MIS - Global Projects Research Paper Example | Topics and Well Written Essays - 750 words

MIS - Global Projects - Research Paper Example Oracle Corporation is ranked at position three in terms of earnings in the global software industry. The most common software products from the company include its supply chain management, customer relationship management, and enterprise resource planning software (Monk and Wagner, 2012). SAPAG is a German multinational company that is considered among the largest software companies in the World. The company mainly specialises in creating software solutions that help companies run their core functions in a much better and efficient manner. The company is revered for its enterprise resource planning software, the SAP business warehouse, the SAP business object software, and the SAP HANA (Monk and Wagner, 2012). Considering that Dual-Tech Inc specialises in the distribution and selling of electrical appliances it means that it is more likely to handle contracts and projects that are based in overseas markets and therefore, the business in general and the management team will need certain business software applications in order to smoothly run their global projects. One of the business considerations that Dual Tech’s CIO would take into consideration while deciding between Oracle and SAP solutions for global projects is the cost associated with each solution. Since businesses are inclined towards, reducing cost whilst maximizing profits it is widely expected that the management would advocate for cheaper solutions. In the survey conducted by Krigsman (2012) it was noted that SAP solutions are usually expensive and hence the reason why despite being frequently short listed in most tenders compared to Oracle and Microsoft dynamics they are rarely chosen by the buyers. Therefore, SAP will be costly to Dual-Tech Inc but the CIO will make his selection considering other factors as well. The management will consider the usability of the two software solutions or the

Accounting writing assignment Essay Example | Topics and Well Written Essays - 500 words

Accounting writing assignment - Essay Example Another merger completed in 1985 saw the name change to Chevron. From 2002 to 2007 Chevron invested an estimated $72 billion to bring improved energy supplies to market. The company adopted name Chevron Corporation in 2005, and later acquired Unocal Corp. (Chevron) enhancing its position as the World’s leader in energy provision. Chevron has over the years demonstrated expertise in deep-water oil exploration. Sales and additional operating revenues decreased from 2012’s $230590 million to $220156 million. Net income profits declined by 18.2% in 2013 from 2012’s $ 26,179 million to $21,423 million. Their dividends per share were $3.90 million, and each share attracted a $1 return. Total assets rose to $253753 million in 2013 from 2012’s $232982 million, followed by a subsequent rise in total liabilities from $95150 million to $103326 million. Chevron’s total stockholders’ equity rose in 2013 to $ 149113 from 2012’s $ 136524 million (Chevron). The Board of Directors of Chevron comprises of an Audit Committee who are not under employment with the firm. This committee has regular meeting with the Management and auditors, both internal and external auditors to ensure conformity with the internal controls and the International Financial Reporting matters. Chevron’s operations have been affected by the altering economic, regulatory and Political environments in the various geographical areas of operations. Some governments have from time to time tried to renegotiate terms of contracts which has led to significant additional costs to the company. Management keenly follows developments in the money markets, the global economic trends and their impact on the enterprise’s fluctuations in oil and Natural gases. In the last quarter of 2011, a development well in the Frade field off the coast of Brazil caused an unforeseen pressure spike resulting in a migration

The Person That I Love the Most Essay Example for Free

The Person That I Love the Most Essay Man is a social animal, we love to live in society and found comfort in our family. It gives us ease and mental satisfaction to live among people to whom we know. It is our nature like or dislike people among whom we live. There are lots of people to whom we love or hate. I categorized three types of people to whom normally a person can love. The first type of persons are whom we love because of our natural relationship with them for instance our mother, father, daughter, son, wife, brother etc. The second type of peoples is those to whom we like because of their qualities for example we may like our mentor because the way he teaches us, we like the leader because the way he leads the nation in difficult situations, we like the scientist because the way his invention contribution to the society and so on. The third type of person to whom we love is the opposite gender. Yes this is the most widespread type of love that we can see nowadays present in most of the people. There is no age limit for having this sort of love we can see it from youngster to older ones. I will discuss here the person to I love most or I like most. This is the person whose work or invention has reshaped our lives. This is the man for whom American President Mr. Obama appraised as â€Å"Bold enough to think differently, brave enough to believe that he could change the world and talented enough to do that†. Yes, you could easily recognize him that was deceased Steve Jobs – The former Chief Executive Officer of the Apple Corporation. His nature, vision and enthusiasm have reshaped our life. Most of us are using computers, touch screen smart phones, and touch screen tablets. We are very familiar with the computer by the advent of Graphical User Interface, easily recognize computer file in the shape of icons, maven at using computer mouse; these all things have his fingerprints. He was the man behind this entire thing, this was his vision that now peoples are frenzy in using touchscreen smartphones, listening music using an Ipod. His invention of Iphone and iPod now set the standard of many things in the industry. In conclusion, I would like to state that without him we could not see the exciting things which we are now addicted to. Truly he is the man who not only made his Company the world largest in terms of market capitalization but also gave the customer more than their expectations.

Bio-diesel: Alternative Fuel Source Essay -- Petroleum Environment Eco

Bio-diesel: Alternative Fuel Source Introduction Currently today more than 99% of all fuel consumed is petroleum (3). In the year 2025 the world’s reserves of petroleum will be a dry source (7). Other than the shortage of petroleum, the burning of petroleum also causes many problems such as global warming. In this case, engineers and scientists need to come up with an alternative energy source for gasoline not only because of the shortage, but because of the environmental problems gasoline and other fossil fuels cause for the environment. Out of all forms of alternative fuels for vehicles bio-diesel seems to be the next alternative source of fuel, but more research needs to prove this assumption. In this report bio-diesel will be studied in more depth. The history of other sources of fuel will be looked at, along with the history of research being accomplished. The research stating the benefits of bio-diesel will be compared to the research on the negatives of this new fuel source. After the report one will be able to conclude if they believe that bio-diesel is the answer to the shortage of gasoline and the next choice as an alternative fuel. History of Fuels Engineers have been doing research for years on alternative fuels for gasoline. Research has included hydrogen cells, gas-to-liquid diesel fuel, and ethanol among many other different fuels. One of the most recent discoveries for an alternative fuel is bio-diesel. At this current time, Bio-diesel is considered one of the most promising new technologies for an alternative fuel source to gasoline. Bio-diesel may be defined as a group of esterified vegetable oils produced from different oil-containing crops. These crops include but at not limi... ...I 1999, no 76 pp1-88. (3) Understanding Biodiesel Fuel Quality and Performances. Weiksner JM Sr P.E, Crump Stephen L. PhD, and White Thomas L. PhD. 2003 December 12 #5 Journal Article Savannah River Site pp 1-6. (4) National Renewable Energy Laboratory. Evaluation of Biodiesel Fuel in an EMD GP38-2 Locomotive. Fritz S.G. Report# DOE/GO-102004-1872. 2004 May. pp 1-21. (5) National Renewable Energy Laboratory. Impacts of Biodiesel Fuels on Air Quality and Human Health: Task 2 Report; The Impact of Biodiesel Fuels on Ozone Concentrations. Morris R.E., Mansell G.E., Jia Y. and Wilson G. Report # DOE NREL/SR-540-33795. 2003 May. pp 1-150. (6) Hofman Vern, Extension Agriculture Engineer. North Dakota University. Biodiesel Fuel. 2003 Feburary. pp 1-4. (7) Rifkin, Jeremy. The Hydrogen Economy. New York: Jeremy Tarcher/Penguin. 2002.

Induction Theory Essay

Karl popper made his contribution on the induction theory in Vienna during the period of Logical Positivism despite the fact that he was not a Positivist. Before Popper’s contribution, Hume, another philosopher had already critised the theory of induction saying that the theory could not provide rational support for their conclusion (Karl, Raimund P. , 2002). His argument was based on assumption that induction assumes unobserved events which follow the pattern of observed events and ultimately it could not be logically justified whether it was deductible or in-deductible(Nelson, 1992). Hume justified that the theory of induction does not hold since it’s not logically true (Marc, 2000). Later Karl Popper supported Hume’s opinion on induction theory by fact that it could not give amicable solution but disagreed with Hume’s suggestion that science yield no knowledge of the nature of the world. On Popper’s side, he strongly felt that induction theory can be replaced by the principle of conjecture and refutation. On the experimentation of conjecture, it’s not possible to give positive inductive reasons for thinking that they are true while we can give justification of thinking that they are false. To experiment this scenario we take Poppers deductive method of conjecture and refutation principle together with induction principle to test scientific hypothesis. We can determine the expected results if the hypothesis is true, we can say the hypothesis is inductively confirmed if our observation agrees with our expectation while using induction theory. Such criteria of reasoning is not deductively correct, hence as an inductive argument, it faces the problem of induction. It therefore provides a convectional justification that ‘H’ is true. And, given this and the truth of the first premise, ‘0’ would follow. But ‘0’contradicts ‘not 0’which is asserted by second premise. From the hypothesis we can conclude that its not possible for premises to be true and conclusion be false. Popper’s method of conjecture and refutation provide us with the global knowledge to avoid the problem of induction. Karl Popper also asserted that there is no rational method that can be used to evaluate scientist’s justification about the hypothesis, further, there is no sufficient and appropriate evidence that can inductively confirm the hypothesis, that it can give us a positive reason to think that our hypothesis are true. Popper Karl contributed too in improving the meaning theory by providing an alternative solution to positivist verification which sorted out the demarcation issues (Nelson, 1992). Before the invention of Positivist verification there was a major problem in differeciating legitimate scientific inquiry from aspects such as religion and pseudo science. His methodology of conjecture and refutation still provides another basis for distinguishing ‘science’ from ‘non science’ since it enables us to take a hypothesis to be scientifically investigated if and only it’s falsifiable (Karl, Raimund P. 2002). For a hypothesis to be false we only highlight any likelihood observable conditions under which one can judge to ascertain to be false. To justify that it is false that all crows are black, we must state some realistic observable situations. By so doing we can categorically be certain that it is surely false, in case we observed a white crow. So, the assertion that all crows are black can be scientifically investigated. Also for a claim that opium makes sleep since it has normative virtue. This is a pseudo-scientific explanation since it’s not possible to state any observation for us to ascertain it is false. It will not be realistic and permissible to assume for instance, that the total population in Texas is 50 people (in millions) while in actual sense its 45 million people. The presumption would only be having some degree of truth which could be realistically correct to around 0. 9 percentage of the total population which can be inherited with questionable justice. If for instance to say that Jack is ‘borderline tall’ so that ‘Jack is tall’ is assigned the value 0. , then there could be a necessarily falsehood that ‘Jack is tall but not very tall’ to get a value of 0. 5. The most definite disadvantage for relying on such logistics is that they do not dispense with any sharp transition for they only accommodate very gradual heap to non heap at the very expense of exposing a sharp transition from heap to borderline, and from bounder line to non-heap (Catherine, 1997). This can be illustrated by the problem of higher-order vagueness as below   Its shows from the above scenario that we avoid assigning more precise numerical figures as degree of truth since such assignment will not have any substance either (Karl, Raimund P. , 2002). This is because true statements ought to be somehow differeciated from true statements or to treat them as neither true nor false, and categorize them as those which could become true or false (Marc, 2000). Goodman was for the idea that no answers which neither nor justifies limitations of induction. This is because we can satisfactorily distinguish between deductive and in-deductive. This is what made Goodman make tremendous efforts towards formulating canons off inductive interference which had to emphasize on ‘Emerald1 is green and Emerald 2 is green’. Goodman’s new riddle approach on induction indicates that this is a false step since not all instances are confirmed by their instances. This pioneered the invention of the predicate ‘grue’which is defined as; an object is grue only and if only the object is (1) green, and has been observed before now,or (2),blue, and has been observed before. Such definition gives a clear definition by the condition on when the word ‘grue ‘applies to an object, nevertheless it creates a problem when used inductive argument. If experiment 2000 green emeralds it provides sufficient evidence of believing that both the next emerald to be experimented will definite be green after observation, and that it will be blue, but this is absurd, to this assumption will worsen the scenario because inductive theory has weakness with the word grue and possibly with inductive arguments involving green Grue, if in the first instance presumed to be illegitimate for it makes reference to a particular time and it’s defined by the outcome color of an observation if observed at the moment. This makes it appear to be artificial while in actual sense it natural which makes its use an illegitimate inductive arguments. By defining grue in of two more other predicates that is green and blue which are not very simple and elaborative makes it unusual. Goodman has also highlighted that differences between properties of being grue and green which is dependent for them to be restricted to properties. In analyzing evaluation techniques in Goodman‘s New Riddle of induction he ascertained that the bold techniques are most likely to attain the goal of reliably arriving at the most right answer, while the most skeptical technique does not at all mean that in skeptic there is violation of canon of rationality or may be false to recognize nature uniformity. The theoretic learning analysis wholly concedes to be skeptic regardless the many ravens observed in the past, the next one could be white(Catherine, 1997). The rationality of this is that if all observed ravens are generally black, the skeptic doesn’t answer the question that all ravens will be black. In generalization of emeralds where green and blue colors were used Nelson puzzled about new riddle induction by performing the following experiment: supposing that all the examined emeralds before a particular time y are green, our evidence statements indicates that emerald n is green and so on†¦Ã¢â‚¬ ¦examining another spices which is less familiar than green it is the predicate ‘blue’ and this could mean that it applies to all items which were examined before y just incase they were green but to other things just incase they are blue. In such scenario the challenge is to we should conjecture that all emeralds are green rather than that all emeralds are grue when we obtain a sample of green emeralds examined before. We can still analyze induction theory in making projections, for instance a natural projection rule which conjectures that all emeralds are green as long as only green emeralds are found, and grue, some rule which keeps projecting the next grue predicate consistency with available evidence (Peter, 2003). The theory of meaning from philosophers’ analysis has been difficult to come up with a very clear definition of meaning theory this has been generally because meaning can only be specified by its wording and syntax. This is because only words or marks put on a paper can generate a meaning. Sentence is a composition of prepositions which indicate satisfactory conditions to make each sentence correct. Aspects such as beliefs, hopes and intention which explain speaker’s nervous system are found in the context of language.

Kim’s TimeLine Essay

There was a time when textbooks, a chalkboard, a set of encyclopedias, and a map of the world were considered teaching aids; boy how times have changed.   Today all we have to do is flip on a computer, and the world comes to us in a matter of seconds.   In today’s modern world teachers have access to an almost infinite amount of information.   There are so many websites out there that cater strictly to educators, and their students. For example, one website that seems to be getting a lot of attention from teachers and their students, is one that a teacher created herself; her name is Kim.   I will explore her website, along with other teaching aid websites, and see how they rate against hers.   First of all let’s start with a basic outline of my research paper, and in what manner we are going to address the following questions: Explain the method of Kim’s TimeLine? Give a critique of Kim’s ideas, and how they relate to the TimeLine? List the advantages of Kim’s Time Line, from a student’s point of view? List the disadvantages of Kim’s TimeLine, from a student’s point of view. Introduce other teaching aid websites, along with journal articles, and how they measure up to Kim’s TimeLine? Give an objective conclusion of the researched material?   The purpose of this research paper is to focus on these six questions. Explain the method of Kim’s TimeLine?   Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  When you click onto Kim’s TimeLine, a picture of a chalkboard, and an idiom: Kim’s Korner for Teacher Talk, along with a yellow sun, pops onto your computer screen.   Then in large black letters the following slogan grabs your attention: IDEAS FOR TEACHING THE WRITING PROCESS.   Kim then introduces five steps of her writing process: Prewriting, Writing, Revising, Editing, Proofreading, and Publishing.   The webpage also includes General Ideas For Teaching the Writing Process, such as: Writing Process Timeline, The Writing Process, Implementing the Writing Process, Sample Listing of Specific Writing Strategies (for each step), Ten Ways to Emphasize the Writing Process.   (Writing Process 2006) Give a Critique of Kim’s Ideas and How They Relate to the TimeLine?   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   To be honest with you, I really enjoyed browsing over Kim’s TimeLine website, and     found it to be non-threatening.   The information was laid out in an extremely simplistic manner, and I could actually picture students, along with their instructors, using and benefiting from the information that this teaching aid provides. List the Advantages of Kim’s TimeLine, From a Students Point of View?   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   As I already mentioned, the TimeLine is incredibly easy to operate.   If you view the TimeLine through a student’s eyes, you will appreciate how the website makes you feel totally comfortable, and non-intimidated, in regards to the information that the TimeLine is trying to convey to you as a student. Before I began this research paper, I have to admit that I was filled with a certain amount of anxiety, and stress; I wondered if I’d do a satisfactory job.   But then to my delight, I noticed that Kim’s TimeLine had a section that dealt with apprehension, and worry.   Her coping strategies with writing anxiety goes as follows: Focus your energy by rehearsing the task in your head. Consciously stop the non-productive comments running through your head by replacing them with productive ones. If you have some â€Å"rituals† for writing success, use them. (Kim’s TimeLine 2006)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   So stepping into a student’s shoes, I put her coping tactics to the test; and guess what?   They actually worked.   I honestly thought that the TimeLine, like the majority of website based teachers’ aids was going to be extremely hard to understand.   Either that, or it was going to be some archaic method of teaching.   Without sounding like some cheesy infomercial, I’m glad that I was wrong, and would strongly recommend the TimeLine to both students, and their teachers. List the Disadvantages of Kim’s TimeLine, From a Students Point of View?   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Once again I put my feet into a student’s shoes, and tried especially hard to find the tiniest amount of a blemish with Kim’s web-sight, but was unsuccessful in my efforts.   The only flaw I could find, didn’t involve the content of her TimeLine, but instead, how long her website address is: address: http://www.kimskorner4teachertalk.com/writing/general/timeline.html Introduce Other Teaching Aid Websites, Along With Journal Articles, And How They Measure Up To Kim’s TimeLine?   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   As this assignment mentions in its instructions, the internet provides you with so much information that you must develop a discriminating taste when it comes to the value of a website.   I totally concur with this assertion, and acknowledge that there is an endless amount of   facts and figures over the internet.   But how does this relate to Kim’s TimeLine?   Well in accordance to the assignment’s instructions I have chosen five teachers’ aids websites, and will evaluate them.   I will also distinguish how these websites measure up to Kim’s TimeLine.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The first website is called â€Å"Free TeachingAids.com.†Ã‚   I found this website to be formless and vague, kind of like a big budget movie with a plot that goes nowhere.   (freeteachingaids.com 2006)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The second website was simply titled, â€Å"Teachers’ Aids†.   This website was similar to Kim’s TimeLine.   It was non-intimidating, and from a student’s perspective, they will appreciate the fact that it is straightforward, and to the point.   But nevertheless, as far as a writing tool goes, I would still have to put Kim’s TimeLine above this one.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The third website I chose was Java Applets for Teaching of AstroPhysics.   Demonstrating the contrast between Kim’s TimeLine, and this website, would be like comparing apples and oranges; they’re entirely diverse.   Astrophysics is not my cup of tea, however, if it was, I would urge those who plan a career in this field to definitely click onto this website.   It has an easy to follow table of contents, along with an uncomplicated simple to follow outline.   Key words are highlighted, and accompanied with a unproblematic definition.   (JK’s Applets for Teaching Astrophysics 2006)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The fourth website is called â€Å"Classic Teaching Resources†, and deals with mnemonics, and other little tricks of the trade to help you as a student, memorize course material.   It focuses on: grammar, music, dates and other numbers, and association and other subjects.   The site was started by David Parsons, he articulates: â€Å"As a former teacher of Latin, Greek and Classical Civilization for nearly 25 years I have accumulated much teaching material to share, and also know what I would have liked readily available.   This site is a small contribution to the teaching of classical subjects.†Ã‚   (Classic Latin Greek Teaching Aids 2006)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The fifth, and last website I will compare to Kim’s TimeLine is termed Parliament : Teachers’ centre.   Like the first website, â€Å"Free TeachingAids.com†, I found it to be unclear, and for lack of a better term, some what indistinct.   It offers an index of topics, so that you can select a subject that is to your liking; but that’s about it.   It was designed to educate would be British citizens in attaining their British citizenship credentials.   (Teaching Citizenship Resource Centre and British Citizenship Teaching Aids 2006)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Teaching aids aren’t only getting noticed on the internet, they’re also getting acknowledgment in the mass media, such as magazine articles.   In an influential article, written by Greifner, she reports: â€Å"To help teachers discuss the most current events.   Weekly Reader is also launching electronic Classroom News Breaks this fall.   The e-mailed lesson plans will offer age-appropriate information, reproducible pages, and the web links about significant world news within 24 hours of the event’s occurrence.†Ã‚   (Education week 2006)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Another article gives teachers’ an internet â€Å"Book Study† guide: Gary Paulsen: webenglishteacher.com/paulsen.html This rich resource has lesson plans and activities for all ages.   Plans include an integrated unit and a PowerPoint guide for creating a survival kit. Teacher Cyber guide – Hatchet sdco-k12.ca.us/score/hatch/hatchettg.htm This lesson plan contains language arts content standards, student activities and web resources for a study of the book. Hatchet, mce.k12tn.net/survival/hatchet/hatchet.htm A well-organized resource divided by book chapter.   Each chapter category has online (and printable) questions for your book study, activities that tie into the chapter themes, writing lessons and vocabulary activities.   (Teaching Prek-8 2006)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The web isn’t the only electronic medium that today’s teachers are using in the classroom.   Video games have made it into our scholarly institutions, as this article declares: Video games teach deductive reasoning, memory, strategies, and often, content area knowledge.   Teachers like Bill Mackenty, a computer specialist at the Edgartown School on Martha’s Vineyard, give praise to Playstation.   It states that with teacher involvement and guidance, video games can be a powerful classroom learning tool.   (Instructor 2006) Objective Conclusion of the Researched Material   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In this thesis I have presented you with both facts, and opinions.   In order for me to remain free of any bias, I must end this research paper by equally supporting, and expressing the disadvantages of Kim’s Timeline, and teaching aids like it.   To sum things up I concur that Kim’s TimeLine, and websites like hers are needed in today’s schools; however, like the instructions of this assignment states, â€Å"There is so much information over the internet, that you must develop a discriminating taste, when it comes to the value of a website.† References Greifner.   L.   (2006.   September 27)   .   Weekly Reader Gets New Look.   Education Week  Ã‚  Ã‚     Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  26 Mitchell.   K.   (2006.   September )   .   Getting to the Heart of a Story.   Teaching PreK-8   66-66. Instructor.   (2006).   Playing To Learn.   Instructor   116.   22-22 Classic Teaching Resources.   (October 25, 2006).   Classic Latin Greek Teaching Aids.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Retrieved October 25, 2006 from the World Wide Web: http://www.parsonsd.co.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   uk/teaching-aids.php Free TeachingAids.com.   (October 25, 2006).   Educators Progress Service, Inc.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Retrieved October 25, 2006 from the World Wide Web:http://www.freeteaching   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   aids. Com Java Applets for Teaching of AstroPhysics.   (October 25, 2006).   JK’s Applets for   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Teaching Astrophysics.   Retrieved October 25, 2006 from the World Wide Web:   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   http://astro.u-strasbg.fr~koppen/apindex.html Kim’s Korner for Teacher Talk.   (October 25, 2006).   Writing Process.   Retrieved   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   October 25, 2006 from the World Wide Web: http://owl.english.purdue.edu/   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   /handouts/gl_anxiety.html Parliament : Teachers’ centre.   (October 25, 2006).   Teaching Citizenship Resource   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Centre and British Citizenship Teaching Aids.   Retrieved October 25, 2006 from   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   the World Wide Web: http://www.explore.parliament.uk/parliament.aspx?id=17 Teacher’s Aids.   (October 25, 2006).   MFL 195: Teachers’ Aids.   Retrieved October 25,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   2006 from the World Wide Web: http://facweb.furman.edu/~pecoy/mf195/aides.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   html

The Invisible Hand of The Market

The Invisible Hand of The Market Invisible hand is the term first introduced by Adam Smith and it refers to the balancing force that creates mutually beneficial exchange for everyone. The invisible hand is a term attributed to the 18th-century economist Adam Smith and appears in his landmark 1776 book, The Wealth of Nations. The term developed from Smith’s study of another classical economist, Richard Cantillon, and was used metaphorically by Smith to describe the â€Å"natural forces† that drive free markets, a kind of product the human nature of people interacting in the market. The term only appears twice in Smith’s book (he had used it in an earlier work in 1759, The Theory of Moral Sentiments, but in a philosophical rather than economic context), but has grown to be cited, and often misinterpreted, as one of Smith’s most important concepts. What is the Invisible Hand? In a free, unregulated market, competition for scarce resources encourages market participants to act to maximize their self-interest. â€Å"Maximizing self-interest† is a typical economic textbook term that is often not clearly explained, probably because it sounds a little more dignified than â€Å"seeking to purchase resources at the lowest or most efficient costs, and seeking to sell goods, services, or assets for the highest obtainable profit.† Even though no one is acting for the benefit of anyone else, the self-interests balance each other, creating a mutually beneficial exchange for everyone. This â€Å"balancing force† is what Adam Smith metaphorically called the â€Å"invisible hand†. WHAT IS FIAT MONEY? In simple terms, if consumers and producers are both free to look out for the own interests, an equilibrium will be created. Consumers generate demand for goods, and producers respond by developing efficient production and distribution methods to meet the demand at the lowest possible cost; prices are regulated by competition, which is in turn created by the consumer demand. Society benefits as a whole, because as prices decrease due to competitive pressure and greater efficiency, volume increases; this obliges producers to pay more for labor to keep up with demand, which increases costs and prices, which are canceled out by the higher purchasing power of the now better-paid worker/consumers. Everyone gets what they want in increasing amounts, and no one has to worry about anything other than their own needs and desires. Misinterpretation and Controversy The idea of the â€Å"invisible hand† is popular with Objectivists and adherents of the Ayn Rand philosophy of â€Å"every man for himself†, but interestingly, the term in modern usage is applied to a section of Smith’s Wealth of Nations where it does not even appear. The idea that self-interested competition leads to larger social benefits appears early in the book, in Book I, Chapter 7, but the actual phrase â€Å"invisible hand† does not appear until Book IV, Chapter 4 in the following passage: â€Å"By preferring the support of domestic to that of foreign industry, he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention.† The idea that Smith expresses – that individual ambition has greater benefits – is a common theme throughout The Wealth of Nations, but the way Smith uses the metaphor of the â€Å"invisible hand† specifically refers to domestic versus foreign industry. Because the metaphor is consistent with Smith’s philosophical theme, it has been used to underpin the entire philosophy of neoclassical economics; George Stigler, a key leader of the Chicago School of Economics and close friend of Milton Friedman, once famously greeted a symposium on Smith’s work by saying, â€Å"I bring you greetings from Chicago, where Adam Smith is alive and well.† Much of the confusion about what Smith actually said and intended in his own work and the apparent source of the neoclassical application of the metaphor is the 1948 book Economics by Paul Samuelson, in which he quotes Smith’s â€Å"invisible hand† passage in a way that combines a bit of Smithâ€⠄¢s explanation of self-interest among market participants with the original quotation, thus linking the metaphor – perhaps inaccurately, perhaps not – to Smith’s entire economic philosophy. Despite Dr. Stigler’s amusing greeting, Adam Smith is not, in fact, alive and well to add further insight to the argument over what he really meant, so the safest interpretation is an analysis of what he actually wrote. The market participant prefers domestic industry to foreign industry, and we can infer reasons why this might be so; costs of production and transportation are lower, the goods produced are more suitable to the local market because of more available and complete information, and as a consequence of all that, prices for the goods that are produced are lower. Because the domestic industries are preferred for those reasons alone, the domestic society benefits through the need for labor to produce goods and raw materials – a positive, unintended consequence of the market participants’ pure self-interest. Thus social benefit is created as if guided by an â€Å"invisible hand†. Criticism of the â€Å"Invisible Hand† The strongest argument against the validity of the metaphor, and its consequential idea that markets should be allowed to regulate themselves, comes from the Nobel Prize-winning economist Joseph Stiglitz, who wrote in his book The Roaring Nineties that, â€Å"the reason that the invisible hand often seems invisible is that it is often not there.† Free markets have certain limitations, according to Stiglitz, one of the most important being their inability to manage â€Å"externalities†. Stiglitz holds that the idea of unintended benefits being allowed to happen without some sort of accounting is irrational; if a person’s actions create a benefit for someone else for which he is not compensated, or if a person benefits from another’s actions without cost to himself, that person will adjust his activities accordingly – either reduce his activity to prevent â€Å"giving something away for free,† or reduce his activity to avoid paying for more tha n he needs, since he is receiving some of it at no cost. MONEY MAKES THE WORLD GO AROUND Stiglitz argues that any time there is imperfect information and some degree of risk uncertainty in markets – which is always – these â€Å"externalities†, which we can understand as â€Å"forces other than the supposed invisible hand and conceptual equilibrium of an efficient market†, are always present and make the market less efficient because market participants â€Å"hold back† a little. That is why, he says, that some of the most important developments in modern civilization, such as the telegraph, genetic advances in food production, and the internet, did not develop in markets but were supported by governments. In other words, some degree, hopefully, a balanced degree, of government intervention in markets is necessary, first to â€Å"take up the slack† in progress towards efficiency that is not happening in markets, and second to reduce risk uncertainty in ways such as enforcing contracts and protecting property rights.