Comparing the marketing of Tescos and Audi Essay

For this task we have been asked to look at the ways two different businesses market their products and services the two businesses we have been asked to look at are Tesco & Audi. The first Tesco was opened in 1919 by a man called; Jack Cohen from that 1 store Tesco has grown in the market and now has 923 stores worldwide, Tesco is a supermarket that sells all kinds of household items such as food, clothes range, technology range, phone range furniture, toys and many more, Tesco has many different stores which make a lot of money every year. Tesco uses its brand to obtain new customers and also retain old customers because they are a reliable business that is well known by many of their customers. They are known for their cheap products and suitable prices which attract customers to come back and buy again, They obtain new customers by doing things like advertising and promoting their products and business on things like flyers, T.V, Internet, Comparison sites and a lot of other places, they also do things like club cards which allow customers to get some products for lower prices or free, this makes the customer want to come back and shop again because they like the way of service. We have been asked to pick one product from each business and discuss the marketing techniques between them, from Tesco I have chosen to do a Mobile phone, the target markets of this product is everyone, but almost everyone needs a mobile phone, the branding of the mobile phone will be different because if the phones are made from different companies their brands will be on them, Tesco will use adverts to promote the phone and get people interested so they will buy it, Tesco uses relationship marketing with phone brands such as Nokia, Samsung ECT as they sell their products in side their stores, The mobile phone has a large number of rival products as there are lots of different phone models to choose from and this particular phone might not get bought. An Ansoff matrix is a business strategy that businesses use to increase sales and improve their market, Tesco is developing new products in existing markets because they already have a market and they just need new products to sell in their market, for example if Tesco created a new product their brand phone they would sell it under their name in their stores. Tesco constantly uses the Ansoff matrix as they are always releasing new products, and selling them, sometimes Tesco would work on improving a market and sometimes they create completely new products, If Tesco release a new mobile phone they would be releasing a new product into a existing market which would be using the Ansoff matrix. Audi AG (Xetra: NSU) is a German manufacturer of a range of automobiles, from supermini to crossover SUVs in various body styles and price ranges that are marketed under the Audi brand. The company is headquartered in Ingolstadt, Germany, and has been a wholly owned subsidiary of Volkswagen AG since 1966, following a phased purchase of its predecessor, Auto Union, from its former owner, Daimler-Benz. Volkswagen re-launched the Audi brand with the 1965 introduction of the Audi F103 series. The company name is based on the surname of the founder August Horch, meaning listen — which, when translated into Latin, becomes Audi. Audi uses its brand to sell their products, Audi is a well known and trusted brand and people can buy from them with trust unlike smaller companies, customers know that they can trust Audi, because they have reliable cars that they sell and the public know these facts about the business so they trust the company and buy the car. We have been asked to pick one product to describe the marketing techniques they use, I have chosen to do the Audi RS4, the target of this car would be anyone who can drive and people who have money, The branding of this car would have the Audi Logo on it, Audi will use things like adverts to promote their product, advertising increases sales, Audi can use Relationship marketing with Car dealerships/shops which sell their cars, Audi has a lot of rivals due to there being many other car companies that are selling cars like them such as Mercedes, Bmw, ECT, so Audi will have to be better that the other companies and prove that they are the best car dealer on the market. An Ansoff matrix is a business strategy that businesses use to increase sales and improve their market; Audi is constantly creating new products in their existing markets, and sometimes creating new products for new markets, for example Audi would not start a new company to sell new products under, they would just make new products which would be cars and sell them under their current name which would be Audi. Audi constantly uses the Ansoff matrix as they are always making new cars and selling them, sometimes Audi would work on improving a market and sometimes they create completely new products, for example If Audi created a new car they would sell it under their brand name and this is using the Ansoff Matrix.

The Lost Symbol Prologue

House of the Temple 8:33 P.M. The secret is how to die. Since the beginning of time, the secret had always been how to die. The thirty-four-year-old initiate gazed down at the human skull cradled in his palms. The skull was hollow, like a bowl, filled with bloodred wine. Drink it, he told himself. You have nothing to fear. As was tradition, he had begun this journey adorned in the ritualistic garb of a medieval heretic being led to the gallows, his loose-fitting shirt gaping open to reveal his pale chest, his left pant leg rolled up to the knee, and his right sleeve rolled up to the elbow. Around his neck hung a heavy rope noose–a â€Å"cable-tow† as the brethren called it. Tonight, however, like the brethren bearing witness, he was dressed as a master. The assembly of brothers encircling him all were adorned in their full regalia of lambskin aprons, sashes, and white gloves. Around their necks hung ceremonial jewels that glistened like ghostly eyes in the muted light. Many of these men held powerful stations in life, and yet the initiate knew their worldly ranks meant nothing within these walls. Here all men were equals, sworn brothers sharing a mystical bond. As he surveyed the daunting assembly, the initiate wondered who on the outside would ever believe that this collection of men would assemble in one place . . . much less this place. The room looked like a holy sanctuary from the ancient world. The truth, however, was stranger still. I am just blocks away from the White House. This colossal edifice, located at 1733 Sixteenth Street NW in Washington, D.C., was a replica of a pre-Christian temple–the temple of King Mausolus, the original mausoleum . . . a place to be taken after death. Outside the main entrance, two seventeen-ton sphinxes guarded the bronze doors. The interior was an ornate labyrinth of ritualistic chambers, halls, sealed vaults, libraries, and even a hollow wall that held the remains of two human bodies. The initiate had been told every room in this building held a secret, and yet he knew no room held deeper secrets than the gigantic chamber in which he was currently kneeling with a skull cradled in his palms. The Temple Room. This room was a perfect square. And cavernous. The ceiling soared an astonishing one hundred feet overhead, supported by monolithic columns of green granite. A tiered gallery of dark Russian walnut seats with hand-tooled pigskin encircled the room. A thirty-three-foot-tall throne dominated the western wall, with a concealed pipe organ opposite it. The walls were a kaleidoscope of ancient symbols . . . Egyptian, Hebraic, astronomical, alchemical, and others yet unknown. Tonight, the Temple Room was lit by a series of precisely arranged candles. Their dim glow was aided only by a pale shaft of moonlight that filtered down through the expansive oculus in the ceiling and illuminated the room's most startling feature–an enormous altar hewn from a solid block of polished Belgian black marble, situated dead center of the square chamber. The secret is how to die, the initiate reminded himself. â€Å"It is time,† a voice whispered. The initiate let his gaze climb the distinguished white-robed figure standing before him. The Supreme Worshipful Master. The man, in his late fifties, was an American icon, well loved, robust, and incalculably wealthy. His once-dark hair was turning silver, and his famous visage reflected a lifetime of power and a vigorous intellect. â€Å"Take the oath,† the Worshipful Master said, his voice soft like falling snow. â€Å"Complete your journey.† The initiate's journey, like all such journeys, had begun at the first degree. On that night, in a ritual similar to this one, the Worshipful Master had blindfolded him with a velvet hoodwink and pressed a ceremonial dagger to his bare chest, demanding: â€Å"Do you seriously declare on your honor, uninfluenced by mercenary or any other unworthy motive, that you freely and voluntarily offer yourself as a candidate for the mysteries and privileges of this brotherhood?† â€Å"I do,† the initiate had lied. â€Å"Then let this be a sting to your consciousness,† the master had warned him, â€Å"as well as instant death should you ever betray the secrets to be imparted to you.† At the time, the initiate had felt no fear. They will never know my true purpose here. Tonight, however, he sensed a foreboding solemnity in the Temple Room, and his mind began replaying all the dire warnings he had been given on his journey, threats of terrible consequences if he ever shared the ancient secrets he was about to learn: Throat cut from ear to ear . . . tongue torn out by its roots . . . bowels taken out and burned . . . scattered to the four winds of heaven . . . heart plucked out and given to the beasts of the field– â€Å"Brother,† the gray-eyed master said, placing his left hand on the initiate's shoulder. â€Å"Take the final oath.† Steeling himself for the last step of his journey, the initiate shifted his muscular frame and turned his attention back to the skull cradled in his palms. The crimson wine looked almost black in the dim candlelight. The chamber had fallen deathly silent, and he could feel all of the witnesses watching him, waiting for him to take his final oath and join their elite ranks. Tonight, he thought, something is taking place within these walls that has never before occurred in the history of this brotherhood. Not once, in centuries. He knew it would be the spark . . . and it would give him unfathomable power. Energized, he drew a breath and spoke aloud the same words that countless men had spoken before him in countries all over the world. â€Å"May this wine I now drink become a deadly poison to me . . . should I ever knowingly or willfully violate my oath.† His words echoed in the hollow space. Then all was quiet. Steadying his hands, the initiate raised the skull to his mouth and felt his lips touch the dry bone. He closed his eyes and tipped the skull toward his mouth, drinking the wine in long, deep swallows. When the last drop was gone, he lowered the skull. For an instant, he thought he felt his lungs growing tight, and his heart began to pound wildly. My God, they know! Then, as quickly as it came, the feeling passed. A pleasant warmth began to stream through his body. The initiate exhaled, smiling inwardly as he gazed up at the unsuspecting gray-eyed man who had foolishly admitted him into this brotherhood's most secretive ranks. Soon you will lose everything you hold most dear.

Attaining organization Dissertation Example | Topics and Well Written Essays - 11000 words

Attaining organization - Dissertation Example The primary aim of this thesis is to identify the technical and team roles critical to the functioning of an outsourced software development team in company Y. Belbin's 9 team role analysis will be used to analyse the team roles (Belbin Associates, 2006, online). 1.2. Research Question Based on the primary aim, the secondary aim of this thesis is established in the framework of the primary research environment. It is stated as follows: What team skills are missing in an outsourced software development team in Company Y contracted by Company X I. Context This chapter provides a brief context for this thesis. First, the history of Belbin's 9 team role analysis is documented (Belbin Associates, 2006, online). The next section contains the justification for this study. The last section defines the terms used in this study. 2.0. The Origins of Belbin's 9 Team Role Analysis The concept of team role is steep in history and has taken on center stage in recent years when flatter flexible organisational structures (Drucker, 1992, p.95), worker empowerment and teamworking (Webb, 2003, online), and interdependence that is a main feature of the modern semi-automated work (Smith et al., 1994, p.33) are the trend. Amongst the various team role classifications, that of Belbin (Belbin Associates, 2006, online) has become famous due to the ease with which a team member's most intrinsic team roles are identified through administration of the Belbin Self-Perception Inventory (SPI) (Senior and Swailes, 1998, p.1). The Belbin Team Role Self-Perception Inventory (SPI) is a famous and widely used metrics for identifying an individual's team roles. Over a span of nine years, Meredith Belbin and a group of researchers based at Henley Management College,... The concept of team role is steep in history and has taken on center stage in recent years when flatter flexible organisational structures (Drucker, 1992, p.95), worker empowerment and teamworking (Webb, 2003, online), and interdependence that is the main feature of the modern semi-automated work (Smith et al., 1994, p.33) are the trends. Amongst the various team role classifications, that of Belbin (Belbin Associates, 2006, online) has become famous due to the ease with which a team member’s most intrinsic team roles are identified through administration of the Belbin Self-Perception Inventory (SPI) (Senior and Swailes, 1998, p.1). The Belbin Team-Role Self-Perception Inventory (SPI) is a famous and widely used metrics for identifying an individual’s team roles. Over a span of nine years, Meredith Belbin and a group of researchers based at Henley Management College, England, researched the behavior of managers from around the globe. Managers participating in the study were given a series of psychometric tests and assigned to teams of different compositions while they executed complicated management activities. Their main personality traits, intellectual patterns, and behaviors were evaluated during the activities. As time went by different groups of behavior were identified as underpinning the success of the teams. These were called â€Å"team roles†. The team roles can be categorized into three categories of action-oriented roles, namely the shaper, the implementer/worker, and the completer-finisher.

Advanced taxation Case Study Example | Topics and Well Written Essays - 2500 words

Advanced taxation - Case Study Example Lord Bolsover is quite wrong in his thinking that in the event of his death,all his belongings will be divided equally between his wife and son.He is also wrong in assuming that the income and assets of the married coupe are added together for tax purposes. The fact that he has not made any will so far will make his successors liable for inheritance tax in the event of his death.Present taxation system charges Inheritance Tax on any estate worth over 300,000 (for Tax year 2007 -2008). The value of estate is arrived at by adding up the value of every thing one owns including the share in jointly owned properties. The amount of large gifts made during the last 7 years before death will also be subjected to inheritance tax.Up to the value of 300,000 the estate is covered under 'nil rate band' and no IH tax is payable. Any value over the 'nil rate band' becomes taxable at a rate of 40 percent. Inheritance tax is to be paid out before the money and belongings of the deceased can be distri buted according to his/her will.Based on the above premise unless some tax planning is not done immediately, Lord Bolsover's estate would be subjected to inheritance tax. The following are some of the ways in which the incidence of Lord Bolsover's estate to inheritance tax could be mitigated.The 'nil rate band' is an effective saving in the value of the estate which would otherwise be subjected to inheritance tax.... Annual Exemption of 3000 which can be carried forward for one tax year, Marriage gifts exemption of 5000 to each of the children, 2500 to each of the grand children and 1000 to anyone (these gifts are exempted subject to the condition that the gift is made before the wedding day) and exemption of small gifts made to anyone up to a value of 250 during the tax year. All these gift exemptions have the effect of reducing the value of the estate that may be subjected to inheritance tax. 1.2 Making Direct Gifts: This is another way of mitigating the incidence of the inheritance tax on the estate of Lord Bolsover. However for using this method of tax avoidance there are two hitches which Lord Bolsover has to consider: He should live at least for 7 years to make the gifts exempt from tax He cannot have access to the monies gifted by him on his own accord. The important point to note here is that any gift made directly or into an absolute trust over and above the exempt gift allowance will be deemed as 'Potentially Exempt Transfers (PET) for a period of 7 years and until this period of 7 years the person making the gifts should remain alive to make the gifts eligible for exemption from inheritance tax. However the law allows the charging of the inheritance tax pro-rata depending on the year of death after the gifts or transfers are made, subject to the nil rate band of 300,000. This method of taxing pro-rata is known as Taper Relief which reduces the tax incidence by 20 percent every year after an initial period of 3 years. That means the reduction of tax rate will start from the fourth year before death onwards. But there are several other considerations like the time at which Lord Bolsover wants the beneficiaries to get the gifts, change in the circumstances of the

Preparing to teach Essay Example | Topics and Well Written Essays - 750 words

Preparing to teach - Essay Example (Brown G., & Atkins, M., 1988) First of all, I'd like to emphasize that activities in class much depend on planning, that's why it's so important to make all the necessary preparations for teaching to provide a strong and authoritative background for good educational results. The information provided was gathered with the help of analyzing quantitative and qualitative data of questionnaires and test results provided for students at the beginning and in the end of teaching process to study the results of teaching methods and their impact on group learning. Preparing for teaching a teacher needs to determine the group size. Generally, the shorter the task the smaller must be the group (those of six or less), but for better cooperating process the optimum number of people is from eight up to twelve, where there is a possibility to work in pairs and in groups of three. There is also a task for the instructor to select the group. Groups selected by the researchers tend to perform much better than the self-selected groups. Heterogeneous groups are generally better. The length of teaching process depends on the specific collaborative learning activity, but there is a need of time for a group to become cohesive. (Dechant, K., Marsick, V. J., and Kasl, E., 1993) So that I organized the group of twelve students to be able to work in small groups of two, three and four people, that also gives an opportunity to provide them with different types of tasks and make the process more interesting and useful one. Also I've selected the group members (6 boys and 6 girls to avoid the appearance of possible gender differential misunderstanding in the process of teaching and fulfillment the tasks. Then, me, as a teacher, arranged the room for students to face one another and so the teacher can walk up to each group. While structuring the task and positive interdependence among the students, I provided them with academic task explanation, and criteria for success explanation, pointed out a group goal for the students to be able to rely on one another, thus emphasizing the fact they need to establish good collaboration between one another, and that much is dependent on the inner relations of the group members. (Smith, K. A., 1996) That's why on the second preparatory stage the teacher is to think over the possibilities of conflicts appearance inside the group and provide the best practice of their outcomes. So this reason I've studied theoretical material on conflict management to structure the group in its best way; then - explained the task and common group goals for students to know what they are to aim at. While planning group structure, the teacher must choose between three main group types: informal, formal, and base. Informal groups can be created in short term for solving some problems, have little structure, can have new group member with each class day, and is mostly useful during lectures, because it provides a quick check on student comprehension. Next type, which is formal group, requires more planning as to the size and composition of the group, because it has greater structure; has a specific purpose, and the same group members throughout its existence. Base groups, on the contrary, serve a broader purpose. They meet regularly, require planning as to the size and composition, have a constant membership and a specific purpose to complete. The teacher here should provide support, encouragement, and

Personal Perspective of Managing Change Essay Example | Topics and Well Written Essays - 1250 words

Personal Perspective of Managing Change - Essay Example The other challenge is in the environment that holds numerous alterations to provide the necessary comfort. Without an organized plan and schedule to predict these changes, the management of the organization may suffer the fate of failing to develop their mission and generate the needed development. However, with the desire to develop positive progress and create the virtues that help the subordinates create success, the management may articulate the positive measures to relay their information to complete the set goals. The social relationships within the society may also be extended to the relations within the work place to accord the tough challenge of discerning diversity. The norm presented is a constantly changing environment and the stable mission and objective of the organization. The challenge is also extended in presenting the needed steps that would oversee these missions and objectives delivered in the right proportion. Changes within the organization are diverse and affe cted by numerous environmental presentations. The organization holds individuals that bear distinguished beliefs and experiences. The diversity is also presented in the mode of completing tasks and the relation to external subjections. The skilled group of qualified personnel that are invited to engage in the task completion determines the composition of the organization. The changes witnessed in the organizational setting are affected by the nature of the result that is possessed in the procedure. The norms held by the individuals are considered to affect the witnessed changes in the organization. The set up within the organization are determined by the values established and the principles held in the members. When the change to be created affects the values and beliefs of the members, the results may be damaging to the organization and inhibit progress. The set principles and guidelines established are extended to be projected in future organizational setting that defines the org anization. The ideology to preset the necessary implements to maintain the scope of change within the organizational setting promotes development. Once the organization identifies the possibility of experiencing changes within the organization, the reaction needs to be placed on the adequate managerial style that has the capability to maintain the performance level. The changes experienced in the organizational setting may affect the results presented in task completion. The results are varied with the consideration issued in predicting the cause of the changes. They may be from the organizational structure or the accumulated experiences from the members that constitute the organization. Management of these changes has been realized to contribute to the positive outcome needed to provide a positive direction to mission completion. The majority of the attempts to manage the witnessed changes present tasking procedures that may not be productive. The solution presented is the study of the change management procedure that issued the right directive in arranging values that hold the needed key for progress. The images of change management are the key factor applied by the manager to offer a positive platform that abets successful outcomes. The manager needs to

Marketing Report Assignment Example | Topics and Well Written Essays - 1500 words - 1

Marketing Report - Assignment Example McDonalds is one of the leading fast food producing organizations across the globe. The organization is quite popular in Bahrain due to its products of high quality and introduction of differentiated fast food products. Beef Burger has been produced by McDonalds in Bahrain. The organization has gained huge popularity among the people of Bahrain due to the high quality aspect of Beef burger. This assignment will discuss about several marketing and branding aspects of McDonalds regarding its mentioned Beef burger. McDonald’s is one of the largest and leading fast food producing organizations across the globe. The organization has effectively implemented global business expansion strategy in business operation process. Bahrain is another country in which McDonalds has successfully adopted and implemented global expansion strategy. McDonalds has implemented the combination of cost leadership and product differentiation strategy in business operation process. It is true that, each and every leading multinational organization has implemented unique business level strategies in business operation process in order to gain potential competitive advantages. Similarly, the management of McDonalds has adopted and implemented the combination of product differentiation and cost leadership strategy in Bahrain in order to gain potential competitive advantages over its competitors in Bahrain fast food market. Implementation of cost leadership business level strategy has helped McDonalds in Bahrain to reduce the business operation cost in order to offer products in economic price level. It is true that recent financial crisis and economic slowdown has affected the purchasing power of people. Therefore, the cost leadership strategy has helped the organization to support the purchasing power of people in Bahrain (Parameswaram , 2006, p.95). On the other hand, demand for differentiated fast food products among the people of Bahrain is increasing significantly. Introduction of Beef

Damage Caused By Oil Spills Essay Example | Topics and Well Written Essays - 1000 words

Damage Caused By Oil Spills - Essay Example In terms of property damage, there are certain laws that have been enacted owing to which people can claim for damages caused by the negative approach or negligence. However, individual or business units often deny the claim against a particular damage. This can be apparently seen in the cases of LOVELACE v. FIGURE SALON, INC and NATIONAL CANDY WHOLESALERS, INC. v. CHIPURNOI, INC. In this particular case held in the Court of Appeals of Georgia, the plaintiffs i.e. Marilyn Lovelace and her husband prosecuted a fitness facilities business run by named My Fair Lady. The business provides fitness equipment to its clients with the aim of improving their health and fitness. However, Marilyn Lovelace got injured from the equipment provided by My Fair Lady. The business further denied from entertaining any of the claims of the plaintiff on the ground of the contract signed amid the two parties. The defendant claimed that the contract signed by the plaintiff clearly mentioned that the use of the equipment by the customers for any exercise is entirely at their own risk. Hence, the defendant denied entertaining any claim of the plaintiff on the aforementioned ground (Leagle, Inc. 2014). In this particular case, National Candy Wholesalers, Inc (NCW) had taken a particular space of Atlanta Civic Center for lease. The company further provided a portion of the lease space to manufacturers of candies to showcase their products among which Chipurnoi was also included.

Strategic analysis of Porsche AG Research Paper

Strategic analysis of Porsche AG - Research Paper Example analysis of the firm is provided aiming to indicate the policies that should be adopted by the firm in order to increase its competitiveness within its industry. Porsche is one of the key competitors in the automotive industry worldwide; the competition in the specific industry is extremely strong; however, the recession seems to have influenced the performance of the sector’s firms; in accordance with a relevant report certain firms, like Honda and Mazda, have standardized their profits, while others, like Chrysler and Toyota face severe financing or operational problems (BNET News, 2010). The firms that operate in this industry are likely to face five different ‘forces’- as indicating in the Porter’s five forces model in Figure 1- Appendix; these forces are: a) the customers – their preferences on expensive and advanced-technology cars are likely to continuously increased, b) the suppliers – certain materials required for the production of the firm’s products are unique, a fact increasing the power of the firm’s suppliers to bargain for increased prices, c) substitute products – cars with similar characteristics with those of the specific firm continuously appear in the market; the difference in their quality is the only element for ensuring the superiority of the firm towards its rivals, d) threat of new entrants; periodically, new firms enter the automotive industry, a fact that could threaten the firm under the terms that these firms’ products could reach the level of quality of the firm’s automobiles and e) the competition, which is likely to be continuously increased as each firm fights to standardize its performance securing its position in the automotive industry. At the next level, the survival of firms in the specific industry is depended on the following factors: a) the demands and the preferences of customers (in terms of quality of products but also of the time required for processing the customers’ orders/ availability of

Declaration Of Independence Essay Example | Topics and Well Written Essays - 750 words

Declaration Of Independence - Essay Example What led Jefferson to prepare this document anyway? What did the document declare? This essay sets out to answer these two questions and to show that the Declaration of Independence was because of pressing international issues in 1776. This will be achieved by investigating the many imitations and documents that have spawned since 1790 and offering comparisons of how it was received in the past and at present in and beyond the U.S. This would eventually lead us to draw inferences regarding reflections on the afterlife of The Declaration of Independence and probe the modern conception of rights, both collective and individual. Discussion First, it would be beneficial to understand the just what the declaration declared before we can be able to show its international context. Jefferson’s Declaration of Independence announced the emergence of the U.S into the international scene. For starters, before the Declaration of Independence, the term â€Å"United States of America,† had not publicly been used anywhere. This is expressed explicitly in the opening paragraph of the document, which states that the states representatives were bringing forth the thoughts of mankind, the reasons why united people had made a choice to assume the equal and separate station among the powers of the earth to which God and Law of Nature entitle them. The phrase, â€Å"powers of the earth,† can be seen to signify other sovereign states, which can be considered as the Declaration addressing an immediate international audience. I was the intention of the U.S to join the other sovereign states I the world on an equal level as an â€Å"Independent and Free State,† with full powers to conclude peace, establish commerce, contract alliances, levy war, and to carry out all other things and acts which independent states had the right of doing (The Declaration of Independence as Adopted by Congress). That intention by the U.S announced tit option to join the internatio nal community of Free and Independent states instead of the British Empire. Therefore, we can assert that the Declaration of Independence was actually a declaration of interdependence. The primary intentions of the Declaration of Independence were to legitimize the civil within the British Empire and make it a lawful war between states. By declaring American colonists as outside of hi protection, George III had turned them into rebels. Therefore, there was a need for the rebels to transform themselves from rebels to legitimate colonists. International recognition for this cause and foreign support was thus imperative. This motivation for internationalization was made clear by Paine in 1776 via his argument that custom of nations required that America had to make a declaration of Independence before any European power would attempt to mediate peace between Great Britain and Americans. Obviously, Spain or France could not help any persons they considered as rebels against another mona rch. In addition, for Americans to be considered as reliable trading partners, they grievances needed to be put before foreign courts in a persuasive manner. According to Paine, this would be impossible without the Declaration of Independence, which would ensure that the U.S took rank with other nations (Paine). According to the records of the Continental Congress, there was a strong link between the demands of International Relations and the Declaration of Independence. A resolution was tabled in Congress by Richard Lee in 1776 declaring colonies independent and at the same time, urged Congress to put in place measures that would affect the formation of foreign Alliances. This resolution was consequently adopted by Congress announcing the

Modern Irony Essay Example for Free

Modern Irony Essay Since the beginning of time, man has attempted to unravel the seemingly infinite mysteries of life. The English playwright Tom Stoppard has written plays that address the existence of fate (or a predestined outcome for every human being) and controlling ones own destiny. His plays also deal with the many other uncertainties that arise during a normal persons life; such as sex, how we know things, etc. (Tom Stoppard) Stoppards utilization of satire and drawn parallels mirror the image of lifes faults and intricacies. His plays serve to show people the humor and irony that life presents. During the time that Stoppard wrote his first play, Rosencrantz and Guildenstein, society was experiencing a social upheaval. The late sixties was a time of experimentation and existentialism. People were asking questions about their very existence in a way never before seen. In this climate, Stoppard saw the opportunity to begin writing plays that dealt with the issues of the time (Overview of Tom Stoppard). He took a whimsical spin though, on the method in which he delivered it. He embarked on the continuing journey of a great literary tradition, but diverged from its path by ridiculing it. His desire to write plays was not a spontaneous venture; during this era, many people wanted to express their thoughts and feelings, and plays were a common medium. Stoppard observed this and pondered if success and knowledge could be his as well. The general question being asked around this time was Why are we here? Man has always sought an answer to this question, but now more than ever was it expressed in literature and plays. Stoppards craft shows a propensity for humor, which offers a more light-hearted viewpoint of this previously serious and mundane subject. Stoppard asks the question of not only Why are we here? but also How are we here? as well. He explores the intricacies of life in an attempt to derive a meaning. His comical touch alleviates the heavy association of philosophy though. Whether or not his question is answered is secondary to the method in which we view it. In Stoppards eyes, it is more important to live rather than to comprehend why we live. This approach brought fanfare to Stoppard, as society saw his style as fresh; and a tangible device to which they could relate. Literary history has had a heavy impact on Stoppards method and conceptual presentation. He admits to being swooned by such masterpieces as Waiting for Godot by Samuel Beckett, and The Love Song of J. Alfred Prufock by T. S. Elliot. The ideas that he extracted from these artists and their works helped him divulge his own style to which he could further literature. A parallel may be drawn between Waiting for Godot and Stoppards Rosencrantz and Guildenstein are Dead. Both works feature two men, and their journey in existentialism. Becketts version has them waiting for a surreal character (Godot) that, in the end, never appears. The characters are portrayed as confused, and the play takes on an air of severe depression. The play is very much an appeal to the audience, as they too are overcome by this depression. The characters slowly fade away, emotionless and unexcitable. Stoppards version though has his characters embark on a journey; a fruitless journey, but a goal to meet none the less. Beckett disarms his audience, while Stoppard embraces them into his play; making the audience feel at home and comfortable. Stoppard diffuses the rather heavy atmosphere belied by Beckett with satire and a whimsical wit. For example, In Rosencrantz and Guildenstein are Dead, Stoppard portrays the idea of death as a game. He does this in an attempt to show the audience that it is not to be feared. He achieves this by his satirical depiction of the internal play within Hamlet by Shakespeare. The characters in the play perish, and then the actual characters die in the exact same manner. The audience can identify with death, as all humans are concerned with their own demise. They take away though, a much less serious approach in viewing it. The other author, Elliot, often depicted his characters as stumbling and indecisive. One of his most famous works, The Love Song of J. Alfred Prufrock, deals with a man who is enamored with the variables and uncertainties of approaching a woman that he admires. In the poem, Prufrock realizes that only he cares about his decision, and whether he chooses to pursue her or not, will not matter. He sees himself as part of his own world; in which he is the sole occupant. He, sadly, is only coherent enough in his world though to realize how much he is potentially missing by not being completely immersed in it. He cannot solve this problem though, and continues wandering and pondering till the end of time. Stoppard took away from Elliot a similar stance to character development. He portrays his characters as aware, but not completely in tune with their surroundings. The effect is one of dismay, but comical as well. Stoppards portrayal is more humorous in nature, displaying them as bungling and unresponsive. This is exemplified in his play, Rosencrantz and Guildenstein are Dead. His characters attempt to divulge the plan and their purpose as designated by the King (Claudius), but are unable to fully grasp its meaning. These literary greats do not contribute the fabulous humor that Stoppard has developed though. His humorous elements can best be equated to his passion for the Theatre of the Absurd. This type of theater came into popularity during the 1950s and 1960s; and was applied to plays that portrayed the human situation without purpose and with absurd plot elements. This form was a reemergence of an attempt towards awareness of mans purpose in life; the sense of wonder that man has always had concerning how things work and why. In some respect, it was anti-theater, as it went against the basic premise of regular theater. It was illogical and usually had very little or no plot (Culik). Stoppards fascination with this art form had a profound impact on his own personal style. Sigmund Freud, a proponent of the Absurd, said, In trying to burst the bounds of logic and language, the absurd theater is trying to shatter the enclosing walls of the human condition itself. (Culik) This confirms the spatial concepts that the theater was attempting to portray, and Stoppards comedic element is based upon this illogical and removed nature. The play Rosencrantz and Guildenstein are Dead is a satirical look upon the much more staunch play Hamlet. It delves into the lives of two supporting characters named Rosencrantz and Guildenstein. The characters unimportance is exemplified in the play by their lack of understanding and baffling thought patterns. This play shows Stoppards portrayal of artificiality of theater. The performance is not about the actual play, but the context of the play; the idea of attending the performance. The characters appeal directly to the audience, instead of becoming immersed in its story and plot. The effect is comical, as the play begins with them merely spinning coins and making bizarre implications towards the audience. Rosencrantz has spun the coin and received heads nearly 85 times. His humorous portrayal of the law of averages is his justification for his luck. This is the plays first look into why things happen. The characters are unable to come to a proper conclusion though; and the path that Rosencrantz begins upon (the law of averages) cannot be farther removed from the truth. The play continues with these hilarious situations, finally having the pair receive their mission from Claudius the King. The pair ponders why they have received the mission, and why they must complete it. Stoppard constantly asserts that a play is being read. ; instead of allowing the reader to delve into a story. He makes the reader think of Hamlet, and its tragic implications; and applies a humorous tone to it. In the end of the play, Rosencrantz and Guildenstein are supposedly murdered (the English king is instructed to execute them, but their actual deaths are not witnessed), but instead of a grand exit, they merely fade away. Stoppard shows through this that the characters had served only a menial and insignificant purpose. The reader is unable to sympathize with the characters demise, as the play is portrayed with a comical tone. This disservice to death with satire is both eye widening and thought provoking. A person is assaulted with the moral implications of death, instead of offering a deaf sympathy to the characters grief. Stoppards ability to allow the playgoers to analyze what they feel is his greatest achievement in the work; not the story itself. Stoppards play Arcadia is another intelligent play that provokes the reader to appraise mans life long debacles. In the play, the characters attempt to grasp the mysteries of sex, and a path towards knowledge that leads to an understanding of the future. The latter is portrayed as an equation developed by Thomasina, in an attempt to control her own destiny. Her professor, Septimus, also contributes to the equation by way of a lesson to his student, Thomasina. He explains to her that the loss of knowledge isnt the end of the world; as it is rediscovered eventually in the future. This subject is an explanation of humanitys technological progression and our knowledge. The play attempts to allow the reader to grasp the many unknown or misunderstood concepts in life. Mysteries such as sex can only be acquired through practice and progression of time. Stoppard appeals to the general public that things cannot be instantly understood; they must be studied and experimented with to fully grasp the full meaning. These mysteries will eventually be solved, but it shall take time and patience; nothing is instantaneous in life. Stoppards inclusion of Thomasinas equation is both humorous and practical in its implication. Thomasinas goal was to create an equation that could more or less tell the future. It is humorous to surmise that a simple equation can predict the future with numbers. The limitless variables and uncertainties in life will forever impede such an advancement. Stoppard attempts to explain that life itself is intangible; it can neither be predicted nor reduced to a simple equation. Stoppards plays contain many useful outlooks on how a person should view their life on earth. People are always concerned with the future and their own death (and when it will occur). Stoppard believes that man shouldnt view life with such a critical eye; and instead should accept certain facts to be true. Man is powerless concerning the ability to control life. There are many uncertainties in life that are both humorous and infinitely escapable to the human mind. His plays show inept characters driven into the ground by their consumption of the study of life. Stoppard suggests through his characters comical adventures that life is for living, and the consequence of a life spent longing and pondering equates to a life disenfranchised of pulp and meaning. The meaning which man longs for cannot be quantified; it must be experienced to break the surface of significance. Works Cited Stoppard, Tom. Arcadia. Stoppard, Tom. Rosencrantz and Guildenstern Are Dead. Tom Stoppard. DISCovering Biography. Online Edition. Gale, 2003. Student Resource Center. Thomson Gale. 17 January 2005Â  http://galenet.galegroup.com/servlet/SRC

Irish Troubles Political Cartoons: An Analysis

Irish Troubles Political Cartoons: An Analysis The political cartoons about the Irish troubles drawn by a number of prominent cartoonists in the early 1970s differed sharply from the cartoons produced by artists during the peace process in the 1990s. Arguably this could be down to a number of factors. Firstly, cartoonists in the 1970s were much more likely to attack specific groups of people – the Irish themselves have been targets of British supremacist derision for several hundred years, and have been depicted in a derogatory light in cartoons since cartoons were first printed. Second, the situation was considerably more grave in the 1970s than it was in the 1990s – although the IRA were still established and effective in the 1990s, the 1970s saw the most bloodshed, and therefore, it must have been very difficult to perceive what was a complex and (to some) ridiculous situation in Ireland without knocking the Irish for propagating and sustaining this idea of religious sectarianism. The complex political situation in Ireland that had arisen as a result of four hundred years of religious complexity between the dominant British Protestant landowners, who held the political reins, and the oppressed Irish Catholics, ultimately had a great impact on the British interpretation of the Irish throughout the generations, and also upon the representation of the English in Irish journalistic literature and art. Thus, a particular view of the Irish came to be represented in the British media, which tended to emerge whenever there were specific troubles within Ireland or else among the Irish in Britain. These stereotypes, especially of the Irish, can be said to be at their most potent during the time of the political troubles in Ireland. The resultant swathe of political cartoons that were printed on a regular basis in the daily newspapers in both Ireland and Britain, particularly during the political unrest and violence of the early 1970s, tended to push the Irish into a subcategory of their own, denied of their identity as autonomous individuals, subjected and represented by a more dominant political force, namely, the English. The history of the cartoon in respect of this tradition of Irish caricaturing is interesting, as it reveals a rich history of treating the Irishman as a figure of derision and ridicule – however, it is more interesting to note that this figure changed throughout the years and, especially with the increase of militancy among the grass-roots of Irish working class communities, saw the emergence of the cartoon depiction of the Irishman as a simian, bestial, uncivilised caricature, often wielding knifes and other implements, and driven by a fervid passion to kill, much like zombies from a horror film. The history of political cartoons goes back to the eighteenth century. However, technological developments in photography changed the nature of cartoons at the turn of the century, in many ways shaping the type of cartoon we see in newspapers nowadays: Fitzgerald, in Art and Politics (1973) argues that: â€Å"[The photograph] simply replicated the surface structure of life; it did not normally give it a depth of interpretation or meaning.† Thus, the photograph didnt entirely remove the need for the political cartoon, and in a sense, established the medium of the cartoon as a more biting representation of political and social malaises: â€Å"The political cartoon on the other hand sought to disrupt daily life, to make jokes and stage whispers and asides at the process if everyday life. [] The political cartoon was by its nature more subversive [than the photograph].† So, the nature of the political cartoon is to satirize and to comment upon, using visual imagery and caricature, the complexities of the cartoonists imagination / ideological persuasions. The effect of satirising political situations, and the placing of topical events into the medium of the cartoon, at least according to the cartoonists themselves, is largely arbitrary in its effect on the population: â€Å"Measuring the extent of the cartoonists influence on public opinion is a much more difficult, if not impossible task. [] Many cartoonists are [] dubious about its power.† Conversely, however, governments have always stepped in to control the production and the distribution of subversive cartoons. This suggests that they do possess a certain amount of impact when discussing or lampooning political leaders and people of significance: â€Å"French caricaturists of the 1830s who dared mock King Louis Philippe were fined and imprisoned; New York cartoonists criticisms of municipal corruption prompted government officials to attempt to pass an anti-cartoon law in 1897; and even in the modern era, when political cartoonists are prizes rather than prison sentences, satirists in totalitarian states have suffered harsh censure.† Indeed, some of the more subversive work of cartoonists have frequently stirred up controversy, especially concerning the representation of the Irish in British cartoons. In â€Å"The Irish†, by cartoonist for the Evening Standard, JAK, the representation of the Irish caused controversy that, with Ken Livingstones recent â€Å"Nazi† comments about the Evening Standard, continues to plague the political scene today: â€Å"none can excuse the fact that [The Irish] represents one of the most appalling examples of anti-Irish cartoon racism since the Victorian era. [] As a result of complaints made by many people in Britain, the Greater London Council, under its leader Ken Livingstone, withdrew its advertising from the Standard and demanded a full apology, which was refused.† The cartoon itself equates the Irish with death and barbarism, with the words: â€Å"The Ultimate in Psychopathic Horror: The Irish†. Although angered by the IRA bombings and the killing of innocents, this inability to describe the political complexities of the Irish, reducing them instead to a monstrous racial stereotype, not altogether unique in the cartoons of the time, tends to simplify, and thus promote Irish resentment during the period. However, in the second period I will be discussing in this piece, namely the late 1990s, the cartoons drawn by people like Martyn Turner during the peace process of the John Major and Tony Blair governments differ wildly from this tendency to demonise and / or denigrate the entire nation of Ireland – instead the cartoonists eye is drawn to subversive representations of the bureaucracy and the players within that complex and impenetrable political chess game that the Irish peace process became in the eyes of the public. The cartoons drawn, generally, seem less provoked by Irish or British resentment, and more represent a more benign form of political satire, that being the politics of government rather than the (sometimes militaristic) persuasions of the Irish population. The crude and hurtful Irish stereotype as barbaric, brutish and stupid are discarded – instead, the governmental players are the main focus for the satirists eye. There was a period in the early 1970s when an impending civil war in Ireland seemed inevitable, with clashes between British paramilitary and Loyalist groups in a state of near-war. â€Å"A number of paramilitary organisations were formed in Protestant working-class areas to counter-balance the activities of the Provisionals and carry out attacks on Catholic areas. As the IRA increased its campaign of shootings and bombings, 1972 became the most violent year of the Troubles with 467 deaths in Northern Ireland, 321 of which were civilian casualties.† The work of the cartoonists of the period assumed a similarly grave and polemical nature, as often the caricaturists and the cartoonists of the period would be divided between Catholic / Protestant, as well as down British / Irish lines. The problems with British intervention as â€Å"peacekeepers† culminated in the â€Å"Bloody Sunday† massacre of 30 January 1972, where British troops opened fire on unarmed catholic protesters: â€Å"It was in January 1972 that the British Army shot and killed thirteen civilians in Derry, writing another disaster into Anglo-Irish history. Bloody Sunday, as it was called, was commemorated twenty years later in 1992 with bitterness and anger.† The representation of the British paramilitary presence in Ireland divided cartoonists, and the culmination of the supposed folly of British intervention in Northern Ireland reached boiling point with Bloody Sunday. Thus, politics and ideology in 1970s reached such a stage that generalisation and ignorance about the Irish situation abounded, signalling a return to the grotesque caricaturing seen in Punch in Victorian times. The political complexities, difficult as they were to sum up in a simple argument, were thus heavily simplified by a number of British cartoonists, and this gross simplification often led to the demonisation of the Irish as a whole. This is demonstrated by both the cartoons of Cummings and in the highly controversial cartoon, â€Å"The Irish†, printed in the Evening Standard, in which all Irish citizens are tarred with the same brush. Again this differs greatly from the work of Martyn Turner, who I will focus on in greater depth; his cartoons are steeped in the complexities of the Irish situation, the bureaucratic and political turmoil of the Irish peace process in the 1990s, and its eventual resolution in a ceasefire. Thus, the body of Martyn Turners work in a sense tells us how the political cartoon, especially the market for this particular brand of political cartoon has changed from representing the opinion of the ignorant masses, to enlightening and stimulating an informed few. Martyn Turner strays away from the traditions of social stereotyping, choosing instead to focus on the political bureaucracy and its many players. His cartoons are effective on a number of distinct levels, and his work is predominantly concerned with satirizing political institutions and their players, rather than making sweeping and hurtful gestures about a whole group of people. Especially from the overtly racist work of the 1970s, we see a resurgence of the Irishman as a simian stereotype, who is either drawn to carnage and violence, or else is too stupid to conduct his own affairs with any degree of control. In Cummings work of the early 1970s, we see the Irish represented as racial stereotypes. In this dissertation, I will look firstly at the development of this stereotype, how it developed from an idealised representation of Ireland in the 18th century, to the myth of stupid, impulsive, apelike creatures in publications such as Punch in the mid-nineteenth century. From this I will then turn to representations of the Irish (and of the British involvement in Ireland) in the 1970s, looking especially at pieces of work that explicitly and blatantly attack Irish culture, using a stereotype that is both broadly racist, the only effect of which is to emphasise the lack of understanding and the bigotry in which a great swathe of British citizenry lived. History of Stereotypes in Cartoons James Gillray (1757-1815) is widely reputed as being the first great British cartoonist. In his work, the notion of the Irish as simian tends to prevail, and they, along with the French, are seen as barbaric, stupid, tokens of â€Å"otherness† that one tends to associate with any representation of a minority and / or, a barbaric outsider. In â€Å"United Irishmen upon Duty†, printed on 12 June 1798, Gillray attacks the dissident Irishmen: â€Å"It depicts the rebel United Irishmen as mere agents of destruction and pillage, without political or moral principles. [] The cartoon is one of several in which Gillray simianises the belligerent Irish.† Thus, the reduction of the Irish to bestial stereotypes has a long history, that frequently makes a return whenever there is a reason for projecting hatred or condescension onto the Irish nation. In â€Å"Paddy on Horseback†, Gillray encapsulates the view of the Irish as stupid. In the picture, the Irishman has unkempt hair and a protruding jaw, however, he still possesses human, rather than simian features: OConnor suggests that: â€Å"The early cartoons from the 18th century are openly racist, portraying the Irish as ignorant peasants barefoot, ragged and thick.† Indeed, the image of the Irishman as a figure to poke fun at, and to label as the typical â€Å"fool† of caricature continues in a rich vein in British cartoons dating from this period. Slightly later, George Cruikshank uses the Irish to poke fun at. In â€Å"The Two Irish Labourers†, which features two Irishmen climbing a ladder and getting mixed up, â€Å"George Cruikshank [] illustrates the antiquity of the English view of the Irish as objects of laughter and derision.† This cartoon isnt political in its persuasion, but merely points out that, traditionally, and as the millions of jokes and put-downs featuring Irishmen in the punchline, the Irish could be used effectively to represent a typical stupid or ignorant person, who gets things mixed up or wrong. Thus, the re-emergence of these traditional Irish representations in the 1970s, when contextualised in a rich history of Irish racism, isnt particularly surprising. Punch magazine, published in the 1840s, became widely famous for its derogatory representation of the Irish as silly, warmongering, and ignorant, and signalled another re-emergence of this historical Irish stereotype, this time, and thanks to the scientific identification of racial stereotypes, the Irishman became more linked to representations of the Negro in mass art than to the civilised, aristocratic Brit. Thus, in Harpers weekly in 1898, the Negro, with protruding jaw, upturned nose and large eyes, according to this very subjective illustration, actually equates the perception of the Irishman with the perception of the Negro. By contrast, the profile of an â€Å"Anglo-Teutonic† appears in the centre, and, with long nose, strong jawline and fairer hair, appears less simian in appearance. This representation of the Irishman as a Negro, who is frequently seen as being untrustworthy, rapacious and animalistic in persuasion, is resurrected by a number of cartoonists in the 1970s as an ideal way of explaining, or at least glossing over the complex nature of the Irish situation. In â€Å"What was so marvellous† by Cummings, he represents the current political situation in Ireland as a n exercise in British colonialism. Edward Heath and, then Home Secretary Reginald Maudling sit at a desk with a soldier on top of a map of Ireland. In the background, a soldier is seen walking through India, Cyprus, Kenya and Malaya. The caption underneath reads: â€Å"What was so marvellous about the rest of the British Commonwealth was that we could always leave it.† The superiority with which Cummings regards Britain in relation to Ireland is striking, insofar as it essentially depicts Ireland as a dispossessed, colonized country, and glosses over the significant problems that the presence of British troops in Ireland actually caused. Of course, this view has some historical significance. The governing elite in Ireland following the invasion in 1690 laid the foundations for a Protestant Ireland for nearly two centuries, and those in charge of Irish affairs were essentially protestants descended from English colonialists, using parliament to enact stifling and repressive legislation against the catholics, which culminated in removing the right for catholics to own land. This of course led up to the potato famine, which killed millions. Thus, the colonialist implications of Cummings cartoon flippantly portrays a reality in a fairly hurtful and bitter way. In Apes and Angels, an overview of how the caricature developed in British cartooning, Curtis Jr. suggests that: â€Å"During the first two-thirds of the nineteenth century the stereotypical Paddy or Teague of English cartoon and caricature underwent a significant change. In sharp contrast to the regular, even handsome features of the wild Irishman or woodkern of the Elizabethan and early Stuart period, such as may be found in abundance in John Derrickes The Image of Irelande, with a discoverie of Woodkarne, first published in 1581, and different too, from the brutish, slovenly faces of Irish peasants appearing in prints dating from the reign of George III, the dominant Victorian stereotype of Paddy looked far more like an ape than a man.† This reduction of the Irishman to animal is one that begins to return sporadically when the political situation gets grave once again in the 1970s. In these cartoons, often the complexity of the political situation is whitewashed, or else no attempt whatsoever is made to describe the Irish problem in terms of satire or a representation of different sectors of Irish society: conveniently, the Irish are placed into one single melting-pot, with no distinction or difference made between Catholicism, Protestantism, or of any of the different groups or classes that were at play in the turmoil that led up to bloody Sunday. Curtis Jr. suggests that the sudden stereotyping of the Irish may have been as a result of politics of a different type – namely, immigration: â€Å"There was nothing specifically Irish about a projecting lower jaw until the 1840s, when thousands of Irish immigrants were pouring into England and Scotland, most of them destitute and many of them diseased.† So, much like modern views and prejudices surrounding asylum seekers, as well as Jews in the 1930s, the right-wing presses also found their target in Victorian times, namely, the Irish. This introduction of class into the issue adds another level of complexity to the issue. Often, the fighting Irishmen are seen crammed together into terrace houses, itself a sign of working-class life and a form of living regarded by the more middle-class newspapers as being inherently intolerable, just as their barbarity was regarded as stupid, brash and ignorant in Victorian issues of Punch. Thus, Curtis Jr., says that â€Å"The antecedents of this stereotype were just as widespread as the conviction in England and Scotland that the Irish were inherently inferior and quite unfit t o manage their own affairs.† Indeed, the superimposition of ideas onto the Irish is in itself exacerbated by the caricaturing of the entirity of the Irish race, essentially robbing them of the individuality of their own voices and subsequently their own autonomy. Punch magazine spearheaded a movement to caricature and derogate the Irish in cartoons: â€Å"it soon became clear that Irishmen, in particular the more politicized among then, were the favourite target of both writers and cartoonists. Marion H. Spielmann, the chronicler of Punch, wrote that the comic weekly acquired a reputation for being anti-Irish during and after the 1850s.† An example of this anti-Irish sentiment can be found in John Leechs â€Å"Young Ireland in Business for Himself† (August 22, 1846), in which a grotesque monster sells blunderbusss next to the sign â€Å"pretty little pistols for pretty little children.† Thus, we are given the preconception that the Irish are violent, stupid and ugly. In John Tenniels â€Å"The Irish Frankenstein†, a sophisticated, British man tries to stave off a giant beast holding a bloodied knife. Thus, the bestial, simian qualities of the caricature emerge. This is especially pointed when the Irishman begins to demand autonomy: â€Å"When Irishman turned to political agitation and began to demand an end to British rule, then Punch changed his tune, and, according to Spielmann, the artists began to picture the Irish political outrage-mongering peasant as a cross between a garrotter and a gorilla.† Thus, perhaps the simionisation of the Irish stereotype is more as a result of the politicisation of the Irish working-class, which presumably the British cartoonist, especially one working for Punch, a deeply conservative publication, would feel threatened by. Thus, we have to also consider notions of class, as well as racial stereotyping: â€Å"The only Celt to be flattered and admired by Punchs cartoonists was Hibernia, the intensely feminine symbol of Ireland, whose haunting beauty conveyed some of the sufferings of the Irish people. In The Fenian-Pest, published in Punch on March 3, 1866, Hibernia turns to her sister, Brittania as a grotesque, derogatory rendition of an Irishman peers at her with animalistic desire. Wallach suggests that: â€Å"Tenniel, depicts the rebellious Irishmen, those troublesome people, as ape-like and unkempt. The main Irish character glares menacingly at Britannia, with his mouth agape and a sword-like weapon partially concealed under his coat. Behind him are other Fenians, chaotically amassed and presumably anxious to make trouble. Here the stereotype of Irishmen as violent, simian and disorganized reveals itself.† Indeed it is interesting the Hibernia, the only character that is celebrated in Punch, or at least not attacked on grounds of racial profiling, is one that is divorced from the traditionally masculine realm of political persuasion. In this particular cartoon, she is seen in the pose of desperately running from the Irish monster, and this traditional of derogation of the Irishman, especially the politicised Irishman, continues throughout history, making a controversial reappearance during the political conflicts of the 1970s. Cummings, who drew cartoons in the 1970s for the Daily Express, uses similar prejudices to generate humour in a situation regarded by the British as increasingly confused. In â€Å"Were pagan missionaries†, Cummings depicts a group of pagans, coming over the sea and saving the Irish from their imminent self-destruction. The caption at the bottom reads: â€Å"Were Pagan missionaries come to try and make peace among the bloodthirsty Christians.† The Irishmen are shown crammed together, on the opposite sides of a terrace block, and details include a lop-sided dustbin, and a sign in the middle of the street, reading: â€Å"Cage: To keep the wild animals apart.† Again we return to the generally held perception of Irishmen as a race of sub-human animals: â€Å"The Cummings cartoon reflects this British incomprehension in its depiction of primitive tribesmen arriving to reconcile the barbarous Irish, who seem intent on tearing each other apart. The racist implication is that black, presumably African, tribesmen are more civilised than the Christian Northern Irish, who have now slipped below even primitive pagans in their innate barbarity.† Thus, Cummings seems to extract his political humour mainly from the use of stereotype and conceptions of otherness. The British army is seen ironically as a pagan tribe, which obviously alludes to the primitive tribes that the Britishers colonised in the past. Therefore, the Irish are depicted as being even more primitive than this. Cummings cartoon ideas are steeped in the long tradition of pompous anti-Irish cartoons and jokes. â€Å"The cartoon [] reinforces stereotypical notions of the Irish as violent and blacks as primitive, and makes no attempt to convey any understanding of the underlying causes of conflict other than religious bigotry.† This is a reflection of a commonly held view about the political situation in Ireland. It seemed baffling to some of the British that two essentially Christian religions should be fighting, and the cartoons by Cummings highlights this innate superiority that the British has by portraying itself as heroes in trying to resolve the Irish conflict. Similarly, Cummings sides again with the British army in â€Å"How Marvellous it would be†, printed in the Daily Express, on 12 August 1970. Cummings naively treats the British influence in Ireland as completely benign. A beaten up solider stands between two monsters, one of which is wearing a t-shirt called â€Å"Ulster Catholics†, the other called â€Å"Ulster Protestants†. They run for each other, as the soldier, more diminutive in presence and, in case we didnt know his nationality, sports a Union Jack on his forehead. Over his head towers a plethora of miscellany – socks, broken bottles and rocks again, the two warring factions are apelike, bestial and violent in nature. The caption underneath reads â€Å"How marvellous it would be if they DID knock each other insensible!†. Thus, the patronising and condescending nature of the cartoon asserts itself more. â€Å"The implication underlying both cartoons is that the irrational nature of the Irish question can only be explained through some form of racial madness.† Indeed, the racial implications, coupled with the inability, or reluctance to try and articulate and represent the complexities of the Irish situation in an easily digestible format, assists in depriving Ireland of a voice – of seeing Ireland and the Irish as a colonised island, once more exacerbating catholic (and protestant – the shifting of parliament to Westminster had the effect of causing offence to both Unionists and building support in working class catholic areas for the I.R.A.) tensions; furthermore adding support to the notion that Britain was indeed an occupying force in Ireland, and that the only means from which the British could be removed from Ireland was through paramilitary force. Cummings later said that the IRAs violence â€Å"make them look like apes – though thats rather hard luck on the apes.† Of course, Cummings views on the IRA, their uses of violence and barbarism would never be particularly popular, but Cummings doesnt even try to consider their opinions, and lowers himself instead to racial stereotyping and bigotry. The cartoon by Cummings is rendered especially naà ¯ve by the events of Bloody Sunday. Of course, this stereotype has been resurrected many times since the 18th century, but, during Victorian times something in particular happened to the representation of the Irishman. According to Douglas, R., et al.: â€Å"The equation between militant Irish nationalism and a savage bestial nature achieved its apogee [] in the Punch cartoons of the Victorian era.† And this bestial nature was resurrected whenever war or conflict required an easily categorised and common enemy. Certainly the most politically controversial cartoon drawn during the Anglo-Irish conflict was â€Å"The Irish† by JAK, for the Evening Standard on 29 October 1982. In it, a bystander is seen looking at an enormous billboard poster. It says: â€Å"Emerald Isle snuff movies present the ultimate in psychopathic horror†, then in enormous letters underneath, â€Å"The Irish†. The image seems designed to both shock and to reinforce the traditional stereotype of the Irish as bestial and bloodthirsty. A horde of Irish stereotypes, bloated and bestial, wielding daggers, drills, dynamite, saws and other crude forms of weaponry all fight in a orgiastic frenzy over a hill of graves. The caption underneath on the poster says: â€Å"Featuring the I.R.A., I.N.L.A., U.D.F., P.F.F., U.D.A., etc. etc.†. Thus, every political group of every political persuasion is placed under the same violent and caricatured image of Irish barbarity. It is apparent that the cartoon would be controversial. â€Å"The Irish, featuring a cast of degenerate nationalist and loyalist paramilitaries, whose initials appear at the bottom of the poster. Not only is there no attempt to explain Irish political complexities or distinguish between different paramilitary groups, the cartoonist irresponsibly homogenises the Irish as a race of psychopathic monsters who delight in violence and bloodshed.† The political reaction to this cartoon had far-reaching implications, and the Evening Standard had advertising money cut from London Council, then headed by Ken Livingstone, if a full apology wasnt issued, which wasnt. It is apparent that the power of the cartoon to shock and to provoke resonates profoundly through political circles, certainly as regards the more overtly racist images of Irish paramilitary groups, that depict an Irish nation that is both stupid, confused, poor and drawn genetically to acts of barbarity and violence. â€Å"One notable feature of some British cartoons about the troubles is their tendency to resurrect the simian stereotype to present a view of republican and loyalist paramilitaries as sub-human psychopaths, a feature which merely served to perpetuate British ignorance and misunderstanding of the complex nature of the conflict.† Indeed, ignorance of the complexities of the political situation in Ireland, indeed, an absolute denial of the British influence and the disruption in Ireland, led to strengthening the anti-Irish fervour, and many cartoonists that used this idea for a cheap joke, may have done unnecessary harm to the establishment of peace among Loyalists, and the Irish in general already racked with anti-British tension. Although the cartoon cannot be justified entirely, it can certainly be contextualised by the political situation at the time the cartoon appeared: â€Å"[The Irish] appeared at a time when paramilitary violence showed no sign of abating and when Anglo-Irish relations were still strained as a result of the southern governments neutral attitude towards Britain during the Falklands war. In July, two IRA bombs in London had killed eight people and injured over fifty others.† Indeed, it is interesting that, when political and social situations are most strained, the simian stereotype re-emerges in cartoons. Overall, the simianisation of the Irish in cartoons has had a long historical legacy that dates back as far as the history of the political cartoon itself. In a situation of conflict, especially considering the supposed lack of knowledge surrounding the Irish situation in the 1970s, many of the cartoons represent this tendency towards returning to the historical stereotype of the Irish as bestial, monstrous sub-human, whose thirst for blood remains intrinsically linked to the racial characteristics of the people. The representation of the British presence in Ireland, especially with the work of Cummings, and JAK, is seen in turns as a fruitless endeavour designed to bring peace to a nation that stubbornly clings to the historical notion of religious difference, or else are innately drawn to barbarity. Although these were not the only cartoons represented at the time, and there were some more sympathetic representations of the Irish situation, that tried to explain in pictures and simple captions the complexity of a political situation in Ireland, this return to the overtly, explicitly racist was definitely a theme in the 1970s cartoons, and served either to reflect the general confusion prevalent at the time concerning the troubles in Ireland, or else exacerbated this confounded hostility towards the Irish in general that certain sections of the British population must have felt. Political Representations of the 1970s Crisis in Ireland The Irish representations of the conflict differ insofar as they offer the viewer of the cartoon a more balanced, albeit anti-British view of the political conflict during the crisis. Gerald Scarfe provides a more sensitive body of work than what was usual in the British press during the time of the political troubles in Ireland. In â€Å"Untitled†, printed in the Sunday Times on 14 March 1971, blood runs into a lake from three graves on a hill, there to represent the deaths of three soldiers, two of which were lured into a pub and killed by the provisional I.R.A., the militant arm of the I.R.A. A crack in the dam pours blood onto a peaceful community, and provides another perspective on the Irish troubles in the 1970s that go beyond that of stereotype, confusion and resentment, instead providing a sympathetic and tender view of the events. Indeed, the representation of the political struggles at the time, in cartoons could be both chillingly regressive, and inspired – of course, the Irish conflict polarised opinion, insofar as the lines could be drawn down difference between the British and the Irish, or else Protestant and Catholic fronts. This tendency to promote one particular view of the events highlights the struggle that cartoonists must have found when trying to find humour beyond the resentment and the anger at both the violence, which some people, especially in Britain, saw as unnecessary, and a particularly

Study on the Determinants of Financial Derivatives

Study on the Determinants of Financial Derivatives Introduction Our research article is Determinants of Financial Derivatives. Before moving towards the definition of main purpose and significance of our research article, we want to give a brief introduction of the core keywords of our research article which are Financial Derivatives. 1.1. Introduction A derivative is a financial instrument (or more simply, an agreement between two people/two parties) that has a value determined by the future price of something else. Derivatives can be thought of as bets on the price of something. Suppose you bet with your friend on the price of a bushel of corn. If the price in one year is less than $3 your friend pays you $1. If the price is more than $3 you pay your friend $1. Thus, the underlying in the agreement is the price of corn and the value of the agreement to you depends on that underlying.[1] So derivatives are the collective name used for a broad class of financial instruments that derive their value from other financial instruments (known as the underlying), events or conditions. Essentially, a derivative is a contract between two parties where the value of the contract is linked to the price of another financial instrument or by a specified event or condition. Derivatives are usually broadly categorized by the: Relationship between the underlying and the derivative (e.g. forward, option, swap) Type of underlying (e.g. equity derivatives, foreign exchange derivatives, interest rate derivatives, commodity derivatives or credit derivatives) Market in which they trade (e.g., exchange traded or over-the-counter) Pay-off profile (Some derivatives have non-linear payoff diagrams due to embedded optionality) Another arbitrary distinction is between: Vanilla derivatives (simple and more common) and Exotic derivatives (more complicated and specialized) There is no definitive rule for distinguishing one from the other, so the distinction is mostly a matter of custom. Derivatives are used by investors to Provide leverage or gearing, such that a small movement in the underlying value can cause a large difference in the value of the derivative Speculate and to make a profit if the value of the underlying asset moves the way they expect (e.g. moves in a given direction, stays in or out of a specified range, reaches a certain level) Hedge or mitigate risk in the underlying, by entering into a derivative contract whose value moves in the opposite direction to their underlying position and cancels part or all of it out Obtain exposure to underlying where it is not possible to trade in the underlying (e.g. weather derivatives) Create optionability where the value of the derivative is linked to a specific condition or event (e.g. the underlying reaching a specific price level) Uses Hedging Hedging is a technique that attempts to reduce risk. In this respect, derivatives can be considered a form of insurance. Derivatives allow risk about the price of the underlying asset to be transferred from one party to another. For example, a wheat farmer and a miller could sign a futures contract to exchange a specified amount of cash for a specified amount of wheat in the future. Both parties have reduced a future risk: for the wheat farmer, the uncertainty of the price, and for the miller, the availability of wheat. However, there is still the risk that no wheat will be available because of events unspecified by the contract, like the weather, or that one party will renege on the contract. Although a third party, called a clearing house, insures a futures contract, not all derivatives are insured against counter-party risk. From another perspective, the farmer and the miller both reduce a risk and acquire a risk when they sign the futures contract: The farmer reduces the risk that the price of wheat will fall below the price specified in the contract and acquires the risk that the price of wheat will rise above the price specified in the contract (thereby losing additional income that he could have earned). The miller, on the other hand, acquires the risk that the price of wheat will fall below the price specified in the contract (thereby paying more in the future than he otherwise would) and reduces the risk that the price of wheat will rise above the price specified in the contract. In this sense, one party is the insurer (risk taker) for one type of risk, and the counter-party is the insurer (risk taker) for another type of risk. Hedging also occurs when an individual or institution buys an asset (like a commodity, a bond that has coupon payments, a stock that pays dividends, and so on) and sells it using a futures contract. The individual or institution has access to the asset for a specified amount of time, and then can sell it in the future at a specified price according to the futures contract. Of course, this allows the individual or institution the benefit of holding the asset while reducing the risk that the future selling price will deviate unexpectedly from the markets current assessment of the future value of the asset. Derivatives traded at the Chicago Board of Trade. Derivatives serve a legitimate business purpose. For example, a corporation borrows a large sum of money at a specific interest rate.[2] The rate of interest on the loan resets every six months. The corporation is concerned that the rate of interest may be much higher in six months. The corporation could buy a forward rate agreement (FRA). A forward rate agreement is a contract to pay a fixed rate of interest six months after purchases on a notional sum of money.[3] If the interest rate after six months is above the contract rate the seller pays the difference to the corporation, or FRA buyer. If the rate is lower the corporation would pay the difference to the seller. The purchase of the FRA would serve to reduce the uncertainty concerning the rate increase and stabilize earnings. Speculation and arbitrage Derivatives can be used to acquire risk, rather than to insure or hedge against risk. Thus, some individuals and institutions will enter into a derivative contract to speculate on the value of the underlying asset, betting that the party seeking insurance will be wrong about the future value of the underlying asset. Speculators will want to be able to buy an asset in the future at a low price according to a derivative contract when the future market price is high, or to sell an asset in the future at a high price according to a derivative contract when the future market price is low. Individuals and institutions may also look for arbitrage opportunities, as when the current buying price of an asset falls below the price specified in a futures contract to sell the asset. Speculative trading in derivatives gained a great deal of notoriety in 1995 when Nick Leeson, a trader at Barings Bank, made poor and unauthorized investments in futures contracts. Through a combination of poor judgment, lack of oversight by the banks management and by regulators, and unfortunate events like the Kobe earthquake, Leeson incurred a $1.3 billion loss that bankrupted the centuries-old institution. Types of derivatives OTC and Exchange-traded Broadly speaking there are two distinct groups of derivative contracts, which are distinguished by the way they are traded in the market: Over-the-counter (OTC) derivatives are contracts that are traded (and privately negotiated) directly between two parties, without going through an exchange or other intermediary. Products such as swaps, forward rate agreements, and exotic options are almost always traded in this way. The OTC derivative market is the largest market for derivatives, and is largely unregulated with respect to disclosure of information between the parties, since the OTC market is made up of banks and other highly sophisticated parties, such as hedge funds. Reporting of OTC amounts are difficult because trades can occur in private, without activity being visible on any exchange. According to the Bank for International Settlements, the total outstanding notional amount is $684 trillion (as of June 2008).[5] Of this total notional amount, 67% are interest rate contracts, 8% are credit default swaps (CDS), 9% are foreign exchange contracts, 2% are commodity contracts, 1% are equity contracts, and 12% are oth er. Because OTC derivatives are not traded on an exchange, there is no central counter-party. Therefore, they are subject to counter-party risk, like an ordinary contract, since each counter-party relies on the other to perform. Exchange-traded derivative contracts (ETD) are those derivatives instruments that are traded via specialized derivatives exchanges or other exchanges. A derivatives exchange is a market where individuals trade standardized contracts that have been defined by the exchange. A derivatives exchange acts as an intermediary to all related transactions, and takes Initial margin from both sides of the trade to act as a guarantee. The worlds largest derivatives exchanges (by number of transactions) are the Korea Exchange (which lists KOSPI Index Futures Options), Eurex (which lists a wide range of European products such as interest rate index products), and CME Group (made up of the 2007 merger of the Chicago Mercantile Exchange and the Chicago Board of Trade and the 2008 acquisition of the New York Mercantile Exchange). According to BIS, the Scombined turnover in the worlds derivatives exchanges totaled USD 344 trillion during Q4 2005. Some types of derivative instruments also may trade on traditional exchanges. For instance, hybrid instruments such as convertible bonds and/or convertible preferred may be listed on stock or bond exchanges. Also, warrants (or rights) may be listed on equity exchanges. Performance Rights, Cash xPRTs and various other instruments that essentially consist of a complex set of options bundled into a simple package are routinely listed on equity exchanges. Like other derivatives, these publicly traded derivatives provide investors access to risk/reward and volatility characteristics that, while related to an underlying commodity, nonetheless are distinctive. Common derivative contract types There are three major classes of derivatives: Futures/Forwards are contracts to buy or sell an asset on or before a future date at a price specified today? A futures contract differs from a forward contract in that the futures contract is a standardized contract written by a clearing house that operates an exchange where the contract can be bought and sold, while a forward contract is a non-standardized contract written by the parties themselves. Options are contracts that give the owner the right, but not the obligation, to buy (in the case of a call option) or sell (in the case of a put option) an asset. The price at which the sale takes place is known as the strike price, and is specified at the time the parties enter into the option. The option contract also specifies a maturity date. In the case of a European option, the owner has the right to require the sale to take place on (but not before) the maturity date; in the case of an American option, the owner can require the sale to take place at any time up to the maturity date. If the owner of the contract exercises this right, the counter-party has the obligation to carry out the transaction. Swaps are contracts to exchange cash (flows) on or before a specified future date based on the underlying value of currencies/exchange rates, bonds/interest rates, commodities, stocks or other assets. More complex derivatives can be created by combining the elements of these basic types. For example, the holder of a swaption has the right, but not the obligation, to enter into a swap on or before a specified future date. 1.2. PROBLEM STATEMENT: The problem statement on which we are doing research is as follows: What are the Determinants that define the activities towards Financial Derivatives? 1.3. OBJECTIVE OF THE STUDY: The main objective of our research is that which one of this independent variable like Risk, Yield Spread etc affects the financial derivatives the most or which one of the following indicates the most involvement in financial derivative. 1.4. Limitations:- There are few limitations which are as under. The data which we are considering is only from Islamabad stock exchange. Out of numerous variables we have selected only four. 1.5. Plan:- Rest of the thesis is organized as fallows. In chapter II we have produced a literature review. In chapter III Data is collected and statistical tools are applied. In chapter IV the results are interpreted. In chapter V conclusions and recommendations are given. Chapter II Literature Review Credit derivatives and risk aversion in this article author discuss the valuation of credit derivatives in extreme regimes such as when the time-to-maturity is short, or when payoff is contingent upon a large number of defaults, as with senior trenches of collateralized debt obligations. In these cases, risk aversion may play an important role, especially when there is little liquidity, and utility-indifference valuation may apply. Specifically, we analyze how short-term yield spreads from default able bonds in a structural model may be raised due to investor risk aversion. Using derivatives to manage risk this Refers to some well-publicized failures with derivatives, and seeks explanations for these problems; points to the role of the US treasury department as a profit centre, and presents a three-phase risk management framework for the successful use of derivatives risk identification/determination of the desired risk profile, implementation (to include factors such as the role of the board in the co-ordination of resources), evaluation/feedback. Shows how three celebrated cases of derivatives fiasco failed in respect of various aspects of this framework (these being Gibson Greetings, Procter Gamble and Metallgesellschaft AG). Petersen and Thiagarajan (2000) Estimates and compares the risk exposure of two firms operating in the gold mining industry. Suggests that the difference between the two firms lies in the risks that they choose to manage and the tools that they use. It presents an extensive analysis of the building blocks underlying the effects of risk management including operating cash flows, taxable income, investment opportunities and equity risk exposure. Shows how one uses adjustments to the quality of ore extracted as a partial hedge against gold price fluctuations, whilst the other uses derivatives to reduce the fluctuations in its revenues and therefore operating cash flows. Comments on the incentives for risk reduction and their effect on the management of gold price risk, noting that compensation strategies can lead to differing managerial objectives. Argues that the use of alternative forms of risk management is a conscious choice by firms and that the use of derivatives should be seen ag ainst the alternative tools available. Alister and Mansfield (1980) states that Derivatives have been an expanding and controversial feature of the financial markets since the late 1980s. They are used by a wide range of manufacturers and investors to manage risk. This paper analyses the role and potential of financial derivatives investment property portfolio management. The limitations and problems of direct investment in commercial property are briefly discussed and the main principles and types of derivatives are analysed and explained. The potential of financial derivatives to mitigate many of the problems associated with direct property investment is examined. The management of foreign currency risk: derivatives use and the natural hedge of geographic diversification Summer 1999 Notes the lack of evidence of large companies use of foreign exchange derivatives (FXDs), related to the geographical diversification natural hedge, an alternative method of avoiding risk. Builds a model of company behavior, sampling 309 US companies by industry, including FXD, foreign sales, a sales-based Herfindahl index, and market value. Finds a significant and positive relationship between the use of FXDs and the level of foreign exchange exposure; and a negative relationship between geographic dispersion and FXD. Shows that there are economies of scale in FXD use, and that the findings are robust to industry membership and geographic diversification. Emory presents evidence consistent with managers using derivatives and discretionary accruals as partial substitutes for smoothing earnings. Using 1994-1996 data for a sample of Fortune5 00 firms, I estimate a set of simultaneous equations that captures managers incentives to maintain a desired level of earnings volatility through hedging and accrual management. These incentives include increasing managerial compensation and wealth, reducing corporate income taxes and debt financing costs, avoiding underinvestment and earnings surprises, and mitigating volatility caused by low diversification. After controlling for such incentives, I find a significant negative association between derivatives notional amounts and proxies for the magnitude of discretionary accruals. Gay and Nam analyzed the underinvestment problem as a determinant of corporate hedging policy. We find evidence of a positive relation between a firms derivatives use and its growth opportunities, as proxied by several alternative measures. For firms with enhanced investment opportunities, derivatives use is greater when they also have relatively low cash stocks. Firms whose investment expenditures are positively correlated with internal cash flows tend to have smaller derivatives positions, which suggest potential natural hedges. Our findings support the argument that firms derivatives use may partly be driven by the need to avoid potential underinvestment problems. Patil (2008) states that the Reserve Bank of Indias Working Group on Rupee Derivatives has, interalia, recommended introduction of exchange traded derivatives to supplement OTC derivatives. But before we introduce exchange traded interest rates futures it is necessary to be fully aware of the ground realities. The basic issue is the healthy development of the market and abolition of the regulations that artificially protect the interests of a set of intermediaries whose role and functions have got significantly reduced with massive induction of IT applications into the capital and financial markets. Regulatory reforms should facilitate continuous reduction in transaction costs and up gradation of transactional efficiency across different segments of the market. A regulatory regime that ends up protecting the role of certain players merely because they played a useful role in the past in the development of some segments of the markets would be doing a disservice Hentschel and Kothari makes Public discussion about corporate use of derivatives focuses on whether firms use derivatives to reduce or increase firm risk. In contrast, empirical academic studies of corporate derivatives use take it for granted that firms hedge with derivatives. Using data from financial statements of 425 large U.S. corporations, we investigate whether firms systematically reduce or increase their riskiness with derivatives. We find that many firms manage their exposures with large derivatives positions. Nonetheless, compared to firms that do not use financial derivatives, firms that use derivatives display few, if any, measurable differences in risk that are associated with the use of derivatives. Brinson, Randolph Hood and Beebower (1986), states that in order to delineate investment responsibility and measure performance contribution, pension plan sponsors and investment managers need a clear and relevant method of attributing returns to those activities that compose the investment management process- investment policy, market timing and security selection. The authors provide a simple framework based on a passive, benchmark portfolio representing the plans long-term asset classes, weighted by their long-term allocations. Returns on this investment policy portfolio are compared with the actual returns resulting from the combination of investment policy plus market timing (over or underweighting asset classes relative to the plan benchmark) and security selection (active selection within an asset class). Data from 91 large U.S. pension plans over the 1974-83 period indicate that investment policy dominates investment strategy (market timing and security selection), explaining on average 93.6 per cent of the variation in total plan return. The actual mean average total return on the portfolio over the period was 9.01 per cent, versus 10.11 per cent for the benchmark portfolio. Active management cost the average plan 1.10 per cent per year, although its effects on individual plans varied greatly, adding as much as 3.69 per cent per year. Although investment strategy can result in significant returns, these are dwarfed by the return contribution from investment policy-the selection of asset classes and their normal weights. Markides (1995) concluded that there is increasing evidence (especially in the business press) that over the past decade, many U.S. corporations have restructured. For example, Lewis (1990: 43) estimates that nearly half of large U.S. corporations have restructured in the 1980s. Similarly, a special report on corporate restructuring published in the Wall Street Journal (1985: 1) found that out of the 850 of North Americas largest corporations, 398 (47%) of them restructured. A major problem with many of these studies on restructuring is that they do not define exactly what is meant by restructuring. Corporate actions such as share repurchasing, refocusing, alliances, consolidations and leveraged recapitalizations can all fall under the general term restructuring; therefore, a researcher needs to look at these forms of restructuring separately if any generalizations are to be made. In this study, we focus on one specific type of restructuring, namely corporate refocusing. By this we m ean the voluntary or involuntary reduction in the diversification of U.S. firms-usually, but not necessarily, achieved through major divestitures-what Bhagat, Shleifer, and Vishny (1990) call the return to corporate specialization. We focus on this type of restructuring because according to the existing evidence it is by far the most common and most beneficial form of restructuring undertaken by firms (e.g., Lewis, 1990; Wall Street Journal, 1985). According to existing evidence, a significant proportion of major diversified firms in the U.S. have reduced their diversification in the 1980s by refocusing on their core businesses (for statistical evidence, see Lichtenberg, 1990; Mark- ides, 1990; Porter, 1987; Williams, Paez and Sanders, 1988). For example, Markides (1993) reported that at least 20 percent and as many as 50 percent of the Fortune 500 firms refocused in the period 1981-87. He also found that refocusing is a 1980s phenomenon: using the Rumelt (1974) strategic categories of diversification, he reported that whereas only 1 percent of the Fortune 500 firms were refocusing in the 1960s, more than 20 percent were doing so in the 1980s. Other studies have shown that these refocusing firms are characteriz ed by high diversification and poor profitability relative to their industry counter- parts, and that refocusing is associated ex-ante with improved stockmarket value (e.g., Comment and Jarrell, 1991; Markides, 1992a,b; Montgom- ery and Wilson, 1986). Yet, as Shleifer and Vishny (1991: 54) argue, there is very little ex- post evidence that refocusing is associated with profitability improvements. Doukas and Lang In this study they present evidence that geographic diversification increases shareholder value and improves long-term performance when firms engage in core-related foreign direct (greenfield) investments. Non-core-related foreign investments are found to be associated with both short-term and long-term losses. Our results suggest that the synergy gains stemming from the internalization of markets are rooted in the core business of the firm. Geographic diversification outside the core business of the firm bears strongly against the prediction of the internalization hypothesis. The analysis also shows that, regardless of the industrial structure of the firm (that is, number of segments), foreign direct investments outside the core business of the firm are associated with a loss in shareholder value, whereas core-related (focused) foreign direct investments are found to be value increasing. Unrelated international diversification, however, is less harmful for diversifie d (multi- segment) than specialized (single-segment) firms. The larger gains to diversified firms suggest that operational and internal capital market efficiency gains are considerably greater in multi-segment than single-segment firms when both expand their core business overseas. James and Finkelshtain (1965) said the effects of multivariate risk are examined in a model of portfolio choice. The conditions under which portfolio choices are separable from consumption decisions are derived. Unless the appropriate restrictions hold on investors preferences or on the probability distribution of risks, the optimal portfolio is affected by other risks. This requires generalizing the usual measures of risk aversion. With one risky asset, matrix measures of risk aversion are used to generalize the results of Arrow (1965) and Pratt (1964) concerning the effects of risk aversion and wealth on the optimal portfolio. With two risky assets, the choices made by two investors coincide if and only if their generalized risk-aversion measures are identical. Rosss notion of stronger risk aversion is then used to characterize the effect of risk aversion on the level of investment in the riskier asset. Browne (2000) tells us that Active portfolio management is concerned with objectives related to the out performance of the return of a target benchmark portfolio. In this paper, we consider a dynamic active portfolio management problem where the objective is related to the tradeoff between the achievement of performance goals and the risk of a shortfall. Specifically, we consider an objective that relates the probability of achieving a given performance objective to the time it takes to achieve the objective. This allows a new direct quantitative analysis of the risk/return tradeoff, with risk defined directly in terms of probability of shortfall relative to the bench- mark, and return defined in terms of the expected time to reach investment goals relative to the benchmark. The resulting optimal policy is a state-dependent policy that provides new insights. As a special case, our analysis includes the case where the investor wants to minimize the expected time until a given performa nce goal is reached subject to a constraint on the shortfall probability. On the basis of this literature review we have developed the following Theoretical framework. 2.2. THEORATICAL FRAMEWORK: The importance of: Risk_ Response Index Yield Spread_ Response Index Liquidity_ Response Index Geographical Diversification_ Response Index Financial Derivatives (Swap, Option, Future and Forward Contracts) For 2.3 Hypothesis: H0:  µ H1:  µ à ¢Ã¢â‚¬ °Ã‚ ¥ 3.5 If the mean respondent is 3.5 or above it means the factor is important because at the rating scale 1 is for strongly disagree and 5 is for strongly agree. Chapter III Data and Methodology 3.1. NATURE OF STUDY: This study was descriptive in nature and will describe the Risk, Yield spread, Liquidity, Geographical diversification in the term of determinants of Financial Derivatives. The study setting for this study is non-contrived in nature i.e. it was conducted in the normal work place and routine working conditions. 3.2. PRIMARY DATA COLLECTION: Data for this study was collected from the participants of the Islamabad Stock Exchange. These people were working or participating in the stock exchange where the people had knowledge about risk, yield spread, liquidity and geographical diversification. That is why; it was easier for us to conduct our research in Islamabad Stock Exchange to conclude our results that which one of the following factors like risk, yield spread, liquidity, and geographical diversification shows the maximum involvement in the determining of financial derivatives. 3.3. RESPONDENTS OF RESEARCH: Data were collected from 100 participants. Participants were asked to fill the questionnaire which was helpful to lead us towards the result and conclusion of our research. All participants were asked to write down on the questionnaire their gender and age. 3.4. RESEARCH INSTRUMENT: Questionnaire is an efficient data collection mechanism where we know exactly what is required and measures the variables of interest. Questionnaires were made with enough number of questions covering all the related areas. This helped us to conclude our result by measuring the affect of determinants on financial derivatives. Questionnaires were personally handed over to the participants by us. All surveys were completed during working hours. Respondents were guaranteed that their data would remain confidential. Respondents were instructed to indicate their opinions about the questions to rate on a Likert Scale. This scale was designed to examine how strongly respondents agree or disagree with statements on a 5-points scale with the following anchors; 3.5. DATA INTERPRETATION: Statistical tools were used for the interpretation of data. These tools included t-test, correlation and descriptive statistics to find the involvement of independent variables in determining the financial derivatives. In other words, statistical tool of correlation were applied to interpret the relationship between the indexes of independent variables and t-test was used to determine the involvement of independent variable in determining the financial derivatives. The total data was divided into two halves: Participants Below median age (39 and below) Participants above median age (above 39) We have applied sample mean test at  µ=3.5. Chapter IV Findings R1: Risky nature of instrument is not a matter of concern for me. R2: Since high risk means high return therefore I will shift to the risky securities. R3: Would you shift from one stock to another to reduce risk at the cost of return? R4: It is feasible to add a percentage of low risk securities to a portfolio. L1: Is a highly liquid security attractive to an investor L2: The stocks in which you trade are relatively liquid which attracts you towards them. L3: Liquidity reflects the performance of a firm therefore for diversification it is important Y1: Yield spread helps the investor to determine which security would be the better investment. Y2: Change in demand supply of the securities effect the yield spread change therefore I shift towards low yield spread. Y3: The market is forecasting a greater risk of default which implies a slowing economy (narrowing of spreads between bonds of different risk ratings) G1: Geographical diversification increases the potential return on your investment / portfolio. G2: Geographical diversification allows combining a diversification across domestic and foreign securities. In case of G1, H0 is accepted it implies people do not conside