 90 nations and between US $100-150 billion in value. The UN defines countertrade as commercial transactions in which provisions are made, in one of a series of related contracts, for payment by deliveries of goods and/or services in addition to, or in place of, financial settlement. Countertrade is the modem form of barter, except contracts are not legal and it is not covered by GATT. It can be used to circumvent import quotas. Countertrade can take many forms. Basically two separate contracts are involved, one for the delivery of and payment for the goods supplied and the other for the purchase of and payment for the goods imported. The performance of one contract is not contingent on the other although the seller is in effect accepting products and services from the importing country in partial or total settlement for his exports. There is a broad agreement that countertrade can take various forms of exchange like barter, counter purchase, switch trading and compensation (buyback). For example, in 1986 Albania began offering items like spring water, tomato juice and chrome ore in exchange for a contract to build a US $60 million fertilizer and methanol complex. Information on potential exchange can be obtained from embassies, trade missions or the EU trading desks. Barter is the direct exchange of one good for another, although valuation of respective commodities is difficult, so a currency is used to underpin the items value. Barter trade can take a number of formats. Simple barter is the least complex and oldest form of bilateral, non-monetarised trade. Often it is called straight, classical or pure barter. Barter is a direct exchange of goods and services between two parties. Shadow prices are approximated for products flowing in either direction. Generally no middlemen are involved. Usually contracts for no more than one year are concluded, however, if for longer life spans, provisions are included to handle exchange ratio fluctuations when world prices change. Closed end barter deals are modifications of straight barter in that a buyer is found for goods taken in barter before the contract is signed by the two trading parties. No money is involved and risks related to product quality are significantly reduced. Clearing account barter, also termed clearing agreements, clearing arrangements, bilateral clearing accounts or simply bilateral clearing, is where the principle is for the trades to balance without either party having to acquire hard currency. In this form of barter, each party agrees in a single contract to purchase a specified and usually equal value of goods and services. The duration of these transactions is commonly one year, although occasionally they may extend over a longer time period. The contracts value is expressed in non-convertible, clearing account units (also termed clearing dollars) that effectively represent a line of credit in the central bank of the country with no money involved. Clearing account units are universally accepted for the accounting of trade between countries and parties whose commercial relationships are based on bilateral agreements. The contract sets forth the goods to be exchanged, the rates of exchange, and the length of time for completing the transaction. Limited export or import surpluses may be accumulated by either party for short periods. Generally, after one years time, imbalances are settled by one of the following approaches: credit against the following year, acceptance of unwanted goods, payment of a previously specified penalty or payment of the difference in hard currency. Trading specialists have also initiated the practice of buying clearing dollars at a discount for the purpose of using them to purchase saleable products. In turn, the trader may forfeit a portion of the discount to sell these products for hard currency on the international market. Compared with simple barter, clearing accounts offer greater flexibility in the length of time for drawdown on the lines of credit and the types of products exchanged. Counter purchase, or buyback, is where the customer agrees to buy goods on condition that the seller buys some of the customers own products in return (compensatory products). Alternatively, if exchange is being organised at national government level then the seller agrees to purchase compensatory goods from an unrelated organisation up to a pre-specified value (offset deal). The difference between the two is that contractual obligations related to counter purchase can extend over a longer period of time and the contract requires each party to the deal to settle most or all of their account with currency or trade credits to an agreed currency value. Where the seller has no need for the item bought he may sell the produce on, usually at a discounted price, to a third party. This is called a switch deal. In the past a number of tractors have been brought into Zimbabwe from East European countries by switch deals. Compensation (buy-backs) is where the supplier agrees to take the output of the facility over a specified period of time or to a specified volume as payment. For example, an overseas company may agree to build a plant in Zambia, and output over an agreed period of time or agreed volume of produce is exported to the builder until the period has elapsed. The plant then becomes the property of Zambia. Khoury6 (1984) categorises countertrade as follows (see figure 7.5): One problem is the marketability of products received in countertrade. This problem can be reduced by the use of specialised trading companies which, for a fee ranging between 1 and 5% of the value of the transaction, will provide trade related services like transportation, marketing, financing, credit extension, etc. These are ever growing in size. Countertrade has disadvantages:  · Not covered by GATT so dumping may occur  · Quality is not of international standard so costly to the customer and trader  · Variety is tow so marketing of wkat is limited  · Difficult to set prices and service quality  · Inconsistency of delivery and specification,  · Difficult to revert to currency trading so quality may decline further and therefore product is harder to market. Figure 7.5 Classification of countertrade Shipley and Neale7 (1988) therefore suggest the following:  · Ensure the benefits outweigh the disadvantages  · Try to minimise the ratio of compensation goods to cash if possible inspect the goods for specifications  · Include all transactions and other costs involved in countertrade in the nominal value specified for the goods being sold  · Avoid the possibility of error of exploitation by first gaining a thorough understanding of the customers buying systems, regulations and politics,  · Ensure that any compensation goods received as payment are not subject to import controls. Despite these problems countertrade is likely to grow as a major indirect entry method, especially in developing countries. Foreign production Besides exporting, other market entry strategies include licensing, joint ventures, contract manufacture, ownership and participation in export processing zones or free trade zones. Licensing: Licensing is defined as the method of foreign operation whereby a firm in one country agrees to permit a company in another country to use the manufacturing, processing, trademark, know-how or some other skill provided by the licensor. It is quite similar to the franchise operation. Coca Cola is an excellent example of licensing. In Zimbabwe, United Bottlers have the licence to make Coke. Licensing involves little expense and involvement. The only cost is signing the agreement and policing its implementation. Licensing gives the following advantages:  · Good way to start in foreign operations and open the door to low risk manufacturing relationships  · Linkage of parent and receiving partner interests means both get most out of marketing effort  · Capital not tied up in foreign operation and  · Options to buy into partner exist or provision to take royalties in stock. The disadvantages are:  · Limited form of participation to length of agreement, specific product, process or trademark  · Potential returns from marketing and manufacturing may be lost  · Partner develops know-how and so licence is short  · Licensees become competitors overcome by having cross technology transfer deals and  · Requires considerable fact finding, planning, investigation and interpretation. Those who decide to license ought to keep the options open for extending market participation. This can be done through joint ventures with the licensee. Joint ventures Joint ventures can be defined as an enterprise in which two or more investors share ownership and control over property rights and operation. Joint ventures are a more extensive form of participation than either exporting or licensing. In Zimbabwe, Olivine industries has a joint venture agreement with HJ Heinz in food processing. Joint ventures give the following advantages:  · Sharing of risk and ability to combine the local in-depth knowledge with a foreign partner with know-how in technology or process  · Joint financial strength  · May be only means of entry and  · May be the source of supply for a third country. They also have disadvantages:  · Partners do not have full control of management  · May be impossible to recover capital if need be  · Disagreement on third party markets to serve and  · Partners may have different views on expected benefits. If the partners carefully map out in advance what they expect to achieve and how, then many problems can be overcome. Ownership: The most extensive form of participation is 100% ownership and this involves the greatest commitment in capital and managerial effort. The ability to communicate and control 100% may outweigh any of the disadvantages of joint ventures and licensing. However, as mentioned earlier, repatriation of earnings and capital has to be carefully monitored. The more unstable the environment the less likely is the ownership pathway an option. These forms of participation: exporting, licensing, joint ventures or ownership, are on a continuum rather than discrete and can take many formats. Anderson and Coughlan8 (1987) summarise the entry mode as a choice between company owned or controlled methods integrated channels or independent channels. Integrated channels offer the advantages of planning and control of resources, flow of information, and faster market penetration, and are a visible sign of commitment. The disadvantages are that they incur many costs (especially marketing), the risks are high, some may be more effective than others (due to culture) and in some cases their credibility amongst locals may be lower than that of controlled independents. Independent channels offer lower performance costs, risks, less capital, high local knowledge and credibility. Disadvantages include less market information flow, greater coordinating and control difficulties and motivational difficulties. In addition they may not be will ing to spend money on market development and selection of good intermediaries may be difficult as good ones are usually taken up anyway. Once in a market, companies have to decide on a strategy for expansion. One may be to concentrate on a few segments in a few countries typical are cashewnuts from Tanzania and horticultural exports from Zimbabwe and Kenya or concentrate on one country and diversify into segments. Other activities include country and market segment concentration typical of Coca Cola or Gerber baby foods, and finally country and segment diversification. Another way of looking at it is by identifying three basic business strategies: stage one international, stage two multinational (strategies correspond to ethnocentric and polycentric orientations respectively) and stage three global strategy (corresponds with geocentric orientation). The basic philosophy behind stage one is extension of programmes and products, behind stage two is decentralisation as far as possible to local operators and behind stage three is an integration which seeks to synthesize inputs from world and regional headquarters an d the country organisation. Whilst most developing countries are hardly in stage one, they have within them organisations which are in stage three. This has often led to a rebellion against the operations of multinationals, often unfounded. Export processing zones (EPZ) Whilst not

The Woodspurge Poem Analysis

The wind flapped loose, the wind was still, Shaken out dead from tree and hill; I had walked on at the wind’s will – I sat now, for the wind was still.Between my knees my forehead was – My lips, drawn in, said not Alas! My hair was over in the grass, My naked ears heard the day pass.My eyes, wide open, had the run Of some ten weeds to fix upon; Among those few out of the sun, The woodspurge flowered, three cups in one.From perfect grief there need not be Wisdom or even memory; One thing then learnt remains to me – The woodspurge has a cup of three.Illustration This poem took place in hill where the trees are shaken out by the wind and a field of grass where the man in this poet saw woodspurge as one of the ten weeds and grieving for his problem all day along as the wind blown. The poet described a visual imagery by points out what that man can see while grieving in field, such as in ninth and tenth line : â€Å"My eyes, wide open, had the run†Ã¢â‚¬Å "Of some ten weeds to fix upon;† The tactile imagery also can be found in seventh line â€Å"My hair was over in the grass† the touch’s feel can be sensed when his hair is over the grass as he put his head to rest on it. Kinesthetic imagery, this motion happened when the man bent his head on to between his knees until his forehead touch  those knees in fifth line, shows a grieving gesture.The word â€Å"wind† in first stanza is a metaphore from a word â€Å"spirit† or more likely a â€Å"determination†, the wind itself got a personification in third line, where the poet wrote â€Å"I had walked on at the wind’s will –.† By stating that a wind could have a will like a people. Ironically, this man seems lack of determination, he only move to somewhere as the wind guide him and stopped when the wind is gone.General MeaningIt is about a man that covered with sadness and he seems lack of resolve, his body only move as the wi nd blows to somewhere else, until he found a bloomed woodspurge that makes him at ease.Detailed MeaningBefore we going more deeper in detailed meaning, it might be wise to review the trivia fact about Dante’s poem especially The Woodspurge. This poem were made approximately between 1828 – 1882, the period where Victorian’s were arisen. Meanwhile, in the year 1848, there was a movement by a group named â€Å"Pre-Raphaelite Brotherhood† and Dante was also one of the founder of this group.The group’s intention is none other than to reject social-political theme in literary works and this group also established Aestheticism movement, in the meaning of aestheticism â€Å"as early as 1750, when the German philosopher, Alexander Gottlieb Baumgarten, in his Aesthetica, used it to identify a separate branch of philosophy. He transformed the original Greek usage of the word, applied to things perceived by the senses, into criticism of taste concerned exclus ively with beauty.† (Denney 38). So, their’s intention was to make a literary works become more â€Å"aesthetic† by reject the social-political theme.Due to its a poem full with aesthetic aspects, let’s evaluate it from top to bottom. â€Å"The wind flapped loose, the wind was still,† with such words for an opening in first line, we can considered it is truly a sentence with aestheticism’s beauty. Why so? It said that the wind flapped loose, those words â€Å"flapped† and â€Å"loose† are contradicts for each other. Flapped means flutter, throb or thrashing which means it is conducted with so much power, on the other hand, the word loose means not tight, unconstrained and relaxed.A powerful wind with relaxed feeling, it made the readers will  feel the peculiar sensation by read it in matched tone, then it said that the wind was still. Wind, however, is a moving air and Dante wrote the wind with capabality to stand still, it ju st bring the imagination to the whole new level and violates the wind’s law for suited to stagnate. It is still acceptable in literary works and we can admire more the nature by imagining something that nature are not competent to, though.â€Å"Shaken out dead from tree and hill;† for the second line, it might have a denotation like this; the winds shaken out dead from tree and hill. This may have a meaning that the winds able to cleanse the ‘dead’ from tree and hill because shaken out have a meaning uncluttered, to cleanse and the word ‘dead’ might a metaphor from sadness, anguish or misery. And the wind can simply took the sorrow out of the tree, still, the wind only remove it and the melancholic trait that has been cleansed, may outgrowth again sometimes because its humane for it to happens. There is also potency that tree might a metaphor for a man but, in the next line, the poet already talked about it so this hypothesis could not fully-a ccurately correct.â€Å"I had walked on at the wind’s will –â€Å" the third line is about a man that always seems walk as the wind’s guidance. There is also an old proverb that said â€Å"only dead fish follow the stream† which is matched with the inner meaning in the third line. By not having a spirit of independency, this man chose to follow the path that the wind makes for him. But, what makes this man would did such a not-manly act? It should have a relation with a word in previous line, â€Å"dead†. The poet used the word â€Å"dead† to emphasize the next line’s meaning or this line’s, it is an anguish that made the man paralyzed, not able doing something by himself. â€Å"I sat now, for the wind was still.†At least, in the fourth line, this man stopped because the same thing also happened to the wind, it become stagnate just like in the first line’s point. The man do nothing but sit, seems waiting for ano ther wind to guide him again. If we stop too in this line, we can see the voidness in the man’s mind, he would be daydreaming or blank-staring his surrounding. This emptiness of his mind has lead to something that might be crucial and it is a lack of faith. If a faithful person even without resolve in his heart, experiencing the same condition, he might pray to his God instead of  daydreaming and asking for His guidance to overcome this stranded plight. Overall, the first stanza was merely an intro for the next stanzas, obviously.By completely talking about the setting of place in first stanza that were a hill with trees and gust of relaxing wind, it is included as somewhat parts of aestheticism. The first reason, of course, it was not social-political themed stanza, the next reason is everything can be shifted with aesthetic element and â€Å"in aesthetic forms, cruelty becomes imagination: Something is excised from the living, from the body language, from tones, from vis ual experience.† (Adorno 68).Everything in each stanza in this poem have relation with Adorno’s opinion about aesthetic forms, for instance, in the first stanza it is about a man that grieving and let the winds dictates him, however it is just an imagination that comes from cruelty. It will be far more cruel if there were man that actually looks like in this poem. And the another aspect in Adorno’s opinion will be discussed later on. â€Å"Between my knees my forehead was –My lips, drawn in, said not Alas! My hair was over in the grass,  My naked ears heard the day pass.† (5th – 8th line)The second stanza have a repetition of words â€Å"my†, the possesion form of ‘me’ and ‘I’. Besides of granting this poem with aestheticism by doing those repetition, there is also another meaning behind it. The poet intends to fill the second stanza with â€Å"ego† because â€Å"my† in this case representing a n ego, a personality. Though, the second stanza mostly illustrate the man’s body language, how he faced the void that he experienced. It cover up the fourth line’s hypothesis, that the man is not doing nothing at all, he make a motion to uncover his agony by doing this and that. â€Å"Between my knees my forehead was –â€Å" this line depicts his current position, he bent his body forward and place his head on his knees till his forehead touched it.That gesture shows him in an awful state of mind and insecure feelings, he might be grieving for his mistakes in the past or others problem that he has in his life. Moreover, this gesture was commonly known to express the deep suffering of mind and usually followed by tears that overflowing from the eyes, however, he did not cry at all. In matter of fact, he is a man and it is weird for even a man to cry for whatever the burden that he bear because  in those time, the patriarchal era, it is a time where the man al ways described as tough being and crying is for a women. So, even he has a big problem, he would not cry no matter what the problem is.â€Å"My lips, drawn in, said not Alas!† in sixth line, it can be judged how big his misery is. Even a word can not describe it, his lips drawn in means he does not even have a force to speak any words, yet, he want to yell â€Å"Alas!† for blowing off the steam but that word were not even match with his pain. Looks like his anger would multiplied for not being able to cried it outloud, still we can see him as a man with full of patience for being able to surpress his anger over his misery. â€Å"My hair was over in the grass,† in the seventh line is representation of anti-climax if we assume that the sixth line was a climax. In this line, it can be implied that he finally lie his body over the grass till the poet depicts it with his hair was over on the grass. It can be also stated that this man was already in stage of acceptanc e for lying his body over the grass, it seems he already accept the truth or the cruelty in his life.â€Å"My naked ears heard the day pass† by lying around after sitting with full of misery in the previous line, the eighth line define that the day has passed casually. In this line too, the poet combined two things that will not relate to each other yet he succeed to make it become one, Dante clarified that ears can heard the sound of the day pass by. It is weird to even imagining how the day pass’s sound, though. Nevertheless, Dante prevailed to make impression to the reader that it might have a peaceful or calm sound because it is the first time in this poem he describe the audible situation. Dante did not put any weird sound before, and yet the man in this poem heard something, so, it should be the sound of the tranquility. â€Å"My eyes, wide open, had the run  Of some ten weeds to fix upon;† (9th – 10th line)Unlike the previous lines that analyzed one by one, the ninth and tenth line have to be evaluated as one wholeness because it seems to connected yet separated as different line, this poem were written in iambic tetrameter anyway, and it would ruin the artistic part of the poem if those line were in one line. Thus, the man eyes widely open and he saw ten weeds near him, there is no special metaphor linked with these lines. Even so, this is also the first time in this poem for the man to pay attention to his surrounding  with his own very eyes.The previous panorama or landscape that described by the poet in preceding line were merely the poet’s imagery, not the man’s visual imagery. It is as well as the Adorno’s opinion previously, aetheticism can be reached by showing a visual experience, now the man had his eyes widely open and saw ten various weeds, which is nice. It also means that the field were full with green-coloured scenery due to all those weeds, green is categorized as bright colour which i s can also means a happiness, merry, just like spring’s scape. Although, he finally notice his surrounding, in no matter of time, he quickly noticed that there were ten kind of weed based in his vision. Is he a botanist? Or nature lovers? For immediately knowing there were ten different plant may be his brief assumption, but that is not the point in here, right? The truly case were located in next line and these lines were just an intro to lead this points in there. â€Å"Among those few out of the sun,  The woodspurge flowered, three cups in one.† (11st – 12nd line)The eleventh line implied the situation is happened in daytime for sun lightened those plants on the field. If we paid more attention, the third stanza were less with grieving content, everything gradually become more serene. No more sadness, no more wistful part in this stanza because the man just back to his senses, previously, he just a hollow-vessel with nothing to struggle for. Finally, he not iced his surrounding and even the smallest detail like the ten weeds, although he only noticed the woodspurge for the most, a plant with â€Å"All parts are highly toxic by ingestion; sap may irritate skin and eyes.† (â€Å"Plant Selector†).Euphorbia amygdaloides var. Robbiae is the another name for woodspurge, and it is unique for having three cups in one. Usually, â€Å"The mature flowers take a Single form, with an approximate petal count of 2† (â€Å"Plant Database†). So, it is rare occasion for found a three-petal woodspurge, In addition, a clover plants mostly have three petals and myths said that clover with four-leaves will bring a luckiness to the person who found it. Thus, what is the meaning behind from found a three-petals woodspurge? Will they bring fortune to whoever found it? Well, I rest my case for this aside and some professional said â€Å"the flower reminds us of the central mystery of Christianity: the Holy Trinity of the Father, Son , and Holy Ghost; the Trinity that breaks the rule of  fate.† (Nield). And how it can related to aestheticism?As a commoner, I put simply the metaphor of woodspurge is a faith in God. It all makes sense, at the first, he wander aimlessly seeking for nothing as the wind guides him until he stopped in peculiar area where he found a three-petals woodspurge that makes him in ease. Pre-Raphaelite Brotherhood, however, have a goal to make literary works become more aesthetic, more religious and have more connection with nature to confront Victorian’s literary works that full with socio-political, overly-scientific literary works which made the people’s faith fade away deliberately. â€Å"From perfect grief there need not beWisdom or even memory;† (13rd – 14th line) Again, these lines have to consider as one unity, and it have a deepful meaning in this part. The poet chose the word â€Å"perfect† to make the readers feel the absolute depression th at the man had, it is not for asking a pitiness to the man, it is about sending a ‘message’. After that man saw a woodspurge, his mind became soften then he learnt something â€Å"you will got nothing from grief, not even wisdom or even memory.†Which means there is no value for being blue over something, and its said that not even a sad memory will retain in mind, something that started with tragedy or bad things will certainly ended with tragedy too. It is true, though, and every one would not keep something bitter in their head for a long time. Somebody might choose to erase or pretend for bad incident that have occured instead of mourning it endlessly because in the end those memories will washed away for sure. â€Å"One thing then learnt remains to me –The woodspurge has a cup of three.† (15th – 16th line) In this last two lines, the poet expressed the important thing as a friendly reminder for him. In the end, he finally have one thing t o learn that woodspurge has a cup of tree which also have another meaning, if he become stuck in grief again, he should remember that there are God and his kindness that always guide him in to right path and it symbolized with three-petals woodspurge. Therefore, the last stanza is endearment of his sorrow because he certainly re-ignited his faith with nature’s help indirectly.ConclusionDante Gabriel Rossetti, one of the founder of Pre-Raphaelite Brotherhood, vowed to make a movement for opposing the Victorian’s mediocre literature work theme such a socio-political, science and industries that overwhelming in those times. Dante and his confidant, thus imbued Pre-Raphaelite Brotherhood’s era with Aetheticism, that more linked with nature, faith and religion in sense of beauty nuance. This poem, nevertheless, were reflectioned to the people at those times, when the religion and faith were not as strong as before.Dante used wind as representation of nature and as a device to mediate people until their faith revived again, just like in this poem. Thanks to the wind, that grieving man led to a woodspurge that reminds him to his God. And it is all the Dante wanted, he wished that every people would not forget and surrender in their faith. If they did, just remember how beautiful the world it is and eventually they will keep in their mind that everything were a God’s creation.

Imposing consumption tax on Saudi consumers and its contribution in promoting economic growth Essay

Introduction Saudi economy mostly relies on oil industry and its government has much control over natural resources and main economic activities in the land.   Ultimately, the economy of Saudi is centrally planned and therefore has free market economy. As it can be affirmed, oil industry contributes to approximately 45% of the total budget revenue hence making it imperative to the growth of the country. Till now, Saudi Arabia does not think that there is any need for consumption tax however, the country may face many problems in the future what may affect the economy if the oil dry out.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   A recent analysis from Citigroup has raised the alarming possibility that Saudi Arabia might become a net oil importer by 2030[Could Saudi Arabia’s Oil Exports Dry Up?, 2012]. However, in order to Find a Solutions to contribute in raising Saudi Arabia economy for long run, and Focusing in another source rather than oil.   In order to maintain economic stability, we want to study the possibility of imposing consumption tax beside zakat on Saudi consumers and how it will contribute in promoting economic growth. Basic concept According to the dictionary, Zakat iscalled (Islamic tax) or (religious tax), it is an annual tax on Muslims comprising percentages of personal income of every kind to aid the poor in the Muslim community.[zakat] Research aim The research aim is to determine the possibility of imposing consumption tax on Saudi consumers beside zakat and how it will contribute in promoting economic growth Sub problems; 1.  Ã‚  Ã‚  Ã‚  Ã‚   How consumption tax contributes in promoting economic growth. A)  Ã‚  Ã‚  Ã‚   Why consumption tax. B)  Ã‚  Ã‚  Ã‚   Mechanism of economic growth. C)  Ã‚  Ã‚  Ã‚   Identify mechanism of promoting economic growth by consumption tax. 2.  Ã‚  Ã‚   The possibility of imposing consumption tax on Saudi consumer. A)  Ã‚  Ã‚   Analyze tax system for promoting economic growth. B)  Ã‚  Ã‚   Analyze Zakat system for promoting economic growth. C)  Ã‚  Ã‚   Compare (a) and (b) to determine the possibility of imposing consumption tax (the importance or how valuable is the consumption tax). 3.  Ã‚  Ã‚  Ã‚   Determine the possibility of using consumption tax for promoting economic growth of Saudi Arabia. Research Objectives As noted in the above information, the main aim or purpose of conducting this research is to investigate the possibility of imposing consumption tax on Saudi consumers beside zakat and how it will contribute in promoting economic growth. The following information provides the objectives and research questions for the study. Ø  Ã‚  Ã‚     Ã‚  To determine the importance of tax particularly in promoting the growth of economy Ø  Ã‚  Ã‚      To analyze all best and possible means of imposing consumption tax on Saudi consumer Ø  Ã‚  Ã‚     To determine the possibility of using consumption tax for promoting economic growth of Saudi Arabia Hypothesis Various studies conducted on consumption tax have revealed that consumption tax has a major effect on the country’s economic activities which can greatly affect economic growth, so in this paper we investigate how consumption tax contributes in promoting economic growth. We hypothesized that imposing consumption tax contributes in promoting the growth of Saudi Arabia’s economy. We also hypothesized that the difference between tax system and zakat system will contribute in determine the importance of the consumption tax. Literature review Essentially, previous research indicates a close relationship between introduction of consumption tax and economic growth in a country. Many economists argue that imposing a consumption tax implies increase in government revenue and thus increase in the country GDP which is essential in reflecting the country’s economic growth. There are limited studies tried to identify the relationship between tax structures and economic growth, Here is some of the related literature:   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Arnold, J. (2008) has focused in studying and analyzing  Ã‚   the relationship between tax structures and economic growth by enteringindicators of the tax structure into a set of panel growth regressions for 21 OECD countries; he found the following results: 1.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Income taxes are associated with significantly lower economic growth and lower levels of GDP per capita than consumption tax and property tax. 2.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Respectively, property taxes, and particularly recurrent taxes on immovable property, then consumption taxassociated with the highest levels of GDP per capita. Therefore, these taxes are the most growth friendly taxes in economic growth. 3.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Corporate income taxes have morenegative effects on GDPthan personal income tax. In general, the relationship between the income taxes and growth is negative relation. 4.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The progressivity of income taxes and growth are negatively related. Also, Widmalm (2001), Padovano and Galli (2002) studied the relationship between progressivity of income taxes and economic growth in 25 countries, they reached the same result, the progressivity of income taxes and economic growth are negatively related. Various studies conducted on consumption tax have revealed that consumption tax has a major effect on the country’s economic activities which can greatly affect economic growth. Brys (2010) in his book ‘OECD Tax Policy Studies Tax Policy Reform and Economic Growth’ outlines the various effects consumer tax can have on economic activities of a country.In the book, he states that consumer tax will affect employment and working hours, affect international trade and regulate the activities of the underground economy. Brys continues to state that differentiated consumer tax will encourage people to work, lead to a yield in environmental benefits and reduce inequalities in income. When all these factors are brought together, economic activities of a country are likely to be affected in various ways. Methodology Research approach A good research is the one that provides answers to the research questions, validity, objectivity, accuracy, and economy. A research design is the plan and structure of investigation to obtain answers to research questions. The study adopted a qualitative survey structure. Qualitative research is also adopted since it investigates the social constructivist paradigm and relies on the socially constructed reality nature.   It aims to fundamentally record, analyze as well as determine the significance and meaning of imposing consumption tax on Saudi consumers and its contribution in promoting economic growth. The approach is not initially based on any data to be compared but on the perceptions of those who have experience and knowledge based on consumption tax and its potential in enhancing economic growth of a country. The qualitative research approach here supports positivism whereby although there is no data to be compared as part of quantitative research, the fundamental construct of the research is based on a reality that cannot be changed. The type of this study requires to use qualitative research, in this study we will gathering data from the past studies related to our theme (about the effect of tax on economic growth and then, we will analyses this data And weight all the Pros and Cons, advantage and disadvantage of all type of taxes and decide which type is best for the growth of the economy. We will analyze both of tax system and zakat system and their relation with economic growth, then comparing both system and find the similarities and difference between them. Then study those differences and find solutions that may contribute in the economic growth of Saudi Arabia. Data analysis and discussion   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The raw materials were collected in a systematically organized manner that facilitates the analysis. To permit qualitative analysis, the data received was edited to ensure completeness, consistency, and uniformity before being analyzed to make it meaningful information regarding the study theme which is implications of imposing consumption tax in Saudi Arabia. Collectively the data analyzed enables the study to establish the relationship of consumption tax and economic growth. References Brys, B., & Organization for Economic Co-operation and Development.(2010). Tax policy   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   reform and economic growth. Paris: OECD. Could Saudi Arabia’s Oil Exports Dry Up? (2012Ã¥ ¹ ´octoberæÅ"ˆ3æâ€" ¥). Ã¥ â€šÃ§â€¦ §Ã¥â€¦Ë†: nvesting daily:http://www.investingdaily.com/15734/could-saudi-arabias-oil-exports-dry-up almohainykhaledmohammed. (2003). The role of the tax in the process of economic and social development. Damascus University Journal , Volume 19 – Issue II. zakat. (æâ€" ¥Ã¤ »ËœÃ¤ ¸ Ã¦ËœÅ½). Ã¥ â€šÃ§â€¦ §Ã¥â€¦Ë†: dictionary: http://dictionary.reference.com/browse/zakat Arnold, J. (2008), â€Å"Do Tax Structures Affect Aggregate Economic Growth?: Empirical   Ã‚   Evidence from a Panel of OECD Countries†, OECD Economics Department   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Working Papers, No. 643, OECD Publishing. Bleaney, M.F.; N. Gemmell and R. Kneller (2001), â€Å"Testing the Endogenous Growth   Ã‚  Ã‚  Ã‚  Ã‚   Model: Public Expenditure, Taxation and Growth Over the Long-Run†, Canadian   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Journal of Economics, Vol. 34(1), pp. 36-57. Schwellnus, C. and J. Arnold (2008), â€Å"Do Corporate Taxes Reduce Productivity and Investment at the Firm Level? Cross-country Evidence from the Amadeus Dataset†, OECD Economics Department Working Papers, forthcoming.

What Are Subdivided Flat Essay - 1572 Words

1.1 Background of Study What is subdivided flat? Subdivided flats are two or above individual rooms sliced out of a flat of a building. Accounting to Society for Community Organisation(SoCO), more than 40,000 Hong Kong children are living in subdivided flats where can’t fulfil basic living standards set out in a United Nations convention (2016). SoCO (2014) found out that lack of space for children to study and play are common problem in subdivided flats. The interactive play experience with families and peers is also highly reduced due to living environment of subdivided flat. Almost 80% of children have never invited their friend to their home, the main reasons are â€Å"lack of space for playing† (80.9%) and â€Å"nothing to play† (64.9%). The situation strips their chance to make friends which affects their personality growth. More than 60 % of child have never played with parents and brothers/sisters at home due to the limited activity space and lack of game/toy. 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