Japanese Smes Going Global: Lessons from “German Mittelstand”

United International Business Schools Executive MBA, Brussels Campus â€Å"International Economics† Japanese SMEs going global: Lessons from â€Å"German Mittelstand† By Pascal Gudorf January 2013 Contents 1. Introduction 2. Japan’s SMEs and overseas business 2. 1 SMEs and their role in the export economy 2. 2 Challenges of starting overseas activities 3. Initiatives for the promotion of overseas business 3. 1 Public support system for globalizing SMEs 3. 2 Export promotion through trade fair participation 3. 3 Foreign direct investment and financial support 3. Human resources development for global activities 4. Conclusion References Figures 2 4 4 6 8 8 10 11 12 13 15 17 1 1. Introduction Japan and Germany share many similar economic characteristics. As the third and fourth largest economies in the world, both boast highly skilled labor forces and are leading manufacturers of industrial goods such as automobiles, machinery, chemicals, electronics and other high- tech products. But while Germany has been on a robust recovery track and relatively unaffected by the financial crisis, Japan’s economy has been suffering from deflation and sluggish domestic demand.Its growth prospects are further subdued because of its shrinking population. Exports have been the main driver of economic growth in recent years. In Germany, small and medium-sized enterprises (SMEs) are highly active in international trade and responsible for a large share of exports. Germany‘s midsized companies, known as ‘Mittelstand’, are the backbone of its economy. As the â€Å"German economy is doing well in comparison with many other countries, this is causing people all around the world to take a particularly keen look atGermany, and especially at the ‘German Mittelstand’ and its longstanding record of high employment and productivity. †, notes the Federal Ministry of Economic and Technology (BMWI, 2012). Coined â€Å"hidden champ ions† by Hermann Simon, the most successful and innovative of them are world-leaders in their field. Although many of them started from humble beginnings and are still family-owned today, they have globalized early on. According to Simon’s research more than 1,000 hidden champions exist in Germany, many more than in all other countries combined including Japan (Simon, 2012).He sees them as the main contributors to Germany’s international competitiveness. Some economists and policy-makers therefore recommend other countries to emulate them as a role model. The success of Germany’s midsized companies or â€Å"hidden champions† has not gone unnoticed. In its latest White Paper on International Economy and Trade, Japan’s Ministry of Economy, Trade and Industry (METI, 2012, p. 503) refers to Germany’s â€Å"excellent small and medium-sized companies† which have pursued a two-pillar strategy of high specialization in their fields of e xpertise combined with global marketing.With sales of up to 4 billion euro, many hidden champions have outgrown the size of a traditional SME. But even among German SMEs with less than 250 employees according to the definition of the European Commission, almost 20% of all companies are engaging in direct exports. In contrast to their German peers, most Japanese SMEs today still remain focused on the domestic market. While their numbers have been growing in recent years, less than 3% of all SMEs with less than 300 employees are export-oriented. The contrast is even more pronounced in the case of 2 oreign direct investment. While in Germany 17% of all SMEs have invested abroad, the percentage among Japanese SMEs is as low as 0. 3% (METI, 2012, p. 503). The smaller their size, the lower the proportion of companies engaged in exports and foreign direct investment. Although small and medium-sized companies dominate Japan’s industrial structure, few of them are involved in internat ional trade. Exports have traditionally been carried out by general trading companies or by large multinational manufacturers, for which SMEs work as subcontractors in vertical supplier networks.But as domestic demand is shrinking, many Japanese SMEs need to look beyond their home turf for business opportunities in new markets. Encouraging SMEs to expand their overseas business therefore is seen as an important step towards revitalizing the Japanese economy. The Japanese government has set up schemes to promote overseas business expansion. In July 2012, it included SMEs as one of the four main pillars in its â€Å"New Growth Strategy† besides healthcare, environment and agriculture. Still, many SMEs seem to lag their German peers in overseas activities. What are the factors that keep Japanese SMEs from going abroad?How can government initiatives effectively address these challenges? And what are their results? Based on company surveys and statistical data of exports and forei gn direct investment, this paper will first look into the recent trend of global activities by small and medium-sized businesses in Japan. It will then compare initiatives for the export and investment promotion of SMEs in both Germany and Japan and try to assess their results. By referring to available data and company surveys, the paper will try to show a positive linkage between overseas activities and job creation at home.It will also argue that government initiatives succeed in supporting a company’s first steps on a foreign market, but that they have to be accompanied by support activities by the parent company in order to secure long-term success. Finally, the paper will highlight fundamental differences in economic structure, management practices and the labor market between Germany and Japan, which need to be addressed in order to facilitate overseas business for Japanese SMEs. 3 2. Japan’s SMEs and overseas business 2. 1 SMEs and their role in the export econ omyOutside of Japan much of its postwar economic success has been credited to automotive and electronic giants such as Toyota, Nissan and Panasonic with their strong export machines and global manufacturing presence. SMEs have often been ignored despite the crucial role they play in the Japanese economy. Companies with less than 300 employees make up 99. 7% of all 4. 2 million companies. They employ 69% of the labor force and create 53% of value-added in the manufacturing sector. The reason for SMEs being so little known is that most of them are domestic companies with little or no international exposure.According to the 2012 White Paper on Small and Medium Enterprises, only 2. 7% of all SMEs in the manufacturing sector are â€Å"export-oriented† (SMEA, 2012). The majority of small businesses remain isolated from international markets and foreign competition. Japan therefore has been described as a â€Å"dual economy† consisting of relatively few large, highly advanced , multinational companies on the one hand and a huge number of traditional, domesticoriented, small businesses on the other. In his 1990 book The Competitive Advantage of Nations, Michael Porter already warned that unless Japan overcame this dualism, its future would be at stake.What he observed, was a lack of competition in sectors apart from machinery, automotive and electronics: â€Å"While domestic rivalry is intense in every industry in which Japan is internationally successful, however, it is all but absent in large sectors of the economy† (Katz, 1996). Porter’s warning statement seems to have fulfilled itself twenty years later, as Japan slides into its third decade of slow or no growth. Sectors such as construction, paper, food and agriculture are still characterized by a lack of international competition. Almost none of these industries have produced successful global players.Nevertheless, there is a rising tendency among small and medium-sized businesses to r each out for global markets. Although still small in number, SMEs with export activities have increased by two thirds from 3,568 to 5,937 between 2002 and 2009 (Figure 1). According to Bank of Japan figures, exports accounted for 4. 4% of SMEs’ sales in 2002, but this had risen to 7. 4% by 2008. Large enterprises saw their exports grow from 23. 7% of sales to 27. 8% over the same period. In sales volumes, SMEs’ exports doubled to 5 trillion yen (43 billion euro) while those for big companies grew a more modest 37% to 71. trillion yen (622 billion euro) (EIU, 2010, p. 14). 4 Foreign direct investment by SMEs is also on the rise: the number of small businesses in the manufacturing sector investing overseas increased from 2,013 to 2,869 between 2001 and 2009 surpassing that of large manufacturers by almost 20% (SMEA, 2012). In JETRO’s annual survey among 2,800 companies engaged overseas, 71% of SMEs responded they planned to actively expand their overseas business, while only 47% intended to expand their domestic operations (JETRO, 2012a, p. ). Comparing with earlier surveys, the proportion of companies looking into business opportunities abroad is one fourth higher than in 2008 showing a steady increase year by year. This recent surge in international activities is due to a number of factors: a shrinking domestic market, the relocation of clients’ manufacturing facilities overseas, the opening up of traditional supplier networks to foreign competition, cheap labor and new business opportunities in emerging markets such as China and Southeast Asia.It is often said that overseas investment will lead to a shift in production, a â€Å"hollowing-out† of the domestic industrial base, and job redundancies at home. Individual company data, however, suggest that the opposite is the case. According to figure 2, parent companies have grown after the beginning of overseas investment (JSBRI, 2012, p. 95). Comparing SMEs with foreign direct investment with those that have not been active in FDI at all, one can clearly show a positive correlation of overseas expansion and job creation at home.SMEs observe other financial and operational benefits of investment in overseas production bases as well, such as an increase in profits, a reduction in cost and a speedier response to requests in their host market (JSBRI, 2012, p. 94). When asked about their regional focus of expansion in the next three years, Japanese companies put China on top of the list in every category from sales operations to production to R&D. Among the firms operating in China, half of them have located their bases in Shanghai.Thailand, Indonesia and India also rank high and are considered as more attractive sales destinations than the USA and other developed markets such as Western Europe (JETRO, 2012a). Regarding industries, production machinery, chemicals, electrical machinery and fabricated metal account for 43% of all exporting companies in the manuf acturing sector. Looking in more detail at different industries, one can observe significant differences in export orientation. While 15% of all chemical manufacturers and 7% of electronics parts and device manufacturers are involved in exports, only 1. % of all textile manufacturers and just 0. 7% of food processing companies export their products (JSBRI, 2012, p. 250). This drastic gap highlights the dualism of globally competitive and non-productive, domestic industries. 5 For small and medium-sized wholesalers with up to 100 employees as well, exporters of machinery, equipment, and chemicals prevail, while those for apparel, agriculture and food remain in the minority (JSBRI, 2012, pp. 71-72). But the Japan External Trade Organization (JETRO, 2012b) observes a rising number of companies in the food and non-manufacturing sectors such as retail, wholesale and services.In the fields of agricultural, forestry and marine products and foodstuff, â€Å"many SMEs, even in the face of e conomic headwinds such as appreciation of the yen, are continuing to make efforts to exploit overseas markets. † Small companies involved in overseas business, however, still are the exception in Japan, even in the relatively productive manufacturing sector. The proportion of companies with export activities decreases by size. According to the â€Å"White Paper on International Economy and Trade 2011†, one out of four manufacturing companies with 401 to 500 employees is involved in exports.For companies with 101 to 200 employees the proportion falls further to one out of eight. And when it comes to companies with 41 to 50 employees, only one out every 20 has export activities (METI, 2011, p. 12). The low number overall, and particularly among smaller companies, is striking when we think of Japan as one of the world’s major trading nations. From the figures above, we can conclude that a major part of the Japanese economy is not taking part in the international div ision of labor and leaving business opportunities untapped.The conspicuously low number hints at underlying obstacles and challenges hindering overseas market expansion. We will look at these in the next section. 2. 2 Challenges of starting overseas activities As shown above, the proportion of Japanese SMEs developing operations overseas is still rather limited and activity tends to be greater in larger companies and in certain industries. In order to succeed in overseas markets, SMEs face certain barriers and have to overcome many challenges.The Survey on the Enhancement of SMEs’ Competitiveness through Overseas Business Expansion commissioned by the SME Agency in November 2011, looked at requirements that have to be met for companies to go abroad. More than 50% of all companies with export activities regarded having customers and a reliable partner as vital requirements for starting to export, underlining the importance placed on securing customers first (JSBRI, 2012, p. 82 ). Comparatively high proportions of enterprises also cited knowledge of local legal systems, business practices and trends in export markets as well as in-house expertise in exports, suggesting the 6 mportance of building knowledge of export markets and export procedures. One third of the respondents considered financial issues such as financial reserves or the prospect of turning a profit as important, but they did regard them as determining factors. In the case of FDI, however, financial reserves were considered as crucial by three quarters of all companies with overseas sales or production bases. 60% cited the knowledge of the host market’s legal system and business practices as important requirement suggesting the need for research and consultation prior to investing overseas.Having customers and reliable partners were also cited by more than half of all respondents. Questioned about challenges and risks, almost 50% of all companies considered the identification and coll ection of information on local market needs as particularly difficult. Marketing in the local market, securing business partners and terms of the local market were also cited to be important issues by more than one third of all respondents, while financing or credit issues only worried 22%. The lack of adequate human resources with international experience is another, if not the most important factor hindering overseas activities.In a 2010 SMEA survey, the â€Å"failure to secure human resources at home† was cited by 37% of all manufacturers as the main reason for giving up plans to invest overseas. It was regarded as more important than finding the right business partner, information collection or financing (METI, 2012, p. 280). JETRO (2012b, p. 15) notes that â€Å"large Japanese corporations are able to secure and foster global human resources through regular fulltime employment of foreign workers, sending young workers still new to their respective fields abroad and cond ucting overseas executive training programs.SMEs, however, find it much harder to take such measures and are hesitant to launch business operations overseas without such personnel. † This statement hints at a deep-rooted dualism in Japan’s labor market. While in Germany small and medium-sized enterprises are regarded as popular employers as they provide 83% of vocational training opportunities and stable, long-term career opportunities (BMWI, 2012, p. 4), Japanese jobseekers have tended to favor the security of employment at large corporations over low-paid jobs at SMEs.Traditionally, new university graduates, especially from top-ranked academic institutions, have a strong preference for jobs in well-known corporations or in government entities. The 2013 ranking of the most popular employers conducted by Rakuten (2012) among more than 6,000 students is topped by Japan’s largest advertising agency Dentsu, general trading company Itochu and the operator of â€Å"T okyo Disney Resort† Oriental Land followed by cosmetics brand Shiseido, TokyoMitsubishi UFJ Bank and All Nippon Airways. Among the 100 top-rated companies, none falls into the category of small and medium-sized enterprises. Attracting experienced and skilled workers remains difficult for SMEs, but, as the Economist Intelligence Unit (EIU, 2010, p. 4) notes, â€Å"tough economic times present an opportunity†. According to its 2010 report, â€Å"the cloud of the recent recession has brought two silver linings for SMEs: new entrants to the workforce are showing more interest in working for small companies, and larger businesses that are reluctant to fire workers can transfer the knowledge of experienced staff through employee loan programs. On a similar note, JETRO (2012b, p. 15) observes that â€Å"there are some SMEs making efforts to expand abroad by independently securing the necessary human resources such as by utilizing foreign students in Japan, former-trainees wh o completed special training courses for foreigners in Japan, Japanese with volunteer work experience overseas, or retirees. † Despite the recent growth in overseas activities, many challenges remain.In the following section, we will look at how these are being addressed by government initiatives. 3. . 3. 1 Initiatives for the promotion of overseas business Public support system for globalizing SMEs In Japan, many public and private institutions provide support functions for SMEs going abroad on a local and international level. On a global scale, JETRO, a government agency under the METI with 73 offices in 55 countries, plays an important role in promoting mutual trade and investment between Japan and the world.Originally established in 1958 to promote Japanese exports abroad, according to its website, â€Å"JETRO's core focus in the 21st century has shifted toward promoting foreign direct investment into Japan and helping small to medium size Japanese firms maximize their gl obal export potential†. On the local level, the Organization for Small & Medium Enterprises and Regional Innovation (SMRJ), established by METI in 2004, supports SMEs through nine regional offices across Japan, with the objective of â€Å"SME development and regional promotion. Although its main activities focus on regional development, it has stepped up its support measures for overseas business development by organizing seminars, establishing a support hotline and publishing a â€Å"Handbook for Supporting Overseas Business Development†. To facilitate assistance to SMEs expanding into overseas markets in a more systematic manner, METI has established the â€Å"Conference on Supporting SMEs in Overseas Business† in October 2010 by bringing together government officials and support institutions, such as JETRO, SME associations and 8 inancial institutions. Reflecting the results of interviews with approximately 5,000 SMEs, five key issues for supporting SMEs in o verseas business were identified: (1) Information ? Providing necessary information reflecting the needs of SMEs in detail ? Offering consistent support to SMEs by sharing support records by the conference members (2) Marketing ? Supporting product development, and participation in overseas trade fairs ? Supporting the effective use of the internet for overseas business (3) Human resources development and securing talent ?Helping to develop human resources for overseas expansion through seminars, training ? Helping to secure competent human resources for overseas expansion through matching (4) Financing ? Enhancing the financial consulting structure ? Facilitating financing for SMEs when doing overseas business (5) Improvement of the trade and investment environment ? Providing information on the establishment of overseas operations ? Assistance regarding tax, labor and intellectual property matters The conference also established concrete action plans for support measures on a glob al and local level.Actions include information gathering and dissemination through the sharing of best practices, overseas business missions, the invitation of international buyers to trade fairs in Japan, virtual marketplaces, advice on legal, technical and financial issues, and exchange programs for international trainees. The conference also planned to hold 2,500 overseas business and investment seminars by the end of fiscal year 2013 or some 700 a year throughout Japan, in cooperation with JETRO and SMRJ and other institutions.Despite the various services on offer, many companies do not make use of them due to bureaucratic procedures or are simply not aware of them. According to research commissioned by SMEA, only 39% of Japanese SMEs that are going overseas have used any globalisation assistance, including government and private-sector support (EIU, 2010, p. 16) For SMEs asking for assistance in their overseas expansion, JETRO is by far the most used contact point. 4% said they used JETRO services as compared to 13% for the chambers of commerce, 11% for banks and 10% for private consulting firms (METI, 2012, p. 280). JETRO provides information on foreign markets through its website and various publications, consulting services and seminars for 9 companies interested in overseas business. Below, we will focus on three fields in particular and try to assess their results. 3. 2 Export promotion through trade fair participation Finding the right business partner and collecting information of overseas markets are two of the challenges cited by many SMEs.Generally, trade fairs have been recognized as highly effective instruments in international market expansion. In recent years, JETRO has stepped up its efforts to promote Japanese companies abroad through trade fairs and trade missions. SMEs, especially firsttime exhibitors who qualify, can participate in these events at favorable conditions. These activities are similar to initiatives by other countries such as the Institute of the German Trade Fair Industry, which supports German companies’ international expansion at 274 exhibitions worldwide.For Japan, no information about the annual number of joint trade fair participations could be obtained, but â€Å"Japan Pavilions† at international trade fairs worldwide bring together more and more Japanese exhibitors, among which many SMEs, under a joint â€Å"Japan† brand. Examples include â€Å"Medica & Compamed† in Dusseldorf, â€Å"Maison et Objet† in Paris and â€Å"Bio International Convention† in Chicago. In order to tap into the demand of emerging nations, JETRO organizes joint pavilions at trade fairs in the BRICS nations, Southeast Asia and the Middle East, such as â€Å"Arab Health† in Dubai and â€Å"Asia Fruit Logistica† in Hong Kong.In November 2012, Japan even had a presence at the Baghdad International Trade Fair with 17 private companies and three governmental institutions. In comparison with other support measures such as seminars or business matching, exhibitors at trade fairs often report concrete results, as trade fairs offer the opportunity to gather the latest market trends, generate sales leads, and to find potential business partners. According to a 2010 survey, 40% of Japanese participants in JETRO-supported trade fairs reported direct results, another 30% said they felt indirect results (METI, 2012, p. 80). Surveys on the effects of â€Å"Japan Pavilions† are not yet available, but it can be assumed that relatively unknown SMEs, which are still newcomers to overseas markets, benefit from a joint presence under the â€Å"Japan† brand instead of exhibiting on their own. However, as countries such as Germany, France, the UK, the USA, China, Taiwan and others are aggressively promoting their own national brands, Japan needs to continue its marketing efforts in order to keep up the public’s recognition. The advanced technolog ical expertise cultivated by Japanese SMEs has often been well-recognized.New labels such as â€Å"Japan Style† for design products or â€Å"Cool Japan† for exporting its creative culture such as anime and manga will help to open up new sales channels for consumer goods as well. 10 3. 3 Foreign direct investment and financial support When companies set out to explore overseas business development, they find in many cases inadequate information regarding investment climates in foreign countries, and what funding is available to their ventures. Surveys cited above suggest that financial reserves are regarded as the number one requirement for overseas investment.In its â€Å"New Growth Strategy†, the government acknowledges that supporting underfunded SMEs which have proven resources and technologies through a new supporting system is a pressing issue. It refers to the SME financing act expiring in March 2013 and which, if not extended, threatens many ailing SMEs. The government also encourages a change of practice from a collateral and guaranteebased lending to business-based lending in order to diversify fund raising programs for SMEs. For companies with overseas investment plans, however, advisory and funding are readily available.Research into the financial institutions servicing SMEs, shows that Japan’s support infrastructure for overseas ventures is well developed. For instance, SMEs can apply for low-interest financing under the government’s fiscal and loan program through three government financial institutions: the National Life Finance Corporation, Japan Finance Corporation for Small Business, and the Shoko Chukin Bank. Furthermore, the Japan Bank for International Cooperation (JBIC) supports overseas business development not only for large corporations but for SMEs as well.According to a recent report by Nikkei (Nikkei Net Interactive, January 7, 2012), the government has decided to inject 70 billion yen into a new fu nd managed by JBIC that will support overseas investment and M by large Japanese companies and SMEs. JBIC’s â€Å"Advisory and Consulting Office† for SMEs (ACOSME) supports overseas business expansion of Japanese SMEs by providing the latest information on local conditions and the investment climate in individual countries. The ACOSME also offers consulting services for obtaining long-term financing.Its website (www. jbic. go. jp) introduces the case study of auto parts manufacturer Aikitec from Nagoya, which successfully built production facilities in Indonesia and China by using JBIC’s financial support. ACOSME also publishes investment guides for major ASEAN countries, and reports on the investment climate in China and Central and East European countries. In addition to responding to SME inquiries individually, ACOSME also sends speakers to meetings held in many Japanese cities for disseminating information on the foreign investment climate. 1 Looking at the companies which have successfully invested abroad, one might be surprised that 5,630 or 70% of the 7,977 enterprises in total with overseas subsidiaries in 2009 were SMEs (JSBRI, 2012, pp. 75-76). More and more automotive or electronics suppliers have set up manufacturing facilities in China, India and Southeast Asian countries. These successful cases, although still limited in relation to the huge potential, show that funding issues can be overcome.When it comes to financing, a 2009 Survey on SMEs’ International Business Expansion by the Shoko Chukin Bank and Shoko Research Institute shows that the parent company plays a crucial role in the relation with its overseas bases. â€Å"In order to make FDI more effective, close collaboration between a parent company and its overseas subsidiaries is crucial†, notes the Japan Small Business Research Institute (JSBRI, 2012, p. 96) in its SME White Paper. In the non-manufacturing sector, financing is regarded as the most import ant issue.Besides financing, common forms of support provided by parent companies in Japan to overseas subsidiaries include assistance with the launch of new products or services and technical supervision by permanent or visiting staff. 3. 4 Human resources development for global activities With the growing importance of overseas markets, SMEs expanding into other countries have to adapt to various local environments. As we have seen above, these SMEs, however, often lack the necessary global human resources.JETRO has identified three core competencies required of global human resources, in addition to foreign language abilities: 1) the ability to take decisive action, 2) the ability to effectively convey oneself, and 3) the ability to succeed in a multicultural environment (JETRO, 2012b, p. 15). Public and private institutions have set up several programs to facilitate the â€Å"securing and fostering global human resources†. The â€Å"METI Global Internship Program† implemented by the Overseas Human Resources and Industry Development Association (HIDA) is targeting young business people.It screens and selects 50 to 100 applicants per year for three to six months long internships in government agencies or Japanese subsidiaries in developing countries. According to a METI press release, the program’s purpose is â€Å"to develop global human resources which will play an active part in dramatically-expanding markets in rising countries, acquiring infrastructure business, promoting small- and medium-sized enterprises' global expansion and other actions†.Other initiatives such as the â€Å"Career Development Program for Foreign Students in Japan† tapped into the potential of â€Å"excellent students from Asia† at Japanese universities. Divided into nine 12 regional chapters, the program, which ran from 2009 to 2012, placed foreign trainees in companies throughout Japan in order to support local businesses. In the Osaka (Ki nki) area, its goal was to attract â€Å"human resources who can bridge Kinki with Asia in business and who can play a central role in the company's expansion of its business overseas, in the advancement of economic globalization†.Although large corporations such as Panasonic, Daikin, Omron or Murata were among the participating companies, the program aimed at â€Å"human resources who can play a key role in the enhancement of technologies and management innovations in medium and small-sized enterprises accounting for large part of companies in Kinki, particularly in manufacturing companies†. According to its Japanese website (www. ajinzai-sc. jp), several trainees decided to join local SMEs in the Kinki area. It brought about some change in the participating companies as well.Companies, which used to be hesitant to take in foreign students at the beginning, started to open up and take in trainees year after year. Although the program brought about some tangible result s, it was discontinued after four years at the end of 2012. Programs like these facilitate personal exchange and daily interaction between Japanese staff and foreign employees, but in many companies, especially SMEs, it is still very limited. In order to prepare for their ambitious globalization goals, some companies have taken drastic steps: Two f Japan’s fastest growing corporations, apparel brand Uniqlo and online shopping company Rakuten, have changed their official language to English. Others have started recruiting foreign students, train them and send them overseas. Foreign employees in SMEs, however, remain an exception and in many small companies English skills are still limited. For years, Japanese companies have focused their efforts on manufacturing excellent products and developing innovative technologies. Their international marketing efforts, however, have not followed the same world-class standards due to a lack of ideas and experience.For SMEs to develop busi ness closely involved with global markets, JETRO (2012b, p. 15) concludes, â€Å"they should focus their energy on ‘hito-zukuri (building people)’ in addition to ‘mono-zukuri (manufacturing products)’. † 4. . Conclusion In the course of the past decade, Japan’s small and medium enterprises have made significant progress in their international activities. More and more SMEs tap into business opportunities in overseas markets, especially in fast growing regions such as China and other emerging markets. In international comparison, however, Japan’s SMEs still remain laggards in terms of export orientation 13 nd foreign direct investment. As companies from Germany or other countries are expanding at an even higher pace, Japan’s SMEs risk to fall behind. SMEs that plan to expand overseas report many challenges and uncertainties, which the public support system tries to address. Barriers to entry have been lowered as assistance becomes readily available. Currently the Japanese government offers assistance to SMEs via several channels, including JETRO, SMRJ and the Japan Chambers of Commerce as well as through funding assistance for some overseas operations, for instance via loans by the Japan Bank for International Cooperation.Yet, as the Economist Intelligence Unit has pointed out, â€Å"lack of awareness and complicated application procedures hinder the take-up of such programs. † (EIU, 2010, p. 16). Despite all efforts, the number of SMEs involved in overseas activities remains strikingly low. This globalization gap cannot be explained by barriers to overseas expansion alone, as larger Japanese corporations or companies from other countries face similar challenges. They rather hint at much more fundamental issues, such as a lack of management resources and personnel with language skills and international experience.Internship programs, seminars and other initiatives address the issue of fostering  "global human resources†. But with a few dozen or even several hundred participants a year these initiatives are nothing more than a drop in the ocean. Most SMEs still lack a global mindset. In order to prepare hundreds or thousands of SMEs for their globalization efforts, a nation-wide effort in English education and intercultural training would be needed. Government programs cannot address all the problems small companies have in recruiting welleducated personnel.It is up to the SMEs to be creative and improve their image in order to attract better local and international talent. By focusing on their core strengths of quality, technology, and innovation, Japan’s SMEs need to create a brand reputation that will make them employers of choice for highly skilled workers and lift their image overseas. Germany’s â€Å"Mittelstand† can serve them as a benchmark. The dualism in Japan’s economy, which Michael Porter observed more than twenty years ago, has not been overcome.It seems to have become even more entrenched as large manufacturers relocate their production overseas and many SMEs are left behind. If Japan wants to keep its competitive edge, it has to help more small and medium-sized companies jump on the bandwagon of globalization. Should it fail, its economy risks to stray even further off course. 14 References Abbreviations: BMWI Bundesministerium fur Wirtschaft und Technologie / Federal Ministry of Economics and Technology EIU Economist Intelligence Unit JETRO Japan External Trade Organization JSBRI METI Japan Small Business Research Institute Ministry of Economy, Trade and IndustrySMEA Small Medium Enterprise Agency Bibliographical Sources: BMWI (2012), German Mittelstand: Engine of the German Economy: Facts and figures about small and medium-sized German firms, (www. bmwi. de). EIU (2010), SMEs in Japan: A new growth driver? , (www. managementthinking. eiu. com). JETRO (2012a), FY2011 Survey on the International Operati ons of Japanese Firms: JETRO Overseas Business Survey (www. jetro. go. jp). JETRO (2012b), Global Trade and Investment Report 2012: Companies and People Move Forward Toward Globalization – Overview (www. jetro. go. jp).JSBRI (2012), 2012 White Paper on Small and Medium Enterprises in Japan: Small and Medium Enterprises Moving Forward through Adversity (http://www. chusho. meti. go. jp/). Katz, Richard (1996), Japan: The System that Soured: The Rise and Fall of the Japanese Economic Miracle, M. E. Sharpe 1996. METI (2011), White Paper on International Economy and Trade 2011 Summary. Overcoming the earthquake disaster, and restoring and strengthening global economic networks (www. meti. go. jp). METI (2012), White Paper on International Economy and Trade 2012: Extending the Frontiers of Growth through global linkages (www. eti. go. jp). 15 Rakuten (2012), 2013-nendo-sotsu: Shinsotsu shukatsu ninki kigyo rankingu (Ranking of most popular companies for new graduates 2013), (http: //www. nikki. ne. jp/event/20120210/). Simon, Hermann (2012), Hidden Champions: Aufbruch nach Globalia: Die Erfolgsstrategien unbekannter Weltmarktfuhrer, Campus. SMEA (2012), Key Points of the 2012 White Paper on Small and Medium Enterprises in Japan (www. chusho. meti. go. jp/). 16 Figure 1: Export-orientation of Japanese SMEs 7000 6000 5000 4000 3000 01 02 03 04 05 06 07 08 09 Number of export-orientedSMEs Percentage among overall SMEs 4 3,5 3 2 1,5 1 0,5 Source: SMEA (2012), Key Points of the 2012 White Paper on Small and Medium Enterprises in Japan, p. 2 Figure 2: Number of workers in Japan at SMEs starting FDI in fiscal year 2002 (= Index 100) 114 112 110 108 106 104 102 100 98 96 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 Enterprises that started FDI in fiscal 2002 and continued through fiscal 2009 (n=53) Enterprises that did not engage in FDI at all between fiscal 1995 and 2009 (n=5103) Source: JSBRI (2012), White Paper on Small and Medium Enterprises in Japan, p. 95 17 in % 2,5

The death of life and the end of the world

In the span of twelve years, the Macedonian king Alexander the Great conquered a vast empire stretching from Greece to modern day Pakistan, consuming the great Persian empire and absorbing many smaller kingdoms in the process. Alexander was a headstrong, violent, extremely brave, politically cunning, and gifted leader who was loved by his men. Very few individuals throughout history have affected the world to such an extent as he. This essay will examine the effects of Alexander the Great's campaigns and explain why they were so influential in shaping western world.The ffects of these campaigns that will be examined are his unification of western civilization and how they changed western culture, his making Greek the common language throughout his empire and the effects of this, and his legacy as a political and military leader and how they have influenced people throughout history. To begin with we will examine the effects of what is considered Alexander's Greatest accomplishment, t he conquest and unification of the western half of the European continent.By conquering and replacing quarrelsome kingdoms with more amicable leaders, Alexander was able to exact an era of peace across his empire. Instead of imposing his own ideas of truth, religion, or behavior upon those he conquered, as long as they willingly kept the supply lines open to feed and equip his troop, he let them practice their native beliefs. This is important because it placated the conquered people, preventing revolt as well as allow for the relatively peaceful flow of culture and philosophy throughout the western continent.Greek however had the strongest influence during this period because of Alexander's conquest. His empire, at it's height, which spanned from Greece to modern day Pakistan, was conquered hrough a series of campaigns directly led by himself. Not once was he defeated by an enemy general in his campaigns. The most notable of these was the one against the Persian empire. It is estim ated that 50 million people, or approximately 40% of the world's population, lived in the persian empire at this time.The Persian army was considered the most powerful the world had ever seen. Had Alexander been defeated at the battle of Issus, Granicus or any number of other critical battles during this campaign, it is possible that the Persian thought rather than the Athenian thought would have contributed to western philosophy. Instead, his conquest of Persia and a number of smaller kingdoms allowed for the diffusion of cultures throughout his empire after his death. This diffusion came to be known as the Hellenistic Age, which literally means the dissemination of greek culture.That is because this period was the pinnacle of Greek influence in the ancient world; it was an age where Greeks, Persians and Asiatic cultures became intertwined. This cultural diffusion was so impactful that, even when the Romans came to power centuries later, they still felt the influence of this period . One example can be seen in Roman Greek god's. This is because as time passed, The Roman's adopted the Greek god's, absorbing them into their own pantheons. Another example is the influence of Greek art. Portraits became more realistic, and the use of Greek style portraits continued on into the Parthian period.In essence Alexander's conquests led to the deep rooting of Greek influence throughout western history. His policies and methods allowed for the diffusion of cultures that can still be felt today. For a time, for better or worse, the Western world became a single place. It was united by a common culture and anguage that left its mark on literature, language, and politics. Another influence that was a direct result of Alexander The Great's conquest was the diffusion of the Greek language across the continent. As the greek culture diffused throughout the empire so did its language.This allowed Greek to become the â€Å"lingua franca†, or unifying language, of the empire. This is important because it allowed for a vast number of different cultures and people to communicate and understand one another. One effect was the transcribing of various texts into different languages. For example n places like Alexandria, where Jews had stopped speaking Hebrew and had adopted greek as their native language due to Hellinization, Greek translations of the bible appeared. This allowed Jewish theology, the basis of Christianity, to be readily available throughout the empire and to the world.This simple occurrence helped spread the idea of monotheism throughout the world, which had been unheard of until this time. Directly or indirectly, intentionally or unintentionally, Alexander's life provided the catalytic changes which resulted in the end of paganism and the rise of Christianity and Islam. One culture – stopped persian expansion Had Alexander failed at Issus, Granicus, or any number of other critical battles, it is entirely possible that Persians rather than Athenians would have dictated Western thought.Moreover, until his premature death – set up stage for rome The Hellenistic age – which literally means the dissemination of Greek culture although it was in fact a fusion of Greco-Asian cultures – lasted until the final years of the Roman Republic. Nevertheless, the influence of Hellenism on the Romans continued because the Greek gods had over time been absorbed into the Roman pantheon. This lasted until the accession of Roman Emperor Constantine l, who ruled rom AD 306 to 337 and adopted Christianity as the official imperial religion for reasons of political expediency.Though he had conquered Egypt, Alexander was not interested in imposing his own ideas of truth, religion, or behavior upon the people as long as they willingly kept the supply lines open to feed and equip his troops (an important aspect of his ability to rule vast areas which was to be neglected by his successors). *his troops married Persian w omen to help create one culture allowed for the diffusion of greek andpersion culture. The western world, for better and for worse, became almost a single place, united by common culture that left its mark on language, literature, and politics.Hellinistic period This period was the pinnacle of Greek influence in the ancient world; the Hellenistic period was the time after Alexander's death when Greeks, Persians and Alexander attempted to merge elements of the Greek and Persian cultures together, â€Å"notably that ofproskynesis, a symbolic kissing of the hand that Persians paid to their social superiors, but a practice of which the Greeks disapproved† In addition he recruited the local peoples into his army, something which created hostility from the Greek and Macedonian soldiers.Greek the lingua franca He had a huge impact on world history spreading the seeds of western culture and philosophy across the world and has legends and stories about him in over 80 languages. The in fluence on other cultures in the effected areas was profound. In the period after Alexander's death Judea was annexed by the Ptolemy dynasty, as a result there were Greek government officials and merchants in every Judean village while the region was surrounded by Greek cities. This started to ‘Hellenize' the Jews, although not to the degree of other peoples.In addition to the previous many Jews were Dispersed' as in the Hellenistic Kings moved Jewish families across their empires, sometimes by force. Syria had the largest Jewish population caused by emigrants fleeing the crisis-ridden region, with many also moving to the Tigris river cities, Egypt and into Asia Minor. Many eventually took up Greek clothing and learning to speak and write in Greek, even adopting a Greek name (Alexander being popular) in addition to their Hebrew name.This situation continued to the point that many Jews no longer spoke Hebrew, so the â€Å"Jews of Alexandria had begun the translate their own wr itings into Greek. Most important of all was the Greek translation of the Bible†. The Hellenistic world even had an influence on the spread of Christianity. Saint Paul (ACE 64) was a Jew from the Hellenized city of Tarsus who spoke and wrote in Greek, who upon his conversion to Christianity adopted some Hellenistic elements to the message, making it more palatable to the Greeks and other gentiles.Greek became the lingua franca that allowed mass communication and exchange of ideas. It was in Alexander's city of Alexandria By Egypt on the offshore island of Pharos, that the first translation of the old testament was made from Hebrew to Greek. Although this translation called, The Septuagint, was made for Jews who had so long resided in foreign land that they could no longer read Hebrew, it made Jewish theology, the basis of Christianity, at once available to the entire world and promulgated the idea of monotheism which had been on the fringe of Greek philosophy since Anaxagoras in the 5th century BCE.Directly or indirectly, intentionally or unintentionally his life was the catalyst which provided the changes which resulted in the end of paganism showed power o f unifying ruler/legacy Moreover, until his premature death, Alexander held in his hands a power than no an, before or since, has known: the power to bring peace and stability to the known world, uniting it under one banner. This notion traveled forward through time, from Greeks to Romans, and from Romans to Europeans.His lessons of organization, acceptance, and political integration have informed the decisions of countless leaders since, His lessons of organization, acceptance, and political integration have informed the decisions of countless leaders since, and, most notably, his image has carried forward through time to become one of the most memorable fgures in history: – d say that Alexander had a part to play in Rome becoming an empire. GJC worshiped Alexander that he even visited his st atue.I can definitely see GJC power hunger coming from the accomplishments of Alexander. Lead from the Front: Alexander was admired by his troops. He rode and walked in front of them; he didn't ride behind them in a golden carriage. He ate the same rations and drank the same amount of water that his troops had. Alexander knew exactly how far and how fast his army could march, and he knew their physical and emotional state before battle. Set up the archetype of heroic ruler charging into battle.

Expert systems Essay Example | Topics and Well Written Essays - 2250 words

Expert systems - Essay Example Data on an organization's external operating environment, as well as internal operational information, is included and an interactive interface allows managers to retrieve and manipulate data. Modeling techniques are used to examine the results of alternative courses of action† (Decision Support System. 2007). Later on, DSS contributed to several domains, one of them is the healthcare sector. The Armed Forces Longitudinal Technology Application (AHLTA) is an internationally recognized medical and dental information management system that provides a safe and secure online accessibility to the military health systems (MHS) reports of beneficiary. Medical clinicians, who are deployed in various medical treatment facilities worldwide, access the system (DHIMS, 2011). They are provisioned with complete and appropriate health data in order to take informed decisions regardless of location and time. Moreover, AHLTA also facilitates central storage of electronic health records (EHR) da ta used to retrieve patients overall history of injuries and diseases (, JMIS). Expert Systems provide aid to the organization at the strategic level, as it takes input from internal and external aggregated data. Likewise, processing is carried out via graphics, simulations and outputs are transmitted via projectors and response to different queries. Expert systems are accessible to senior management that strategically oversees improvements in organizational processes to achieve business goals. AHLTA Functionality The information flow and sharing of information on various levels of the AHLTA system are illustrated below (How data travels through AHLTA, n.d): The flow of information does not cover all aspects of the system and only prioritize on nontechnical aspects. As there are four primary components of the system including: Client Workstations: The workstations that will be used by the clinical staff Local Cache Database: The local cache database stores all the retrieved informat ion, in order to provide information much faster as compared to a normal request of patient information from the system. Clinical Data Repository: The clinical data repository hosts the primary database and includes all the patient and clinical data connected to all the military treatment facilities worldwide. CHCS: Composite Health Care System is a legacy system that is performing the task of maintaining information and information retrieval related to results, appointments and vice versa. Moreover, the AHLTA system operates on two modes i.e. the normal mode and the Failover mode. The normal mode provides provision of all the available information related to patient’s history. The CHCS retrieves and demonstrates demographics, appointment information and results from the clinical data repository that displays all the information to the computer of the client (, How Data Travels through AHLTA, n.d). The fail over mode also operates on the same four components excluding the cli nical database repository. In this scenario, the clinical team can have access to document encounters related to patients. Nevertheless, they cannot access the complete record of the patients and historical records i.e. they cannot access CDR. If CDR is not accessible, CHCS sends all the information related to patient appointments, demographics along with all the relevant

Current and Fixed Assets Essay Example | Topics and Well Written Essays - 750 words

Current and Fixed Assets - Essay Example The exchanging over or turning over of this assets is usually done during the normal business environment. These assets include cash and cash in-equivalents which re the liquid assets. These include currency, deposit accounts and negotiable instruments like money orders and bank drafts. There are also short term investments which include trading securities. Other items are receivable assets, inventory and prepaid expenses (Ingram & Albright, 2006.pp.298). Fixed assets are generally termed as PPE to mean property plant, and equipment. These assets are purchased mainly for long term use. They are used in earning the business profits. These may include land, buildings, machinery, tools, and furniture. They are usually written off against profits in the balance sheet. In management accounting fixed assets are also called capital assets. These assets are attached with monetary value and not the liquid cash like in current assets (Bott, 2005.pp.165). Discussion In a balance sheet there are usually decreases and increases in the assets of the company, both fixed assets and current assets. in the balance sheet an increase in the fixed and current assets is usually debited while a decrease in the two is usually credited. If the asset is capital plus liability then debits are the same as the credits. For double entry to be reflected in the accounts every debit must have a corresponding credit entry. The assets are usually different from liabilities and they take different sides in the balance sheet. To balance an account will simply mean to obtain the difference between the totals of the two sides of an account. If the details of the on the debit side is higher than of the credit side the balance is said to be a debit balance. If the totals on the credit side are higher than of the debit side, the balance is said to be a credit balance (Ingram & Albright, 2006.pp.300). In this company the fixed asset is the file server which is worthy $15,000. This is property of the com pany thus it will be debited. The amount which the company has paid will be credited and the amount that they will get from the same will be credited. What really happens is as shown on the next page: ACCOUNT TO RECORD ENTRY IN ACCOUNT SIDE Asset(fixed and current) An increase Debit Left Asset(fixed and current) A decrease Credit Right The debit side is usually left while the credit is usually one the left side. The $15,000 will therefore be on the left side since it will be an increase in assets of the company. This is a fixed asset because it cannot be converted in quick or liquid cash. The amount which was paid by the company, that is, $5,000 will be a decrease in asset and this will be credited on the right side of the balance sheet. The money which they will get after selling the software packages will be an increase in the company’s current assets and this will be debited on the left side of the balance sheet (Bott, 2005.pp.159). The profits that are got after selling t he software packages will reduce the company’s properties but this will be replaced by the cash that flows in the bank. The two will be written in different sides of the balance sheet. After the property is sold, the value of them will increase since it will bring in addition profits to the company (Ingram & Albright, 2006.pp.291). When there is no change in the assets then the company

Not Listening to a Child as a Form of Neglect Essay

Not Listening to a Child as a Form of Neglect - Essay Example However, the real challenge is the application of past findings and integrating them in the participation of children for the sustainability of their rights. It is apparent from stereotypes and perceptions that the rights of children have been neglected hence impacting on the development of children. According to Lansdown (2005), listening to children's expressions and experiences at school, home or other environmental settings helps in raising their esteem, social skills, and cognitive abilities. Therefore, the more children are involved and engaged, the more they increase their competence, confidence and acquisition of other skills. It is important as a parent or for any responsible person to positively engage them through listening them, as it will contribute positively to their mental and psychological growth. Marginalized children and those who are vulnerable in society especially the looked after face a challenge in realizing their potential, thus they should be provided with support through participatory engagement and listening to their demands and needs (Howe and Covell 2005). Listening to children also helps challenge situations of violence, discrimination, injustices or other related threats therefore serving to protect children. Silencing children means that any injustices against them are kept in the dark, while the abusers get protected rather than the children. Jones and Welch (2010) affirm that, if children are encouraged to speak and are listened to, then it will rather be easier for any violations to be exposed.

The Requisite Factors to Successful Team Buildup Research Paper

The Requisite Factors to Successful Team Buildup - Research Paper Example The goal of teams should be to share knowledge and other pertinent information in a free manner, to learn from each other, to assist each other in the completion of mutual jobs, to assist each other in the breaking of bottlenecks that are unexpected when they occur, to flexibly shift workloads and to share the resources at their disposal. All these expectations can be summed up by simply saying that collaboration yields the best results in teams. Team members should be in a position to say that they â€Å"swim and sink† together, desire for the success of each other and consider their goals as being common (Bayazit & Mannix, 2003). The starting point in order to achieve the set objectives is the support from the executive. The most senior educator ´s policy is the one that is reflected in the everyday performance by the teams. Research has shown that teams usually perform to the best of their abilities following their executives ´ investment in support of social relationsh ips, the creation of gift culture, demonstration of collaborative behaviour within themselves and in the interaction with employees (Shadur, 1999). Interaction perhaps is the most crucial as employees will view it as a gift in itself and will treasure it hence acting as a motivator. The investment in signature relationships among employees and subordinates can be in a variety of ways equally effective and unique to the setup they are being invested in. For example, having a single staffroom where teachers have cubicles can assist in the creation of a community sense compared to having individual offices for teachers.

Explain the term structure of interest rates. What are the effects of Essay

Explain the term structure of interest rates. What are the effects of rise in risk and expectations on the formation of long term rates - Essay Example Change of short term interest rates by the central bank has an effect on domestic real economic conditions through its influence on the long-term interest rate and consequently on those of other countries should there be involved in trade. Investors are now more prone to foreign exchange and interest rate risks due to all these changes in the global market place. The term structure of interest rates represents the pattern for interest rates appropriate for discounting cash flows of various maturities. This is done through the use of a yield curve by plotting the interest rates against their terms so as to display the relationship between spot rates of zero-coupon securities and their term to maturity. The resulting curve allows an interest rate pattern to be determined, which can then be used to discount cash flows appropriately. Unfortunately, most bonds carry coupons, so the term structure must be determined using the prices of these securities. In the case of a zero-coupon bond, the yield to maturity is sometimes called the spot rate, as this rate is said to be the rate that The shape of the yield curve above is said to be a â€Å"normal yield curve† as it is thought to reflect the higher â€Å"inflation risk premium† that investors demand for longer term bonds especially as longer term interest rates are usually higher than shorter term interest rates. A â€Å"parallel shift† in the yield curve may occur provided the interest rates change by the same amount for bonds for all terms and when this occurs, the shape of the yield curve stays same although interest rates may appear to be higher or lower across the curve. But when interest rates for bonds of some terms change different than for other bonds, the yield curve may change and such a change is called the â€Å"twist†. But since term structures are continuously changing, the changes may result to the yield curve having its usual normal shape, or may even result to the curve to

Strategic issues of Zara Essay Example | Topics and Well Written Essays - 3250 words

Strategic issues of Zara - Essay Example It is interesting to mention that the basic retailing theme that is followed by the flagship brand is highly unique in nature. The brand of Zara largely focuses on the process of providing fashionable retail products of average quality at highly competitive prices to the consumers of the world (Morris, 2013). It needs to be mentioned that the brand of Zara is largely present in various markets around the world. Also, the company has attained tremendously high levels of efficiencies in regards to maintaining the distribution channels as well as managing the logistics and supply chain. It can be said that the efficiency of the supply chain attained by the flagship brand Zara helps in attaining significant advantages related to shorter product lifecycle, shorter turn around and reduced time for production. Thus, it can be said that the logistic and supply chain efficiency can be treated as a pillar of strong point and significant advantage for the company. ... Detailed analysis of the competitive forces It can be highlighted that the best way to undertake an analysis of the competitive forces that are affecting the business prospects of the retail company is to conduct an analysis of Porter’s competitive forces. It needs to be mentioned that Porter’s five forces strategy talks about the competitive issues that arises from the multiple factors like bargaining power of suppliers, bargaining power of consumers, power of substitutes, threat of new entrants as well as inter firm rivalry (HBR, 2008, p. 4). Source: HBR, 2008 p. 4 Now matching Porter’s five forces competitive strategy with regards to organizational issues of Zara, it can be said that several challenges and cases can be highlighted at the same time. Talking in regards to the bargaining power of the suppliers, it needs to be highlighted that more than 50% of the retail merchandise of Zara are produced in an in house fashion. It is important to highlight that bec ause of this particular practice, the globally acclaimed retail organization has developed the advantage in regards to gaining momentum in various complex task based process, lower cycle time as well as minimization of error. However, talking in more details in regards to manufacturing practices, it can be said that the various processes involved in the manufacturing process of the firm’s end products are often outsourced to the network of local cooperatives, who work with the company only on the basis of long term good will. Hence, in this particular case, the negotiation power of the suppliers and local manufacturers are pretty low as compared to that of the organization.

The differences in the use of language between old and young Term Paper

The differences in the use of language between old and young generation in Saudi Arabia - Term Paper Example From this research, it is evident that different factors contribute to the difference in the language used by individuals belonging to the young and the old generation. Some of the factors that will be examined include; technology, stereotypes, and the generation gap (Bassiouney, 2009).   Literature review According to Calvert (2002) the difference in language used between the young and the old generation in Saudi Arabia has led to difficulties in communication. He reveals that the difference in language used by persons belonging to these two generations is as a result of stereotypes. Some of these stereotypes he depicts are as a result of the taboos the people of the old generation were exposed to. The participants who were interviewed in this research revealed that individuals belonging to the old generation were more formal in their communication style than the young. An examination of the stereotypes as a factor contributing to the difference in the language between the young a nd the old in Saudi revealed that, the differences in communication were, as a result of the difference in the expectations between these two groups. For example, the participants who were interviewed in this research showed that they experienced difficulties in communicating with persons of the old generation. This is because they were a bit slow in learning the other languages they used to communicate. Calvert (2002) also reveals that the variances in the use of linguistics between the young and the old in Saudi are because individuals belonging to the young generation incorporated some modern aspects in their language. He illustrates that this is because the young people think this would make communication between them appealing. However, he also illustrates that the old tend not to be comfortable when they incorporate such features in their communication. This is because they normally have the stereotype that persons belonging to the young generation tend to be rude when they in corporate some of the features in their communication (Calvert, 2002). Crystal (2001) illustrates that technology plays a role in the difference in the language used between the young and the old in Saudi. This is because an examination of the history of the old generation reveals that the old people did not incorporate a lot of technology in their communication. He, therefore, argues that the introduction of technology has greatly influenced the use of language among persons belonging to the young generation. The responses from the questionnaires also revealed that the introduction of the internet immensely influenced their communication styles, hence affecting their use of language. The participants claimed that the difficulty experienced by the old in adapting to the changing technology, was a factor that contributed to a difference in language use between the young

Analyze Capital Budgeting Methodologies (NPV, IRR, MIRR, etc..) Research Paper

Analyze Capital Budgeting Methodologies (NPV, IRR, MIRR, etc..) - Research Paper Example Some of the major capital budgeting techniques are: 2. Where â€Å"NPV† is â€Å"zero†, it is acceptable to the organization as it promises equal return to the required rate of return. However, the organization is in differential towards such a project, as it gives no profit. This technique uses discounted cash flows in its analysis, which makes it one of the most accurate capital budgeting techniques. This is because it incorporates and considers both the risk and time variable aspect of the project. Therefore, it measures the net benefit of the project in today’s currency terms (Accounting4managment, n.d). One of the major limitations of NPV method is its difficulty to make accurate forecast of the future cash flows and another is its vulnerability of manipulation through different discount rates as there is no standard to set a discount rate (Michel, 2001). Internal Rate of Return or also called yield on project is actually the rate of return of the investment project earned over the useful life of the project. The benefits and cost of the project are equal to each other at this discount rate. In other words, it is the discount rate where the NPV of the project is zero (Accounting4managment, n.d). There is no specific direct formula for manual calculation of IRR. Instead, the calculation is based on the equation where NPV id zero using various cash flows at different discount rates. However, it can be easily calculated on Excel and financial calculators. 1. Where â€Å"IRR† of the project is greater or equal to â€Å"project’s cost of capital†, the organization accepts the project as it indicates that the return is higher than what organization pay to borrow money for the project. 2. Where â€Å"IRR† of the project is lower than the â€Å"project’s cost of capital†, the organization rejects the project indicating that it would obviously not prefer to receive a return lower than what they pay to borrow

Evaluate the Effectiveness of the Legal System Essay Example for Free

Evaluate the Effectiveness of the Legal System Essay â€Å"World order† is the term given to the balance of power among the nation states of the world. Differences between these nations can lead to a power imbalance, which affects world order. It can best be achieved through agreements between states and other international instruments that set out the ideal international standards of behavior for states on a number of issues. But conflicts arise between countries due to differences in cultural attitudes and the desire for extra territory. In order to settle such disputes the international community has legal bodies such as the United Nations to cooperate with countries to find solutions and be a leader in settling and spreading ethical standards. Their prime aim is to promote world order. But for society not only the autonomy of nations and the lack of enforcement power but also a range of other factors limit the effectiveness of such an organisations. Each country has its own perspective on world order and not all meets eye to eye. But it can be argued that world order is a necessity in today’s society. There are many conflicts between majorities and minorities or nation against nation that can take many forms such as guerilla, military and nuclear warfare. An example of a military conflict was the Gulf war between Iraq and the UN lead forces concerning the occupation of Kuwait. But not all conflicts fit into the category of direct confrontation; some arise when a group ignores the needs of another or exploits them. For example after a long civil war in 1996 when the Taliban took control of Afghanistan. Many measures severely restricted women’s rights and alienated other Afghans. Due to an imbalance of economic power further conflicts can arise such as when a third world country cannot compete with developed nations because of the lack of capital they possess. When a dominant group expands its power by taking over territory and increasing its population and its resources, it is called expansion, which affects the international power structure that can possibly threaten world order. Even though it can be achieved through peaceful practices it mainly takes form in a conflict. In a stable global environment, interdependence, this means that nations rely upon others, can have favorable outcomes. But in an unstable world order, it can lead to conflict and the possible subjugation of weaker nations. Throughout history, local communities and indigenous people have suffered dramatically from conflict and expansion as more dominant groups have both directly and indirectly damaged their culture through the loss of customs, social structure and language. International crimes are criminal acts that have international repercussions on people, state, peace, law and enforcement of international law. The ICC has the jurisdiction over some international crimes. Such international crimes include apartheid (South Africa), genocide (Rwanda), Crimes against humanity (Former Yugoslavia), war crimes (Kosovo), piracy and hijacking. In the international sphere, force plays an important role in maintaining law and order which are critical in the success of world order. The use of force is seen as the most obvious way to maintain order and prevent or resolve conflicts. But it comes with such negatives as being highly expensive and costly in terms of the civilians and soldiers lost. Over the last century two world organisations have been established to prevent war and have legal authority to use force in certain circumstances. After World War One in 1920 the League of Nations was created as a place where governments could bring their disputes. But the L of N had no automatic right to intervene and most governments didn’t agree in bringing disputes before it. With limited membership and those that were members weren’t accustomed to working together, it was flawed. It was however able to make progress in the suppression of slavery, world health, the protection and care for refugees and settling minor disputes. But once the 1930’s began it cease to have any political relevance. After the failure of the League of Nations the United Nations formed, which founded a charter that outlined its purpose and methods of achieving it’s goals. The Un charter (1945) enshrined the idea that force or the threat of force should not be the norm in international relations. Although they were realistic enough to realise that force would sometimes be used. The UN was deliberately created as a more ambitious organisation and has six main organs: The Security Council, the General Assembly, Secretariat, the Security Council, Economic and Social Council, International Court of Justice and Trusteeship Council. Membership is based on whether the nation state is â€Å"peace loving† and willing to accept all the obligations of the UN Charter. The Security Council consists of fifteen member states with only five permanent members, which have the power to veto majority decisions. These five permanent members are Britain, France, USA, China and Russian Federation, which reflect the dominance each has in the world order (except Russia). The UN gives the Security Council, which is responsible for international peace and security, two ways of dealing with a threat to world peace. The first involves the use of peaceful methods such as economic sanctions. The second involves the use of armed forces. Peacekeeping is defined by as: The maintenance of international peace using formed troops under UN control to prevent the outbreak or renewal of fighting or by stabilising a situation sufficiently to promote peace. † Butterworths Australian Legal Dictionary. The Un Peacekeepers are an assembly of a very diverse, international group of soldiers and civilians, which assists in settling disputes that restores the peace in an area. However it doesn’t constitute an army as often they are made up of doctors, nurses and pilots. In many situations UN peacekeepers help clear landmines, train civilians and even monitor elections. For example in Namibia, the UN peacekeepers supervised a democratic election, which lead to the county’s sovereignty. The presence of peacekeepers can have positive affects such as the limit in the spread of violence in Haiti and Cyprus, but in other places they have been less successful i. e. the UN peacekeeping in Somalia in 1992. As Somalia fell into clan-based civil war, the country collapsed and the UN was unable to restore peace and eventually departed as Somalia remained in chaos. Originally the five permanent members of the Security Council were meant to coordinate the peacekeeping forces. But in reality they are conducted outside the UN’s regular budget, where national governments deployed troops to the peacekeeping efforts. Much of the peacekeeping is done by Ireland, Sweden and Australia. Australia has contributed either military forces or police to 54 peacekeeping forces and in 1999-2000 Australia played a leading role in reestablishing order in East Timor. Australia has also conducted peacekeeping efforts outside of the UN’s operation in Solomon Islands and Papua New Guinea. On the other hand the UN peacekeepers are limited in their effectiveness as they can only use force in self-defense, therefore they cannot directly intervene unless they are shot at and made themselves targets of conflict. Due to the dominance of some states in the world order, there is no equal treatment between nations states, which are members of the UN. Even though the UN charter states that there must be equality, in practice it does not exist. Due to the nature of certain UN bodies it is inevitable that smaller states are marginalized. However the situating of the United Nations in New York enables every member to sit side by side and have an immediate translation of languages, which breaks down barriers to communication. The UN has successfully raised the conscience of human rights through its conventions and the attention to specific abuses through its resolutions. But its ability to function is hampered by its financial problems as it is expected to govern the country on $8 billion per year, which is less than the amount of money the world spends on defense each week. It is resource ineffective as it ahs gone deeper in to debt as countries are slow to pay. Its enforceability is limited as it lacks the power to sufficient apply equal force to every nation should members ignore UN resolutions. War is not the only means of ending a conflict; a more peaceful method is through international tribunals. The International Court of Justice is an arm of the UN and is therefore one of the worlds main judicial bodies. Established in 1946, it is sometime referred to as the ‘world court. With its jurisdiction applies when it is in accordance with international law. Its primary role is to decide matters submitted by countries and to advise on the matters. It can also apply its authority when there is a special agreement about a dispute in which the parties to a treaty nominate the ICJ as the mechanism for resolution. The ICJ is a permanent court where 15 judges are elected by the UN Security Council and the General assembly. Not only can the ICJ resolve disputes by making a ruling, it can also generate political pressure to persuade countries to alter their behavior. In theory, the courts decisions are binding and without appeal. However in practice the losing party unwilling to abide by the ruling and the Security Council often limits its effectiveness is restricted to enforce the ruling. For example in the case of the US versus Nicaragua (1984), the decision stated that the US had to cease unlawful terrorist activities against Nicaragua and ordered that the US pay reparation. However they refused to pay and subsequently withdrew from the ICJ. But one of the main limitations the ICJ has is that only states can be parties to cases before the court. No individual, organisation or company can bring forth a matter. Plus both parties need to agree to have the court hear the matter. This is a dilemma in itself as the rulings are final and no country is going to openly dispute the matter where there is a possibility of losing. Its restrictive power reduces its ability to take initiatives and its lack of power to enforce and police its decisions has become a major criticism. The International Criminal Court ICC was established in 2002 as a permanent tribunal to prosecute individuals for committing genocide, crimes against humanity, crimes of aggression and war crimes. The ICC is a treaty based, legal entity independent from the UN. Despite this autonomy it works closely with the UN to promote the rule of law. The ICC has the power to imprison the offender if found guilty for life but does not offer the death penalty. One of the main objectives to the ICC is that some countries believe that there is little supervision of the court’s apparatuses and the verdicts may become subject to political matters. For the ICC, it has taken four years for the required sixty signatures to be gained and the treaty ratified. The United States of America can undermine the proceedings of the court by refusing to supply evidence and witnesses, like any other country can. During the 1990’s several atrocities where occurring in the Balkans and Africa. This resulted in specialist tribunals developed to deal with the specific investigations. War crimes and crimes against humanity were happening in former Yugoslavia. Thus in 1993 the UN Security Council created a new war crimes tribunal. The International Criminal Tribunal for the Former Yugoslavia (ICTY) had the jurisdiction over breaches of the Geneva Conventions and international customary law. On 12 February 2002, Slobodan Milosevic, the former president of Yugoslavia was charged of the planning and implementing, on a widespread and systematic scale and attack on the civilian population of Kosovo. Kosovo, which was a province of Serbia, had a majority population of Muslim Albanians and Slobodan was accused of leading a campaign of â€Å"ethnical cleansing†. This was the first time a former head of state had faced charges of crimes against humanity. Unfortunately Milosevic died in 2006 before his trial concluded. The fact that the ICTY tried Slobodan, illustrate that justice can be achieved when nations cooperate with the international community. In Africa, more specifically Rwanda, genocide was occurring between the two main ethnic groups the Hutu and Tutsis. Based on the ICTY model in 1994 the International Criminal Tribunal for Rwanda was established to prosecute those responsible for genocide in the republic. This tribunal was instated in response to over whelming pressures and has started a series of trials. These Ad Hoc tribunals have one specific purpose and may take time to be established which could mean the loss of thousands of lives. It is not a permanent body and will disband once trials have concluded. Sometimes as in the case with the ICTY where the main target is one person, it can suppress other investigations as most of its resources may be deployed in trailing that one person. The nature of Ad Hoc has proved to be cost ineffective and time consuming. International instruments such as treaties and customary law form the principle source of international law and are some measures of achieving world order. Treaties, which can also be called conventions, statutes or charters, are binding agreements. They formalise the process where by governments through international agencies work together on common problems. The two types of treaties are bilateral and multilateral treaties in where states agree on terms and the parties are therefore bond by it. Since 1945 there has been some significant treaties signed that are an indispensable part of the current world order

Lifestyle Causes of Disease

Lifestyle Causes of Disease In this world whether from developed, developing and underdeveloped countries, there is no doubt that most of the people is experiencing illness and diseases. The major leading causes of illnesses are their lifestyle and standard of living. Some people argue that individuals should be responsible for their health while others argue that the government are the one who is accountable for health. In this paragraph, it tackles the insights on who need to be a liable for health, may it be social, personal and environment. Moreover, it gives the impact of the said issue on international and national policy. Also, it will discuss the justification of each solutions or intervention to address the balance responsibility for healthcare between society and family. The leading factors for the lifestyle diseases are as follows: first is high blood pressure. It is also known as hypertension. It does increase the risk for heart attack or stroke to most have this case. When a person has hypertension, usually it has no signs. That is why people should have a regular check-up of their blood pressure. The only way to know if a person is experiencing a high blood pressure is having it always high for a very long time like for three months. The causes for this illness are unknown but there is a study that it runs in the families or known as hereditary. Occasionally, glandular and kidney diseases are responsible for this. Second is tobacco use. It is considered to be common throughout the globe. It contains a raw material which has an addictive ingredient like nicotine. It is one of the most leading factor for lots of chronic diseases such as cancer, lung related diseases and cardiovascular too. As to this a number of countries are now restricting tobacc o use, regulating people who can only buy and where can they smoke. Third is unsafe sex. It is also known as unprotected sex where describe as having sex without condom. As a result of this, HIV and sexually transmitted infections (STI) can occur. Globally, the number of people getting infected with this is increasing every year. That is why using condom is important and it is effective way for preventing STI, AIDS and HIV which can be passed on during sex. Fourth is alcohol use. In order for people to socialise with others, drinking with them is way to know them. However, drinking regularly in high amount can cause lots of health conditions. These alcohol related problems are liver disease, cancer, malnutrition, impotence, infertility, nerve damage, stroke, addiction and worst is death. Fifth is obesity. Obese is defined as accumulation of too much fat inside the body and it has a negative effect on one persons health. If the person BMI is more than to its normal by 30%, it is cons idered to be obese. As to this, high number of health risk can be identified like osteoarthritis or bone degeneration, coronary heart disease, gall bladder disease, high blood pressure, respiratory problems, sleep apnoea, stroke and diabetes. Last is cancer. It is the abnormal cell growth inside the body. There are 100 types of different cancer. It harms the body wherein the damaged cells are dividing uncontrollably which forms masses and lumps except for leukaemia. These masses interferes system in our body like the circulatory, cardiovascular, digestive and respiratory system. Some of the tumours are benign but some of them turn out to be malignant, which is more dangerous to one person’s health. Consequently, countries are spending a lot of money on healthcare costs and expenditure. Since the lifestyle of a person is interrelated with the diseases, there is a question of should an individual be held responsible for their health related choices? So it is been concluded that there is a relationship between the lifestyle of a person to the diseases they are suffering and also the expenditure in the healthcare. Through this, in medical and economic point of view, individuals are morally responsible for their health related choices. However, lots of people are objecting with this idea. People are objecting with several reasons. First, there will be a conflict between individuals who are entirely responsible for their health and also the responsibility of medicine to treat people. Also, there will be a conflict between the society’s obligations to look after the vulnerable people. Second, it is not fair for individuals to be responsible for their health if they themselves cannot make a good health related choices due to addictive behaviour, ignorance, mental incapability and also peer pressure. Third, it will be extremely difficult for people to implement a system that they are totally responsible for their health to think that some people acquire disease through environmental and hereditary factors. Although, it is vital for individuals to be responsible for their health, they should not be obliged to be entirely responsible for it as it is unreachable and impossible to be done. Furthermore, the government and other healthcare providers should also be there to help the society to give full awareness of health and diseases and on how to maintain health and prevent certain illnesses. There are several ways and method on how the government, public and private healthcare sectors on how to promote health and prevent diseases. Fist is through sanitation, which defines as the safe disposal of human waste may it be urine and faeces. Also, it is known as the maintenance of proper hygiene such as rubbish collection and water waste disposal. Second is pollution control which encompasses the air, water and land. However there is an argument on how control should be done and how much control that is needed. The pollution control or the â€Å"command and control† mechanism increases the expenditure in this strategy thus making it slow to achieve a cleaner environment. Third is food and drug safety, wherein to promote and protect health FDA or the Food and Drug Administration is responsible for this. Fourth is the health education. This is also important as it increases the awareness of the public with regards of health and safety. Fifth is disease surveillance wherein the spread of a certain disease is being monitored, observed, examined and supervise to know the patterns of its progression. Also, it observes, predicts and minimizes the harm that it may cause to the public. Sixth is urban planning which ensures the development of the communities such as in transportation, infrastructures and distribution networks. It needs thorough research, planning, analysis, management, implementation and recommendation from the government. Last one is occupational health and safety which targets the safety, health and welfare of the employees or people in the workplaces. Since there are several different methods on how the society can address the health, unfortunately resources are undoubtedly limited. As a result, there is a question of where should the society needs to invest first? Also, which sectors need the most financial aids? As the promotion of healthcare for the society is very important role of the government, they should consider the prioritization method which needs a greater emphasis on delivering healthcare. There are several sectors that need to prioritize first and less emphasize on access to healthcare. First is the prevention campaign. This includes the health education in public, pollution control, pesticide or chemical regulation, food and drug safety, disease surveillance and occupational health. There is a saying that â€Å"prevention is better than cure†. So it is believe that the government should invest the money on the said different prevention of the disease than treatment. Also, everyone can be benefitted from these services like clean water and air, safe food, sanitation, urban planning, control of pest and pesticides and disaster preparedness. Furthermore, the cost-effectiveness of these services is very important in consideration in healthcare and social policy. Moreover, there are also some drawbacks on having these strategies. First is that, one of its problems with having social responsibility for health, there is a tendency that it may encourage individuals to take less responsibility of their health. People might go dependent on those services. On the other hand, some healthcare services or health promotion can empower the individuals to look after their own health. For example, sex education, which gives every individual a knowledge on how to avoid sexually transmitted diseases. Urban planning can also give them healthy choices with regards to workplace, transportation and recreation. In conclusion, every individual and society itself has its own responsibility to take into account in which they live in. People should know how to look after their health and should also pay for their healthcare costs. People should not be also dependent on the amenities that the public services are offering. While the government and other healthcare services should not stop helping the community in health promotion and prevention for the welfare and development of the society. As to the national and international policy, these strategies are considered to be a big help as it is cost effective and easy to implement than building healthcare infrastructures which are costly and expensive.

Does Descartes Successfully Prove The Existence Of God Philosophy Essay

Does Descartes Successfully Prove The Existence Of God Philosophy Essay Descartes arch mission in the Meditations was to provide a theory that would help him get to the truth. Descartes book Meditations on First Philosophy consists of six meditations through which he addresses several uncertain issues in attempt to remove their uncertainties. Maybe the most essential meditation he speaks of is the third meditation in which he discusses the debatable issue of The Existence of God. Although the existence of God is an objective matter, Descartes method in proving this existence is perhaps the most efficient in removing any shadow of doubt which a person might have. This method, which will be further discussed, has its own imperfections and therefore it was fairly easy for doubters to come up with rebuttals and hence, the matter remains objective. Descartes begins his third meditation discussing the existence of himself and regards himself as a thinking thing. In addition to that, he erases any doubts having to do with his sensory experience saying that although he knows his sensory perception and imagination may not exist outside him, however, they do exist inside him and are means of thinking. This that has been said previously does help Descartes approach the truth he seeks but is still not sufficient. Furthermore he continues by saying that a person cannot exist independently; human beings were created by an infinite substance; a being that is eternal, independent and has the highest power plus intelligence. This infinite substance is the reason for the existence of human beings and everything surrounding them, this infinite substance is God. The existence of God to Descartes is a necessity and a crucial matter especially after he established that in order to exist as finite beings, an infinite substance must exist to create us. In previous meditations, Descartes talked about how doubts and desires come from an interpretation that people lack certain things and that people would not notice this lack if it werent for the existence of a more ideal presence that has the things lacked by people. Furthermore, Descartes saw that there is no reason to doubt the existence of God since his perception and understanding of God is an infinite reality and therefore is more likely to be authentic than other conceptions. Having inferred that God essentially exists, Descartes asks himself how he acquired the idea of God. That being said, he advised three types of ideas: Adventitious, factitious, and innate. Adventitious ideas are derived from knowledge that we encounter through life. Factitious ideas are ideas come from our creative imagination. Innate ideas come from within and so from this definition, Descartes considers God to exist as an idea which we were born with and which God himself placed in us. Descartes distinct and clear perception is that God exists as perfection. In order to be labeled as a betrayer, one must have defects and faults. Furthermore, since Descartes sees God as a faultless and infinite being, then God could not be a betrayer or a deceiver. Cogito, ergo sum is a Latin phrase meaning I think, therefore I am and which Descartes quotes. He then explains that as the cogito is there, so should the existence of God. Although meditation three mainly discusses the existence of God, Descartes raises the issue again in meditation five. Meditation five: The essence of material things, and the existence of God considered a second time, includes three principle matters. The first topic covers the essence of matter. The second topic discusses the ontological argument for Gods existence and the third matter involves getting to the route to perfect knowledge. In this meditation, Descartes distinguishes between two things; the essence and the existence. Before knowing of an existing thing, one must be aware of its essence. What he means by that is, knowing the essence of things is to find out whether these certain things could possibly exist and not be actually there. However, we will further see that this does not apply to God, and that God serves as an exception in this matter. Descartes was strongly against Aristotles argument of the essence. To Aristotle, one learns the essence of a triangle by observing and examining surrounding triangular objects. While Descartes says that we acquire knowledge of the essence mainly through the intellect and after that being done will we be able to observe objects in the world resembling triangles. Adding to that, Descartes continues with his argument against Aristotles belief and says that since there are no perfect triangles in the real world then how will we be able to understand them if they do not exist? He also discusses the issue of mathematically abstract equations which we have learned but have not derived from whats surrounding us in our world. He then decides to turn this argument of essence to a more important issue which is proving the existence of God a second time now. However, this second proof shows to be weaker than the one he has discussed in his third meditation. The fact that he considers he should add more proof in this meditation makes us wonder, is he not sure of his first proof? The proof he provides in the fifth meditation is a form of proof that was used amongst scholastic philosophers. We have already established that our formulated idea of God equals a perfect and infinite being. Hence, that would necessarily include existence; it would be considered ideal to exist than not to exist. According to the Descartes, the term existence is not just considered a characteristic of God but a crucial feature of Gods, so that means God cannot be created without associating existence with him. After that proof was known to people and philosophers, Kant pointed out that it contained flaws since he does not agree with the fact that existence defines and object. To Kant, existence does not accommodate a certain object as much as it accommodates the world. Therefore he concludes that existence is not a property of Gods. Although Descartes provided many explanations regarding his proofs, they still remain very objective thus raising many counter arguments presented by people and philosophers. Descartes claim that we have a clear and distinct idea of an infinite being is not a valid statement because we do not in any way have a clear idea of this infinite being. That being said, when we are able to think of an ideal being does not follow that this ideal being we are thinking of actually exists. Thinking of something does not validate its existence or make it actually exist. Furthermore, even if we have an idea of God within us, it does not necessarily mean that God put that idea in us. Our ideas are not all innate, we do possess adventitious ideas which enable us to think and imagine creatively thus creating the idea of God. In order for God to be able to create himself and exist independently, he must own the attribute of timelessness, and we cannot just assume that he does own that property; hence, we cannot say that God is the reason he exists. If we allow something to be there without a cause then we would be going against our nature, and if we do allow it, then how does that stop everything else from existing without a cause? These arguments are not denying the existence of God, they are just justifying that Descartes proofs and discussions are presented in a weak manner and do not successfully prove the existence of God. Descartes does present himself as an intelligent person with rational discussions, but has failed to provide much rational explanations with regards to the existence of God. Since the beginning of his meditations, Descartes did classify that his thoughts of God present God as a perfect infinite being and then he classified himself as an imperfect being. This poses a problem; how can an imperfect person decide and define which properties exist as being perfect and which do not? When he says that, it is as if he is saying that his judgments and explanations are as ideal as his idea of God. To conclude matters, it is possible to think of God and an imperfect being. However that does not summon the things I think of to existence. Every person can have a different thought or image of God according to his/her way of thinking. That is why, the existence of God remains a debatable issue and is very much objective regardless of the different present religions.